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SELLING
A HOME OR PROPERTY
‘CAVEAT
EMPTOR”? - NOT TODAY
If you buy an old overcoat in a
used clothing store and the
sales slip states “sold as is”,
you’ve bought it moth holes and
all, right? Well, maybe. This
legal principal of “caveat
emptor” (let the buyer beware)
is dead or dying. We are living
in an age of consumerism and
it’s hard to find a court that
won’t favor the buyer in a
dispute. In fact, consumer
groups and many government
agencies are taking the posture
that the seller must disclose
everything.
If you have a problem in your
home, don’t mask it. A common
example is the homeowner who
spray paints a ceiling to cover
water stains caused by a leaking
roof. If you have an problem
that you don’t intend to
correct, be candid about it.
Sure, some people will be turned
off by it, but the serious buyer
will be understanding about a
problem openly displayed.
Usually, they will discount the
price by far less than the cost
of repair…..and a whole lot less
than a day in court would cost.
NO SHOPPING TODAY,
GRACE
If you’ve ever tried to sell
your own home, I’m sure it
didn’t take long to discover
that it’s a full time job.
“Sorry, Grace, but you can’t go
shopping today. We have to show
the house at 2pm.” A familiar
tune?
If you sell your home the
professional way, through a
Realtor, you’ll not only get the
best price for it, but you won’t
have to be a slave to it. Turn
the keys over to me, Grace, and
go shopping. No longer will you
have to stay home all weekend.
You won’t be missing a beat. In
fact, more realtors prefer NOT
to have the owner about when
they bring prospects by.
Prospects feel free to discuss
the house when you aren’t
around.
The very fact that it’s you who
may be showing them around your
home will inhibit prospects.
They may not feel comfortable
making a thorough inspection as
they would with a Realtor. As a
result, Ms. Prospect might
overlook the very feature she
wants that could close the sale.
Making sure nothing is
overlooked is MY JOB.
YOU’VE GOT A NICE
FACE, BUT…..
Do you know what I consider one
of the greatest drawbacks of the
seller who tries to sell their
own home? The fact that most
prospects will not confide their
objections to the seller’s face.
I’ve found that the great
preponderance of buyers are
gentle, polite and caring
individuals. That’s the problem.
They don’t want to insult you.
You may have the nicest face on
the block, but a promising buyer
may have abruptly decided that
he couldn’t afford the price of
your home and left. He didn’t
want to hurt your feelings. On
the other hand, price is a
subject that they WOULD discuss
with a Realtor (they do it all
the time) who could then show
them how it could possibly be
financed within their means.
A nice prospect would dream of
telling a nice seller that the
carpeting was worn or certain
rooms need to be repainted.
They’d tell this to a Realtor
though, who could arrange to
make minor financial adjustments
or repairs and save what could
have been a lost sale.
FINANCING IS WHAT
COUNTS
When you’re selling a home, it’s
not the price that counts as
much as the buyer’s ability to
pay. You can have the best house
on the block for sale at a
give-away price, but it will
never sell to the prospect who
loves it but cannot afford
it…..or thinks he can’t afford
it.
An experienced Realtor, on the
other hand, can be expected to
discuss personal matters such as
financing with prospects.
Prospects will tell the Realtor
freely what they would hold back
from you. During such a frank
exchange, the Realtor has the
ability and experience to
suggest ways to make buying your
home possible for such
discouraged customers. At our
office, we’ve saved many sales
that both Buyer and Seller
thought were impossible.
We can suggest the advantages
and drawbacks of 15 as opposed
to 30 year mortgages; ARM’s; and
refer prospects to the bank
what’s most likely to lend
buyers in their situation. We
can suggest ways of financing
that weren’t available a few
years ago. It makes sense to
sell through a Realtor.
BUY OR SELL FIRST?
Here is one of the oldest
questions in the real estate
business: “Should I sell myhouse
first and then scramble to buy a
new one or should I find the new
one first and then sell?”
Actually, both steps could be
taking place simultaneously, but
you’ll need more information
first and a helping hand to
coordinate the steps so they’ll
fall into place painlessly. Your
first step should be a visit to
a knowledgeable Realtor who will
prepare a marketing plan for
your present home. This will
give you a firm basis for
planning your new purchase.
You’ll have an ideal of the cash
you will have available to use
for the down payment on the next
house. Also, you’ll have a time
frame for the sale of your
present home from listing to
closing. This will help in
planning the time you’ll need to
wrap up the purchase of the new
home.
In selling one home to buy
another, you’re not alone. Over
70% of all residential
transactions are hinged on one
sale taking place before another
is consummated. The help from a
professional will make this
transition more profitable and
less stressful.
‘CAN YOU JUSTIFY
YOUR PRICE?
If you are considering selling
your home, can you price it
correctly? This is the most
vital element in the whole
selling process. Or to put it
another way, do you REALLY know
what this market has done to
local home prices?
That’s why it pays to sell
through an experienced Real
Estate Professional. Such an
agent knows what’s going
on…..not only in your
neighborhood, but in all the
neighborhoods. We know what
people are really getting for
homes like yours. It’s our
business to know.
Pulling an abnormally high price
out of a hat may be one thing,
but can you JUSTIFY that price?
Can you prepare a CMA to
convince doubtful prospects that
your property is worth what
you’re asking? Can you cite
similar locat homes that have
gone for this price…or more? We
can. We have files of such
properties, most complete with
photos. That’s why you’d get the
best possible price when you
sell with us.
By the same token, avoid
underpricing. If you really want
to sell your house fast,
underprice it. If this sounds
like silly advice, it is.
Selling for less than market
value will lose you thousands of
dollars that could help pay for
the cost of relocation and
purchase of a new home.
No one would choose to make a
sacrifice of this kind. But it
can seem necessary when a sudden
job transfer compresses the home
selling process into too short a
time. However, a hasty decision
can be avoided if you use the
services of a professional to
show and sell the property in
your absence.
If you must move out before the
house is sold, we can arrange to
maintain your home’s
attractiveness during the
selling process. We can see that
the yard as well as the house
itself are kept in good
condition. Put yourself into the
hands of a Real Estate
Professional for the best
results. |
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WHEN THE BUYER
ARRIVES…
When we arrive with the
prospective buyer to inspect
your home, here are a few points
to remember: Greet them
courteously, then DISAPPEAR. If
you can, leave the house. Don’t
tag along. Your presence will
inhibit free discussion, making
it difficult for us to ferret
out the buyer’s likes and
dislikes.
Avoid having too many people in
the house. This can make a buyer
feel like an intruder. Children
and pets should be housed
elsewhere during the showing. Do
not try to interest the buyer in
purchasing furnishing before
signing the sales contract. This
can ruin a transaction. After
the contract is signed, there
will be plenty of time for such
discussions.
Do not discuss the terms of the
sale, occupancy, or related
matter with the buyer. Refer
these questions to our agent.
The answers given may make or
break the sale.
REACHING THE RIGHT
BUYERS
It’s true that today is a great
time to sell your home.
Financing is affordable and
great news about wonderful
things happening in our county
is bringing the buyers out in
droves. Even so, if you try to
sell your house YOURSELF today,
you still must face plenty of
difficulties. One of them is
attracting the right people.
Can you weed out “lookers”? It
takes a seasoned professional
eye to spot the truly interested
and qualified parties. If you
don’t have one, you’ll find
yourself wasting a lot of time
on people who are no more house
hunting than they are deep-sea
fishing. They’re just passing
the time because…..unlike
you…..they don’t have anything
better to do. Today’s market has
brought them out in force. If
you sell through us, you can be
sure that the prospects we will
bring will be really in the
market for a home.
WHEN A LOW OFFER
IS PRESENTED
Even though you may be selling
your home at a fair market
value, expect most buyers to
offer a lower price. In fact, a
first offer can be low by
thousands of dollars. Some
buyers play the low-ball game,
of “What have I got to lose by
coming in with a ridiculous
bid?” It happens.
If the owner is trying to sell
the home himself, he may panic
and think he has overpriced his
home. He might make the mistake
of calling the prospect back and
asking if he would be interested
in buying at a price a little
more than the low offer, but
much less than the property is
worth. Now he becomes an anxious
seller. The prospect is led to
believe that this tactics have
worked and may even insist that
the price be reduced further by
the amount of the broker’s
commission.
This won’t happen through us.
VERBAL OFFERS DON’T WORK. Every
offer must be in writing and
accompanied by a check. No
panic, just a business-like
approach.
I’m sure you’ve heard it said:
“Why should I sell my home
through a Realtor? I can sell it
myself and save a lot of money.”
Right?………….Wrong!!
This kind of thinking usually
turns out to be financially
unwise. The prospects will
usually start by mentally
deducting the commission and
THEN start negotiating from
there. On the average, a
homeowner saves little or no
money when he sells his own
home. In fact, the opposite is
often true. A lot of time is
wasted showing homes to
unqualified curiosity seekers
and many possible sales are lost
because the owner did not
possess the experience to
financially structure a viable
sale in today’s fast-changing
money market.
As a private seller, you’re at a
great disadvantage in the
intricate areas of financing,
negotiating and protecting
yourself from all sorts of
do-it-yourself pitfalls. You’ve
got a lot invested in your home.
It make sense to list it with a
professional. We’ll sell it for
you….without hitches…..for the
best price and in the shortest
amount of time.
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Mortgage
News
Courtesy of
QuickenLoans.com
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