Tag: real estate

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Financial Real Estate

How to Find the Right Real Estate Agent for You

selling your home

Regardless of whether you are buying or selling a home, it’s very possible you would reach out to a real estate agent for guidance and help through the process. How do you know how to find the right real estate agent for your needs?

With realtors, full-time, part-time, and even family friends and relatives in the business, how do you know who to choose, or even how to evaluate a potential agent? We’re going to take a look at some of the factors that you should consider.

1.   Use A Professional

This cannot be overstated. There are part-time agents and agents that essentially do real estate as a hobby, but not as a career or even a full time job. When you are buying a home, and especially when you are selling a home, you want a real estate agent that is experienced and has a track record of closed deals and satisfied clients. They will be acting as your professional negotiator, so industry success is crucial.

2.   Sellers Need Special Attention

If you are selling your home, you will need the attentive service of a full-time, professional real estate agent. Having someone stop by and throw a “for sale” sign in your yard doesn’t cut it anymore, and it definitely won’t result in a sale.

A seller is going to want a real estate agent that will be proactive in their search for potential buyers. Particularly valuable real estate agents will be thoroughly familiar with leveraging technology in their trade. This is of extreme importance since most people will be viewing your listing on an app or website.

This also means they will need to be able to provide good pictures, enticing descriptions, and provide the details that buyers are hungry for.

3.   The Right Agent For Buyers

The buyers of new homes also need a particular type of attention in their quest for the perfect home. They benefit heavily from a real estate agent that has a history of successful buys and closed deals. Many real estate agents only sell a few homes a year, so finding one that has made significantly more than that is an indicator of quality and expertise.

Average real estate agents will simply search the MLS, and go through the listings with the potential buyers, without devoting much effort or care to the overall results. A great agent will find great homes that are about to hit the market and may be able to get a potential buyer into a very advantageous place to make an offer.

4.   Know The Difference Between Realtors And Real Estate Agents

Remember that not all real estate agents are going to be realtors. A realtor is a trademark of an organization called the National Association of Realtors, which is a professional organization with a formal ethics code. There are similar ethical standards in place by federal and many state agencies, but the NAR is additional.

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Financial Real Estate

Real Estate Tips for a First-Time Home Seller

real estate tips for selling your home

While buying a home often revolves around emotions, and how the house “feels” as a home. Selling should be detached as much as possible from that emotional aspect so that it can maximize the profit potential of the seller. These tips will apply to anyone putting a home on the market for the first time, as well as anyone who may need a quick review of some best practices.

1.   Make Sure You Have An Accurate Price Listed

This is one of the areas where having an experienced and reputable agent can help you immensely. Particularly one that has already had success in your general neighborhood. Make sure that they will perform a comparative market analysis for you. This should help you set your price as high as possible while not deterring offers or needing to reduce your price.

2.   Staging Can Add Incredible Value

Get advice from your agent on prepping for the sale. Many homes can benefit greatly from being professionally staged prior to an open house. Most homes show better and get more positive results from having about half of the furniture removed before showings. Professional home staging can add significant leverage for appeal and selling power.

3.   Stay Flexible With Showings

You may have to have several showings, so if they are too much of an imposition, or if watching someone tour your home seems weird, consider just not being around for the first weekend your home is on the market. This will allow your agent to show your home at times that work best for the prospective buyers.

4.   Host An Open House For Potential Home Buyers

If you have had your home staged, you may get noticeable benefits from hosting an open house. Your agent will know if this will be a viable option for your home. Some homes may not be conducive due to traffic patterns in the area, or even the home layout.

If there is a reasonable expectation of a benefit from the open house, put signage nearby, preferably on the main road likely to draw in viewers from the traffic. Sometimes all someone needs to know your house is the one, is to walk through it.

5.   Get The Commission Details

Don’t hire an agent purely based on a cheap commission. Many times the agents who offer a reasonable standard commission should be seriously considered. Don’t expect a cheap agent to give your listing the full service and attention it deserves. Likewise, be sure that the agent you do go with has a proven track record of selling homes, and of the sellers being satisfied.

6.   Respond Quickly To Home Buyers

If you’re putting in serious effort to sell your home, make sure you put in serious effort to respond to offers. It’s not uncommon for purchase offers to expire relatively quickly. Even if they don’t, prospective buyers will not appreciate waiting for the acceptance of their offer, or possibly even more frustrating, a counteroffer. Responding the same day, or within 24 hours, is ideal.

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Financial Real Estate

Types of Contract Contingencies for Homebuyers

Contract Contingencies for Homebuyers

Buying a home for the first time or the 15th time requires a lot of detailed work. It can even be a bit nerve-wracking for everyone involved. To help protect homebuyers and sellers, contract contingencies have become a common-place way for anyone to work within the deal and get their money back.

What are Contract Contingencies?

Contingencies are built into contracts as a way for prospective homebuyers to cancel the contract without the penalties that were typically incurred. Homebuyers can also get back their earnest money deposits which help lower the risk for buyers when they’re looking to purchase.

Common Contingencies

Detailed contingencies vary from state to state as some take different views of different inspections. Whether it’s roof inspections or septic tanks, before you buy a home you’ll need to research which ones are specific to your state. There are a few common ones that are standard across state lines!

Appraisal

This is when the home is checked out and evaluated to determine what the purchase price will be. So what happens if a home is appraised at a much lower value than originally thought? Buyers may back out of a sale when the lender doesn’t want to approve the mortgage amount.

Home Inspection

Before buying a home, buyers are encouraged to have the home inspected. If the home has issues and the buyers request a repair, the seller must first receive a copy of the home inspection before making repairs. During this stage of the buying process, the buyers want to drop out due to difficulty to repair issues, the home inspection contingency allows them to do so.

Lead-based paint

In many homes built before 1978, lead-based paint was used all over the place. Buyers have ten days to inspect this paint. If it’s found they’re allowed to drop out of the deal through the lead-based contingency.

Wood Destroying Pest Inspection

Who doesn’t love some little neighbors already burrowing into the woodwork? If pests or dry rot is found, the contract will specifically stipulate who needs to deal with the issue. Additional costs may be incurred during this time causing the buyers to can drop out of the deal in general.

Roof Inspection

Your roof does a lot more than just keep the rain off your home! During home inspections, buyers can hire a roofing company to do a complete roof inspection. They may even call off the deal if there’s too much damage. Putting in a new roof or repairing something that’s severely damaged is costly and may not be worth the price.

Sewer Inspection

Sewers can be delicate contraptions and easily susceptible to tree roots or deterioration over time. During a sewer inspection, plumbing companies check out the pipes for damage so buyers can determine if it’s sound before going forward with the sale. Installing a new sewer system is very costly and to put one in right after buying may be too much for homebuyers.

Takeaway

Buying a home is a risky business. Getting all of your inspections done on a new home is one of the best ways to be sure you’re getting exactly what you want. Contingencies offer you an escape route in case the home doesn’t stand up to scrutiny. Take your time and get all of your inspections completed before signing the final papers!

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Financial Real Estate

Selling Your Home? Here’s a Moving Timeline

selling your home moving timeline

Selling your home can be a very stressful time. From worrying that you’ll make enough money on the sale to concern about having to move in the midst of everything else that you have to deal with when selling your home. Generally speaking, the process of selling your home is not done quickly. Most people plan for months before even listing, and then from there you never know how long it could take.

Right Now

Whether you think you’ll be ready to move in 3 months or 6 months, you should have a list date planned, as it makes it easier to plan ahead and get your home ready to show potential buyers. Not only this, but it also simplifies the moving process when you finalize your plans on where you will be living next.

Two Months Prior to Listing Your Home

The market can fluctuate greatly, so it is a smart move to wait to decide on your list price until closer to when you will place your home on the market. Browse the local market; the comparable homes will help you set a price that isn’t so low you lose out on money but not so high that people are not interested.

Six Weeks Prior to Listing Your Home

If you do not already have a real estate agent in mind, this is the time to start getting recommendations from friends and family so you can interview a few candidates. You may get lucky and find someone great right away, but it could take you a few weeks to pick.

You should also get your home ready. A fresh coat of paint inside and outside and a few simple upgrades can make a big difference.

One Month Prior to Listing Your Home

This is a great time to start moving out. Renting a storage unit and eliminating unnecessary clutter, seasonal items, and things you have been storing in your home allows potential buyers to really see the home, helping them visualize their belongings and families in the space.

Two Weeks Prior to Listing Your Home

Contact the company that is handling your mortgage and get the payout information. You will need to know exactly how much you owe so you can price your home right. Also, you want to get any liens on your property taken care of.

If you have decided to use a real estate agent, this would be a great time to discuss staging so your home is ready to be listed.

One Week Prior to Listing

It’s almost time! This is the time where you or your agent will take pictures inside and outside of your home. First impressions matter and these photos will likely be the first thing potential buyers see about your house.

Listing Day and Beyond

Now that your home is on the market, your agent could call you anytime saying someone wants to view the house. It is best to keep your home as clean as possible so you don’t have to scramble at the last minute to get things ready to view.

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Financial Real Estate

How to Sell Your House Faster by Its Curb Appeal

sell your house curb appeal

It’s getting to the time of year when home sales absolutely explode. If you are getting ready to sell your house, you should know most of the main ways that you can squeeze all the extra value out of the inside of your home.

But what about the exterior? How can you boost your curb appeal and have those buyers ready to make an offer before they even hit the living room? We’ve got the top tips, take a look.

1.   Quality Signage In Front Of Your Home Is Important

It may seem like one of the more trivial things, but the real estate signage in front of your home is a direct reflection of how you and your listing agent regard your property. It should be clean and made from quality materials.

2.   Trim Your Trees And Shrubs

The foliage around your home should accent it, not define it or hide it. It doesn’t take an award-winning artist to trim some hedges and shrubs to make them look nice before going on the market. Bigger trees may need a professional trimmer to come do it safely. Attractive pruning is one of the things noticed immediately by those pulling up to your home. If there are any diseased trees or limbs, you may want a skilled arborist to address those.

3.   Pamper Your Lawn

Make sure you keep your lawn neatly mowed and precisely edged. If you don’t have the right equipment, don’t be afraid to call a local landscaper to come one afternoon before the listing goes live or before an open house. Depending on the time of year, a quick lawn feeding can green it up and really impress potential buyers.

4.   Add Some Color To Your Home

A few flats of flowers from the local nursery or home improvement center can be worth their weight in gold when placed strategically around visible gardens. A splash of the color outside can really help, particularly in areas where HOAs prevent many colors in exterior paint shades. Stick with simple flowers and bright colors, but don’t go overboard. Top it off with fresh mulch.

5.   Refresh Your Walkways In Front Of Your Home

This is often overlooked, but it can add incredible value to your potential sale price on your home. Having your driveway, walkways, and sidewalk professionally pressure washed can make them look nearly new. If you have a blacktop driveway, throw a coat of sealant on it so that it looks nice and crisp.

6.   Stage Your Deck

Really want to sell your house? Make your outdoor spaces look inviting. Clean furniture, pressure washed deck and patio area, and maybe a fresh coat of stain makes for a beautiful and welcoming outdoor relaxation area.

7.   Get Neighbors On Board

Selling your home for top dollar doesn’t stop at your wallet. Your neighbors benefit from higher property values when a home on the block sells for a good price. Let them know you’re selling, and ask (as nicely as possible) if they could match your efforts at making things beautiful for the potential buyers.

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Financial Real Estate

Home Inspection Preparation

home inspection

The chore of selling your home is almost done. You’ve prepped it, listed it, and found a buyer. They managed to make an acceptable offer (congratulations!) and now it’s time for the home inspection. Hold off on filling up and taping those moving boxes shut, this step has caused many deals to fall through.

In most real estate deals, the home inspection happens once the buyer has signed the purchase agreement, but before the final closing date. Many buyers prefer to make the closing of the deal contingent on the acceptable results of a home inspection.

This lets them back out of the sale if any serious issues or defects are found by the home inspector. There is generally the opportunity for the seller to remedy the items, but if they are a major expense, like roofing or foundation issues, they may not agree to the expense.

If you’re a little nervous about the inspection, as the home seller, you are certainly not alone. Many sellers find this final hurdle nerve-wracking. On one hand, you don’t want the deal to fall through, on the other hand, you don’t want to be saddled with the cost of repair for anything that might be major. Here are some things that you can do to help prepare for the event.

1.   Clear The Way

The last thing a home inspector is going to want to see is that anything they need to inspect is blocked by stuff. Storage, junk, furniture, whatever, get it out of the way. If something common cannot be inspected, the buyer will see that in the report, and it could be a red flag.

2.   Walk The Perimeter

Check your siding, trim, windows, caulking and seals, doors, and weatherstripping of your home. This is all small stuff that you should have in order easily.

3.   Check The Roof

You may not have ever looked up there, but you know who’s going to? You guessed it, the home inspector. So haul out the ladder and take a look at the roof. Clean the gutters, remove any moss, look for and replace missing tiles or shingles.

4.   Check Your Bulbs

This is simple, but it can be your undoing. A light that doesn’t work tells an home inspector one of two things, either the bulb is out or the wiring or outlet is faulty. Since they won’t be bringing extra bulbs to test, make sure they won’t need them.

5.   Toilets

Clean and functioning properly are key. Worn parts can cause a toilet to keep running, get that stuff replaced before it’s noted on the home inspection report. The parts are only a few bucks and anyone can do it.

6.   Pilot Lights

This one is important if you turn your furnace off during the warmer months. The inspector is going to test the major appliances, so make sure that they are ready.

7.   Water Leaks

This is a big one. Look under cabinets and up at floor joists in the basement if you have one, and look for signs of leaks. Fix the leak, and fix any water damage before the home inspection.

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Financial Real Estate

Zillow Home Estimates Are How Accurate?

How Accurate are Zillow Home Estimates

Zillow is one of the most popular websites and apps to find information on homes for sale. Founded in 2006, Zillow is a real estate database that lists information about millions of homes all across North America. Users of the service can even search an area for information using criteria such as price, square footage, the type of home, or any number of listed amenities.

One of the big draws to Zillow is the estimate that it calculates for how much any particular home is worth. These numbers come from public sales data, as well as comparable homes. Currently, Zillow provides estimates of value on about 100 million homes across the US. While they can be relatively handy in finding a starting point for home valuation, there are a number of reasons why they may not be correct for a significant number of homes.

1.   Garbage In, Garbage Out

Zillow uses complex algorithms to keep its estimates updated and as current as possible, updating them three times a week. But this is based on both publicly-submitted data, and publicly available information. By their own account, Zillow estimates are within “10 percent of the selling price of the home” but that estimate is only as good as the data behind it.

If incorrect information has been listed on the website, that can continually affect the integrity of the estimates. While users can correct this information, the updated estimate may not be immediately visible. Sometimes the change simply isn’t significant enough to change the price.

2.   Mistakes In Important Figures on Zillow

Since the price of the most recent sale is part of the determination of the estimate, but if that information is inaccurate, the resulting estimate will be off as well. Zillow does take into account the taxes that are paid, but the tax assessor’s values can be flawed.

3.   Old Information On Zillow Not Reflective Of The Current Home

The homeowner may have made some significant improvements to the home, but Zillow may not be notified until the next tax assessment. This can derail the estimates in the meantime, meaning they can be off until the following year. This can be a fully remodeled gourmet kitchen that adds $40k to the value of the home, but since it didn’t need a permit there isn’t a tax record. It can also be the added bedroom that needed a permit and has a tax payment on file.

4.   Turnover Rate Affects Accuracy, In A Good Way!

Since a large part of Zillow’s data comes from home sales and tax records, if there has been a number of home sales in your immediate area, they may have an abundance of data. This means your Zillow-generated estimate has the potential to be much more accurate.

For example, if you live in a hot Florida suburb, you may see a high rate of turnover, while in rural areas people tend to stay in their homes for many years, even several generations. It is highly market dependant.