Tag Archives: pricing a house

What Sellers Wish Buyers Knew Before Submitting an Offer

With property selling at lightening speed, sellers are in the position where they can review multiple offers. However, not all offers are created equal and some are down right off. Here are 4 things sellers hope buyers know when submitting an offer.

1- Nitpicking and nickel-and-diming will not get you a discount.

Pointing out every little stain and out-dated design will not have the seller agree to a discounted price. Sellers and seller’s agents know the difference between cosmetic issues and major concerns, and they (should) price the home accordingly. If you want to offer a certain price based on what you are going to have to do to the home, fine, but if it’s significantly less than asking and what you need to do is cosmetic, it will not be considered a serious offer by the seller. Even if you come back with a more reasonable offer, (and the property is still available) the seller may have taken your original offer personally and may decide not to work with you.

2- Giving a sad story with a sloppy offer will not impress or move a seller.

I have suggested to my buyers to write a brief letter about themselves and why they want to buy this particular property. This is a good idea when the sellers have multiple offers and the property was the seller’s home rather than a new construction from a developer. The letter gives the seller a chance to identify with you and in the best case scenario allows the seller to see you are in the same position they were in when they bought this home.

However, if your offer is incomplete (missing pre-approval letter, offer not signed, no deposit check, etc.) and you have a letter saying how you would rather be homeless than live in any other home than theirs, it could raise a red flag to the sellers and they may not want to deal with you.

Tips for Buyers from Sellers3- Making everything easy for the seller will make everything easy for the buyer.

First, have all your the paperwork signed, complete, and organized. Not every agent types the offer to purchase paperwork, which is fine as long as the offer is written clean and legible. Second, know what your timeline is but also be flexible to what the seller’s timeline is. Many sellers want to sell as soon as possible, so consider having your offer with accelerated closing dates. This will also give sellers more confidence your offer will make it to closing. Of course, paying cash will bring the most comfort, but if the buyer can have an inspection in two days, sign purchase and sale within a week, and close in 30 days, the seller may find those terms more comforting than a cash offer at a lower price.

4- Mind your manners.

Asking for a seller to fix something or give credit toward fixing something is not uncommon. Little issues are almost always found during an inspection. But do not demand to have the something done that doesn’t need to be fixed. If there is an issue, politeness and rationality goes a long way. Even beginning a request by stating, “I understand that I may asking this too late but…” or “Thank you for considering” will help your cause. As always “Please” and “Thank You” goes a long way.

5-Choose your agent wisely.

From beginning your search to closing your transaction, your agent is there with you at every step acting in your best interest. Whether you are selling a home or buying a home, your agent should be acting professionally, responsibility, and constantly communicating with you. If you are putting in an offer to purchase, your agent should make sure you have all the paperwork to sign, have the dates clear, and go over everything to make sure you know what you are offering. I have written this many times, but it bears repeating, buying property and selling property is emotional. Anything that involves egos, memory, and money will be emotional, real estate transactions involve all of these with multiple parties. As your Realtor, it is our job to represent your best interests and keep emotions calm. Many of the tips I’ve written above can and should be explained by your Realtor, so it is very important to work with a Realtor you trust and who will represent you in the best possible light.

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Selling Property: Are You Ready?

I have not made any secret about how great the real estate sales market is behaving right now especially if you are selling. Inventory is low and the properties on the market are getting multiple offers and selling over-asking. It is very exciting to be a seller in this market but only if you are ready to sell. So how do you know if you are ready to sell?

1. You have another place to go.

If you are thinking about selling your property and want to put it on the market to see what you can get, what will you do if you actually get an offer? Do you have another neighborhood to which you want to move? Another state? Are you looking for something bigger? Smaller? You do not necessarily have to have another home in escrow, but if you have already moved on mentally, it will be much easier to move on physically.

2. Your current place is no longer suiting your needs.

Is your one bedroom too small for you and your growing family? Or have all the kids moved out and now your large home is too much work? When you look at your current home and only see how it no longer works for your lifestyle, you are ready to move on.

3. You are receptive to advice.

Whether this is the first home your are selling or your seventh, unless you work full time in real estate, you are not an expert. Three reasons define why properties do not sell today and when you are fighting with your Realtor about any of these, you are fighting the real estate sales market.

  • Are You Ready to Sell Your Property?Price – Realtors have to abide by certain ethical guidelines, so if we are telling you the price is too high, we are not secretly trying to get you to lower the price to fit our buyer’s budget. We have done the research, we have listened to the feedback from the buyers and agents. Pricing is the difference between a sold listing and old listing.
  • Staging - This is your home that you have decorated to your taste that you love, we understand and respect this. But if your taste is preventing any buyer from being able to envision it to their taste, it will not sell. It is always a good idea to visit other listings you are competing against and “borrow” some ideas from the ones that show very well
  • Marketing – This is only as good as the Realtor you use. If you don’t want to be bothered  with what needs to be done to market your home to sell, you may not be ready to sell.

4. Timing makes sense.

Many people have held onto their property as an investment and rented it out instead of selling in a down market. In certain areas, rent is high enough to cover the mortgage and then some. However, being a landlord can be more trouble than it’s worth and with tenant laws continuously evolving (such as Boston’s New Inspection Ordinance), it may be worth it to sell now and move on.

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3 Tips to Overcoming Fear and Panic that Comes with Buying or Selling Real Estate

Congratulations! You have decided to make a major life change. But did you realize every major life decision will be filled with doubt, confusion, and stress? Depending on what stage in life you are in, you may have an idea of what to expect. However, since we are all human, no matter how many times you can go through something, major life changes will take an emotional toll on us all. Here are three ways to at least manage some of the emotional turmoil during a real estate transaction.

1) Know what to expect.

One thing my teammate and I require is a consult before moving forward on any real estate journey. Whether you want to buy a home or sell a home, we insist taking the time to sit down and talk about the real estate market, how it will affect you, and what your expectations and goals are. Having a clear understanding on what you want, what you can expect, and how we can help will relieve a good amount of stress.

2) You are not a passive participant in this process.

About the Make the JumpAlliteration aside, this is a great mantra to repeat to yourself. If you feel stalled in the process, try something different. Buyers, you can search a different area or price range. You don’t have to go higher, you can look lower and consider how you can make renovations. Sellers, you can adjust the price or add incentives. Pricing and staging can have the most effect on how people react to your property. If the property is priced fair for the market and it shows beautifully, get creative! If you are hearing an issue is a lack of parking, offer to pay to rent a parking spot nearby for a year. But if you are not discussing your frustrations with your Realtor or your willingness to be creative, you may continue to feel dis-hearted and discouraged.

3) Be confident in your decision.

There will never be 100% certainty in any decision you make; this is a fact of life we all have to accept. But there is always the best decision to make to help you achieve your goals. No one buys a house to buy a house, a deeper reason is always present. Whether you want to invest in real estate and build wealth, have a home to raise a family near good schools, or have a condo in the city to enjoy the lifestyle, a deeper goal is involved in the purchase. The same is true with selling a home. Once you are clear on the reason you are doing something, the decision becomes a more confident one.

None of these tips are achievable without clear and continuous communication between you and your Realtor and especially you and your partner. A major life change is difficult to go through alone, being open and honest about your wants and needs will only make the process less stressful and more rewarding.

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Pricing a House: The Difference Between Sold Listings and Old Listings

This is a great time to sell with limited inventory on the current sales market and the mortgage rates at all-time lows. In fact, every news outlet is saying how the housing crisis is in remission, so why hasn’t your home sold yet?

Let me give you a frame of reference: if you have had a property on the market for longer than 2 months with no serious interest, your property can be considered stale and will be harder to sell. Keep in mind this is not true for all properties. Certain properties that fit into a niche market (multi-million dollar mansions, horse farms, etc.) or have problems (in areas with lots of construction, awkward layouts, etc.) will take longer to sell than turn-key properties. If your property doesn’t need improvements and is in a sought after location, why didn’t your house sell when it first came on the sales market?

Our society is becoming increasingly visual and tech-savy and people want to see high-quality photographs. Do your listings feature plenty of pictures of the property? Are the pictures high-quality and shot by a professional photographer? Is your listing mobile friendly so buyers look up your listing on their smartphone or tablet? If you answered “yes” to these, then more than likely it’s because the price is too high.

Pricing a house to sell in the current sales marketThere are many reasons a property doesn’t sell but more often than not, not pricing a house to sell in the current market is the factor for a listing to go stale. If you feel this is wrong, let me ask you, did you come up with a price based on the formula: I paid X so many years ago and put in Y so the price should at least be (X+Y)+Z with for inflation and appreciation? It’s an easy formula but it is the wrong way to go about pricing a home. One reason is that your ROI is never equal to 100%. There are several home renovation projects to increase its value, but none of them will give you back exactly what you put in. Another reason this formula is inaccurate is that the market works much differently and a property should be priced to sell for the current market. Worst case scenario is that your area took a hit in the housing crisis and it hasn’t recovered. If you bought it for X at the peak of the market, chances are you are not going to get it all back when you want to sell. Best case scenario, you bought low and held onto the property for years and now you can get much more than what you paid and put in.

“Is my property priced too high?”

If you and your Realtor are doing everything to market your property well, check the sales activity in the local market. Is there a lot of activity? If there is a lot of activity in your sales market but your property has not had any interest, this is a good indication the price is too high. Pricing a home is not a guessing game, have your Realtor provide a comparative market analysis and look at the data. This will show you what similar properties to yours have recently sold for and you will also be able to see how long they were on the market and compare the list price to the sold price.

If you are still saying to yourself that you know your home is worth the price you are asking, let me ask you this: do you really want to sell your home? If your answer is “only if I get the price I want,” you don’t really want to sell and chances are you won’t sell. If your answer is “yes,” then it needs to be priced to sell in the current market. If you want to get the best price, price the home to sell to begin with. This will bring a lot of traffic and interest right away, which is the most critical time for any house on the market. The properties that are getting close to asking or above asking are priced well at the start. If the property is priced too high to begin with, it will sit. To generate renewed interested, you will need to drop the price. Depending on how long you have it on the market and how many price reductions you make, you may end up selling for less than you would have if you had priced it well to begin with. In the meantime you have lost money because of the holding costs incurred through property taxes, maintenance, and mortgage payment.

Pricing a house too high for the current sales market

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Pricing a house to sell in the current sales marketIf this doesn’t move you to reconsider your strategy when pricing a house, see what your asking price gets you in the local market. Are there more bedrooms? New renovations? Landscaped outdoor space? These are what buyers are expecting at this price and if your property falls below their standard, buyers are not going to be interested.

If you are in the market to sell a home or would like to know what your property is worth in the current sales market, contact the Realtors of Matthew and Alisa Group.

Schedule a consultation with a Realtor

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