I usually write about the things you should do when you want to sell or buy a home. Sometimes there are suggestions mixed in about what not to do and that's the foundation of this week's column. It's pretty easy to get caught up in looking forward to where you're going to relocate next when your home sells. However, let's not put the cart before the horse—Most of the time sellers—need or want to sell their current home in order to make that transition into the new one.
With that in mind, let's take a look at some of the mistakes sellers make when they put their home on the market.
Not Using Experts. This tip really applies not only to selling a home but also to financial investing, building a business, or anything else that requires expertise. Of course, you can sell your own home and some people do; but many times the headaches that go along with it far outweigh the benefits. Frequently, I hear stories from homeowners who attempt to do this, but months later that those same sellers are trying to locate a qualified real estate expert. Their self efforts effectively slowed their sales process and lost time on the market.
As a business owner, I subscribe to the understanding that I need to always be doing the things that are in my highest and best interest. That means that if I am attempting to handle something in a field where I don't have expertise, it will take me longer to do what someone else with years of experience can do better and faster. When I bring in those experts and allow them to help me, this leaves me with more time to focus on the important things that I need to do. It's the basic foundation of good business and it works when selling a home as well. So, at least consult with a real estate expert when you're considering selling your home.
Getting Emotionally Attached. Sounds like I'm talking about a relationship? Well, it kind of is. You've had history with your home—the memories cause you to have an emotional attachment with it. But now, you have to detach and recognize that your emotional attachment will likely not transfer to the buyer—at least not right away.
Buyers will come into your home looking to find out what's wrong hoping to thereby negotiate the price down. They'll be skeptical—checking all around the house to make sure that they're not going to buy the home and end up having to deal with burdens of many flaws later. They won't have the memories of the kids taking their first steps in the living room or the big celebration you had for grandma. Buyers will possibly think about the parties and how their lives can fit into this house if you've removed the items that make it look and feel too much like your home.
When you get emotionally unattached you're allowing yourself to see the home you're listing for sale the way a potential buyer might.
Holding Your Own Open House. This one really goes hand-in-hand with the first "don't do" tip. Some sellers like to be around when their home is on the market. However, I suspect you have better things to do than sit at home while potential buyers explore your house.
Making fish and other smelly foods. Okay, so I'm not saying that you can't cook what you want in your home. The issue is actually not just about food but also things like pet odors and incense or anything else that might have an offensive odor to a potential buyer. I've written about people who use fragrances to create a particular smell when they're showing their home (there are companies that specialize in this). But one reader wrote to tell me that he didn't think that was a good idea…he preferred to not be able to smell anything (or as close to no odor as possible). That can be hard to achieve.
Generally, a pleasant odor is appreciated but there are different types of people and "pleasant" is relative to the individual. So, basically some of the mistakes that you can make are to fry up some fish, let the pets do the wrong thing in the house and then not deodorize, and leave the pets loose to "welcome" the guests in their own ways. For certain, most people won't appreciate those smells.
As for using other fragrances, my personal opinion is that if the smell is subtle and not overwhelming, it probably won't cause any issues with buyers unless they happen to have a particular allergy. However, if there's a repugnant smell, it will get a huge reaction and buyers will flee the home like scurrying ants seeking food and water on a hot summer day.
Watch out for these mistakes and you'll be ahead of the sellers who are wasting time (and possibly losing buyers) by not seeking expert help, not detaching from the home, showing their own home, and forgetting to deodorize.
Real Estate... June 2010
This Month in Real Estate looks at the decrease in foreclosure filings, and how an increase in short sales might be playing a role in the number of foreclosures filed.
Managing The Stresses Of Buying And Selling A Home
Many people deal with the anxieties of buying or selling a home. This process can be confusing to many people. As a result, here is a list of ways that a person can use to manage the anxiety of purchasing or selling a home.The first step is to determine your goals in purchasing or selling a home. Determine what you want to accomplish. It will save you a lot of time and money in the long run if you know what you are looking for. Sit down and think about the overall goal of what you are looking for and convey this to your real estate agent. Some people like to write down their goals on a piece of paper so they have something to go back to when they get stressed.
Educate yourself on the steps of purchasing or buying a home. Go to your local bookstore and find some books that will explain the process of buying or selling a home. There are many books available that can inform you of the process and will help reduce the anxiety of the situation. Most importantly, you will be able to make smarter choices that will save you time and money.
Find a reputable real estate agent that can help you accomplish your goals. Ask some of your friends on who they recommend and get in touch with them. Referrals from people you know are a great way in finding a good real estate agent.
Get your finances organized. Make sure you have an idea on what you can afford and also make sure that your credit is good. The financial aspect of buying or selling a home does not have to be scary if you have a sound business plan and a realistic budget. Some people may buy a home that they can't afford and this can cause problems down the road. Determine what you can afford and develop a budget where you will be able to keep up with your bills.
In addition to using the services of a good real estate agent, try to get a friend who is more experienced to help you. Chances are good that you know someone who has purchased or sold a home. You could ask them for their assistance and ask them questions on what to do and what not do. Having a friend who can assist you along the way can really help reduce the anxiety of the process.
Read the fine print on everything before signing and do not assume anything. Ask questions if you are uncertain on some aspects of buying or selling a home. A good real estate agent will not mind if you ask questions, however you should do your part and try to educate yourself on the entire process.
There will be times when everything happens all at once. When this happens, a person should take a deep breath and try to find something to do for a few minutes to get their mind off of the current situation. A person could take a walk, listen to some music, read the newspaper or do an activity that will give them a fresh perspective on things. Once you calm down, you will better able to make the right decisions.
Purchasing or selling a home does not have to be a bigger deal than it has to if you take the proper steps. There is help out there if you get stuck or confused. The most important thing is to do your homework. Determine your goals, educate yourself on the steps to reach your goals, ask questions, and take it one step at a time. If you follow this advice you will be better able to reduce the stresses of purchasing or selling a home.
What To Do When Selling On Your Own
The thought of selling your property can seem a little overwhelming. It’s a good idea to make a list of all the things you’ll need to do to get your property sold. This will keep you organized and prepared each step of the way! Our previous article detailed what you’ll need to do to prepare your house for sale. What do you do once it’s ready?First of all, decide whether or not you want to sell on your own or go to a professional Real Estate Agent for help in marketing your property. If you’re thinking about going to a Real Estate Agent, you may want to ask them a few questions to decide if they’re the right Agent for you, such as: “What makes you special as an agent?”, “Who are the buyers for this house and how do you plan on reaching them?”, “What can I do to help sell for the most money possible?”, “How can I be sure that I’ll be happy with your services?”, “How does my house compare to the competition?”, “How will you maximize the net proceeds that I will receive from the sale?”, “Are you willing to do a CMA (Market Analysis), and provide me with a copy of it, listing the adjustments made?”, and “Can I cancel if not satisfied and list with another agent without obligation to you?”. Be sure that what is agreed on is put in writing in the Listing Contract!
Even if you decide to have a licensed Real Estate Agent represent you, it’s still good to have a general idea of what you feel your asking price should be. Make a study of other comparable properties on the market or that have recently sold. What do they have to offer that your property doesn’t? What does your property have to offer that they don’t? Make the necessary adjustments and come up with a price that you feel reflects the current market and what your home is worth.
Since some of you may wish to sell without the help of a Real Estate Agent, what should you do next?
Now that your home is ready for sale and you’ve decided on a price, it’s time for people to know about it! You’ll need to get out there and advertise. Be sure to count the cost and have a budget for advertising expenses, deciding how much to advertise and how often!
According to a 2009 Survey by the National Association of Realtors, 90% of Buyers use the internet in searching for a home. So with the majority of consumers relying on the internet, it’s a good idea to advertise your property for sale online.
The same Survey showed that 40% of consumers rely on print or newspaper ads in looking for Real Estate. That being the case, you still would want to advertise what you could in your local newspaper, special home journals, and magazines.
When doing so, instruct the Buyers to go to FreeRealtyOnline.com or a simular real estate site to view your home. Keep in mind though, that since less and less results come from printed ads (the NAR Survey showed that while 40% look at printed ads, only 2% found their home through the newspaper and less than 1% from a magazine or home book), you will want to find a good balance. The Survey also explained that 59% of Buyers search by yard signs. Therefore, of course, you’d want to have an attractive and professional sign displayed in your yard advertising that your home is for sale.
Are you new to the real estate world?
If you are new to the real estate world, and many are, the process can be quite overwhelming. Application and loans. Meetings and Showings. The terminology alone can be enough to confuse even the most savvy of people.You may hear people use the names "Realtor" and "real estate agent" interchangeably. But did you know that not all agents are Realtors®? Let's take a moment to find out what a Realtor® can offer you.
Yes, both "agent" and "realtors" are licensed professionals, but the term "Realtor" is a registered trademark which means that your agent is a member of the National Association of Realtors (NAR). Founded in 1908, this association has now grown to over 1 million members.
Each year your Realtor pays membership dues. These dues are well spent, as they go towards advocating for issues that matter to the association, as well as to economic and market research, helping Realtors understand their industry and improve their business, helping the public understand the value of working with a realtor, and of course, supporting Realtors at the state and local level.
Once a Realtor, an agent is able to access a wealth of statistical information about markets and sales, all of which can be used to your advantage during the home buying or selling process. They can look up information regarding your local community, even on issues such as zoning, schools, and utilities.
What else does working with a Realtor afford you? It ensures that your agent follows a code of ethics, the very one set down by the NAR. According to their website, realtor.org, "Realtors are pledged to a strict Code of Ethics and Standards of Practice."
Those principles, in basic terms, are:
* Loyalty to clients;
* Fiduciary (legal) duty to clients;
* Cooperation with competitors;
* Truthfulness in statements and advertising; and non-interference in exclusive relationships that other REALTORS® have with their clients.
These agents also have access to some of the best properties. Through their MLS system on Realtor.com, you and Realtors across the nation have access to listings from near and far, depending on your needs. The NAR notes, "Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your Realtor to find all available properties."
Should You Move Up?
You have another baby on the way. Your aging parents have decided to move in. You are starting your own home-based business. There is an endless supply of reasons why a family may need to move up to a bigger, or nicer, home.
How do you know, though, that now is a good time to move up? Let's examine a few issues that will lead you to your answer.
Interest Rates. There is a huge difference between buying a home at 5 percent interest (June 2010), and buying one at, say, 13 percent interest (February 1983). The available rates can change from week to week, and how you qualify depends largely on your credit rating. The first order of business when considering interest rates is to contact a local mortgage lender to find out what rates would be available to you on what loans. Keep in mind rates also vary depending on the type of loan for which you are applying (fixed, adjustable, conforming, jumbo, 30 year, 15 year, etc.).
Income. Moving up to a bigger or nicer house will more than likely mean a bigger mortgage payment. Take an honest look at your budget to see if this makes sense for your family.
Equity. This is one way to avoid a bigger mortgage payment. If you have built substantial equity in your current home, and are selling in a good sellers market where you expect to receive around your asking price, then you could apply your profits from the sale of your current home towards your new mortgage.
Market Conditions. To find out your own local market conditions, contact your local real estate agent, or visit www.yourvipproperty.com. Is your market favoring buyers or sellers? Are homes selling quickly? Are prices appreciating or falling? These are all important questions to answer.
Wish list. Many first homes are starter homes, and as families grow, needs change. Neighborhoods changes as well, as residents age and jobs come and go. Take a moment to consider what area of town would be best for your family. Think about schools, commute times, and neighborhood amenities.
Use these simple issues as a starting point on your journey to a new home.
Building a Home Based Business With Integrity
Integrity should be the axial of any business without it many businesses are destined for failure. In the global business marketplace where many of us work from it is hard to control or determine whether everyone doing business online is onboard with integrity.
Where does integrity starts? the foundation for integrity has to start with individual values set before entering into business. Our values provides the foundational strength upon which our business is built. Make no mistake poor values will relate to poor business ethics and you will never be able to build strong relationship that will develop into huge returns on your investment.
Home Based Business although it may not be look upon as a big investment or placed in the same category as the conventional business, as it relates to start-up cost, however, it is a business that requires capital injection and should be upheld to the same kind or integrity afforded to the conventional business.
True integrity is based on trust. It is important to provide excellent service to our customers without any questionable behaviour. Customers should know that they are regarded as the most valuable asset to the success of our business. Home based business owners and entrepreneurs will in most cases never meet face to face with their customers, that’s why it is so important for us to gain their trust through integrity in everything we do. Never offer a service that you cannot deliver. Never take people for granted in misleading them to believed that your product or services are better than someone else. That’s not to say that your product or services is not the best, but let it be the best and not a scam. To scam a customer out of their hard earn dollars in not good business ethics or integrity. Ethics as we know it is deals with right or wrong.
Principals that should be exercise by all home based business entrepreneurs working in an online environment are truth, accountability, fairness and upholding the laws. These principals are critical to maintain customers trust and the industry integrity.
Tips To Help Make Your Home More Marketable By Bruno Cristini
It can be a hard and draining task trying to get your house sold. Your house is on the market, and you've got a real estate agent in place that you can trust. Potential buyers show up, but no offers. Now what? To help aid in the selling of your home, I will outline some tips that I personally believe will benefit in the marketability and potential selling of your home. The goal here is to obtain that all important "stamp of approval" in which the red imprint reads: "SOLD."
Usually, the first place your potential buyer is going to see, will be the front of your house. The goal here is to make it as attractive as possible, but more importantly, inviting. First impressions are very important. First positive impressions, if you will, are even more important. The key here is to make sure everything looks neat and clean. Cut the grass, pull out the weeds, trim the bushes, plant some flowers, and clear out the walkway.
Make sure your home is clean. These include things like steam cleaning your carpets, mopping your floors, dusting hard-to-reach areas, and cleaning your windows (both inside and out). Potential buyers are very picky people, and as such, they like to inspect as much as they can.
Try and keep both colors and styles neutral. The key here is not to influence your buyer with your own personal style. Someone might walk in, look at a red wall, and be immediately turned off. The idea is to try and make them visualize the colors for themselves. Keeping things neutral is a good solution to this "problem."
Check lighting. No one wants to look at a house that they can't see. Seems obvious, right? Unfortunately, as a real estate agent myself, I've had quite a few cases where this element has been overlooked. Check your light bulbs, and make sure they're working. Although I recommend checking all the light bulbs, I'd be more concerned with the areas in the house that are darker or that require more artificial lighting. These include places like the basement and bathrooms. It's also a good idea to open your curtains. Simply put, the more natural light, the better.
Make repairs if necessary. These include things like a fresh coat of paint, patching up of any holes in the wall, and torn patio screens. You want your buyer to feel like your home has been well taken care of. This is a big plus.
Try to avoid clutter. One of the worst things that can happen is when your buyer feels "boxed in." Try and keep clutter to a minimum. Remove any unnecessary items such as too many pictures and accessories. The goal here is you want to have your house feel like a home, yet at the same time have it as spacious and organized as possible. You want the buyer to get a good sense of the space and visualize it as their own.
Although the tips mentioned above are certainly beneficial, it is also important to note that it doesn't guarantee a sell of one's home. Remember that the ultimate goal is to have your home feel inviting and have your potential buyer view it as their own.
As a final test, invite a friend or relative over and have them give you a "report" on the presentation of your home. Have them play the buyer. Take notes and adjust accordingly. In the best case scenario, it is more beneficial to invite someone over that has never been to your house (or not that often). In this way, they can view your home with a "fresh pair of eyes."
Applying these simple rules should increase your chances of selling your home. Good luck!
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