MAKE THE SMART MOVE

HGTV's Biggest Real Estate Mistakes

2008-04-18T18:40:49Z

I wanted to share this information to those who were unable to see the broadcast this week on HGTV of the biggest real estate mistakes. These are in order starting with the biggest mistake a seller or buyer can make. I know most of these are common sense to Realtors, but I thought it might be helpful to provide these to clients.

25 Biggest Real Estate Mistakes

1. Not Staging or Showcasing your home to its full potential
You want to stage your home to attract buyers. This means that just because you like the decor or the paint color on the walls that a buyer will. A seller who stages a home or makes changes will usually get around 7% more for their home and it is on the market fewer days. As a seller you really want to maximize the selling points of your home.

2. Setting The Sale Price Too High

You want to set your sales price compared with homes that are comparable to yours that have sold. If a home is priced too high then it will stay on the market longer and then you will have to reduce the price which leads sellers to believe that something is wrong with the home.

3. Buying What You Want Instead of What You Need

As a buyer you need to look at what you live in now and make a list of the needs you want in a new house. People buy what they desire instead of what they actually need in a home. Always remember that you can always upgrade in the future especially if buying your first home.

4. Overlooking the Hidden Costs

Buyers sometimes overlook the hidden costs of owning their own home. A buyer should always get an idea of what the monthly utility costs are, HOA fees if any, property taxes, how much it will cost to furnish the home, and any maintenance that needs to be done.

5. Not Getting an Inspection

Make sure that you get an inspector that you trust. Usually it is best to get an inspector based on a referral either from an agent or someone else you know. An inspector can see things that a naked eye is unable to see.

6. Falling for the First Property You See

As a buyer do not let emotions get in the way. It is always good to look at several properties before you make a huge purchase.

7. Skippping Pre-approval for the Loan

This will help a buyer know exactly the price range they should be looking in. If you start your search in a price range you cannot afford and then go back down to a price range you can afford you may be disappointed when you compare the homes in the different price ranges.

8. Renovating Before Selling

This means do not do any major renovating such as adding a room onto your home. This can take longer than you thought originally and costs more that you expected. It is better to do minor renovating especially working on your curb appeal. Minor renovations tend to have a higher return when you go to sell.

9. Not Being Proactive at Closing

You should be able to get what is called the HUD 1 statement at least 24 hours before your closing so that you can look over the documents before you get to the closing table. The closing process can be stressful and exciting all at the same time so just be aware that even closing attorneys can make mistakes.

10. Visiting a Home Only Once

If you have only seen a home once and are already set to buy, you should probably go and preview the property again. You will notice more things about a home the second time around. It is also a good idea to drive around a neighborhood at different times during the day and to do a mock drive to and from work so you can see what your commute will be like on a daily basis.

11. Not Setting a Realistic Budget

You do not want to be house broke. Always start at the bottom of your budget when house hunting and then work your way up if you have to. As a buyer you need to take into consideration your monthly spending habits as well.

12. Buying the Most Expensive Home in the Neighborhood

Home is an investment and if you already paid more than your neighbors for a home then you may not get the return you expect when you go to sell your home.

13. Not Realizing Time and Effort in a FSBO

People who try to sell their home on their own have no idea what it entails. Most people assume that an agent puts a sign in the yard and waits around for the home to sell. If you are wanting to list your home on your own you need to educate yourself, do your homework, and be involved. You will need to know what comparable homes in the neighborhood sold for and know how to market your home. You may need to contact a lawyer as well just in case. When you try to sell your own home you are not marketing your home to the fullest. An individual is not able to put his her home on MLS, FMLS, or Realtor.com. Realtors have more marketing opportunities.

14. Picking the Wrong Agent

A buyer and seller should treat trying to find an agent like a job interview. You may need to meet with the agent to see what type of environment he or she works in. Open houses are a great way to meet agents and look at homes at the same time.

15. Trusting Everything an AD Says

Ads can be mis-leading and again this is why you need an agent to be able to understand the real estate lingo.

16. Buying Without Seeing the Property

Again photos, ads, and videos can be deceiving. There is a thing called photo shop and professional photography that make a home look bigger for example. When you look at a home on the internet you don't get the feel for the home like you do when you see it in person.

17. Remodeling and Not Thinking About Re-sale

Do not go overboard personalizing your home when you remodel. Make sure that when you do remodel that it will be appealing to buyers.

18. Failing to Market Your Home in Several Ways

Make sure if you are working with an agent that he or she is marketing your home in several ways. Creativity really counts. There are many things an agent can add to a listing such as floor plans, aerial shots, sellers disclosures, virtual tours, and even a video of your neighborhood.

19. Treating Real Estate Like the Stock Market

Real Estate moves a lot slower than the stock market. This is especially important for people wanting to flip homes and investors. Just remember that you may be stuck with the debt until you sell the home. It is much better to take a long term approach.

20. Waiting Until Spring to Sell

People are always buying real estate. It truly depends on the circumstances and location of a home. If the home has season amenities those should be emphasized when selling a home. For example, if the home has a pool then Spring time may be a great time to put it on the market or if it is in a ski resort then maybe the best time to put it on the market is in the Winter months.

21. Trying to Make the Hard Sell

The seller should never be there at an open house. It will distract the buyers and make them feel uncomfortable. It is hard to give feedback that is not biased if the sellers are there.

22. Thinking an Auction Automatically Means Good Deal

Educate yourself about the other homes in the neighborhood that have sold. Make sure you are aware if there are any liens on the property, because if you buy the home and there are then you will be responsible to pay those. Be aware that there will not be a home inspection to see if there are any defects.

23. Not Researching the Neighborhood

Location is the most important aspect when buying a home. The location should compliment what you and your family enjoy. Make sure that a home is in the school district you want for your children and one that has good re-sale value. School districts are constantly changing so this is very important.

24. Not Providing Easy Access for Showing Your Home

Make your home available to potential buyers. The best way is to put a lockbox on your door so that agents have easy access to your home. If an agent brings buyers to your neighborhood and you do not have a lockbox or if it is appointment only do you really think your home will get shown? The answer is usually not. Your home sells by having buyers come and preview your home.

25. Buying a Home for its Decor

Always remember that once you buy the home that all the furniture, paintings etc. will be removed. Always think about your lifestyle and what your own personal items will look like in the home. You need to measure the dimensions of the home to make sure everything you have will fit. The key is to see beyond the decorations and focus on floor plan and the square footage.

Do you know any agents who are DECEITFUL?

2008-03-28T10:59:51Z

I am having a problem with an agent who is lying and being deceitful to their clients. Every Tuesday we have what is called a Caravan in which a house that you have listed is held open so that agents from the company can preview the property and give feedback on condition, price, cleanliness, etc. Last week a new agent in our office was holding a house open on Caravan. It was the first meeting that she was introduced to the other agents which makes this even worse. To our surprise when we got to the house she was not there.

After talking to several agents I discovered that she was going around and collecting business cards from other agents desks and vocally expressed that she was going to disperse the cards at the house. This way she didn't have to be there to hold the house open, but the sellers of her listing thought that all the agents had been through the house. This makes me upset for several reasons:

1. She is using other agents to make her clients happy.

2. This is dishonest, disrespectful, and deceitful.

3. It is a reflection of other agents and our company.

4. This agent is one reason why some people think that "Agents are just in it for the money."

5. I don't treat clients this way and I never will. Clients hire you to protect them and to guide them in the right direction not to take advantage of them.

6. I don't want someone like that representing our company name.

This agent is a top producing agent and I can see why if she does this with all of her clients. I am just thinking it is a matter of time before others start to catch on to skeem.

Have you experienced other agents being dishonest and if so please tell me your story? What did you do when you were are of what the agent did was wrong?

What do you think of "Motivated Seller" and "Price Reduction"

2008-03-23T11:09:07Z

I have been noticing that a lot of agents use remarks such as Motivated Seller and Reduced Price. Personally I think that everyone selling their home is probably motivated or it wouldn't be on the market. Secondly, I almost feel like putting these phrases are a disservice to your client. I think this makes it look like the seller is so motivated that they will accept a low ball offer.

I also feel that putting the phrase "Reduced Price" makes people think, gosh there must be something wrong with that home or why hasn't that home sold or that home must have been on the market a long time.

An agent can see if a price has been reduced already. And honestly do you think it makes you sell the home any faster by putting these phrases on listings? I mean a person buys a home because they fall in love with the home and it fits their needs. Unless a home attracts them in the first place, I don't believe "Motivated Seller" or "Reduced Price" will make them buy.

Does anyone else think this way or is it just me? And please tell me if you have a different opinion or see things differently.

Great site to track activity

2008-03-21T19:31:11Z

There is a new website out called Alexa (www.alexa.com). When you get on the site you are able to compare websites to see how many hits per month and see their rankings. I think this is a great tool to see what sites to market yourself as well as homes you have listed. This would be a good way to present your company website in listing presentations if your company gets more hits rather than a company that competes with yours.

So before you spend tons of money on blogs, websites, etc. make sure you check the activity rate of the site. You wouldn't want to join a site with not so many hits. I wrote a blog earlier in the week as well about how printing marketing is becoming more and more obsolete. Try typing in your hometown newspaper against Realtor.com and see what comes up. The statistics are very interesting. I hope you enjoy the site!

What do you give clients for referrals?

2008-03-20T11:38:21Z

In the state of Georgia if you are a REALTOR you are not allowed to give gifts to past clients who refer your name out to people they know. You can, however, give up to 3 gifts to licensees who give you referrals. Is this the case in every state? If so what do you do to show your appreciation to pasts clients or people you know for referring you. I just want to show people I know and past clients to know how much it means to me for them to refer my name out. By thanking them in some way it shows appreciation along with professionalism.

How to get your listing to the top of Realtor.com

2008-03-19T10:24:49Z

Our company has just provided all agents in the company an option to join Realtor.com Showcase. Did you know that 84% of people searching for a home go to Realtor.com first? Basically ads in papers, magazines etc. are becoming more and more obsolete. People searching for homes are going to the internet first and usually end up contacting an agent off of the internet.

Did you know that putting all 25 pictures, virtual tour, and a video puts your listing before all the other listings with fewer pictures, no tour, or video? I think it is great to make a video of the subdivision or complex or even what is surrounding the area. This means that when someone searches in the area of your listing that if you include as much information as possible that your listing will pop up first. This is great information to provide to sellers. This means that if you do have a listing to represent the buyer and to get their home sold, we need to publicize the home as much as possible.

I wonder how many agents actually use Realtor.com and how many actually realize that Real Estate is taking a new route through technology. Using technology to market yourself and to provide optimal service for your clients should be a must in your business.

Re-locating to a new location?

2008-03-17T11:59:17Z

Our company has a re-location department to help people who are moving to a new city and need to find a seasoned agent to help them find a home to rent or buy. This is a free service that is provided and we will help you find a Realtor that will give you information on the city you are moving to as well as show you around. If you know of anyone moving and they need a Realtor please contact me and I will be more than happy to answer any questions you may have.

Why am I on Active Rain

2008-03-17T09:42:54Z

I am on Active Rain to help people in the Atlanta and surrounding areas be able to ask questions and discuss Real

Real Estate issues. This is a great way people can feel comfortable to ask questions and really search for the right

Realtor® to work with. I am here to answer your real estate questions and help you with your real estate needs!