Tag Archives: Selling Your Home

Do You trust Your Real Estate Agent

Real Estate AgentMost real estate agents are honest and ethical and this post is certainly not a slight against real estate agents. However we recently came across a situation that we wanted to pass along to our readers that really suggests that all consumers should pay attention to and avoid if possible. In our opinion it borders on the less than ethical side of the business, although we cannot and are not suggesting that it is illegal by any means. We are just not sure that the agent does not have the best interests of the seller in mind. We would appreciate your opinion on this situation.

Offer to Purchase by Real Estate Agent

A friend of ours is selling their condo through a real estate agent. The market is slow and their unit has been up for sale for some time. Their agent has suggested they spend some money on upgrades to make their unit more attractive to potential buyers.  Many buyers are looking for everything to be already completed so that they do not have to do any work at all to the unit when they move in.

If it does not sell in a few months she will buy it from them. Oh, and she is suggesting they lower the price. She is suggesting $20,000 in upgrades and lowering the price by $20,000 which is a net hit in the wallet of $40,000. Pretty steep in our opinion, and also a good deal for the real estate agent as well. She gets the property at a lower price and with many of the updates already completed which makes it easier to sell in the long run!

Does this sound suspicious? The agent cannot lose, if she sells the unit she gets the commission. If she buys the unit she gets the unit at a reduced price, it is upgraded and makes money. She also gets the commission when she eventually sells the unit.

Long Term Real Estate Prices

Real estate prices are on their way up in this area and over the next 6 months they are expected to increase by as much as 20% which is substantial. All the agent has to do is hold on to the property for a few months and she may make a 20% profit!

Would you take her deal? We don’t think they should! We think they should find another agent or take it off the market. Housing prices in the area are expected to increase by 20% this year. Who is making money on this deal? What do you think?

Everyone in situations like this must think for themselves. It is a good idea to look for advice from experts. However you really need to understand what the motivation is for each expert. Weigh that against the advice you are getting from them. If you are desperate, then maybe you want to take the deal. The deal closes and gives you the money you need from the sale of your property.

Sell your home fast for top dollar

Sell your home fast for top dollarSell your home fast for top dollar. Selling your home is one of the most important steps in your life. This nine steps system will give you the tools you need to maximize your profits, maintain control, and reduce the stress that comes with the home selling process;

Know why you’re selling and keep it to yourself. The reasons behind your decision to sell, affect everything from setting a price to deciding how much time and money to invest in getting her home ready for sale. What’s more important to you; the money you walk away with, or the length of time you’ve your property is on the market or both? Different goals will dictate different strategies.

However, don’t reveal your motivation to anyone else or they may use it against you at the negotiating table. When asked, simply say that your housing needs have changed.

Do your homework before setting a price.

Settling on it offering price shouldn’t be done lightly. Once you set your price, you’ve told the buyers the absolute maximum they have to pay for your home, but pricing to high is as dangerous as pricing too low. Remember that the average buyer is looking at multiple homes at the same time they’re considering yours. This means that they have a basis of comparison, and if your home doesn’t compare favorably with others in the price range you said, you will be taken seriously by prospects or agents. As a result your home will sit on the market for a long time and, knowing this, new buyers on the market will think that there must be something wrong with your home.

Do your homework. Find out what homes in your own and similar neighborhoods have sold for in the past 3 to 6 months, and research what current homes are listed for. That certainly help prospective buyers will assess the work of your home.

Find a good real estate agent to represent your needs.

Nearly 3/4 of homeowners claim they wouldn’t use the same real estate agent who sold their last home. Dissatisfaction boils down to poor communication, which results in not enough feedback, lower pricing and strained relations. Picking the right agent is one of those critical issues that can cost or save you thousands of dollars. It is important to find out what unique plan And programs and agent has a place to make sure that your home stands out.

Maximize your homes sales potential.

Each year, corporate North America spends billions of product packaging design. Appearance is critical, and it would be foolish to ignore this when selling your home.

You may not be able to change your Holmes location or foreplay, but you can do a lot to improve its appearance. The look and feel of your home generates a great emotional response that any other factor. Before showings clean like you’ve never cleaned before. Pick up, straightened, uncluttered, scrub, scour and dust. Fix everything, the matter how insignificant it may appear. Present your home to get a wow response from prospective buyers.

Allow the buyers to imagine themselves living in your home.

The decision to buy a home is based on emotion, not logic. Prospective buyers want to try on your home just like they wanted a new suit of clothing. If you follow them around pointing out improvements, or if you’re decorous so different that it’s difficult for a buyer to stripping away in his or her mind, you make it difficult for them to feel comfortable enough to imagine themselves an owner.

Make it easy for prospects to get information on your home.

You may be surprised to know that the two marketing tools that most agents used to sell homes are actually not very effective at all. In fact, less than 3% of people purchase their home as a result of calling to classified ad, and less than 1% of homes are sold at an open house.

Furthermore, the prospects calling for information on your home probably value their time as much as you do. The last thing they want to be subjected to is either a game of telephone tag with an agent, or an unwanted sales pitch. Make sure the ad your agent places for your home is attached to a 24 hour pre-recorded hotline with the specified telephone number for your home which gives buyers access to detailed information about your property day or night seven days a week, without having to talk to anyone. It’s been proven that three times as many buyers call for information on your home under the system. And remember, the more buyers you have competing for your home the better, because it sets up an auction like atmosphere that puts you in the driver seat.

Sell your home fast for top dollar – Know your buyer.

In the negotiation process, your objective is to control the pace set the duration. What is our buyers motivation? Does she or he need to move quickly? Does she or he have enough money to pay you your asking price? Knowing this information gives you the upper hand in the negotiation because you know how far you can push to get what you want.

Make sure the contract is complete.

For your part as a seller, make sure you disclose everything. Smart sellers proactively go above and beyond legal requirements to disclose all known defects to their buyers, in writing. If the buyer knows about a problem he or she cannot come back with a lawsuit later on.

Make sure all terms, costs and responsibilities are spelled out in the contract of sale, and resist the temptation to diverge from the contract. For example, if the buyer request to move in prior to closing, just say no. Now is not the time to take any chances of the deal falling through.

Don’t move out before you sell.

Studies have shown that it is more difficult to sell a home that is vacant. Because it looks forlorn, forgotten, simply not appealing. You could even cost you thousands. If you move, you’re also telling buyers that you have a new home. It sends a message to buyers that are probably highly motivated to sell fast. This, of course, will give them the advantage at the negotiating table.

For more posts about selling real estate, click here.

The seven deadly mistakes most homesellers make

seven deadly mistakes most homesellers makeThe seven deadly mistakes most homesellers make. Our daughter and son in-law are in the process of selling their home. We thought it would be interesting to look at what the right things are to do to sell  a home. What the wrong things are about selling a home. We came across this list of mistakes that many people make when they decide to sell. They may be useful and it would be interesting to examine them in some detail. If you are planning to sell a home in the near future it may be worth a read. Avoiding these issues may help you sell your home more quickly. It may even help you sell for a higher price which is always interesting to many people.

Seven Deadly Mistakes Most Homesellers Make

Here are the seven deadly sins. We will discuss each in more detail.

  • Failing to analyze why they are selling.
  • Not preparing their home for the buyers eye.
  • Pricing their homes incorrectly.
  • Selling too hard during showings.
  • Signing a long-term listing agreement without the written performance guarantee.
  • Making it difficult for buyers to get information on their homes.
  • Failing to obtain a pre-approved mortgage for ones next home.

Failing to analyze why they are selling

Knowing why you are selling will lead to making many right decisions vs. wrong decisions during the sale process. It will also help avoiding self sabotage of the sale process. For example someone who is transferred is a pretty clear cut reason for moving. While moving to find a larger home in a better location can be a little more fuzzy especially if one partner is not fully committed to the move.

Not preparing their home for the buyers eye

Clutter and too much personalization distracts the potential buyer from visualizing what their furniture and knickknacks would look like in your home. If they begin visualizing there is definite interest which may lead to an offer. In addition most people do want a home that is move in ready and does not need a lot of renovations or maintenance before they move in or major repairs. Get your home ready before you put it up for sale.

Pricing their homes incorrectly

Pricing a home is always tricky.  Too low means it will sell fast, but you may leave money on the table. Priced too high and it may not sell at all. Motivated sellers who have been transferred are some times urged by their real estate agents to sell quickly by lowering the price. Beware of agents who will guarantee the sale by buying it from you if it does not sell within a specified time frame. You can be sure that the price they will pay you is below market value.

Selling too hard during showings

Potential buyers need time to explore you home and visualize what their furniture etc will look like in your home. They also will visualize what it would be like living in that home, the neighbor hood etc. Pushing too hard will distract them, however knowing when to push a little bit and knowing when to back off is something that many agents learn over time and people who are more observant or are in sales.

Signing a long-term listing agreement without the written performance guarantee

Avoid this like the plague. Agents need to be motivated to perform just like everyone else and if there is a chance that they will lose the listing to another agent, they will work much harder to show your home and to sell it through advertising etc. Keep your listing arrangement to a maximum of three months and avoid automatic renewals.

Making it difficult for buyers to get information on their homes

This is a large purchase for most buyers, for some it is the largest purchase they will ever make. They will want to know all kinds of details and the motivated seller will have all of this information readily available. This could include all of the basics about the home as well as dates when the roof was replaced, the furnace, the hot water heater, the air conditioning,  the square footage, the taxes, the cost to heat and cool the place etc. make it easy for the buyer to get interested in your home.

Failing to obtain a pre-approved mortgage for ones next home

Obtaining approval takes time and if you are in a hurry you may want to take this step of being pre-approved for a mortgage. Also if you are moving and planning to move into a larger home, you may get a nasty surprise if your mortgage approval gets bogged down because you cannot get approval for the size of mortgage you need due to credit issues etc.

We hope this list helps both buyers and sellers alike and let us know your comments and any additional suggestions that might make sense to be included in this list of seven mistakes that home sellers make.