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“Got Any Hot Deals?” Read This Before You Ask That Question To An Agent

Posted on by Ali Palacios - Broker

Psssst. Do you want in on a hot real estate deal?

How about a house that’s already underpriced, and is being overlooked by every buyer in the market? And the owner is super motivated. Desperate even. And would probably take even less than they are asking already.

Just by buying it at such a low price you’re going to make money. But, if you put a few bucks in, you’ll make way more money. And quickly.

So, what’s the secret? How do you get in on such a hot deal!?

Apparently, a lot of people think the road to riches is paved with one carefully worded question…

“Got any hot deals?”

If real estate agents had a dime for every time they hear that question…

You can certainly try that approach. Ask every real estate agent you meet that very question. But it probably won’t get you in on any hot deals.

It’s not a bad question

It’s not that it’s a bad question. There’s nothing wrong with asking a real estate agent if they have any hot deals.

But, it can be aggravating to agents. And, even if they do know of any hot deals, it probably won’t do you any good.

Because reality.

Be in the market, not asking about it

First of all, who doesn’t want a good deal? There are always people in the market, ready, willing, and able to scoop up a good deal.

So, if you find yourself asking this and there isn’t a hot deal to be had, it’s because there are people actually, and actively in the market buying the deals. Some are just people looking for their own home, recognizing a deal when they see one, and grabbing it. Others are investors who are constantly on the lookout and in a position to buy deals when they see them.

So, if you’re just asking if there are any hot deals, it won’t do you any good. Unless you happen to be absolutely ready to pounce. Meaning, you have money lined up. Whether it’s in the form of financing or cash.

But it also means you have to be mentally ready to pounce. If you ask, and an agent does bring you a hot deal, you need to be ready to go after it…not wait to see if the price goes down more, or “posture” and wait for the seller to come groveling to you to make an offer, any offer. Or, just wait to see if another better deal comes along.

So, it’s perfectly fine to ask agents if they have a hot deal, but you need to be ready, willing, and able to do something about it. Otherwise, you can ask every agent you ever meet the same question, and it’s not going to get you anywhere.

Simply put, you need to be one of the people in the market… not just asking about the market.

Align with an agent

It might seem to make sense to ask every agent you meet if he or she has a hot deal.

But it doesn’t really work that way.

This is probably an issue of how the question is worded, and some misunderstanding.

It seems that when people ask this question, they’re asking the agent if they have a house listed that is a good deal. This doesn’t make a lot of sense. If an agent is listing a house, they should be attempting to get the highest price possible for their seller. Not getting a buyer a good deal.

Sure, there may be agents who play in the sandbox that way. But most don’t and won’t. So the question is a bit insulting, and totally aggravating.

That same agent can find and get you a hot deal…But not necessarily one they personally “have”.

They can find you a hot deal listed by another agent. And they probably would love to do that for you. But you need to be aware of the reality that the hot deal they can bring you to is likely not their listing, and not necessarily something they can pull out of a hat for you in that very moment.

They will need some time to scour the market for a hot deal. After you give them some information.

A “hot deal” is relative

Just because something is a hot deal, doesn’t mean it is a good deal for you…and your abilities, wants, and needs.

If you go around asking every agent you meet this question, they’re going to sense it. Having an army of agents all you on their mind for the next great deal just isn’t going to pan out.

Agents want and need to know they’re spending their time wisely on someone.

So, if you truly do want in on a “hot deal”, you should find and align with one agent (singular). Actually sit down with him or her and get into what you can actually do something about.

You can’t just say that you’re open to anything as long as it is a deal…and you’ll figure out how to make it work. And then expect the agent to spend a concerted amount of time and attention on finding you deals. Because the agent (unless they are new or desperate) probably won’t invest a whole lot of time or care truly finding you a good deal.

You need to show your sincerity, and your actual ability to an agent…at least if you want good attention from a good agent. And you should. So, align with the best agent you can.

There’s always a “hot deal”

A lot of the “hot deals” aren’t obvious.

The hot deals are made, as much as they are found.

And the best way to find and get a hot deal is not by offhandedly asking if an agent has one, but by being in the market, aligned with an agent, going out and making a hot deal happen. And, once in a while, just being in the right place, at the right time…but also being ready, willing, and able to scoop up the deal.

7 Budgeting Tips To Help You Buy Your First Home in 2018

Posted on by Ali Palacios - Broker

So you’ve decided to purchase your first home in 2018. Congratulations! Purchasing a home is a huge decision, and it can be one of the most exciting and rewarding experiences of your life.

But purchasing a home requires capital, and if your savings account is looking a little trim as we wrap up 2016, it means that you will have to do some budgeting in the upcoming year to make your dream of being a homeowner a reality.

Here are 7 budgeting tips to help you buy your first home in 2018:

1. Track Everything You Spend

You will not be able to make any major changes to your budget if you don’t have a firm understanding of how your money is being spent. Tracking everything you spend for a month will show you exactly how much you’re spending, where you’re spending it, how much of your budget is going towards necessities and how much of your budget is going towards luxuries.

You can keep track of all of your expenses in a spreadsheet, but a better strategy is to use a spending tracker like Mint or Prosper Daily (formerly BillGuard). These apps link to all of your accounts and will track and categorize your spending, making it easy to visualize where your money is going.

2. Identify Areas To Cut Back

Once you know where your money is going, it’s time to identify the areas where you can cut back and save additional funds to put towards your down payment. Every household will be different, but when you’re saving for a house, anything that’s not a necessity (like rent or medical insurance) should be considered an area where you can cut back.

Things like eating out, daily Starbucks and an expensive gym membership are great, but they can quickly eat into your budget. Cutting back on extra spending is a great way to build your savings and get you into your new home faster.

3. Create A Budget

Creating a budget – and sticking to it – is one of the best things you can do for your finances as you’re gearing up to buy your first home. There’s nothing more frustrating than having a savings goal and consistently falling short each month because of thoughtless spending. Having a firm budget (and holding everyone in your household accountable to it) helps you stay on track towards your savings goal.

Create a budget that includes all of your set expenses (like rent), the amount of money you will put into your savings account each month and allowances for categories like food, entertainment and gas. Then, stick to the budget no matter what.

Having a set amount for how much you can spend on things will make you think twice before pulling out your wallet.

4. Get Your Score Up

One of the most important factors in the home buying process is your credit score. Your credit score (and the credit score of your spouse, partner or co-buyer) will directly affect the interest rates on your mortgage, and a good credit score can save you thousands of dollars a month.

If you can, work to bring up your credit score as much as possible before you apply for your mortgage. Pay down any outstanding credit card debt, check your credit report for inconsistencies and always pay your bills on time.

5. Practice Paying Your Mortgage

When you create your budget, you should have an idea of how much you can afford to spend on your mortgage payment when you buy a home. But you shouldn’t wait to buy a home to start making that payment, particularly if it’s higher than what you’re currently paying in rent.

Practicing your mortgage payment will give you real life experience of what it will be like to make that payment each month. Take the difference between your current rent payment and your projected mortgage payment and immediately put it into savings at the beginning of the month.

You might find that you overshot how much you can afford and your projected mortgage payment puts you under too much financial strain. Or you might find that you actually have more wiggle room in your budget than you anticipated and can afford a higher mortgage. Either way, that’s information you want to know before you lock in a 15 or 30 year payment.

6. Pay For Everything In Cash

It’s easy to lose track of how much money you’re spending when you put everything on a debit or credit card. With just a quick swipe, you have everything you need. But paying for things in cash can make the purchase feel more real and can help you get a better handle on your spending.

At the beginning of the week, take out all of your spending money in cash. Then, make a commitment to only use the cash in your wallet to cover your expenses. If you run out of cash, that’s it.

Seeing your cash dwindle as the week goes on will help you visualize how much money you have left for the week and can help curb needless spending.

7. Reward Yourself

There’s no way around it – saving money is tough. It’s important that you reward yourself for your successes and for moving towards your savings goals.

Set milestones for your savings goals (like saving $1000 or paying off an outstanding credit card balance), and treat yourself when you hit that goal. The reward will give incentive to keep going when things get challenging.

One trap you’ll want to avoid is rewarding yourself with something large, extravagant and expensive. Rewarding yourself for saving money by spending money isn’t a recipe for success! Your reward should be something low cost (or free) that still feels like an indulgence, like a picnic day at the park with your family.

With these tips, you’ll be well on your way to signing those closing papers, getting your keys and making 2018 the year you purchased your first home.

Are you financially ready to buy a home? Your Cash

Posted on by Ali Palacios - Broker

Are you financially ready to buy a home? Your cash

There are several expenses incurred when buying a home. These are expenses that must be paid before, at closing and after. It’s important that you have these funds ready and available once you start the process.

Some of these funds may be gifted but check with your lender. Some lender will ask for a letter stating that the funds are a gift and not a loan.

Before you glance at the numbers below and disqualify yourself, please note that there are down payment assistance programs available that can help with a large portion of these funds. Ask me more about these programs.

Below you will find the closing costs for a home purchased for $150,000.00 and using an FHA loan.* This is just an estimate. Exact figures will vary based on your closing date, lender and title company.

  • Home Price – $150,000
  • Down Payment – $5,250
  • Interest Rate – 3.750%
  • PITI (principal, interest, taxes and insurance) – $1,238



Prepaid costs: Prepaid items are always required at loan closing, whereas escrow accounts are only required in certain cases. Even if you close your loan right before the month’s end, you owe your lender at least a few day’s worth of mortgage interest. This is because your first mortgage payment isn’t due immediately after you close. It is generally due on the first day of the second month following your close. You owe prepaid interest through the end of the month in which you close. Additionally, you generally have to prepay the first year’s premium for hazard insurance and mortgage insurance if your lender requires it.

Escrow: Escrow accounts are generally required by the lender if you put less than 20 percent down on your home, or refinance with less than 20 percent equity. An escrow account ensures the lender that property taxes, mortgage insurance and homeowners insurance will be paid. Requirements for escrow reserves serve as a cushion and vary by lender, according to the Department of Housing and Urban Development. The amount a lender collects also depends on when the closing takes place. Most lender will make the equivalent of 3 months of taxes and insurance

Earnest Money Deposits: This is a cash deposit attached to you purchase offer. The amounts of this deposit varies but expect to pay at least 1% if you are financing the balance and maybe as high as 10% if you are paying cash. Although earnest funds are not required they are expected. If your offer is accepted and you proceed with the purchase, this deposit is applied towards the purchase of your property.

Home Inspections: Every buyer should have their home inspected. This is usually done within 10 days of the executed contract. The cost will vary based on the inspection completed. The most common inspections are a general inspection that may run approximately $450 and pest inspections that may cost approximately $150.

In some cases you might have to inspect the foundation, a water well, a septic tank, etc. and these all have a separate cost.

Option Fee: This is a fee that is paid to the seller for the ability to have your inspection period. This fee will allow you to inspect the home within a given amount of time and back out of the agreement if you do not like the results. The fee varies but typically runs $100-300 for a 10-day period. Money well spent if it allows you to back out of the contract as a result of a bad inspection.

These funds can be created to the purchase of your home if you proceed with the contract; if you decide to back out, your forfeit the funds.

Appraisal: If you are financing your home purchase, the bank will want to appraise your home. The purpose of an appraisal is to make sure the home you are purchasing is worth the amount you agreed to pay. The bank will not want to finance 100K for a home that is valued at 80K.

Appraisals typically cost approximately $400. Sometimes this balance is paid in advance and sometimes it is added to the closing costs and paid upon closing.

Down payment: For most people the minimum down payment will be 3.5%. This only applies to FHA loans.  There are some exceptions for low income down payment assistance programs and VA loans require no down payment.

For a conventional loan a minimum of 5% is acceptable for borrowers with excellent credit but that said, anything under 20% will require the borrower to pay private mortgage insurance. This additional, lender’s insurance policy will just add to your overall monthly payment. It’s always best to pay at least 20%.

Mortgage origination fee and title insurance: Loan origination fees will vary from lender to lender but typically it can run from 1-3%. This is typically paid at closing. The owner’s title insurance is a negotiable expense and may be paid by the seller. Your real estate agent can help you with that negotiation. The cost will vary based on the cost of the property.

It’s important to review the good faith estimates that your lender provides. The good faith estimate is an estimate of your closing costs.

Other possible closing cost: Loan policy and endorsements, record warranty deed, record deed of trust, courier fee, escrow fee, tax service fee, one year homeowner’s insurance policy, 2-3 month hazard insurance escrow, tax reserve, credit report, lender document preparation, flood certification, mortgage insurance premiums, misc. loan fees, survey, homeowners’ association dues, guaranty fee. It will be important to review the good faith estimate for these fees.

Moving Costs: Moving costs will depend on how far you will be moving. If you do it yourself and you are moving locally it may cost you approximately $1000 for truck rentals, gas, moving supplies etc. If you hire movers and again move locally, it may cost $2,500-$6,000 for the average 2000-3000sf home. Long distance moves will cost much more.

Don’t ignore this expense. Price out the move before closing so you can be prepared for the cost.

Other Home Purchases: If you are moving from an apartment to a single family home, you will need to buy a few items after closing: lawn mower, weed eater, window treatments, furniture, etc. Normal maintenance items such as air conditioning filters, light bulbs, season lawn items etc.

Once you are a homeowner you will find that there are countless things that you can do to your home and most of them will involve cash. Some of these items can be improvements and some can be needed maintenance. Make sure to always have cash reserves to cover these maintenance. Maintaining your home, is maintaining your investment.

If you have any questions or if you would like assistance in buying, selling or renting give me a call. I’m happy to help.

Why Do Real Estate Agents Ask If You’re Pre-approved?

Posted on by Ali Palacios - Broker

Have you ever walked into an open house, or called a real estate agent about a listing, and within minutes, they’re asking you if you are “pre-approved” for a mortgage?

If you haven’t, then you have never walked into an open house or called an agent. Or at least enough of them…

Just wait. It’ll happen.

And you’re going to feel like it’s pretty pushy for them to ask that.

It’s like a joke.

It makes you feel like telling real estate agents this knock-knock joke…

You: Knock-knock.

Real estate agent: Who’s there?

You: Nunya.

Real Estate Agent: Nunya who!?

You: Nunya business if I’m pre-approved or not! Just show me the house, and I’ll get pre-approved if I even like the house. I can definitely get approved for a mortgage. Probably way more than this stupid house anyway. So, stop asking if I’m pre-approved.

Try it…maybe the agent will laugh! Or, maybe not. Depends…

But it’s no joking matter.

It depends on the agent. Agents have different personalities. They all come across different ways. They all handle how they meet, greet, and chat with consumers in different ways. There’s no one way to “be”, as a real estate agent.

But every single real estate agent should be asking you if you’re pre-approved. But many do not. Because they feel like it is a bit pushy and forward. Because he or she worries about offending you. But they should ask…

…because it’s entirely relevant for them to know.

…because it’s entirely important for you to be pre-approved.

It might come across as a pushy, or invasive question. Maybe that is because of how an agent asks the question. Or when the agent asks the question. Or, simply because you don’t know that it’s a question that should be asked.

But it is not a joking matter.

And you should expect the question, be prepared to say that you are pre-approved, and…you should actually want the agent to ask you that question.

It’s not like a first date.

If you were going on a first date with someone, and one of the first things the person asked about was how much money you make, and can you afford the date, you’d feel like that was pushy and weird.

Rightfully so. You don’t go in for a kiss the minute you meet each other, let alone ask for a hand in marriage. There’s some build-up.

Beyond that, there’s some time that needs to be spent together before probing questions about finances are asked. That kind of stuff comes way after even the first kiss, because finances are a pretty private, intimate subject. Even more intimate than a kiss…

Which is why it seems so invasive when an agent you’ve just met asks you if you’re pre-approved. It feels like they’re asking you some pretty private, intimate stuff that’s none of their business.

But asking for a pre-approval isn’t like going in for a kiss. It isn’t a marriage proposal. And it isn’t probing on the part of the agent.

It is a necessary question, and an important piece of information for the agent to know. And for you!

Why does an agent ask you if you’re pre-approved?

Agents aren’t asking you if you’re pre-approved because they’re looking to size up how much you can spend. (At least not most agents…)

They want and need to know that you are serious, and qualified to buy a house.

And they certainly have their reasons for wanting to know…

  • Real estate agents need to make sure they’re working with someone who can actually buy a house. They don’t get paid until and unless the person they’re working with buys a house. So, this is a matter of being careful about who they spend their time with. It might sound selfish…but you can’t fault them for that. They’re in business. Nobody cuts them a paycheck. And showing people houses is not a public service or charity work. Even working with someone who is pre-approved doesn’t guarantee them that they’re going to make any money. But at least it’s an indication that the person they are working with can do something.

  • Agents also need to know how much you’re pre-approved for in order to advise you as well as possible. Picture an agent showing you houses for weeks, and months. You finally find “the one”! You get all excited about the house, and you want to make an offer, only to find out then that there’s no way you could afford the house. This leads to heartbreak and aggravation…for both of you. It doesn’t do either of you any good to go through all of that only to find out you can’t afford the houses you were looking at…or even buy one at all.

  • And, to a degree, this is a safety precaution. You might not believe this, but agents are in a pretty risky position. If they just say OK to every person who calls and asks to go see a house, with absolutely no proof or verification of who the person is, that puts them at risk. Sure, a pre-approval won’t necessarily stop an evil person from doing something, but this is a pretty basic precautionary request.

Why you should want an agent to ask if you are pre-approved.

Even if you have just started browsing for a home just a little bit, and haven’t gotten pre-approved (yet)…at least expect the question. Don’t be offended when you’re asked if you are.

In fact, pay closer attention to the agents who do ask if you’re pre-approved! The ones who ask make it easy for you to find a great agent to work with.

Because if they’re asking that question, it’s a good sign that they are thorough and thoughtful about how they do their business. That’s the type of agent you want to have on your side when you’re buying a house — one who’s careful from the get-go. One who pays attention to the details. One who isn’t going to waste your time any more than their own. Or allow your heart to be broken when you fall in love with a house you can’t do anything about.

And if you want to get some really good attention and service from the best agents you come across, don’t even let them have to ask if you are pre-approved…

Get pre-approved before you even start looking. And let the agent know you’re pre-approved before they even ask. You’ll set yourself apart from almost every buyer the agent has ever met.

Sold! A First Timer’s Checklist For Selling Your Home

Posted on by Ali Palacios - Broker

As a homeowner, the selling process can be an overwhelming experience – especially for first timers. Since they’ve never been through the experience of selling a home, many homeowners feel a bit lost as to what they need to do before they can pass their keys over to the next owners.

But not to worry! Here’s a checklist that covers all the essentials for homeowners getting ready to sell their first property:

Sprucing Things Up

Before homeowners list their home, they will want to handle any minor fixes that might keep them from getting top dollar for their property and spruce things up to make the home more attractive to potential buyers.

While every home is different, some areas that homeowners will want to revamp before listing their home include:

Painting

Painting is a relatively easy and inexpensive fix, but it can really make a difference in how a home presents. Before listing, homeowners should plan to refresh both the exterior and interior paint.

It also helps to use neutral colors when repainting a house that’s about to go on the market. Bold colors can be off-putting or distracting to potential buyers. Using neutral colors like white, beige, or gray, will help potential buyers see the property, not the paint.

Landscaping

The first thing potential buyers will notice when viewing a home is the landscaping. If the yard is in shambles or there are human-sized weeds sprouting from every corner, it can be a deal breaker.

Investing in landscaping upgrades will add to a property’s curb appeal and can help land a higher selling price. If the outdoor area hasn’t been landscaped, adding flowers, small trees and greenery can go a long way. If the property already has a garden, cleaning the area up (including raking, pruning and adding additional plants to fill in any visible gaps) will suffice.

Cosmetic Repairs

If there are minor and/or inexpensive repairs that need to be done to the property, it can be helpful for the homeowners to take care of them prior to listing. Small repairs, like steam cleaning the carpets or fixing a leaky shower, are quick, easy and inexpensive fixes, but can make a big difference when showing the home.

While homeowners will want to leave more major repairs and remodels for the potential buyers, cleaning up small problems will yield big results when they put their home on the market.

Staging

It’s important for homeowners to stage their home in a way that’s appealing to potential buyers. Staging can either be done with the help of a professional organizer and decorator or independently, but proper staging should include:

  • Decluttering the home
  • Removing any personal items
  • Reorganizing, rearranging and/or removing furniture to make the home feel more open and spacious
  • Thoroughly cleaning the home
  • Arranging the home to highlight the property’s best features (for example, pulling back curtains to showcase a gorgeous view or moving any furniture that blocks interesting architectural details)
  • Adding decorative items to enhance the space

Staging a home in a way that appeals to buyers can have a huge impact on the selling process. Professional stagers typically cost a few thousand dollars, but if homeowners want to save the extra cash, HGTV has some great tips on how to best stage a home for maximum impact.

Choosing An Agent

Once the property is ready to be shown to potential buyers, it’s time to find an agent.

Choosing the right real estate agent is HUGELY important, particularly for first time sellers. Having the right real estate agent representing the property can mean the difference between a quick, painless and positive selling process and a long, drawn out nightmare.

When choosing a real estate homeowners should consider:

Does this agent specialize in this type of property and in this area?

Whenever possible, homeowners should work with an agent who possesses a wealth of knowledge and experience selling the type of property they’re looking to sell within their market.

Different types of properties and different markets have different nuances, and working with an agent who understands those nuances can help homeowners sell their home quicker and for a higher price than working with an agent who isn’t as knowledgeable.

What’s the agent’s track record?

One of the best predictors of future success is past success. When choosing a real estate agent, homeowners should ask what their track record of success is. How many homes have they sold in the past year? What’s the average time their properties stay on their market? What percentage of their deals come in at the asking price or above?

Understanding a real estate agent’s past performance can help homeowners understand what they might expect during the selling process and helps to set up proper expectations for both the homeowners and the agent.

What’s the agent’s plan for selling the property?

Homeowners should also ask what their agent’s plan is for selling the property. What marketing channels will they leverage to make sure the property gets in front of the right people? How aggressively do they plan to market the property? What’s their backup plan should they not be successful with their typical marketing strategies?

It’s an agent’s job to sell a property, but there are many ways to do that. Homeowners will want to find out upfront what their agent’s plan is to make sure it’s in line with what they’re looking for.

Selling a property can be overwhelming for first time sellers. But by following the steps in this checklist, homeowners can take the necessary steps to selling their home quickly, easily and with as little stress as possible.

Source: http://www.bestrealestateblog.com/sold-first-timers-checklist-selling-home?m=JnojPGPgYwNqRUqKIeuc

Why You Should Only List Your House Once

Posted on by Ali Palacios - Broker

Let’s change the meaning of YOLO from “you only live once” to “you only list once”.

When you decide to list your house for sale, list it like it is the first, last, and only time you are going to.

Because, if you list it more than once…it’s going to hurt you.

Selling your home begins in a hopeful manner.

When you decide to list your home for sale, you probably don’t expect it to not sell the first time you list it for sale.

Quite the opposite…

Most people think their house will sell quickly. And hopefully in a bidding war.

You hire a real estate agent. Pictures are taken. The house is entered into the multiple listing service. Open houses are scheduled for the first weekend. Ads are run…

…and the house gets put on the Internet in more places than you can ever imagine, with just the click of a few buttons.

How could it not sell?

Avoid withdrawing or expiring.

But a lot of times, homes don’t sell quickly. Or at all…

If a house doesn’t sell quickly, many homeowners start to get discouraged, even after just a few weeks.

It gets worse if it starts stretching into months and months.

Many homeowners start to wonder if their real estate agent isn’t getting the job done. And they start considering either “withdrawing” their listing, or letting their contract with the real estate agent “expire”, and plan on hiring a different agent.

Some homeowners have total faith in their real estate agent. They want to stick with the agent they have hired. But they think it would be good to withdraw their listing, and pop it back on the market so it looks like a new listing, hoping to get buyers’ attention.

This is a mistake. Back in the day, this little trick could work. But, it isn’t fooling anyone anymore, and it can have a less than desirable effect.

Big brother is watching.

Remember this from earlier? With just a few button clicks, your house gets distributed all over the Internet…

In some ways, this is great. Your house is exposed to the entire market quickly and efficiently.

In some ways it’s bad, though…

Not too long ago, it was pretty difficult to figure out if a home had been listed more than once, or for how long it was on the market. Real estate agents had access to the information, but consumers did not.

Now, everybody and anybody can see:

  • If a house has been listed before.
  • How many times it has been listed.
  • How long it’s been on the market.
  • And even more information…like if there’s any pending foreclosure, for instance.

Basically put, more information is available than you would ever want made available. And you have no control over it. Nor does your real estate agent.

All of this information is “scraped” and aggregated by real estate websites, like Zillow and Trulia.

Back in the day, it was no big deal to withdraw your listing, or let it expire, and relist it. Few people would be aware of it, unless a real estate agent dug up the information and chose to share it with their client.

Now, a buyer would almost have to deliberately avoid seeing this information.

So, what’s the big deal?

Whether it’s right, wrong, or somewhere in between, the number of times your home has been listed, and the length of time your house has been on the market, affect how buyers perceive your home and its value.

This stinks, because you can have absolutely valid reasons why your home isn’t selling quickly…

Perhaps it’s a supply and demand issue. (Too many houses available and too few buyers buying houses.)

Or maybe you have a high-end home, and there just aren’t many sales in the price range, so it takes quite some time to sell.

Those sorts of reasons are valid. There’s nothing you can do to affect that.

And it’s awful (for sellers at least), but the Internet and available information can cause buyers to sense that the house isn’t selling because “something is wrong”.

Or buyers may feel like, “since the house has been on the market for so long, the owner has to be negotiable or desperate.”

There’s plenty of other legitimate reasons a house may linger longer on the market…

But way too often, the reason houses linger on the market is because homeowners list their home for way too much money. And, quite often, don’t reduce their price to be in line with the market and actual value.

That you can, and should control…

Otherwise, you’re causing buyers to dismiss, overlook, or undervalue your home…because the Internet.

So, here’s what you do…

Control what you can control.

  • Make sure you hire a real estate agent who gives you an honest assessment of your home’s value.
  • Do not hire an agent that simply says your home is worth the amount you want to hear. Or one who agrees to list your house for a higher price than they recommend, just to appease you and get your listing.
  • Price your home appropriately within the market. Price it to sell…not to linger. (This does not mean “give your house away”. There’s a fine line and balance. A good agent will help you find that perfect balance.)
  • Don’t withdraw your listing, or let it expire, if at all possible.
  • If your home is not selling, assess whether the price is reasonable for the market. If it’s, be patient. Keep it on the market. Stay the course.

Ignore this advice if…

If you have hired a good real estate agent, and he or she disagrees with this, listen to them.

Real estate is “local”. Your agent will know what may help or hurt you in your area, more than a general article.

But, if you and your agent are discussing withdrawing or relisting your property, maybe you should bring up what you have read here. Your agent may never have even thought about this angle.

At least it can lead to an in depth conversation about the pros and cons of withdrawing or relisting your home, before just doing it because it seems like a good thing to do.

Again, there are valid reasons a home can linger on the market. Things you and your agent can’t control. It’s not the end of the world. It doesn’t spell doom for your sale.

A good agent isn’t going to let a buyer get your house for a steal, just because of some information the buyer has seen on the Internet.

However, what they find and see on the Internet will certainly fill their mind with thoughts. So, try not to give them anything to think about, other than making a full price offer as quickly as possible.

Source: http://www.bestrealestateblog.com/why-you-should-only-list-your-house-once?m=JnojPGPgYwNqRUqKIeuc

3 Tips On Timing The Sale And Purchase Of A Home

Posted on by Ali Palacios - Broker

If you’re like most people, you’re probably concerned about selling your house before having one lined up to buy.

You don’t want to sell your house first, not having somewhere to go.

But, at the same time, you know you can’t buy another house, without selling the house you already own.

Ideally, you want to time the sale and closing of the house you have to sell, with the purchase of the house you’re moving to. Ideally…

But, it isn’t always easy, or even possible. You certainly can’t bank on it. So, it’ll help you to have a few tips to up the chances of timing the sale and purchase as much as possible, or at least have a plan just in case it doesn’t…

1. Negotiate time to find a home.

Probably the easiest solution is to sell your home to a buyer who’s willing to give you some nice terms in the contract.

You can negotiate in that the sale of your home is contingent upon finding and buying the home you’ll move to.

Not all buyers will be willing to agree to this, though. And you may have to budge a bit on your price or other terms of the agreement.

But, if it makes your life better, less stressful, and costs you less than any other alternative, it makes a whole lot of sense to give a little to get a little.

Note: This can be hard to pull off if your buyer is also selling their own home and need to time the sale and purchase on their end as well. There’s a whole “trickle down” you might need to be sensitive to. This approach works best if you’re selling to a first-time home buyer.

2. Get a bridge loan.

These aren’t the easiest thing to find, but you might be able to find a bank who will lend you money without selling your home, or as long as you have a viable contract on your home. It could be a bridge loan. Or it could just be that the lender feels you can carry both mortgages for a short period of time.

Of course, you can do away with all of these concerns if you have enough cash on hand, or own your other house outright. But most people aren’t in that position.

Note: Don’t look into these options once you have your house under contract and have found one you want to buy. Do this before you even start the process. Look into different lenders and the options they may have for you. You might be happily surprised.

3. Have a back-up plan.

Most people don’t have so much extra money that they can just rent a hotel room and storage for all of their furnishings while they’re in between the home they sold, and the home they’re buying to close.

But, if you have that kind of money, that’s a good option. Go on a local “vacation” for a while, and send your stuff to a storage facility.

Or, maybe you can find a short-term rental in your area. But, again, this might not be budget-friendly for everyone.

If you don’t have that kind of money, line up a place to stay with someone in your family. No, this isn’t ideal, but it can do the trick.

Note: Having any of these as your back-up plan can take the pressure off of you to just buy whatever house happens to be available and line up with your timing. It can buy you time to wait a bit for the perfect house, and take some of the pressure off when you are negotiating. If you are pressed for timing, you may be forced to pay a higher price for the house you are buying. So having a plan for where to stay “just in case” can cost you…but it could also save you in other ways. So, look at the silver lining.

First things first…

No matter what, don’t expect to just wing it and hope everything works out for the best.

Come up with your game plan beforehand.

Maybe you don’t even have to worry all that much. That depends on your local real estate market. It may just be that the house you have to sell will be easy to sell, and have such demand that you can call the shots in regard to the terms of the agreement and get time to find the perfect home. And, who knows…maybe there are plenty of houses for you to buy that are just sitting there waiting for you, and the owners would be just fine helping to time the closings with you.

And the best way to find that out, is to call your real estate agent, and work hand in hand with your agent from the get-go.

Real estate agents deal with these concerns day in and day out and can help you make the best decision and plan considering your wants, your needs, your situation, and the local market.

 

Source: http://www.bestrealestateblog.com/3-tips-timing-sale-purchase-home?m=JnojPGPgYwNqRUqKIeuc

Why Your Home Isn’t Getting Shown As Much As You Think It Should

Posted on by Ali Palacios - Broker

Picture having your house for sale, and you feel like it isn’t being shown enough. Or maybe it isn’t really being shown at all.

You expected lots of buyers coming through. Ideally, you even expected an offer (or multiple offers!) to come in pretty quickly.

But instead, not that many people seem to even know your house is for sale. Otherwise, they’d come out and see it. If people would come and see it, the house would practically sell itself, because it’s so nice.

You’re discouraged, frustrated, and angry…

You wonder if your real estate agent is doing his/her job.

Isn’t your agent supposed to be showing the house to their own buyers? That doesn’t seem to be happening.

Aren’t the other agents in your agent’s office supposed to be showing the house to their buyers?

Not one agent from his office has shown it yet.

Isn’t your agent supposed to be spreading the word to other real estate agents at other companies, and getting them to show the house to their buyers? Again…not happening. At least not as much as you anticipated.

And, isn’t your agent supposed to market your home, so that buyers that neither he, she, or any other agent even knows about, will come out and see your house?

Your agent probably isn’t doing anything wrong.

While it’s natural to be frustrated, it won’t do you much good. It will do you less good to be angry, or disappointed with your real estate agent.

You’ve probably expressed your frustration, and all your agent seems to be doing is making excuses. Or pushing you to do something you don’t want to do…like lower your price. Your frustration, and pushing to see more showing activity, may very well be forcing your agent to react that way, when in fact all you need is some perspective.

What may help you most in this situation is some third-party, objective thoughts. So, here goes.

First, here are some basic things many homeowners do not know.

  • There are only so many buyers in the market at any given time.
  • Not all of the buyers are even ready, willing, and able to even buy your house right away.
  • Some buyers are just getting started looking, and much of that begins online.
  • Most of the buyers who are truly ready, willing, and able to buy are the only ones you need to care about.
  • And most of them are represented by, and working with a real estate agent.
  • Maybe an appropriate, ready, willing, and able buyer is working with your listing agent…but, most likely not.
  • And, there’s a good chance that the most appropriate buyer isn’t even working with another agent within your listing agent’s office.

OK, with that under your belt, let’s get into a few more thoughts.

  • Not that many years ago, people had to call the listing agent or their office for even the most basic information about your house…like the price, or address. Or at least have a buyer’s agent who represented them to get them the information.
  • If they saw a picture of a home for sale, it was likely just that…a picture. Of the outside of the house.
  • Both of the above caused buyers who were at even the earliest stages of buying to come out and see a house for sale. It was the only way to rule out a house. It was the only way to get their feet wet and get a handle on what they could afford.
  • None of that is necessary anymore, now that the Internet has allowed so much information to be available to buyers at all stages of the process to see from the comfort of their own home.

The Internet has cut down on showings.

Buyers at all stages of the process (just beginning, all the way to needing to make a decision immediately) see a house that goes for sale immediately, in real time, as it pops up on the market. Pictures and all.

They can even see maps of the location, aerial views, street views, videos, etc. They can literally see inside the property, with all of the pictures made available nowadays!

There’s virtually no need to go out and physically see a property…unless it’s of actual interest to them. Before, they had to go out just to rule out houses. So, almost every house on the market would get more showings back in the day. Every buyer, at every stage of looking, would come out just to get a peek. Now they do it remotely.

This cuts down on how many buyers come out to see your home.

And only the most interested, most serious, ready, willing, and able buyers are coming out to see your home.

This is a good thing…it’s efficient.

So why isn’t your house being shown?

It’s natural for an owner to want more showings. But, be careful what you wish for.

Just creating traffic through your house isn’t entirely beneficial. You should only want serious, ready, willing and able buyers coming through. And remember, there aren’t endless amounts of them in the market.

What’s the use of harassing your agent to create traffic and showings if the buyers have no ability or intention of actually buying the house? You are tasking your agent with creating a bit of a dog and pony show for you.

Instead, sit down or hop on the phone with your agent and get down to what the real root of the problem is. The most sensible thing to do is for you and your agent to analyze what the cause is, and hopefully generate more showings.

Go over things like the following:

  • Is it the overall market? Are there not that many buyers actually buying in your area and price range? If so, maybe just be patient.
  • Are the buyers who have seen your house buying other homes? Then, maybe your house is overpriced, or not as appealing as other choices in the area and price range.
  • Is your house not being shown at all? Good chance that it’s either your price is too high, or there are no buyers in the market. Again, look to see if there are other houses comparable to yours selling.

More often than not, the reason a house isn’t getting shown is due to either the market being a bit slow, or the price being too high. It’s that simple.

Pricing appropriately within the market should get your house shown and sold quickly to the ready, willing, and able buyers in the market…as long as there is at least a buyer who is ready, willing and able in the market.

So, just take a moment to truly understand that creating more showings won’t solve the problem of getting your home sold. You can have showings every hour of every day, but there are only so many true buyers in the market, and they are aware of every house on the market the minute it comes on.

If nobody is coming, and / or nobody is buying it…it’s either price, or a lack of buyers altogether.

 

Source: http://www.bestrealestateblog.com/home-isnt-getting-shown-much-think?m=JnojPGPgYwNqRUqKIeuc

Why Do Houses “Expire”?

Posted on by Ali Palacios - Broker

You’ve seen this happen…

A house sits on the market forever, and it doesn’t get sold.

You see an agent’s for sale sign sitting in the yard for months and months. And then, all of a sudden, another one appears.

Sometimes, the new agent will get the house sold.

But sometimes, no matter how many different agents list the house, it just never sells.

You’ve been watching that house “expire”.

That is industry-speak for when a house doesn’t get sold during the time frame an owner has a listing contract with a particular real estate agent.

When a listing expires, it’s not uncommon for the owner to hire someone new to list their home…figuring the first real estate agent just didn’t have what it takes to get their home sold.

But, it usually isn’t the agent that was the problem. There are a few common problems that cause a house to expire.

However, it almost always boils down to one specific issue…and one specific solution.

So, here’s a list of the typical problems that lead to a house “expiring”, so you don’t make the same mistakes when you sell your own house. We’ll end with the one that is the overall problem and solution.

You can’t sell what people can’t see.

Sometimes it just boils down to buyers being unable to get in and see the house easily. Some homeowners make it too difficult for buyers and their agents to come in and view the home.

It’s fine to have some limits. But if a homeowner requests that all buyers give 24-hour notice, and will only allow the house to be shown on Thursdays between 11:30AM and 2:23PM, that makes it pretty tough to go see.

The maid is on permanent vacation.

It can be tough to keep your house spotlessly clean while it’s for sale. People wake up and run out of the house for the day having left some dishes in the sink, or beds unmade. That happens. It isn’t the worst thing in the world.

But some houses are just a mess. Buyers and agents come in wondering how anyone lives there, or even lives like that. There’s stuff everywhere. It smells.

No matter how much imagination a buyer may have, it’s hard to truly look at a house that’s extremely cluttered, or downright dirty, and picture themselves living there.

Location, Location, Location

The location of a house might just be undesirable.

If a home is located on a main road, or under power lines, or train tracks…or across the street from a firehouse…it can be harder to sell and may take some time for the right buyer to come along.

Supply and demand

If the market is “slow”, or a “buyer’s market”, it isn’t uncommon for houses to expire.

Sometimes it’s just a simple matter of supply and demand.

If there are a lot of houses on the market, and only so many buyers buying, there’s only so much you can do.

Sometimes it’s just a matter of buyer preference. A house could be easy to show, clean, and priced well against the competition. But if there’s only one buyer for ten houses that are equal in appeal and priced similarly, there’ll be nine disappointed homeowners, and one happy one. That buyer may have just chosen the house they chose because they knew someone who lived on that street. Or liked the paint color, or layout a little better.

There isn’t much a homeowner or agent can do about this.

To be fair…

It could just be that the real estate agent (or agents) the homeowner hired stink at selling houses.

That could be the case. But that usually isn’t really the problem. And another agent usually isn’t really the solution.

Most of the time agents are advising their client to make the home as easy to show as possible. And to declutter, and keep it as clean as possible.

And they take into account the location of the home and supply and demand.

That doesn’t mean that their clients listen to them in regard to the biggest problem and solution that takes all of the above into account…

Price

You may have heard this before: In real estate, price isn’t always the problem, but it’s always the solution.

Sure, a house could be worth every penny a homeowner is asking. It might very well be justified by recent comparable sales in the area.

But price will always get a home sold. And if a home isn’t selling, it’s almost always due to the price not being appealing enough to overcome any of the above factors.

  • It can overcome having strict showing times. If a homeowner wants to limit their house to being shown one day a week at a certain time… Fine. If you price the house aggressively, buyers will go out of their way to adjust their schedule.
  • It can overcome clutter and messiness. It doesn’t matter how awful the house shows, or how smelly it is…if it’s priced appropriately for the condition.
  • It can overcome supply and demand. If few homes are selling, and there are a lot of similar choices for buyers to choose from, a lower price will certainly make the buyers choice easier.

As much as real estate agents are perceived as being pushy, most are not. And they get blamed for houses not selling — for expiring — when most of the time it’s because the homeowners they represented didn’t listen to their advice about pricing their home. Price takes into consideration every factor.

So, when you see a real estate agent’s sign linger for too long… Or watch their sign disappear, and another one take it’s place…

Don’t be too quick to judge the listing agent for the lack of success.

It’s more than likely due to a homeowner who isn’t listening to good advice, that would help them avoid these common issues, and get their home sold.

 

Source: http://www.bestrealestateblog.com/why-do-houses-expire?m=JnojPGPgYwNqRUqKIeuc

Should you offer a bonus when selling your house?

Posted on by Ali Palacios - Broker

Sometimes people wonder whether offering a bonus to the buyer’s agent will help their home sell faster or for more money. Good question. Even real estate agents are divided about it. Some say no. Some say yes. Ultimately, it’s your decision as a homeowner. So here’s a list of pros and cons for you to think about before you make the decision.

The Pros

Let’s be honest, offering a bonus to the buyer’s agent is meant to incentivize the agent to sell your house. It’s basically playing on the desire of a real estate agent to make more money than they would make selling another house. Money certainly motivates people. And real estate agents are people… So, ideally, this is what offering a bonus might do for you:

  • It might get a buyer’s agent to really want to sell your property.
  • It might make your house sell more quickly.
  • It might make it sell for more money (if it makes more agents clamor to get their buyers to make offers and creates heightened demand…or, if an agent feels compelled to urge their client to offer more money to make the deal happen.)

The Cons

Above, we mentioned people are motivated by money, and that real estate agents are human… However, many real estate agents are somewhat superhuman. There are a lot of agents who simply aren’t driven by money. They certainly aren’t going to put their clients’ needs behind their desire or need for money. Agents tend to have a high degree of ethics and put their clients’ needs before their own. So, there’s a good chance this is what will happen when you offer a bonus:

  • It could be wasted money (many agents won’t take it, or will pass it along to the buyers.)
  • It won’t sway most agents from endorsing, or not endorsing your house. If your house is a good fit for their client, they will show it. If it is not, no amount of bonus will get them to show it.
  • It won’t sway a buyer. The buyer is not likely to buy a house, let alone pay more for it, because of a bonus being offered to their agent. If anything, if a buyer’s agent starts pushing a buyer to buy your house, it may actually backfire. Many buyers will put on the brakes if they feel they are being pushed.

Making your decision…

This article is just food for thought. Certainly listen to your real agent’s perspective and advice. Also, get comfortable with your own perspective and thoughts before offering a bonus. Ultimately, a well-priced home, which is exposed to the entire market, is what gets a home sold for top dollar and as quickly as possible. But if you have some extenuating circumstances, and your house is hard to sell for some reason, you might want to consider offering a bonus so agents pay attention to a house they may otherwise have ignored.