Posts

1. Think Like A Buyer!

In any kind of sales, products do not sell just because someone had a great idea, or because someone wants to make a lot of money. Products sell because someone figured out what buyers want; how to provide it, package it, and present it. Prices change frequently because someone is keeping tabs on what buyers are willing to pay. They adjust to the competition so that their product is selected and sold. Selling your home is really no different. When considering a sale, ask yourself these questions:

1. Why did you buy your house? This is likely the same reason others will buy it. Make the most of that!
2. What bothered (or bothers) you about your house? It could also be an obstacle for buyers. Can you remedy the issue (i.e. cosmetic fixes) or is it something unavoidable (i.e. easements, gravel road, or the way the home sits on the lot)? If it is the former, consider improving it prior to listing – this is where an experienced Realtors® can help you prioritize these items.
3. How do you judge other homes when you go to Open Houses or tour homes with your Realtor®? Buyers will judge yours similarly. Can you anticipate some objections that may arise? How can they be minimized?

Buyers today are savvy! They have more information, literally at their fingertips, than anytime in history. They know true value and are unlikely to be fooled by any seller. Do you know as much as they do?

As your Realtors® can help. I have worked with all kinds of buyers and have for years. I know how they think and react, and what they want; let me give you the value of our experience!

2. Understand the Market

We live in a market economy. The real estate marketplace is not fictitious nor a fabrication. It is an indisputable and powerful economic force with which to contend. It is more science than art; more objective than subjective. If you understand it, you can prosper. If you do not, it has the proverbial upper hand on you. Uneducated decisions inevitably cost more than just money; in a constantly changing market, lost opportunity and wasted time can have far greater consequences.

As Realtors® we live every day in this particular marketplace; it is our job to understand the market we work in. Trust us to help give you informed advice. It is in both our best interests to get your property sold for the best price in the shortest amount of time.

3. Price, Price, Price!

You’ve heard the real estate battle cry, “Location, Location, Location.” That is the cry of a buyer. As a seller you have no control over this! As a seller the power you have to wield is, “Price, Price, Price.” This is your mantra!

An opportunity to get the quickest sale at the highest price is at the very beginning of a listing. This is when you will have the most showings and genuinely interested buyers. It is also the time you have the

most leverage. But if you price your home unrealistically up front, you run the risk of turning off a lot of very good potential purchasers. Later, you will chronically wrestle to achieve a strong price and presence. Too often opportunities are squandered because of over-pricing.

If you did your best to prepare your property for sale, present your property in its best light, expose it widely in the marketplace, and had a reasonable amount of showings, then the only other issue (that is within your immediate control) is the pricing. The market will speak and is speaking clearly: competitively price your home. A good value sells. This does not mean that an over-priced property will not sell, but statistics show that it will likely be at a deflated price after a longer period of time.

I will keep you fully informed about feedback and changes in the marketplace. We can help you with creative ways to improve your competitive advantage and your value proposition.

4. Patience is a Necessary Virtue

Nobody sells a home for the joy of the experience! The process can be intrusive, unpredictable, turbulent, and frustrating. It is, at times, fraught with personal offenses, anxiety, fear, and disappointment. As Realtors® with extensive background in customer service, it is our desire to minimize these negative experiences for you. Though we cannot control the market, the timing, or the offers which come in, we can and will work wisely for the best results for you.

We have learned to be patient and tolerant with all parties in a transaction (including, but not limited to, other Realtors® and brokerages, other clients, inspectors, lenders, title and escrow officers, etc), yet we will be unrelenting and persistent specifically for your interests. We will not give-up until the job is done nor will we compromise our promises to you. If at any point during the listing we find that we cannot do the best job for you, we will resign our services and set you free to pursue a better alternative.

5. Gambling with Your Biggest Investment

Having prevailed through hundreds of negotiations and transactions (each one seemingly unique with challenges and with many FACTOR’s involved), I am a true believer in real estate representation. In my 23 of experience and having dealt with many ‘For Sale By Owner’ clients. Everyone one of them have told me about the problems they encounter trying to sell their home on their own. Rarely were they successful and in many cases have settled for detrimental terms and conditions, and in addition most have failed, losing at least two years of opportunity on other valuable property opportunities.

Over the years we have all struggled with the decision to use a professional to help us. We have all felt at one time or another, I can save myself that money by not hiring a professional with the experience. In most all cases we have finally learned it is better to trust and hire professionals such as tax accountants, attorneys, teachers, and to follow proven models, listen to those who are experienced in their field, and utilize the expertise and resources of those who know more than we do. Selling a home is one area in which people sometimes underestimate the value of hiring a professional in the field. The industry is constantly changing. Realtors® are required to keep up with the changes. Contracts are long and complicated. Disclosures are there for your protection. The absence of any number of these things could mean money lost and increased your risk for legal exposure.

Don’t gamble on your biggest investment. Let me guide you from start to finish, marking the milestones, minimizing risks, and solving the problems.

I trust that you will find the information provided here helpful as you consider selling your home. These are only a few of the many questions a seller may have, so if your questions weren’t answered here, please feel free to contact me any time.

For many people, home ownership is a reality. However for just as many, homeownership still eludes them and the question, “Why should I own a home” still lingers in their minds.

The benefits of homeownership are not always as evident year round as it may be around this time of year. But around tax time, they seem to jump off the page if you have ever owned a home or have talked to someone who owns a home.

With this article I hope to share some good old fashion financial stability sense that will help both home owners and non-homeowners. This same principals apply for first time homeowner as well as existing homeowner who have equity in a home.

1. Homeownership Builds Wealth Over Time

We were always taught growing up that owning a home is a financially savvy move. Our parents knew it, and their parents knew it. But this past decade of real estate turbulence has shaken everyone’s confidence in homeownership. That is why it’s so important that we discuss this again now that we’re in a ‘new market.’ Homeownership can be a very savvy financial move – but only if people buy homes they can actually afford. In 2014, this idea of sticking to a home you can afford to gradually build wealth is a “rule” that just happens to be new and old at the same time.

2. You Build Equity Every Month

Your equity in your home is the amount of money you can sell it for minus what you still owe on it. Every month you make a mortgage payment, and every month a portion of what you pay reduces the amount you owe. That reduction of your mortgage every month increases your equity. That is especially true now with the elimination of risky mortgages like negative amortized and interest-only loans – thanks to the new “Qualified Mortgage” rules. The way mortgages work is that the principal portion of your payment increases slightly every month year after year. It’s lowest on your first payment and highest on your last payment. Thus, as the months and years go by, your equity grows!

3. You Reap Mortgage Tax Deduction Benefits

• Mortgage deduction: The tax code allows homeowners to deduct the mortgage interest from their tax obligations. For many people this is a huge deduction, since interest payments can be the largest component of your mortgage payment in the early years of owning a home.
• Some closing cost deductions: The first year you buy your home, you are able to claim the points (also called origination fees) on your loan, no matter whether they are paid by you or the seller. And because origination fees of 1 percent or more are common, the savings are considerable.
• Property tax is deductible: Real estate property taxes paid on your primary residence and a vacation home are fully deductible for income tax purposes.

4. Tax Deductions on Home Equity Lines

In addition to your mortgage interest, you can deduct the interest you pay on a home equity loan (or line of credit). This allows you to shift your credit card debts to your home equity loan, pay a lower interest rate than the horrendously exorbitant credit card interest rates, and get a deduction on the interest as well.

5. You Get a Capital Gains Exclusion

If you buy a home to live in as your primary residence for more than two years then you will qualify. When you sell, you can keep profits up to $250,000 if you are single, or $500,000 if you are married, and not owe any capital gains taxes. Now, it may sound ridiculous that your house could be worth more than when you purchased it after these past several years of falling house prices. However, if you purchased your home any time prior to 2003, chances are it has appreciated in value and this tax benefit will come in very handy.

6. A Mortgage Is Like a Forced Savings Plan

Paying that mortgage every month and reducing the amount of your principal is like a forced savings plan. Each month you are building up more valuable equity in your home. In a sense, you are being forced to save—and that’s a good thing.

7. Long Term, Buying Is Cheaper than Renting

In the first few years, it may be cheaper to rent. But over time, as the interest portion of your mortgage payment decreases, the interest that you pay will eventually be lower than the rent you would have been paying. But more importantly, you are not throwing away all that money on rent. You gotta live someplace, so instead of paying off your landlord’s home or building, pay off your own!

Call me if I could help you discover more information.

1. Think Like A Buyer!

In any kind of sales, products do not sell just because someone had a great idea, or because someone wants to make a lot of money. Products sell because someone figured out what buyers want; how to provide it, package it, and present it. Prices change frequently because someone is keeping tabs on what buyers are willing to pay. They adjust to the competition so that their product is selected and sold. Selling your home is really no different. When considering a sale, ask yourself these questions:

1. Why did you buy your house? This is likely the same reason others will buy it. Make the most of that!
2. What bothered (or bothers) you about your house? It could also be an obstacle for buyers. Can you remedy the issue (i.e. cosmetic fixes) or is it something unavoidable (i.e. easements, gravel road, or the way the home sits on the lot)? If it is the former, consider improving it prior to listing – this is where an experienced Realtors® can help you prioritize these items.
3. How do you judge other homes when you go to Open Houses or tour homes with your Realtor®? Buyers will judge yours similarly. Can you anticipate some objections that may arise? How can they be minimized?

Buyers today are savvy! They have more information, literally at their fingertips, than anytime in history. They know true value and are unlikely to be fooled by any seller. Do you know as much as they do?

As your Realtors® can help. I have worked with all kinds of buyers and have for years. I know how they think and react, and what they want; let me give you the value of our experience!

2. Understand the Market

We live in a market economy. The real estate marketplace is not fictitious nor a fabrication. It is an indisputable and powerful economic force with which to contend. It is more science than art; more objective than subjective. If you understand it, you can prosper. If you do not, it has the proverbial upper hand on you. Uneducated decisions inevitably cost more than just money; in a constantly changing market, lost opportunity and wasted time can have far greater consequences.

As Realtors® we live every day in this particular marketplace; it is our job to understand the market we work in. Trust us to help give you informed advice. It is in both our best interests to get your property sold for the best price in the shortest amount of time.

3. Price, Price, Price!

You’ve heard the real estate battle cry, “Location, Location, Location.” That is the cry of a buyer. As a seller you have no control over this! As a seller the power you have to wield is, “Price, Price, Price.” This is your mantra!

An opportunity to get the quickest sale at the highest price is at the very beginning of a listing. This is when you will have the most showings and genuinely interested buyers. It is also the time you have the

most leverage. But if you price your home unrealistically up front, you run the risk of turning off a lot of very good potential purchasers. Later, you will chronically wrestle to achieve a strong price and presence. Too often opportunities are squandered because of over-pricing.

If you did your best to prepare your property for sale, present your property in its best light, expose it widely in the marketplace, and had a reasonable amount of showings, then the only other issue (that is within your immediate control) is the pricing. The market will speak and is speaking clearly: competitively price your home. A good value sells. This does not mean that an over-priced property will not sell, but statistics show that it will likely be at a deflated price after a longer period of time.

I will keep you fully informed about feedback and changes in the marketplace. We can help you with creative ways to improve your competitive advantage and your value proposition.

4. Patience is a Necessary Virtue

Nobody sells a home for the joy of the experience! The process can be intrusive, unpredictable, turbulent, and frustrating. It is, at times, fraught with personal offenses, anxiety, fear, and disappointment. As Realtors® with extensive background in customer service, it is our desire to minimize these negative experiences for you. Though we cannot control the market, the timing, or the offers which come in, we can and will work wisely for the best results for you.

We have learned to be patient and tolerant with all parties in a transaction (including, but not limited to, other Realtors® and brokerages, other clients, inspectors, lenders, title and escrow officers, etc), yet we will be unrelenting and persistent specifically for your interests. We will not give-up until the job is done nor will we compromise our promises to you. If at any point during the listing we find that we cannot do the best job for you, we will resign our services and set you free to pursue a better alternative.

5. Gambling with Your Biggest Investment

Having prevailed through hundreds of negotiations and transactions (each one seemingly unique with challenges and with many FACTOR’s involved), I am a true believer in real estate representation. In my 23 of experience and having dealt with many ‘For Sale By Owner’ clients. Everyone one of them have told me about the problems they encounter trying to sell their home on their own. Rarely were they successful and in many cases have settled for detrimental terms and conditions, and in addition most have failed, losing at least two years of opportunity on other valuable property opportunities.

Over the years we have all struggled with the decision to use a professional to help us. We have all felt at one time or another, I can save myself that money by not hiring a professional with the experience. In most all cases we have finally learned it is better to trust and hire professionals such as tax accountants, attorneys, teachers, and to follow proven models, listen to those who are experienced in their field, and utilize the expertise and resources of those who know more than we do. Selling a home is one area in which people sometimes underestimate the value of hiring a professional in the field. The industry is constantly changing. Realtors® are required to keep up with the changes. Contracts are long and complicated. Disclosures are there for your protection. The absence of any number of these things could mean money lost and increased your risk for legal exposure.

Don’t gamble on your biggest investment. Let me guide you from start to finish, marking the milestones, minimizing risks, and solving the problems.

I trust that you will find the information provided here helpful as you consider selling your home. These are only a few of the many questions a seller may have, so if your questions weren’t answered here, please feel free to contact me any time.