Sellers prepare to sale in today market

Most sellers wish they had planned to sale their home last year.  This year is a challenge to sale your home if you don’t price right.  Most sellers makes mistake by pricing their home with last year price.  You may be in denial; denial may cost you money if you don’t follow what experience REALTOR® suggestion or recommendations.

Inventory is almost double from last year and fewer buyers are on the market.  That will leave potential buyers with more choices and you should anticipate longer to receiving an offer. The average days on the market are between 40-50 days.

Seller should prepare to choose a REALTOR® that will provide the following CMA, help prepare your home in a perfect condition, and great marketing campaign in a slow market.

What is CMA (Competitive Market Analysis)? A good REALTOR® can provide you with good data to help you price your home right (The first time). Click here sample CMA.

Your home should be in a perfect condition.  A good REALTOR® can suggest good advice to help prepare your home. Can you imagine today buyers have problems choosing which home he or she wants to submit an offer.  For example, three homes on the market a round your neighbor, all else being equal your home is the only one that is not perfect condition.  Which home do you they will make an offer? Not your of course.  Unless you want a bargain buyers whose will low ball an offer on your home. 

CLOSING:  In today market it takes more than just listing your home on the MLS (Multiple Listing Service).  A good REALTOR® will arm them self with great marketing to help expose your home to the mass and target the right buyers.  Seller should be patience; the key to sale your home is great marketing. 

Click here see sample of marketing.

In a Seller Market, a buyer has to have every document ready, prepare beyond other buyers bid, and hope that alone will be enough to get an offer accepted.  For example, last year (2004-2005) multiple-offers is common.  In order for buyer to purchase a home he or she has to have pre-approved letter, write a personal letter to the seller explaining why you want the seller property, and often time no contingency on the offer.  Not to add, you over bid the asking price, and does this sound familiar.

In today market, inventory is plenty, and homes are on the market twice as long.  Look as thought the market has shift to buyer market or balance market in some desire area.  The question is still remained, should the buyer need to prepare all documents while in the buyer market?  Such as pre-approve letter, write personal letter to the seller or even no contingency offer and hope the seller will accept you’re offered. 

First, let’s look at the current market.  The market has shifted to the buyer which means the buyer has the upper hand (the table has turn).  It is still a common practice to have your loan pre-approve. Why? It shows the buyer are capable of purchase the property at that price, and most important negotiation…..if you work with experience REALTOR® they will show and help you to negotiate when purchase your home. 

In today buyer market, a buyer whose prepare and ready will not only get offer accepted but also purchase a property at the right price.  Here are list of documents I consider a buyers need to prepare in this market.  And don’t forget to arm yourself with experience REALTOR® they can help make your home purchase happen. Buyer now has the opportunity to purchase home at the price they can feel satisfy knowing they are not over bid the property. 

1. Pre-approve letter
2. 3 percent down (if possible)
3. Buyer representation (A REALTOR® who represent the buyer only)
4. Shorten the closing date (less than 25 days close)
5. Personal letter to the seller (only in a desire area such as popular school) 

CLOSING: In any market such as Buyer Market or Seller Market, it is to a buyer benefit to prepare, this will insure high rate of offer accepted.  At the end buyer are not offer to seller but also to counter bid with other buyers.  If no other buyer is offered for the property, the only buyer will have the upper end of negotiation table.

Click here to contact for more consultant

Proud of ownership

Have you take a nice walk lately? Especially around your neighborhood on a beautiful day?  Do you always wonder while walking down the street some properties is nicer than other?  I do and I would observe each home curved appeal.  I ask myself is the grass green, nicely cut, and is the bush trim weekly.  How is the path to your door way accessible and how welcome you feel once you get closer to the door? Is the home telling me welcome don’t stand there ring the bell?

If you say yes to the above questions, you maybe experience some thing I would call “Proud of ownership”.  It doesn’t stop there….once you get a chance to be invited to the home. Almost every thing is neatly place, well clean.  No dust or spider web anywhere to be seen.  Stop it sound to perfect! Ok, yes I am exaggerating a bit. 

But here is my definition of proud of ownership.  It means owning a property and keeps the place well kept and up to date.  Example, if there is a defect on the property it would be fix.  You properly won’t see a hole on the wall since the owner would patch it and repaint it.  The carpet is clean not to say it is old but clean.  The paint on the wall is replace every 5 years depend on how discoloration it gets.  Of course these are just the visual what an eye can see.  But for an inspector, he would say whoa! Every thing is up to date, the water heater is replaced and strap.  Fire detector is replaced with new battery and there are enough detectors around the home.  The fire place is clean all the way through the chimney “No fire hazard”. The main break is not broken or pampers without a contractor fix it themselves. The list goes on and on……

The point is from time to time.  I get an owner request for a free home values or home worth, I than prepare what is called Comparative Market Analysis (CMA) which insist of your home current market values.  The values I will provide will give you arrange from low to high.  Of course, it would not be true values since I have not seen the property.  Most owners think I am not telling them the whole truth but I have.  Not all home are own by “Proud of ownership” there fore the values can not be determine until you (owner) welcome me to your home.

Food for thought, what I expect from you (owner) is to fix or repair your property. My input is nothing compare when the buyers see and expect for your home. They are not as nice I as I am.   Follow my advice, It could be a different between selling your home with a highest possible price or be disappointed at escrow once you received your final check.

Thank you for reading and until next time.

If you have any questions please feel free and contact me. I love to hear from you.

July 2006

Average Days On Market is much longer compare to last year number about 25% increased for both Condo and single family home.

This month (August) I have seen a lot of price reduction on property more so than the last three months.  Sellers are finally accepting the fact that we are headed toward buyer market.  However, there are still good location such as good school district those area still are in high demand. One big surprise single family and condo in Santa Clara still appreciate in value.  Of course not as much compare last few years were we see an increased of between 10-18% (annual).  I will continue to provide next month and we will see how the number play out.

Stay tune.