negotiating – The Core Group

Avoid These 5 Mistakes When Selling Your Home

Some common mistakes homeowners make when selling their home and how to avoid them.

: (Image Courtesy of upscaleelkgroveliving.com)

Buying a home is one of the biggest investments we make in life. So, naturally, when it comes time to sell your home it can be a stressful venture, to say the least. However, just because it isn’t easy, doesn’t mean you shouldn’t do your best to minimize surprises, maximize your profits, and successfully make a return on your investment.

The housing market in Orlando and the Central Florida area as a whole is low in inventory at the moment, which is driving home prices up throughout our area. This doesn’t guarantee a profit from the sale of your home, but if it does increase your opportunity. Here are some common things to avoid in hopes of selling your home quickly and getting a good price.

1. Not Pricing Your Home Appropriately

What your home is worth compared to what it’s worth to you are sometimes two very different numbers. Under and over-pricing are two of the biggest mistakes homeowners make when time comes to sell their properties. Not being realistic about your home’s value can be very costly and drag out the entire selling process. It is vital that you familiarize yourself with the current market and do your research on comparable homes in the area. Armed with these numbers and the value your house has been appraised for can help you set a realistic figure. Has your home been on the market for longer than 30 days with no offers? It might be priced too high.

2. For Sale By Owner

fsbo Selling your home on your own could save you money up front, but it will likely cost you in the long run. We’ve talked before about the importance of hiring a professional, but it’s so important that it’s worth mentioning again. Not taking advantage of a professional’s knowledge and expertise – chances are your home will take much longer to sell and for much less than you hoped to get.

3. Bad Presentation

Potential home buyers want to be able to see a house and be able to envision their lives there. If your house is untidy and clutter or empty and unlived in, buyers will often leave with a bad taste in their mouth. Another all too common problem is having poor pictures of your home posted on the web. Chances are buyers will see bad photos of your home and quickly move on to the next one. There’s even evidence that professionally b staged homes sell up to seven times faster than their non-staged counterparts. Just don’t overestimate the allure of a freshly painted, well-lit interior. It could make all the difference.

4. Refusing To Negotiate

Depending on your location and the market, offers on your home may be few and far between. This goes back to properly pricing your property. Be realistic, but leave room for negotiating. Chances are, you will get some low offers, but don’t underestimate how much buyers are willing to increase on their bids. Consider every offer and make smart counter offers. This is also a great time to take advantage of your realtor’s expertise. Most buyers will feel like they are getting a deal if they end up paying just a little below asking price.

5. Not Having a Plan B

Crossing out Plan A and writing Plan B on a blackboard.

Selling a home and buying a new one can be tricky business, especially when it comes to timing. A lot of factors must fall into place before the right deal is made and there is no guarantee when your home will sell or when you’ll close on your new home. In the event that your home sells before you’ve purchased a new one, make sure you have plans on where to live in the meantime and where to store your belongings. Having to make last minute arrangements can be more stressful and costly. Also, be prepared for the event that a deal falls through – these things happen. Preparation is key.

These mistakes are common but can be costly for home sellers. Hiring a skilled realtor can help you avoid falling into any of these categories. Your home is a large investment and it should be treated as such. It pays to spend the time and money to make sure you’re setting your home-sale up for success. Contact one of the expert realtors at the Core Group today to discuss a plan for selling your home. We have years of experience buying and selling properties. We are locals – familiar with the real estate market in and around Orlando/Central Florida, from Oviedo to Winter Springs, Clermont to Windermere – we are here for you.

Connect with The Core Group:

Facebook // Instagram // Twitter // Google Plus

Demand 4 things from your real estate agent!

Are you thinking of buying a home? Are you dreading having to walk through strangers’ houses? Are you concerned about getting the paperwork correct? Hiring an experienced, professional real estate agent can take away most of the challenges of buying. A great agent is always worth more than the commission they charge just like a great doctor or great accountant.

You want to deal with one of the best agents in your marketplace. To do this, you must be able to distinguish the average agent from the great one.

Here are the top 4 demands you need to require your agent to adhere to.

1. Give you honest opinions of the price

Many times, agents will listen too much to their buyer’s opinion of market value and not be willing to give you their honest opinion of what it’s going to take to secure that property. Too often agents take your offer at any price and then try to ‘work’ both the seller and you while negotiating later. Demand that the agent prove to you that they have a belief in the price you are offering. Discuss with them their plan of action to get the seller to accept that price. Every house in today’s market must be sold two times – first to you and then to your bank.

The second sale may be more difficult than the first. The residential appraisal process has gotten tougher. A recent survey showed that there was a challenge with the appraisal on 24% of all residential real estate transactions. A red flag should be raised if your agent is not discussing this with you at the time of the original offer. If there is an appraisal discrepancy, this does not necessarily indicate that your agent has done a poor opinion of the market value. It is important that you sit down and discuss why there was a discrepancy, but this can be addressed in more detail in another blog post.

2. Understand the timetable with which your family is dealing

You will be moving your family into a new home. Whether the move revolves around the start of a new school year or the start of a new job, you will be trying to put the move to a plan.

This can be very emotionally draining. Demand from your agent an appreciation for the timetables you are setting. You agent cannot pick the exact date of your move, but they should exert any influence they can, to make it work.

3. Remove all challenges possible

It is imperative that your agent knows how to handle the challenges that will arise. Wisdom in overcoming challenges comes through experience in today’s fast paced market. Many challenges exist throughout this process that you do not need to go through. An agent with a track record of success has learned to avoid many of the potholes that exist. It’s important that your agent has a strong understanding and experience with:

Mortgage/Financing (as well as a confident mortgage partner who you are working with)
Market Values
Negotiations
Technology
Contracts
Appraisal Discrepancies
Title Defects
Many more…

Remember: If you have an agent who was weak negotiating with you on parts of the purchase offer, don’t expect them to become a hero when negotiating with the seller for you and your family.

4. FINDING the right home!

There is a reason you are putting yourself and your family through the process of moving.

You are moving on with your life in some way. The reason is important or you wouldn’t be dealing with the headaches and challenges that come along with purchasing. Do not allow your agent to forget these motivations. Remind them that finding the right house is why you hired them. Make sure that they don’t worry about your feelings more than they worry about your family. If they discover something needs to be done to attain your goal (i.e. rethinking price), insist they have the courage to inform you. The right home can come in many shapes and sizes, and some of these hard discussions are becoming even more important as we are facing an increasing real estate market with interest rates on the rise. It’s important that your needs are established and found sooner than later before the right home is out of reach.

Top 1o Tips for Getting a Deal on a Home in the Fall

Find a bargain before the holidays with these house hunting and negotiating strategies

By Shannon Petrie, FrontDoor.com | Published: 7/02/2010

If you’re looking for a bargain on a home, fall can be a great time to start house hunting.

#1: Get the timing right. Most real estate professionals say the spring/summer homebuying season is followed by a lull in real estate activity in September, when homeowners settle in after vacations, go back to work and get the kids ready for a new school year. If a bargain is what you’re after, start shopping for a home in August and September. There may not be as many homes on the market as there are in the spring, but you’ll have less competition from other buyers, and sellers will be more motivated and willing to negotiate.But be sure to keep your local market in mind when house hunting in the fall. Ski-resort towns and areas with temperate climates, such as Florida and California, don’t always have a “down time” when it comes to real estate sales. You may be competing with just as many buyers as you would during the spring, so be prepared to make solid offers and negotiate with sellers.

#2: Seek out motivated sellers. If you’re hunting for a bargain, it’s important to distinguish the sellers who are eager to unload their properties from the ones who are just testing the market. Some sellers who list their homes in the fall are on a deadline to sell before the holidays. Working with these sellers is a great way to find a good buy, as they may be willing to come down in price to quickly close a deal. Other sellers who aren’t in a rush most likely won’t budge on price, so work with a real estate agent to find the flexible sellers instead.

#3: Look for slow-movers and price reductions. Some of the homes you’ll find for sale in the fall have actually been on the market since spring or summer. The sellers may have been overly optimistic about their asking prices when they first listed their homes, but as the holidays creep closer, more and more will slash their prices to make a sale. You can often find these properties simply by searching homes for sale online. Many online listings indicate how long a home has been on the market or if the price has been reduced. You can also ask the listing agent for this information.

#4: Negotiate your lender’s fees and terms. Home loans are less in demand in the fall, so some lenders may be willing to forgo certain fees to get your business. Shop around and get offers from at least three lenders, then compare interest rates and terms and negotiate. Don’t be afraid to tell one lender what another is offering to see if he’s willing to beat the deal. Be sure to get pre-approved for a loan before you start shopping for a home — it shows sellers you’re serious and eligible to buy.

#5: Explore new construction. Fall through early winter is the best time of year to get a bargain on a brand-new home. Builders usually start discounting their inventory or offering incentives around September to sell as many homes as possible before the end of the year. When spring rolls around, prices on these homes go back up as demand rises.

#6: Look for fall maintenance issues. Shopping for a home in the fall gives you the opportunity to look for red flags that may not be noticeable during other seasons. For instance, when touring a home, take a look at its gutters and downspouts. If they’re overflowing with leaves, you know the seller hasn’t taken the time to clean them. If they’re not keeping up with their gutters, what other home maintenance items have they overlooked?

#7: Hire a great real estate agent. Sellers are more likely to negotiate with you during the fall, even if you make a lowball offer. But unless you’re a master negotiator, working with a top-notch real estate agent is crucial to making solid offers and getting a good deal. Your agent can also help you navigate the fall housing market — since inventory will be lower than in the spring, he or she can pinpoint the homes that fit your needs.

#8: Make a strategic offer. While you’ll have some competition from other buyers trying to find a home before the holidays, the fall season is not as busy for real estate as spring. Since there’s less demand, you might be able to make a lower offer on a home. As long as your offer is reasonable, motivated sellers could very well be willing to negotiate. Work with your real estate agent to form a solid offer.

#9: Ask for concessions. If you want to save cash at closing, ask your lender about seller concessions. Also called seller contributions, this is an agreement in which the seller pays part or all of your closing costs, which can include mortgage fees, title company fees, points, homeowners association fees and more. Seller concessions typically range from 2 to 9 percent of the purchase price; the specific amount your seller can contribute depends on what type of loan you get and how much you borrow from the lender.

#10: Time your taxes. If you close on your home before Dec. 31, you can deduct mortgage interest, property taxes and points on your income tax return for that year. These deductions can save you a lot of money, particularly in the early years of your loan when you’re paying a lot of interest.If you’re an investor who’s planning to sell a property as well, you may be able to defer your capital-gains taxes with a 1031 exchange. Also known as a tax deferred exchange, this transaction allows you to trade a property for a “like-kind” property without immediate tax liability. After transferring one property, the window for acquiring a new property is 180 days or before the next tax filing deadline — whichever comes first.