Tag Archives: agent

How To Get Top Dollar For Your Home

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How does a seller get top dollar for their home? Every seller wants the assurance that his/her house will sell at the highest price possible. But, real estate, as with most industries, is a highly inexact science. There are many factors at play within rapidly changing market terrain. While there are no concise answers as to how one ensures a house sells for top dollar, there are some important considerations to deliberate as the seller that can help you maximize profits, maintain control and reduce the stress that comes with home-selling.

  • Know why you’re selling and keep it to yourself.

The reasons behind your decision to sell impact the process greatly. Do you already have another house in escrow? Do you need to sell quickly? Or is profit your highest priority? All of these questions will factor into your pricing strategy. However, do not reveal your motivation to anyone else other than your agent or they may use the information against you during negotiations.

  • Set your price appropriately.

Setting the right price is the single most important decision you will make when you decide to sell. Price too high and you will turn off potential buyers. Price too low and you may leave money on the table. Make sure you do your homework by looking at comparable sales in your neighborhood in the last 3-6 months. Visit all the competitive offerings and see how they’ve been priced relative to the condition of the home. It’s always good practice to know your competition. While pricing, stay as objective as possible, and really look at your house from a potential buyer’s perspective. Emotional attachment to the house tends to drive pricing higher than necessary.

  • Maximize your home’s sales potential.

You may not be able to change your home’s floor plan or location, but you can make cosmetic updates that will enhance buyer impression. Assess your home, again, through the eyes of perspective buyers, and determine what can use updating. Fresh carpeting and/or a paint job can transform a space dramatically. If possible, avoid showing the house empty. You want to help potential buyers envision the home as their own, so provide neutral staging or de-personalize your existing décor. Furthermore, make repairs to visible damage. And don’t ignore the exterior. Buyer impression starts upon arrival at the house, so make your home appealing from the curb.

  • Consider a pre-appraisal and a pre-inspection.

A pre-appraisal will provide you with an objective basis for pricing your home. Additionally, a pre-inspection can identify any issues with the house that you can address ahead of time rather than during escrow as re-negotiating during escrow can be more costly since you’ll have less leverage and the transaction can be at stake.

  • Know your buyer.

While you shouldn’t disclose much about your reasons for selling, you should try and find out who your buyers are. Why are they moving? Do they need to move quickly? Are they in good financial standing? Having some information on the buyer’s motivation and personal situation will give you the upper hand in the negotiations process.

  • Time your sale.

If possible, watch market conditions carefully and time your sale. Typically, spring and summer are good times to sell. But specific to your market, be mindful of supply and demand. Are there more buyers than sellers? Are interest rates reasonably low? When there are more buyers in the market, sellers can get better pricing and terms, especially if there are multiple parties interested in your property.

  • Hire the right listing agent to represent you.

Truthfully, nothing is more instrumental to your successful home sale than the right real estate agent for your needs. Not all listing agents are created equal. If you hire an experienced agent, they will perform all the research necessary to advise you on all the points listed above: pricing, home improvements, negotiations, timing of the sale, etc. Get a few quality referrals from friends and interview several agents. As part of the interview, make sure you understand how each agent’s marketing plan for your property differs.

To sell your home for top dollar requires proper positioning of your property to the maximum number of prospective buyers. Educating yourself on market conditions and having an experienced agent as your representation will increase the likelihood of a successful transaction for top dollar.

 

Reasons Homes Don’t Sell

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As a homeowner with a house on the market, your dream scenario is to have the house sell within days and with multiple offers. If you are selling during a housing boom, that can very well be the case.  But under current market conditions, the buying-frenzy scenario isn’t as likely, especially if you are inadvertently making any key selling mistakes.

If you’ve had your home on the market for several months and haven’t seen much activity or any offers, you might want to step back and identify the reasons why the house isn’t selling.

Price is too high

The most common reason for a home not selling is that the list price is too high.  Enthusiastic real estate agents who are eager to win your business may suggest a too high asking price.  Or often times, you as the seller have high expectations given your history with the house.  Whatever the reason, if a house is priced too high, it will limit traffic to the house and hinder buyers from making an offer.  Make sure when selecting an agent to work with, that you don’t necessarily go with the agent that suggests the highest price. Agents wishing to win your trust should have a lengthy comp list of recent sales to justify their suggested price.  The fact is, your home is in competition with other homes in the neighborhood, and what buyers are willing to pay will determine the final sales price.

The condition of your home

If there’s healthy inventory on the market, your home could be in a decent amount of competition.  What sets your home apart from the competition is its condition.  The more you can do to make your house appealing to a broader audience, the better your chances are for a quick sale.  That means de-cluttering the house, de-personalizing the space, and neutralizing the rooms.  If you make upgrades to the house prior to listing, don’t get too personal with finish selections.  Other easy and cost-effective fixes that make a huge impact would be paint, flooring/carpeting and curb appeal enhancements.

Location, location, location

So cliché to say, but so true… location is king.  Buyers want homes zoned for good schools, in a safe neighborhood and have great community amenities.  If your house is in a less than ideal location, your real estate agent might offer up some improvements to minimize the home’s shortcomings.  But the only reliable way to overcome a difficult location is with a lower price that adjusts for the less-than-ideal location.

Soft marketing campaign

With 90% of buyers starting their home search online, you need to make sure that the pictures of your house are appealing.  Online first impressions are very important in this day of age of real estate.  Beautiful pictures lead to appointments with interested buyers.  Flat, lackluster photos will leave your home with few showings.  Additionally, an aggressive listing agent should be touting your home to the greater agent community and running ads in numerous publications.  As the seller, make sure you understand the extent of the marketing campaign and ask for marketing updates from your realtor periodically.

Limited Home Accessibility

To get your home sold quickly, it’s important that the home is widely exposed to other agents and potential buyers.  That means the house needs to be easily and frequently accessible for broker’s open, showings and open houses.  While highly inconvenient for you as the seller, being flexible and making the house accessible for potential buyers can help reduce your days on market.

If your house is languishing on the market, make sure you take a step back and survey your home from a buyer’s perspective.  Ask yourself if your home is priced appropriately amongst the competition.  Verify that your real estate agent has a comprehensive and strategic marketing campaign in place.  And make your home available for as many showings as possible.  If what your home needs is a quality rehab, take it off the market and make some updates to give it a fresh facelift.  A break from the market is often necessary to give a new lease to the listing.

Listing Agreement: What Does It Cover?

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You’ve decided to sell your home and you’ve engaged a real estate agent to get the job done. The agent will subsequently present you with a listing agreement, the contract between the seller and the agent that sets forth the conditions of the listing. It’s important to understand the terms of the agreement because once executed, you will be bound by them for the duration of the agreement. And while the listing agreement protects the agent because it obligates you to work with the agent for a minimum amount of time, it also protects you by detailing the agent’s responsibilities and what recourse you have should he/she not fulfill them.

Here are the key terms of listing agreements:

1)   Length of the listing period.

The listing agreement defines the start date and the end date. During this time period, your agent has the exclusive right to sell your property. Generally, the agreement is written for 3 to 6 months. While sellers typically prefer to have shorter time frames in case a sale doesn’t happen as quickly as imagined, it’s important to recognize that it takes a fair amount of time, effort and expense for the agent to prepare the house for sale, take it to market, and generate interest around the property.

2)   Sales price.

The listing agreement also defines the mutually agreed upon initial list price for the property. The sales price can be further amended during the listing agreement period with the execution of an addendum document.

3)   Amount of commission.

The commission rate is the percentage of your sale that is paid out to the brokerage companies that sponsor the real estate agents involved in the transaction. Typically this is set forth at 5-6%, to be split between the listing broker and the selling broker. The listing agreement should also specify exceptions to the commission as well. For instance, if your agent “double-ends” the sale, meaning that he/she also represents the buyer on the transaction, the commission rate for that scenario should be spelled out.

4)   Duties.

The agreement should lay out all the necessary activities the agent is authorized to conduct on your behalf to sell the property. In addition, the agreement will also specify how you will handle disputes should there be a disagreement between you and the agent. Generally, the contract calls for mediation or binding arbitration.

The listing agreement is the first of several forms a seller will be asked to review and sign during a sale transaction. Read it carefully and have your real estate agent walk you through any portions you don’t understand. Make sure you are comfortable with the terms and clear on how things will proceed.

Getting Ready to Buy? A Few Do’s.

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You’ve been flirting with the market for months, touring open houses on the weekend and logging in late night hours on Redfin or Zillow.  You’ve pinpointed the ideal neighborhood that suits you best and have toured the schools in the district.  You are ready to take the plunge and buy.  What next?  A few do’s:

1)   Get a Realtor

A seasoned real estate agent can provide you with valuable insights on homes and neighborhoods during the search portion of your house hunt.  And even with the proliferation of online real estate search engines, when the time comes to write an offer, you will need an experienced real estate professional on your side to navigate the negotiations, escrow and closing process with you.  Over the years, the laws for home buying have become increasingly complex and the process is filled with many moving parts.  Ask your trusted friends for quality agent referrals and find yourself a good teammate.

2)   Get Preapproved for a Loan

Consulting a mortgage lender will help you get a clear picture of your purchasing power so make this step at the top of your list of to do’s.   Understanding what you can afford from a lending perspective helps define your house search so you don’t waste time looking at homes you cannot afford.  Plus, often the market moves fast on well-priced homes, so having a pre-approval letter in hand lines you up at the front of starting block.

3)   Make A Checklist of “Must Haves” in a House

No two houses are the same and no house is ever 100% perfect, but having a checklist for your ideal home is useful so you are efficient in your house hunt.  A house can always be redecorated to perfection but it’s a bigger headache if your new house is missing that home office you had hoped to have.

4)   Check Your Credit

Your credit score helps lending institutions determine the rate and terms they can offer you on the loan.  If your credit is high, meaning that your credit history indicates that you are fiscally responsible, lenders will see you as a low-risk investment and offer you a lower rate on your loan with good conditions.  If your score is low, lenders will think you are a riskier investment and charge you with higher interest rates to take on the perceived risk.  Get your credit scores from Equifax, Experian and TransUnion, the three major credit agencies, so you can see how you stack up in terms of investment risk and see if you have time to improve your credit health.

Stay tuned next week for a list of pre-buying don’ts.

Tips on Touring A Home

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I recently read an astonishing statistic that on average potential buyers spend 17 minutes in a home before making an offer on it.  While I can’t verify how researchers arrived at this statistic, that number is shocking for two reasons; 1) It’s an extremely short amount of time to spend deciding on what is the biggest purchase of your life, but also 2) it’s truthfully not all that surprising.  In my experience, typical showings tend to last around 30 minutes.  If a house isn’t the right fit, often times the showing ends after a few quick minutes.

So if indeed, all it takes is anywhere between 17 to 30 minutes to determine if a house is right for you, here are a few tips on how to spend that time as efficiently as possible.

1)  Use all your senses and bring a camera!

Touring a house is first and foremost a visual activity.  Your eyes are busy taking in all the pros and cons, but often distracted by some of home’s charming features.  You might be so busy falling in love with the large Carrera marble countertops that you didn’t really take in the condition of the cabinets.  Open a drawer or two.  Turn on the faucet to gauge water pressure.  Does the floorboard creak or feel soft when you walk?  Does the house smell musty?  Can you hear street noise when all the windows are closed?  Use all your senses to get a full picture of what it might be like to live in the house.  Because that smell might be an indication of a hidden water issue.  And I have often heard about people moving into a house only to find unacceptable street noise after the fact.  You simply cannot rely on just your eyes to take everything in.  Which leads me to my next point: bring a camera.  There’s just no way after a day of looking at houses you will remember the color of the laundry room wallpaper in house number #2.

2)  Spend the most time in the kitchen and bathrooms.

The most expensive room to renovate is the kitchen, followed by bathrooms.  While most homebuyers draw the greatest impression of a house from its kitchen, people tend to overlook the bathrooms.  Additionally, both these rooms have running water and plumbing to contend with so make sure you are diligent in your assessment of their current condition.  Look under the sinks for signs of leakage or old plumbing.  Again, turn on the water and check for good pressure, clear run-off, and appropriate water temperature.  And finally, be honest with yourself about how these rooms look.  Your bedroom can be transformed with a coat of paint.  A kitchen or bathroom remodel is substantially more.  So if you aren’t in love with the cabinet style or the countertops, admit to yourself that you will likely want to change it in the near future, and factor that into your decision-making process.

3)  Go outside.

Guess what else is really expensive to tear out and redo?  Backyard and front yards.  Prospective buyers not surprisingly spend most of their time at a home tour indoors, surveying its finishes, floorplan and features.  But do not conclude your showing without spending a significant amount of time taking in your outdoor space.  Are there cracks on the hardscape that need to be addressed?  What condition is the hot tub or pool?  Does the backyard get enough sun?  If so, what time of day?  Is your fence in good condition?  And, don’t forget to look out at your neighbors and the immediate neighborhood.  What condition are the houses on your street?  Who might your neighbors be?  How busy is the street in front?  Don’t miss out on these critical cues of a property’s shortcomings.

4)  Bring a tape measure.

Do the due diligence and measure the rooms that matter to you and also a few major appliance openings to make sure that your existing furniture and appliances will fit.  Generally, washers and dryers don’t convey with the house.  If your current washer and dryer don’t fit the openings, and do not assume they will, a brand new pair of laundry machines will become additional expenditures that you didn’t anticipate.  Think about how annoyed you might become upon move in to find that your furniture doesn’t fit well or your TV is too small for the built-in opening.  While I’m not suggesting that the size of your furniture and appliances be deal-breakers should you love the house, it’s just important to be aware of these potential costs up front as it will improve your satisfaction with the overall home purchase.  Nothing dampens the excitement of moving into a new house as much as a growing list of unforeseen expenses.

5)  Go back for a few more showings!

If upon first impression, you make an emotional connection to a house, make sure you request additional showings, especially at different times of the day.  Today’s market isn’t moving at a pace where you wouldn’t have time to squeeze in a few more looks.  Chances are, after your first tour, you won’t remember several important details and you’ll have new questions about the home.

Happy house hunting!