Seller’s Series – Your Realtor®’s Job

I’m selling my home. I know that putting it up For Sale by Owner (FSBO) isn’t the way to go, so I’ve contacted an agent and negotiated their rate to fit my needs. I still want to feel like I’ve done something to help though, so I want to create the fliers, do research on the Internet, and tell my friends and family about my home being on the market.

STOP!
I know I’ve only been in the business a short while when compared to many of my colleagues, but if there’s anything I’ve learned from real estate or any other industry, it’s that you never get something for nothing. You can NEVER get anyone to work for free. Even volunteers are getting SOMETHING out of the deal.

That being said, your Realtor is making a lot of money in the sale and purchase of your homes. Real estate agents are among the best paid professionals in the nation, and we’re darn good at what we do. Lawyers’ and doctors’ salaries can’t even come close to some real estate agents’ incomes. The point? Let us do our job. Better yet: let us earn the money!

I always tell my clients “I’m not afraid of work, I’m not afraid to put in the hours, and I’m not opposed to you pushing me to my professional limits.” Why? Because it’s the truth, because it sets me apart from other lazy agents, and because people respect a strong and dedicated work ethic. So whatever your Realtor’s niche or value is (great magazine ads, tech-savvy, just darn good looking) make sure they’re using that and earning their keep.

In short: if your agent isn’t doing ALL the work, find a new agent.

P.S. Outside of your local Multiple Listing System (MLS) the Internet is WAY outdated as far as home prices are concerned. Ask your Realtor, they’ll tell you and show you why. -dc

Questions? Comments? Concerns? Queries? Inquiries? Wanna hang out? Maybe have some dinner and discuss real estate? Have a home buying or selling nightmare you’d like to share or vent about? Email me! dcharbel [at] kw [dot] com.

Seller’s Series – Pricing (it right)

I want to sell my house fast and for the highest price possible. What’s going to make me competitive (besides cosmetics and other tricks)?

Your agent (hopefully you’ve chosen one of the top agencies in the city) will have access to vital data that will help you price your home competitively. There are two things that will sell your house in our current market, and one of them is correct pricing. The other is proper and effective marketing, but that’s neither here nor there.

When priced correctly your home will compete against the best and worst houses in your neighborhood, and will receive more offers than those competitors. Why? Because you’re going to appeal to the right potential home-buyers, you’ll have the advantage of not being the highest priced house in the neighborhood, and you’ll easily appraise to meet the offered price. What’s that? Appraisal? Let’s talk about this.

Any buyer, financed or cash, is going to want an appraisal. It just makes sense (and cents). Getting an appraisal will tell a buyer whether or not the property is worth the proposed price. If it doesn’t appraise the buyers can walk away (sometimes with their earnest money), you may have the opportunity to renegotiate, or the buyers can (rarely) bring the difference in cash to satisfy the lender. The last option hardly happens, so don’t hold your breath.

Say for example that your house is priced at $175,000 and receives a full-price offer. You accept (of course) and the buyers ask for an option period. After you’ve already taken the house off the market for an average option period (10 days) you’re in the thick of it with the remaining terms of the offer.

Then financing is secured. Great! The lender sends out an appraiser that compares other sales and active listings in the area and says the house is only worth $165,000. That $10,000 difference is what we’re talking about here. Had you and your agent priced your house correctly, perhaps around $165-170,000, the house may have appraised and avoided this situation. Now you’re cornered as a seller since your agent obviously didn’t do his or her homework.

Make your agent work for the money! They’re professionals who know what they’re doing, but since you’re the seller and paying for it make sure your agent is earning their keep.

Questions? Comments? Want to find out about the best brokerage in the city, the state, and even the country? Want to know what’s on my Christmas list? Email me at dcharbel [at] kw [dot] com. I won’t bite. I promise.