Number One Selling Tip
Negotiating the Real Estate Contract
Top Ten Mistakes Sellers Make When Choosing
a Realtor
Number One Selling Tip - The Multiple
Listing Service
You are not hiring a Realtor to put a sign on the lawn,
an ad in the paper, and hold an open house. You can do this
yourself. You are hiring a Realtor to provide you with maximum
exposure to the greatest number of qualified buyers for
your home.
Supply and Demand
You've heard of supply and demand? The more potential buyers
at your supply, the higher a price you can demand.
The absolute number one tip I can give you to help you
get the most money possible for your home is this: make
sure you get full Multiple Listing Service (MLS) coverage.
Don't look at any offers until you are sure your home is
on the MLS computer.
I will say this again...
Don't look at any offers until you are sure your home is
on the MLS computer. An army of Realtors at your disposal
can't be beat.
Dump any Realtor that tries to tell you to put your house
on exclusive (only his/her company) or wants you to negotiate
offers before it gets on MLS.
Dump any Realtor that wants to list your house on a Friday
and have a public open house the following Sunday. There
is not enough time to get your home on the system.
I do not care how good a Realtors marketing plan is, it
is worthless compared to the value of having your home on
the MLS system. Think of it this way. Realtor = home on
MLS = most Realtors = most buyers = most money.
Is the first offer the best offer?
There is a saying in real estate. The first offer is usually
the best one. This is only true, if everyone knows it's
for sale.
Real estate surveys in my area showed the owner lost an
average of $2000. when their house was sold by the same
office or Realtor that listed their home. The reason...the
offer was written before any one else knew it was for sale.
MLS Comes First
Ask any realtor you are contemplating dealing with, what
the order of their marketing plan is. If submitting to the
Multiple Listing Service is not the first thing they are
going to do, look for another realtor.
If you took away every selling tool I had, and said I could
only have one of them back, I would choose the MLS service.
This is not a commercial for MLS. It is just the best weapon
Realtors and the public have for getting maximum exposure
on property..
MLS is a strong selling tool,...use it... It will make
a difference on your bottom line.
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Negotiating
the Real Estate Contract
How to Buy at the Lowest Possible Price!
You’ve been out house hunting for weeks and you’ve
done all your research and now you want to put in an offer
to purchase the home of your dreams. So how much do you
offer the seller?!! And is it really how much you offer
or how you offer it?
Reasonable Market Price
Before doing anything else you need to know what a reasonable
market price is for the home you hope to buy. Have your
real estate agent run a Comparable Market Analysis for you
on similar homes that have sold in the last year in your
target neighborhood. Although an appraiser will only use
the last six months of comparable sales when figuring appraisal
value, it is helpful to have a more overall trend for the
neighborhood to determine that prices are rising and that
your investment will be protected in the long run.
To arrive at a reasonable market price you and your agent
will be comparing the condition, location and amenities
of similar homes that have already sold plus the current
market competition of other homes for sale in the area.
Your Price
Then you must figure out what YOU are willing to pay for
this home. If you are willing to pay market value or more
for this home because you don’t want to risk losing
it, please let your agent know up front! Most good agents
will try and negotiate a below market sales price for you
because they want to please you and retain you as a future
client. But only you can determine how you might feel if
you lost this home to another buyer for a few thousand dollars!!!
If you want a deal be sure to tell your agent that, but
if you want only this home, tell your agent that too! His
negotiating tactics will depend heavily on this information.
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Top 10 Mistakes
Sellers Make When Choosing a Realtor
Selling a home should be like any other business transaction,
but all too often sellers make emotional or impulsive decisions
that cost them money and time. Choosing the right Realtor
to market a property and negotiate the sale is the most important
step in the process.
“My friend (or family member) sells real
estate.”
Friendship alone isn’t enough to establish a professional’s
credentials. Use tough standards when selecting an agent,
just as you would when hiring an attorney, a doctor, or
an accountant to handle your taxes. A true friend will understand
and appreciate that this is a business decision and will
offer their credentials and expect to compete for the listing.
Besides, if a problem or challenge develops while selling
your home, do you want to risk damaging a friendship or
family relationship?
“Your presentation sounds good. I’ll
list right now”
Look at more than one presentation and consider the advantages
and disadvantages of each. Making an impulsive decision
when caught up “in the moment” could be difficult
to correct later. Since you normally contract to list your
house with the agent for a specific period of time, you
may find yourself unable to “switch” to another
if you find yourself unhappy with the service you receive.
“You’re the only agent who agrees with
my selling price.”
Some agents tell you what you want to hear. In the real
estate profession, this is known as “buying a listing”
and is employed by shortsighted agents who are more interested
in themselves than they are in you. However good it works
as a short-term “sales tactic” in getting your
listing, it is an extremely poor strategy in selling a home
at the highest possible price.
You see, your house gets the most attention from other
agents when it is a “new” listing. If priced
properly, lots of agents will show it to their buyers. If
you price it too high, no one will show the house and it
will sit on the market for some time. When you finally drop
your price to reflect its real value, your house is “old
news” and buyers may think you are growing desperate.
Therefore, the prices you are offered will come in lower
and lower – and you may find yourself accepting a
price that is below what you could have received had the
house been priced properly to begin with.
Besides, pricing your home too high will only make similar
houses for sale look that much better. Overpricing helps
sell those houses, not yours.
“I don’t need references. I’m
a good judge of character.”
A snap judgement isn’t good enough. You also need
to determine if the agent is competent and the best way
to do that is to check up on references. Ask for references
on recent sales -- check up on references of recent customers.
Find out how an agent’s customers feel about their
selling experience.
Remember that how long an individual has been in real estate
isn’t necessarily all you should look for. Experienced
agents can grow jaded and not work as hard – newer
agents sometimes make up with enthusiasm and effort what
they lack in experience.
“I’m going to list with the agent who
has the lowest commission.”
You get what you pay for. Paying a cut-rate commission
will often get you a sign in the front yard and placement
in the Multiple Listing Service, but little additional effort
from your agent.
Realize that agents and real estate companies put up their
own funds to market and advertise your home. Marketing and
advertising costs money -- the lower the commission, the
less incentive for an agent to put up his or her own money
to market your home.
Incentive plays a very important role in sales. A “full
service” agent earning a full commission will often
“drop everything” to handle any challenges that
come along – an agent earning a small commission does
not have that same incentive.
Incentive is also important to the buyer’s agent.
Since there are almost always two agents involved in every
sale, they split the commission according to the listing
agent’s instructions. One agent is your listing agent.
The other agent is the buyer’s agent. When your listing
agent dropped his commission, did he also reduce the commission
that will be paid to the buyers’ agent? If so, you
won’t find as many agents willing to show your house
– they’ll be showing houses that offer a customary
commission to the buyer’s agent.
Finally, negotiating ability is an important skill in a
listing agent. Are you willing to put your faith in an agent
who can’t even negotiate his or her own commission?
“The agent is what counts – not the
company.”
Agents who work for large well-established companies with
lots of agents do have some advantages. Large companies
generally have longer office hours, so someone is always
available to answer an ad call on your home. Large offices
often have larger budgets and can spend more on advertising.
The ad space for your particular home might not be huge,
but because the total ad is so large it gets lots more attention.
Large real estate companies often have lots of agents.
This is important because when your house is newly on the
market, the company may stage an “office preview”
where every agent in the office comes through and tours
your home. Every agent who views your home and is impressed
is another agent on your sales team.
Additionally, larger companies are often better at offering
ongoing education to their agents. As a result, your agent
may be better qualified and prepared to offer a quality
service. Although most states require real estate agents
to enroll in “ongoing education” to keep pace
with changes in the real estate market, many agents only
take the “bare minimum” in ongoing education
courses. Sometimes, large offices are better at convincing
their agents to go beyond the minimum.
There are exceptions to every rule, of course. Some very
effective agents go off on their own and open private offices
or “boutique” agencies.
“All realtors passed the same test so they
must know the same things.”
The real estate profession is constantly changing and,
as mentioned above, the best real estate professionals stay
abreast of those changes by continuing their education.
Some go beyond the required minimum requirements. Many agents
acquire “professional designations” that show
they took additional specialized courses.
“This agent will hold an open house every
week.”
Open houses can and do sell homes, but usually not your
home. Only a small fraction of the homes held open are sold
as a direct result of the open house. More often, “open
houses” are a way that real estate agents “prospect”
for potential clients. If they develop a rapport with those
visitors to your open house, they can find out about their
housing needs and sell them the home that most closely matches
those needs. Meanwhile, the person who eventually buys your
home may be visiting someone else’s open house.
Good agents know better than to pin all their selling efforts
on an open house. They use their time in more effective
marketing methods. The most effective marketing is not directly
to the public, but to other agents. By getting other agents
interested in your home, your listing agent multiplies your
sales force beyond just one individual.
“I want an agent who lives in my neighborhood.”
Knowledge of the local market isn’t only acquired
by living in the immediate neighborhood. Sure, your agent
should have intimate knowledge of recent sales, models,
schools, businesses, and so on, but that is easily achieved
through extensive research. Convenience shouldn’t
be the primary reason for choosing an agent.
“This agent sold more homes last year than
anyone else.”
That should only be the beginning. What is more valuable
-- an agent who listed 32 homes and sold 25 – or an
agent who listed twelve homes and sold all twelve? So you
need to ask some questions. How many of their listings did
not sell? How many were reduced over and over before they
sold? How long were the houses on the market? How smoothly
was the process handled? How accessible was the agent when
there were questions or problems?
Quantity is important, but only if all of the quality questions
have been answered satisfactorily.
Conclusion
The best agent is the one who will do the most effective
job of marketing the property, negotiating the most favorable
terms and conditions, and communicating with the seller
to make the process as smooth as possible.
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