Right now, the Canadian dollar is near par, and Real Estate in Phoenix AZ is down substantially off it's peak in 2006. That has led alot of Canadian buyers to look at picking up a second home here in the Phoenix area. There has not been a better time to buy for Canadians for as long as I can remember.
When buying Real Estate in Phoenix AZ, there are some things Canadians need to rememeber. First, financing is difficult, unless you have a US Social Security Number. If you don't, I have had a client get a loan through US Bank, but they are the only lender I've heard of willing to finance a US Loan for a Canadian buyer. Without that, you'll need to pay cash. If you have enough equity in your Canadian home, you can take out a second on that to pay cash for your purchase here.
The next item is your Earnest money. When buying a real estate in Phoenix AZ, all buyers are required to put down a certain amount of earnest money. You cannot write a check on a Canadian account to do so. It takes 30-45 days for an international check to clear, so Title companies will not accept is. Be prepared with cash, or to do a wire Transfer. Don't plan on opening an account here and writing a check from that....you need a US Address to open an account, and you won't have that until after you have bought.
Last, pay attention to the condition of a the home. Yes, you can get a good deal on a foreclosure. However, Real estate in Phoenix AZ is now priced where an owner occupied sale is typically priced competeitively with a foreclosure, once repair costs are factored in. When you live in another country, making repairs is difficult, time consuming, and risky. If you can avoid it, do.
That's pretty much it. Buying real estate here in Phoenix can be a smooth process if you know what to expect, and you have an agent experienced in international transactions. But if you do, and you are ready, now may just be the best time to buy you will ever see.
Thursday, April 29, 2010
Sunday, April 11, 2010
From Phoenix to Maui Real Estate
Hello Again from Ground Zero in Phoenix Real Estate!
Today we are going to do something a bit different. I've just gotten back from Maui, and I thought it may be interesting to compare Real Estate in Phoenix to Maui. Two very different markets, but with alot of similarities too.
If you are looking for Real Estate in Phoenix, AZ you have alot more choices than Maui.....prices in Maui cluster in the $300-$600 per SQUARE FOOT range. That means that, in Phoenix Real Estate terms, your 1300 sf home that sells for $120.000 here will sell for $400,000+ in Maui. Ouch. Affordable housing there is considered below $200.000. It's an interesting Real Estate Market. Condos on the beach are less expensive than say, California, but homes inland are more expensive. Go figure?
This also means that you need 3-4 times more for a down payment, AT A MINIMUM. Why? First, higher price equals higher amount down, even with the same percentage required. Second, FHA loans cap out, and you will need to put more money down to bring the loan down to an allowable amount.
For investors, it is interesting to note Maui County's policy on rentals. Quite a bit different than Real Estate in Phoenix AZ. If you are planning to use the home as a rental in Maui, they Double (that's right, DOUBLE, your property taxes. Imagine how THAT would go over in Phoenix.
Phoenix Real Estate is down over 50% from the bubble high of 2005. Maui homes are down about 25-30%. The belief there is that values will continue to drop some more, but in Phoenix not everyone is so sure. Prices in Phoenix have shown signs of stabilization.
In short, Real Estate in Phoenix, AZ has frankly fared more poorly than Maui. That's the bad news. The good news, is that it has created an unprecedented buying opportunity in Phoenix Real Estate. The median value is now down to $140.000. Prices are at 2003-4 levels. Sooner or later, they will return to historical norms, meaning that Real Estate in Phoenix AZ has probably 5-6 years of apprecdiation at the historical norm of 3% to catch up on now. That's 15-20% unrealized appreciation. Now that's a sound buy!
Today we are going to do something a bit different. I've just gotten back from Maui, and I thought it may be interesting to compare Real Estate in Phoenix to Maui. Two very different markets, but with alot of similarities too.
If you are looking for Real Estate in Phoenix, AZ you have alot more choices than Maui.....prices in Maui cluster in the $300-$600 per SQUARE FOOT range. That means that, in Phoenix Real Estate terms, your 1300 sf home that sells for $120.000 here will sell for $400,000+ in Maui. Ouch. Affordable housing there is considered below $200.000. It's an interesting Real Estate Market. Condos on the beach are less expensive than say, California, but homes inland are more expensive. Go figure?
This also means that you need 3-4 times more for a down payment, AT A MINIMUM. Why? First, higher price equals higher amount down, even with the same percentage required. Second, FHA loans cap out, and you will need to put more money down to bring the loan down to an allowable amount.
For investors, it is interesting to note Maui County's policy on rentals. Quite a bit different than Real Estate in Phoenix AZ. If you are planning to use the home as a rental in Maui, they Double (that's right, DOUBLE, your property taxes. Imagine how THAT would go over in Phoenix.
Phoenix Real Estate is down over 50% from the bubble high of 2005. Maui homes are down about 25-30%. The belief there is that values will continue to drop some more, but in Phoenix not everyone is so sure. Prices in Phoenix have shown signs of stabilization.
In short, Real Estate in Phoenix, AZ has frankly fared more poorly than Maui. That's the bad news. The good news, is that it has created an unprecedented buying opportunity in Phoenix Real Estate. The median value is now down to $140.000. Prices are at 2003-4 levels. Sooner or later, they will return to historical norms, meaning that Real Estate in Phoenix AZ has probably 5-6 years of apprecdiation at the historical norm of 3% to catch up on now. That's 15-20% unrealized appreciation. Now that's a sound buy!
Wednesday, March 3, 2010
Win Win Negotiations in Phoenix Real Estate
In todays Real Estate market in Phoenix, AZ, many buyers feel they can offer any price and the seller will have to accept, given market conditions. That was arguably true 2 years ago. Last year, however, was a turning point for Real Estate in Phoenix.
Over the last year, the available inventory of homes on the Phoenix AZ MLS fell by over 40%. Prices stabilized, and actually began rising at the end of the year. Recent statistics show even foreclosure prices have increased almost 2.5 % from Jan 2010 to Feb 2010.
In short, the tides are turning. To get an offer accepted, it needs to be a reasonable offer..."lowball" offers are typically rejected, and if not, usually result in a "retaliatory" counter offer, close to full price.
To ensure success, make it a win-win with both parties feeling they
have been treated fairly.
One of the best reasons to hire a real estate agent is that an
agent represents you and negotiates on your behalf. Agents act as
buffers, negotiators and advisers to help make the purchase process
a pleasurable experience.
When you make an offer, the seller can accept, decline, or counter
it. The best tips to ensure that your offer is accepted include:
1. Be pre-approved by a lender
2. Provide a substantial deposit
3. Limit your contingencies
4. Offer a fair price. Bargain, but realize that in most instances in Phoenix AZ
real estate today, the seller is not desperate.
My goal is to get you the best home under the best conditions at the best price. I will negotiate on your behalf, working hard to help you make a
smart buy.
The best negotiations are those in which the buyer and seller feel
the transaction was fair. The seller gets to move on and you get a
new home!
I'll be happy to answer any additional questions you might have
about the negotiation process. When you are ready to purchase a new
home in the Metro Phoenix, AZ area, give us a call to see what we can do for you.
Over the last year, the available inventory of homes on the Phoenix AZ MLS fell by over 40%. Prices stabilized, and actually began rising at the end of the year. Recent statistics show even foreclosure prices have increased almost 2.5 % from Jan 2010 to Feb 2010.
In short, the tides are turning. To get an offer accepted, it needs to be a reasonable offer..."lowball" offers are typically rejected, and if not, usually result in a "retaliatory" counter offer, close to full price.
To ensure success, make it a win-win with both parties feeling they
have been treated fairly.
One of the best reasons to hire a real estate agent is that an
agent represents you and negotiates on your behalf. Agents act as
buffers, negotiators and advisers to help make the purchase process
a pleasurable experience.
When you make an offer, the seller can accept, decline, or counter
it. The best tips to ensure that your offer is accepted include:
1. Be pre-approved by a lender
2. Provide a substantial deposit
3. Limit your contingencies
4. Offer a fair price. Bargain, but realize that in most instances in Phoenix AZ
real estate today, the seller is not desperate.
My goal is to get you the best home under the best conditions at the best price. I will negotiate on your behalf, working hard to help you make a
smart buy.
The best negotiations are those in which the buyer and seller feel
the transaction was fair. The seller gets to move on and you get a
new home!
I'll be happy to answer any additional questions you might have
about the negotiation process. When you are ready to purchase a new
home in the Metro Phoenix, AZ area, give us a call to see what we can do for you.
Thursday, February 18, 2010
What's Really Happening in Real Estate
Welcome to another "Ground Zero" report on Real Estate in Phoenix Az. I've been getting alot of questions about where we are heading in the coming year. While I don't have a crystal ball, here is what I see coming, in my opinion.
We finished up 2009 with increased sales. Total Inventory of homes was cut by 1/3 to 1/2, depending on the report. While Foreclosures still dominated, and filled the market, buyer demand ate up the extra inventory, and kept prices stable. In fact, from Sept 09 through Nov 09, prices if Real Estate in Phoenix Az rose 3.5%.
The year 2010 is shaping up to be very similar. There are alot of foreclosures still due to come on the market, but I think banks have learned that flooding the market with all of them, at once, is bad for the market, and for them. It is my opinion they will continue to release them at a slower, steadier pace.
Another thing that banks have learned about Real Estate in Phoenix AZ is that fixed up homes sell better, and for more, than trashed ones. I see a trend developing where banks paint and carpet foreclosed homes, and make some repairs as needed, prior to selling them. This way they can sell for more, recouping their costs and then some. Not all banks are doing this, but some are.
And, as I said in earlier blog, 2010 will be a year of short sales. In fact, I had my first situation this past week where a bank came to client of mine, and THEY SUGGESTED A SHORT SALE IN LIEU OF A LOAN MODIFICATION!That has never happened in my experience before, but is a sign of banks being more proactive this year in the Phoenix AZ Real Estate Market, to prevent foreclosures.
Sales were a bit slower in January but February has been strong, and indicators are that they will continue to be for the coming year. Forecasters predict a 5% rise in Metro Phoenix AZ Real Estate prices in 2010,and that, along with predicted higher mortgage interest rates, suggests it is a good time to buy and invest.
We finished up 2009 with increased sales. Total Inventory of homes was cut by 1/3 to 1/2, depending on the report. While Foreclosures still dominated, and filled the market, buyer demand ate up the extra inventory, and kept prices stable. In fact, from Sept 09 through Nov 09, prices if Real Estate in Phoenix Az rose 3.5%.
The year 2010 is shaping up to be very similar. There are alot of foreclosures still due to come on the market, but I think banks have learned that flooding the market with all of them, at once, is bad for the market, and for them. It is my opinion they will continue to release them at a slower, steadier pace.
Another thing that banks have learned about Real Estate in Phoenix AZ is that fixed up homes sell better, and for more, than trashed ones. I see a trend developing where banks paint and carpet foreclosed homes, and make some repairs as needed, prior to selling them. This way they can sell for more, recouping their costs and then some. Not all banks are doing this, but some are.
And, as I said in earlier blog, 2010 will be a year of short sales. In fact, I had my first situation this past week where a bank came to client of mine, and THEY SUGGESTED A SHORT SALE IN LIEU OF A LOAN MODIFICATION!That has never happened in my experience before, but is a sign of banks being more proactive this year in the Phoenix AZ Real Estate Market, to prevent foreclosures.
Sales were a bit slower in January but February has been strong, and indicators are that they will continue to be for the coming year. Forecasters predict a 5% rise in Metro Phoenix AZ Real Estate prices in 2010,and that, along with predicted higher mortgage interest rates, suggests it is a good time to buy and invest.
Thursday, February 4, 2010
Make the Right Move, into the Right House For You
Last time we met, we discussed the one surprising thing to consider when buying a new home. Today, we think about the more day to day things to consider. There are many choices when thinking about buying Real Estate in Phoenix Metro Area:
Home Type: Are you looking for a single family, a multi
family, a condo, an invesment property? Are you looking for a new
construction or previously owned? If you are looking for a
previously owned, how old? There are advantages and disadvantages.
Location: What is your commute? Are you looking for views?
Large or small lot? Close to major streets or off the beaten path?
Size and Floor Plan: How big? How will you live in and use
the space. For example, do you want four bedrooms because you have
three children? Or will you use the extra bedrooms for a guest room
and separate office or hobby space? How you live in and use your
home will determine the size, configuration, and floor plan you
need.
Fixer-Upper: Do you want a fixer-upper? Are you looking
for an investment property? It's a great way to accumulate instant
equity. Consider financing. Beware: the cost may outweigh the
reward.
Special Features: Make sure the home has any special
features you may require, such as RV parking, central air, a
main-floor bedroom, or disability features. Are you looking for a
pool or spa?
Family Space: Family activities often center around the
kitchen, so this may be the most important room in the house.
Larger kitchens are usually better. If the home is a resale, have
the kitchens and baths been updated? How much space do you want in
your kitchen? Do you like the layout? Are new appliances important
to you?
There are a million things to consider when buying a home. You know what the number one consideration usually is, in the end? How does the home "feel" to you. Yes, it has to have all the right components, but in the end, out of the homes that DO have the right components, you pick the one that "feels" like home. So when you are out looking at homes, pay attantion to the various factors that matter, like size, location, etc. Just don't forget to notice how it "feels".
Home Type: Are you looking for a single family, a multi
family, a condo, an invesment property? Are you looking for a new
construction or previously owned? If you are looking for a
previously owned, how old? There are advantages and disadvantages.
Location: What is your commute? Are you looking for views?
Large or small lot? Close to major streets or off the beaten path?
Size and Floor Plan: How big? How will you live in and use
the space. For example, do you want four bedrooms because you have
three children? Or will you use the extra bedrooms for a guest room
and separate office or hobby space? How you live in and use your
home will determine the size, configuration, and floor plan you
need.
Fixer-Upper: Do you want a fixer-upper? Are you looking
for an investment property? It's a great way to accumulate instant
equity. Consider financing. Beware: the cost may outweigh the
reward.
Special Features: Make sure the home has any special
features you may require, such as RV parking, central air, a
main-floor bedroom, or disability features. Are you looking for a
pool or spa?
Family Space: Family activities often center around the
kitchen, so this may be the most important room in the house.
Larger kitchens are usually better. If the home is a resale, have
the kitchens and baths been updated? How much space do you want in
your kitchen? Do you like the layout? Are new appliances important
to you?
There are a million things to consider when buying a home. You know what the number one consideration usually is, in the end? How does the home "feel" to you. Yes, it has to have all the right components, but in the end, out of the homes that DO have the right components, you pick the one that "feels" like home. So when you are out looking at homes, pay attantion to the various factors that matter, like size, location, etc. Just don't forget to notice how it "feels".
Sunday, January 17, 2010
A Surprising Thing to Consider When Buying!!!
It's hard to believe you need to consider your next move before
purchasing a new home! However, it is always smart to shop for a new home with an eye on potential resale value down the road. While I can't predict what the future will bring, here are some simple things you can look for:
Views: Homes with a view often sell for a premium. This can be a
double edge sword as beauty is in the eye's of the beholder. Not
all buyers will place the same premium on views.
Lot Size and Shape: Level or rectangular lots are the most desirable. Much of the value in real estate is in the home, not
the landscape. As a buyer, do not pay a premium for someone else's
landscaping efforts.
Neighborhoods: Buy a smaller house in a nicer neighborhood. Rather
than buy a large home with smaller homes around it, buy a smaller
home surrounded by larger homes. This will improve your
appreciation opportunities.
Closets: Closet space is always an issue.
Kitchens and Baths: A spacious, updated kitchen is among the most
important features in a home. Updated baths are also important.
Garages: The bigger the better.
Backyard Features: Decks and patios generally yield almost a
dollar-for-dollar return.
Remember, what may not matter to you could matter to most other buyers. This is where buyers usually wade into trouble. I'm reminded of a client who wanted to buy a home against a busy street, saying the traffic noise did not matter to them a bit. What they did not consider is that it DOES bother the majority of homebuyers. People that would come to look at their home, when they are ready to sell, would be turned off by the noise. That's why these homes take longer to sell, and sell for 5-10% less than comparable homes, typically. What you don't think about can cost you money!
I'd be happy to answer any questions you have and show you
properties that meet your needs. Please call or email me when you
are ready to look for a new home.
purchasing a new home! However, it is always smart to shop for a new home with an eye on potential resale value down the road. While I can't predict what the future will bring, here are some simple things you can look for:
Views: Homes with a view often sell for a premium. This can be a
double edge sword as beauty is in the eye's of the beholder. Not
all buyers will place the same premium on views.
Lot Size and Shape: Level or rectangular lots are the most desirable. Much of the value in real estate is in the home, not
the landscape. As a buyer, do not pay a premium for someone else's
landscaping efforts.
Neighborhoods: Buy a smaller house in a nicer neighborhood. Rather
than buy a large home with smaller homes around it, buy a smaller
home surrounded by larger homes. This will improve your
appreciation opportunities.
Closets: Closet space is always an issue.
Kitchens and Baths: A spacious, updated kitchen is among the most
important features in a home. Updated baths are also important.
Garages: The bigger the better.
Backyard Features: Decks and patios generally yield almost a
dollar-for-dollar return.
Remember, what may not matter to you could matter to most other buyers. This is where buyers usually wade into trouble. I'm reminded of a client who wanted to buy a home against a busy street, saying the traffic noise did not matter to them a bit. What they did not consider is that it DOES bother the majority of homebuyers. People that would come to look at their home, when they are ready to sell, would be turned off by the noise. That's why these homes take longer to sell, and sell for 5-10% less than comparable homes, typically. What you don't think about can cost you money!
I'd be happy to answer any questions you have and show you
properties that meet your needs. Please call or email me when you
are ready to look for a new home.
Sunday, January 3, 2010
27 Tips to Sell Your Home Fast in the New Year
27 Tips You Should Know To Get Your Home Sold Fast and For Top Dollar
"...discover how to protect and capitalize on your most important investment.."
Because your home may well be your largest asset, selling it is probably one of the most important decisions you will make in your life. To better understand the homeselling process, a guide has been prepared from current industry insider reports. Through these 27 tips you will discover how to protect and capitalize on your most important investment, reduce stress, be in control of your situation, and make the most profit possible.
1. Understand Why You Are Selling Your Home
Your motivation to sell is the determining factor as to how you will approach the process. It affects everything from what you set your asking price at to how much time, money and effort you're willing to invest in order to prepare your home for sale. For example, if your goal is for a quick sale, this would determine one approach. If you want to maximize your profit, the sales process might take longer thus determining a different approach.
2. Keep the Reason(s) You are Selling to Yourself
The reason(s) you are selling your home will affect the way you negotiate its sale. By keeping this to yourself you don't provide ammunition to your prospective buyers. For example, should they learn that you must move quickly, you could be placed at a disadvantage in the negotiation process. When asked, simply say that your housing needs have changed. Remember, the reason( s) you are selling is only for you to know .
3. Before Setting a Price - Do Your Homework
When you set your price, you make buyers aware of the absolute maximum they have to pay for your home. As a seller, you will want to get a selling price as close to the list price as possible. If you start out by pricing too high you run the risk of not being taken seriously by buyers and their agents. If you are pricing too low it can result in selling for much less than you were hoping for.
Setting Your Home's Sale Price
If You Live in a Subdivision - If your home is comprised of similar or identical floor plans, built in the same period, simply look at recent sales in your neighborhood subdivision to give you a good idea of what your home is worth.
If You Live in An Older Neighborhood - As neighborhoods change over time each home may be different in minor or substantial ways and you will probably find that there aren't many homes truly comparable to yourown. In this case you may want to consider seeking a Realtor ® to help you with the pricing process.
If You Decide to Sell On Your Own - A good way to establish a value is to look at homes that have sold in your neighborhood within the past 6 months, including those now on the market. This is how prospective buyers will assess the worth of your home. Also a trip to City Hall can provide you with home sale information in its public records, for most communities.
4. Do Some "Home Shopping" Yourself
The best way to learn about your competition and discover what turns buyers off is to check out other open houses. Note floor plans, condition, appearance, size of lot, location and other features. Particularly note, not only the asking prices but what they are actually selling for. Remember, if you're serious about getting your home sold fast, don't price it higher than your neighbor's.
5. When Getting an Appraisal is a Benefit
Sometimes a good appraisal can be a benefit in marketing your home. Getting an appraisal is a good way to let prospective buyers know that your home can be financed. However, an appraisal does cost money, has a limited life, and there’s no guarantee you’ll like the figure you hear.
6. Tax Assessments - What They Really Mean
Some people think that tax assessments are a way of evaluating a home. The difficulty here is that assessments are based on a number of criteria that may not be related to property values, so they may not necessarily reflect your home's true value.
7. Deciding Upon a Realtor® According to the National Association of Realtors, nearly two-thirds of the people surveyed who sell their own homes say they wouldn't do it again themselves. Primary reasons included setting a price, marketing handicaps, liability concerns, and time constraints. When deciding upon a Realtor® , consider two or three. Be as wary of quotes that are too low as those that are too high.
All Realtors® are not the same! A professional Realtor® knows the market and has information on past sales, current listings, a marketing plan, and will provide their background and references. Evaluate each candidate carefully on the basis of their experience, qualifications, enthusiasm and personality. Be sure you choose someone that you trust and feel confident that they will do a good job on your behalf.
If you choose to sell on your own, you can still talk to a Realtor® . Many are more than willing to help do-it-your-selfers with paperwork, contracts, etc. and should problems arise, you now have someone you can readily call upon.
8. Ensure You Have Room to Negotiate
Before settling on your asking price make sure you leave yourself enough room in which to bargain. For example, set your lowest and highest selling price. Then check your priorities to know if you'll price high to maximize your profit or price closer to market value if you want sell quickly.
9. Appearances Do Matter - Make them Count!
Appearance is so critical that it would be unwise to ignore this when selling your home. The look and "feel" of your home will generate a greater emotional response than any other factor. Prospective buyers react to what they see, hear, feel, and smell even though you may have priced your home to sell.
10. Invite the Honest Opinions of Others
The biggest mistake you can make at this point is to rely solely on your own judgment. Don't be shy about seeking the honest opinions of others. You need to be objective about your home's good points as well as bad. Fortunately, your Realtor® will be unabashed about discussing what should be done to make your home more marketable.
11. Get it Spic n' Span Clean and Fix Everything, Even If It Seems Insignificant
Scrub, scour, tidy up, straighten, get rid of the clutter, declare war on dust, repair squeaks, the light switch that doesn't work, and the tiny crack in the bathroom mirror because these can be deal-killers and you'll never know what turns buyers off. Remember, you're not just competing with other resale homes, but brand-new ones as well.
12. Allow Prospective Buyers to Visualize Themselves in Your Home
The last thing you want prospective buyers to feel when viewing your home is that they may be intruding into someone's life. Avoid clutter such as too many knick-knacks, etc. Decorate in neutral colors, like white or beige and place a few carefully chosen items to add warmth and character. You can enhance the attractiveness of your home with a well-placed vase of flowers or potpourri in the bathroom. Home-decor magazines are great for tips.
13. Deal Killer Odors - Must Go!
You may not realize but odd smells like traces of food, pets and smoking odors can kill deals quickly. If prospective buyers know you have a dog, or that you smoke, they'll start being aware of odors and seeing stains that may not even exist. Don't leave any clues.
14. Be a Smart Seller - Disclose Everything
Smart sellers are proactive in disclosing all known defects to their buyers in writing. This can reduce liability and prevent lawsuits later on.
15. It's Better With More Prospects
When you maximize your home's marketability, you will most likely attract more than one prospective buyer. It is much better to have several buyers because they will compete with each other; a single buyer will end up competing with you.
16. Keep Emotions in Check During Negotiations
Let go of the emotion you've invested in your home. Be detached, using a business-like manner in your negotiations. You'll definitely have an advantage over those who get caught up emotionally in the situation.
17. Learn Why Your Buyer is Motivated
The better you know your buyers the better you can use the negotiation process to your advantage. This allows you to control the pace and duration of the process.
As a rule, buyers are looking to purchase the best affordable property for the least amount of money. Knowing what motivates them enables you to negotiate more effectively. For example, does your buyer need to move quickly. Armed with this information you are in a better position to bargain.
18. What the Buyer Can Really Pay
As soon as possible, try to learn the amount of mortgage the buyer is qualified to carry and how much his/her down payment is. If their offer is low, ask their Realtor® about the buyer's ability to pay what your home is worth.
19. When the Buyer Would Like to Close
Quite often, when buyers would "like" to close is when they need to close. Knowledge of their deadlines for completing negotiations again creates a negotiating advantage for you.
20. Never Sign a Deal on Your Next Home Until You Sell Your Current Home
Beware of closing on your new home while you're still making mortgage payments on the old one or you might end up becoming a seller who is eager (even desperate) for the first deal that comes along.
21. Moving Out Before You Sell Can Put You at a Disadvantage
It has been proven that it's more difficult to sell a home that is vacant because it becomes forlorn looking, forgotten, no longer an appealing sight. Buyers start getting the message that you have a another home and are probably motivated to sell. This could cost you thousands of dollars.
22. Deadlines Create A Serious Disadvantage
Don't try to sell by a certain date. This adds unnecessary pressure and is a serious disadvantage in negotiations.
23. A Low Offer - Don't Take It Personally
Invariably the initial offer is below what both you and the buyer knows he'll pay for your property. Don't be upset, evaluate the offer objectively. Ensure it spells out the offering price, sufficient deposit, amount of down payment, mortgage amount, a closing date and any special requests. This can simply provide a starting point from which you can negotiate.
24. Turn That Low Offer Around
You can counter a low offer or even an offer that’s just under your asking price. This lets the buyer know that the first offer isn’t seen as being a serious one. Now you’ll be negotiating only with buyers with serious offers.
25. Maybe the Buyer's Not Qualified
If you feel an offer is inadequate, now is the time to make sure the buyer is qualified to carry the size of mortgage the deal requires. Inquire how they arrived at their figure, and suggest they compare your price to the prices of homes for sale in your neighborhood.
26. Ensure the Contract is Complete
To avoid problems, ensure that all terms, costs and responsibilities are spelled out in the contract of sale. It should include such items as the date it was made, names of parties involved, address of property being sold, purchase price, where deposit monies will be held, date for loan approval, date and place of closing, type of deed, including any contingencies that remain to be settled and what personal property is included (or not) in the sale.
27. Resist Deviating From the Contract
For example, if the buyer requests a move-in prior to closing, just say no and that you’ve been advised against it. Now is not the time to take any chances of the deal falling through.
"...discover how to protect and capitalize on your most important investment.."
Because your home may well be your largest asset, selling it is probably one of the most important decisions you will make in your life. To better understand the homeselling process, a guide has been prepared from current industry insider reports. Through these 27 tips you will discover how to protect and capitalize on your most important investment, reduce stress, be in control of your situation, and make the most profit possible.
1. Understand Why You Are Selling Your Home
Your motivation to sell is the determining factor as to how you will approach the process. It affects everything from what you set your asking price at to how much time, money and effort you're willing to invest in order to prepare your home for sale. For example, if your goal is for a quick sale, this would determine one approach. If you want to maximize your profit, the sales process might take longer thus determining a different approach.
2. Keep the Reason(s) You are Selling to Yourself
The reason(s) you are selling your home will affect the way you negotiate its sale. By keeping this to yourself you don't provide ammunition to your prospective buyers. For example, should they learn that you must move quickly, you could be placed at a disadvantage in the negotiation process. When asked, simply say that your housing needs have changed. Remember, the reason( s) you are selling is only for you to know .
3. Before Setting a Price - Do Your Homework
When you set your price, you make buyers aware of the absolute maximum they have to pay for your home. As a seller, you will want to get a selling price as close to the list price as possible. If you start out by pricing too high you run the risk of not being taken seriously by buyers and their agents. If you are pricing too low it can result in selling for much less than you were hoping for.
Setting Your Home's Sale Price
If You Live in a Subdivision - If your home is comprised of similar or identical floor plans, built in the same period, simply look at recent sales in your neighborhood subdivision to give you a good idea of what your home is worth.
If You Live in An Older Neighborhood - As neighborhoods change over time each home may be different in minor or substantial ways and you will probably find that there aren't many homes truly comparable to yourown. In this case you may want to consider seeking a Realtor ® to help you with the pricing process.
If You Decide to Sell On Your Own - A good way to establish a value is to look at homes that have sold in your neighborhood within the past 6 months, including those now on the market. This is how prospective buyers will assess the worth of your home. Also a trip to City Hall can provide you with home sale information in its public records, for most communities.
4. Do Some "Home Shopping" Yourself
The best way to learn about your competition and discover what turns buyers off is to check out other open houses. Note floor plans, condition, appearance, size of lot, location and other features. Particularly note, not only the asking prices but what they are actually selling for. Remember, if you're serious about getting your home sold fast, don't price it higher than your neighbor's.
5. When Getting an Appraisal is a Benefit
Sometimes a good appraisal can be a benefit in marketing your home. Getting an appraisal is a good way to let prospective buyers know that your home can be financed. However, an appraisal does cost money, has a limited life, and there’s no guarantee you’ll like the figure you hear.
6. Tax Assessments - What They Really Mean
Some people think that tax assessments are a way of evaluating a home. The difficulty here is that assessments are based on a number of criteria that may not be related to property values, so they may not necessarily reflect your home's true value.
7. Deciding Upon a Realtor® According to the National Association of Realtors, nearly two-thirds of the people surveyed who sell their own homes say they wouldn't do it again themselves. Primary reasons included setting a price, marketing handicaps, liability concerns, and time constraints. When deciding upon a Realtor® , consider two or three. Be as wary of quotes that are too low as those that are too high.
All Realtors® are not the same! A professional Realtor® knows the market and has information on past sales, current listings, a marketing plan, and will provide their background and references. Evaluate each candidate carefully on the basis of their experience, qualifications, enthusiasm and personality. Be sure you choose someone that you trust and feel confident that they will do a good job on your behalf.
If you choose to sell on your own, you can still talk to a Realtor® . Many are more than willing to help do-it-your-selfers with paperwork, contracts, etc. and should problems arise, you now have someone you can readily call upon.
8. Ensure You Have Room to Negotiate
Before settling on your asking price make sure you leave yourself enough room in which to bargain. For example, set your lowest and highest selling price. Then check your priorities to know if you'll price high to maximize your profit or price closer to market value if you want sell quickly.
9. Appearances Do Matter - Make them Count!
Appearance is so critical that it would be unwise to ignore this when selling your home. The look and "feel" of your home will generate a greater emotional response than any other factor. Prospective buyers react to what they see, hear, feel, and smell even though you may have priced your home to sell.
10. Invite the Honest Opinions of Others
The biggest mistake you can make at this point is to rely solely on your own judgment. Don't be shy about seeking the honest opinions of others. You need to be objective about your home's good points as well as bad. Fortunately, your Realtor® will be unabashed about discussing what should be done to make your home more marketable.
11. Get it Spic n' Span Clean and Fix Everything, Even If It Seems Insignificant
Scrub, scour, tidy up, straighten, get rid of the clutter, declare war on dust, repair squeaks, the light switch that doesn't work, and the tiny crack in the bathroom mirror because these can be deal-killers and you'll never know what turns buyers off. Remember, you're not just competing with other resale homes, but brand-new ones as well.
12. Allow Prospective Buyers to Visualize Themselves in Your Home
The last thing you want prospective buyers to feel when viewing your home is that they may be intruding into someone's life. Avoid clutter such as too many knick-knacks, etc. Decorate in neutral colors, like white or beige and place a few carefully chosen items to add warmth and character. You can enhance the attractiveness of your home with a well-placed vase of flowers or potpourri in the bathroom. Home-decor magazines are great for tips.
13. Deal Killer Odors - Must Go!
You may not realize but odd smells like traces of food, pets and smoking odors can kill deals quickly. If prospective buyers know you have a dog, or that you smoke, they'll start being aware of odors and seeing stains that may not even exist. Don't leave any clues.
14. Be a Smart Seller - Disclose Everything
Smart sellers are proactive in disclosing all known defects to their buyers in writing. This can reduce liability and prevent lawsuits later on.
15. It's Better With More Prospects
When you maximize your home's marketability, you will most likely attract more than one prospective buyer. It is much better to have several buyers because they will compete with each other; a single buyer will end up competing with you.
16. Keep Emotions in Check During Negotiations
Let go of the emotion you've invested in your home. Be detached, using a business-like manner in your negotiations. You'll definitely have an advantage over those who get caught up emotionally in the situation.
17. Learn Why Your Buyer is Motivated
The better you know your buyers the better you can use the negotiation process to your advantage. This allows you to control the pace and duration of the process.
As a rule, buyers are looking to purchase the best affordable property for the least amount of money. Knowing what motivates them enables you to negotiate more effectively. For example, does your buyer need to move quickly. Armed with this information you are in a better position to bargain.
18. What the Buyer Can Really Pay
As soon as possible, try to learn the amount of mortgage the buyer is qualified to carry and how much his/her down payment is. If their offer is low, ask their Realtor® about the buyer's ability to pay what your home is worth.
19. When the Buyer Would Like to Close
Quite often, when buyers would "like" to close is when they need to close. Knowledge of their deadlines for completing negotiations again creates a negotiating advantage for you.
20. Never Sign a Deal on Your Next Home Until You Sell Your Current Home
Beware of closing on your new home while you're still making mortgage payments on the old one or you might end up becoming a seller who is eager (even desperate) for the first deal that comes along.
21. Moving Out Before You Sell Can Put You at a Disadvantage
It has been proven that it's more difficult to sell a home that is vacant because it becomes forlorn looking, forgotten, no longer an appealing sight. Buyers start getting the message that you have a another home and are probably motivated to sell. This could cost you thousands of dollars.
22. Deadlines Create A Serious Disadvantage
Don't try to sell by a certain date. This adds unnecessary pressure and is a serious disadvantage in negotiations.
23. A Low Offer - Don't Take It Personally
Invariably the initial offer is below what both you and the buyer knows he'll pay for your property. Don't be upset, evaluate the offer objectively. Ensure it spells out the offering price, sufficient deposit, amount of down payment, mortgage amount, a closing date and any special requests. This can simply provide a starting point from which you can negotiate.
24. Turn That Low Offer Around
You can counter a low offer or even an offer that’s just under your asking price. This lets the buyer know that the first offer isn’t seen as being a serious one. Now you’ll be negotiating only with buyers with serious offers.
25. Maybe the Buyer's Not Qualified
If you feel an offer is inadequate, now is the time to make sure the buyer is qualified to carry the size of mortgage the deal requires. Inquire how they arrived at their figure, and suggest they compare your price to the prices of homes for sale in your neighborhood.
26. Ensure the Contract is Complete
To avoid problems, ensure that all terms, costs and responsibilities are spelled out in the contract of sale. It should include such items as the date it was made, names of parties involved, address of property being sold, purchase price, where deposit monies will be held, date for loan approval, date and place of closing, type of deed, including any contingencies that remain to be settled and what personal property is included (or not) in the sale.
27. Resist Deviating From the Contract
For example, if the buyer requests a move-in prior to closing, just say no and that you’ve been advised against it. Now is not the time to take any chances of the deal falling through.
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