Posts Tagged ‘real estate’

Common buyer mistakes

December 26, 2008
Shopping for a new home is an emotional experience.  It is, however, also a business transaction, and must be treated as such.  Three of the most devastating things that can go wrong are:

  • Paying too much
  • Losing a dream home to another buyer
  • Buying the wrong home

When you have a systematic plan before you shop, you’ll be sure to avoid these costly errors. Here are some tips on making the most of your home purchase:

Get the information you need
What price do you offer a seller? Is the seller’s asking price too high? Is it a deal? Your own research is important, as is the assistance of a Realtor®.  A professional Realtor® can offer an unbiased opinion on the value of a home, based on many factors and a great deal of information. Without knowledge of the market, your offer could be too much. Or worse, you could miss out on a great buying opportunity.  Hire the right person and trust that person to represent your interests.

Buy YOUR home
What do you need and want in a home? Sounds simple, but clearly identifying your needs and bringing an objective view to home shopping leaves you in a much better position. How much space do you really need?  Too small and you may feel like you live in constant clutter.  Too big and maintenance may become too daunting.  Outline all of your priorities, and work on finding not just a great home, but a great home for you.

Check the title
Before you sign any document, be sure the property you are considering is free of all encumbrances. As a part of his or her services, a Realtor® can supply you with a copy of the title to ensure there are no liens, debts, undisclosed owners, leases or easements against the title.

Update the survey
Before the purchase is completed, an updated survey is essential. This report will indicate boundaries and structural changes (additions to the house, a new swimming pool, neighbor’s new fence which is extending a boundary line, etc.), and will guarantee that you are indeed getting what you pay for.

Minimize the unexpected
For $300 – $500, a professional inspector will conduct a thorough inspection of the home. Their expertise can mean the difference between uncovering major flaws before or after you own a home. Make the final contract subject to the report’s findings.

Get pre-approved
It only takes a few days to get financing pre-approval. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer.

Remember additional costs
Besides the funds for the purchase of a home, you’ll need funds for items such as loan fees, insurance, legal fees, surveys, inspections, etc.

Take a deep breath
Before you sign, ensure that all documentation clearly reflects your understanding and conditions of the transaction. Has anything been forgotten? Don’t rush. You could lose money, financing, or even the sale if you attempt to push things through too hastily.

for more see www.danshapirorealestate,net

 

How to get your home at your price

December 26, 2008
Whether you are buying your first home or your fifth, the process of buying a home can be an emotional, time-consuming venture.  Feeling that, in the end, you made the right decision and got a good deal can make all the difference.

As with most major decisions, the amount of work and research you undertake before you start shopping can have a dramatic effect on how well you do in the end.


#1  Do you really need that backyard tennis court?
Everyone can picture their ideal home.  If you haven’t thoroughly prepared yourself prior to viewing houses, chances are that you will find what you think is your ideal home, and will wind up paying too much for it.

It is essential to treat the buying process in a slightly detached manner.  Those who fall in love with houses usually pay too much.

That’s why it’s recommended that you develop a list of needs and one of wants.  When looking at houses, make sure that they cover all of your needs – things like adequate space, a good neighborhood, perhaps a garage – and then have fun with items on your wants list.  Treating the process in a regimented manner will help you to make a rational, informed decision.


#2 Get pre-approved
Visit your lending institution prior to shopping.  Be sure to get a mortgage commitment in writing. Being pre-approved gives you a solid price range, and lets your Realtor® and potential sellers know that you are serious and not just a browser.

#3 Get the right people behind you
Buying a home is a complicated process, with many people involved.  Having the right people on your side can make a big difference.  An experienced, dedicated, and knowledgeable Realtor® can put a team of advocates, including lenders, lawyers, home inspectors and movers, on your side immediately.

#4 Communicate
The more you share with your Realtor®, the better he or she will be able to represent you.  Letting your representative know exactly what you’re looking for, in terms of needs/wants, price range, and location, can eliminate unnecessary trips to unsuitable homes and that focus can help ensure that you wind up in the right home.

#5 Location, location, location
It’s still true.  The desirability and resale value of your home depend on location more than any other factor. People want a desirable community that includes character, quality of schools, access to work, major transportation arteries, recreational facilities, etc.

On your viewing trips, take a careful look and ask the following questions: How does this home compare to others in the neighborhood? Are yards fenced? Are there many children playing in the streets? Are the front and back yards and the exteriors of the homes properly maintained?  The less expensive houses in a better area tend to appreciate faster than the most expensive houses in a less desirable area.

Additional factors that affect the property value of a home include traffic, sounds, smells, zoning bylaws, and many others. Be objective. Be sure you are completely satisfied with the neighborhood. If you choose a neighborhood with problems, you likely won’t get as much as you hoped with it comes time to sell.


#6 Use your Realtor’s® knowledge
Your Realtor® is trained in all aspects of real estate, including understanding supply and demand, economics, and the neighborhoods of the city in which they practice. A professional Realtor® can do much of the work for you, by reviewing your needs, reviewing available properties, and making an informed match. A comprehensive knowledge of the available homes in your neighborhood is one of your Realtor’s® strongest assets. With the aid of computerized systems, a Realtor® is notified within hours when a home becomes available.

#7 Pay attention to red flags
When evaluating a home, be sure you know the difference between acceptable and unacceptable problems. Cosmetic items like peeling paint, worn carpeting, or unattractive wallpaper can be easily remedied, and can be used as negotiation items, as there will be costs involved in updating the home.

Major problems, however, are clearly red flags.  Look for items such as major foundation cracks, water damage, outdated electrical systems, and inadequate plumbing. These items could be too expensive to remedy to make the home a worthwhile investment.


#8 Hire a home inspector
A home inspection is an inexpensive way to gain peace of mind, and guard your pocket book. A proper inspection will cover all areas of the house including foundation, electrical, heating, plumbing, floors, walls, ceilings, attic, roof, siding and trim, porches, patios, decks, garage and drainage. A professional inspector can give you an objective view of the property, with a written report, indicating the present condition and items that will need repair.

#9 Be cautious with fixer-uppers

Sometimes, a fixer-upper can be purchased below market value, and once sufficient repairs are made, can be sold at a significant profit. However, not all fixer-uppers will bring in the profits you might expect. 

Consumers often overestimate their level of dedication to doing extensive renovation work, and underestimate the costs associated with such work.  A wall that needs to be replaced can often lead to the discovery of faulty plumbing, electrical, or other major undertakings.  Your Realtor® and home inspector are your best allies when it comes to cost-benefit analyses.

#10 Consider your future needs
A move can be a major undertaking.  Take a good look at your current lifestyle and consider the future. Will you need extra space for a home office, a child, or perhaps a child moving back home? Perhaps it may be easier and less expensive if you purchase a home that can meet these needs now, rather than moving up to a larger home a few years down the road.

#11 Proceed quickly
When you’re ready to buy, act.  Good properties sell.  This is especially true given the current state of most real estate markets. However, when you work with a Realtor®, you have access to the latest technology. As part of the MLS and Agent Handshake networks, a Realtor® has access to properties within hours of when they are listed.

Technology works to your advantage. Many Realtors® now have personalized websites which allow you to sign on as a client, and receive notification of new listings via email. You save time and effort, and you can view only those homes that come closest to meeting your needs.

#12 Clarify relationships
In any real estate transaction, be very clear about who is working for whom, and what the relationship represents. Unless otherwise stated, an agent represents the seller in transactions for the sale of a home. This agent, as part of his or her fiduciary duty, must ensure that the seller’s (and not your) position is represented throughout the entire process.  Get a buyer’s agent on your side, or ensure that someone is acting in your best interests.

#13 Ask for a written CMA
A Comparative Market Analysis (CMA) is an analysis of comparable homes in a given neighborhood. It shows you the sale prices of comparable homes in the neighborhood, along with asking prices of other homes in the area currently on the market. A Realtor® can request this report for any home and neighborhood.  Ask for this report in writing. With this valuable document, you’ll have solid, reliable information about how fairly a home is priced compared to its real market value.

#14 Know the seller
Understanding a seller’s reasons for moving could work to your advantage during negotiations.  For instance, a seller who has been transferred to another city may be more motivated to sell than someone who is still shopping for a new home.  A vacant house, or a house that has been on the market for several months and has been reduced in price, could also provide the opportunity for lucrative negotiations.

#15 Keep it impersonal
Conversely, information could be used to your detriment. Information about your mortgage, size of down payment, move-in deadline, or circumstances for buying could be used to the seller’s benefit in negotiations. While you want your Realtor® to know these details, maintain your poker face and keep your cards hidden with the sellers and their agents.

#16 Measure twice, sign once
While you definitely want to move quickly once you’ve made the decision to purchase, you don’t want to cave in to pressure for a quick close. Someone who is trying to pressure you into buying a home is likely doing so for a reason. Make sure the reasons for you to buy a home are your reasons, not theirs.

#17 Exercise your negotiating skills
Even if you prefer not to haggle, it’s worth it, especially when it’s your home and one of your biggest investments. Most people expect to haggle over the price. There is always room for negotiation, and your Realtor® should be a professional negotiator.

#18 Avoid bidding wars
In some cases, the seller’s Realtor® may use scare tactics to rush the sale or increase the price. Falling for this trap could cost you money. If there is another buyer, or some other reason this pressure is being applied, whoever wins also loses because they tend to overpay. Let reason be your guide, not passion.

#19 Get it in writing
Legally, sellers must disclose all known material defects of a property. Ask for this in writing. Also be sure to consider the ramifications of these defects. Will they be costly down the road? Are they “serious” defects?

#20 Be aware of hidden costs
While Realtors® often tempt first-time buyers with rent/mortgage comparisons, there is more to a home than simply the mortgage. You will be responsible for other items including mortgage insurance, appraisal fees, legal fees, inspection fees, transfer taxes, title insurance, inspections, property tax, increased bills, etc. Your Realtor® can give you a good idea of the costs associated with buying a home that are beyond its final negotiated price.

for more see www.danshapirorealestate.net

Thinking About Buying Your First Home?

December 26, 2008

With interest rates low, many renters are starting to think about purchasing a home of their own. While simple rental cost vs. mortgage cost comparisons can be very attractive, buying a home is a serious commitment, and there are many factors to consider:


How long you plan to live in the home.
Selling a home costs money.  If you potentially may have to move in the short term, the value of your home may not have appreciated enough to cover the costs of buying and selling.

The length of time that it will take to cover those costs depends on various economic factors. Average appreciation tends to sit at around 5% per year. In this case, you should plan to stay in your home at least 3-4 years to cover buying and selling costs.  The real estate market can be particularly volatile, however, and dramatic swings up and down are not uncommon.


How long the home will meet your needs.
What features do you require in a home to satisfy your lifestyle now? Five years from now? People tend to remain in homes longer than they initially intend, primarily due to the work and expense associated with moving.  Therefore it is worth considering a home with room to grow. Could the basement be turned into a den and extra bedrooms? Could the attic be turned into a master suite? Having an idea of what you’ll need will help you find a home that will satisfy you for years to come.

Your financial health – your credit and home affordability.
Is now the right time financially for you to buy a home? Would you rate your financial picture as healthy? Is your credit good? While you can always find a lender to lend you money, people with poor credit tend to pay far more to borrow.

Some say that you should refrain from borrowing as much as you qualify for because it is wiser not to stretch your financial boundaries. The other school of thought says you should stretch to buy as much home as you can afford, because with regular pay raises and increased earning potential, the big payment today will seem like less of a payment tomorrow. It is, however, important to stay within your comfort zone.  Purchasing a house involves many up-front and ongoing costs, and the stress of worrying about those costs often outweighs the satisfaction that may come from owning a slightly nicer home.


To determine how much home you can afford, talk to a lender or go online and use a home affordability calculator. Good calculators will give you a range of what you may qualify for. Then call a lender. While some may say that the “28/36” rule applies, in today’s home mortgage market, lenders are making loans customized to a particular person’s situation.

The “28/36” rule means that your monthly housing costs can’t exceed 28 percent of your income and your total debt load can’t exceed 36 percent of your total monthly income. Depending on your assets, credit history, job potential, and other factors, lenders can push the ratios up to 40-60% or higher. While we’re not advocating you purchase a home utilizing the higher ratios, it’s important for you to know your options.

Where the money for the transaction will come from.
Typically, homebuyers will need some money for a down payment and closing costs. However, with today’s broad range of loan options, having a lot of money saved for a down payment is not always necessary – if you can prove that you are a good financial risk for a lender. If your credit isn’t stellar but you have managed to save 10-20% for a down payment, you will still appear to be a very good financial risk to a lender. High-ratio mortgages can be a good option for those who haven’t managed to save a large chunk of money (who has?), but naturally, these have additional costs associated with them.

The ongoing costs of home ownership.
Maintenance, improvements, taxes, and insurance are all costs that are added to a monthly house payment. If you buy a condominium or townhouse, a monthly homeowner’s association or maintenance fee will be required. If these additional costs are a concern, you can make choices to lower or avoid these fees. Be sure to make your Realtor® and your lender aware of your desire to limit these costs.

If you are still unsure if you should buy a home after making these considerations, you may want to consult with an accountant or financial planner to help you assess how a home purchase fits into your overall financial goals.

for more see www.danshapirorealestate.net

 

 

Selling your house-first impressions

December 19, 2008

Remember what first attracted you to your house when you bought it? What excited you about its most appealing features? Now that you’re selling your home, you’ll need to look at it as if you were buying it all over again.


A spruced up house makes a great first impression on potential buyers. An attractive property grabs their attention and makes them excited about finding a house that looks and feels well-cared for. Because buyers know they’ll encounter fewer problems if they buy it, your house becomes more appealing and stands out from the competition. So if you prepare your home correctly, you’ll save time selling it when it’s on the market.


A good first impression makes an impact on a number of levels. It’s not just the way your house looks to potential buyers, but how it feels and smells to them, how their friends and family will react, how they imagine it would be to live there.


With simple improvements throughout your house, you can grab the attention of potential buyers and help them see why your house is right for them.


Plan Ahead


Create a plan to enhance your property. Keep a notebook for your selling project, and as you stroll through your yard, make a list of what needs to be done. Consider what your property looks like to people driving by or walking through your door. What will they like or dislike? What needs fixing, painting, cleaning? What can you improve? Whether you paint your house or fix up the yard, your efforts don’t need to be costly; even inexpensive improvements and minor repairs go far toward attracting serious buyers. But remember, those seemingly insignificant problems you’ve learned to live with can actually discourage potential buyers. Here are ideas for increasing your home’s appeal in order to sell it quickly at the best price.


Interior


Clean Everything


Buyers expect a spotless house, inside and out. So clean everything, especially your windows and window sills. Scrub walls and floors, tile and ceilings, cupboards and drawers, kitchen and bathrooms. Wash scuff marks from doors and entryways, clean light fixtures and the fireplace. Don’t forget the laundry room. And put away your clothes.


Cut the Clutter


People are turned off by rooms that look and feel cluttered. Remember, potential buyers are buying your house, not your furniture, so help them picture themselves and their possessions in your home by making your rooms feel large, light, and airy. As you clean, pack away your personal items, such as pictures, valuables, and collectibles, and store or get rid of surplus books, magazines, videotapes, extra furniture, rugs, blankets, etc. Consider renting a storage unit to eliminate clutter in your garage and attic.


It’s hard to get rid of possessions, but cleaning and clearing out the clutter can really pay off in the end. Packing away your clutter also gets you started packing for your next move. Make your garage and basement as tidy as the rest of your house. Simple little tasks such as storing your tools and neatly rolling up your garden hose suggest that you take good care of your house. Don’t let anything detract from making your best first impression.


Closets


They’re an important consideration to many buyers. By storing clothing you won’t use soon, you’ll make closets look spacious.


Paint


A new coat of paint cleans up your living space and makes it look bright and new. To make rooms look larger, choose light, neutral colors that appeal to the most people, such as beige or white.


Carpet


Check its condition. If it’s worn, consider replacing it. It’s an easy and affordable way to help sell your home faster. Again, light, neutral colors, such as beige, are best. If you don’t replace it, you can suggest to potential buyers that they could select new carpet and you’ll reduce your price; buyers like to hear they’re getting a deal. At the very least, have your carpet cleaned.


Repairs and Renovations


It’s best to avoid making major renovations just to sell the house since you’re unlikely to recoup those costs from your selling price. Make minor repairs to items such as leaky faucets, slow drains, torn screens, gutters, loose doorknobs, and broken windows. Make sure repairs are well done; buyers won’t take you seriously if your home-improvement efforts look messy, shoddy, or amateurish.


Leaks and Moisture


Water stains on ceilings or in the basement alert buyers to potential problems. Don’t try to cosmetically cover up stains caused by leaks. If you’ve fixed the water problem, repair the damage and disclose in writing to the buyer what repairs were made.


Exterior


Curb Appeal


The “Wow” factor — that first visual, high-impact impression your home makes on potential buyers — can turn a looker into a buyer. To determine your property’s curb appeal, drive through your neighborhood and note other properties; then approach your own house as if you were a potential buyer. How does it look? Does it “wow” you? Will its curb appeal attract buyers? Note what needs improving, such as trimming trees, planting shrubs, or painting gutters. Little things convey that you’ve cared for your home, and this is your opportunity to sell that important message to buyers who are shopping from the street, simply cruising neighborhoods just looking for houses for sale. To get them through your door, do what you can to make your property look like someone’s dream home.


Paint/Stain


If it’s peeling or blistering and you can’t remember the last time you painted it, your house needs some attention. That also goes for stain that is significantly faded. A newly painted or stained exterior will help sell your house faster. And whether you do it yourself or hire someone, you’ll also increase your home’s value.


In the Yard


Grab people’s attention by enhancing your yard and landscaping. If your house looks inviting and well-maintained from the street, people will imagine that it’s attractive on the inside, too.

 

  • Prune bushes and hedges; trim trees.
  • Keep your lawn looking healthy and green by mowing it often, fertilizing it, and keeping it edged and trimmed.
  • Clean up and dispose of pet mess.
  • Weed your gardens; add fertilizer and mulch; then plant colorful flowers.
  • In winter, keep your driveway and sidewalks shoveled, de-iced, and well-lit.
  • Stack firewood, clean out birdbaths, repair and paint fences.


The Front Door


An attractive entry catches a buyer’s eye and says, “Welcome,” so highlight this area of your house with decorative touches, such as a wreath on the door or new shrubs and flowers around the steps. For an even grander entry, clean and paint your front door, or replace it with a new one for a few hundred dollars. Don’t forget to fix and polish doorknobs, repair torn screens, and then put out that new welcome mat.


Keep yourself organized with the following checklist.


Clean and Maintain

 

  • Windows, sills, and screens
  • Walls and floor
  • Tile
  • Ceilings
  • Cupboards and drawers
  • Kitchen
  • Bathrooms
  • Light fixtures
  • Ceiling fans
  • Carpet and rugs
  • Mirrors
  • Garage
  • Attic
  • Basement
  • Laundry room
  • Yard
  • Gutters
  • Replace furnace filter
  • Dust furniture, TV and computer screens
  • Closets
  • Remove clutter
  • Pack personal items


Repair

 

  • Leaky faucets and plumbing
  • Torn screens
  • Slow drains
  • Gutters
  • Loose doorknobs
  • Deck boards
  • Broken windows
  • Electrical fixtures
  • Water stain damage
  • Broken appliances
  • Damaged walls and ceilings
  • Worn carpet and rugs
  • Damaged sidewalks and steps


Improvements

 

  • Stain or paint deck
  • Store tools
  • Roll up garden hose
  • Paint or stain exterior
  • Prune bushes and hedges
  • Trim trees
  • Mow lawn, fertilize, edge, and trim
  • Weed gardens, plant flowers
  • Shovel driveways, de-ice
  • Stack firewood
  • Clean out birdbaths
  • Caulk windows and doors
  • Repair and paint fences
  • Seal asphalt driveway
  • Make sure doors close properly
  • Enhance entryway
  • Replace welcome mat

for more see www.ditmasestates,com

 

Common Selling Mistakes

December 19, 2008

Mistake #1 – Incorrect Pricing
Every seller naturally wants to get the most money for his or her product. The most common mistake that causes sellers to get less than they hope for, however, is listing too high.  Listings reach the greatest proportion of potential buyers shortly after they reach the market.  If a property is dismissed as being overpriced early on, it can result in later price reductions.  Overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price than they likely would have had they been priced properly in the first place.

Mistake #2 — Mistaking Re-finance Appraisals for Market Value
Re-finance appraisals can be very encouraging for homeowners, leading them to assume that the appraisal is the amount that they should expect to receive for their property. Lenders often estimate the value of your property higher than it actually is, however, in order to encourage re-financing. The market value of your home could actually be (and often is) lower. Your best bet is to ask your Realtor® for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.

Mistake #3 — Failing to “Showcase”
In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant as possible. Make necessary repairs. Clean. Make sure everything functions and looks presentable, and remove as many possessions as you can prior to showing. A poorly kept home, or one with too much clutter, will make it dramatically more difficult for buyers to become emotionally interested in your property.

Mistake #4 – Trying to “Hard Sell” While Showing
Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don’t try haggling or forcefully selling. Instead, be friendly and hospitable. Pointing out any unnoticed amenities and being receptive to questions is advisable, but this is not the time for negotiation and salesmanship.

Mistake #5 – Trying to Sell to Lookers
A prospective buyer who shows interest because of a For Sale sign or an open house ad may not really be interested in your property. Often, buyers who are not accompanied by a Realtor® are 6-9 months away from buying, and are more interested in seeing what is out there than in actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet. They may still even be unsure as to whether or not they want to relocate.

Your Realtor® should be able to distinguish realistic potential buyers from mere lookers. Realtors® should usually find out a prospective buyer’s savings, credit rating, and purchasing power in general. If your Realtor® fails to find out this pertinent information, you should do some investigating and questioning on your own. This will help you avoid wasting valuable time marketing to the wrong people. If you have to do this work yourself, consider finding a new Realtor®.

Mistake #6 — Being Ignorant of Your Rights & Responsibilities
It is extremely important that you are well-informed of the details of your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what you are responsible for before signing any contract. Can the property be sold “as is”? How will deed restrictions and local zoning laws affect your transaction? Not knowing the answers to these kinds of questions could end up costing you a considerable amount of money.

Mistake #7 – Signing a Contract with No Escape
Hopefully you will have taken the time to choose the best Realtor® for you. But sometimes, as we all know, circumstances change. Perhaps you misjudged your Realtor®, or perhaps the Realtor® has other priorities on his or her mind. In any case, you should have the right to fire your agent. Also, you should have the right to select another agent of your choosing. Many real estate companies will simply replace an agent with another one, without consulting you. Be sure to have control over your situation before signing a real estate contract.

Mistake #8 – Limited Marketing
There are two obvious marketing tools that nearly every seller uses: open houses and classified ads. Unfortunately, these two tools are rather ineffective. Less than 1% of homes are sold at open houses, and less than 3% are sold because of classified ads. In fact, Realtors® often use open houses solely to attract future prospects, not to sell that particular house.  Does your Realtor® have a website?  There are very few successful real estate professionals who don’t, and for good reason.

Your Realtor® should employ a wide variety of marketing techniques and should be committed to selling your property; he or she should be available for every phone call from a prospective buyer. Most calls are received, and open houses are scheduled, during business hours, so make sure that your Realtor® is working on selling your home during these hours (many Realtors® work part-time).

Mistake #9 – Choosing the Wrong Realtor®
Selling your home could be the most important financial transaction in your lifetime. As a result, it is extremely important that you select a Realtor® who is a good match for you. Experienced real estate agents often cost the same as brand new agents. Chances are that the experienced agent will be able to bring you a higher price in less time and with fewer hassles.

Take your time when selecting a real estate agent. Interview several; ask them key questions. If you want to make your selling experience the best it can be, it is crucial that you select the best agent for you.

The right price

December 19, 2008

When you’re selling your home, the price you set is a critical factor in the return you’ll receive. That’s why you need a professional evaluation from an experienced Realtor®. This person can provide you with an honest assessment of your home, based on several factors, including:

  • Market conditions
  • Condition of your home
  • Repairs or improvements
  • Selling timeframe

In real estate terms, market value is the price at which a particular house, in its current condition, should sell within 30 to 90 days.

If the price of your home is too high, this could cause several things:

  • Limits buyers. Potential buyers may not view your home because it appears to be out of their buying range.
  • Limits showings. Other salespeople may be more reluctant to view your home.
  • Used as leverage. Other Realtors® may use this home to drive the sale of other homes that are better-priced.
  • Extended stay on the market. When a home is on the market too long, it may be perceived as defective. Buyers may wonder, “what’s wrong,” or “why hasn’t this sold?”
  • Lower price. An overpriced home, still on the market beyond the average selling time, could lead to a lower selling price. To sell it, you will have to reduce the price – sometimes several times. In the end, you’ll probably get less than if it had been properly priced in the first place.
  • Wasted time and energy. A bank appraisal is most often required to finance a home.


Realtors® have known it for years – well-kept homes that are properly priced in the beginning always get you the fastest sale for the best price! And that’s why you need a professional to assist you in the selling of your home.

Often, in a seller’s market, homes that are priced slightly below market value initially will sell for more, simply because of the extra interest they incite.  This can be a risk, however, and when it comes to such a decision, an experienced, trusted Realtor® is your best ally.

 

Surviving the sale

December 19, 2008

Selling a home can sometimes be a long, stressful, and costly process.  Like anything, though, equipping yourself with the right tools and the right knowledge can eliminate a great number of the potential negative aspects of the process – and get you the maximum return on your investment.

Your Team

The importance of having the right allies in the selling process cannot be overstated.  Having an expert on your side, not only to assist you in making decisions and getting your home marketed, but also simply in terms of having an advocate in the process, is the single most important step you can take to reduce your stress.

The first step in selling any home should be to arrange to get Comparative Market Analyses for your home from three different Realtors®.  Many sellers take this step, but what they do with the information they receive is not always in their best interest.

Once three CMAs have been prepared, the natural tendency is for a seller to hire the Realtor® who produces the highest number.  This is often a mistake.  Competing Realtors® sometimes inflate these numbers in order to ‘buy’ your listing, intending to later drop their price.  If one CMA is significantly higher than the others, be suspicious of how that number was reached.

More important to this process is getting an idea of these Realtors®’ backgrounds, expertise, motivation, and simply their personalities – you may be working closely with this representative for many weeks, so it is important that it be someone you trust.

Your Goals

Goal #1:  Make lots of money.

Most sellers fail to move beyond goal #1, and that can cause some problems.  Another important goal that should be recognized is the attempt to minimize stress.  Will getting an extra percentage or two for your home be worth the inconvenience of having it on the market for an extra month?  Two months?

Your priorities are your own, of course, but sometimes sellers underestimate the stress that having their home on the market for an extended period can generate.  Constant showings, constant interruptions, and concerns about selling your home before buying its replacement are not minor concerns – each can have a major impact on your life.

Sit down and discuss just where you place the most importance in the selling process.  If profit is your only priority, perhaps you can afford to be firmer in your asking price, and can reject offers that are less than ideal.  Most sellers who have had their home on the market for an extended period of time, though, would agree that the few extra dollars were not worth it in the end.

Your Trust

The correlative to assembling a strong team is putting your trust in that team.

Few people would second-guess their heart surgeon and insist they could do a better job themselves, or question whether their lawyer’s knowledge of the law is more extensive than their own, but when it comes to selling a home, many homeowners find it difficult to put their faith in the knowledge of their Realtor® fully.

For example, despite the fact that studies show that less than 1% of homes are sold through open houses, many homeowners insist their Realtor® hold one.  Indeed, if a yard sign and an open house were all it took to sell a home, there wouldn’t be many Realtors® at all!

If you’ve put the right team in place, put your trust in that team.  Realtors® have access to many highly-advanced marketing strategies that you may not even realize are being utilized. 

It is your Realtor’s® job to bring qualified buyers to the table – and keep in mind that he or she likely does not get paid at all if your house doesn’t sell!  In most markets, the combination of the right representative and the right listing price will result in a sold home.  If you recognize this early on, it becomes much easier to take a step back from the process, let your professional representative market your home, and minimize your stress. 

Don’t hesitate to speak up if you think that things are not progressing as they should, but likewise, don’t hesitate to sit back and be comfortable in the knowledge that the sale of your home is being handled professionally and effectively.

 see www.ditmasestates.com

Would you buy your own house?

November 21, 2008

Most people only see a house two or three times before they bid and sometimes buy a house. It is not hard to figure out that the first impression is a significant, if not critical part of selling your house.


Would you buy your own house?

Put yourself in the place of someone walking into your house for the first time. Go outside your house and look at the entrance, I mean really look hard at the entrance. This is the first thing the buyer will see and it will color his or hers feeling about the house.

 

Recently, I came up to a house with peeling paint on the front door jam and broken step. When I entered the house, it was totally redone, new kitchen, new baths, but I couldn’t stop thinking that all the work was hiding something or it was being flipped and maybe I should leave now.

 

Remind you of something—“For want of a nail, the shoe was lost. For want of a shoe…”

The paint and repair was less than $ 100, but probably cost several buyers and thousands of dollars.

 

For more on this series see http://www.ditmasestates.com

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