Tag: home seller

Posted on

Handling home buyer feedback

home buyer feedbackYou’ve spent months preparing your home by de-cluttering, painting, and maybe even making renovations; the last thing you want to hear are objections from home buyers why the home is not suitable for them. Obviously, you’ve had years of enjoyment and you’re thinking about all the benefits the home offers. However, getting honest home buyer feedback when they visit your home is invaluable information to help get your home sold.

Asking for home buyer feedback is one of the tasks that your agent performs throughout the listing period. However, soliciting feedback from agents who bring buyers to your home is often hit or miss; although many agents offer good and honest feedback, just as many don’t respond (for various reasons) to feedback requests unless their buyers are interested in the home. Additionally, home buyer feedback is solicited when they visit open houses and includes questions such as: “What do you find most appealing about the home?”; “What do you find least appealing about the home?”; and “Is the home priced right?”

Ok, it’s nice to hear the good things people have to say about your home; these are obvious benefits and what others find appealing. Buyers may list various home features, upgrades, and/or renovations as appealing or beneficial; but it is also important to put weight on the negative feedback too. All the de-cluttering and neutralizing can make a home look good, but it may not change home features that do not fit other’s needs. Likewise, making cosmetic and minor repairs also increases your home’s appeal; but may not make obsolete systems acceptable.

One of the most common pieces of feedback you might encounter is about the home’s price. Since home buyers typically view similar homes, you get perspective about how you priced your home compared to other similar homes. If there is overwhelming feedback that the home is overpriced, then you should consider reviewing additional comps with your agent and correct the price as needed. It is also not uncommon that buyers may feel that the home is priced well, but for various reasons they are not interested in making an offer.

Keep in mind that the feedback you will receive is subjective and offered from various points of view, so don’t be surprised with seemingly contradictory objections from different home buyers. Some objections can be addressed readily while others cannot.

For example, objections about the size and/or location of the home or yard are not easily overcome; and it may be that buyers offering such objections are looking at the wrong home. However, objections about shabby flooring or lack of updates can be addressed by either taking action or changing the list price to reflect the home’s condition.

Sometimes in pushing their client’s limits, home buyer’s objections may actually be a commentary on their limitations rather than the home’s attributes. In the hopes of getting a great deal, buyers are taken to view homes that are out of their price range and/or in need of updates they cannot make.

Buyer and agent feedback is the easiest way to gauge how your home is positioned in comparison to your competition on the market. Clearly, the home’s positive attributes and benefits should be highlighted as these items would be appealing to home buyers. However, buyer objections should also be considered and addressed if possible to help facilitate a sale.

Original located at https://dankrell.com/blog/2013/05/31/handling-buyer-feedback-and-objection-for-home-sellers/

By Dan Krell

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. Copyright © 2013 Dan Krell.

Posted on

Don’t delay home maintenance

by Dan Krell © 2013
Google+
DanKrell.com

Take action – consequences of deferred maintenance can hurt home sale.

Home MaintenanceAs we slowly emerge from one of deepest recessions that has hit in generations, one of the top issues facing home owners (especially those who plan a home sale) is deferred maintenance.  Although a lack of financial resources could be a main reason for postponing repairs and/or regular maintenance, other reasons for doing so may include a home owner’s lack of time as well as a home owner’s psycho-social issues getting in the way of carrying out maintenance (as in the case of severe hoarding).

Deferred maintenance in a home is simply putting off repairs and timely upkeep of its systems.  Delaying maintenance may turn today’s minor repair into tomorrow’s major problem.  Of course not all minor repairs turn into major issues, but even minor issues can be a nuisance.

Preventative maintenance can help prevent the elements from entering the home.  If delayed, issues can develop and affect other home systems.  Maintaining caulking and seals around windows and doors as well as flashing on roof components can prevent water penetration into the home.  Putting off repairs may allow water leaks, which can seep through walls and ceilings deteriorating drywall and even possibly weakening floor trusses/beams.  Openings in seals and caulking may also allow pests to enter the home, which can also create additional issues if not addressed.

Many home owners do not pay much attention to the exterior because they spend most of their time indoors.  The roof, gutters, and downspouts are often neglected due to a lack of awareness; many home owners don’t often check these systems and usually put faith in that they are doing their intended job.  Home owners may not even know there is a problem with these systems until it’s too late.  Water penetration from these systems can not only create problems as described above, but if left unchecked can also create problems in the basement and foundation.

Water does not have to penetrate from the exterior to create problems, it can originate from unrepaired plumbing leaks as well.  In addition to causing staining on walls and ceilings, plumbing leaks if left unattended may likewise, weaken floors.

Another regular maintenance item that is not often performed is HVAC servicing.  Ideally, a home’s furnace and air conditioning system should be serviced in spring and fall.  Regular servicing of the HVAC systems can not only possibly extend the systems’ life but also can help identify safety issues (such as carbon monoxide leaks in some systems).

Home MaintenanceDeferred maintenance issues often decrease a home’s value and can prevent a home from selling for top dollar; sometimes preventing a home from selling at all.  If you’re planning a sale and recognize that there may be deferred maintenance issues, you might ask your agent about having a pre-sale home inspection or home audit to determine the home’s condition and urgent repairs.  Your agent can provide guidance on repairs and pricing your home.

If you’re like many home owners, you might have deferred maintenance on your home.  Some experts recommend a “home audit” to determine your home’s condition.  It’s never too late to start budgeting for home maintenance; to meet regular and emergency maintenance needs, some experts recommend an annual savings of one to three percent of the home’s value. Planning ahead can make home maintenance easier as well allow you to make informed decisions to possibly lower your maintenance costs.

More news and articles on “the Blog”
Protected by Copyscape Web Plagiarism Detector
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 May 6, 2013. Using this article without permission is a violation of copyright laws. Copyright © 2013 Dan Krell.

Posted on

Hybrid housing market not for the squeamish

real estate trendsA “hybrid” housing market is has a little bit of everything. There are the multiple offers and escalation clauses, as well as the homes that sit idle for days (both could be on the very same block!); buyers willing to pay more than list and those offering less. The result is frustration among buyers and sellers who are disappointed by not having their expectations met; and even a few real estate agents are losing their cool. What is becoming increasingly apparent is that the current housing market is not for the squeamish!

Although few home owners are venturing to list their homes, those who do may be seeking a premium price; most likely due to the optimism permeating the air. Furthermore some are expecting the prize of getting multiple offers with escalation clauses. Owners of homes that do not sell within the first week of listing are anxiously wondering, “Why hasn’t my house sold yet?”

The flip side is that although home buyers are plentiful (compared to the current home inventory), there still seems to be many home buyers who seek to buy a home at a 5%+ discount. Unlike the “bargain hunter,” many of these home buyers are more concerned with future home resale (which may be indicative of a lack of confidence in the future housing market).

Pressure on home buyers and sellers is likely originating from reports of bubble activity pockets that seems to be popping up, and recent home price indices that indicate increasing national average home prices. Regardless, there appears to be a lack of symmetry among home sales as well as a lack of consistency among home buyers and sellers.

So if you’re planning a home sale or purchase, what are you to make of this? You should understand that national home price indices are comprised of multiple regions, and much of the national home price increase is due to regions that had the highest home price declines over the last six years, as well as a few pockets of very hot activity (unlike the home price climb during 2004-2006, which was mostly due to high confidence in the housing market, easy credit, and a much different economy). Likewise, the Metro DC region is microcosm of the national picture, such that it is comprised of a number of counties that realized double digit home price decreases, as well as a few pockets of hot activity.

To add some perspective to local market trends, the average days-on-market of a home in Montgomery County is roughly 60 days (depending on the source). Additionally, Montgomery County single family home data compiled by the Greater Capital Area Association of Realtors® (gcaar.com) indicated that median and average single family home price decreased year over year for the last three consecutive months. And while the number of homes listed continues to decline, the number of pending home sales (homes under contract) has also declined in March year over year, as well as year to date.

Getting into the market requires solid data, a strategy, and an open mind. If you’re selling: consult with your agent about recent neighborhood prices; and stay informed of all activity, as it could be your cue to decisions made on the sale. If you’re buying: in addition to discussing comp data, you should consult with your agent about a strategy to deal with competition from other home buyers.

Protected by Copyscape Web Plagiarism Detector

By 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.

Posted on

Get out of your way and negotiate to win

by Dan Krell © 2013
Google+
DanKrell.com

Self defeating attitudes can  interfere with your negotiating tactics; so get out of the way and negotiate to win.

negotiating tacticsWhat seems like many years ago, I read a book titled “Get Out of Your Own Way: Overcoming Self-Defeating Behavior” by Mark Goulston and Philip Goldberg. If you don’t get the gist of the book by its title, the book describes how people can become obstacles to their own success. And although the book was about personal growth, the premise can apply to self defeating attitudes brought forward during negotiating a real estate transaction.

Obviously, the purpose to entering into a real estate transaction is to either buy or sell a home. However, buyers and/or sellers can sometimes become obstacles in their own path to success; they may lose sight of the bigger picture and can make poor decisions – especially in negotiating price, repairs, and other issues that may pop up throughout the process. For example, a home buyer who seeks a low priced bargain may become frustrated wondering why he is constantly outbid; while the home seller who insists on an unsupported high price might become disappointed when there are no offers.

It is common knowledge that “the first rule” of negotiation is to not be emotional. However, many decisions about buying and selling a home are often based on emotion; additionally, expectation and anticipation often influence home buyers and sellers. If emotions take over, the larger goal is often lost to a narrow focus on seemingly insignificant and petty matters.

Get out of your way by sticking to the facts. Armed with data and facts, there is less conjecture and you are more likely to be persuasive in your arguments. Additionally, concentrating on facts can also help you stay focused on the larger picture of buying or selling your home. For example, when pricing or making offers – use recent neighborhood comps and look for data driven market sales trends (rather than relying on what you hear on the news). Looking at all the facts can also help negotiate other items, such as home inspection repairs; having contractor estimates may assist in resolving an impasse.

Sometimes buyers and sellers go into a transaction with a “win-lose” attitude, where they expect that their position is always correct. Being “aggressive” towards your counterparts may seem the best way to get what you want; however, fighting for an uncompromising position may lead to all parties becoming inflexible and a transaction that does not close. In fact, being forceful and antagonistic about your offer may make others become ill tempered and even possibly hostile to further negotiation.

One of the definitive texts on warfare, “The Art of War” by Sun Tzu, has also been a guiding resource for top negotiators. “The Art of War” doesn’t talk about going to the enemy and forcing them “to eat steel.” Rather, it is a thoughtful treatise on dealing with people. The upshot is that the best way to “win” is to prevent war through positioning, data, and understanding of the counterpart. In other words, negotiating to get your way may require positioning of the facts and being persuasive (rather than approaching the transaction with a take it or leave it attitude).

Negotiating tactics are an often misunderstood part of the real estate process. Hire a savvy real estate agent to assist you in collecting data and persuasively presenting your position. For a successful transaction – get out of your way!

More news and articles on “the Blog”
Protected by Copyscape Web Plagiarism Detector
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 April 15, 2013. Using this article without permission is a violation of copyright laws. Copyright © 2013 Dan Krell.

Posted on

Your real estate agent’s experience is more important than you know

by Dan Krell © 2013
Google+
DanKrell.com

Why your real estate agent’s experience is more important than you think:

Real Estate AgentsThe National Association of Realtors (realtor.org) publishes an annual profile of home buyers and sellers that includes data and descriptions about how consumers go about choosing a real estate agent.  There are obviously many factors that are involved in the choice, but it is striking that an agent’s experience is not a major reason for their hire; it seems as if most buyers and sellers hire an agent who was referred by someone the consumer knew, and that many buyers and sellers did not talk to more than one agent.

Even though experience is not heavily weighted in agent choice, it may be one intangible that should be considered when you choose your real estate agent.  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 intuitive 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.  Data collected from their sample indicated that rookie agents sold homes for about 10% less than experienced agents, which according to their sample data yielded an average net difference of $18,000 (the average list price was $201,297).  Homes listed by “veteran” agents sell about 32% faster than inexperienced agents.  And, experienced agents are more likely to expedite the transaction to completion.

One possible explanation provided by the researchers is that the experienced agents are more likely to list higher quality property that typically sells faster and for more money.  Although they concede that they cannot substantiate this rationalization by this study, they suggest that veteran agents are more successful in obtaining luxury real estate and new home listings.

Real Estate AgentA more likely reason for differences between rookie and veteran agents is the mindset brought forward to the business of real estate.  The investigators discuss how those who consider selling real estate their career are more successful and have better outcomes for their clients than those who do not.  They also suggest that those who consider themselves as “part-time” agents are less likely to achieve as high of a result in their transaction as the full time counterpart; they contend that successful veteran agents are dedicated and devoted to their career.

Other possible reasons for their conclusions (but not discussed in the study) are that veteran real estate agents are more acquainted with the nuances of the housing market and have an increased ability to engage the parties in the transaction.  Full time agents are invested in being aware of listing and sale activity in their respective markets, and network with other agents to compare notes.  Additionally, experienced agents may have developed the ability to easily connect with home buyers and sellers; as well as have greater capacity to understand the specific needs of buyers and sellers – thus facilitating a smoother and successful transaction.

The business of real estate is increasingly complex and difficult.  Rapidly changing demands on home buyers and sellers can be challenging and frustrating for those in the market.  Your agent’s experience, both general and specialized, could make the difference in your success.

More news and articles on “the Blog”
Protected by Copyscape Web Plagiarism Detector
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 April 8, 2013. Using this article without permission is a violation of copyright laws. Copyright © 2013 Dan Krell.

Proudly powered by WordPress