Tag: #pricingahome

Happy Clients Realty Group - Ali Palacios > #pricingahome

In defense of a real estate agent

Posted on by Ali Palacios - Broker

Real estates agents get a very bad rap. We are right there with car salesmen.

I feel the rejection as soon as I greet an open house guest. I’m just trying to tell you more about the house! I promise that it’s not a sale pitch…You can’t force someone to love the home. It seems like a few bad apples in a group will give the entire group a bad reputation.

No one likes a pushy salesmen. I personally don’t like it. I feel a sales pitch coming my way and I RUN. I understand. In defense of my peeps, most real estate agents love what they do and truly have your best interest in mind.

I get asked a lot why real estate? This question is usually followed by pursed lips. ugh.

I absolutely love what I do. Let me tell you why:

  1. I feel like I make a difference in someones life. I’m there when someone purchases their first home; I’m there when the same family needs more space for their growing family; I’m there when the kids have left and they have an empty nest.
  2. Real estate is so much more than buying and selling a home. Typically when someone needs to buy or sell, there is an issue. Every issue is unique and every solution is unique. I’m present to console a surviving spouse or a divorcee during a trying time. I have helped many out of a financial burden when the mortgage payment is overwhelming. Not every situation is happy but I’m still there for my clients.
  3. I love working with buyers that are not qualified for a loan. With a few changes most people can qualify for a loan within a few months. Guiding someone through credit repair, down payment assistance programs and overall mortgage education can make their dream for home ownership a reality.
  4. I love to educate. Buying and selling a home is complicated. I want my clients to understand the process and not feel lost. I love collaborating with my clients to obtain their ultimate goal.
  5. I love building new friendships. I can honestly say that if it was up to me, I’d be BFFs with all my clients. I love to stay in touch and see how our lives unfold. The beauty of this profession is that I can work with those I want to work with. I refuse to work with as&$%les.
  6. We all strive for that work/life balance. This profession gives me flexibly. Because I love what I do, I find myself working all the time. If it doesn’t feel like work, you tend to over do it. That said, when I need to I can turn it off and enjoy life.

This career is not for all. We invest many many many hours with our clients. Don’t believe what you see on TV. Shocker! Reality TV is not reality.

A good agent is compassionate and patient.

So next time an agent approaches you, don’t run in the other direction. Give them a chance and get to know the agent, more than likely they will become your new BFF. 🙂

 

Don’t spend $1.00 on this before you list your home…

Posted on by Ali Palacios - Broker

Don’t do any home improvements. Don’t renovate. Don’t spend one cent on improving your home before you list your house for sale…

…at least not until you speak with me.

Too often, homeowners feel compelled to spruce up their home before putting it on the market. At face value, that makes sense. You want it to show as nicely as possible. And, it seems to make sense that if you improve the home, it will also improve the value.

However, many of the things homeowners spend money on do not raise the value as much as the cost of the project they completed.

The way I see it, my job is to make sure my clients net as much money as possible on the sale of their home.

And while that certainly entails getting a buyer to pay as much as we can for it, my job begins well before that…

Netting as much as possible is as much about not losing or wasting money, as it is getting as much money for your house as possible.

For instance, if someone spends even $1,000 on a renovation or improvement, and it doesn’t increase the value more than $1,000…it was probably a waste of time and money. Which means they didn’t net as much as possible.

There are exceptions, of course. If something needs fixing, and it will get in the way of the home selling at all…well, then it will make sense to spend the money even if it doesn’t actually raise the value.

There’s no one answer. Every home and situation is different. It takes analysis and thought before I can say whether it’s worth doing something or not.

So I recommend, and offer, to come by and assess whatever project you may be considering, before you just go ahead and do it. (As always…no obligation, and completely free.) It’s my pleasure. And, the way I see it, it’s my duty.

Give me a call and we can schedule a time for me to swing by and take a look.

Getting and keeping the highest price for your home

Posted on by Ali Palacios - Broker

Pricing your home appropriately is super importance.

If you ask, almost every real estate agent will say that the most important thing in getting a home sold is “price”. And, that is true…

But, price alone doesn’t get a house sold for top dollar. And, even if you get the best offer possible, that doesn’t mean the deal won’t fall apart before you ever get to the closing table.

Many deals fall apart before closing. Especially if you have gotten the absolute highest price for your house. This is due to “buyer’s remorse”.

Buyers often regret buying almost anything, but especially something as expensive as a house. And, even more so if they feel they’re paying top dollar for the house. So, buyers often look for and find ways to back out of deals.

It takes experience, skill, and an understanding of how buyers think, act, and react to keep a deal together.

It also helps if your agent understands how the agent representing the buyer thinks, acts, and reacts.

Oh, and how the appraiser will think, and being ready and able to defend and justify the value the house is selling for.

That’s just to name a few of the moving parts that can squash a deal and put you back on the market…which should be avoided if at all possible. (It’s always hard to explain away why your deal fell apart. Buyers and agents notice when this happens, and it often leads to getting less for your house than you did in the first place.)

That’s why it is so important to not only get the highest amount possible for your house, but to also keep the deal together.

Much like pricing a home, doing all of this is as much an art, as it is a science.

It’s so important not to hire any old real estate agent. Hire one who knows the ins and outs of how all of the people involved in the sale tend to think and act.

Negotiating isn’t just one moment. It isn’t just about getting the buyer to pay the highest price possible. It’s about keeping the buyer in check throughout the process, as well as everyone else who has a say in whether the deal moves forward or not.

It’s pretty easy to get a real estate license. And, unfortunately that tends to make the public see all real estate agents as a dime a dozen. But it takes more than just having your license to get your clients the highest possible price AND keep it together all the way to the closing table.

When it comes time to list your home, I assure you, I am not a “dime a dozen” real estate agent. And, I am worth every penny…

Do you want to sell your home for top dollar?

Posted on by Ali Palacios - Broker

That seems like a ridiculous question, doesn’t it? Who wouldn’t say yes?

But yet, so many people make one huge mistake that stops them from getting top dollar for their home.

What’s weird is that the reason they make the mistake in the first place, is because they think doing so will get them top dollar for their home. But it doesn’t. In fact, it typically causes them to get less than they should…

That mistake is overpricing their home.

The hazards of overpricing are too numerous, and detailed to get into in this email. (But if you’re interested, just let me know and I’m glad to chat with you at length about them.)

Sadly, it happens more often than not.

How and why???

Here are 3 main reasons:

  • Because it’s natural for a homeowner to believe their home is worth more than an agent suggests.
  • Because many agents aren’t very good at explaining the data to clients, or illustrating how much damage overpricing can do.
  • Because many agents will agree to list someone’s home for too much, simply in order to avoid a tough conversation…or to get the business, and convince the owner to reduce the price over time.

So, it leads to many people selling for less than they should, and taking a longer time to get it sold.

Now, this isn’t to suggest that you should price your home too low, or “give your house away”. You need to price it perfectly. And that can be a fine line.

Pricing is as much an art, as it is a science. And, I take great pride in making sure I help my clients find the perfect pricing and positioning within the market in order for them to achieve the highest market value.

As experts in your neighborhood, my team and I have the knowledge and experience to choose the best list price for your property. Our goal is to maximize your proceeds while minimizing the time it takes to sell your property.

Thinking about selling?

Posted on by Ali Palacios - Broker

So you are thinking about selling a home? The truth is that most home owner move every 5-8 years.

Here are the top reasons why people sell and move:

  1. Home is too small. Home owners often outgrow their first home. Increased family size is the main reason home owners say they need a larger home.
  2. Upgrade. People often seek new and energy efficient homes. Or they simply want what they don’t have and long for a bigger, more expensive and grander, upscale home.
  3. Fix. Owners might believe they made a mistake in purchasing their present home. Maybe they thought they could get by without a back yard but now want a garden or a pool. At times the small things that bothered you from the beginning, become a bigger issue later.
  4. Job transfer. Relocation makes it necessary for many to pull up roots and move. If the commuting distance exceeds an hour, most people would prefer not to spend two hours in traffic every day.
  5. Bring on the new. Sometimes you just need a change
  6. Personal Relationships. Marriage can mean one of the parties will need to sell, especially if both owned homes prior to the commitment. On the other hand, break-ups/divorce cause owners to sell as well. Death in the family will also cause financial issues that might cause the family to sell.
  7.  Neighborhood changes. The neighborhood might have changed for the worse, economically, socially or physically.
  8. Neighbors. Unfortunately you won’t always click with people and sometimes these are your neighbors.
  9. Health problems. Physical ailments in aging might make it difficult to climb stairs in a two-story, so a one-story home may be more practical. At times home owner will need to transition to an assistance living facility.
  10. Climate. Sometimes seller simply seek warmer or cooler temperatures.
  11. Empty nest. The kids have grown up and moved out. The owners want a smaller home. The older you get, the harder it is to keep a big house clean.
  12. Deferred maintenance. Some people don’t want to put on a new roof, replace the siding or buy a new furnace, so it’s easier to buy a newer home.
  13. Closer or further from family. Home owner at times would like to spent more or less time with family members.
  14. Schools. Changed in school can cause home owner to move. Maybe they’d like to be zone to a particular school or they no longer feel safe in their current school zoning?
  15. Retirement. Active-adult communities are attracting many buyers over the age of 55. These planned communities have golf courses, club houses, workout facilities, week-end social gatherings, back-yard barbecue parties and more, all designed for people over 55.
  16. Home improvement perfection. A small segment enjoys fixing up and selling, spending time, money and effort on remodeling, and once the work is completed, these people become restless because there is nothing left to do.
  17. Cash in equity. Some home owners can’t stand the fact their home is worth all that money because that money is not in their pocket.
  18. Lifestyle change. Others are simply tired of owning a home and would prefer to travel, pursue a hobby or be less responsible. The goal is to sell the home and travel the world.
  19. Cost of running a house. Changes in job or position can cause financial strain and the home is no longer affordable.
  20. Moving to study. Academic goal will sometime force a seller to sell sooner than expected. Proximity to the school might be a consideration.

What ever the reason, we are here to help when you are ready.

 

It’s Time We Had A Realistic Discussion About Your Home’s Value

Posted on by Ali Palacios - Broker

When you go to sell your house, there’s a good chance you’re not going to agree with what a real estate agent suggests for a list price.

It’s one of the most common issues real estate agents deal with, and help homeowners understand.

Problem is… many homeowners don’t necessarily see it as agents trying to help them, so much as convince them to do something they don’t want to do.

Naturally, you want as much as you can get for your home. And, you’ll certainly have your own opinion on the value of your home. You’re totally entitled to your opinion. And it’s totally your call to ignore the agent’s advice, and list your house for as much as you like… if the agent is still willing to work with you.

But if the agent is not willing to, it doesn’t matter, you can always find any number of agents who will put it on the market for as high of a price as you want.

But, it might be the biggest mistake you can make…

In the least, you’ll just waste your time. (And the agent’s time.)

But, it could also lose you money, instead of makeing you money…

There’s lots of ways this happens, but one of the biggest reasons is that the longer you are on the market, the more it impacts how buyers perceive your home, and what it is worth.

And that is hard to hide…

It has become more and more of an issue as so much data and information has become available online. Like, how long a house has been on the market, and how many times it has been listed without selling.

So, the best thing to do, is list your home based upon the current market data… not what you want, wish, or think.

When it comes to pricing your home for sale, Jack Welch, former CEO of General Electric, has such an appropriate quote…

“Face reality as it is, not as it was or as you wish it to be.”

Let’s break that down and apply it to pricing your home… starting in reverse.

As You Wish It To Be

This is so human, isn’t it? Everybody has things in life they wish were different and better.

 

And so it is when many homeowners want to sell their home.

Not to say that everyone thinks that their home is worth a million dollars. But almost every owner feels like their home is worth a good amount more than the actual market value. Usually by tens of thousands of dollars. Regardless of price range.

But the market value is based upon what buyers have paid for similar homes recently. So you need to base your price against the prices similar homes have sold for.

You can’t expect your 3 bed, 1 bath Ranch style home, to sell for as much as a 4 bed, 3 bath Colonial in a similar (or better) location and condition than yours.

You can wish it would. But it probably won’t.

Not As It Was

A lot of times, when they hear how much their home is worth in the current market, say something along the lines of…

“There’s no way my house is only worth $525,000. Back in 2005 my house would have gone for $700,000! And, sure, I know that the market was crazy high back then, and the market took a dive. But the market is bouncing back now. So, I can’t see asking anything less than $650,000.”

OK. Deep breath. Phew. Here we go…

But, let’s just say it was worth $700,000 back in 2005. And now it truly is only worth $525,000. That is the reality. Now. And that is all you can deal with. You can decide not to sell. Wait out the market until prices go up to a point you are happy with.

You cannot, however, turn back time. You can’t price your home based upon such distant history… as it was. It won’t do you any good.

Face Reality As It Is

It is that “simple”. But yet, so hard.

So many homeowners overprice their homes, and lose money in many ways by not facing reality as it is.

And a lot of real estate agents reluctantly allow homeowners to do it. It takes a pretty special agent to be firm about pricing with a homeowner.

Because many agents will do as you wish. And they’ll put your house on the market and wish right along with you.

First, they’ll wish for a miracle…

Then, they’ll wish they were firmer with you on the price to begin with…

And the whole entire time, they’ll wish that you would just lower your price already…

And they will bring up lowering your price. Constantly. And you will be annoyed. And feel like that’s all they are doing. And you’ll start thinking about who the next agent you hire will be, once your listing contract expires with the agent who did as you wished.

So, save yourself some time, aggravation, and make as much money as you can and should on your home, by facing reality as it is, not as it was or as you wish it to be.

You’re better off listening to and hiring an agent, who is firm about your market value, and helping you face reality, than you are working with an agent who is, well… wishy-washy.

Source: http://www.bestrealestateblog.com/time-realistic-discussion-homes-value?m=JnojPGPgYwNqRUqKIeuc