Category Archives: Seller Information

What Realtors Look For to Find Comps

Buyer Information, Seller Information

Comparable homes, or “comps,” are among the most accurate estimations of any home’s value. Realtors find comps and use this information to inform real estate sales or purchases for their clients. When working with home sellers, Realtors find comps to make the most accurate price possible, so the house isn’t priced out of the market and no money is left on the table. When working with home buyers, Realtors find comps to ensure a home is priced accurately and, if it’s not, to make a solid argument for a lower bid. But how can Realtors tell if a home is truly comparable? And how do Realtors find comps?

Location
Location, location, location. It’s one of the most important factors when buying a home, which makes it an equally important factor to accurately find comps. Realtors try to find comps within a half-mile radius of the home in question. This generally means the homes are in the same or very similar subdivisions or neighborhoods.

Locals know that transitions between neighborhoods aren’t always gradual, and this can be tough to tell from a map. Going down the street past a certain building, or crossing the street into another neighborhood can make a big difference in home value. When finding comps, it helps to work with a local expert who understands the unmapped borders between neighborhoods.

Time and Market Conditions
In today’s competitive seller’s market, a lot can change in 6 months. From one year to the next, average home prices can change by as much as 10% or more in any given neighborhood, which indicates a 6 month delay can change the price by 5% or more. On a $200,000 home, that’s a $10,000 change in 6 months. To find comps with truly comparable prices, Realtors look for homes currently listed for sale as well as those that have sold in the last three months.

Actual Sales Price
While you can see what nearby homeowners are currently asking for their home and public records will show previous sale prices, this isn’t the full story. Sellers may make concessions to buyers during real estate negotiations, such as covering closing costs or making repairs, that can adjust the actual sale price. Realtors use their local Multiple Listing Service (MLS), which is maintained and updated by other Realtors, to get a more accurate picture of the real sale price.

Square Footage of the Living Space
Two homes in the same neighborhood that were sold around the same time might still have drastically different prices if they’re not the same size. Unless there’s other big repair problems or key features missing, bigger homes tend to generate bigger prices. To find comps, Realtors look at homes with the same or very similar square footage.

Bedrooms and Baths
Square footage isn’t the only important size factor. Two homes with the same square footage may have different numbers of bedrooms and baths, which will change the functionality of the home and therefore the price. When finding comps in the area, Realtors will compare homes with the same numbers of bedrooms and baths and also consider other functional spaces, like the size of the kitchen or a finished basement.

Updates
Remodeling your kitchen and bathroom, or finishing a basement not only gives you a luxurious space to enjoy, but it also increases the value of your home. This means, to find comps that are truly comparable, Realtors will consider recent updates, and determine how much these updates are worth. If the home in question has had a lot more remodeling than nearby homes, or it’s missing key updates, it can impact the price more significantly. While the MLS lists this type of information, many other home estimators and listing services don’t.

Repairs
Some homeowners want to build equity and don’t mind making some repairs to a home. Others are looking for a move-in ready home and don’t want the hassle of repairs. If the home in question needs some work, Realtors will have to adjust the price accordingly.

Yard and Property
It’s not just the home that attracts homebuyers. Outdoor amenities such as big yards, fences, decks and patios make a big difference, especially for Michigan homebuyers. To find comps within the area, Realtors will also consider outdoor features.

Special Features
A variety of other features can drive home prices up or down. Different areas may have their own special features, such a being close to MSU, parks, shopping or recreational activities. Common house styles, and types of buyers in the market can make certain homes more attractive. The cold winters in Michigan make energy efficiency updates an important consideration. In summer, central air conditioning may be a valuable feature.

View
In a neighborhood located near a lake, wooded area, or another special feature, home values may vary significantly based on how close or how visible the feature is.  A lakefront property, for example, would not be comparable to a lake access property, even if the latter was very similar and located across the street.

To truly find comps that represent your home, it’s important to consider all factors. It’s also important to get local insight, so you’re not comparing homes in neighborhoods that aren’t the same. An online estimator is a good place to start and can help you find comps with baseline similarities. However, to get a more accurate valuation, it’s best to work with an expert.

 

 

6 Things You Need to Know When Selling a House in a Seller’s Market

Seller Information

The seller’s market continues in the Greater Lansing area and in most other areas across the country. In a seller’s market there are more buyers than there are homes for sale, which drives the price of homes up. Every home seller hopes for this, though most don’t take advantage of it as well as they could. So how can you use the seller’s market to maximize your home price? Here’s what you need to know when selling a house in a seller’s market, and how you can compete with the most attractive homes.

1. Know Your Competition
In a seller’s market there are more buyers than sellers, however the best homes will still go faster. Look at comparable homes in your area to see what you need to know about your own home when selling in a seller’s market. Does your home have similar features?

Remember that certain home updates can make a big difference in your home price, and they can be especially tempting to certain buyers. Noticeable visual updates are particularly important to some buyers; a home with a sleek and shiny new kitchen or luxurious bathroom will win over buyers faster than a lackluster space of the same size. If nearby homes have these features, you don’t necessarily have to remodel, but it will be helpful to update these rooms with some modern home design trends. Consider the following when looking at comparable homes:

  • Kitchen or bathroom updates
  • New roofs
  • Pools
  • Yard features
  • Home additions
  • New siding
  • Basement or attic conversions
  • Deck, patio or porch
  • New windows

2. Know Your Negotiation Position
It’s often overlooked, but your negotiating position is important to know when selling your home in a seller’s market. When you know what makes your home valuable and any problems home buyers might point out, you can be ready for anything. This includes homes that are live-in ready as well as fixer-uppers.

Live-In Ready: If your home doesn’t have any major defects, the condition of your home is a major selling point. Tell your realtor about your home’s updates so they can be pointed out to buyers and highlight the updates with staging. If you live in a growing, sought-after neighborhood, a neighborhood with good schools, or other features, add this to your negotiating position as well.

Fixer Upper: When selling a home that needs work, your home’s features, amenities and condition won’t be a major part of your negotiating strategy. However, your neighborhood might be. If you live in an up-and-coming neighborhood, you have good schools, or the properties nearby are significantly more expensive, highlight the potential for buyers to get into a good area and build equity.

3. Know Your Buyer’s
The best thing to know when selling a house in a seller’s market is to know your ideal buyer. Who is looking at your home? There are as many types of buyers as there are types of homes. Knowing who is most interested will help you sell your home faster. You can make an educated guess about who is looking at your home by the location, price, amenities, and condition. Consider the following common types of buyers and ask yourself who will be most interested in your home.

First-Time Buyer: Usually newly married couples, these buyers want a safe neighborhood, but it doesn’t need a lot of amenities, and they’re probably not as concerned with the quality of schools yet. Their ideal home needs some updates but nothing major, has a small yard in a nondescript area, and it’s in a lower price bracket.

Move-Up Buyer: Move-Up Buyers are usually families growing out of their current space. They’re looking for more square footage and more bedrooms, a bigger yard, a safe neighborhood, and good schools. They want to invest time in their growing family, and they’re less likely to take on big home renovations.

House Flipper: These buyers make a business out of buying, improving, and selling homes for profit. They’ll be willing to take on home projects most other buyers won’t. Savvy house flippers will know when a home needs too much work, but a bidding war between competing house flippers is great news for homes in rough condition.

Neighborhood Hunter: This buyer’s number one priority is getting into a great neighborhood. They might be looking for schools, to be close to work, or to build equity in a good community. These buyers are ideal for homes that don’t have the same features as their neighbors.

Relocator: The Relocator is usually moving for a job, and they might be buying a home from a distance. Closing the sale within the right time frame is therefore important to them, and they also want to be in a safe neighborhood that is close to their workplace.

Equity Builder: Equity Builders are very much like House Flippers, except they’ll actually live in the house while they fix it. These buyers are ready for a project, but they draw the line at anything that makes the home especially difficult to live in or sell.

Dream Home Buyers: These buyers are looking for a certain home and, though they have a price ceiling, it’s probably flexible if they can get what they want. They don’t want a project or improvements, and may have specific amenities, square footage, number of bedrooms and other features that must be met.

4. Know What Buyers Think of Your Home
Try to look at your home objectively and see what prospective buyers see. Seeing what buyers see will show you what you need to know when selling your house in a seller’s market and changes you may need to make.

When you live in your house and see it every day, you can become blind to problems that might turn off buyers. If you find it difficult to assess your home objectively, ask your friends for help. Those that don’t live in the house will be able to point out issues you might not see.  Ask your friends about any of the following:

  • Is there any strange odor anywhere in the house?
  • Is the decor modern?
  • Is the space neutral? Can they see themselves living there?
  • What do they immediately notice in each room?
  • Did they notice any cracks, off-color spots, pests, soft spots in the floor, or other issues?
  • What features do they especially like?
  • Would they want to live in this home? Why or why not?

5. Know When to Sell
Timing is an important thing to know when selling a house in a seller’s market. Spring and summer are ideal times to put your house for sale, since there are more buyers and your home will look more attractive. Remember, to sell your home in the spring or summer, you should have all preliminary steps completed by the end of winter. If you are buying a home contingent on the sale of yours, you’ll want to coordinate preliminary buying and selling activities well in advance to get the timing right.

You don’t always have complete control over timing, and you can still successfully sell your home in the fall or winter if necessary. There are fewer homes on the market in the fall and winter and buyers during this period generally need to move, so they’ll be more serious. If other nearby homes repeatedly upstage you and steal your offers, it may be helpful to sell in the winter when the real estate market is slower.

6. Know Your Price Points
Whether you have a large home with the latest amenities or a small fixer-upper, finding the correct listing price is one of the most important things to know when selling a home in a seller’s market. Your home’s listing price should be accurate, but it should also be priced with your buyers in mind. Remember that most buyers start their home search online within a price range, and where you set your price will determine which searches you appear in.

Most buyers set their price caps at round numbers like $100,000, $200,000 or in between at $150,000. If your home is just over these numbers at $107,000 or $155,000, you may be missing a pivotal group of buyers. Contrastingly, if your home is set just under these price breaks, like $99,000 or $148,000, your home will look like a bargain, which can set off a bidding war. Ask your realtor about your ideal buyers, their price ranges, and comparable homes in the area to find the perfect listing price.

A seller’s market means you have the advantage and you have a chance to get the maximum value for your home. But some homeowners take a seller’s market for granted; they don’t prepare and end up leaving money on the table.  What to know when selling a house in a seller’s market can make a difference between maximum and average value.

 

The Pros and Cons of Selling Your Home “As Is”

Seller Information
The Basics: What Is “As Is?”

Selling a home “as is” doesn’t automatically mean the house is in bad condition. It’s a legal term meaning you’re not making any repairs or providing any warranties; the buyer gets the home exactly as it is, in its current state. Buyers may still ask you to make repairs, but you can refuse.

This doesn’t mean you’re exempt from disclosures, though. You still must disclose any issues about the property to the best of your knowledge. Different states have different laws governing real estate disclosures, and Michigan law states that sellers must fill out a disclosure form. The disclosure form covers everything from appliances to roofs to basements to sump pumps and more. If you know about problems with any of the items on the form, it’s unlawful to conceal them.

Pros of Selling Your Home “As Is”

SELLER’S MARKET
Real estate market trends in 2018 support a seller’s market in Michigan, which can make affordable homes hard to find. This high-priced, competitive market makes buying a fixer upper a more attractive option to many buyers. Though selling a home “as is” will drive down the price, it won’t make as big of an impact when affordable homes are hard to come by.

NO REPAIR COSTS
When you make it clear that you’re selling your home “as is”, it’s generally understood you won’t be making any repairs. If your home needs a new water heater, roof, or other expensive repairs that simply aren’t in your budget, you don’t have to figure out how to afford them. Though the costs of repairs will drive down the sale price of your home, you can still profit from the sale.

EASIER SELLING PROCESS
Selling a home “as is” takes a lot of responsibility off the seller. If you’re not able to take on pre-sale inspections, repairs & renovations, staging, open houses,  and other preparatory stages, selling your home “as is” can make the process easier.

Cons of Selling Your Home “As Is”

LOWER SALE PRICE
A lower sales price is the biggest drawback of selling a home “as is”.  Obviously, the home won’t get the same sale price as the fully inspected, fully repaired and remodeled competition. The severity of the damage will determine how much lower the sale price ultimately is.  A real estate agent can help you lower your home’s list price fairly if you’re not sure.

BUYER DISTRUST
Sellers are required to disclose problems, but buyers know that not everyone follows the law. That means some buyers will expect damages that aren’t there and will lower their offer based on problems that don’t exist. Getting past this distrust is possible, but it can be a significant barrier.

LIMITED BUYERS
Fixer uppers attract buyers ready for a project, but many other buyers won’t be interested. If the necessary repairs are significant, the condition of the home might make it difficult to get financing, which will drive away all but cash buyers.

HAGGLING
Seasoned home flippers make a business out of selling fixer uppers, and these industrious buyers will probably make an offer as low as possible.  With buyers starting at low-ball prices, you’ll have to bring sharp negotiating skills to the table to keep the buyer interested and still get a good price. If you’re not sure about this step, bring an experienced real estate agent into your corner to help.

Selling a home “as is” isn’t the best option for everyone, but it can make the home selling process easier in some cases. If you’re not sure whether to sell your home as is or pursue a traditional sale, ask a realtor. Experienced real estate agents have worked with all types of home sales and can point you in the right direction based on your home and your needs.

 

How Long Should You Own a House Before Selling?

Seller Information

If you purchased a starter home and are now considering moving up, you may wonder how long you should own your house before selling. While it’s impossible to know for sure what market conditions will be like in the Greater Lansing area in five or ten years, trends and calculations can help you make an informed decision.

5 Factors to Decide How Long You Should Own Your House Before Selling
Answers to this question vary because there is no one-size-fits-all for how long you should own your house before selling. This depends on your mortgage, capital gains, closing costs, equity, market conditions, and your own circumstances.

1. Your Mortgage
If you want to make money on your home sale and upgrade to a bigger home, the sale price must be greater than your remaining mortgage. During the first few years of your mortgage, you’re paying far more in interest than the principle. This makes it difficult to make money on a sale in under five years. However, if you purchased a more modest home with a larger down payment, you probably have a smaller mortgage amount and interest rate. With this arrangement, you can sell your first home faster and make a profit.

2. Capital Gains Tax
Regardless of other factors, it’s best to live in the home at a minimum of two years before selling. If you live in your home as a primary residence for at least two of the five years prior to sale, you can exclude $250,000 ($500,000 for married couples) of the profit from your sale.  If you don’t live in your home for at least two years,  you’re generally not eligible for a capital gains exclusion.  This means you must report any profits (sale price received minus sale price paid and expenses) from the sale on your taxes and deduct capital gains tax at a rate dependent on your income.

3. Equity
You build home equity when you pay off the principle on your mortgage or when you make improvements to the home that increase its value. How much equity you’ve acquired depends on your mortgage and on renovations or remodeling you’ve done. If the first home you purchased was already in pristine condition, it’s difficult to build sweat equity. However, if you remodeled the bathroom or kitchen, added a deck, refinished the floors, finished the basement or made other improvements, you’ve increased the home’s value and gained equity. You can conduct these projects quickly or slowly, but it’s best to take on projects that maximize your investment before selling.

4. Market Conditions
Real estate markets have highs and lows that tend to follow an 18-year pattern. If you purchased your home during a recession such as that between 2008 and 2013, selling now while the markets is at a sales peak may maximize the home’s value. However, if you purchased a home later during the recovery stage, such as around 2014 to 2016, selling too soon could cause you to lose money.

5. Buying and Selling Costs
The costs of buying and selling are an important, often overlooked, factor when determining how long you should own your house before selling.  When selling your home, a qualified realtor will generally require a commission of 6%. When buying a new home, you’re likely to pay closing costs between 3 and 6% of the new home’s price. Calculate these expenses first to know how much you need to sell your original home for to cover the costs of your new one.

Besides market trends and equity calculations, you also need to consider your circumstances. If you’re moving to be closer to a job or your family, other calculations may be less important. If your family is growing and you need more space, you may not have time to wait. However, if you have time to consider all your options, making these calculations can save you money in the long run.

Why Homebuyers Pass Up Good Homes

Seller Information

Selling your home takes hard work and commitment to get it ready to impress buyers. While you can’t control the market, you can control your home’s appeal. Don’t let the following reasons make buyers pass on purchasing your home.

  1. Price:  If you price your home too high, the right buyers won’t see it, and the ones who do see it will quickly realize other homes in the same range offer more value.
  2. Clutter:  If your tables are full to the edges with photos, figurines, mail and coffee cups, buyers will be more focused on trying not to break something than considering your home for purchase. Too much stuff makes it confusing for buyers to see the rooms clearly, so they’ll move on to a clearer choice.
  3. Deferred maintenance:  Buyers really want a home that’s been well-maintained, so it’s your job as the homeowner to keep your home in good condition. You don’t want buyers wondering what needs fixing and at what cost.
  4. Outdated décor:  The reason people are looking at your home instead of buying brand new is because of cost and location. They want your neighborhood but not a dated-looking home. Take popcorn ceilings and flocked wallpaper down. Replace carpet with an upgrade or perhaps hardwoods.
  5. Smells:   There’s not a buyer in the world who will buy a home that smells like pets, dirt or water damage. If you get an offer at all, it will be low and contingent on a positive inspection.

Three Ways Buyers Choose Homes

Seller Information

Buyers generally have three criteria for selecting the home they ultimately purchase.
These include  PRICE, CONDITION, and LOCATION.  Play these up to get your home sold quickly and for the best terms.

Make the price attractive:  Don’t price your home where you think it should be but instead, price it close to or slightly below market value. This strategy gives buyers the opportunity to compete for your home, and it could possibly sell above list price.

Make the condition move-in ready:  Keep in mind that many buyers are stretching their financial limits to afford your home. Buyer’s pet peeves are usually easy items to fix.  You don’t want your house to be disregarded because you failed to paint, mow, replace the carpet, fix leaky faucets, etc.  Your goal is to make buyers feel like they don’t have to do anything but move in.

Make the most of your location:  You can’t do much about your home’s location but you can make your home more attractive with lovely landscaping, fences to block out ugly views and sounds, and an outdoor entertaining area.  If your home is on a busy street, point out the easy access to amenities, like walking to the grocery store.

If these three criteria aren’t in alignment, you definitely don’t want to overprice.  Buyers expect to pay more for a great location near schools, transportation, shopping and restaurants but if you overprice, they will scrutinize the location and the condition more closely.

 

9 DIY Home Projects That Increase Sales Value

About the house..., Seller Information

When purchasing a home, you’ll probably have a list of must-do projects in mind. It’s difficult to find a home that fits your style and taste perfectly. When making updates to your home, however it’s important to keep the home’s long term equity in mind. You don’t want to spend your life savings on projects that don’t have an impact on your home’s resale value, and place it at a price tag too high for the neighborhood. One of the easiest ways to keep the costs of projects down are by taking matters into your own hands.

1. Paint Walls
The first and most straightforward DIY home project is painting. There are a variety of tools available for DIY painting including edging tools, and one-coat paint that includes primer that make painting your own home easier than ever before. By putting in some sweat equity, you can completely transform your home at a low cost. To build equity, make sure the paint colors you choose are neutral to appeal to the largest number of homebuyers.

2. Install or Paint White Trim
The trim is another area of your home that can be completely transformed with a coat of paint. Although this can be a tedious DIY home project, it’s one that can modernize and brighten your home making it easier to sell. By painting the existing trim in your home white, you can complement the bright neutral paint colors you’ve painted throughout the spaces in your home. If your home doesn’t have trim, adding trim can also build equity. Adding trim and other decorative trim work, such as wainscoting, can make your home appear higher end on a budget.

3. Resurface Countertops
A complete kitchen remodel isn’t always in a homeowner’s budget. Even if it is an affordable option for you, it might not always make sense in terms of building equity. The worst thing you can do to your home is make it worth far more than the comparable homes in your surrounding neighborhood. One of the DIY home projects that can completely transform your kitchen however, aside from paint on the walls and cabinets, is resurfacing countertops. There are a ton of different ways that you can resurface your countertops by yourself. You could follow a plan for how to build butcher block countertops, or update your existing laminate countertops with new laminate, countertop paint or heavy duty contact paper coverings that are on the market today.

4. Modernize Fireplace
Your fireplace is the focal point of your living room and is a major selling point for home buyers. Old styles, like red toned brick and oak mantles are found in many homes but doesn’t necessarily appeal to today’s homebuyers.  Another one of the most rewarding DIY home projects you can complete is modernizing your fireplace. Start by using paint to whitewash or refinish brick. You can even completely change the style if it makes sense with your home decor by using stucco and other materials. Once resurfaced, modernize the mantle by creating an updated wood stained piece that can fit directly over the existing mantel or simply using paint. This DIY home project, along with the corresponding paint on the walls can completely transform the look of your living room without the large price tag.

5. Refinish or Replace Floors
Floors complete a home by making cohesive spaces. Updating floors can have a huge impact on building equity. Especially if you save money by making it one of the DIY home projects that you work on. One option for transforming your floors, especially if they’re wood, is to resurface them. You can rent a floor sander and take off the existing finish completely to prep them for a new stain throughout your home. If you have carpet or tile in your home, you can also make them look brand new using a carpet shampooer or grout cleaner. If your floors are beyond repair, replacing your floors is fairly easy with the products that currently exist. By opting for a laminate wood, for example, you can find products that physically snap together making it a doable DIY home project.

6. Build a Deck
Building equity isn’t only reserved for the inside of your home, sprucing up your outdoor space can make a huge impact as well. There are plenty of deck plans that you can find or purchase to build your own deck or porch. Although this obviously requires a set of power tools and knowledge about how they work. This is a DIY home project that will take some time, but will be well worth the return, especially by saving money on labor costs.

7. Upgrade your Exterior Doors
Exterior doors can not only tie together the look of your home, but also help immensely with your home’s efficiency. Updating the major exterior doors is a DIY home project that you can do on your own by taking proper measurements and purchasing a new door that fits in the same space. Opting for a modern door with a bright paint color can enhance your curb appeal making your home more desirable for homebuyers.

8. Update Light Fixtures
Another one of the simplest DIY home updates you can do is to update all of the light fixtures in your home. Opting for modern chandeliers for dining rooms, pendant lights in the kitchen and new updated hallway light fixtures can brighten and modernize your home in a cohesive way. Most light fixtures can easily be swapped out by following the instructions provided in the new light fixture and connecting the existing wires. New light fixtures are the focal point of each room, and can be the perfect finishing touch for a homebuyer.

9. Waterproof Basement
Finally, updating your basement is another DIY home project you can take on. One of the biggest fears of homebuyers is purchasing a home that has a wet basement. If you have an unfinished basement, you can make it more appealing by using waterproofing materials, like heavy duty waterproofing paint to finish off surfaces that may be susceptible to moisture. For example, covering concrete floors with waterproofing paint can make the space feel cleaner and can be a major selling feature for homebuyers.

Overall, these 9 DIY home projects take a range of time and sweat equity, but are well worth it in the end. They’ll ensure that your home looks great and is more efficient without breaking your budget. This will ultimately help you save money, giving you even more return on your investment. Sometimes, taking matters into your own hands through DIY projects can have a large return in the long term.

Four signs your home’s list price may be too high

Seller Information

Housing inventory is low!  Mortgage money is available!  Interest rates are low!  The Lansing area is in “Seller’s” market!  So, why is your home not selling?

Overall, there are a variety of factors that can cause your home to not get any offers. However, by doing some investigation and keeping the following warning signs in mind you’ll be better equipped to know when it’s time to lower your home’s list price. 

 1. You’ve received multiple “low ball” offers
The first telltale sign that your list price is too high is if you receive multiple offers that you perceive as low ball offers. Receiving one or two low ball offers is expected in a buyer’s market where there is plenty of inventory. However, receiving low ball offers in a seller’s market could mean that your list price is too high. Don’t panic. Repeated low ball offers provides an opportunity to assess the offers that you’ve received to see what range they fall in, and adjust your list price accordingly to be more competitive. 

2. There’s been high traffic but no offers
Another sign that your list price is too high is if you’ve had a ton of traffic at open houses and through private showings, but still have yet to receive an offer. High traffic means that at first glance your home is appealing enough for buyers to check out. If there isn’t a major problem that is scaring buyers off, it could mean that the list price is simply too high. Lowering your list price could put you in a position of receiving multiple offers from interested buyers, driving up the price of the home through competitive bidding.

3. Comparable homes have much lower list prices
One thing you and your agent should always keep an eye on is if comparable homes come up in your neighborhood. As this begins to happen, you could notice that your home is priced much higher than comparable homes in your neighborhood. This is another sign that your list price could be too high and scaring off buyers. Adjusting your home’s list price as more comparable listings become available will make your list price more competitive.

4. Your home has been on the market for multiple months
A final sign that your list price is too high is if your home has been on the market for a long period of time. This is especially true during the current seller’s market with low inventory and a surplus of buyers. Lowering your list price could make your home more appealing to potential buyers and help get your home sold.

 

Why you need a Realtor in the Digital Age

Buyer Information, Seller Information

As the digital world evolves, there are a wide variety of resources online to aide your home buying or selling process. Because of the large array of tools available, and mostly for free, there can be some questions as to whether or not a Realtor is really necessary. Regardless of the tools available however, Realtors are extremely helpful and a necessary part of selling or buying a home in 2017.

1. Realtors have access to potential homes before anyone else
When searching for a new home, especially when the market is a strong seller’s market, it can be challenging to find the time to look at potential homes before they’re swiftly off the market again. That’s why a Realtor can be an incredibly helpful tool. Realtors will have access to homes immediately, and sometimes even before they hit the market. This gives them a chance to assess their customer’s needs and exclusively show them homes before others have the chance to submit offers. Realtors have strong relationships with other Realtors and community members making this a possible option during your home search. If you were to forego a Realtor, the chances of you having access to potential homes wouldn’t happen nearly as quickly, dragging out your home buying process even more.

2. Realtors know the ever-changing market
A large piece of buying or selling your home is to be able to assess the state of the real estate market. Understanding the state of the market will give you imperative information about when the best time to list your home or search for homes is. For example, during a seller’s market where there are a ton of buyers and low inventory, this is a great time to put your home up for sale to get top dollar. Seeking the assistance of a Realtor will help you expertly assess the market and will give you key information about when the right time to buy or sell is. This will help you get top dollar for your current home, or buy a home at a great price.

3. Realtors have expert negotiation skills
When purchasing a home, it can be overwhelming to consider potential work that needs to be done. On the other hand, when selling your home you want to get top dollar in order to afford your next house. Hiring a Realtor will help you get more house for your money or a higher price for your home by using their expert negotiation skills. Realtors who are experienced consider many factors, including past experiences, when finding a fair price for a home and know how to negotiate with other Realtors. Not all negotiations are straightforward monetary negotiations either. For example, let’s say you’d like to purchase a home but the carpet throughout the home is in bad shape. A Realtor will be able to, in this instance, negotiate either a lower price for the home or updated carpet as a contingency for the seller. These case by case situations are commonly identified by qualified Realtors, making them a valuable resource for your home search.

4. Realtors handle the behind the scenes work for you
Another reason to hire a Realtor in 2017 is for the work they do behind the scenes. There are many steps that take place throughout the process of buying or selling a home that a Realtor handles throughout the process. They will typically have relationships with mortgage lenders, title companies and other Realtors which will help them aide you throughout the entire process. There are many pieces of crucial paperwork that are ultimately required throughout the process from the initial seller’s agreement to lead based paint disclosure agreements for example that a Realtor knows like the back of their hand. Without their help it can be extremely cumbersome to ensure each detail is taken care of on your own.

How a Realtor’s Market Analysis and an Appraisal Differ

Buyer Information, Seller Information

property valueEstablishing a home’s market sales price is equally important to buyers, sellers, lenders and real estate professionals. To help transactions proceed quickly and efficiently, Realtors and appraisers both utilize information from the local Multiple Listing Service (MLS).

The MLS is a professional member-based cooperative that contains a wealth of information including active listings, homes that have recently sold, tax roll data, historical data, and market trends such as how quickly homes are selling and how close they sell to the original listing prices.

Using this data, licensed real estate professionals prepare a comparative market analysis (CMA) to help sellers choose a listing price for their homes and to help buyers make offers. The CMA is a report that includes recently sold homes and homes for sale that are similar to the seller’s home in location, appearance, features, and general price range.

If the buyer is receiving financing through a bank, the bank will order an appraisal, using the same MLS data, but with some differences. A bank appraisal is performed by a licensed appraiser to determine market value. Comparable homes similar to those in a CMA are used to compare physical features, property tax records and recent solds to determine whether values are trending up or down.

In short, the CMA introduces consumers to the ever-changing marketplace of homes for sale and those properties that have recently sold. The appraisal determines market value for the bank so that the bank doesn’t lend too much money on a single property. Together, CMAs and appraisals help consumers buy and sell homes.