All Financial Matters

Seven Reasons to Use Realtors

Realtors serve a useful purpose in the world of home buying and selling. Selling a home is hard, especially in a buyer’s market. A realtor in your corner can make the difference between a home that sells quickly and one that will spend months on the market. Here are seven reasons to use a realtor when selling your home.

1. They have the knowledge to sell your home. Realtors go through training and certification to be qualified to work in the real estate profession. Many realty companies will not hire a realtor unless they meet the highest of standards for education and experience. These people have the knowledge to give you every advantage when selling your home.

2. They can properly assess the value of your home. It is hard to price your home by yourself. Several factors go into that number. It depends on the trends in the market. In a buyer’s market, homes don’t sell for as much as they are worth because buyers have so many choices of properties to buy. Location is always important when selling or buying a home. A realtor can keep you from asking too much, or selling yourself short by undervaluing your home.

3. They have access to an MLS (multiple listing service). Any home that a realtor represents is put on a master list. This list is available to all realtors regardless of who they work for. The accessibility of the list increases the chances that your home will be sold.

4. Realtors have a network of professionals at your disposal. Realtors recommend other professionals to help sellers market their home. They use appraisers and inspectors that they are familiar with to assess your home. They recommend escrow companies to handle the deal. It is easy to get taken for a ride by unscrupulous people in the real estate industry. The guesswork about who to work with is eliminated by the realtor and their connections.

5. Realtors know the real estate laws. This knowledge is invaluable. You don’t want to jeopardize your deal because of something you weren’t aware you had to do. A realtor can advise sellers up front about what they will need to do as part of the seller’s responsibilities. They will be sure that you make the proper disclosures and that all of the wording in the real estate contract is legal and binding.

6. Realtors represent professionalism. When a potential buyer sees that you have hired a professional they will be less likely to try and put one over on you. They think that the adage that applies to a person representing themselves in courts also applies to real estate: a fool for a client. A realtor dispels those notions and forces a buyer to deal honestly with you.

7. They will stick with you every step of the way. My realtor was a great help when I bought my first home. They are the same when you sell a home. They earn the commission they receive for selling your home. They offer advice for advertising, home dressing, open houses, and contract negotiations. From the day you accept them as your partner, they are available to help make the sale a possibility.

Realtors are a helpful resource when selling your home. Their expertise will play a significant role in how long it takes to sell your home.

Sell My Own Home?

You may be one of a hundred people out there who are trying to decide how they should sell their home. It is not a clear-cut decision. Sellers have the option of using a realtor or selling their home on their own. Here are some advantages and disadvantages to selling a home on your own. Afterwards, you can decide which path is right for you.

Advantages to selling your home on your own

For sale by owner (FSBO) homes are in the minority when it comes to homes for sale, but they do sell. Many people give this option a try because they want to keep their money in their pocket. Normally, when you prepare to sell your home, you find a real estate agent to begin the process.

The agent and their company will receive a percentage of the sale price off the top when they find a buyer for your home. The house is then listed on a MLS listing. If the buyer is represented by a buyer’s agent, you are agreeing to pay them to take your home off your hands.

You can keep this money in your pocket by selling your home on your own. The advice that realtors give to sellers is also things that you can do yourself. You can advertise your home and perform open houses. A seller can research the market to come up with a fair asking price for their home. Use the money that you would be giving to the realty company to beef up advertising and prepare your home for sale.

Disadvantages to selling your home on your own

Now it’s time to look at the flip side of the coin. Real estate agents have a wealth of knowledge and resources at their disposal. They have years of experience selling and buying homes. Each home is different and requires a unique approach. Realtors make their money by tailoring their skills to sell any home.

Real estate lingo is not easy to learn. For a novice, it will require a lot of time spent researching the various components of the selling process: real estate contracts, negotiating a price, determining fair market value for your home, and advertising strategies. What you don’t know can hurt you.

Sellers can make many mistakes when it comes to their home. Some don’t get their asking price because they have undervalued it according to the market. Without knowing the subtleties of negotiations, sellers have been taken advantage of by buyers, especially investors.

Real estate agents have a wealth of resources. They have built relationships with lenders, appraisers, repair services, other agents, and people in the city records department. The information that will help you they can get in an instant from a reliable source. People who sell their own homes are not usually hooked into an extensive network such as this.

Realtors know that it is the first few weeks of a home listing that are the most crucial. A home that is not in prime condition to sell at this time could stay on the market for a long time. With that said, they can set things in motion to sell the home as soon as a buyer is located. They will help you to close the deal and have all of the appropriate documents signed and in place.

Only you can decide which way is best for you. Weigh all your options for an informed decision.

Negotiating your Home Selling Price

Most people prefer to avoid confrontation. This includes negotiating the price of their home. It sends a chill up the spine because you don’t want to make a false move that could result in a failed deal. Don’t start sweating yet. Here are some tips to help you negotiate the selling price of your home.

1. Use a realtor. Realtors know when a buyer is trying to lowball you or taking a hard line. They can look at the offers and tell you which ones to throw out and which ones to look at seriously. Even if the offer is lower than you expected, they can suggest ways to bring up the price. Even for sale by owner properties can use the expertise of a realtor for the negotiation phase of the selling process.

2. Don’t be afraid to make a counter-offer. Most buyers expect that. It is rare that a seller will accept the first offer on the table without making any amendments to the deal. A counter-offer can be made to include certain perks, or as a contingency upon you finding a new place to live. The financing can fall through on the buyer’s end and you don’t want to be tied up if a better deal comes along.

3. Offer to pay some of the closing costs for the buyer. If his offer comes in a little short, paying some of the upfront costs can get him to agree to the price you want. Don’t give up. There is always a way to make a deal sweeter for the buyer.

4. Accept offers from pre-qualified buyers. This means that the buyer has already qualified for a loan of a certain dollar amount and has the funds to back up their offer. This is especially important for people selling their homes themselves. No one wants to work hard on a deal only to find out that the buyer can’t meet the agreed upon asking price.

5. Hire a home inspector and pest control to do the required inspections. Buyers may want to deduct the cost of hiring these professionals from the final price. Beat them to the punch by having qualified people do the work. It is required that sellers make certain disclosures to the buyer. Shouldering the added cost of the inspections and supplying the reports can also get you closer to your asking price. If you live in a condominium, pay to get a copy of the rules and regulations for a potential buyer to review so they don’t have to pay for their own copy.

6. Ask for an earnest money deposit. The deposit will show the intentions of the other party. If they are serious about buying your home, then they will give you the good faith money.

Negotiations are not our favorite thing to do but it is a part of the selling process. Start by doing research on the housing market. Increasing your knowledge also increases your confidence to negotiate a fair selling price for your home.

Listing your Home Online

Online listings have become more popular in recent years. Buyers looking for that special home can see a variety of homes for sale in their area at the touch of a button. They don’t have to drive to every home listed in the newspaper to find just one that fits their needs. Here are some advantages to listing your home on the Internet.

Houses listed online gain greater exposure. Millions of people use the Internet every day. Some are looking for homes to buy and some may not have even gotten that far yet. An Internet listing gives the owner more space to tell all about their home and its features.

There is more space to list essential information. Because newspaper ads are so small, many people abbreviate a lot in their ads. Online, this information can be spelled out plainly with no abbreviations. Buyers want to know more than the number of bedrooms and bathrooms. In this listing, you can include square footage of the house, lot size, heating and cooling information, appliances included, location, address, year of construction, purchase price, and much, much more. Anything that a buyer would want to know about your home can be found here.

In the home description, you can play to the home’s strengths. Don’t just say that you have a fenced back yard. Describe what you can do there. The more activities you name, the bigger the yard will appear. A good rule of thumb is to show and not tell. Let the buyer create a mental picture of the home from your descriptions.

An Internet listing allows you to upload photographs. Take pictures of the outside of the home as well as photos of the home’s proudest features. Photo software can lighten dark photos and crop those that include too much. You can include a photo of yourself and/or your family so that potential buyers can see the faces of the people who live there.

Why not upload a 360 degree tour? I love looking at these. I use them on hotel websites to see rooms before I choose to book with a particular hotel. A virtual tour company can film a tour of your home so that potential buyers can see various aspects of your home online.

Free software online allows users to create flyers to advertise their homes. VFlyer.com has free unlimited use to upload flyers or homes for sale. Your flyer can be copied to Craiglist.org. VFlyer.com also publishes these flyers on other websites frequented by real estate people and those looking for homes.

If you frequent MySpace or YouTube, use these social networking sites to aid in your home marketing plan. Create a video of your home and post it here. Since these sites get lots of traffic you may get calls and hits on your Internet listing site. You can create links on your site back to the videos on YouTube or MySpace.

Online home listings offer great exposure for sellers. Your listing is available to literally millions of eyes, and many of those are looking to buy a home.

Is Home Warranty Needed at Sale?

Appliances will break down at some point. If you don’t want to pay for costly repairs, you invest in a home warranty plan. But as a home seller, do you need a plan when trying to sell you home?

Home warranties are like an insurance policy. You pay them up and when you need them, if you need them, they are in place to help you out. A home maintenance plan is good for people who are not handy around the house and wouldn’t know who to call if repairs were needed.

Home warranties usually cover appliances and systems installed in the house that are subject to a warranty. The owner of the home pays a small fee to the professional who comes to fix the problem, but the rest of the cost is handled by the warranty company. They will pay what is covered by your plan to the professional.

Home buyers can negotiate with a seller to see who pays for the home warranty. You do not need to have a home warranty when selling the home unless you want to ease the buyer’s mind after the sale. It can be a bargaining chip. If a buyer is not quite offering what you want for the house, you can counter with an offer to pay for a year’s contract with a warranty company in exchange for settling on the asking price.

Now, it may not be that easy, but a home warranty is something that a new home owner needs in a pinch. Anything can happen and you might not have $600 just lying around to buy a new part for the furnace. Negotiating a home warranty deliverable at time of sale ensures that the home appliances and such will be covered from day one.

A home warranty plan may run to around $400 a year. Upgrades to the plan will cost you more. The plan does not cover outdoor items, faucets, or pools. If you offer to purchase a plan for the new owners, be sure that it covers refrigerators, washers, and dryers. We use these appliances as much as any of the others but not all plans cover them. In good faith, provide the new owners with a suitable plan that will cover all of their needs.

If the seller already has a home warranty, they can terminate it in favor of a new plan for the new owners. Be sure to check with the home warranty company first to find out what you should do when a policy is already in force for a residence.

The decision is up to you whether or not you want to provide a home warranty or let the buyer choose their own plan. You can still offer to pay for a one year plan when they decide on a policy.