Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensure that you get the highest price possible.
1. Price it a LITTLE LOW
This may seem counterintuitive. However, let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).
Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price, but will instead have multiple buyers fighting with each other over the house.
Realtor.com gives this advice:
“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”
2. Use a Real Estate Professional
This, too, may seem counterintuitive. The seller may think they would make more money if they didn’t have to pay a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional.
A new study by Collateral Analytics, reveals that FSBOs don’t actually save any money, and in some cases may be costing themselves more, by not listing with an agent.
In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:
“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”
The results of the study showed that the differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%. Sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.
Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.
Re-Blog of a really great article
It seems the transition is complete. In a recent survey by Redfin, 82% of agents described now as a “good time to sell,” while only 57% described now as “a good time to buy.”
Let’s back up to the third quarter of 2012, when 54% of the agents polled considered it a good time to sell, but 75% called it a good time to buy.
This complete ‘180’ in the housing markets can only be backed by dangerously low inventory, prices that continue to appreciate and low interest rates pushing buyers to buy now.
I recently wrote about a house my husband and I put an offer in on. I felt fairly confident about our offer and we’d managed to tour the house less than 24 hours after it had gone on the market, putting our offer in the same day. Unfortunately, within a day, four other offers were put in and the seller chose a higher one.
As a buyer, this is discouraging. It’s frustrating to know there is zero ‘wiggle room’ when it comes to negotiations and often homes are selling above the appraisal value.
On the other hand, I can only imagine sellers are riding high and feeling good, as multiple offers pour in on their homes within a day. In fact, 98% of agents surveyed by Redfin agreed that sellers are becoming more confident about the market.
With that in mind, 83% of agents agree that buyers also are becoming more confident, so it’s not totally a lost cause for those of us trying to find a home.
Working in this industry, I can’t tell you how many people I’ve heard say “the time to buy is now.” Well, as a buyer (often frustrated with this sellers’ market), I can tell you that the time to sell is now as well.
Humor Alert! – 7 Real Estate Riders that Should Exist, but Don’t
1. By Appointment Only (And Good Luck With That)
Those ‘By Appointment Only’ riders don’t seem to be too terrible at a glance, and they’re not in most cases – especially when they give the sellers the chance to scrape up the oatmeal their toddler just plastered on the wall, clean up their bedrooms and vacate the premises so the buyer and the property can have some alone time.
But then there are those sellers who need 4 days’ notice, can only show their home on Wednesdays between 1 and 1:20 and Thursday after 10:15 pm, required 3 reminder calls and, because they refuse to put a lockbox on the house, want the buyer’s broker to knock three times and give a whippoorwill call before entering. This is the group whose listed homes should bear this fantasy sign rider.
2. Flexible Zoning: Lawn Parking Allowed
Flexibly zoned neighborhoods are fantastic for those who want to build another unit or have a little urban farm. The challenge with flexible zoning is that your neighbors’ “dream” uses are also allowed – and they might not exactly line up with your client’s idea of an idyllic, semi-rural setting.
Some of the other sorts of folks attracted to flexible zoning find it suits them because they need space for their 20 ‘vintage’ automobiles – space to stores them for the 10 years until they retire and have time to fix them up. That might become a challenge with the makeshift chop shop spot is the neighbors’ front yard.
3. Wildly Overpriced
4. Looooooooooong Sale
Part of buyers’ outrage at the concept of a short sale is the paradoxical, misleading nature of the transactional name. Nothing about a short sale is short, except the amount of proceeds the seller will have to payoff their mortgage. I wonder if buyers would be a little less outraged if we flipped the script and went in the direction of extreme truth in advertising? Maybe some bold listing agent will one day change all their short sale riders to be upfront about the “loooooooong” length of the escrow that is part of the trade off for low, short sale pricing.
5. Unnatural Lighting Galore
Ever watch a house hunting reality show on TV? Seems like every buyer’s dream is a home with more windows than walls, the better to let in beams of natural light. Unfortunately, in some eras, windows were costly and thought to make a home harder to cool and heat. Additionally, homes with additions or much reconfiguring done over the years can end up with bathrooms and kitchens that lack windows and even ventilation.
In homes like these, where fluorescents rule the day, the more accurate way to describe the situation might be ‘Unnatural Lighting Galore.’
6. Down and Going Neighborhood
“Up-and-coming neighborhood.” Is that label a blessing or a curse? That’s situation-specific, as it does hold the promise of a value-priced home that will be worth more in the future, based on the hope that the area is already on track to overcome its stigma. But the truth is, sometimes areas don’t really come “up” for a decade or two after people start calling it ‘up and coming.’ Other times, up and coming neighborhood is really just a pretext for charging more than the comparables – much more, in some cases.
But what about those neighborhoods that used to be nice, but have taken a hit by the recession, or the construction of a big mega-mart smack in the heart of the area? Sure would be nice (albeit unlikely) if sellers would flag this for buyers, with one of these riders.
7. Basement Flooding → Underground Pool!
Just last week I showed a home which had been the subject of multiple pre-listing inspections. The reports mentioned standing water in the crawl space, and I was on a mission to see precisely what the inspectors meant. I searched high and low and couldn’t find a door to the basement, but finally managed to use my fingernails to pry up a floorboard hatch in the entryway coat closet. And lo and behold, I found myself face to face with a few feet of standing water – in California, mind you. Weeks after the last rain.
To be a great agent for a long time, you’ve got to be an optimist. But there is a line beyond which looking on the bright side can border on flirting with delusion. As I was discussing the property and our viewing with my clients, there was nothing else to do to but to have fun with the situation, so I mentioned the underground pool – laughs were had, all around. Here’s to truth-telling and staying on the right side of the optimism/delusion line, my friends!
Read the full original article from Trulia Blog here- http://pro.truliablog.com/just-for-fun/7-real-estate-riders-that-should-exist-but-dont/?ecampaign=anews&eurl=pro.truliablog.com%2Fjust-for-fun%2F7-real-estate-riders-that-should-exist-but-dont
Buying your first house is a big deal. Of course it’s also a little intimidating. If you’re like most people, you’ll probably need some guidance along the way — and you’ll definitely want an agent looking out for your greatest interests. I would be honored to assist you with purchasing your first house.
Not everyone with a real estate license is equally qualified to help YOU find your first home. My dedication to my clients is what sets me apart.
“Garry was as dedicated as I was toward resolving whatever issues came up. He made my problems his own and worked with me until they were resolved. I experience this attitude/ethic very rarely and am always thankful to see that it’s still out there. His availability and consistency in problem solving went far in reducing the stress that I was under. I never had a doubt regarding any aspect of his performance. Without exception, every task they undertook, whether at my request or their volunteering, was carried out promptly and properly.”
Boulder, July 2012
“Garry listened to what I wanted in a house and didn’t try to push me towards a specific thing that he “thought” I would like or try to push me higher then I wanted to go price wise. He worked very hard to help me find exactly the house I was looking for at a price I was comfortable with.”
Longmont, March 2012
“Professionalism was always applied, whether it was in person, on the phone, in a message left or an email sent. The information provided regarding properties we were interested in was beyond that which was expected and sincerely appreciated.”
Thornton, April 2012
“Garry was very professional and helpful. He also marketed the house very well-we feel it’s one of the reasons it sold so quickly.”
Longmont, May 2012
The condition and appearance of your home are critical factors in getting the best price for your home. As part of my listing services, I will pay for a professional stager to walk through your home with you and advise you of what you can do to properly stage your home most effectively. Some areas are much more important and more likely to pay off than others! Often, the buyer is motivated by emotional responses as much or more than financial issues. There are usually things I can point out to you that are easy and inexpensive, yet go a long way toward triggering those “buy” emotions.
As your agent, I’ll negotiate furiously on your behalf throughout the entire process to ensure that your best interests are protected. Real estate negotiations and contracts can be intimidating in their complexity. Most people have almost no experience in these negotiations. After all, how often do you buy or sell a new house? As a top real estate professional, getting you the best terms and prices in all negotiations is simply part of my job.
It’s a tool used by house flippers all across the nation. Stagers know its power. Real estate agents push its importance. What is this not-so-well-kept secret of real estate? A kitchen can sell a house.
Our belief – one of our CORE beliefs – is that consumers are best served through proper representation from a licensed professional.
For most, buying or selling a home is an infrequent transaction with enormous financial and emotional considerations.
It’s stressful, emotionally-charged and high-stakes. Having a real estate professional central to the process of pricing, listing, selling and purchasing a home is important; real estate is not entertainment, and it’s not a game – bad data, inaccurate “value estimates,” and inflating inventory levels on websites creates confusion about what’s really happening in a market.
We understand that serious consumers want the real facts about a market. And we understand that these consumers also want to find a professional who can clearly articulate what these facts mean to their personal situation.
Connecting with a local real estate professional, a professional that’s immersed in local trends. Well versed in neighborhood nuances. Someone who can take the science of real data and apply it to the art of local real estate.
For sellers, this professional is someone who can navigate changing markets deftly and help price a home appropriately. Someone that helps ensure a smooth ride all the way from contract acceptance to settlement.
For buyers, this professional is a sounding board during their search, and their advocate during contract negotiations all the way to the first day in a new home.
Ultimately, there is a lot more than search to consider throughout the course of a transaction.
Pricing. Negotiations. Offers. Counter-Offers. Contracts the size of novellas. Addenda. Inspections. Appraisals. Financing. Contingencies. Walkthroughs. Punch Lists. The list goes on and on and on. Navigating all of this takes skill and determination, and we are the licensed real estate professionals. Just the folks that can help.
After all, it’s what we do for a living, 24-7, 365.
This article comes to us from the REALTOR.com Lockbox blog. You can view the original article at Lockbox.REALTOR.com.
From a local market perspective, the 2012 ActiveRain real estate survey shows markets where real estate agents are significantly more optimistic and others in which real estate agents are concerned about 2012. Based on our survey data, the ActiveRain real estate network has created a real estate confidence index and ranked the top real estate markets.
Below is a list of the TOP 10 and BOTTOM 10 real estate markets ranked by real estate agent confidence.
With low real estate values, low interest rates and a recovering economy, American real estate agents believe that 2012 is a great time to purchase both single family and multi-family rental properties. Real estate agents feel that single family homes and luxury homes represent great investment opportunities. What did real estate agents think are the worst opportunities in the 2012 real estate market? Due to the glut of inventory in the real estate market due to short-sales and foreclosures, new construction condominiums, new construction single family homes, and land for construction were rated as the worst investment opportunities.