In order for a home sale to be successful, serious attention needs to be given to the negotiation process. The difference between the right way and wrong way can end up being several thousand dollars. Wouldn't you rather that money be in your pocket? Negotiation is critical to the sale of a home, so we recommend you follow the tips below to make sure you get the best possible deal for yourself.
Get Something for Something
Quid pro quo; the essential ingredient to any successful negotiation. The bottom line is that you want negotiation terms where both sides feel like they are getting something they want. You never want to approach a negotiation with the intention of getting over on someone, because one-sided deals never fare well in the end. Even if it is not outwardly expressed, any concern by the other party about being taken advantage of will result in no sale. This ends up being a waste of both your time and money.
Terms Are As Important As Price
It is wise to discuss terms with the other party. A common mistake is to focus on price only by failing to understand that pricing is just a small part of the process. The terms of the deal are just as important to any prospective buyer. You need to find out if they need a quick sale or perhaps if they need more time than usual to close. They may have specific requests such as washer/dryer or hot tub which they insist you install before finalizing. By refusing a small request and losing a big sale, you only end up hurting yourself, so take time to discuss the terms with the buyer making sure to find out what matters to them besides price.
Help With Closing Costs
The National Association of Realtors reports that median home sales for the country were $212,000. FHA loans require 3.5% down payment and conventional loans look for 5%. When you consider that buyers are putting anywhere between $6,000 to $10,000 out in the beginning, chances are they will need help with closing costs. A smart seller will advertise that they are willing to help with closing fees which adds to the appeal to their house instantly. The quid pro quo effect comes into play again, as you can request full list price in return for paying these fees. Everybody wins.
Always Leave Wiggle Room
The time we spend in a house is always something to cherish. It is natural to develop fond memories of the time there. These memories mean nothing to buyers, so just because the house has more sentimental value to you, this does not mean there is also increased monetary value. Many sellers lose out by ignoring the market and stubbornly clinging to unrealistic prices. You need to remember that the longer your house stays on the market, the more people think something is wrong with it. Most buyers will initially throw out a low number to see what they can get away with. Don't reject every offer right away, leave room for negotiation. Chances are they know they can go up in price and they will.
Go The Extra Mile
If it seems like negotiations have halted and nobody is budging, offer something extra that really does not matter to you. The washer/dryer set you originally did not want to include may have value to the buyers, especially if they have little money after closing. You can bump up the price a little by including it in the sale. You can also add a Home Warranty, which means electrical, pluming, heating and air repairs will not be an issue and gives buyers peace of mind.
The main factor to remember in negotiations is flexibility; when it comes to pricing there is plenty of room to move so that both sides can get what they want. The more you think outside the box and stay open to discussion, the smoother and more pleasant the process will be. In the end everyone has fewer headaches and a deal they can live with.
Many parents across the country take the school district into consideration while looking for a new place to live. In many instances, parents prefer keeping their children in a good school district instead of moving the family to another area. It’s also important to point out that some parents want to relocate to a district filled with special programs, a sound curriculum, and sports.
It’s no secret that home buyers have no problem with paying a premium price for a home in an exceptional school district. Before setting the price on your home, you should consider the five tips listed below. They can help you get fair offers from serious buyers. Please keep in mind that you can always sell your home to a professional home buying company for a fast sale.
1. Take a Close Look at the Stats
One is every five prospective buyers would be willing to pay as much as ten percent more for a home in a good district, and one in every ten would pay twenty percent more, according to a survey conducted by realtor.com. However, many of these buyers would not be interested in paying for a home with an inflated selling price simply because it is in a specific district. Increasing your selling price too high will make it difficult for you to find a buyer. If you price your home too high, you will eventually be forced to lower your price.
2. Be Familiar with the Area
Check out similar homes in your area on the market. What are they selling for? This will give you a clue on how much you can expect to get for your home.
You can use free online tools to help you come up with a fair selling price, or you can ask an experienced realtor to run an analysis. Both will help you avoid overpricing your home. Please keep in mind that you can always contact a professional home buying company. They will be more than happy to offer you a fair price for your home and a fast closing.
3. Consider the Type of School
It’s vital for you to understand the types of schools in your district. Are several schooling options on the table? Some families will be more interested in buying a home in a district that has public schools, private schools, and charter schools. There are six different types of schools on its site:
-Public Schools: Public schools are convenient and they bring forth a strong sense of community.
-Public Magnet Schools: Public magnet schools are designed to teach kids specific skills such as performing arts and science. Under normal circumstances, students are not required to live in the district to be a student at public magnet schools.
-Charter Schools: Charter schools receive funding from the public. Since they function outside of the public education school system, they are open to any district.
-Private Secular Schools: Private Secular Schools charge tuition for enrollment, and they can accept students that meet their criteria.
-Private Religious Schools: Private religious schools charge tuition for enrollment, and they accept students from all districts.
-Online Schools: They can be private or public. District is not an issue for online schools.
It’s important for you to take public school enrollment into consideration before settling on a price.
4. Measure the Distance from School
It’s an added bonus when a kid can walk home from school in a well-respected district. How many children walk home from school? Do they walk alone or with others? The answers to these questions will let you determine if prospective buyers will be comfortable living in your area.
5. Keep the Prospective Buyer’s Priorities in Mind
The majority of parents shopping for a home will always make a decision that will be in the best interest of their child. You can set your price a little higher if you live in a desirable district.
It’s vital that you set a good price for your home before putting it on the market. The tips listed above can help you do this with ease. You should also consider selling your home to a professional home buying company. A professional home buying company offers cash and can close fast. This is an incredible deal that is hard for anyone to turn down!
Buying or selling a home can be tricky business because you have to coordinate between when you need to move and the condition of the housing market. While there is no perfect time to buy or sell, there seems to be a peak season where great opportunities arise more often; springtime.
In general, the real estate market peaks around mid-April and slows down by early December. This means April typically has a large number of houses available which is great for buyers and sellers. The problem however is that there is also increased competition. The earlier you start looking the better, specifically if you are interested in a certain neighborhood or want particular features. The spring season will most likely be your best bet for finding the house you want. Then all you have to do is identify your price range and organize a moving timeline.
It is always a good idea to start researching loan options early on too. You need to know where you stand before entering the market especially when competition is high. Most sellers prefer to work with a person who already has approval over the person with a higher offer, simply because of the convenience factor.
The more prepared you are, the easier the process is and the better you fare with sellers. Be warned however, that asking prices during peak seasons are pretty firm. Sellers will receive a number of offers, so are more likely to reject low-ball offers and those that come with contingencies or special requests.
If your timeline does not fit with moving in the spring, there is no need to get disheartened. A number of great houses can be found in winter months for a great deal. If you live in an area that gets a great deal of snow, be careful when inspecting the house. Snow can be a great cover for potential foundation and general property problems. It will not be so easy to identify the condition of roofing and air conditioning systems nor will landscaping be open for inspection.
Once you have the financial aspect covered and you have done your research and found the perfect home, the next step is to make sure you get it. Know what your absolute maximum budget is and know what you bring to the table. What skills do you have that may be helpful? Are you a good writer? Do you have any adorable pictures of kids to share with the owners or a connection to the house? Developing a rapport with the owners will go a long way in your favor.
Make sure you know the timeline you need to stick to for moving as well as how long you are willing to fight for the house you want. If possible have backup options that you also like in case something goes wrong. Consider the possible choices you are interested in and get pre-qualified for loans to cover them so no additional time is wasted should you have to pick a different house.
Get to know the neighborhood and the market. Understanding the prices for houses in the area helps when it comes to making an offer and negotiating. Additionally, if the prices for the neighborhood are out of your budget, you do not waste time and are able to focus your efforts in a more suitable location.
When it comes time to make that offer remember to always submit the highest and best offer first. Do not ask the seller for concessions. On occasion it is acceptable to ask for the payment of closing fees but be prepared to cover these if you really want the house. It is not worth losing the house over the matter of closing fees. Make sure the seller knows that you are flexible. If they happen to be strapped for cash and looking for a quick sell, flexibility will favor your chances of getting a good deal.
For sellers, spring is the best time to get your house on the market. Before you list, you need to determine the length of time you will allow it to be on the market and the absolute lowest offer you will accept. It also helps to make a list ahead of time of the items you are prepared to pay for or will fix for when it comes time to negotiate price and concessions.
When it comes time to sell your home, you have to put in a lot of thought, time and trust for the process. The process can be tedious and daunting, so you want to make sure you are comfortable as you get started. You have heard the phrase, “When you want something done right, do it yourself”. In the case of realty, this is often the best choice. Whether it was a bad experience, a disagreement over pricing, or a desire to save money there may be a time when you realize you need to end things with your realtor.
The first thing you need to understand before venturing into the realty world alone is that you need to be prepared. You need to research every aspect, arming your self with the knowledge that an agent normally would provide for you. You need to understand each facet of the home selling game. Why are you selling? How much work do you need to do to the house? What is your goal? Do you want to make a profit or are you just looking to relocate? These are all simple questions you need to have the answers to.
Analyze your financial situation and use this to develop a pricing strategy. You need to remember that real estate agents work with the numbers for a living, so you need to familiarize yourself with pricing in terms of what you can handle. In general there are a few steps to follow when it comes to selling your home on your own. As long as you have done the research and follow the guide, you will successfully be able to manage the sale of your own home. The key is to remain professional and to preserve the connection, because at the very core, this is a business relationship.
How To Handle the Situation
Look at the Contract: Before you can call it quits with your real estate agent, you need to look over any contracts. If you did sign any paperwork with them, it likely spells out the length of time you are obliged to work with them. If there are conditions to your business relationship, you may need to consult with a legal professional about your options. Be sure to read the fine print carefully, because these contracts are legally binding and can be hard to break.
Talk it Over: Remember that your realtor is a professional who most likely prides themselves on doing a good job. If they are not meeting your expectations, a good first step is to sit down and talk it over with them. If you clearly define your expectations, it gives them a chance to make changes or they will choose to step aside. As long as you remain professional and respectful in your approach, there will be no hard feelings. Even with a contract in place, by having a discussion, you allow the realtor to address their actions. Chances are if they know you are unhappy, they would rather let you go on alone anyway.
Get it in Writing: Once you have discussed the situation with your agent, be sure to summarize the whole thing in writing. You want to get this done so as to prevent any misinterpretations or confusion. You do not need a notarized legal document; a simple email re-cap will provide the same sentiment and closure.
It's the Thought that Counts: Since there are no hard feelings, consider referring the agent to some friends or neighbors who are looking to work with an agent. This along with a small gift of appreciation, like a gift card, goes a long way in healing the rift over the breakup. A small note to say thank you can have a big impact. It is important to let them know that you still appreciate their efforts and is nothing personal. Some business relationships are just not productive.
People talk. What you have to consider is how much if what they are saying is accurate. In truth, information gets changed each time it is passed from one person to another. Benjamin Franklin actually had the right idea. He advised that we should “believe none of what we hear, and half of of what we see”. At least we can rely on our eyes a little. As for what we hear, how much is truth and how much is myth. When you are looking to sell your home, you definitely want to be able to tell the difference.
When you sell your House, you will hear the experiences of everyone else, and in their minds this is the truth. For the most part, we like to believe what we hear, especially when it comes from a source who has been in similar situations. The information we get is essentially the truth; until we hear something different. With all the stories that will be thrown at you as you prepare to sell your home, you need to take your time to assess what information is missing. This way you are better equipped to move ahead with the home selling process.
To help you out, the top three home selling myths are discussed. While there are certainly more out there, these common tales seem to be the most believable and cause the most concern. Once you know what to look out for, there are less challenges ahead of you and you can get your home sold with ease. When it comes time to sell, remember these myths and proceed accordingly.
Myth #1: You Must Have a Real Estate Agent
The first thing you should ask yourself is where is that written. Is there a law that says you need a realtor to sell your home. The answer is no. When you sell your house without an agent, you end up with more money in your pocket. Knowing that, it's a wonder that people even insist on needing agents in the first place. Without an agent, you are free to make decisions on your own and you keep control of the process. There are resources available to help those who wish to go it alone and most provide step-by-step instructions. You can manage your own sale without paying commission and without having to get clearance on your decisions.
Myth #2: Higher is Better
People will tell you that going with a higher price is going to be better. When it comes to housing, you want to be cautious what you wish for. If you set your prices too high, you may not get as far as you hoped. Potential buyers often avoid higher prices so you may not get the attention your house deserves. Once you set a high price and then lower it, people assume something is wrong with the house. Again, people turn away. Negotiation is important when it comes to house sales, so do your research. Your pricing strategy can make or break the sale. You want to be high enough to allow some negotiation but not too high to scare people away.
Myth #3: Sell It As Is
Your house is full of memories for you and chances are those memories left an impression physically as well as emotionally. To you the house has character, but to a potential buyer, there are cracks, holes and a need for repairs. This does not mean you have to revamp the whole house. It is however, wise to - a few things before you put it on the market. Touch up with some paint, get new fixtures and lighting, repair cracks and holes, clean or replace carpet. Even the smallest cosmetic touch-ups can make a big difference to the overall appearance. Whatever fixes you do will go a long way in terms of the overall investment, especially when you get a good offer.
Home staging is so much more than decorating. It is a critical component to ensuring that your home gets sold. When you invest in home staging, your house becomes more appealing to buyers and you are more likely to get the price you seek. With this outcome it is surprising to learn that may sellers do not choose home staging. The reason behind this is myths and misconceptions.
It is not uncommon for sellers to set the price of their home according to others in the area. However, when they fail to consider landscaping, painting and other staging effects they are not going to get what they seek. Houses with stubborn owners who will not make minor improvements sit on the market for months at a time. This is not a good look to house hunters. To successfully sell your home and get a price you want, you need to invest in home staging. Overcoming the common myths below will up your houses appeal factor and get you the sale.
Myth #1: My home will sell on its own
To sell your home you need to have the right price but you also need to market the place and prepare it for purchase. Buyers are not typically fond of the “as-is” condition. Sellers would be wise to get out of their own way and focus on the buyer. Once you are able to detach yourself from the house you can see things more clearly and objectively. This allows you to prepare it for maximum buyer appeal. The more attention the house gets the more offers you get.
Myth #2: Staging is expensive
This is a common misconception that is not always true. You will have to spend some money to get the house fixed up but it doesn’t have to break your bank. If you remember that home staging adds value to your home, then the added expenses are worth it. Sellers often think painting, changing carpet and re-doing bathrooms is too costly but buyers will appreciate that there is less work to do after move in. If a buyer is faced with making the fixes themselves, they are either going to give a low-ball offer if one at all. Not staging the home could lose you the sale.
Myth #3: Staging only works on vacant spaces
This myth is common among both sellers and real estate agents and it could not be further from the truth. While a vacant property can be livened up with home staging a house that is still occupied benefits too. It forces the occupants to clean up their stuff, organize and start consolidating. The Real Estate Staging Association reports that only 10% of buyers see the potential of a home. This makes it important for sellers to show them exactly what they can get out of a house and staging is a great way to demonstrate how they can enjoy that property.
With home staging you can attract the right buyers and you stay at the forefront of their minds after they have visited. Since it is most likely that the sellers are also looking for a new house, they need to view their current home in the same way; as a buyer would. They need to consider what each room tells them and determine if the house is outdated or cluttered or too dark. Consider if the house is boring as well as what the most appealing features are so they can be accented.
Myth #4: Staging is just cleaning
While cleaning and organizing are factors of home staging, there is much more involved. You want to consider what will create a lasting impression on the buyer so it is worth learning their demographics, hobbies, lifestyles and spending habits. Additionally, you want to take care of any repairs, update the décor and make the most of the space by rearranging furniture.
Myth #5: Staging is the same as decorating
Decorating a home involves displays of the homeowner’s personality and preferences. Home staging on the other hand is a presentation of the home as a showcase for sale. It involves real estate knowledge as well as creative designing so as to match the neighborhood style. Additionally, staging requires the ability to carry out any necessary repairs. You essentially want your home to look like the model homes you see at new developments, perfect for each buyer to imagine their life in.
Hello! And welcome to my blog! Real estate has been family business for me as long as I can remember. As my children grow older I want them to learn about what it takes to build financial security. I started this blog as a way for me to gather my thoughts and brainstorm how I would like to teach them. Hopefully you'll find this material valuable.
I like to think of real estate as a game. When I'm out driving for dollars it's like I'm collecting clues into peoples lives and motivations. I want to find people who want to sell their home fast and I want to be the first person they talk to. There are tons of We Buy Houses companies out there, but I want them to think of me first. It takes a lot of motivation, work, and effort to get where I want to be but I not it's worth the sacrifice. I love real estate and can't see myself doing anything else with my life.