Seven Main Ingredients that Make up a Sell / Purchase
When all of the following ingredients are in agreement…
Location:
To coin the favorite phrase of appraisers: “Location, Location, Location.” The pricing of your property must reflect its location.
Condition:
The upkeep and presentation of your property is crucial to obtain the highest value for your home in any given market at any given time.
Price:
Price is the number one factor in the sale of a home. A property is really only worth what one person is willing to pay another to gain ownership of it. Price must be in direct relationship to the other 4 ingredients and it is the most important of all!
Terms:
The more terms available on your property the more potential purchasers you reach. The pricing of your property must reflect the kinds of terms available to purchase it.
The Market:
I.E. Interest rates, competition, and the economy all make up and influence the state of the Market when you sell your home. The pricing of your property must reflect the current status of the Market.
Creative Financing
Financing can be time consuming and stressful. When the buyer is pre-approved it makes the process run smoothly.
A Good Realtor:
An agent that cares about what your goals are and is willing to work towards that goal of getting the best deal in a timely manner is exactly what you will need.
Setting the best price to list your home is part science, part art. There are several aspects of the home's value we consider when making pricing recommendations.
1. Comparison. Where does your home fit in the marketplace? It should be priced to be competitive with comparable houses in the same area.
2. Negotiation. The price should allow some space to make concessions in order to close the deal.
3. Return. The listing price should be set so you net the most money possible from the sale.
4. Target. Ideally, the price is adjusted to the top of a multiple listing category, so the home's features compare favorably with lower-priced homes in the range. (If it is placed at the bottom of the next higher price grouping, the higher-priced houses will look better and sell more quickly.)
Unfortunately, what you paid for your home is not a factor in determining its market value. Neither is what you would like to get out of the home. Some home improvements you've made may add to the market value, however. Having the house in picture-perfect condition from the first day of the listing may also increase the value of your home. But mostly, these will help you sell faster, and that could mean a sale price close to your asking price.
Don't offer gimmicks; instead, correct defects -- cosmetic and structural -- and price the property right. The biggest incentive you can give a buyer is a well-prepared home that's listed for a realistic price. The listings that are selling in today's market are priced right for the market, they look good and there's no doubt in anyone's mind that the property is available.
Consultation with an accountant and/or attorney is recommended before entering into any financial transaction.
Showing posts with label real estate agent. Show all posts
Showing posts with label real estate agent. Show all posts
Thursday, May 24, 2007
Buyer: Be Prepared To Buy
Buying a home is one of the most important personal and financial decisions you'll ever make. We want you to have this step-by-step guide to help you be prepared to buy your first home.
Knowledge Is Power ...
Accurate Information Is Essential Knowledge is power become an educated consumer because misinformation can get in your way. First, learn about the process and requirements for buying a home. Choosing Your Real Estate Professional Deciding to find and buy a home is one of the most important decisions of your life. It combines your personal hopes and dreams with wanting what's best for you and your family. It means making changes. That's why it's in your best interest to choose an experienced real estate agent who listens to and understands your needs, and works in the area where you want to live.
Reduce the Stress, Develop a Financial Plan
You can reduce the stress of home buying by thinking ahead. Before you find a home you want to purchase, develop a financial plan. This plan becomes your guide not only for saving money for the down payment, but also for covering other expenses such as your credit check, mortgage application and closing costs.
Establishing Credit
Having an established credit history plays an important role in the home buying process. It's never too soon to start building a good credit history. Start by diversifying how you pay for things; don't pay for everything with cash. Pay your bills on time, limit your debt, reduce the number of credit cards you have, and use them responsibly. Your goal is to show that you are financially responsible and a "good credit risk."
Closing and Other Additional Costs
After you find a home and receive mortgage approval, the closing is when ownership of your new home officially transfers from the seller to you. In some cases, sellers pay the closing costs. If not, you need to be prepared to pay this additional cost. This can add another two to five percent to the home purchase price. These costs also can vary from state to state.
Finding A Home …Your Search
Where do you start when you're ready to find a home? You'll want to have an idea of the features you "want" versus "need" in a home. Then the fun begins!
Making An Offer
When you find a home you want to buy, you'll make the seller an offer in writing. Your offer is typically the first step toward negotiating a sales contract. That's why determining how much to offer is more complex than simply determining a price. Because of the large amount of money involved, both the buyer and the seller need to protect their investments and limit their risk. This is why when you make an offer, you not only specify the price you are willing to pay, but also the other details of the purchase.
Contingencies
Contingencies generally allow you to anticipate potential problems so if something goes wrong, you can cancel the contract without penalty. If you cancel a contract without having agreed upon conditions and contingencies, you could find yourself forfeiting your good faith deposit and money spent to inspect the property, as well as other damages. For this reason, it's recommended you retain an attorney. Your attorney will advise you about what to include in your offer to protect yourself.
Your Good Faith Deposit
Along with your offer, you'll provide a "good faith" deposit that demonstrates to the seller your serious interest in buying. This is one of the additional costs mentioned earlier. This money is deposited only once the offer has been negotiated and accepted by both parties.
The Home Inspection
After you find a home and make an offer, a house inspection is often ordered. The seller should have the property available for inspection by a professional. In a typical inspection, experts examine the existing conditions of the property. Inspections may be required by law with the elements inspected varying by region, state, and/or your agreement. The most common type is the General Home Inspection. A home inspector can provide you with a complete service that covers from the basement to the attic, as well as the exterior of the home, walls, chimneys, and fixed appliances such as refrigerators and stoves. Other specific elements that can be included: (not a complete list)
· Termite · Plumbing · Water Quality · Lead
· Radon · Septic Tank · Asbestos · Electricity
The Final Walk
Though Before the closing and property ownership is transferred, you will want to visit your future house. This "walk-through" is an opportunity to ensure that the house has been left in the expected condition. You should make sure that all the items the owner agreed to leave are still there, such as kitchen appliances. This may also include furniture and accessories listed in the final sales contract. If there are problems, discuss them with your agent and attorney. In some cases, you can ask for a discount or credit at the closing to cover missing items or last-minute damages to the property.
The Closing
To be knowledgeable and prepared, ask your agents and attorney to go over the details of the closing with you beforehand. The closing process can vary by area of the country and even within the same state. Generally, the seller is required to provide clean title to the property at closing.
FUNDING
It's also important to review your credit report. This is a record of past and current debt that states when, how and if you paid. Make sure that the information contained in your credit report is accurate. By reviewing your credit report now, you'll have the opportunity to correct an errors. Ask your Agent to help you get a copy of your credit report to review. Don't wait until you've found a home to do this. Do it now. (see funding for more info)
Mortgage Pre-approval
A pre-approval is a simple calculation done by a mortgage lender that tells you (a) the amount you'll be able to finance through a loan and (b) what your monthly payment will be. When you find a home to buy, a pre-approval also reassures the seller that you have the financial means to purchase his or her home.
Once you know the amount the bank will lend you, the next step is to determine how much to save for your down payment. This will help you define the types of homes within your budget. Keep in mind the monthly costs associated with home ownership include not only your mortgage payment, but also real estate taxes, homeowner's insurance and utilities.
Your Down Payment
A down payment is the money you pay up front toward the purchase of your new home. Typically, the larger your down payment, the less you pay each month on the mortgage, and the lower the interest costs will be over the life of the mortgage.
How large should your down payment be? Many people make down payments of 5%, 10% or 20% of the sales prices of the homes they buy.
Your Mortgage
Your options for financing the home you find depend on your personal financial situation and your unique needs. Ask your agent for guidance about contacting mortgage lenders and getting a Mortgage Pre-approval. This will help you gauge how much you can afford to spend on a home and the financing options available to you. Here's an overview of typical financing
Knowledge Is Power ...
Accurate Information Is Essential Knowledge is power become an educated consumer because misinformation can get in your way. First, learn about the process and requirements for buying a home. Choosing Your Real Estate Professional Deciding to find and buy a home is one of the most important decisions of your life. It combines your personal hopes and dreams with wanting what's best for you and your family. It means making changes. That's why it's in your best interest to choose an experienced real estate agent who listens to and understands your needs, and works in the area where you want to live.
Reduce the Stress, Develop a Financial Plan
You can reduce the stress of home buying by thinking ahead. Before you find a home you want to purchase, develop a financial plan. This plan becomes your guide not only for saving money for the down payment, but also for covering other expenses such as your credit check, mortgage application and closing costs.
Establishing Credit
Having an established credit history plays an important role in the home buying process. It's never too soon to start building a good credit history. Start by diversifying how you pay for things; don't pay for everything with cash. Pay your bills on time, limit your debt, reduce the number of credit cards you have, and use them responsibly. Your goal is to show that you are financially responsible and a "good credit risk."
Closing and Other Additional Costs
After you find a home and receive mortgage approval, the closing is when ownership of your new home officially transfers from the seller to you. In some cases, sellers pay the closing costs. If not, you need to be prepared to pay this additional cost. This can add another two to five percent to the home purchase price. These costs also can vary from state to state.
Finding A Home …Your Search
Where do you start when you're ready to find a home? You'll want to have an idea of the features you "want" versus "need" in a home. Then the fun begins!
Making An Offer
When you find a home you want to buy, you'll make the seller an offer in writing. Your offer is typically the first step toward negotiating a sales contract. That's why determining how much to offer is more complex than simply determining a price. Because of the large amount of money involved, both the buyer and the seller need to protect their investments and limit their risk. This is why when you make an offer, you not only specify the price you are willing to pay, but also the other details of the purchase.
Contingencies
Contingencies generally allow you to anticipate potential problems so if something goes wrong, you can cancel the contract without penalty. If you cancel a contract without having agreed upon conditions and contingencies, you could find yourself forfeiting your good faith deposit and money spent to inspect the property, as well as other damages. For this reason, it's recommended you retain an attorney. Your attorney will advise you about what to include in your offer to protect yourself.
Your Good Faith Deposit
Along with your offer, you'll provide a "good faith" deposit that demonstrates to the seller your serious interest in buying. This is one of the additional costs mentioned earlier. This money is deposited only once the offer has been negotiated and accepted by both parties.
The Home Inspection
After you find a home and make an offer, a house inspection is often ordered. The seller should have the property available for inspection by a professional. In a typical inspection, experts examine the existing conditions of the property. Inspections may be required by law with the elements inspected varying by region, state, and/or your agreement. The most common type is the General Home Inspection. A home inspector can provide you with a complete service that covers from the basement to the attic, as well as the exterior of the home, walls, chimneys, and fixed appliances such as refrigerators and stoves. Other specific elements that can be included: (not a complete list)
· Termite · Plumbing · Water Quality · Lead
· Radon · Septic Tank · Asbestos · Electricity
The Final Walk
Though Before the closing and property ownership is transferred, you will want to visit your future house. This "walk-through" is an opportunity to ensure that the house has been left in the expected condition. You should make sure that all the items the owner agreed to leave are still there, such as kitchen appliances. This may also include furniture and accessories listed in the final sales contract. If there are problems, discuss them with your agent and attorney. In some cases, you can ask for a discount or credit at the closing to cover missing items or last-minute damages to the property.
The Closing
To be knowledgeable and prepared, ask your agents and attorney to go over the details of the closing with you beforehand. The closing process can vary by area of the country and even within the same state. Generally, the seller is required to provide clean title to the property at closing.
FUNDING
It's also important to review your credit report. This is a record of past and current debt that states when, how and if you paid. Make sure that the information contained in your credit report is accurate. By reviewing your credit report now, you'll have the opportunity to correct an errors. Ask your Agent to help you get a copy of your credit report to review. Don't wait until you've found a home to do this. Do it now. (see funding for more info)
Mortgage Pre-approval
A pre-approval is a simple calculation done by a mortgage lender that tells you (a) the amount you'll be able to finance through a loan and (b) what your monthly payment will be. When you find a home to buy, a pre-approval also reassures the seller that you have the financial means to purchase his or her home.
Once you know the amount the bank will lend you, the next step is to determine how much to save for your down payment. This will help you define the types of homes within your budget. Keep in mind the monthly costs associated with home ownership include not only your mortgage payment, but also real estate taxes, homeowner's insurance and utilities.
Your Down Payment
A down payment is the money you pay up front toward the purchase of your new home. Typically, the larger your down payment, the less you pay each month on the mortgage, and the lower the interest costs will be over the life of the mortgage.
How large should your down payment be? Many people make down payments of 5%, 10% or 20% of the sales prices of the homes they buy.
Your Mortgage
Your options for financing the home you find depend on your personal financial situation and your unique needs. Ask your agent for guidance about contacting mortgage lenders and getting a Mortgage Pre-approval. This will help you gauge how much you can afford to spend on a home and the financing options available to you. Here's an overview of typical financing
Sunday, May 6, 2007
Real Estate Agents vs Snake Oil Salesman
“‘We’re in a real estate recession,’ said David Lereah, chief economist for the National Association of Realtors, who surprised many this week when he announced he would leave the Chicago-based trade group on May 19. ‘I’m projecting the first [nationwide] price drop since the Great Depression,’ he said. ‘We’re going to have negative home prices in 2007.’”
“‘He promotes housing,’ said Washington economist Dean Baker. ‘Certainly, people who were making decisions to move, they either heard David directly or from someone who heard from David that home prices will never fall, don’t worry, the market will stay strong. So they paid too much for a house.’”
“Lereah, in an interview Wednesday, shrugged off the criticism. ‘I feel confident I did a very good job forecasting and reflected what was happening in the marketplace,’ he said.”
It’s hard for me to have a whole lot of contempt for Lereah.
After all, he was just doing his job — which was NOT to give a fair and unbiased assessment of the RE market. His job was to be the mouthpiece for a group of people who sell houses for a living, and to maximize these people’s profits by getting Americans to buy and sell as many houses as possible at the highest possible price.
And you know what? He did a pretty good job.
For someone whose paycheck was signed by a group of house-sellers, what else would you have expected him to do? What would have been a desirable outcome? So he says prices are too high back in 2003, then he gets fired and the NAR puts someone more accommodative in, so now what?
It just goes to show Beware of Snakeoil Salesmans. If it sounds too good to be true, it probably isn't. Do your OWN homework. Crosscheck even your real estate agent as they want to get paid as well, no matter how or who is doing the paying.
Tuesday, May 1, 2007
Don't Want To Use A Real Estate Agent
Tuesday, May 1, 2007
Don't want to pay a real estate agent?
Be prepared to do some work yourself.With all the online real estate information available to home sellers nowadays, it's not surprising that some of them consider selling without the help of a real estate agent.The biggest advantage of the for-sale-by-owner strategy is not having to pay commission to a listing agent. But those taking on the job themselves need to roll up their sleeves and prepare for a little work to get the home sold, understanding that they will be the ones taking care of tasks ranging from marketing to showing the property to interested buyers.Prepare the house.Before doing anything, make sure that the house is in good shape to show, said Piper Nichole, author of The For Sale By Owner Handbook. That means making sure it is clean, decluttered, odor-free, brightly lit and freshly painted. Curb appeal is also important.She also advises thinking about offering buyer incentives such as flexible move-in arrangementsand providing a home warranty.Price it correctly."The biggest mistake for-sale-by-owners make is pricing their home too high," Nichole said in an e-mail interview. If the home subsequently ends up sitting too long on the market and the asking price is lower, a potential buyer might speculate that something is wrong with the property, she said.You can use ByOwnerMLS.com or ElectronicAppraiser.com to get a starting idea of what a house is worth. A look at a listings site, such as Realtor.com, will reveal what sellers are asking for in the neighborhood, he added.If the home is unique and difficult to compare to others, consider having it appraised, Nichole said.
read more here http://blogs.electronicappraiser.com/2007/05/dont-want-to-pay-real-estate-agent.html
Don't want to pay a real estate agent?
Be prepared to do some work yourself.With all the online real estate information available to home sellers nowadays, it's not surprising that some of them consider selling without the help of a real estate agent.The biggest advantage of the for-sale-by-owner strategy is not having to pay commission to a listing agent. But those taking on the job themselves need to roll up their sleeves and prepare for a little work to get the home sold, understanding that they will be the ones taking care of tasks ranging from marketing to showing the property to interested buyers.Prepare the house.Before doing anything, make sure that the house is in good shape to show, said Piper Nichole, author of The For Sale By Owner Handbook. That means making sure it is clean, decluttered, odor-free, brightly lit and freshly painted. Curb appeal is also important.She also advises thinking about offering buyer incentives such as flexible move-in arrangementsand providing a home warranty.Price it correctly."The biggest mistake for-sale-by-owners make is pricing their home too high," Nichole said in an e-mail interview. If the home subsequently ends up sitting too long on the market and the asking price is lower, a potential buyer might speculate that something is wrong with the property, she said.You can use ByOwnerMLS.com or ElectronicAppraiser.com to get a starting idea of what a house is worth. A look at a listings site, such as Realtor.com, will reveal what sellers are asking for in the neighborhood, he added.If the home is unique and difficult to compare to others, consider having it appraised, Nichole said.
read more here http://blogs.electronicappraiser.com/2007/05/dont-want-to-pay-real-estate-agent.html
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