So you’ve decided it’s time to sell your home. It’s a straight up sale, no short sale worries, etc. You have equity and it is time to either move up, or move down, or move away. Whatever the reason, you want to sell your home.
Now, I understand that you have all the modern upgrades. Perhaps a swimming pool, a nicely manicured landscape, large backyard, custom moldings, etc. And you tell me because of that, your home should sell for mmmm….$30-50K ABOVE what’s currently selling in your neighborhood. Stop right there…
I know, your house is beautiful and believe me, I want to sell it for you. But here are some straight up facts that we must hash out beforehand: When it comes to selling your home, focus on that which you can control, not that which you can’t.
You CAN control: The price at which you want to list your house.
You CAN’T control: The price that will be offered to you by a potential buyer.
You also CAN’T control:
- Market conditions and the Competition
- Interest rates
- The location of your property
- When the perfect buyer will show up
Let’s talk about these items in detail…
Market Conditions and the Competition
As you may know, the real estate market has taken a dramatic shift in the past few years. Five years ago property rates were climbing as high as 50% per year before it all came crashing down a few years later. Home prices (including yours) have declined, and that’s the reality. Even though news and realtor reports state claims of a ‘home inventory shortage’, it doesn’t necessarily mean a total seller’s market. You are now competing with short sales and bank-owned properties as well as other sellers who, like you, just wish to sell and find another place to live. Even though short sale and bank-owned homes are listed at Fair Market Value (FMV), their condition still dictates their final appraisal value. They are still considered comparable properties as they are the ones that have actually sold in your neighborhood, and there is a huge difference between what homes may be listed at, and what they actually sell for.
Interest Rates
Fortunately as of this writing, interest rates are at historic lows. Also, most buyers who have been pre-qualified by a lender are REALLY pre-qualified, which can be good news for you. An offer that comes in from a qualified buyer has the best chance of success and sale. That being said, we do not have control over interest rates and any number of national financial or economic issues can change that at a moment’s notice. Remember that the higher the interest rate, the less dollar amount the potential buyer can qualify for.
The Location of Your Property
Perhaps when you bought your home it was located in a lovely, quiet neighborhood that backed up to a wonderful meadow complete with wildflowers, bunnies and green hills. A few years later, developers and city planners build a road behind your home and a new housing tract goes up. Now your idyllic dreamhome backs up to another neighborhood and traffic.
OR…Maybe you bought that home on the street corner because of its lovely swimming pool, huge backyard and modern, upgraded interior AND…because it practically a STEAL! Now, consider that fact when you now have to sell your home that might not be as appealing from a location point-of-view.
When the Perfect Buyer Shows Up
Face it. When I list your home you will undoubtedly have a lot of people walking through your home, and you won’t know who that one perfect buyer is until an offer has been submitted. However, if your home is priced out of the market, you’ll never see that offer. A lot of times if your home is overpriced, other agents will show your home to compare it to the one down the street (possibly their listing) that’s more reasonably priced.
So what is the rule when pricing your home? Now, this goes against most sellers’ thinking, but the rule is to actually price it LOWER than your competition. Why? Here are some more factors affecting the price of your home:
- Availability
- Timing (AKA Your motivation to sell your home quickly)
- The condition of your home
- Terms
- Warranty
- Amenities
- Lot size, trees, views, privacy, etc.
The importance of pricing your home competitively cannot be stressed enough. In most cases, your first offer may be your best offer, and pricing misconceptions occur because sellers try to price their home based on any of the following:
- The amount of money you paid for the home.
- The amount of money you invested in updating your home.
- The amount of money you want or need to buy a new home.
- The amount of money you want or need to rebuild this home.
- What you neighbor told you he sold his home for.
- What another agent tells you he can sell your home for.
With that, the longer your home sits on the market, the less you may net from the sale of your home. Below is a graph that details how home pricing affects buyer interest:
Note that the more competitively you price your home, the more potential buyers you will have coming through your door.
More potential buyers=more potential offers=more potential counter offers from you=potentially higher sale price.
Just as the principle of value drives any other marketplace, the same principle applies in real estate. Listing your home above current market value WILL NOT get you a valid buyer…period!
I know, it sounds harsh. It sounds like obviously I might not be telling you what you want to hear. But my job is to get you the best price for your home through my education, experience and expertise; and not by providing you lip service or just taking your listing at any price just to plop a sign in your yard and sell everyone else’s home but yours (believe me, there are realtors out there who do this). These are the real facts and they WILL get your home sold fast! Trust me, I’m a professional! Now let’s list your home! Call me at 661.209.7447, or click here for your FREE Comparable Market Analysis of your home. I’ll give you the real deal and get your home sold FAST!
Lisa B. Kaul is a licensed real estate agent serving the Southern California communities of Santa Clarita, the San Fernando Valley, the Antelope Valley, Simi Valley and the Conejo Valley. Lisa also has a vast network of thousands of realtors who are ready to help you anywhere in the U.S.A. For more information, go to http://KaulGirl.com. For more information on avoiding foreclosures, go to http://Kaul4Homes.com
It’s been said time and again that “It’s all about Relationships” when it comes to your real estate transaction. As simple as that statement may seem, it’s also the most forgotten — especially when dealing with (dare I say it?) T H E B A N K S!
So, you are getting a Loan Modification and the only way to get your point across is to cuss and yell at your servicer. (ding, ding) Wrong Answer. When trying to sell your home through a Short Sale and your Agent calls with information from The Bank, do you start plotting your Agent’s and The Bank’s demise? Um, No! Or perhaps while trying to Avoid Foreclosure, you decide to avoid The Bank all-together!? As Dr. Phil would say: How’s that working for ya? I’m guessing it’s not. You are more frustrated than ever — just ready to give up and walk. It’s just not worth the hassle, you might say.
It’s time to take a step back. Breathe. Reassess your relationship with The Bank. Evaluate your expectations. Many have high hopes of being saved but very few understand the reality. Few understand The Bank.
Let’s look at a few ways we can help make our relationship with The Bank better, easier and get one step closer to Avoiding Foreclosure:
1. ALWAYS REMEMBER your relationship with your lender.
* It is not the bank’s responsibility to protect your interests.
* The bank is not designed to save you money.
* The banks have no legal duty to actually approve you for a loan modification or short sale.
* The banks have no legal duty to postpone your foreclosure while you are in a loan mod review process (unless you get it in writing).
* Do not rely on the bank to look out for your best interest.
2. Promptly open AND read all your mail involving your property … especially if it’s from your lender!
3. If you don’t understand the bank’s correspondence, seek immediate professional assistance (with emphasis on IMMEDIATE).
* However, don’t rely completely upon others to think and act for you.
* If you are working with a servicer immediately forward all correspondence to your service provider.
4. Carefully review anything you sign with your lender, to include loan workout agreements (forbearance/trial payment periods).
5. Document each and every conversation you have with your banking institution.
* Write down day, time, name, number, ID numbers, extensions, etc.
* Take detailed notes
6. Keep in constant communication with your lender and service provider.
* Noncommunication, like in any relationship, is a killer.
Lisa B. Kaul is a licensed real estate agent serving the Southern California communities of Santa Clarita, the San Fernando Valley, the Antelope Valley, Simi Valley and the Conejo Valley. Lisa also has a vast network of thousands of realtors who are ready to help you anywhere in the U.S.A. For more information, go to http://KaulGirl.com. For more information on avoiding foreclosures, go to http://Kaul4Homes.com
This is a great time to buy a home. Prices have leveled off and, in many cases, even dropped from their all-time high just a few years ago. What does this mean for the first-time home buyer? Well, possibly more home for your dollar!
When considering your first home purchase, there are a lot of things to consider before you step out the door to begin your home search. First and foremost, talk to a home mortgage lender to see if you qualify for a home loan, and what dollar amount you might qualify for. In a short discussion where you provide some basic information regarding your finances, your lender can provide a conservative ball-park estimate of the loan amount you may qualify for. However, in order to obtain specifics and actually know for sure the price range of the homes you may be interested in purchasing and actually submit a purchase offer, you will need to have loan pre-approval.
What is Loan Pre-Approval?
Loan pre-approval is the process by which you submit a loan application detailing personal and financial information such as your current residence, your occupation and place of work, income, assets and monthly expenses. Your lender reviews the details of your application to determine what loan amount you may qualify for, and your options for loans such as fixed, ARM (Adjustable Rate Mortgage), VA (Veteran’s Administration) loan, down payment options and requirements, and/or any other programs currently available to homeowners. Many home sellers will not even look at a home purchase offer from a buyer unless it accompanies a pre-approval letter from their lender.
Why is pre-approval so important? Loan pre-approval not only allows you the comfort of knowing how much house you can afford, but it also shows the home seller that you are serious in your effort to purchase their home. It also usually makes the escrow process run alot smoother when the lender has all the necessary paperwork and approvals in place in a timely fashion. Again, many home sellers WILL NOT consider a home purchase offer without lender pre-approval. This of course does not apply if you are paying cash for your home.
Once you have obtained lender approval for your home purchase, you can easily search for homes using my FREE Multiple Listing Service (Click here). Through my free service, you can sign up to receive the latest listings directly to your email box, and know that I am just an email or phone call away. I will also search for homes within your price range to your specifications, and we can set a time to view the available properties of your choice. Some things to consider when searching for homes:
- Location
Do you commute to another area for work? Is easy access to freeways, rail or bus stations important to you? - Old or new?
Some people love old neighborhoods because of their charm, or perhaps they remind you of another time or place in your life. Older homes and neighborhoods can be great for first time home buyers as the neighborhoods are already well established. In many cases such amenities as room additions, upgraded landscaping and pools have already been built, so the homes are usually more ready to move into without incurring the cost of installing upgraded amenities.
Newer neighborhoods however do take advantage of the latest in architectural design and materials, and, since they are new homes, the upkeep and deferred maintenance is pretty much non-existent. New homes usually come with a warranty from the builder (Which may vary from builder to builder. If you have questions about new homes and their warranties, contact me). Most new homes, unless otherwise specified by the builder, do not come with such amenities as window coverings or landscaping, so you will need to include those items in your home purchase budget. - Are schools important?
Checking with the school districts in the area you wish to move to may help you determine where you want to move. Many parents are concerned about the quality, test scores and overall value of the schools their children will attend. It is important to verify with the school of your choice where their boundaries lie as they may change from year to year. - Single Family Residence (SFR), condo or townhouse?
Many of us dream of having our own little piece of land to call our own; with a yard for the kids and maybe a pool, a built-in barbeque, etc. But remember that single family residences do require maintenance of landscaping and upkeep. If you’re not the maintenance type, you might consider a condominium or townhouse. Drawbacks: You’re sharing common areas and perhaps a wall or two. Pluses: Condos and townhomes are usually less expensive than single family residences and the common areas, pool and landscaping are taken care of by the homeowner’s association. - Location, location, location!
Buy a home for the things you can change, not for the things you can’t. Corner houses, homes backed up to (or on) busy streets, homes next to empty fields, backing power lines, etc. might be slightly less expensive, but in the long run make sure you ask yourself if you will be happy there should you wish to spend the rest of your life in this home. You can always add rooms, change colors, carpeting, landscaping, add a swimming pool and more, but you can’t pick up a house and move it from a busy street corner. - Check it out
Check the areas that appeal to you by driving through the neighborhoods at different times. Check to see how close schools, shopping and commuter access are to your desired neighborhoods. Check with the local police department and inquire about the neighborhood as well.
Remember, if you have any questions at all, you can always contact me and I will be more than happy to answer any questions you may have.
Lisa B. Kaul is a licensed real estate agent serving the Southern California communities of Santa Clarita, the San Fernando Valley, the Antelope Valley, Simi Valley and the Conejo Valley. Lisa also has a vast network of thousands of realtors who are ready to help you anywhere in the U.S.A. For more information, go to http://KaulGirl.com.
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