Register Real Estate Advisors

Do you know your agent’s responsibilities?

When I list a property for sale, I always ask my sellers to put a home warranty on their property.  There are several reasons why I encourage my sellers to put a home warranty on their home.  The main reason is that the buyer is going to ask for it in the contract.  They always do!  To be competitive, you need to go ahead and have it on the property so it can be marketed with the property.  I like to use the American Home Shield Warranty, but there are several out there to choose from.  If you want to know how comprehensive the home warranty is, check the policy to see which items are covered.  Be sure to check whether the policy covers the full replacement cost of each item:  plumbing, electrical systems, water heater, furnace, heating ducts, water pump, dishwasher, stove, cooktops, ovens, microwaves, and swimming pool. 

Second reason I encourage sellers to put a home warranty on their properties is because during the buyers inspection, the inspector will find things wrong with the property that are going to need to be repaired.  It saves the seller money during the sell of the home.  Lastly, it protects the seller if something breaks while the home is on the market.  This way the seller does not incur additional expenses while trying to sell the property. 

Home Warranties are like buying insurance for your home.  There is still a co-pay when a service call is made, but it lowers the seller or buyers cost for repairs.

Make your home more appealing for potential buyers with these quick and easy tips.

1.  Trim bushes so they don’t block windows and cute down on light.

2.  Buy a new doormat.

3.  Put a pot of bright flowers (or a small evergreen in winter) on your porch.

4.  Put new doorknobs on your doors.

5.  Put a fresh coating on your driveway.

6.  Edge the grass around walks and trees.

7.  Keep your garden tools out of sight.

8.  Be sure kids put away their toys.

9.  Buy a new mailbox.

10.  Upgrade the outside lighting.

11.  Use warm, incandescent light bulbs for a homey feel

12.  Polish or replace your house numbers.

13.  Clean your gutters.

14.  Put out potpourri or burn scented candles.

15.  Buy new pillows for the sofa.

16.  Buy a flowering plant and put it in a window you pass by frequently.

17.  Make a centerpiece for your table with fruit or artificial flowers.

18.  Replace heavy curtains with sheer ones that let in more light.

19.  Buy new towels.

20.  Put a seasonal wreath on our door.

Reprinted from REALTOR Magazine Online by permission of the National Assocaiation of REALTORS.  Copyright 2005.  All rights reserved.  http://www.REALTOR.org/realtormag

1.  Price it Right.  Set a price at the lower end of your property’s realistic price range.

2.  Get your house market-ready for at least two weeks before you begin showing it.

3.  Be flexible about showings.  It’s often disruptive to havea  house ready to show on the spur of the moment, but the more often someone can see your home, the sooner you’ll find a seller.

4.  Be ready for the offers.  Decide in advance what price and terms you’ll find acceptable.

5.  Don’t refuse to drop the price.  If your home has been on the market for more than 30 days without an offer, be prepared to lower your asking price.

Reprinted from REALTOR Magazine Online by permission of the National Association of REALTORS.  Copyright 2005.  All rights reserved.  http://www.REALTOR.org/realtormag

It’s an objective opinion of value, but it’s not an exact science so appraisals may differ.

For buying and selling purposes, appraisals are usually based on market value – what the property could probably be sold for.  Other types of value include insurance value, replacement value, and assessed value for property tax purposes.

Appraised value is not a constant number.  Changes in market conditions can dramatically alter appraised value. 

Appraised value doesn’t consider special considerations, like the need to sell rapidly.

 Lenders usually use either the appraised value or the sale price, whichever is less, to determine the amount of the mortgage they will offer. 

Used with permission from Kim Daugherty, Real Estate Checklists and Systems ( http://www.realestatechecklists.com ).

Reprinted from REALTOR Magacine Online by permission of the National Association of REALTORS.  Copyright 2005.  All rights reserved.  http://www.REALTOR.org/realtormag

There’s something about the topic of real estate that turns everyone into an expert. Tell a group at a dinner party that you’re selling your home, and you’ll get advice to go along with every course of your meal. Perhaps that’s because many people have bought and sold homes, so they have experience with property transactions. But experience is not the same thing as expertise.

Your friends and family aren’t trying to steer you wrong, but they may be perpetuating a lot of myths regarding successful techniques to sell houses. Here are four common seller misconceptions.

Set your price high to leave room for negotiation

Homeowners fall into this trap all the time. They aim high so they can “come down” on the price when a buyer wants to haggle. And there’s always a chance someone will pay their inflated asking price, right?

A pricing strategy like this backfires more often than not. For starters, many potential buyers won’t even view your property if you value it above their price range. And if your home doesn’t compare favorably to others offered for the same price, you are just helping sell other people’s homes.

Even worse, when an overpriced home sits on the market, buyers wonder what’s wrong with it. Many times, sellers wind up lowering their price below the level that would have attracted a sale had it been priced properly from the start.

You’ll make more money if you sell it yourself

Maybe you will, or maybe you won’t. It’s true: Realtors don’t work for free. Keep in mind, however, that Realtors guide clients through the intricacies of property transactions every day. They know your housing market, and are required to be up-to-date on the latest forms and legal issues. Remember, too, that selling a home requires a great deal of time. You’ll need to hold open houses on weekends and be available to show your home whenever a prospective buyer wants to see it.

Without proper market analysis, you could set the price too low, costing you money. A bungled negotiation would cut into your bottom line, too. Be sure to weigh any hypothetical savings against the time, effort and risk you take by selling the property yourself.

Just paint the front door and plant some petunias

You may think that your house is ready for buyers, but there’s more to preparing your home for the market than beefing up the curb appeal. Houses that show the best allow potential buyers to envision themselves in the homes. The pool table and dart board in your third bedroom need to go, and the room should be reconfigured as a bedroom. You also will want to banish clutter and make repairs that would otherwise deter potential purchasers. Strive for a neutral environment that will appeal to the vast majority of homebuyers.

Not every offer is worth your time

Don’t be insulted if a potential buyer presents an offer way below your asking price. It’s nothing personal, and you’re not required to reduce your price. Some buyers use such offers as a way to start the negotiating process, and it doesn’t take much effort to see if the person genuinely wants to purchase your home.

One caveat about negotiating: When buyers and sellers get close on a sales price, often someone suggests splitting the difference. If a low-ball initial offer caused to you counter with a significant price reduction, meeting halfway later in the negotiations might not be in your best interest financially.

If you’re selling your home, I think you’ll benefit from hiring a Realtor as your advocate. Your Realtor can help you avoid these and other seller mistakes, so you achieve your best outcome.

Whether you’re interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out all of my online resources:   http://BuyandSellwithShannon.com/Sell  and http://BuyandSellwithShannon.com

This article appeared in the Houston Chronicle under Vicki Fullerton’s “Realtor View.”  It has also been posted by Danny Frank on the internet.  Not sure who the original source was, but I like the content and thought you would like it, too.