home seller tips Archives - Page 3 of 11 - Real Estate News and Commentary

August 20, 2017July 14, 2019

Attract home buyers – Zillow listing

If you’re selling your home, check your Zillow listing. You may find that the information may not be complete. Or worse, the information posted is from a previous sale. But don’t worry, Zillow now gives you the tools to take control, attract home buyers, and improve your sale.

Most of the information you see on your Zillow listing is syndicated from the MLS. This means that your listing agent uploads information to the MLS and the MLS sends it to other websites. If you’re not happy with the listing, your agent can change some information via the MLS, and/or log into the Zillow listing to make changes. However, if your listing agent is too busy to service your listing or does not know about logging into your Zillow listing, you can now take control and attract home buyers.

Zillow offers home owners the opportunity to “claim” their home to access features to personalize information to help home buyers (and Zillow) to get a better picture about their home. The “Personalized Owner Dashboard” gives you control of your listing (zillowgroup.com/news/personalized-owner-dashboard).

Of the many available tools, online metrics is useful to see how much attention your home is getting from home buyers. You can view your home listing’s online activity, including how many times the listing has been viewed compared to your competition.

Improve on the house description by adding “What I love about the home.” This feature conveys to home buyers what attracted you to your home. Elicit the home buyer’s emotions to visit it and attract home buyers by adding your story.

The MLS limits the number of pictures on your listing. So, solely relying on the MLS feed can also limit your Zillow listing. Increasing the number of pictures and adding video can make your home listing more robust, and attention getting. Zillow allows you (and your agent) to upload additional pictures. You can upload, arrange, and describe additional photos to help give home buyers the best view of your home. Zillow even lets you upload a video that you record from your smartphone! Besides including a link to the MLS virtual tour, Zillow added the “walk through” video feature last year.

Not happy with your Zestimate? You’re not alone. Zillow’s Zestimate tool has received mixed reviews since its inception. Many home buyers and sellers have used the tool as a guide in to help their buying and selling by looking at house and neighborhood trends. However, there has been criticism from home owners and real estate agents saying that home valuation tool is not inaccurate and does not correctly portray their homes and listings. As a response, Zillow has changed the algorithm over the years. And this year, Zillow announced a $1,000,000 prize for the best model to improve the Zestimate tool (zillow.com/promo/zillow-prize). But that hasn’t stopped a class action suit that complains that the Zestimate is “misleading” home buyers (Rachel Koning Beals; Do Zillow ‘Zestimates’ mislead home buyers? Lawsuit claims yes; marketwatch.com; May 23, 2017).

Attract Home Buyers – Improve your Zestimate.

Yes, you can improve your Zestimate. The dashboard allows you to update the facts about your home. Updating your home’s information will give home buyers a better description, and it can possibly improve the Zestimate. Since the Zestimate is based on public records, all your home’s information may not be current or complete. Telling Zillow about the extras, such as bathrooms, a finished basement, a deck, etc. can be a plus and attract home buyers.

By Dan Krell
Copyright© 2017

Original published at https://dankrell.com/blog/2017/08/20/attract-home-buyers-zillow-listing/

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

June 23, 2017July 14, 2019

Selling your home – try, try, again

If your home didn’t sell this spring, it’s ok. Rocky never quit when he lost, and neither should you. No one said selling your home was easy. Take stock and plan for your next sale.

If your home didn’t sell, you’re not alone. Consider that April’s existing home sales dropped 2.3 percent, according to the National Association of Realtors May 24^th press release (nar.realtor). NAR Chief Economist, Lawrence Yun, stated that the April slide was “expected” because March sales were very strong. Additionally, he pointed out that new and existing inventory is not meeting demand. Many prospective home buyers are frustrated because there is not much of a choice and they are not finding the homes they want. When selling your home, does it have features that buyers want?

Pending home sales also declined in April. Based on contracts signed, the forward looking indicator suggests additional decreased sales in the months to come. Yun also attributes the prospect of future decreased home sales to low housing inventory. He stated that the inventory of existing homes for sale decreased about 9 percent from the same time last year.

When selling your home, consider that the appearance of a brief period of slow sales is not necessarily a warning sign of an impending housing crisis. Instead, a slower sales trend may be considered part of a normal economic cycle after a breakthrough sales year. It is a sign of a healthy market seeking balance. The cycle is caused by home buyers and sellers struggling to find equilibrium.

If your home didn’t sell, you may have a better chance in a few months when the cycle changes. However, before going with the same strategy, try to analyze what happened during this listing period. You may find interesting and revealing information, about your home and your agent, that could help you the next time.

First, talk to your listing agent. If they were active in marketing your home, they should have a wealth of information. Start by asking them about showings. The number of showings determines buyer interest in your home. If you had few visits to your home, it could mean the price is too high. It could also be a result of low quality MLS pictures and information. Buyers start with the MLS listing to determine if the home is worth a visit. However, if you had plenty of buyer visits but no offers, there may be other issues that need attention.

Check with your agent for feedback. Agents often communicate about their visits to homes. Home buyers who attend open houses also provide feedback. Skip over the positive feedback because agents and home buyers often offer positive feedback just to be polite, even if it’s not warranted. Look toward critical reviews for help to improve your home presentation and marketing. If the same item is mentioned multiple times, you should take that as an indicator and begin there.

When selling your home, price, presentation and marketing are relatively easy to adjust. However, your home’s condition could be a deterrent. Buyers in the current market are very demanding and selective. They want a turn-key home that has the recent updates featuring the newest technologies. Even though housing inventory is low, many home buyers will not settle for any house. If your home is not updated relative to the top sales in your neighborhood, you may have to consider a major price adjustment. If your home’s condition is holding back a sale, do a cost-benefit analysis. You may discover that selling for less could net you more than if you spent tens-of-thousands on renovations.

By Dan Krell
Copyright© 2017

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May 19, 2017November 23, 2021

Consumers changing real estate agent commissions

Consumers have most likely complained about real estate agent commissions since the advent of real estate brokerage. However, before the turn of this century, most did not question the real estate agent commissions they paid because they chalked it up to the cost of selling a home. Times have changed, such that having a conversation about commissions and compensation is a common topic when agents and consumers first meet.

Real estate agent compensation is evolving as fast as the industry. The US Bureau of Labor Statistics (bls.gov) reports the median annual wage for real estate sales agents was $44,090 in May 2016 (The lowest 10 percent earned less than $22,230, and the highest 10 percent earned more than $112,570). The BLS states:

“An agent’s income, therefore, often depends on economic conditions, the agent’s individual motivation, and the types of property available. Income usually increases as agents become better and more experienced at sales. Earnings can be irregular, especially for beginners, and agents sometimes go weeks or months without a sale. “

Before the turn of this century, there was more conformity in real estate agent commissions because most agents were not negotiable in the compensation they charged. However, modern agents have adjusted their business models and are open to negotiate how much they will be paid.

There are also many real estate broker compensation structures from which you can choose. Some brokers offer limited services, and some offer fee-for services, which includes a MLS placement service. Some fee for service brokers offer à la carte services, where you can choose specific services for which you want to pay. Most “full service” agents still charge a percentage, but the percentage can vary from agent to agent. Full service agents can also vary on the extent of the “full” service they provide; however, many will be open to negotiate their commission rate. Regardless of model, get the agent’s services in writing and hold your agent accountable.

The increased market pressure on agent compensation is actually good for the consumer. It doesn’t only lower the cost of the real estate transaction, but it also increases the quality of services. This was the finding of an empirical study by Panle Jia Barwick and Parag A. Pathak (The costs of free entry: an empirical study of real estate agents in Greater Boston; The RAND Journal of Economics; Vol 46, No. 1, Spring 2015, p.103–145). Their study investigated three scenarios that are chipping away at the traditional real estate agent compensation models: lower commissions, commissions based on break-even costs, and improved information about agents’ past performance.

Barwick and Pathak found some interesting outcomes from their research. Besides concluding that there are consequences for fixed real estate agent commissions, they also discovered that the easy entry into the industry (i.e., the ease of getting a real estate license) reduces the quality of service. Furthermore, the increased competition among real estate agents caused by easy entry into the industry is not beneficial to a home selling or time on market. They also concluded that

“…lower commissions reduce transaction costs, which might lead to a more liquid housing market, improved asset allocation, and better housing consumption. Flexible commissions also provide a channel for consumers to choose services tailored to their preferences.”

Their results suggest

“…that a 50% cut in commissions would result in 40% fewer agents, social savings that amount to 23% of industry revenue, and 73% more transactions for the average agent.”

Realtors should embrace the discussion about compensation and real estate agent commissions with their clients. It offers the agent an opportunity to demonstrate their accountability. It also promotes transparency and the services we Realtors provide, and builds the trust that is lacking in the industry.

Original published at https://dankrell.com/blog/2017/05/19/changing-real-estate-agent-commissions/

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May 12, 2017

Real estate auction home buying and selling

As the housing market continues to grow, buying and selling homes through the real estate auction is becoming more popular. Contrary to popular belief, real estate auctions are not just for distressed properties. Being part of a real estate auction can be exciting, but it’s not for everyone. There are pros and cons for both the home buyer and seller.

A real estate auction is traditionally a “live” auction performed at a designated place where the bidders and auctioneer meet to conduct the auction. You must be present, or have a proxy present, to make your bid. You must register to bid at the auction, usually presenting proof of funds for your deposit. The pace of the live auction can be very quick, so you have to pay close attention to the action.

Another form of real estate auction that has blossomed out of the foreclosure crisis, is the online auction. The online real estate auction allows many homes to be auctioned simultaneously. The atmosphere and pace of an online auction is different from a live auction. Of course, buyers can make their bid from virtually anywhere, and the bidding can take place over days or weeks.

If you want to sell your home via real estate auction, the benefits include: decreasing your homes time on market; you know when the home will sell; the home sells “as-is;” home buyer contingencies are typically few or none. The National Association of Realtors (nar.realtor) auction information describes homes that are good prospects (What Properties are Suited for Auction?) , which include: homes with a lot of equity; unique homes; vacant homes; and homes that are difficult to appraise.

However, real estate auctions are not for all sellers. The downside to the auction is that your home may not sell, especially if you place a reserve (seller reserves the right to accept or reject highest bid) on the auction. There are also costs that typically include the auctioneer’s commission and advertising costs, which could be due even if the home does not sell.

If you’re a home buyer, a real estate auction offers benefits for you too. Real estate auctions offer another avenue to purchase homes other than those listed in the MLS. This can be attractive especially when there is limited inventory of homes for sale. Buyers guide the sale price through their bidding. Unless it’s a blind bid auction (where bids are not disclosed to other bidders), you can decide if you want to increase your bid based on others’ bids.

If you want to buy a home at auction, do your due diligence. Read the terms of sale, there may be a minimum bid, minimum deposit, and even a buyer’s premium (which can be as high as 5 percent of sale price) and other fees that may be due at closing. Check the auction schedule frequently because the date and time may change, or the auction can be cancelled. Understand the type of auction you’re bidding in, because you may not get the home even if you’re the highest bidder (especially online auctions). Inspecting the property may be a challenge as you may have limited access.

Hire a Realtor to help you buy a home at a real estate auction

Hire a Realtor to assist and guide you through the details of buying a home via real estate auction. Your agent can help you get the terms of sale and any due diligence material the auctioneer provides. Additionally, they can also provide comps for the property to help you decide on your bidding strategy. If you have the winning bid, your agent can help you with the details of getting you to settlement by assisting with contracts, financing, and other aspects of the sale.

From the National Association of Realtors auction section:

BENEFITS TO THE SELLER:
-Buyers come prepared to buy
-Quick disposal reduces long-term carrying costs, including taxes & maintenance
-Assurance that property will be sold at true market value
-Exposes the property to a large number of pre-qualified prospects
-Accelerates the sale
-Creates competition among buyers—auction price can exceed the price of a negotiated sale
-Requires potential buyers to pre-qualify for financing
-The seller knows exactly when the property will sell
-Eliminates numerous and unscheduled showings
-Takes the seller out of the negotiation process
-Ensures an aggressive marketing program that increases interest and visibility

BENEFITS TO THE BUYER:

Smart investments are made as properties are usually purchased at fair market value through competitive bidding
-The buyer knows the seller is committed to sell
-In multi-property auctions the buyer sees many offerings in the same place at the same time
-Buyers determine the purchase price
-Auctions eliminate long negotiation periods
-Auctions reduce time to purchase property
-Purchasing and closing dates are known
-Buyers know they are competing fairly and on the same terms as all other buyers
-Buyers receive comprehensive information on property via due diligence packet

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April 28, 2017July 14, 2019

Gonzo home sales and prices

Everyone seems to be excited about this week’s Case-Shiller home price numbers reported for February. Even the title of the April 25^th press release sounded a little giddy: “The S&P Corelogic Case-Shiller National Home Price NSA Index Sets Fourth Consecutive All-Time High” (spindices.com). Yes, the Case-Shiller 10-city and 20-city composite indices are close to the 2007 level. But before you become intoxicated by reports of gonzo home sales and prices and run off to sell your home, here’s more to the story.

Gonzo home sales and prices

Gonzo home sales and prices depend on the market. According to the recent Case-Shiller release, Seattle, Portland, and Dallas topped the charts with annual index gains of 12.2 percent, 9.7 percent, and 8.8 percent respectively. Not surprisingly, Seattle and Portland have been the hottest real estate markets over the past year. Tampa’s and Cleveland’s housing markets are at the opposite end of the spectrum with decreases of -0.5 percent, -0.3 percent during February; while Miami’s home price index was unchanged. Washington DC reported an annual gain of 4.1 percent, with a 0.2% gain reported in February.

David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices stated:

“There are still relatively few existing homes listed for sale and the small 3.8 month supply is supporting the recent price increases. Housing affordability has declined since 2012 as the pressure of higher prices has been a larger factor than stable to lower mortgage rates.
Housing’s strength and home building are important contributors to the economic recovery. Housing starts bottomed in March 2009 and, with a few bumps, have advanced over the last eight years. New home construction is now close to a normal pace of about 1.2 million units annually, of which around 800,000 are single family homes. Most housing rebounds following a recession only last for a year or so. The notable exception was the boom that set the stage for the bubble. Housing starts bottomed in 1991, drove through the 2000-2001 recession, and peaked in 2005 after a 14-year run.”

Gonzo home sales and prices are dependent on local real estate. It’s true, housing inventory is lacking. At a time when homes should be coming to market for the spring season, the Greater Capital Area Association of Realtors Montgomery County single family statistics for March 2017 indicated that there were -1.8 percent less new listings compared to the same time last year. And the total number of active homes for sale are -16.4 percent less than the same time last year. Although June is usually the peak time for home sales and prices in our area, home sales increased 17.9 percent month over month, and is 11.7 percent higher than the same time last year; while average home sale prices increased less than 1 percent (gcaar.com)!

Holy shades of 2005, Batman!

Housing stats sound eerily like those before the housing bubble crash. But this market is different in many respects. Consider that housing speculation is not as prevalent as it was at that time; homes are not being flipped in a matter of days in most areas. And home buyers are more sophisticated and savvy than they were in 2005; home buyers are more demanding, as well as sensitive to home condition and price.

Yes, it’s true that house values are increasing. Yes, home sales are breaking records. But not all homes sell. You should realize that that home sale stats includes data of homes that sell. Homes that don’t sell are not included in the numbers of closings, nor are they included in home sale prices.

Homes that don’t sell tend to be overpriced for the home’s condition, or neighborhood. Sometimes, the physical location of the house is not ideal; for example, situated next to train tracks. If you’re selling your home this year, don’t get greedy. Get a professional opinion on pricing your home correctly; over priced homes tend to not sell quickly, or not at all.

Pricing your home may not be as easy as you think. Empirical research has confirmed that there are many variables that affect sales price. Factors that impact home sale price include the home’s location, condition, amenities, and market timing.

If you want to sell your home quickly and capitalize on home sale trends: consider repairing deferred maintenance issues, making updates, and don’t take home buyers for granted. When making repairs and updates, don’t go for the cheapest quote because it will likely show. Also, make sure your contractors are licensed.

Home buyers are just as savvy as you, so any attempt to deceive will backfire and hurt your sale. Focus on broadening your home’s appeal. Consider making your home turnkey, since most home buyers are looking for a home they can move right in and without making immediate repairs and updates.

For a guide on a successful home sale, take a look at “The magic of 4 to sell a home“

By Dan Krell
Copyright© 2017

Original post at https://dankrell.com/blog/2017/04/28/gonzo-home-sales-prices/

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