subject: Real Estate Transactions [print this page] Real Estate Transactions Real Estate Transactions
I would like to start off by giving you a little history of my experience. I have been a real estateinvestor for over 20 years, purchasing properties from rehabbing towholesale,retail and buy and hold for rental income. I manage all of my own properties and have managed other investor portfolios as well. I am a Realtorin one of SouthernCalifornia coastal/ seaside communities.
My group has spent quite a time bit doing research on the 7 Biggest Mistakes that Seller's make when selling their home. Keep in mind the intent is not to offend anyone, insteadrather to educate those homeowners that are thinking about selling and really want to get their home SOLD quicker than the house down the street. For the most part, home sellers need advise, ask good questions and usually follow the advise of the professional Realtorsthat they have hired.While this topic applies to allindividuals selling a home in the U.S., I'mputting the emphasistowards the 12% of sellers who have a different idea of what it takes to actually sell a home in today's market.
Mistake #1. Not Hiring a Realtor
We don't meanif you are a"For Sale By Owner." Sure trying to sellyour home yourselfmight seem like a great idea but when that doesn't workand you are searching for someone to sell your homeit's important to know that not allreal estate agents area member of the National Association of Realtors and in this state -California Association of Realtors. What's the difference, you might ask?
Realtors are held to a higher standard of ethics than non-members and in addition are afforded better resources for helping them with their profession. The most popular reason why real estate agents are not Realtor's is because they don't want to pay the fees and adhere to the standards. This is where you will find that most agents that aren't Realtors could be working only part time and have a full time job doing something else.
Advise: Don'tlisten toyour best friends cousin or the guy down the street that claims to sell 50 a month.If they aren't a member of the Association of Realtors, walk away. Anyone committed to the business will go the whole distance. I have heard many arguments as to why some real estate sales people aren't Realtorsand they all sound too much like they didn't want to spend the money or they didn't want to be held to a higher standard.
Mistake #2. Not Hiring the Right Realtor
Now that you have identified aqualified the real estate professional as a Realtor then you need to ask the key questions that will actually qualify this person to handle the sale of your home.
Advise: It seems like there is a Realtor on every street corner so how do you know if you are hiring a good one.Interview them just like you would for a job at a Marketing company.You can find the interview questions by visiting www.yourstreetdreams.com
Misktake #3. Not preparing the Home For Sale
What this means is simply,organize the home so that is in a presentable condition. Since the competition is tough and you may be competing against homes that have newer appliances, a more modern look or lower priced homes then the single most important thing you can do is stage the home. Like we discussed in the staging section it doesn't have to be expensive but it is always effective. Advise: Don't confuse staging with spending $1000 or dollars.New paint, shampoo carpeting, remove clutter and pictures of the family. Very simple to do and it affords big rewards.
Mistake #4. Not Reviewing the Correct Comps When Pricing Your Home.
Any real estate professional and true real estate investors have seen sellers price their homes too high and thenfollow the market all the way down to a disappointing end. It's totally natural for a homeowner to want to get top dollar for their home, however,here's where things usually go bad. The home is overpriced compared to its condition and/or location. Testing the waters is great (trying a higher price to see if you get any response), however, reducing the price too late can sometime cost thousands of dollars and months of lost time.Advise: Try to view your home from the buyer's viewpoint. The important tip here is: Price your home correctly to start with and make price adjustments every 16-21 days or sooner if the market is falling faster or your reductions have not been effective.
Mistake #5. Limiting the Home's Showing Times.
This has been the reason for many homes not being sold. Remember the golden rule, "If you want to sell your home make sure it's available at theconvenience of the buyers". That means if you only want it shown between 3:00 PM and 7:00 PM Monday and Thursday and limited times on the weekends when buyers are out in full force, then chances are your home will be on the market longer and could sell for less because there will be buyers previewing the other homes in the area PLUS, in a declining market the limited showings could end of costing $1,000s.Advise: The two words that comes to mindare BE FLEXIBLE!Sure it's a hassle but don't drag it out for 10 moreweeks than it could have been.
Mistake #6. Taking a Low Offer Personal.
Many a homeowner has been furious over buyers writing offers less than the listing price and in fact we have seen sellers reject full price offers because the buyers made them angry with one or two lower priced offers before agreeing to a reasonable offer. Remember, everyone wants a good deal and the buyers usually don't knowthe sellerand just as you might test theselling pricewhen first listing the hiome, they too will test the waters to see if you accept less. This is a business transaction and try not to take the negotiation personal. The Realtor should be the calming buffer in the transaction.
Advise: If you have hired a good Realtor then they will help you bring the buyer's price up with a few tricks of the trade.
Mistake #7. Taking the Ceiling FansWhen you Move.
While the ceiling fans are the reference point here there are other fixtures that should stay with the house. Unless otherwise stated, anything that is attached by permanent means should stay with the house. Too many times we see beautiful ceiling fans, light fixtures, curtains, fireplace mantel all disappear when the sellers move out. Imagine what a shock that can be to a buyer who expected those items to be part of the house. Here comes small claims court. So what do you do if you want to keep your most treasured possessions. Advise: Either remove them and replace with other fixtures before you start showing your home or make sure it is stipulated in the listing agreement that these do not convey with the sale of the home. It's up to your Realtor to ensure that gets in the MLS and everyone is on the same page. The end of the transaction is supposed to be a postive experience for the buyer and seller.
