Welcome to Coldwell Banker Real Estate Group's
"Buyer/Seller Tips"
cccc
Coldwell Banker Real Estate Group of Paragould, Arkansas, understands that buying or selling a
home is a major event. Here are several helpful tips that can assist a buyer in
his or her selection of the right realtor and the right home. Sellers will also
find advice here to help make a home more attractive and available to buyers.
Simply click on the link below to read more. If you have any questions or need
assistance with any real estate need, please contact us by phone or by email.
Don't Get "Pre-Qualified!"
Do you want to get the best house you can for the least amount of money?
Then make sure you are in the strongest negotiating position possible. Price is
only one bargaining chip in the negotiations, and not necessarily the most
important one. Often other terms, such as the strength of the buyer or the
length of escrow, are critical to a seller. In years past, I always recommended
that buyers get "pre-qualified" by a lender. This means that you spend a few
minutes on the phone with a lender who asks you a few questions. Based on the
answers, the lender pronounces you "pre-qualified" and issues a certificate
that you can show to a seller. Sellers are aware that such certificates are
WORTHLESS, and here's why! None of the information has been verified!
Oftentimes-unknown problems surface! Some of the problems I've seen include
recorded judgments, child support payments due, glitches on the credit report
due to any number of reasons, down payments that have not been in the clients'
bank account long enough, etc. So the way to make a strong offer today is to
get "pre-approved". This happens AFTER all information has been checked
and verified. You are actually APPROVED for the loan and the only loose
end is the appraisal on the property. This process takes anywhere from a few
days to a few weeks depending on your situation. It's VERY POWERFUL and
a weapon I recommend all my clients have in their negotiating arsenal.
Sell First, Then
Buy
If you have a house to sell, sell it before selecting a house to buy! I
haven't seen a contingent sale work in the last 3 years, unless it's with a new
home builder who has other houses to sell and can afford to put one on a
contingency. Let's pretend that we go out looking for the perfect house for
you. We find it and you love it! Now you have to go make an offer to the
seller. You want the seller to reduce the price and wait until you sell your
house. The seller figures that's a risky deal, since he might pass up a buyer
who DOESN'T have to sell a house while he's waiting for you. So he says
OK, he'll do the contingency but it has to be a full price offer! So you see,
you paid more for the house than you could have because of the contingency. Now
you have to sell your existing house, and in a hurry! Otherwise you lose the
dream house! So to sell quickly you might take an offer that's lower than if
you had more time. The bottom line is that buying before selling might cost you
TENS OF THOUSANDS of dollars. I always recommend that you sell first,
then buy. If you're concerned that there is not a house on the market for you,
then go on a window-shopping trip. You can identify possible houses and
locations without falling in love with a specific house. If you feel confident
after that then put your house on the market. Another tactic is to make the
sale "subject to seller finding suitable housing". Adding this phrase to the
listing means that WHEN YOU DO FIND A BUYER, you will have some time to
find the new place. If you don't find anything to your liking, you don't have
to sell your present home.
Play the Game of
Nines Before house hunting, make a list of nine things you want in the new
place. Then make a list of the nine things you don't want. I call this "NINE
OF THIS AND NONE OF THAT". You can use this list as a scorecard to rate
each property that you see. The one with the biggest score wins! This helps
avoid confusion and keeps things in perspective when you're comparing dozens of
homes. When house hunting, keep in mind the difference between "SKIN AND
BONES". The BONES are things that cannot be changed such as the
location, view, size of lot, noise in the area, school district, and floor
plan. The SKIN represents easily changed surface finishes like carpet,
wallpaper, color, and window coverings. Buy the house with good BONES,
because the SKIN can always be changed to match your tastes. I always
recommend that you imagine each house as if it were vacant. Consider each house
on its underlying merits, not the seller's decorating skills.
Don't Be Pushed Into
Any House
Your agent should show you everything available that meets your
requirements. Don't make a decision on a house until you feel that you've seen
enough to pick the best one. Go to the Multiple Listing computer with your
agent to make sure that you are getting a COMPLETE list. In the late
1980's, homes were selling quickly, usually a few days after listing. In that
kind of market, agents advised their clients to make an offer ON THE
SPOT if they liked the house. That was good advice at the time. Today there
isn't always this urgency, unless a home is drastically under priced, and
you'll know if it is. Don't forget to check into the SCHOOL DISTRICTS of
the area you're considering. Information is available on every school; such as
class sizes, percentage of students that go on to college, SAT scores, etc. You
can get this information from your agent or directly from the school.
Stop Calling
Ads!
A word of caution - agents create ads solely to make the phone ring! Many
of the homes have some drawback that's not mentioned in the ad, such as traffic
noise, power lines, or litigation in the community. What's not mentioned in the
ad is usually more important than what is. For this reason, I want you to be
very careful when reading ads. Remember that the person writing the ad is
representing the seller and not you! The most important thing you can do is
have someone on your side looking out for your best interests. Your own agent
will critique the property with an eye towards how well it meets your needs and
will point out any drawbacks you should know about. So whether you decide to
work with me or not, pick an agent you feel comfortable with and enlist the
services of that agent as a buyer's broker. Then you become a client with all
the rights, benefits and privileges created by this agency relationship, and
you're no longer just a shopper. Did you know that many homes are sold
WITHOUT A SIGN ever going up or an AD EVER BEING PUT IN THE PAPER?
These "great deals" go to those people who are committed to working with one
agent. When an agent hears of a great buy, who do you think he's going to call?
His client, who he has a legal obligation to work hard for someone who just
called on the phone and said "Keep your eyes open"? So to get the best buy on a
property, I always recommend that you hire your own agent and stick with
him.
Using a real estate
agent instead of a realtor.
When you're looking for help buying or selling property, it's important
to remember that the terms "real estate agent" and "Realtor" are not
synonymous. Realtors can provide an extra level of service, and to be a Realtor
you must be a member of the National Association of Realtors (NAR). The
equivalent organization in Canada is the Canadian Real Estate Association
(CREA). Both are non-profit trade organizations that promote real estate
information, education and professional standards. The National Association of
Realtors also has earned a strong reputation for actively championing private
property rights and working to make home ownership affordable and accessible.
The NAR and CREA members adhere to a strict code of ethics founded on the
principle of providing fair and honest service to all consumers. Realtor
business practices are monitored at local board levels. Arbitration and
disciplinary systems are in place to address complaints from the public or
board members. This local oversight keeps Realtors directly accountable to the
individual consumers they serve and therefore the consumer is more likely to
find better service and accountability by using a Realtor.
Complacent marketing
when selling a home.
When selling your home there are no guarantees that the ultimate buyer of
your home will have simply walked through the front door. In many cases you may
have to bring your home to the buyer. Effective marketing will help ensure that
your property receives maximum exposure to attract a ready, willing and able
buyer in the shortest period of time. Ask your Realtor to list for you all of
the ways he/she intends to market your home and on what time-line. Also, be
sure to ask about the home being advertised on the Internet.
Taking for granted
the "curb appeal" of your home.
When you're preparing your house for sale, remember the importance of
first impressions. A buyer's first impression can make or break whether they
even want to go inside for a look. It is estimated that more than half of all
houses are sold before the buyers even get out of their cars. With that in
mind, be sure to stand outside of your home and take a realistic "fresh look"
and then ask yourself what can be done to make the "curb appeal" improve. Also
ask your Realtor's opinion as to how to improve the "curb appeal". It could
make a huge difference in your final sales price.
Forgetting about
health and safety issues.
Be upfront and disclose to your Realtor any problems with the property.
The problems are going to be discovered anyway. A decade ago, health and safety
issues were rarely a part of the typical real estate transaction. Today,
however, it's common for inspections relating to health, safety and even
environmental concerns to be a part of most sales contracts. Moreover, in many
states, the seller must disclose to the buyer any knowledge of existing
property problems. In many cases, these issues have been or can be factored
into the home's listing price.
Forgetting what you
would want to see if you were the buyer of your home.
Remember that although people can be different in personality, they tend
to be the same when it comes to expectations at someone else's expense. In
other words, a prospective buyer would probably like to see a perfect home from
top to bottom, inside and out, when it comes to your home. Try to do as many of
the following items as possible to improve the likelihood of your home selling
in an expedient way.
On the
outside
Sweep front
walkway.
Remove
newspapers, bikes and toys.
Park extra
cars away from the property.
Trim back the
shrubs.
Apply fresh,
clean paint throughout.
Clean windows
and window coverings throughout.
Keep plumbing
and all appliances in working order.
Maintain all
sealant (window, tub, shower, sink, etc.) in good condition.
Make sure
roof and gutters are clean and in good condition.
Mow the lawn
frequently and plant flowers.
Keep pet
areas clean.
On the
inside
The kitchen
and bathroom should shine.
Quick
once-over with the vacuum; carpets should be clean.
Place fresh
flowers in the main rooms.
Put dishes
away, unless setting a formal display for decoration.
Make all beds
and put all clothes away.
Open drapes
and turn on lights for a brighter feel.
Straighten
closets.
Put toys
away.
Turn off
television.
Play soft
music on the radio/stereo.
Keep pets out
of the way and pet areas clean and odor-free.
Secure
jewelry, cash, prescription medication and other valuables.
Enhance the
spaciousness of each room.
Thinking you need to
be in the home to explain things to a prospective buyer.
You will be better served if you allow your Realtor to do their job
without you there. Most potential buyers usually feel more comfortable if they
can speak freely to the real estate professional without the owners being
present. If people unaccompanied by an agent request to see your property, you
should refer them to your real estate professional for an appointment.
Not knowing how to
price your home to sell.
Perhaps the most challenging aspect of selling a home is listing it at
the correct price. It's one of several areas where the assistance of a skilled
real estate agent can more than pay for itself. Listing the home too high can
be as bad as too low. If the listing price is too high, you'll miss out on a
percentage of buyers looking in the price range where your home should be. This
is the flaw in thinking that you'll always have the opportunity to accept a
lower offer. Chances are the offers won't even come in, because the buyers who
would be most interested in your home have been scared off by the price and
aren't even taking the time to look. By the time the price is corrected, you've
already lost exposure to a large group of potential buyers. The listing price
becomes even trickier to set when prices are quickly rising or falling. It's
critical to be aware of where and how fast the market is moving - both when
setting the price and when negotiating an offer. Again, an experienced,
well-trained agent is always in touch with market trends - often even to a
greater extent than appraisers, who typically focus on what a property is worth
if sold as-is, right now.
Not planning your
move earlier enough.
Many sellers simply don't plan their move early enough and then feel
totally overwhelmed at the time of moving out of the house. If you are able to
move at any time of the year, don't wait until summer, the peak-moving season.
Consider also that the first and last few days of the month are extra busy. If
you plan to sell your house, get it on the market as soon as possible. Keep a
record of all expenses related to the move, some of which may be tax
deductible. Fill out the Personal Household Inventory for each room. This is
important for establishing the amount of declared valuation for the shipment
and as a permanent inventory for insurance purposes. List, as nearly as
possible, the year of purchase and original cost of each item. Attach any
invoices or records of purchase to the completed inventory. Prepare a separate
high-value inventory if the shipment will contain articles of "extraordinary"
value. The following list includes items that might fall into this
category:
Antiques
Art
Collections
Cameras
China
Collections
Computer
Equipment
Crystal
Figurines
Firearms
Jewelry
Manuscripts
Oriental
Rugs
Silver
Stones or
Gems
Tapestries
TVs or
Stereos
Also, unless you have
been given a binding moving estimate where a firm cost is established in
advance, the exact cost of a move cannot be determined until after the shipment
has been loaded on the van and weighed. The weight on which charges are based
is calculated by weighing the van before and after loading. The total cost of
the move will include transportation charges, any charges for declared
valuation, plus charges for any extra services performed at your request. All
of these charges are based on tariff rate schedules.
Using a "convenient"
realtor rather than using an experienced realtor.
When working with a realtor, it's critical that you have full confidence
in that realtor's experience and education. A skilled, knowledgeable realtor
should be able to explain to you exactly why your home needs to be priced at a
certain level - compared to recent listings and sales of homes similar to
yours. Experienced realtors also know exactly what the current pool of buyers
are looking for in relation to particular styles and price ranges of
properties. A skilled realtor can recommend changes that will enhance the
salability of your home, thus increasing the price - and/or decreasing the
length of time before a sale.
The best chance for
selling your property is within the first seven weeks. Studies show that the
longer a property stays on the market, the less the seller will net. Below are
five main factors to accomplishing this goal.
Pricing
Factor
It is very important to price your property at a competitive market value
right when you list it. The market is so competitive that even over-pricing by
a few thousand dollars could mean that your house will not sell. It's
interesting, but your first offer is usually your best offer. Here are reasons
for pricing your property at the market value right from the start in order to
net you the most amount of money in the shortest amount of time.
An
overpriced home:
Minimizes
offers
Lowers
showings
Lowers agent
response
Limits
financing
Limits
qualified buyers
Nets less for
the seller
80% of the
marketing is done when we decide on what price to list your home. If you are
unwilling to list at current market value, you would be better off not putting
it on the market at this time.
Clean Factor
Most people are turned off by even the smallest amount of uncleanness or
odor when buying a home. Sellers lose thousands of dollars because they do not
adequately clean. If your house is squeaky clean, you will be able to sell your
home faster and net hundreds, if not thousands of dollars more. If you are
planning on moving, why not get rid of that old junk now so that your house
will appear larger? Make more space. Odors must be eliminated especially if you
have dogs, cats or young children in diapers or if you are a smoker. You may
not notice the smell, but the buyers do! Most agents have a difficult time
communicating to their sellers about odor. If you employ an agent to get the
most amount of money for you, please don't take offense if he must confront you
about odor problems.
Access Factor
Top selling agents will not show your home if both the key and access are
not readily available. They do not have time to run around town all day picking
up and dropping off keys. They want to sell homes! The greatest way to show a
house is to have a key! When your home is being shown, please do the
following:
Keep all
lights on
Keep all
drapes and shutters open
Keep all
doors unlocked
Leave soft
music playing
Take a short
walk with your children and pets
Let the buyer
be at ease and let the agents do their job
Paint &
Carpet Factor
Paint is your best
improvement investment for getting a greater return on your money. Paint makes
the whole house smell clean and neat. If your house has chipped paint, exposed
wood or the paint looks faded, it is time to paint. If your carpet is worn,
dirty, outdated or an unusual color, you may need to seriously consider
replacing it. Many houses do not sell because of this problem. Don't think that
buyers have more money than you have to replace carpet. They don't. They simply
buy elsewhere.
Front Yard
Fact
Your front yard immediately reflects the inside condition of your house
to the buyer. People enjoy their yards. Make certain that the trees are trimmed
so the house can be seen from the street. Have the grass mowed, trimmed and
edged. Walkways should be swept. Clean away debris. Remove parked cars. This
all adds to curb appeal. If a buyer doesn't like the outside, they may not stop
to see the inside.
DEATH, DIVORCE &
MOVING are the three most stressful experiences in life. There are two very
different kinds of needs that people have while moving. First there are the
transactional needs, like finding the home that is just right for you, finding
a seller who is realistic, negotiating the price, filling out the paperwork,
handling the escrow and arranging for the move. But there are also emotional
needs that are involved when moving, and this is where the biggest stress comes
in. Any competent agent will handle the transactional needs for you, but if
your emotional needs are unfulfilled, you'll be frustrated and may not act in
your own best interests. The ideal real estate agent is one who is competent
with paperwork and numbers, but can also guide, direct and counsel you through
the emotional ups and downs of moving. Here are the six best ways we've found
to beat the stress.
Begin with the end
in mind.
Have an ultimate scenario of where you're trying to be. What will life be
like when you get there? How will it be better than where you are now? Dwell on
that picture and write it out, fill up at least a page about how it feels in
the new place. This is imperative. Having the goal in front of you at all times
energizes you to achieve it, in spite of setbacks and frustrations. Emotions
will run high and you need an anchor. In childbirth, the Lamaze method teaches
you to focus on one spot when enduring labor pains. In the Bible it says that
Jesus willingly went to the cross by focusing on the joy He would have when it
was over. In the same way, you too must focus on that future goal when anxiety
threatens to get the better of you.
Be flexible.
In your monetary calculations, overestimate by a thousand dollars. In
this market, anything can happen between contract acceptance and closing. It
could be the inspections reveal areas of concern that the seller is unwilling
to fix or the repair costs are higher than the amount limited in the contract.
Or the interest rate changes which affects the necessary down payment and
closing costs you will need to come up with. As your real estate team, we will
strive to tie up loose ends as quickly as possible, but remember there is no
perfect world. Most buyers feel a bit overwhelmed when taking on a new mortgage
and the responsibilities of a new home and we've seen many buyers get angry
when it seems like the cost just keeps going up. Anger is caused when reality
doesn't match up with the expectations you had in your mind. So if you
anticipate this happening in advance, you won't get angry. In fact, it'll
probably go better than you expected.
Trust in the
process.
There's just so much to do, it's easy to panic. You wonder if it will
ever work out. In fact, when I bought my house, I couldn't eat for a day, we
felt sick to my stomach! You think you're taking a big chance, but the truth is
you're giving yourself a big chance. Even though you can't see every step of
the way, as you move towards your goals, the way opens up. We know that you
haven't moved in a long time and it's a major upheaval in your life. But we've
been there many times before, and we'll be looking out for you. Trust that we
know the way to get you there.
Get
knowledge.
One thing you'll probably feel during this transition time is being out
of control. It feels like everyone else has taken over your life. The seller,
your lender, the appraiser, the inspectors, they all have the power to say yes
or no to your moving plans. We'll try our best to let you know ahead of time
what your expenses will be, and what the unknowns are. We'll tie down the loose
ends as soon as possible. We'll try to get your loan approved within a
reasonable time frame. We'll educate you as best we can and let you in "behind
the scenes" so you won't ever feel stupid or out of control.
What is your
option?
When things don't go as smoothly as you had hoped, don't let emotions
take over. Always ask yourself, "What is my option?" because there are always
options. Let's pretend the lender takes longer than agreed upon to get your
loan. He keeps asking you for more and more documentation until it feels like
he also needs to know how many gold fillings you have in your mouth! You'll
feel upset because you wanted to feel certain about the move and now you still
have to live with the uncertainty. You want to say, "Forget it, I'm fed up with
this!" But what is your option? Find a new lender and start the process over
again? That may take weeks, plus you will have to provide all the paperwork
over again. If the lender is trying his best, it may be better to give him a
few more days. Each case is unique, but when setbacks occur we've found that
asking yourself this question helps to defuse the situation and restore clear
headed thinking.
Seek
entertainment.
When there's nothing you can do about the situation, take your mind off
of it altogether. Maybe you expected loan approval on Friday, but now it won't
come until Monday. You hate being in limbo and feeling powerless. So do
something else entirely, maybe something where you aren't powerless. Take a
hike, play tennis, get out of town for the day. Watch a movie, pray or pour
yourself into your work. Whatever diversion works best for you, now would be a
good time to engage in it. Just forget the situation and refuse to listen to
those irritating thoughts when they come into your head. Think about something
else instead and just take it one day at a time. To keep stress to a minimum,
here's how I'll serve you when you work with me in buying your new home: Give
my best-reasoned expert counsel and advice with your best interests in mind.
Clarify your goals and motivation, and decide if moving is the wisest choice at
this time. Provide recommendations and information to help your kids through
all the changes. Negotiate effectively for you to get the lowest possible price
for your new home. Treat your money like it was my own, shaving every expense
possible. Protect your interests during escrow, keeping a detailed record of
the transaction. Be your levelheaded sounding board or relief valve when the
stress is overwhelming. Counsel you through the feelings of "buyer's remorse".
Alert you ahead of time to every possibility so you feel more in control.
Contact you daily during the last 10 days of the transaction to serve your
needs. Provide guidance and help with movers, change of address, utilities shut
off, cleaning, etc. Deliver your closing paperwork. Continue to give you
information of value after the transaction... for life.
You've probably
seen lots of financial arguments about why you should own your own home rather
than rent. This includes budgeting (no rent increases) and the tax savings
you'll most likely have. Now I'm going to give you some reasons you probably
haven't heard.
Freedom to pursue
other goals in life once the major goal of home ownership is achieved.
Strange as it sounds, many of my first-time buyers have told me that
once they bought the house, other things in their life started to fall into
place. It's as if not owning took so much of their mental energy that other
goals were not worked on until that big goal was reached. So buy a home and get
on with your life!
A greater sense of
belonging to the community.
Once you own a home, you feel more attached to the city in which you
live. You're more interested in what happens in town, to the roads, schools and
shopping areas. Some people even become involved in local politics, which you
seldom see a renter do.
A commitment to
something, a sense of stability.
Home ownership is an anchor, something that cannot be pulled out from
under you. You'll never get a notice that you have to move. You're kids will
never have to change schools. It gives you freedom to plan years ahead.
You can change
things, a feeling of being in control.
It's your home. You can add to it, remodel it, change the landscaping, do
whatever projects you want. You have a feeling of being in control of something
in your life. At work we don't always have control of what happens, but your
home is your castle that you have dominion over. You can see what you're
building take shape before your eyes.
More control over
the children than in an apartment complex.
In a neighborhood, kids usually play in the yards or go to friend's
houses a few doors away. My clients have told me that in an apartment complex
they never knew where the kids were. They could be in any of hundreds of
apartments, doing who knows what. In a home you get to know the neighbors and
watch out for each other's kids.
Children do better
in school and feel more secure.
This one surprised me, but buyers have reported to me that their kids
calmed down in school after they bought a house. I don't know why, but it seems
to work that way. I remember a single mom watching her son play in the yard,
making steps in the slope and building things. She didn't have to tell him to
leave everything alone, like she did at the apartment complex. I guess kids
feel the same need for control we adults do.
Time and money saved
by not going to the laundromat.
A small point, but if you have kids, you know the value of this one. You
gain a whole evening a week when you buy a house! The wash gets done in between
other things, or while you're at work. What would you do with the extra evening
you'll have? How about going out for dessert with your spouse with all those
quarters?
I've been in a home
of my own for so long; Itake these benefits for granted. I forgot what it's
like to be a renter! If you have anything you can add to the list, please let
me know via email. I'd love to hear from you!
When selling your
home there are no guarantees that a buyer will simply walk through the front
door. In many cases you may have to bring your home to the buyer. Effective
marketing will help ensure that your property receives maximum exposure to
attract a ready, willing and able buyer. The appearance of your home, a buyer's
first impressions and other considerations can also affect the sale of your
home. Be sure to explore tips for increasing your home's value. Have you
considered that home prices in your neighborhood and the value of your property
are also factors used for pricing your home? When you're preparing your house
for sale, remember the importance of first impressions. The market isn't the
only factor that influences whether you get your asking price. Appearance and
overall condition play a major role. Here are some easy things you can do to
make your home more appealing to buyers. It is estimated that more than half
the houses are sold before the buyers even get out of their cars. So stand
across the street from your house and review its curb appeal.
On the
outside
Sweep front
walkway.
Remove
newspapers, bikes and toys.
Park extra
cars away from the property.
Trim back the
shrubs.
Apply fresh,
clean paint throughout.
Clean windows
and window coverings throughout.
Keep pet areas
clean.
Keep plumbing
and all appliances in working order.
Maintain all
sealant (window, tub, shower, sink, etc.) in good condition.
Make sure
roof and gutters are clean and in good condition.
Mow the lawn
frequently and plant flowers.
On the
inside
The kitchen
and bathroom should shine.
Quick
once-over with the vacuum; carpets should be clean.
Place fresh
flowers in the main rooms.
Put dishes
away, unless setting a formal display for decoration.
Make all beds
and put all clothes away.
Enhance the
spaciousness of each room.
Open drapes
and turn on lights for a brighter feel.
Straighten
closets.
Put toys
away.
Turn off
television.
Play soft
music on the radio/stereo.
Keep pets out
of the way and pet areas clean and odor-free.
Secure
jewelry, cash, prescription medication and other valuables.
Important
Reminders
Potential
buyers usually feel more comfortable if the owners are not present.
If people
unaccompanied by an agent request to see your property, please refer them to
your real estate professional for an appointment.
Leave a
number where you can be reached if you are leaving town, even for a
weekend.
