We hear a lot of talk about real estate agents--what they should and shouldn't do and say, whether they represent buyers or sellers--but we don't hear too much about buyer responsibilities.
A successful real estate transaction requires cooperation from everyone associated with the sale. There are things you can do to help your agent, which in the long run gets you to closing faster and with fewer bumps along the way.
Get pre-approved by a lending institution.
You won't waste your time or the agent's looking at houses out of your price range.
If you find a house you like, you'll feel confident making an offer. If you have written proof, your agent can present it with your offer, making a powerful statement that you can truly buy the home. You'll have a better idea how much to expect in closing costs.
Think seriously about your needs and wants.
It's sometimes difficult to find the ideal home. Evaluate your needs and wants to determine which items are most important to you. Convey that information to the agent.
Be honest with the agent.
How much personal information you give a real estate agent depends on your relationship with him/her, but no matter what the relationship is... be honest. Find an agent you like and stick with them!
Don't ask your agent to do anything illegal.
That includes obvious tasks that might relate to fraud or deception. It also includes fair housing issues. Your agent must comply with fair housing laws.
Cooperate with the agent.
Don't judge listings by looking at MLS sheets. Sure, choose some of the houses you want to see, but let your agent make choices, too.
Don't refuse to keep a listing appointment just because you don't like the exterior.
It's rude to drive away and it creates hard feelings. You don't have to spend a lot of time in the house, but do a walk-through.
Don't blindly follow an agent's directives, but do cooperate.
If contracts must be signed, don't let them linger. Your verbal acceptance of a counter offer might be discarded if you take your time to sign.
Attend your home inspection and pest inspection if possible.
You should be there to see and hear things firsthand.
Gather all paperwork needed to process your loan.
Meet with the loan officer as required.
Work with your agent to make sure everything's ready for closing (switching utilities, obtaining insurance binders, etc.)
Closings don't just happen. They happen because at least one person is following through. The road to closing is a lot smoother if everyone involved cooperates.
Sunday, February 26, 2006
20 Low-Cost Ways to Spruce Up Your Home
Make your home more appealing for potential buyers with these quick and easy tips:
1. Trim bushes so they don’t block windows and cut down on light.
2. Buy a new doormat.
3. Put a pot of bright flowers (or a small evergreen in winter) on your porch.
4. Put new doorknobs on your doors.
5. Put a fresh coating on your driveway.
6. Edge the grass around walks and trees.
7. Keep your garden tools out of site.
8. Be sure kids put away their toys.
9. Buy a new mailbox.
10. Upgrade the outside lighting.
11. Use warm, incandescent light bulbs for a homey feel.
12. Polish or replace your house numbers.
13. Clean your gutters.
14. Put out potpourri or burn scented candles (fruit/spice scents).
15. Buy new pillows for the sofa.
16. Buy a flowering plant and put it in a window you pass by frequently.
17. Make a centerpiece for your table with fruit or artificial flowers.
18. Replace heavy curtains with sheer ones that let in more light.
19. Buy new towels.
20. Put a seasonal wreath on your door.
1. Trim bushes so they don’t block windows and cut down on light.
2. Buy a new doormat.
3. Put a pot of bright flowers (or a small evergreen in winter) on your porch.
4. Put new doorknobs on your doors.
5. Put a fresh coating on your driveway.
6. Edge the grass around walks and trees.
7. Keep your garden tools out of site.
8. Be sure kids put away their toys.
9. Buy a new mailbox.
10. Upgrade the outside lighting.
11. Use warm, incandescent light bulbs for a homey feel.
12. Polish or replace your house numbers.
13. Clean your gutters.
14. Put out potpourri or burn scented candles (fruit/spice scents).
15. Buy new pillows for the sofa.
16. Buy a flowering plant and put it in a window you pass by frequently.
17. Make a centerpiece for your table with fruit or artificial flowers.
18. Replace heavy curtains with sheer ones that let in more light.
19. Buy new towels.
20. Put a seasonal wreath on your door.
Wednesday, February 22, 2006
Does Moving Up Make Sense?
Answer these questions to help you decide whether moving up makes sense:
How much equity do you have in your home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of paying a mortgage, but if you’ve owned your home for a number of years, you may have significant unrealized gains.
Has your income increased enough to cover the extra mortgage costs and the costs of moving?
Does your neighborhood still meet your needs? For example, if you’ve had children, the quality of the schools may be more of a concern now than when you first purchased.
Can you add on or remodel? If you have a large yard, there might be room to expand your home. If not, your options may be limited. Also, do you want to undertake the headaches of remodeling?
How is the home market? If it’s good, you may get top dollar for your home.
How are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer.
How much equity do you have in your home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of paying a mortgage, but if you’ve owned your home for a number of years, you may have significant unrealized gains.
Has your income increased enough to cover the extra mortgage costs and the costs of moving?
Does your neighborhood still meet your needs? For example, if you’ve had children, the quality of the schools may be more of a concern now than when you first purchased.
Can you add on or remodel? If you have a large yard, there might be room to expand your home. If not, your options may be limited. Also, do you want to undertake the headaches of remodeling?
How is the home market? If it’s good, you may get top dollar for your home.
How are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer.
5 Ways to Speed Up The Sale of Your Home
1. Price it right. Set a price at the lower end of your property’s realistic price range.
2. Get your house market-ready for at least two weeks before you begin showing it.
3. Be flexible about showings. It’s often disruptive to have a house ready to show on the spur of the moment, but the more often someone can see your home, the sooner you’ll find a seller.
4. Be ready for the offers. Decide in advance what price and terms you’ll find acceptable.
5. Don’t refuse to drop the price. If your home has been on the market for more than 30 days without an offer, be prepared to lower your asking price.
2. Get your house market-ready for at least two weeks before you begin showing it.
3. Be flexible about showings. It’s often disruptive to have a house ready to show on the spur of the moment, but the more often someone can see your home, the sooner you’ll find a seller.
4. Be ready for the offers. Decide in advance what price and terms you’ll find acceptable.
5. Don’t refuse to drop the price. If your home has been on the market for more than 30 days without an offer, be prepared to lower your asking price.
Thursday, February 16, 2006
Top 10 Disadvantages of do-it-yourself Home Selling
1. RIGHT SELLING PRICE DIFFICULT TO ARRIVE AT
Besides not being in direct touch with current market trends, owners tend to see their home through prejudiced eyes, preventing an honest evaluation of their property.
2. PROCEDURE BASED ON TRAIL AND ERROR RATHER THAN EXPERIENCE
Extra work, confusion, costly mistakes are common results of not knowing how and in what order to handle all arrangements and details.
3. MEANS OF ADVERTISING ARE LIMITED AND EXPENSIVE
“For Sale By Owner” ads rarely get preferred placement in the newspaper and cost owners more because they do not get a discount for frequent placements. There are also no multiple listing or referral services for individuals; they must rely heavily on lawn signs to attract buyers. Then don't forget the most important marketing tool - the internet. Agents have access to more sites and online promotion than the average home owner.
4. NO SCREENING OF POTENTIAL BUYERS
“For Sale By Owner” ads and signs are open invitations to anyone to ask to see your house. Owners have no way to screen prospective buyers and are subject to drop-in-off-the-street lookers and a telephone ringing off the hook at all hours.
5. COMPLEXITIES OF FINANCING REQUIRE A PROFESSIONAL
Due to the complexities of financing, changing interest rates, points, terms, type of mortgages (FHA, VA, ARM, etc.) only a professional Realtor can achieve the highest return for you.
6. NEGOTIATIONS ON PRICE ARE ALWAYS TRICKY TO HANDLE
Without a skilled negotiator to help, buyer and seller frequently dicker unnecessarily, neither one knowing when to stand pat or when to conceded. Both are afraid of being cheated.
7. PAPERWORK IS A HEADACHE AND COSTLY TO DO YOURSELF
Mortgage arrangements, title search, legal advice, and a myriad of closing details are overwhelming and time-consuming for the average person. Taking days off work to handle everything may end up costing more than money supposedly saved by not hiring a Realtor in the first place.
8. BUYERS ARE WARY OF DEALING DIRECTLY WITH HOMEOWNERS
It is easier to speak frankly with a Realtor than to risk insulting the owner. Buyers need to feel that they are getting a fair deal on a very large investment and are hesitant to do business with a non-professional.
9. THE LONGER A HOME IS ON THE MARKET THE HARDER IT IS TO SELL
People wonder what is wrong with a house that doesn’t sell in a reasonable length of time and back away from even bothering to take a closer look. Time spent trying to sell your home by yourself can make it harder to sell for the Realtor you turn to in the end.
10. YOUR HOME IS WORTH TOO MUCH MONEY TO RISK
It makes sense to weigh your decision very carefully about how to sell it.
Best advice is…forget about selling your home yourself! If you are sick, you go to a doctor; if you need legal advice, you consult a lawyer. Does it not it seem logical to turn to a professional Realtor to help you sell your home? Do not be an UNREPRESENTED SELLER – contact me today - I won't just sell your home I will make sure it closes.
http://www.BuyAndSellNorthIdaho.com
Besides not being in direct touch with current market trends, owners tend to see their home through prejudiced eyes, preventing an honest evaluation of their property.
2. PROCEDURE BASED ON TRAIL AND ERROR RATHER THAN EXPERIENCE
Extra work, confusion, costly mistakes are common results of not knowing how and in what order to handle all arrangements and details.
3. MEANS OF ADVERTISING ARE LIMITED AND EXPENSIVE
“For Sale By Owner” ads rarely get preferred placement in the newspaper and cost owners more because they do not get a discount for frequent placements. There are also no multiple listing or referral services for individuals; they must rely heavily on lawn signs to attract buyers. Then don't forget the most important marketing tool - the internet. Agents have access to more sites and online promotion than the average home owner.
4. NO SCREENING OF POTENTIAL BUYERS
“For Sale By Owner” ads and signs are open invitations to anyone to ask to see your house. Owners have no way to screen prospective buyers and are subject to drop-in-off-the-street lookers and a telephone ringing off the hook at all hours.
5. COMPLEXITIES OF FINANCING REQUIRE A PROFESSIONAL
Due to the complexities of financing, changing interest rates, points, terms, type of mortgages (FHA, VA, ARM, etc.) only a professional Realtor can achieve the highest return for you.
6. NEGOTIATIONS ON PRICE ARE ALWAYS TRICKY TO HANDLE
Without a skilled negotiator to help, buyer and seller frequently dicker unnecessarily, neither one knowing when to stand pat or when to conceded. Both are afraid of being cheated.
7. PAPERWORK IS A HEADACHE AND COSTLY TO DO YOURSELF
Mortgage arrangements, title search, legal advice, and a myriad of closing details are overwhelming and time-consuming for the average person. Taking days off work to handle everything may end up costing more than money supposedly saved by not hiring a Realtor in the first place.
8. BUYERS ARE WARY OF DEALING DIRECTLY WITH HOMEOWNERS
It is easier to speak frankly with a Realtor than to risk insulting the owner. Buyers need to feel that they are getting a fair deal on a very large investment and are hesitant to do business with a non-professional.
9. THE LONGER A HOME IS ON THE MARKET THE HARDER IT IS TO SELL
People wonder what is wrong with a house that doesn’t sell in a reasonable length of time and back away from even bothering to take a closer look. Time spent trying to sell your home by yourself can make it harder to sell for the Realtor you turn to in the end.
10. YOUR HOME IS WORTH TOO MUCH MONEY TO RISK
It makes sense to weigh your decision very carefully about how to sell it.
Best advice is…forget about selling your home yourself! If you are sick, you go to a doctor; if you need legal advice, you consult a lawyer. Does it not it seem logical to turn to a professional Realtor to help you sell your home? Do not be an UNREPRESENTED SELLER – contact me today - I won't just sell your home I will make sure it closes.
http://www.BuyAndSellNorthIdaho.com
Monday, February 13, 2006
Getting ready to buy a home? Read this first.
Buying a home will probably rank as one of the biggest personal investments one can make. Being organized and in control will contribute significantly to getting the best home deal possible with the least amount of stress. It's important to anticipate the steps required to successfully achieve your housing goal and to build a plan of action that gets you there.
Before you can build a plan of action, take the time to lay the groundwork for your decision-making process.
First, ask yourself how much can you afford to pay for a home. If you're not sure on the price range, find a lender and get preapproved. Preapproval will let you know how much you can afford so that you can look for homes in your price range. Getting pre-approved helps you to alleviate some of the anxieties that come with home buying. You know exactly what you qualify for and at what rate, you know how large your monthly mortgage payments will be, and you know how much you will have for a down payment. Once you are pre-approved, you avoid the frustration of finding homes that you think are perfect, but are not in your price range.
Second, ask yourself where you want to live and what is the best location for you and/or your family. Things to consider:
*convenience for all family members
*proximity to work, school
*crime rate of neighborhood
*local transportation
*types of homes in neighborhood, for example condos, town homes, co-ops, newly constructed homes etc.
Third, when you are ready to buy make sure you choose an agent to work for you! Contact Sara for help in YOUR home buying process!
Before you can build a plan of action, take the time to lay the groundwork for your decision-making process.
First, ask yourself how much can you afford to pay for a home. If you're not sure on the price range, find a lender and get preapproved. Preapproval will let you know how much you can afford so that you can look for homes in your price range. Getting pre-approved helps you to alleviate some of the anxieties that come with home buying. You know exactly what you qualify for and at what rate, you know how large your monthly mortgage payments will be, and you know how much you will have for a down payment. Once you are pre-approved, you avoid the frustration of finding homes that you think are perfect, but are not in your price range.
Second, ask yourself where you want to live and what is the best location for you and/or your family. Things to consider:
*convenience for all family members
*proximity to work, school
*crime rate of neighborhood
*local transportation
*types of homes in neighborhood, for example condos, town homes, co-ops, newly constructed homes etc.
Third, when you are ready to buy make sure you choose an agent to work for you! Contact Sara for help in YOUR home buying process!
2006 Market Predictions by CNN
Coeur D’Alene ranks #2 (sort list by 2006 predictions) in a CNN-Money study of 379 metro areas in the United States for '06 projected market increase.
CLICK HERE TO READ THE ARTICLE
Feel free to browse the MLS on my website and then contact me about owning your own piece of North Idaho!
CLICK HERE TO READ THE ARTICLE
Feel free to browse the MLS on my website and then contact me about owning your own piece of North Idaho!
Are Pets Soiling Your Chances of Selling Your Home?
Pets are often so loved by their owners that they are allowed the run of the house. At their worst, doggie and kitty dictators mark their territory with pungent odors and unsightly stains.
When you love these little furry friends, it's hard to realize how much these pets may be hurting your marketing efforts in selling your home. If you are like most pet lovers, you may be a little on the sensitive side.
If your listing agent is having a hard time communicating with you about your pets and their effect on buyers and other agents, perhaps a look at this neutral third-party list of suggestions may help you understand the problem better:
~ If it smells, it won't sell. Your pet may be perfectly well mannered, but that doesn't mean your home is odor-free. Most pet odor comes from fur and dander. Pets mark their territory by rubbing their fur on objects. That's why your kitty rubs your ankles with her sides. Minimize pet odors by not allowing your pets to sleep on couches and carpets. Provide them with a cuddly bed of their own and reward them lavishly whenever they use it. Deodorize often with Febreze, a product found on most grocery store shelves. Keep pets bathed and groomed more often than usual, so as not to add to existing pet odor.
~ Stains don't have to be permanent. There are many good products to clean pet stains. Just visit your local pet store or key "pet stains" into your favorite search engines. What you will find are companies with advice and products, such as Planet Urine (http://planeturine.com), featured on The Tonight Show with Jay Leno. Pet stores sell a product called Nature's Miracle which also works beautifully. Hospital supply companies are also a great source for heavy duty stain and odor control products.
~ Vacuum daily. While your home is being marketed, vacuum the carpets daily with an odor deodorizer. You can find them in the cleaning supplies section of the grocery store. Remember to change bags more frequently than usual. Treat your home to a professional carpet cleaning. Also, open the windows and let some fresh air in. Pull back the drapes. Open vents. A closed in home will hold more odor than it should.
~ Keep pets from showings. Many buyers are suggestible. If they don't see a pet, they'll look at the home more objectively. If they spot your dog or cat, they will be alerted to look for stains and odors. Arrange to have your pet off the property for showings, and put their food dishes and toys out of sight, too. Keep cat boxes and backyard doggie loos scooped daily. If you have to board your pet to it from doing further damage or soiling new replacement fixtures, do so. You will be rewarded with a higher selling price for your home. When you are in your new home, you can welcome your pet back from its "holiday" with a favorite treat and lots of snuggles.
~ Stains and odors may have to be disclosed. In many states, stains and odors that can't be removed must be disclosed to the buyer or you may be held liable. That will automatically put you in a poor bargaining position with the buyer. If you aren't sure what the extent of your pet's damage is, you can purchase, rent or borrow a hand-held black light to shine on carpets and other fixtures. Some carpet cleaning kits include a black light for this purpose. Viewing your carpet this way will help you decide whether to clean or replace the carpet. Your agent will most likely advise you to replace the carpet. It will cost you much less money than a buyer's discount.
~ Perception is everything. If your home doesn't pass the sniff or stain test, it will adversely affect the way other agents and their buyers perceive your home. Your agent is depending upon other Realtors to show your home to their buyers. Many Realtors insist on showing only pristine homes to their clients. Once word gets around, you may find yourself with few showings which will cause the value of your home to drop.
Be realistic about your home's value. A home is only really worth what a buyer is willing to pay. If your home has suffered damage due to your pets, it may be devalued in the marketplace. The only cure is taking action to eliminate the problem before your home goes on the market. Listen to your Realtor and follow his/her advice about the most cost-effective ways to manage your pet's damage to the home. She or he will have suggestions and solutions that will put you right back on the marketing track.
When you love these little furry friends, it's hard to realize how much these pets may be hurting your marketing efforts in selling your home. If you are like most pet lovers, you may be a little on the sensitive side.
If your listing agent is having a hard time communicating with you about your pets and their effect on buyers and other agents, perhaps a look at this neutral third-party list of suggestions may help you understand the problem better:
~ If it smells, it won't sell. Your pet may be perfectly well mannered, but that doesn't mean your home is odor-free. Most pet odor comes from fur and dander. Pets mark their territory by rubbing their fur on objects. That's why your kitty rubs your ankles with her sides. Minimize pet odors by not allowing your pets to sleep on couches and carpets. Provide them with a cuddly bed of their own and reward them lavishly whenever they use it. Deodorize often with Febreze, a product found on most grocery store shelves. Keep pets bathed and groomed more often than usual, so as not to add to existing pet odor.
~ Stains don't have to be permanent. There are many good products to clean pet stains. Just visit your local pet store or key "pet stains" into your favorite search engines. What you will find are companies with advice and products, such as Planet Urine (http://planeturine.com), featured on The Tonight Show with Jay Leno. Pet stores sell a product called Nature's Miracle which also works beautifully. Hospital supply companies are also a great source for heavy duty stain and odor control products.
~ Vacuum daily. While your home is being marketed, vacuum the carpets daily with an odor deodorizer. You can find them in the cleaning supplies section of the grocery store. Remember to change bags more frequently than usual. Treat your home to a professional carpet cleaning. Also, open the windows and let some fresh air in. Pull back the drapes. Open vents. A closed in home will hold more odor than it should.
~ Keep pets from showings. Many buyers are suggestible. If they don't see a pet, they'll look at the home more objectively. If they spot your dog or cat, they will be alerted to look for stains and odors. Arrange to have your pet off the property for showings, and put their food dishes and toys out of sight, too. Keep cat boxes and backyard doggie loos scooped daily. If you have to board your pet to it from doing further damage or soiling new replacement fixtures, do so. You will be rewarded with a higher selling price for your home. When you are in your new home, you can welcome your pet back from its "holiday" with a favorite treat and lots of snuggles.
~ Stains and odors may have to be disclosed. In many states, stains and odors that can't be removed must be disclosed to the buyer or you may be held liable. That will automatically put you in a poor bargaining position with the buyer. If you aren't sure what the extent of your pet's damage is, you can purchase, rent or borrow a hand-held black light to shine on carpets and other fixtures. Some carpet cleaning kits include a black light for this purpose. Viewing your carpet this way will help you decide whether to clean or replace the carpet. Your agent will most likely advise you to replace the carpet. It will cost you much less money than a buyer's discount.
~ Perception is everything. If your home doesn't pass the sniff or stain test, it will adversely affect the way other agents and their buyers perceive your home. Your agent is depending upon other Realtors to show your home to their buyers. Many Realtors insist on showing only pristine homes to their clients. Once word gets around, you may find yourself with few showings which will cause the value of your home to drop.
Be realistic about your home's value. A home is only really worth what a buyer is willing to pay. If your home has suffered damage due to your pets, it may be devalued in the marketplace. The only cure is taking action to eliminate the problem before your home goes on the market. Listen to your Realtor and follow his/her advice about the most cost-effective ways to manage your pet's damage to the home. She or he will have suggestions and solutions that will put you right back on the marketing track.
10 Biggest Selling Myths
1. Myth: You should always price your home high and gradually lower it if it doesn't sell.
Truth: Pricing too high can be as bad as pricing too low. You may think by listing high you can always accept a lower offer, but if you do, you'll miss the buyers looking in the price range where your home should be. Offers may not even come in, because interested buyers are scared off by the price and won't bother to look. By the time the listing price is corrected, you will have lost a large group of potential buyers. Your real estate agent will offer you a comparable market analysis. This is a document that compares your home to other similar homes in your area, with the goal of helping you to accurately assess your home's true market value.
2. Myth: Minor repairs can wait until later. There are more important things to be done.
Truth: Minor repairs make your house more marketable, allowing you to maximize your return (or minimize loss) on the sale. By and large, buyers are looking for an inviting home in move-in condition. Buyers who are willing to tackle the repairs after moving in automatically subtract the cost of needed fix-ups from the price they offer. You save nothing by putting off these items, and you may likely slow the sale of your home.
3. Myth: Once potential buyers see the inside of your home, curb appeal won't matter.
Truth: Buyers probably won't make it to the inside of the home if the outside of your home does not appeal to them. Many buyers drive by a home before deciding whether or not to look inside. Your home's exterior will have less than a minute to make a good first impression. Spruce up the lawn, trim shrubs and trees, and weed the garden. Clear the walkways and driveways of leaves and other debris. Repair gutters and eaves, touch up the exterior paint and repair or resurface cracked driveways and sidewalks. Place potted flowers out front, hang a wreath on the door and put out a pleasing welcome mat for added curb appeal.
4. Myth: Once potential buyers fall in love with the exterior look of your home, you put interior improvements on the back burner.
Truth: Buyers have no qualms about walking right out the front door within 60 seconds if the house doesn't look like it could be theirs. Remember that most buyers are looking for an inviting home in move-in condition. Spending a few thousand dollars for the right work on your home before you sell it, usually translates into a higher selling price and shorter marketing time. Your real estate agent will consult with you about the repairs and replacements that will benefit you most.
5. Myth: Your home must be every homebuyer's dream home.
Truth: If you get carried away with repairs and replacements to your home, you may end up over-improving the house. At some point, improvements that you make to your home can exceed what is customary for comparable homes in your area. For instance, there may not be another swimming pool in your entire subdivision. After spending $20,000 to install an in-ground swimming pool that you hope will lure buyers, you may find that it only raises the market value of your home by $10,000 because there are no other comparable properties to support the market value of the pool. As a rule of thumb, if your improvements push your home's value higher than 20% above average neighboring home values, don't expect to recoup the entire amount of improvements. Your real estate agent can advise you as to the scope of projects you might consider in preparing your house for sale.
6. Myth: Buyers are never swayed by sellers that offer creative financing options.
Truth: By offering flexibility in financing options, you may lure more prospective buyers. You might consider offering seller financing, paying some of the buyer's closing costs, including a one-year home warranty, or other buyer incentives. Your real estate agent, who has professional knowledge of local market activity, can help you decide what incentives, if any, to offer.
7. Myth: You are better off selling your home on your own, thus saving the commission you would have paid to a real estate agent.
Truth: Statistically, many sellers who attempt to sell their homes on their own cannot complete the sale without the service of a professional real estate agent. Sellers who sell their home without a real estate agent often net less from the sale than sellers who use one. You visit a doctor when you're sick and take your car to a mechanic when it needs repairs. It makes sense to contact a real estate professional when you are preparing to sell your biggest asset!
8. Myth: Good sellers should be available to guide prospective buyers through the home, giving the whole process a more personal touch.
Truth: Prospective buyers will feel more like the house could be theirs if the current owners are not there. The presence of homeowners during a viewing can make buyers feel like they are intruding. They need to be able to visualize your house as their home, which can be difficult to do when they are acutely aware that it is still your home. Your real estate agent will be happy to look out for your home during open houses or showings.
9. Myth: Successful sellers insist that the terms of the sale happen their way or no way.
Truth: If you approach the sale of your home as the buyer's adversary, you risk losing a perfectly solid buyer for no good reason. Both you and the buyer have the same goal: for you to sell your home and for the buyer to buy it. Work with your real estate agent to approach negotiations positively and with a win-win frame of mind.
10. Myth: When you receive an offer, you should make the buyer wait. This gives you a better negotiating position.
Truth: You should reply immediately to an offer! When a buyer makes an offer, that buyer is, at that moment in time, ready to buy your home. Moods can change, and you don't want to lose the sale because you stalled in replying.
Truth: Pricing too high can be as bad as pricing too low. You may think by listing high you can always accept a lower offer, but if you do, you'll miss the buyers looking in the price range where your home should be. Offers may not even come in, because interested buyers are scared off by the price and won't bother to look. By the time the listing price is corrected, you will have lost a large group of potential buyers. Your real estate agent will offer you a comparable market analysis. This is a document that compares your home to other similar homes in your area, with the goal of helping you to accurately assess your home's true market value.
2. Myth: Minor repairs can wait until later. There are more important things to be done.
Truth: Minor repairs make your house more marketable, allowing you to maximize your return (or minimize loss) on the sale. By and large, buyers are looking for an inviting home in move-in condition. Buyers who are willing to tackle the repairs after moving in automatically subtract the cost of needed fix-ups from the price they offer. You save nothing by putting off these items, and you may likely slow the sale of your home.
3. Myth: Once potential buyers see the inside of your home, curb appeal won't matter.
Truth: Buyers probably won't make it to the inside of the home if the outside of your home does not appeal to them. Many buyers drive by a home before deciding whether or not to look inside. Your home's exterior will have less than a minute to make a good first impression. Spruce up the lawn, trim shrubs and trees, and weed the garden. Clear the walkways and driveways of leaves and other debris. Repair gutters and eaves, touch up the exterior paint and repair or resurface cracked driveways and sidewalks. Place potted flowers out front, hang a wreath on the door and put out a pleasing welcome mat for added curb appeal.
4. Myth: Once potential buyers fall in love with the exterior look of your home, you put interior improvements on the back burner.
Truth: Buyers have no qualms about walking right out the front door within 60 seconds if the house doesn't look like it could be theirs. Remember that most buyers are looking for an inviting home in move-in condition. Spending a few thousand dollars for the right work on your home before you sell it, usually translates into a higher selling price and shorter marketing time. Your real estate agent will consult with you about the repairs and replacements that will benefit you most.
5. Myth: Your home must be every homebuyer's dream home.
Truth: If you get carried away with repairs and replacements to your home, you may end up over-improving the house. At some point, improvements that you make to your home can exceed what is customary for comparable homes in your area. For instance, there may not be another swimming pool in your entire subdivision. After spending $20,000 to install an in-ground swimming pool that you hope will lure buyers, you may find that it only raises the market value of your home by $10,000 because there are no other comparable properties to support the market value of the pool. As a rule of thumb, if your improvements push your home's value higher than 20% above average neighboring home values, don't expect to recoup the entire amount of improvements. Your real estate agent can advise you as to the scope of projects you might consider in preparing your house for sale.
6. Myth: Buyers are never swayed by sellers that offer creative financing options.
Truth: By offering flexibility in financing options, you may lure more prospective buyers. You might consider offering seller financing, paying some of the buyer's closing costs, including a one-year home warranty, or other buyer incentives. Your real estate agent, who has professional knowledge of local market activity, can help you decide what incentives, if any, to offer.
7. Myth: You are better off selling your home on your own, thus saving the commission you would have paid to a real estate agent.
Truth: Statistically, many sellers who attempt to sell their homes on their own cannot complete the sale without the service of a professional real estate agent. Sellers who sell their home without a real estate agent often net less from the sale than sellers who use one. You visit a doctor when you're sick and take your car to a mechanic when it needs repairs. It makes sense to contact a real estate professional when you are preparing to sell your biggest asset!
8. Myth: Good sellers should be available to guide prospective buyers through the home, giving the whole process a more personal touch.
Truth: Prospective buyers will feel more like the house could be theirs if the current owners are not there. The presence of homeowners during a viewing can make buyers feel like they are intruding. They need to be able to visualize your house as their home, which can be difficult to do when they are acutely aware that it is still your home. Your real estate agent will be happy to look out for your home during open houses or showings.
9. Myth: Successful sellers insist that the terms of the sale happen their way or no way.
Truth: If you approach the sale of your home as the buyer's adversary, you risk losing a perfectly solid buyer for no good reason. Both you and the buyer have the same goal: for you to sell your home and for the buyer to buy it. Work with your real estate agent to approach negotiations positively and with a win-win frame of mind.
10. Myth: When you receive an offer, you should make the buyer wait. This gives you a better negotiating position.
Truth: You should reply immediately to an offer! When a buyer makes an offer, that buyer is, at that moment in time, ready to buy your home. Moods can change, and you don't want to lose the sale because you stalled in replying.
A Buyer's Agent? A Seller's Agent? A Dual Agent?
In the past, real estate agents always represented the seller, whether the agent helped a seller to market and sell a home or helped a buyer find and purchase a home. In other words, agents were at one time legally bound to represent the seller in a residential real estate transaction. In that scenario, the seller paid both the listing agent and the agent who brought the buyer.
Today, agents either represent the buyer, the seller, or both. If you want to sell your home, you can work with a "seller's agent." If you want to buy a home, you can work with a "buyer's agent." Most states require real estate agents to disclose to consumers who they represent. Sometimes an agent will represent the buyer and the seller. A buyer who elects this situation should receive full disclosure on representation. In some states, dual agency affects the real estate professional's fiduciary responsibilities to the seller. The real estate agent you choose should fully disclose how they work with individuals and the options available to you.
Keep in mind that real estate laws differ from state to state and even from locale to locale. For more in-depth answers, talk with a knowledgeable real estate professional and ask about local practices. Be sure you understand and are comfortable with the services of the real estate agent you engage.
Hot, Normal, and Cold Real Estate Markets
Hot Market - This is an extremely competitive market, one that is advantageous to the seller. Sometimes, homes will sell as soon as they are listed or even before homes are listed. Typically, during a hot market, multiple offers will be made on each home and more often than not, homes will sell for more than their asking price. It is even more crucial to be prepared and to be ready as a buyer when the market is hot. It can be easy to get caught up in the bid for a home, but if you are prepared (pre-approved, solid in price range, realistic about your needs), it is easier to remain focused on your housing needs and price range.
Normal Market - In a normal market, there is fairly a large number of homes available and an average number of buyers. This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on their home, but he or she may not be desperate to sell either. Again, it is the buyer's responsibility to be prepared. During a normal market, the chances to negotiate are higher than in a hot market. As a buyer, you can expect to make offers at lower than the asking price and negotiate a price at least somewhat less than what the sellers are asking.
Cold Market - In a cold market, houses may be listed for more than a year and the prices of houses listed may drop considerably. This market is advantageous to the buyer. As a buyer, you have the time to make an offer that works to your best interest. It is not uncommon to low-ball and to find that sellers are accommodating to meet your needs. Keep in mind that even though this market is a great time for buyers, you do not want to lose your dream home by being unrealistic. Your goal is to get the your dream home at the best possible price.
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