Want to sell your home fast and for top dollar? Stay away from these seller pitfalls.
Prices are up, interest rates are low. It should be easy to sell your home, right? Under the best conditions, yes, it is. However, some sellers make bad choices that can cost them thousands of dollars, or even cost them the ability to get their home sold at all.
Three common mistakes sellers should avoid.
Selling your home yourself.
“Hey. I can do this myself,” you’re thinking. “Why should I pay all that money to a real estate agent?” Okay. So you plunk a “For Sale By Owner” sign in your yard. Maybe you throw something on Craigslist or other public internet media advertising your home. A few questions for you: How do you know the “buyer” approaching your door is qualified to purchase your home? Better yet, what criteria are you using to determine your home price? Finally, what do you know about title, taxes, escrow, insurance, contingencies, and addendums, just to name a few? Continue reading
Low interest rates and an improving economy does not necessarily mean you can price your home as you choose.
Fair Market Value, or FMV can be quite the moving target, based on continually changing conditions in the real estate marketplace. Like stocks, bonds, and other investment items, real estate falls under that FMV category as well.
So what is “Fair Market Value?” Quite simply, it’s the price that one is willing to pay for an item based on several value conditions. For real estate, it’s location, demographics, size, amenities, and honestly, what other similar properties have sold for.
For example, if you have a 1,500 square foot three bedroom, 2 and a half bath home on a 6,000 square foot lot in Valencia, we’d begin to analyze recent sales of similar homes first in your tract, then perhaps we’d broaden the parameters a bit to see what homes sales were in surrounding neighborhoods for comparison. Continue reading
What happens when you want to buy a home, but you need the proceeds from the sale of your current home to put the deal together?
Let’s say a homeowner who THOUGHT they were perfectly happy in their current home comes across what they feel is their dream home. They want that home, and they feel they need to make an offer as soon as they can. The problem is, they need the proceeds from the sale of their current home to close the deal. The double-whammy to the problem is…they don’t have their current home listed for sale.
This can be an issue if you’ve already found your home of choice. In fact, we would always recommend putting a plan together where you list your home for sale first before you find your “dream home.” Why?
For one thing, many sellers want to be sure that their escrow will close on time…or at least close at all. Their accepting your offer would mean that they have very little control over the time it will take for your home to sell and close escrow. Continue reading
Buyer Beware” does not apply when it comes to real estate!
There’s that little stain on the ceiling in the downstairs bedroom that was caused a few years back when a pipe in the upstairs bathroom leaked. It’s fixed, but still, the stain is there.
The roof looks good, and it only leaks…a little…when it rains really, really hard and for a long time. The last time it leaked was during the big storms we had back in 2005. We sealed the leak, and we don’t think it’s leaked since.
We noticed something weird with some of the rafters in the attic a few months back. A pest control company determined that termites had infested the area. We were able to afford the extermination, but not the repairs for the damage the termites caused. Continue reading
Property owners who “overlook” issues that can affect the sale of their home can have big problems down the road.
A leaky roof. That dryrot just below ground level on one of the posts that holds up your back patio. That un-permitted room addition off of the
These are but a few examples of issues that may affect the sale of your home. Whether they were caused during the time you have owned the home or not, if you are aware of their existence, you must disclose them during the escrow process.
Why disclosure is so important.
It is a requirement that sellers disclose all KNOWN issues that may affect the sale of their property. These issues may affect not only the value of the property, but also its safety and security. That being said, the buyer has the opportunity to hire a professional home inspector during the escrow process to assess any other issues, known or unknown. They also have the right to request any repairs that may arise as a result of the inspection. The seller may accept the request, refuse the request, or come to an agreement with the buyer as to which repairs may be initiated before close of escrow. The buyer also has the right to cancel the transaction prior to the contingency expiration period should an agreement not be reached. Continue reading
It’s still a hot real estate market for sellers, but how realistic are your goals?
We’ve spoken in depth on several occasions about the real estate market rebound. Compared to the chaos of a half decade ago, home owners are once again enjoying rising value and, in many cases, a quick sale.
It’s important as a seller to understand that even in a positive real estate market, the Principle of Value still applies. In some cases, sellers have lost out to really good offers lately because they get greedy about the possibility of making even more money on their home than the market can bear. Yes, it’s one thing to sit back while dozens of simultaneous offers pour in from buyers, but its another to use bad strategies in hopes that you can “cash in” on the market.
The proven real estate selling strategy that works…EVERY TIME!
This is where we get a LOT of resistance from some sellers, but honestly, this strategy DOES work all the time, every time. Our job is to sell your home at the best possible price, right? The best way to do that is to get as many buyers through your door as possible. So what drives buyers? Well, aside from their own wants, needs and desires when it comes to their dream home, they are also driven by price. It’s a natural modern human trait. We all want a great deal. Continue reading
Basketball legend drops price from $29M to $16M and still can’t get it to sell at auction.
Some guys have all the luck. This, combined with incredible skill and talent has made basketball legend Michael Jordan one of the most sought after and marketable
celebrities on the planet. With a net worth estimated at around $650,000,000 (Yes, that’s MILLION), you would think it wouldn’t matter that he has a 56,000 square foot custom mansion outside of Chicago, Illinois just lying around. In 2012, Jordan put the home up for sale with a price tag of $29,000,000, and has since reduced the price a few times, finally settling on $16,000,000 after it failed to find a buyer at an auction in December of last year.
In fact, Jordan no longer lives there, having purchased a smaller home (in comparison) in Charlotte, NC. This move made it easier to be near the Bobcats, a team where he has a majority stake.
A Hard Sell
Aside from the size, Jordan’s home, built in 1995 boasts 9 bedrooms, 15 baths, a full size, regulation basketball court, a state of the art entertainment room, smoking room with full humidifier and air filters, wine room, tennis court, putting green, chipping green, a 14 car garage and…no rear neighbors! The home also sits on 7.39 acres of land.
After failing to secure a buyer, the home was put up for auction held by a company called Concierge Auctions. Buyers had to submit a $250,000 bond before they could qualify to place bids. The home failed to receive bids at the minimum reserve price, and it went unsold at the auction’s conclusion. Continue reading
For Sale By Owner properties average 20% less in price, according to the National Association of Realtors.
A study recently released by the National Association of Realtors (NAR) detailed many statistics about the current real estate market. The 120 page report, titled 2013 Profile of Home Buyers and Sellers covers all facets of the real estate industry. Topics include:
- Characteristics of Home Buyers
- Characteristics of Homes Purchased
- The Home Search Process
- Home Buying & Real Estate Professionals
- Financing The Home Purchase
- Home Sellers and Their Selling Experience
- Home Selling and Real Estate Professionals
- For Sale By Owner (FSBO) Sellers
One interesting statistic from the study is one that affects anyone considering selling their home. That is that, on average, selling your home on your own nets you less money. Continue reading
Even in a seller’s market, some home owners make big mistakes when they decide to list their home. Here’s what NOT to do!
In our last article, we talked about the good possibility that the real estate crisis may finally be over. Good news for home sellers, right? We’ve also seen such a hot market that even most of our own listings barely made it into the Multiple Listing Service before a slew of offers came in. In some cases, homes were sold even before we had the chance to market them. Again, good news, right?
However, this doesn’t mean that agents and homeowners haven’t faced their challenges. Some homes actually do still sit on the market without any offers. There are several reasons for this, and we’ll address the top ones here.
Seller mistake number one: Pricing your home too high.
Yes, even in today’s market, we see sellers do this (or at least try). Homeowners unfamiliar with how the real estate market works tend to believe that, since prices are going up, that if they price their home at the top of the market, or even above, that they’ll end up receiving top dollar for their home. In fact, the opposite is true. Real estate is not unlike the stock market, with fair market value being the rule of the day. Prices will only sell for what the market will bear, and there are many factors that go into this. First and foremost, competition. Continue reading