home seller Archives - Page 24 of 30 - Real Estate News and Commentary

August 30, 2013July 4, 2019

A glimpse into home buyer and seller behaviors

Buying and selling a home can be one of the most expensive and complex transactions you may undertake in your lifetime. Many are increasingly seeking assistance from real estate agents; according to the Highlights of the 2012 National Association of Realtors® Profile of Home Buyers and Sellers (realtor.org), eighty-nine percent of home buyers purchased their home through a real estate agent (a substantial increase from the sixty-one percent who indicated they purchased through an agent in 2001), while eighty-eight percent of sellers listed with an agent.

If you plan to hire a real estate agent, conventional wisdom dictates that you should interview several before choosing an agent. However, the logic is countered by the survey results. Approximately two-thirds of home buyers and sellers only contacted one agent. Additionally, a majority of buyers and sellers reported that the top means of finding their real estate agent was through a referral from a friend or family member. Forty percent of home buyers and thirty-eight percent of sellers found their agent through a referral from a family member or friend. First time home buyers were most reliant on their friends’ and family members’ referrals.

Repeat business was also a frequent way indicated in choosing a real estate agent. Although ninety percent of home buyers and eight-four percent of sellers reported that they would work with their agent again in the future; only twenty-three percent of home sellers and ten percent of buyers reported that they had worked with their agent in the past.

The internet is increasingly viewed as an important source of information for home buyers. Ninety percent of buyers surveyed indicated that they used the internet for their home search; the percentage rose to ninety-six for buyers under the age of 44.

Ultimately, your home purchase or sale falls upon the experience and skill of the agent you hire. Because of the increase in specialized transactions (such as short sales, 1031 exchanges, etc), it is probably a good idea to find out if the agent has the experience if your purchase or sale falls in this category.

A recent research study by Bennie Waller and Ali Jubran (“The Impact of Agent Experience on the Real Estate Transaction.” Journal of Housing Research 21, no. 1 (2012): 67-82) highlights the notion that an experienced agent can yield a better result than an inexperienced agent. They concluded that hiring a “veteran” agent will have a positive effect on your home sale. The data indicates that “rookie” agents, those who have had their real estate license two years or less, sell homes for less, take longer to sell homes, and are less efficient during the process.

Asking friends and family for referrals as well as calling the agent you previously worked with is a good way to find a real estate agent. However, vetting out potential issues can be achieved by asking the right questions before you hire them.

Regardless of how you find your real estate agent, it is probably a good idea to find out more about them. A conversation about their experience, knowledge, and expertise is probably a good way to start. Additionally, knowledge about the local market is extremely important these days as market trends have become hyper-local. Not understanding the neighborhood market can lead an agent to over or under price a home.

by Dan Krell
© 2013

August 21, 2013November 23, 2021

Home buyer’s privacy

In a time when there is increasing concerned about personal privacy, maybe it’s time for local Realtor® associations (such as the Greater Capital Area Association of Realtors®) to retire the Buyer’s Financial Information Sheet, or at least make major revisions to the form. The Buyer’s Financial Information Sheet is an invitation for abuse and misuse by those who may otherwise be well intentioned.

Sure, privacy laws have been recently enacted that prescribe protocols on the handling and disposal of sensitive personal information. However, there are no provisions to ensure that real estate brokers, agents, and those who have access to the personal data follow such precautions.

If you ask a real estate broker about the origination of the Buyer’s Financial Information Sheet, they might explain how agents needed a means to pre-qualify buyers in a time when loan officers’ pre-qualification letters had little meaning on their own. The tradition of a completed form portrays the buyer’s ability to purchase a home. Legal minds might go further to explain that the form may provide additional recourse for the home seller in case the buyer provides misleading and/or false information, and/or omits relevant information about their financial standing.

Today, many home buyers are pushing back (and rightly so) at the request to provide an abundance of specific financial and personal information to their agents, listing agents and sellers. For many home buyers, the resistance to sharing personal and financial information is not only because of discretion, but mainly because they feel the sharing of the information is redundant and ineffectual. Many home buyers have already provided similar (if not more) information to their loan officer so as to be issued a pre-qualification letter. Additional concerns include the use of buyer financial information to during contract negotiations.

Times change, and it’s time to take home buyer financial information out of the hands of real estate agents. The argument that sellers want to see the buyer’s ability to purchase is antiquated. Today, mortgage originators are licensed and take seriously approvals that are issued because consumers may have recourse; the loan officer usually performs a minimal level of due diligence.

Mortgage originators are required to undergo a federal and state criminal background checks for licensing. Additionally, lenders offer training on managing and disposing sensitive personal information; many lenders offer secure means of electronic transmission of sensitive data. Chances are that the agents involved in your transaction did not undergo a recent background check, much less the seller. But if you are asked to complete said form, you are expected to trust those who may handle and view it.

Additional problems that can occur when presented with the Buyer’s Financial Information Sheet include the compulsion by listing agents and home sellers to underwrite the buyer’s mortgage; they may indulge in deciding whether or not the buyer is mortgage worthy when they may be unqualified to do so. Additionally, listing agents and sellers are tempted to use the buyer’s financial information in negotiations; misguided sellers may regrettably lose a deal when they are told to hold out for a higher price from a buyer who may walk away from negotiation.

Protect home buyers and sellers: retire or change the Buyer’s Financial Information Sheet. Cash buyers can still provide proof of funds to purchase, while other buyers can provide a lender’s letter along with a “Buyer’s Financial Affidavit” that certifies that all information provided to their lender is accurate.

Original published at https://dankrell.com/blog/2013/08/21/home-buyers-privacy-an-argument-to-retire-the-financial-information-sheet/

By Dan Krell
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August 16, 2013July 3, 2019

Challenges of selling a home during the summer

If you were selling your home several years ago, you might have been thinking of ideas how to attract home buyers to your home. Even though the feeling today is such that you don’t have to do much to sell your home, some home sellers are shocked to find out that there is more to selling today than just putting a sign up in the yard – and summertime selling poses additional challenges.

First, get the price right. As I wrote earlier this year, pricing a home is extremely important even when there appears to be a positive selling cycle. Even though you decide on the list price, you have to be realistic about your home’s value; your real estate agent can assist you in deciding on a list price by preparing a market analysis with recent (within the last six months) neighborhood homes that are comparable to yours.

Next, remember that de-cluttering is the foundation to your home’s presentation. Whether you are a pack rat or a neat freak, chances are that your home could use some de-cluttering. De-cluttering shouldn’t be thought of as getting rid of everything you don’t need in the home, but instead could be thought of as a way to neutralize and free up space to allow home buyers to imagine how they could live in the home.

Another factor to consider during a summer home sale is your home’s curb appeal. The basics of curb appeal include attending to the home’s landscaping and grading, siding, deck, driveway and sidewalks.

We tend to get lazy about tending to the yard during the hot and humid summer months; however, if you’re planning a summer sale, it is not the time to let the lawn and weeds overgrow. Simple landscaping can make your lawn appear manicured. Trees properly trimmed away from the home will allow your home to be seen from the street as well as not be “crowded” by overhanging limbs. Neatly trimmed and properly placed shrubs and flower beds will not only look beautiful, it will enhance your home’s façade. Also, check that the grading around your home diverts storm water away from the foundation. Hiring a professional landscaping company to tend to your yard is the way to go if the heat and/or activity pose a health hazard.

Take a close look at the exterior of the home. If the exterior does not need painting, look for areas that may be peeling or bare. Decks, fascia boards and window trim are often made of wood and typically need more attention (even if your siding is made of brick or artificial materials). Consider having the deck and siding power washed to remove dirt, algae or mold. Additionally, resealing the deck and other exterior wood trim enhances the home’s curb appeal.

Sidewalks and driveways are often given the short shrift. Cracked sidewalks and driveway are not only unsightly, they can also be a trip hazard. Repairing and/or sealing the walkways and driveway can not only increase safety – it can improve the appearance of your home.

Finally, how cool is your home? An air conditioning system that does not keep your home cool is a buyer deterrent – especially in the hot summer months. If you don’t have the air conditioning system serviced on a regular basis, you should consider doing so before listing your home this summer.

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by Dan Krell
Copyright © 2013

This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws.

July 25, 2013July 1, 2019

When is best time to sell a home

Buyers aren’t the only ones looking for a deal. Home sellers are also looking for a good deal – which means they want to sell their home for the most money. As it seemed as if the housing market had strong sales this year, some sellers are still trying to decide the best time to sell. But unfortunately, timing the market may not be as easy as it seems.

Some say that spring is the best time of year to list and sell a home, while others believe that summer is better. Old time real estate agents will tell you about a time when there was a traditional selling season, which basically started in March and ran through June. In recent history, it seems as if the boom/bust market from 2005-2008 rewrote those rules. During the “go-go” market, the spring selling season couldn’t start early enough; home buyers made their New Year’s resolutions and shook off the winter fog in early January to begin their home search. For several years, it seemed as if home buyers started their real estate searching earlier each year to stake their claims on real estate before other buyers got wind of the listing.

However, once the bubble busted, home buyer activity significantly slowed, those who wanted to buy a home became increasingly methodical about their purchase as well as starting their search later in the year. It seemed as if the best time to list and sell shifted from the spring time to summer months.

Since the downturn of the housing market, sales activity peaked in the summer months. June has been a consistent contender for year high sale totals – until this year. The July 22^nd news release from the National Association of Realtors® (realtor.org) indicated that June sales “slipped” about 1.9% from May. Granted, June’s sales are significantly higher than June of 2012, but the slowdown may just be a fluke or an indication of something else.

Maybe the combination of increased inventory (NAR reported that housing inventory was slightly elevated from May to about a 5.2 month supply) along with rising mortgage rates (Freddie Mac’s June national average commitment rate for a 30-year fixed rate mortgage rose to 4.07%) is making home buyers pause.

And surely home prices are making buyers have second thoughts; bargain hunters are having difficulty finding bargains. June’s national median existing home sale price increased 13.5% compared to last June. Distressed home sales, foreclosures and short sales that typically sell at lower prices, accounted for 15% of June’s figures (compared to last June’s 26%) and are at the lowest levels since 2008. And although it may sound like great news, the double-digit jumps in the average home sale price may be a statistical artifact due to declining distressed home sales.

If you’re waiting to list your home for sale this year, you may have mistimed this year’s market.

Research has demonstrated that attempting to time the market may not always yield the best results – timing the market is much easier in hind sight. Market timing appears to be much more than looking at selling activity cycles. You should rely on the expertise of your real estate professional for neighborhood sales data and trends to assist you in deciding the price and the timing of listing and selling your home.

This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws.

By Dan Krell
Copyright © 2013

July 5, 2013November 23, 2021

Home staging for a home sale

by Dan Krell © 2013
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As the real estate market is emerging and more homes are listed for sale, staging a home is once again becoming a popular topic of conversation. Home staging is often thought of as a fancy name for decorating or cleaning a home prior to it being sold. In fact, “home staging” is a term that is used to describe the process of preparing your home for sale that goes beyond normal maintenance. The purpose of “staging” is to make your home as appealing as possible to potential home buyers so your home can sell quickly. Surveys conducted by the Accredited Staging Professionals a (StagedHomes.com) and Homegain (Homegain.com) indicate that staged homes sell faster than non-staged homes.

Although home staging has been around for over thirty years, it only gained wide acceptance this last decade. Many home staging techniques are derived from interior design; home stagers often sketch rooms to analyze the best use of space.

Staging your home’s exterior is just as important as staging the interior because a home buyer’s mood is set by their first impressions. You should consider the condition of your home’s landscape, façade, roof and gutters. Unkempt flower beds and cracked walkways can quickly give the impression that the home is in disarray. Additionally, missing shingles and misaligned gutters give the impression that the home has been poorly maintained.

The basics of home staging include de-cluttering, rearranging, and sometimes redecorating. Home sellers often have tunnel vision about their homes. Removing the clutter of your daily life from your home is the cornerstone to home staging. De-cluttering goes beyond cleaning and storing unused items. Because home buyers can get distracted by the home seller’s lifestyle when viewing a home, home stagers talk about “depersonalizing” a home.

You may have spent years making your home personal to your lifestyle, however now that you are selling it you need to depersonalize it. Depersonalization means to neutralize your home by removing as much of your lifestyle as possible from the home so anyone can feel as if this could be their home. Personal items, such as family photos, can focus the home buyer’s attention on your lifestyle and away from the home.

Additionally, the layout of each room needs to be considered so it feels bright and roomy. Properly placed furniture can assist home buyers to feel at ease and “at home.” Too much furniture in any room tends to make a large room look small and feel cramped. Additionally, misplaced furniture can make a room feel awkward and unsettling.

Let’s face it, sometimes a room needs a makeover. However, redecorating does not have to be an expensive affair. Sometimes having an extra lamp or even painting a wall can make the difference between shabby and chic. If your furniture is out of date or in poor condition, inexpensive furniture rentals can be a short term solution.

If your home vacant, staging each room tastefully can possibly facilitate a sale. An Appraisal Institute study indicated that a decorated home sells faster than an empty home.

Although many real estate agents have been certified in home staging, professional home stagers usually have a background in interior design. The International Association of Home Staging Professionals (IAHSP.com) is a source of information about home staging, including tips on staging your home as well as finding a home staging professional.

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published the week of July 1, 2013 (Montgomery County Sentinel). Using this article without permission is a violation of copyright laws. Copyright © 2013 Dan Krell.

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by Dan Krell © 2013
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