The Top 10 Most
Common Mistakes Buyers/Sellers Make
Mistake #1: Not knowing how
much they can afford before they make an offer. The easiest way to avoid this
mistake is to get pre-approved for a mortgage by a lender so you know in
advance exactly how much you can afford.
Mistake #2: Not realizing in
advance who the real estate agent represents. Most people think that the agent
they are working with is working for them. But unless they are working as your
buyer representative, they represent the seller.
Mistake #3: Not
realizing that the wrong mortgage can cost thousands of dollars in needless
interest and taxes. Check with your accountant before you make your final
decision on which mortgage you are going to choose. Your CPA will be able to
tell you what the long-term effects will be on your income.
Mistake #4:
Not discovering hidden defects before they buy a home. One of the most
expensive mistakes is also one of the easiest to avoid, by having a
professional pre-purchase home inspection.
Mistake #5: Not knowing how
much credit can affect their ability to buy or refinance a home. Before you buy
a home, many of the clouds on your credit history can be cleared up or even
eliminated. Your mortgage professional can help you review and prepare your
credit file in advance.
Mistake #6: Basing their asking price on needs
or emotion rather than market value. Many times, people make their pricing
decisions based on how much they paid or invested into their home. This can be
an expensive mistake. Overpriced homes take longer to sell and eventually net
the seller less money. Consult with a professional real estate agent. They can
assist you in pricing your home correctly from the beginning.
Mistake
#7: Failing to "showcase" their home. First impressions are the most important.
Experience shows that for every $100 in repairs that your home needs, a buyer
will deduct $300-$500 from their offer. Thoroughly clean and prepare your home
before you put it on the market if you want top dollar.
Mistake #8:
Signing a listing contract with no way out. Most traditional real estate agents
want you to sign a listing contract with no way out. When you list you home
with Best Local Agent Team, you can cancel your listing agreement at any time,
no questions asked.
Mistake #9: Choosing the wrong agent or choosing
them for the wrong reasons. Many homeowners list their home with the agent who
works for the biggest company. You need to choose the agent with the best
marketing plan and track record to sell your home.
Mistake #10: Not
knowing all of their legal rights and obligations. Real estate law is complex.
The contract that you will sign when selling your home is legally binding.
Small items that are neglected in a contract can wind up costing you thousands
of dollars. You need to consult a knowledgeable, professional who understands
the ins and outs of a real estate transaction.
Six Ways To Beat
The Stress Of Buying A Home
DEATH, DIVORCE & MOVING are the
three most stressful experiences in life. There are two very different kinds of
needs that people have while moving. First there are the transactional needs,
like finding the home that is just right for them, finding a seller who is
realistic, negotiating the price, filling out the paperwork, handling the
escrow, and arranging for the move. But there are also emotional needs that are
involved when moving, and this is where the biggest stress comes in. Any
competent agent will handle the transactional needs for you, but if your
emotional needs are unfulfilled, you'll be frustrated and may not act in your
own best interests. The ideal real estate agent is one, who is competent with
paperwork and numbers, but can also guide, direct, and counsel you through the
emotional ups and downs of moving.
Here are the
six best ways I have found to beat the stress:
1. Begin with the
end in mind. Have an ultimate scenario of where you're trying to be. What will
life be like when you get there? How will it be better than where you are now?
Dwell on that picture and write it out, fill up at least a page about how it
feels in the new place. This is imperative. Having the goal in front of you at
all times energizes you to achieve it, in spite of setbacks and frustrations.
Emotions will run high and you need an anchor. You too must focus on that
future goal when anxiety threatens to get the better of you.
2. Be
flexible. In your monetary calculations, overestimate by a thousand dollars. In
this market, anything can happen between contract acceptance and closing. It
could be the inspections reveal areas of concern that the seller is unwilling
to fix or the repair costs are higher than the amount limited in the contract.
Or the interest rate changes which affects the necessary down payment and
closing costs you will need to come up with. As your real estate agent, I will
strive to tie up loose ends as quickly as possible, but remember there is no
perfect world. Most buyers feel a bit overwhelmed when taking on a new mortgage
and the responsibilities of a new home. I have seen many buyers get angry when
it seems like the cost just keeps going up. Anger is caused when reality
doesn't match up with the expectations you had in your mind. So if you
anticipate this happening in advance, you won't get angry. In fact, it'll
probably go better than you expected.
3. Trust in the process. There's
just so much to do, it's easy to panic. You wonder if it will ever work out. In
fact, when we bought our house, we couldn't eat for a day, we felt sick to our
stomachs! You think you're taking a big chance, but the truth is you're giving
yourself a big chance. Even though you can't see every step of the way, as you
move towards your goals, the way opens up. I know that you haven't moved in a
long time and it's a major upheaval in your life. But I have been there many
times before, and I will be looking out for you. Trust that I know the way to
get you there.
4. Get knowledge. One thing you'll probably feel during
this transition time is being out of control. It feels like everyone else has
taken over your life. The seller, your lender, the appraiser, the inspectors,
they all have the power to say yes or no to your moving plans. I will try our
best to let you know ahead of time what your expenses will be, and what the
unknowns are. I will tie down the loose ends as soon as possible. I will try to
get your loan approved within a reasonable time frame. I will educate you as
best I can and let you in "behind the scenes" so you won't ever feel out of
control.
5. What is your option? When things don't go as smoothly as
you had hoped, don't let emotions take over. Always ask yourself "What is my
option?" because there are always options. Let's pretend the lender takes
longer than agreed upon to get your loan. He keeps asking you for more and more
documentation until it feels like he also needs to know how many gold fillings
you have in your mouth! You feel upset because you wanted to feel certain about
the move and now you still have to live with the uncertainty. You want to say
"Forget it, I'm fed up with this!" But what is your option? Find a new lender
and start the process over again? That may take weeks, plus you will have to
provide all the paperwork all over again. If the lender is trying his best, it
may be better to give him a few more days. Each case is unique, but when
setbacks occur we've found that asking yourself this question helps to defuse
the situation and restore clear headed thinking.
6. Seek entertainment.
When there's nothing you can do about the situation, take your mind off of it
altogether. Maybe you expected loan approval on Friday, but now it won't come
until Monday. You hate being in limbo and feeling powerless. So do something
else entirely, maybe something where you aren't powerless. Take a hike, play
tennis, get out of town for the day, watch a movie, pray, or pour yourself into
your work. Whatever diversion works best for you, now would be a good time to
engage in it. Just forget the situation and refuse to listen to those
irritating thoughts when they come into your head. Think about something else
instead and just take it one day at a time.
7 Reasons To Own Your Own Home
You've
probably seen lots of financial arguments about why you should own your own
home rather than rent. This includes budgeting (no rent increases) and the tax
savings you'll most likely have. Now I'm going to give you some reasons you
probably haven't heard.
#1:Freedom to pursue other goals in life once
the major goal of home ownership is achieved. Strange as it sounds, many of our
first-time buyers have told us that once they bought the house, other things in
their life started to fall into place. It's as if not owning took so much of
their mental energy that other goals were not worked on until that big goal was
reached. So buy a home and get on with your life!
#2: A greater sense
of belonging to the community. Once you own a home, you feel more attached to
the city in which you live. You're more interested in what happens in town, to
the roads, schools, and shopping areas. Some people even become involved in
local politics.
#3: A commitment to something, a sense of stability.
Home ownership is an anchor, something that cannot be pulled out from under
you. You'll never get a notice that you have to move. Your kids will never have
to change schools. It gives you freedom to plan years ahead.
#4: You
can change things, a feeling of being in control. It's your home. You can add
to it, remodel it, and redo the landscaping…do whatever projects you want.
You have a feeling of being in control of something in your life. At work we
don't always have control of what happens, but your home is your castle and you
have dominion over it. You can see what you're building take shape before your
eyes.
#5: More control over the children than in an apartment complex
In a neighborhood, kids usually play in the yards or go to friend's houses a
few doors away. Our clients have told us that in an apartment complex they
never knew where the kids were. They could be in any of hundreds of apartments,
doing who knows what. In a home you get to know the neighbors and watch out for
each other's kids.
#6: Children do better in school and feel more
secure. This one surprised us, but buyers have reported to us that their kids
calmed down in school after they bought a house. We don't know why, but it
seems to work that way. We remember a single mom watching her son play in the
yard, making steps in the slope and building things. She didn't have to tell
him to leave everything alone, like she did at the apartment complex. I guess
kids feel the same need for control we adults do.
#7: Time and money
saved by not going to the Laundromat. A small point, but if you have kids, you
know the value of this one. You gain a whole evening a week when you buy a
house! The wash gets done in between other things, or while you're at work.
What would you do with the extra evening you'll have? How about going out for
dessert with your spouse with all those quarters?
How To Stop Wasting Money On Rent And Own A
Home Instead
Buying a home can seem like a frightening
prospect. Whether it's your first home, or your fifth, so much is at stake -
your savings, your credit rating, your financial freedom. It's difficult to get
up the courage to sign on the dotted line, even if you want that home very,
very badly. How do you determine whether or not the purchase of a home makes
sense? What's the easiest way to examine the whole picture, from emotions to
economics? I suggest that you read this entire report before you go house
hunting. You'll learn how to separate whims from true needs. You'll discover
how to prepare a game plan for your real estate venture, how to research
effectively, choose wisely, finance appropriately and survive the whole
procedure with your smile intact.
Seven Steps For Success: 1)
Establish your needs and wants. 2) Determine how much you can afford. 3) Get
pre-qualified or pre-approved by a Lender. 4) Find a good real estate agent to
help you. 5) Find a home that meets your needs. 6) Make an offer to buy a home.
7) Save as much as you can on the purchase.
A Lender can let you know
what specific loan programs would be best for you. They can also help you
understand what it takes to qualify for the loan that you want. By taking a
look at your financial situation and looking at your credit history, a Lender
can usually give you a good idea if you can qualify for the loan that you want.
Many Lenders call this "Pre-qualifying a Buyer." If you would like to be
certain that you could be approved for a loan, you may want to ask to be
preapproved. In the approval process, all of your documentation is completed
and submitted to an underwriter.
The pre-approval you get back is an
actual loan commitment from a Lender. This means that you definitely qualify
for a loan. Talk to your Lender about the costs and time involved, as they are
different for each Lender. The next step is finding a home that also qualifies
for the loan. By the time you've done your homework and completed the
suggestions in this report, you will have an excellent overview of how to find
and buy your dream home. And you'll have plenty of confidence to back up your
decision to buy that special home, too.
Step One: Establish Your Needs
And Wants Begin your search for a perfect home by making a careful assessment
of the kind of a home you need and want. I recommend that you take the time to
do this in writing. Take time, right now, to be as specific as you can about
your particular requirements.
Step Two: Determine How Much You Can
Afford Set up a budget for yourself. Decide how much you can really afford to
invest monthly for your house payment. Be realistic here. Most Lenders want
your payment to be no more than 28% of your total monthly income.
Step
Three: Get Pre-qualified Or Pre-approved By A Lender You can save yourself a
lot of time and heartache by meeting with a Lender before you start your search
for a home.
Step Four: Find A Good Real Estate Agent To Help You You
can learn a lot about an agent by just letting them "agent talk" to you about
how they help buyers. Within a few minutes, you will probably be able to
determine if their style is compatible with yours.
Questions for
agents: 1. Are you knowledgeable about the area of town and price range that we
are interested in? (Some agents specialize in only one area or one price
range.) 2. Do you have the time to work with us? (This is especially important
if you're on a tight deadline.) What procedure will the agent follow in working
with you? How often will they update you with new property listings? 3. Can you
represent me as my buyer's broker? Ask as many questions as you can upfront. By
finding a good agent, you will save yourself huge amounts of time and effort.
Step Five: Find A Home That Meets Your Needs
Five Tips for
Successful House Hunting: 1) Keep an organized record of all your research
data. Write down comments about the homes that you see. Keep track of your
likes and dislikes. 2) Make sure your agent is aware of your time schedule and
expectations. Do you like to look at one or two homes in a session? Four?
Eight? Discuss this with your agent. 3) Tell your agent about any homes you see
that interest you and that you'd like to know more about. This includes homes
you've "discovered" as you've explored the area yourself, or those advertised
in the newspaper. 4) If you like to spend time driving around by yourself
looking at homes, ask your agent for a list of drive-bys - homes to consider
first from the outside. Your agent can make appointments later to show you the
interior of those that appeal to you. 5) Express your likes and dislikes to
your agent after you look at a home. Honest communication is essential. Many
buyers are shy and afraid to tell an agent what they really think of a house.
They think the agent might take it personally. Remember, the homes don't belong
to the agent! You must be straightforward about your likes and dislikes in
order for the agent to do the best job for you.
Step Six: Make An
Offer To Buy A Home Your real estate agent can help you make an offer to buy
the home that you want. It is important to know beforehand whom your agent
represents. Some agents work only for the seller. In this case the agent may
not be able to advise you what a fair offer to make is. By looking at what
homes are selling for in the area and how long they are taking to sell, you
should be able to get a good idea of value.
Step Seven: Save As Much
As You Can On The Purchase There are only two major investments to consider
when buying a home. These are the initial investment, which includes down
payment and closing costs, and the monthly payment, which includes principal,
interest, taxes and insurance.
Here are six ways to save on your
initial investment: 1) Choose a low down payment loan. You do not necessarily
have to put 20% or even 10% down. You can pay 5% or even 3% down on some loans.
2) Have someone give you money to pay closing costs. A blood relative, church
or nonprofit organization can give you money for closing costs. 3) Ask the
seller to pay some of your closing costs as part of your offer. Sellers are
usually allowed to contribute to a buyer's closing costs. 4) Do not pay too
much insurance at closing. Some tenders want 14 months hazard insurance paid at
closing. Others want 15 months. What happens to that extra money? It sits in
your escrow account until you sell the house. It is safe here, but it often
earns no interest. 5) Shop around for your home insurance. A little shopping
can save you money. 6) You can deduct money paid for discount points from your
gross income before computing your tax. See a CPA for more information.
Here are four ways to keep you monthly payments low: 1) Get a loan
that doesn't have monthly mortgage insurance premiums. You may be able to
reduce or eliminate them by paying a little more at closing. By putting 20% or
more down, you can eliminate them entirely. 2) Take advantage of rate lock
programs that are currently available. You can lock in a low interest rate
30-45 days in advance. 3) Remember that interest payments on a primary
residential mortgage are fully deductible in most circumstances. Your property
taxes may also be deductible. Tax rates definitely favor homeowners. 4) Choose
an adjustable rate mortgage. Adjustable rate mortgages (or ARMs) can be up to
3% lower than fixed rates. Now that you have finished this report, it's time to
go out and find the home of your dreams!
Make sure that you cover all
of the steps in this report in the proper order. See a Lender first. He or she
will help you decide how much of a loan you qualify for. Then find a good agent
to work with. If you don't have one, ask your friends and work associates for a
referral.
How To Save Thousands Of Dollars
When Buying A Home
Have You Ever Seen A For-Sale Sign In Front
Of An Interesting Home And Wondered About The Asking Price? If you're like most
people thinking about buying a home, you see ads about homes - and signs in
front of homes - that catch your eye. Perhaps, like thousands of home buyers,
you hesitate to call the real estate company on the "for sale" sign because you
don't want real estate agents calling you at all hours of the day and night. I
don't blame you. Well, now there's a way to obtain all of the information on
homes for sale in a prompt, courteous manner, with absolutely no cost or
obligation -whatsoever.
Instant Facts - By Fax, Mail, Or E-Mail! I
will find the listing (no matter which company has it listed) that same day on
my Multiple Listing Service Computers. I will print a detailed listing sheet
with all the details for you. Most people like me to send it to them via e-mail
that same day so that you have all the information right away - with no hassle,
no cost, and no obligation. I offer this service in the hope that when you find
the perfect home that you will use me to help you get the home at thousands of
dollars below the list price. (But please note that, unlike many real estate
salespeople, I will not be calling you or bugging you.) I feel that true real
estate service begins first with furnishing you with the factual information
that you need. Any information that you want. When you want it. Unfiltered and
unscreened. Without cost or obligation.
Sit Back. Relax. I will Put
Our Powerful Computers To Work For You! If you're checking out the real estate
market by calling on real estate for-sale ads or driving around and calling on
signs, you will probably miss out on the perfect home because many listed homes
don't have for-sale signs, many brokers never have open houses, and most
"discount" real estate brokers never even advertise their listings.
Free Personalized Home Searches I am hooked up to the Multiple Listing
Service(MLS) computers. At your request, I will be happy to program our
computers to search homes for sale that meet your exact specifications. Just
tell me exactly what type of house you want - the price, the school district,
the style, and whatever else you find important. I will put my powerful
computers to work for you, download all the information on the homes that meet
your exact specifications, and deliver all of the information to you a
professional, courteous fashion. There is never any obligation on your part.
Our state-of-the-art computers have direct access to MLS mainframe computers.
You'll often know about new listings the day they are entered into the MLS
computers. This is often 4 to 7 days before other buyers know about these homes
- and a week or more before these homes are advertised or held open. No matter
what style of home you want, if it's out there, our computers will find it. Do
you want two or three baths? A 2 car garage? How about a fireplace? An acre of
land in the country? If you specify it, and it's out there, you can have that
information the same day it appears on the computers - even before many real
estate agents are aware of it!
You Decide Which Homes You Want To See
- And When You Want To See Them! After you see exactly what homes are available
for sale, there may be some that prove interesting. If you would like to see
them inside, just let me know. I will make arrangements for you to tour any
home, anywhere, at your convenience, no matter which real estate company has
its sign in the yard. Before, during, and after the showing of a home, I
promise to never make you feel under any obligation. It will be a pleasant,
guilt free, learning experience. That's the way I do business. If you would
like to make an offer on one of the homes you see, I will help you prepare the
offer and negotiate in your best interests as a buyer's agent - all for no cost
to you.
My Goal: To Provide You With More Service Than You Expect!
Again, all this costs you nothing. I am paid by the seller if you buy a home.
And if you look at homes for a while and decide not to buy, that's just fine.
I am here for one reason - to help you find the perfect home at the
very best price and terms.
How Sellers
Price Their Homes
How Much Should I Offer?
We're often
asked by our clients, "How much under the listing price should we offer?" This
is an excellent question. The answer is difficult. The main reason I emphasize
the education phase of looking at homes is because that is the best way for you
to know value. When you review and study 40-60 (or more!) listings, then drive
by 10-20 and look at 5-10, you will recognize the "Hot Listings." You'll also
recognize the "dogs." Sellers price their homes differently for 4 basic
reasons:
1. Ridiculously Overpriced! These sellers have listened to a
real estate agent over-inflate the value of their home in an effort to obtain a
listing. There is a natural tendency on the part of sellers to list with the
real estate agent who gives them the highest promise. There is a tendency by
some real estate agents to give the seller a high "value" in an effort to
obtain the listing. These homes can be 10-20% overpriced. These sellers may
need a "dose of reality" for a few months before they begin to realize that
their home is way overpriced as compared to others in the area. The longer an
overpriced home is for sale, the more likely we can get the seller to face
reality and sell at a fair price.
2. A Little Overpriced! These
sellers fall into 2 categories: o Those that feel their home are worth every
penny of their asking price. o Those that want to leave a little "negotiating"
room. These homes can be 4-10% overpriced. Perhaps 75% of all homes for sale
are priced in this range.
3. Priced At Fair Market Value These sellers
have carefully and realistically studied other homes for sale. They have priced
their homes very competitively. These homes usually sell within 4 weeks at or
very near the listed price.
4. Priced Below Fair Market Value These
homes are priced below value. Perhaps the seller wants a fast sale. Perhaps the
real estate agent recommended too low of a price. These homes usually sell
within 7-10 days, at or above the listed price. There are usually competing
offers.
Bank Protection
Even by carefully studying homes for
sale, it's difficult to establish Fair Market Value. If you're obtaining a new
home loan, you'll be protected by the Professional Bank Appraisal. Home lenders
want to make sure that you don't over-pay for a home. If the home does not meet
value in the eyes of the bank appraiser, you'll be informed.
Ten Simple Steps to Take to Ensure Your Home Sells at Top
Dollar
1. Emotional appeal. Make sure your home look, feel and
smell its best. You're competing with 900 to 1,200 other homes for sale. Buyers
buy on emotion… let your home be the cleanest, freshest and cheeriest, and
you'll have a much faster sale… at a higher price.
2. Read my
"How to Show Your Home" flyer very carefully. If your home is logically a good
value, but a buyer doesn't feel warm and emotionally attracted to the home, it
will not sell. Buyers buy on emotion, not logic. You'll want lots of people to
say or think, "Wow! This is nice! I would like to live here!"
3. Lots
of light. For maximum effect, turn every light on, even on a sunny day. Open
all window shades. Clean your draperies and curtains. Make sure your windows
are spotlessly clean. Let the sun in and keep those lights on. Leaving all your
lights on for two hours costs only 23 cents, and makes your home look larger
and more spacious.
4. Weekly open houses. You can't expect to sell a
house quickly at the top price unless you get lots of buyers inside to see it.
There are other homes competing with yours for attention. Your home must be
exposed to buyers regularly and repeatedly to get a fast sale at the full
price. Weekly home showings are the key to the success of my Hotline Tour of
Homes, giving my clients fast, full-priced sales.
5. Constant
exposure. Your home won't sell unless buyers know about it. To get top dollar,
be sure to have your home repeatedly exposed to qualified, ready-to-buy buyers.
Some brokers charge you a discount commission, and then don't advertise your
home. This is a mistake. The $500 or $1,000 you save in commission is more than
offset by a sale price of $4,000 or $10,000 less than what you would have
received if your home had been properly marketed. Remember, buyers can't know
about your home unless you or your buyer has a marketing plan to ensure that
your home is brought to the attention of home buyers.
6.
Non-traditional advertising. Many first-time home buyers don't even know they
can afford a home. They don't know that owning a home costs less than renting.
They think that they need 20% for a down payment, plus closing costs! If your
home is in the first-time homebuyer price range, a substantial portion of your
marketing dollars should be aimed directly at first-time homebuyers. This means
advertising and marketing in areas other than the "Homes for Sale" classifieds
or Sunday Open Houses in the local newspaper.
7. Education. First-time
homebuyers are more likely to pay top dollar for your home. If your home is in
the first-time homebuyer price range, make sure that your marketing program
shows first-time buyers the benefits of home ownership and how affordable your
home is. Design a marketing plan to get first-time home buyers to see the
inside of your home.
8. Multiple signs. Many home buyers don't even
see traditional "for sale" signs, because they aren't actively thinking of
buying. They often don't realize that they can afford a much nicer home. The
strategy of an additional sign in the yard shatters the "advertising protection
armor" that every consumer wears. Ten years of testing by U.S. Home and Realty
has proven that a second bright-yellow sign, hand-lettered, will result in more
inquiries, more showings, a quicker sale, and a 3% to 5% higher price for your
home.
9. Aggressive Target Marketing. Lots of buyers will buy your
home for less than it's worth. The secret in getting top dollar is to find a
buyer who is perfectly "matched" to your home. Right now, there are at least
ten buyers who would love to own your home, can afford it, and would pay a fair
asking price… if only they knew about it! Some of these buyers may not
even be thinking of buying yet, but if they knew about your home would love it!
It takes a lot more than just a sign in the yard and an ad in the paper to
market a home effectively. Aggressive target marketing will find those buyers!
10. Create urgency. The Rule of Full Price states that if a buyer
feels the asking price is fair, and has sufficient sense of urgency, he will
pay the full asking price. Example: My weekly showings of my listings to more
than one buyer at a time create a feeling of urgency. Prospective buyers feel
an "auction effect" because of other buyers showing interest in your home at
the same time. I have found that the more buyers I can show your home to at the
very same time, the higher the feeling of urgency. The auction effect causes
people to become more excited and enthused about your home, thereby creating a
sense of competition and urgency, which results in full price sales for most of
our clients.
Preparing and Showing Your
Home
Don't Panic: You come first. This is your home, you have
your Life to live, do the best you can and then don't worry.
First
Impressions: An inviting exterior insures inspection of the interior. Keep your
lawn trimmed and edged, flowerbeds cultivated, the yard free and clear of
refuse. Winter lawn, especially in front, is a big asset.
Decorate For
A Quick Sale: Faded walls and worn woodwork reduce desire. Do not tell the
prospect how the place can be made to look, show them by making it look great.
A quicker sale at a higher price will result.
A Clean Home Is A Happy
Home: Bright, cheery windows and unmarred walls will assist your sale.
Fix That Faucet: Dripping water discolors the enamel and calls attention to
faulty plumbing.
A Day with the Carpenter: Loose doorknobs, sticking
drawers and warped Cabinet doors are noticed by the prospect. Have them fixed.
Closet illusions: Clothes properly hung, shoes, hats and other
articles neatly placed, will make your closets appear adequate. Pack and store
excess items.
For The Rest of Your Life: Bedrooms are always important
features. Arrange them to feel spacious and clean.
The Brighter The
Better: Illumination is a welcome sign. For after-dark inspections, turn on
your lights from the front porch in and throughout. The prospect will feel a
glowing warmth; otherwise impossible to attain. Also turn on lights in the
daytime for rooms that are not so bright.
Three's A Crowd: When a
Realtor® and the prospect arrive you should greet them courteously, and
then disappear. Children and pets should be kept clear. Don't volunteer any
comment unless asked. Remember the prospect is there to vie~ the home.
Shut off the Television: The radio or TV can distract from your home. Let the
agent and the buyer talk free of any disturbances.
Love Me, Love My
Dog: This does not apply in house selling. Keep pets out of the way, preferably
out of the house.
Be Aware of Odors: People will linger in a fresh,
pleasant smelling home. Stale air, or bad odors, make them want to get out and
can ruin the sale.
Be It Ever So Humble: Please don't apologize for
appearance of your home. After all, it is lived in. Let the agent answer any
objections that are raised.
A Word to the Wise: Do not discuss price,
terms, possession or other factors with the customers. Refer them to us. As a
seller, most anything you say could compromise your position. As a third party,
a Realtor® can better bring the negotiation to a favorable conclusion
placed, will make your closets appear adequate. Pack and store excess items.
Dear To Her Heart Is The Kitchen: Colorful curtains in harmony with
the floor and Counter tops add appeal for the lady of the house. Keep oven
clean - it often gets inspected.
Check And Re-Check Your Bathroom:
Bright and clean bathrooms sell many homes. Keep toilet lids down.
Seven Common Mistakes to Avoid
1.
FAILING TO HAVE A PLAN Evaluate your current situation. Why are you planning to
sell your house? Are you moving up to a larger house? Do you need the money out
of this house to make your move? One thing you need to do is to get a realistic
idea of exactly how much cash you will be getting out of this house when it
sells. Are you going to move locally? What mortgage amount can you really
afford with payments including higher taxes and insurance? Can you afford a
house significantly better than the one you already have. Are you moving down
to a smaller property? What are you going to do with your furniture and other
things that you have collected over the years? Will be comfortable in a smaller
place? Are you retiring? Moving locally or out of state? Are you going into a
retirement community? What activities do you expect to be involved in after
working days are over? Are you moving out of the area because of employment?
How fast do you have to be in your new location? Are housing costs higher
there, or lower? Is your employer helping with sales costs, moving, costs,
temporary housing, etc? How does your family feel about the move? One reluctant
teenager can seriously undermine the entire process. Are you the executor of an
estate? What is the time schedule for your plan?
2. FAILING TO TAKE A
HARD, SERIOUS LOOK AT THE CONDITION OF THE HOUSE. Houses wear, paint gets dull
and shabby, landscaping can become overgrown, and roofs deteriorate Often times
as we live in a house we "live with" minor inconveniences that we intend to fix
"Some day." It is not unusual to not notice conditions that are glaringly
obvious to a buyer. How old is your roof? An average lifespan is 25 years. How
old is your furnace? An average lifespan is 15 years. How old is your hot water
heater? An average lifespan is 10 years. Is there asbestos insulation covering
your beat pipes in the basement? Do you have a septic system? Has it been
pumped and fully inspected within the last two years? Is there any obvious
water damage from old leaks? Have you had any improvements done to the house
without permits and inspections? Are your hardwood floors scuffed and
scratched? Are your carpets worn? Any of these conditions that are noticed by
the buyer may make him bypass your house and buy another. Or any found during
the home inspection can cause the buyer to cancel the sale. It is best to have
someone with fresh eyes take a hard critical look at your house. A good
Realtor® will do this and make his or her recommendations.
3.
FAILING TO PROPERLY "SCREEN" YOUR REALTOR®. It's likely that you don't
often interview people. Yet, in order to find the Realtor® who is right for
you, you may need to interview several. The quality of your home buying
experience is dependent upon your skill at selecting the best-qualified person.
It's interesting that in the real estate business someone with many
successfully closed transactions usually costs the same as someone who is
inexperienced. Bringing that experience to bear on your transaction could mean
a better price at the negotiating table, selling in less time, and reducing the
number of hassles. Your agent should be a skilled, win-win negotiator!
4. FAILING TO GET PRE-QUALIFIED FOR THE HOME LOAN ON THE NEXT HOUSE. Don't
waste hours searching for a home that is not in your price range! Save time and
money by pre-qualifying for a loan. Before you go shopping for a home, you need
to determine how much you can afford. Once you are pre-qualified for a
mortgage, you will know your buying power-you will save time by looking only in
your price range. This process is simple. A lender will ask you basic questions
concerning your history, run a credit report, and determine your buying power.
You can even get pre-approved for a loan! Imagine for a moment that when you
and your Realtor® initially draft your offer for the home you select, you
are already approved for the loan- IN ADVANCE. No stress, no worrying about
qualifying, no concern whatsoever about your ability to qualify would stand
between you and the home of your dreams. In today's market, a pre-approval can
be a powerful negotiating tool. Many owners will not accept an offer without a
pre-approval. If there is more than one offer on the same house, the
pre-approved buyer has the advantage. You deserve peace of mind and negotiating
power by getting an approved loan before you make an offer.
5. PRICING
THE HOUSE INCORRECTLY. Whether a house is priced too high or too low, it can
cost you thousands of dollars. Obviously a house priced too low will net you
less cash at closing. However, a house priced too high will take longer to
sell. The homebuyer today is an educated consumer. On average a buyer will see
18 homes before purchasing. The house that sells today is the best one on the
market in the price range. The sale of a house is a competitive enterprise. Ask
your Realtor® to show you what homes you are competing against. Some people
will say, "I can always lower my price later." Both Realtors and buyers are
looking for new listings. Rarely do they notice a reduced price. The saddest
sign anyone can put on a sign rider is "Price Reduced." That means the house
was not priced right in the first place. The buyers will ask, "If the price was
wrong, what else is wrong?"
6. FAILING TO OBTAIN A HOME INSPECTION
FROM A QUALIFIED INSPECTOR. The job of a professional home inspector is to look
over every major part of a home and write a report that judges the homes
quality and condition. A home inspector reports on the structural and
mechanical condition of the home. A well-qualified inspector who has adhered to
federal licensing standards can spot problems that you might not be able to
see. Expect problems to be clearly explained, repair expenses closely
calculated, maintenance costs estimated, and a written report delivered within
a day or two. Most-contracts are contingent upon the outcome of several
inspections such as: wood-boring insects, excessive amounts of radon gas,
structural soundness, and the condition of the heating, electrical, and
plumbing systems. These problems must be corrected or the buyer has every right
to cancel the contract. Getting an inspection up front can save money by giving
you time to shop for the best repair price instead of being under pressure to
get repairs done immediately.
7. NOT KNOWING YOUR RIGHTS AND
OBLIGATIONS. Real estate law is extensive and complex; the contract for sale
and purchase is a legally binding document. An improperly written contract can
cause the sale to fall through or cost you thousands of dollars for repairs,
inspections, and remedies for title defects. If there are defects in the title,
or if the property is in conflict with local restrictions, you must remedy
them. Some real estate companies require a "Seller's Disclosure" form to be
filled out when the property is listed. An attorney is recommended for all real
estate transactions in New Jersey. However, all attorneys are not real estate
specialists. Your Realtor® should be able to recommend several good
attorneys. It is your Realtors job to know the laws governing real estate
transactions. They are involved in an on- going training program to keep up to
date with these laws. You deserve to have an agent who is not only
knowledgeable about the transaction but is also willing to educate you
throughout the process so you will feel more comfortable.
How To Get Top Dollar In Any Market
The best chance for selling your property is within the first
seven weeks. Studies show that the longer a property stays on the market, the
less the seller will net. Listed below are the five main factors to
accomplishing this goal. * Pricing Factor
It is very important to price
your property at a competitive market value right when you list it. The market
is so competitive that even over-pricing by a few thousand dollars could mean
that your house will not sell. It's interesting, but your first offer is
usually your best offer. Here are reasons for pricing your property at the
market value right from the start in order to net you the most amount of money
in the shortest amount of time.
An overpriced home: * Minimizes offers
* Lowers showings * Lowers agent response * Limits financing * Limits qualified
buyers * Nets less for the seller
80% of the marketing is done when we
decide on what price to list your home. If you were unwilling to list at
current market value, you would be better off not putting it on the market at
this time.
* Clean Factor Most people are turned off by even the
smallest amount of uncleanness or odor when buying a home. Sellers lose
thousands of dollars because they do not adequately clean. If your house is
squeaky clean, you will be able to sell your home faster and net hundreds, if
not thousands of dollars more. If you are planning on moving, why not get rid
of that old junk now so that your house will appear larger? Make more space.
Odors must be eliminated especially if you have dogs, cats, or young children
in diapers or if you are a smoker. You may not notice the smell, but the buyers
do! Most agents have a difficult time communicating to their sellers about
odor. If you employ an agent to get the most amount of money for you, please
don't take offense if he must confront you about odor problems.
*
Access Factor Top selling agents will not show your home if both the key and
access are not readily available. They do not have time to run around town all
day picking up and dropping off keys. They want to sell homes! The greatest way
to show a house is to have a key! When your home is being shown, please do the
following: * Keep all lights on * Keep all drapes and shutters open * Keep all
doors unlocked * Leave soft music playing * Take a short walk with your
children and pets * Let the buyer be at ease and let the agents do their job *
Paint & Carpet Factor
Paint is your best improvement investment for
getting a greater return on your money. Paint makes the whole house smell clean
and neat. If your house has chipped paint, exposed wood, or the paint looks
faded, it is time to paint. If your carpet is worn, dirty, outdated, or an
unusual color, you may need to seriously consider replacing it. Many houses do
not sell because of this problem. Don't think that buyers have more money than
you have to replace carpet. They don't. They simply buy elsewhere.
*
Front Yard Factor Your front yard immediately reflects the inside condition of
your house to the buyer. People enjoy their yards. Make certain that the trees
are trimmed so the house can be seen from the street. Have the grass mowed,
trimmed and edged. Walkways should be swept. Clean away debris. Remove parked
cars. This all adds to curb appeal. If a buyer doesn't like the outside, they
may not stop to see the inside.
Mistakes Home Sellers Make
Mistake #1. Using a real estate agent instead of a Realtor® When you're
looking for help buying or selling property, it's important to remember that
the terms "real estate agent" and "Realtor® " are not synonymous.
Realtor® s can provide an extra level of service, and to be a Realtor®
you must be a member of the National Association of Realtors (NAR). The
equivalent organization in Canada is the Canadian Real Estate Association
(CREA). Both are non-profit trade organizations that promote real estate
information, education and professional standards. The National Association of
Realtors also has earned a strong reputation for actively championing private
property rights and working to make home ownership affordable and accessible.
The NAR and CREA members adhere to a strict code of ethics founded on the
principle of providing fair and honest service to all consumers. Realtor®
business practices are monitored at local board levels. Arbitration and
disciplinary systems are in place to address complaints from the public or
board members. This local monitoring keeps Realtors directly accountable to the
individual consumers they serve and therefore the consumer is more likely to
find better service and accountability by using a Realtor®.
Mistake #2. Complacent marketing when selling a home When selling your home
there are no guarantees that the ultimate buyer of your home will have simply
walked through the front door. In many cases you may have to bring your home to
the buyer. Effective marketing will help ensure that your property receives
maximum exposure to attract a ready, willing and able buyer in the shortest
period of time. Ask your Realtor® to list for you all of the ways he/she
intends to market your home and on what time-line. Also, be sure to ask about
the home being advertised on the Internet.
Mistake #3. Taking for
granted the "curb appeal" of your home When you're preparing your house for
sale, remember the importance of first impressions. A buyer's first impression
can make or break whether they even want to go inside for a look. It is
estimated that more than half of all houses are sold before the buyers even get
out of their cars. With that in mind, be sure to stand outside of your home and
take a realistic "fresh look" and then ask yourself what can be done to make
the "curb appeal" improve. Also ask your Realtor's opinion as to how to improve
the curb appeal. It could make a huge difference in your final sales price.
Mistake #4. Forgetting about health and safety issues Be upfront and
disclose to your Realtor® any problems with the property. The problems are
going to be discovered anyway. A decade ago, health and safety issues were
rarely a part of the typical real estate transaction. Today, however, it's
common for inspections relating to health, safety, and even environmental
concerns to be a part of most sales contracts. Moreover, in many states, the
seller must disclose to the buyer any knowledge of existing property problems.
In many cases, these issues have been or can be factored into the home's
listing price.
Mistake #5. Forgetting what you would want if you were
the buyer of your home Remember that although people can be different in
personality, they tend to be the same when it comes to expectations at someone
else's expense. In other words, a prospective buyer would probably like to see
a perfect home from top to bottom, inside and out, when it comes to your home.
Try to do as many of the following items as possible to improve the likelihood
of an expedient home sale:
On the outside 1) Sweep front walkway. 2)
Remove newspapers, bikes and toys. 3) Park extra cars away from the property.
4) Trim back the shrubs. 5) Apply fresh, clean paint throughout. 6) Clean
windows and window coverings throughout. 7) Keep plumbing and all appliances in
working order. 8) Maintain all sealant (window, tub, shower, sink, etc.) in
good condition. 9) Make sure roof and gutters are clean and in good condition.
10) Mow the lawn frequently and plant flowers. 11) Keep pet areas clean. On the
inside 1) The kitchen and bathroom should shine. 2) Quick once-over with the
vacuum; carpets should be clean. 3) Place fresh flowers in the main rooms. 4)
Put dishes away, unless setting a formal display for decoration. 5) Make all
beds and put all clothes away. 6) Open drapes and turn on lights for a brighter
feel. 7) Straighten closets. 8) Put toys away. 9) Turn off television. 10) Play
soft music on the radio/stereo. 11) Keep pets out of the way and pet areas
clean and odor-free. 12) Secure jewelry, cash, prescription medication and
other valuables. 13) Enhance the spaciousness of each room.
Mistake
#6. Thinking you need to be in the home to explain things to a prospective
buyer You will be better served if you allow your Realtor® to do their job
without you there. Most potential buyers usually feel more comfortable if they
can speak freely to the real estate professional without the owners being
present. If people unaccompanied by an agent request to see your property, you
should refer them to your real estate professional for an appointment.
Mistake #7. Not knowing how to price your home to sell Perhaps the most
challenging aspect of selling a home is listing it at the correct price. It's
one of several areas where the assistance of a skilled real estate agent can
more than pays for itself. Listing the home too high can be as bad as too low.
If the listing price is too high, you'll miss out on a percentage of buyers
looking in the price range where your home should be. This is the flaw in
thinking that you'll always have the opportunity to accept a lower offer.
Chances are the offers won't even come in, because the buyers who would be most
interested in your home have been scared off by the price and aren't even
taking the time to look. By the time the price is corrected, you've already
lost exposure to a large group of potential buyers. The listing price becomes
even trickier to set when prices are quickly rising or falling. It's critical
to be aware of where and how fast the market is moving - both when setting the
price and when negotiating an offer. Again, an experienced, well-trained agent
is always in touch with market trends - often even to a greater extent than
appraisers, who typically focus on what a property is worth if sold as-is,
right now.
Mistake #8. Not planning your move earlier enough Many
sellers simply don't plan their move early enough and then feel totally
overwhelmed at the time of moving out of the house. If you are able to move at
any time of the year, don't wait until summer, the peak-moving season. Consider
also that the first and last few days of the month are extra busy. If you plan
to sell your house, get it on the market as soon as possible. Keep a record of
all expenses related to the move, some of which may be tax deductible. Fill out
the Personal Household Inventory for each room. This is important for
establishing the amount of declared valuation for the shipment and as a
permanent inventory for insurance purposes. List, as nearly as possible, the
year of purchase and original cost of each item. Attach any invoices or records
of purchase to the completed inventory. Prepare a separate high-value inventory
if the shipment will contain articles of "extraordinary" value. The following
list includes items that might fall into this category:
* Antiques *
Art Collections * Cameras * China Collections * Computer Equipment * Crystal *
Figurines * Firearms * Jewelry * Manuscripts * Oriental Rugs * Silver * Stones
Or Gems * Tapestries * TVs Or Stereos
Also, unless you have been given
a binding moving estimate where a firm cost is established in advance, the
exact cost of a move cannot be determined until after the shipment has been
loaded on the van and weighed. The weight on which charges are based is
calculated by weighing the van before and after loading. The total cost of the
move will include transportation charges, any charges for declared valuation,
plus charges for any extra services performed at your request. All of these
charges are based on tariff rate schedules.
Mistake #9. Using a
"convenient" Realtor® rather than using an experienced Realtor® When
working with a real estate agent, it's critical that you have full confidence
in that agent's experience and education. A skilled, knowledgeable agent should
be able to explain to you exactly why your home needs to be priced at a certain
level - compared to recent listings and sales of homes similar to yours.
Experienced agents also know exactly what the current pool of buyers is looking
for in relation to particular styles and price ranges of properties. A skilled
agent can recommend changes that will enhance the salability of your home, thus
increasing the price - and/or decreasing the length of time before a sale.
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