What Every Seller Needs To Know In Today's Real Estate Market

                              What Every Seller Needs To Know In Today's Real Estate Market

                                             

                                                

                                            The real estate agent is only the messenger

                                                   

Sellers please take several deep breaths before shutting down on any offer in today's real estate market.

• The agent YOU selected to represent you is doing the job you hired them to do with your best     interest at heart when presenting an offer.  You selected the agent based on a thoughtful process     now give them a chance to do their job and help you sell the house.
  

• The agent has a fiduciary responsibility to present all offers.  It is perfectly normal to be mad when  someone writes a low offer on your home.  Just remember NOT to take your anger out on the person trying to help you get the home sold.  Discuss the offer from a business like standpoint trying to come to a happy medium where both parties are agreeable with the outcome. 
  

• Please remember....it is not the agents fault that buyers are making a low offers.  The media is fueling the fire with economic status reports and human nature dictates people trying to get a "deal."  You are in charge of your hand so use it wisely to create and sign a counter proposal that all might live with.
  

• The market is what it is and the agent cannot change the current conditions.  Put your feet in the buyers shoes.  If you were purchasing a home in today's real estate economy, ask yourself what kind of offers would you make?

•  In today's market being creative with counter proposals could help complete your sale. Do you really need all the equity out of your home or are you in a position to carry back with the proper credit checks and legal advise.  Is there a possibility of the buyer renting before the completion of the sale.  Would renting the property help your cash flow situation?  Working with your agent to come up with alternatives to create a sale is why you hired them. Let them do their job in helping you.
  

•  Remember, your first offer is almost always your best offer. Try and put something together.
  

•  When you walk away from any offer, you just bought your own house back. The buyer did not complete the sale and you still own the property so you in effect bought your house again.
  

• Take the emotions out of the sale.  This is a business transaction and you are looking at a pile of assets.  You are looking to move the pile of money to another location.  Forget all the family memories and the blood, sweat and tears you put in the house.  When it comes to selling it should be all business.
  

 

Before kicking an offer to the curb think about how you can possibly CHANGE the offer, create a carrot for the potential buyer and create a win/win situation for all parties. Listen and work with your agent.

 

Try to take the drama out of the initial response to a low offer and turn it into a Donald Trump business transaction.  Think about what the buyer really wants and then how to change the terms to meet your needs.

 

Negotiating is a give and take situation.  One party cannot have it all one way or the deal will NOT go together.  Think about what you are willing to give up to get what you want. You win by getting the house sold and the buyer wins by getting the home you have to sell. 

Receiving a low offer with bizarre terms can make anyone mad at first.  It is understandable how you might be thinking about when you listed the property it was a fair price and now a buyer comes in and wants to rip your heart out which is not acceptable to you.  This is when you take DEEP breaths, watch the 60 minute video below. 

 

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Now really think about why you want to sell your house and project what could happen if it did not sell this year or even next year.  No one including your agent has a crystal ball. Only you can answer and analyse why you need to sell and what happens if you don't sell.  As a real estate consultant, I can strongly suggest you  READ, THINK and REASON about the current state of our economy, discuss your local market conditions with your agent and then you will get your answer. 

If you don't like an offer that comes in on your property PLEASE don't shoot the messenger.  The agent you selected is working hard to help you achieve your goals.  Be patient and business like in creating a counter offer that works for you and it may just very well work for the buyer if they want your property and you have GIVEN them something in return. This resolution can be a WIN/WIN situation for everyone involved.

 

       

Cosmic Cow Pie

Carra Riley

5 To Dos Before Marketing Your Home

1. Flower up curb appeal. Do the lawn and bushes look neatly manicured? Could it use more? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks? Does it smell like blooms or manure as you approach the front door? Are the windows clean? Is the paint peeling? Is the grass healthy? Weeds are green, too, you know, so by healthy I not only mean green, but I also mean no weeds. Does your front door have a fresh coat of stain or paint? Curb appeal can be a chore or a fun family event. Either way, it has to happen before the sign goes in the yard! And, by the way, continue it 'til the closing. It's just the right thing to do.

2. Have a pre-sale home inspection. Be proactive. An inspector will give you a good indication of what will stand out to potential buyers. Plus, it is highly likely the buyer will hire one themselves and why not eliminate everything he would otherwise report? You'll be able to make repairs before buyers start charging you 10 times the price in the low offers they would bring unmaintained or before their inspector gets there and the repair requests start flying in like rockets. The best way to avoid insulting low offers or nagging repair requests is look like a million bucks to begin with -- get things done before-hand.

3. Get replacement estimates. Do you have big-ticket items that are worn out or will need to be replaced soon, such your roof, old foggy windows or carpeting? Get estimates on how much it would cost to replace them, even if you don't plan to do it yourself. The figures will help buyers determine if they can afford the home and will be handy when negotiations begin. Don't play poker. They will see your foggy window and raise you ten.

4. Find warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.

5. Organize and clean. De-clutter! Items like kitchen tools, out-of-season clothes, toys, and exercise equipment need to GO. Store items off-site or in boxes neatly arranged in storage areas. Clean windows, floors, fixtures, walls and baseboards to make the interior shine.

Sellers, the beauty of a tough economy is a lot of homes are neglected, abandoned, abused or otherwise show like poo. This is your chance to shine! Plus, none of the recommendations above are bank busters.

Dear Seller - Ten Sure Fire Ways to Distract Buyers from Focusing on Your Home.

 This may seem a bit harsh but it is just plain speaking honest commentary regarding my experience as a buyer's agent.  The statements below are taken directly from the comments and behaviors of buyers viewing homes for sale.  It not meant to be negative but rather is meant to give sellers a bit of a look into the buyer's head.  A chance to see things from the buyer's perspective without the candy coating we agents typically put on things.

10) Leave your "friendly" dog roaming free inside the house when you know we are coming to see it.

Not all buyers are dog people.
Many whether they are dog people or not will actually be scared of your dog.
I have had clients refuse to go into homes because the dog was out.  Or they go in but don't stay long because the dog is either scared of them or overly friendly.  It's hard to pay attention to a home when your nether regions are being inspected by Fido. 
If the buyers are true dog people they are going to focus on the dog not on the house.
Trust me I have seen it happen. 
One way or the other your pet has effectively distracted the buyer from looking at your home.

9) Leave something aromatic cooking in the crock pot for your dinner that night

Not all buyers are going to be fans of your food choices.  In fact if it is particularly aromatic and something the buyer's don't care for, they are likely to ask me if I think the smell will come out or leave quickly because they don't like the smell. 
They were so focused on your food choice they didn't look at your house.

8) Keep photos of your family up throughout the house

Guess what, buyers are going to look at your family photos to try to figure out who you are, do they know you, how many kids do you have?

Guess what they are not doing?  Looking at your house.

7) Keep all your nick knacks out

I know they are precious to you but honestly they are distracting to the buyer.  Instead of looking at the fabulous mantle the buyer will be looking at all the items on the mantel.  As with family photos, buyers will often comment on these items trying to form opinions on who you, the sellers, are rather than focusing on the home.

Pack them up in boxes so you have one less thing to do later on moving day.

6) Make it difficult for me to show your house

I know selling your home is a pain, that you have a life and the appointment time I'm suggesting might not fit into your schedule.   
But, hey I have a buyer that wants to look at your house. 
You want to sell your house right? 
Know what happens when you can't make that appointment time work?  The buyer goes and looks at other houses that are available to see at that time.  Do buyers reschedule to see your house at a later date?  Often times not.  Many buyers find another home that they like or are just not interested in going back to see one they couldn't see right away.  I am not saying that you have to turn your life completely upside down and backwards.  I am just saying that if our appointment time does not work for you don't be surprised when we don't reschedule.  The buyer is likely to have moved on.

5) To continue on the pet theme, leave your cat roaming free throughout the house with a note by the front door stating "Please do not let the cat out".

You are setting up a stressful rather than relaxing situation for the potential buyer and for me the buyers agent.  Buyers are forced to dash in and out of doors rather than wander freely throughout the home and property.  They miss out on the opportunity to call back into the house to their spouse or partner that "they have got to come see this garden, bbq area, hot tub etc" because they had to shut the door so the cat didn't get out.  If they do get wrapped up in looking at the house and forget to shut doors I have to remind them instead of pointing out the features and benefits of your property.  You just made me the nagging hall monitor instead of the helpful agent.  When your pet does manage a jail break, as I swear 99% of them do, I am forced to give chase to Houdini the Wonder Kitty.  Meanwhile my buyers are cooling their heals either irritated that we are off schedule or more likely worried that you are going to be mad if we don't catch your pet and get them back inside your home.

Again the focus has been shifted away from your home.

4) Don't replace burned out light bulbs or use low wattage bulbs.

Yes I know it's only the laundry room, a closet or the spare bedroom you never use but guess what? The buyer wants to see these spaces and when the buyer can't see it they can't form an opinion.  Use a good high watt bulb that appropriatley lights the space.  While the lower wattage bulb will save on your electric bill it will also make for a dark space.  Dark spaces do not impress buyers.  I will typically bring a flash light to help out when a bulb is out but it is still not the same as having a working bulb with the appropriate wattage to light the room to the best benefit.  Buyers will focus on the burned out bulb instead of the space.  Is it just the bulb?  Is there something wrong with the fixture?  If the bulb is dim buyers will focus on how dark the space is instead of how useful it might be.

Don't give them a chance to wonder and worry just replace the bulb and show off the assests of your home in the "best light".

3) Close all the curtains and turn off all the lights

When we walk into the house instead of immediately noticing the great things about the house we are going to be fumbling around looking for light switches.  It is likely that either I or one of the buyers may stub a toe on a hall table trying to find the switch.  Buyers are hesitant to enter dark areas.  In a home that is dark the buyers tend to follow me around as I turn lights on instead of lingering in various rooms to focus on what they might like about a room.  They feel more like they are intruding and less like they are welcome.  Instead of paying attention to the homes benefits they worry about whether they remembered to turn a light off as they left a room.   They also don't get as much of my attention because instead of being able to answer their questions about whether or not the fridge is included or what the square footage of the lot is I am running around opening and shutting drapes and turning light switches on and off.

I know it may not be practical to leave all the drapes open and all the lights on all the time.  At least leave the drapes open on the windows with the best views and leave a few lights on so we can find our way around the house.  If it was on when we got there I will leave it on when we depart.  If it was off I will turn it off.  Please at least leave the porch light on.  I do carry a flashlight but it is just not the same as pulling up to a home with a welcoming porch light on.

2) Turn the heat down

I know especially if you have already moved out that you would like to save on that energy bill but if it is colder in your house than it is outside buyers don't want to linger.  They don't get a warm cozy feeling from your home.  They just feel cold and that feeling transfers to an emotional opinion of your home.  If you can't keep the heat all the way up at least keep it at 55 so we are comfortable in our coats and for heaven sake if you are going to turn the heat down don't expect us to take our shoes off, leave some shoe covers.

One of the quickest ways to drive a potential buyer out of your house is to make them view a cold house in stocking feet.  It is hard to admire the spacious kitchen when your feet are being flash frozen by the cold tile floors.

1) Stay in your home while we are showing it

This is the BEST most SURE FIRE way to make a large majority of buyers uncomfortable.  Buyers don't even come close to paying attention to the features and benefits of a home if you are there.  They are so nervous about offending you and so uncomfortable looking at your home while you sit in your living room or worse follow them around that they rush through. They will tell you thanks for letting them look and dash out. Upon leaving they can't begin to tell me if they noticed what colors the wall were, if there was carpet in the living room or if they liked the kitchen or not. 

What they do tell me is "That was uncomfortable", "I don't like looking at homes when the seller is there" and "Can you make sure the seller will be gone at the next one, if they are there I don't want to see it"

Leave, even if you go sit in your car, take a walk around the block or dash over to your neighbors, just leave.  The buyer will stay longer and pay more attention to your home then if you are there.  If they are interested in your home and have questions I will call your agent and ask.  Think about it.  Would you feel comfortable wandering through someone's master bedroom and checking out the closet space while they were sitting in the living room?

If the buyers fall in love with you home and decide to make an offer there will likely come a time where they will want to meet you and discuss your home at length and in detail with you. Typically buyer's and seller's agents are more than happy to set up this meeting.  It is just not the first time the buyers are viewing your home.

Again, Please keep in mind these statements are meant to be helpful to sellers and give them a chance to look at things from the buyer's perspective.  These are just some of the things that may not typically be thought of as a big deal but do in fact distract buyers focus. 

Noelle Blazevich
John L. Scott - North Bend
noelleblazevich@johnlscott.com
When you work with me it's about YOU!

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Loudoun County Horse Farms and Country Homes Market Report for 2009

Every Seller Needs To Know, What Sells a house?

Every Seller Needs To Know, What Sells a house?

There are four variables that sell a house.

1.  Price

 

2.  Terms

 

3.  Condition

 

4.  Location

 

 

All four of the variables go together to create the "perfect sale."  Each aspect must be taken into consideration if you want a property to sell.

1.  Price fixes everything!  Don't let anyone tell you different.  When the buyer perceives there is a value because of the price, they will buy the home.

The other three variables always can effect the price.

There are circumstances where a buyer has lost the ability to qualify for a traditional loan because of a foreclosure or bankruptcy and the buyer needs owner financing.  With Owner carry Terms that particular buyer may be willing to pay more because they have ownership with possibly a small down payment. 

Conversely, if the Condition is bad the price will have to be reduced to reflect a value in the home where a buyer will have to come in and do repairs or cosmetic updates.

Location is the toughest variable in the sale to compensate for.  Most people have heard about in Real Estate the terms Location, Location, Location. If the location is bad.. ONLY price will sell the property possibly combined with terms so exciting that a buyer will not be able to pass up the deal. 

2.  Terms.  If the Terms are attractive, sometimes a seller can get more money for the home.  For example: a home with a value of $325,000 listed with owner carry terms of $25,000 down and no bank qualifying might be able to sell at $350,000 because of the terms. 

Under any owner carry situation, it is important the seller speak with their accountant and attorney before accepting any contract and agreement to finance.   The seller should be completely aware of the liability and consequences in owner financing. This is just an example how price can increase with the right terms.

3.  Condition is a key factor in selling a home.  When the property is in top condition, looking like a show home the seller may get top market value for the property. In times where homes are selling at a slow pace, in order to procure a sale, the home should be the BEST property at the Lowest price to get to the closing table.

Taking a seller on a preview tour of the homes in the area similar to their property can save months of discouragement with a home not selling.  When a seller can see the competition and accepts the fact their home needs to be the Best house at the lowest price to sell, the home will sell and the seller will see what they are up against in comparison.

Carpet or paint allowance does NOT work in selling a home.  If the home needs carpet, put it in.  If the home needs painting, get it painted.  Many times this can cost a seller $5,000 to $8,000 to do those upgrades.  Investing, yes, investing is the correct term, for getting the house sold. The money invested will come back in the form or a quick sale at full market value.

A picture is worth a thousand words so think about how the property looks and even take some pictures to see what a buyer is looking at.  Sellers should look at the pictures like they were a buyer and ask, "would I buy this house in this condition for this price?"  Are the kitchen counters cluttered?  Are the closets a mess?  What does the front door look like and the yard when people drive up to the house? 

A seller has 8 seconds for a buyer looking at a home to decide if they really like the house and if it will go on the A list.  The buyer starts the decision making process when driving up to the home while looking at the surrounding properties and the entrance to the home. 

There are many agents are trained in "staging" a home and there are "staging services" which help a seller to understand what needs to be done to create a "marketable product." Listen to these people if you want to get the house sold.

The seller needs to separate from the house and see it as an investment or product that needs to be sold. The seller needs to take all the emotions out of the happy memories in the home if they are serious about selling.

4.  Location is the only variable which cannot be changed.  A bad location, is a bad location so only price and terms are going to help this situation. 

It does not matter that the same model home across the street sold for thousands more, because it was ACROSS THE STREET and did not back to the highway.  A seller needs to get a reality check on location and think about when they purchased.  If the seller got a good deal when they bought because it had a bad location then they have to give the new buyer the same good deal to sell. 

Sellers should take all the emotion out of the business of selling a home and treat the transaction as an investment decision. 

If the goal is to get the home sold then listen to the professionals and let them do their job. 

As Donald Trump would say, "It's only business." 

 

 

       

Cosmic Cow Pie

Carra Riley

Ways to Spruce up Your Home for Under $100

By spending $100 or less, a home owner could improve their home and make their surroundings more enjoyable.  Since it is winter and colder outside, this is the time of year when more people focus on staying home more and inside home updates.

Here are a few ideas to get you started:

1. One thing my family always enjoys is new bedding.  Now is the time to pickup a new "bed in a bag" for your master bedroom and change your look.  With places like Walmart carrying brands like Better Homes and Gardens bedding and pillows, you can pick up a complete bedding set plus some extra decorative pillows for under $100.

  Picture is Walmart.com,  Better Homes & Garden Bedding Set Spice

2.  Update your bathroom faucet to a more modern one.  It may take you a little time looking online to find a style you like that is under $100, but is can change the entire look of your sink.  Most home owners are able to change out a faucet on their own since all the existing piping is already there. 

Picture is from HomeDepot.com, Pegasus 9000 Series Faucet - $99

3.   Update all the towels and bathmat in one of your bathrooms.  This is another great way to completely transform the room with an entirely new color scheme for a relatively small amount of money.

Picture is from Kohls.com, Greenbriar 3 Piece Towel - $36

4.  Paint your walls a different color.  This is the easiest way to have a huge impact in a room. A gallon of Benjamin Moore interior paint runs between $30-$40 in my area and is a fantastic paint.  Color can influence mood and make a small room look larger (by selecting a light, reflective color).

5.  Hire an interior decorator or home stager for 1 hour to come to your home and help you decide on what needs to be done.  Most decorators and home stagers charge under $100 per hour and can give you invaluable information such as what paint color to use on your walls or where to position your extra large sofa.  Believe me, this will be the best money you spent because the results will have a lasting effect in your home.

Kate

Kate's Home Staging and Redesign, specializes in home staging, interior design, home decorating, home decor discounts, semi-custom window coverings, and color consultation.  Call Kate for your design consultation at 845-538-3623 or visit www.kateshomestaging.com

 

6 Reasons why your house won't sell.

1. Your photos are unimpressive. The vast majority of home buyers start their search for a home on the Internet, your house had better look great in print. Not just nice... downright fabulous.  Today we are considering internet views as a 'virtual showing'... if your house gets past that, then they might (just might) make an appointment to see it in person... We consider that your SECOND showing. Today's buyers are expecting good quality photos (and lots of them... just 1 shot from the street won't cut it!), a virtual tour, maybe even a floor plan, if applicable.

2. It's overpriced. You've got to view your own property as objectively as possible.  Look at the home like a "buyer"... if necessary, go out with your Realtor and view other homes that are priced comparably to yours.  Be objective.  Given the other options on the market (and yes, you DO have to include short sales and foreclosures on your list... your potential buyers are!), would YOU buy your home, over the others on the market?

If no, then you either have to "update" your home to meet or beat the competition... or lower your price to adjust for it.  if you can't afford to sell for the price, that you KNOW it sell for, you may want to consider just removing it from the market.

3. It shows poorly. This could mean almost anything... from the barky, barky dog, to the smell of the diaper pail.  Maybe the carpeting is a bit worn, or the woodwork shows a lot of wear.  All things that don't show up on the internet, but whoa.... once you get inside the house... they show up, like a cat-urine-smell on a 95 degree day in New Orleans!

4. You're invisible. Today's buyer comes from the internet, almost exclusively.  Have you (or your agent) simply plopped the property on the MLS, and started praying?  Are you on all the websites...(Trulia, Zillow, Craig's List, Google Base, etc...) all the places that buyers are searching?  If not, you want to be.

5. Your listing is tired and stale on the market. Okay... yes, you overpriced your home initially when you first came on the market 2 years ago.  But since then you have reduced your price almost monthly... constantly chasing the market down.... Now, finally you're truly priced where you should be... but your listing is tired and stale.  Everyone looking for your type of property (ie: 3br/1.1 bath) in your area has already seen it, sometimes twice... and they remember that there was "something" about it that they didn't like... but what they don't remember is... what they didn't like.... was the price.   Time to take the listing off market.  Let it cool off (3-6 months), and bring it back on fresh in the Spring.  Yeah, you'll have 6 mos. worth of holding-costs... but you'll more than make up for it in your purchase price.

btw... Avoid the temptation to bring the house back on at a higher price, than when you left the market.  Just "don't do it"!

6. Your house won't appraise. The house looks great... you've finally gotten someone to bring you a bid on your slightly over-priced, but beautiful pied-a-terre.  But the bank appraiser says it's worth $20,000 less than what they've agreed to pay.  Heavy sigh... bite the bullet.... negotiate with them.   If you have to drop the price $20,000 to make it work.... "make it work"... chances are, anybody else trying to buy your house will run into the same problem.

Ashburn, VA Real Estate Market Report 1st Quarter 2009 (Jan-March)

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