To many times I come across listings that have the phrase "seller willing to give X amount in "allowance toward (fill in the blank)". What does that say about your listing? Are you doing your listing justice by writing that in there? Is your seller portraying the home in a negative light?
The first thing I think of when I see that is the home needs work. Most times the allowance is designed toward carpet or appliances. However; since the seller cannot actually give you money at the closing table what good does it do to advertise you are willing to give X amount in allowance for floors, paint or aplliances? Why would the seller not jsut price the home accordingly to the condition of the house and let the buyer decide if the work is worth it or not?
A lot of buyers today are looking for homes that are in move in ready condition. By that; unless the price is below market value they want a home that needs little to no work when they move in. So, the question remains are you doing your listing justice by writing that in the remarks section. Are buyers automatically bypassing the home? Most buyers today are asking the seller for concessions on closing costs already. So, they have saved enough money for the downpayment and maybe a little extra for some paint and moving expenses. But do they really have enough money to do the additional updating you are asking for? Probably not.
When you start to write allownace in your remark sections it portays the home immediately in a negative light. I talked with a few buyers who looked at homes online with that phrase in it and they said the first thing they thought of was the home was not cared for or outdated. It could be something simple as not having the time or the money to finish it...yet, it is viewed in a different light among buyers.
I tend to tell sellers adjust their price accordingly to the condition of the house. Let the buyers make an offer knowing the home needs X amount of updating. What you may think is horrible might be a gem to someone else. You do nto know what the buyer feelings are going to be when they walk in the house. If it is priced according to the condition and updating inside the house then the house will sell... Buyers know if a home is priced below market value for the neighborhood there is some work to be done to the house. But,you may never get them in the house to begin with by putting in an allowance for something and keeping your price up to offset the allowance.
Price your home accordingly to the condition of the home and the neighborhood comparables and let the buyer decide if it is something that needs to be done NOW or can wait...You never know your home may sell sooner than later.
Dave dicecco
Realtor/Broker
www.davedicecco.com
Friday, March 4, 2011
Thursday, March 3, 2011
Is Your Realtor Marketing Proximity To Stores?
I have noticed a tend recently with buyers I am searching for homes for. They are realizing there are choices out there and sometimes it can be overwhelming considering the options that are availble to them. So, in addition to the standard amount of bedrooms, bathrooms, square footage and schools buyers are starting to ask proximity to shopping and restaurants. As we become more conscious of our surroundings; convience is starting to become a factor in our already hectic lives.
The funny thing is we always talk about how close certain places are to major highways for commuting or distance to major uptown business areas. We know that is a factor in the business professional life when choosing a home or even in considering certain areas. But, do we take into account the convience to walmarts, targets, shopping, restaurants, strip malls? How important is it ot buyer's today? Or do we just figure the buyers looking in that area already know?
Well I found an article talking about this. They surveyed 1000 home buyers. Over 75% of them said it was as important for them to have convience to stores and resturants as it was for them in terms of commuting time. That is a large percentage of buyers. of those 75% over 90% did a drive through the area checking for stores and convience before deciding to look at the house.
As buyers have many choices today. What separates them from purchasing your home over one in another neighborhood? If all is equal it could be the convience to stores. Yet, most Realtors do not advertise that or make any mention of it when marketing a home today. With over 90% of all home buyers starting their search online; this information could be the factor that makes them decide to look at your home and possibly purchase it....
Dave diCecco
Realtor/Broker
www.davedicecco.com
The funny thing is we always talk about how close certain places are to major highways for commuting or distance to major uptown business areas. We know that is a factor in the business professional life when choosing a home or even in considering certain areas. But, do we take into account the convience to walmarts, targets, shopping, restaurants, strip malls? How important is it ot buyer's today? Or do we just figure the buyers looking in that area already know?
Well I found an article talking about this. They surveyed 1000 home buyers. Over 75% of them said it was as important for them to have convience to stores and resturants as it was for them in terms of commuting time. That is a large percentage of buyers. of those 75% over 90% did a drive through the area checking for stores and convience before deciding to look at the house.
As buyers have many choices today. What separates them from purchasing your home over one in another neighborhood? If all is equal it could be the convience to stores. Yet, most Realtors do not advertise that or make any mention of it when marketing a home today. With over 90% of all home buyers starting their search online; this information could be the factor that makes them decide to look at your home and possibly purchase it....
Dave diCecco
Realtor/Broker
www.davedicecco.com
Wednesday, March 2, 2011
What Do Your Remarks Say About Your Home?
In this ever competing housing market, home sellers are looking for something to separate them from the competiton. As Realtors we are looking for ways to drive traffic to our listings; knowing that if someone would go inside and look at the house it would sell itself. The question we all wrestle with on a daily basis is how to effectively do that.. One way to separate your home from other similiar homes is what your Realtor writes in the remarks section about your home.
The other day, I had sent a client a list of homes through the Multiple listing service that met their criteria in a home. Out of the10 homes that I sent him; he called and said there was one in particular he wanted to see. Now, you would normally say it was priced way below market value or the photos stood out on the house. Well, neither was true. The home was priced slighlty below market value for the area based on the condition that the home was marketed and there was only ONE photo (and it was not flattering for the house). So, why did he want to go and look at the house? The remark section.
The Realtor wrote a one sentence remark for the house. It read "home was "cannabilized" inside & outside, and needs extensive repairs. Indoor pool in basement. Contact listing agent for more information". That was it. My buyer was so intrigued by the phrase cannabilized he had to see it for himself. The house had been on the market for a few days and when I talked with the listing agent prior to showing the house, he told me that he already had 7 showings. Well, when we went and looked at the house, there was one other Realtor there already and 2 other Realtors with clients showed up during our tour of the home. Talking with each of them, we all had the same response.... Our clients wanted to know what "cannabolized" looked like inside.
The home (for the record) was not that bad inside. In fact, the overall condition of the home was liveable and though some reapirs needed to be done to move in; the home was not in a condition I expected to see it in. Now, I suspect that the Realtor will recieve an offer on this home shortly if not multiple offers...Too many people viewed the house; and the ones there with us yesterday were there an extensive amount of time as well.
What this Realtor did was create an atmosphere where he let the imagination of the buyer decide what the home looked like inside and had to go and look at the house.. his choice of a key phrase and wording placed this home on the top of the list for people looking in that area and price range. i would not recommend using the word "cannabolized" unless the home warranted it. But there are many other adjectives out there that can describe a home and separate it form what everyone else is writing in their comments to separate your home form the competitiors...
So, what are the remarks saying about your home?
David diCecco
Realtor/Broker
www.davedicecco.com
The other day, I had sent a client a list of homes through the Multiple listing service that met their criteria in a home. Out of the10 homes that I sent him; he called and said there was one in particular he wanted to see. Now, you would normally say it was priced way below market value or the photos stood out on the house. Well, neither was true. The home was priced slighlty below market value for the area based on the condition that the home was marketed and there was only ONE photo (and it was not flattering for the house). So, why did he want to go and look at the house? The remark section.
The Realtor wrote a one sentence remark for the house. It read "home was "cannabilized" inside & outside, and needs extensive repairs. Indoor pool in basement. Contact listing agent for more information". That was it. My buyer was so intrigued by the phrase cannabilized he had to see it for himself. The house had been on the market for a few days and when I talked with the listing agent prior to showing the house, he told me that he already had 7 showings. Well, when we went and looked at the house, there was one other Realtor there already and 2 other Realtors with clients showed up during our tour of the home. Talking with each of them, we all had the same response.... Our clients wanted to know what "cannabolized" looked like inside.
The home (for the record) was not that bad inside. In fact, the overall condition of the home was liveable and though some reapirs needed to be done to move in; the home was not in a condition I expected to see it in. Now, I suspect that the Realtor will recieve an offer on this home shortly if not multiple offers...Too many people viewed the house; and the ones there with us yesterday were there an extensive amount of time as well.
What this Realtor did was create an atmosphere where he let the imagination of the buyer decide what the home looked like inside and had to go and look at the house.. his choice of a key phrase and wording placed this home on the top of the list for people looking in that area and price range. i would not recommend using the word "cannabolized" unless the home warranted it. But there are many other adjectives out there that can describe a home and separate it form what everyone else is writing in their comments to separate your home form the competitiors...
So, what are the remarks saying about your home?
David diCecco
Realtor/Broker
www.davedicecco.com
Tuesday, March 1, 2011
how To Successfully Sell Your Home Through A Short Sale
You have had an experince happen in your life that has led you to need to sell your home. You have realized that what you owe on the home is greater than the value of the home. Therefore you are considering doing a short sale with the bank that holds your mortgage. What can you do to successfully navigate the process?
First, is immediately contact the lender who has your mortgage and request a short sale packagae. Most lenders have a department that is set up to handle these situations when you call. Some will mail them out to you immediately, others will e-mail and some have them electronically online for you. Once you receive the package, fill it out completely.
Second, interview and hire a Realtor to handle the short sale marketing and selling of your home for you. I always recommend talking to at least THREE different people and seeing what they feel you should price the house at, how they are going to market the home and that they have dealt with short sales or are comfortable dealing with them.
Third, pricing of your home. The reason I say talk to three different Realtors is that you may get three different prices on your home. Ask what their pricing strategy is. If a Realtor is signifcantly below market value the chances are great that they are not going to do you a favor. You will get a lot of activity and an offer that will be rejected from the bank...and probably back to square one. All Realtors have different takes on pricing strategy. But, one constant is if you are starting well below market value you are hindering your chances of a successfully negotiated short sale.
Fourth, photos of your home. Just because you are selling your home through a short sale does not mean you do nto need photos of the house.With over 90% of people starting their search online photos are critical for buyers to determine if they want to even look inside of your home or not. Too many times I see short sales with one or a couple of exterior photos and nothing else. You are not doing your self justice or helping to get your home sold by not having photos of the inside of the house taken.
Fifth, make your home accessable. Do not put unrealistic limittions on showings. The more accessable your home is the greater the chance of it getting sold. By refusing showings you are turning off buyers. You may have the occassionaly buyer driving through the area with their Realtor and all of sudden wants to look at your home...if possible let them. That could be the one family that buys your house.
Sixth, make sure your home is always is showable condition. You want to ensure your home is showing at it's best during all showings. Keep the place extra tidy and clean and ensure that it is properly staged for showing at all times.
Last, the most important part of this is when you do receive an offer. Negotiate in good faith. You, NOT the bank, is signing off on the house and the deal. The banks is only deciding if the negotiated price is acceptable to them and the market value out there. And when you do receive an offer and submit it to the bank for approval, have your paperwork ready. The bank will be asking you for updated financial information once they receive the offer...The longer you delay in getting the items to them the less chance you have of the buyer waiting on the bank...Time in this case is of the essence....
These may not be all inclusive steps. However; this is a general outline of how to get your home on the market and sold through a short sale process to avoid the F word (foreclsoure).
David diCecco
Realtor/Broker
www.davedicecco.com.
First, is immediately contact the lender who has your mortgage and request a short sale packagae. Most lenders have a department that is set up to handle these situations when you call. Some will mail them out to you immediately, others will e-mail and some have them electronically online for you. Once you receive the package, fill it out completely.
Second, interview and hire a Realtor to handle the short sale marketing and selling of your home for you. I always recommend talking to at least THREE different people and seeing what they feel you should price the house at, how they are going to market the home and that they have dealt with short sales or are comfortable dealing with them.
Third, pricing of your home. The reason I say talk to three different Realtors is that you may get three different prices on your home. Ask what their pricing strategy is. If a Realtor is signifcantly below market value the chances are great that they are not going to do you a favor. You will get a lot of activity and an offer that will be rejected from the bank...and probably back to square one. All Realtors have different takes on pricing strategy. But, one constant is if you are starting well below market value you are hindering your chances of a successfully negotiated short sale.
Fourth, photos of your home. Just because you are selling your home through a short sale does not mean you do nto need photos of the house.With over 90% of people starting their search online photos are critical for buyers to determine if they want to even look inside of your home or not. Too many times I see short sales with one or a couple of exterior photos and nothing else. You are not doing your self justice or helping to get your home sold by not having photos of the inside of the house taken.
Fifth, make your home accessable. Do not put unrealistic limittions on showings. The more accessable your home is the greater the chance of it getting sold. By refusing showings you are turning off buyers. You may have the occassionaly buyer driving through the area with their Realtor and all of sudden wants to look at your home...if possible let them. That could be the one family that buys your house.
Sixth, make sure your home is always is showable condition. You want to ensure your home is showing at it's best during all showings. Keep the place extra tidy and clean and ensure that it is properly staged for showing at all times.
Last, the most important part of this is when you do receive an offer. Negotiate in good faith. You, NOT the bank, is signing off on the house and the deal. The banks is only deciding if the negotiated price is acceptable to them and the market value out there. And when you do receive an offer and submit it to the bank for approval, have your paperwork ready. The bank will be asking you for updated financial information once they receive the offer...The longer you delay in getting the items to them the less chance you have of the buyer waiting on the bank...Time in this case is of the essence....
These may not be all inclusive steps. However; this is a general outline of how to get your home on the market and sold through a short sale process to avoid the F word (foreclsoure).
David diCecco
Realtor/Broker
www.davedicecco.com.
Monday, February 28, 2011
Communication Is Key In Short Sales
In the ever growing market of short sales one variable that seems to elude Realtors is communication. In order for the deal to eventually close communication is vital for both the seller and the buyer. Why? The timeline in a short sale can be from an average of 45 days to months.
I always beleive in communicating once a week with buyer's agents to keep them abreast on the process with the short sale. In this market especially where we are in a buyer's market and the choices they have to chose from being so great communicating on a regular basis is vital to keep a deal from falling apart.
Without proper communication the window of doubt opens even more with a buyer as to whether the bank will accept their offer on the short sale.If you place yourself in the buyer's position you want to know what is happening and how the paperwork is moving along. For some buyers, it is a matter of time. For others it is doubt of whether the bank will accept the short sale. But in most cases it si the unknown that drives buyers away.
This topic came to light for me recently when a prospective seller e-mailed me about listing their home. They told me it was a short sale and where the home was located. Asked if I worked that area and if I could help them out with getting their home sold before it went to foreclosure. I responded within an hour of receivng the e-mail from them. Upon meeting with them they disclosed to me that they had sent this out to five different agents from different companies and that during the time we met I was one of only 2 agents to repsond back to them. (for the record we set up the meeting three days later). The other agent took 2 days to respond to them. They wanted me to list the house for them. When I asked what was the factor that made them chose me over someone else they told me it was my response time. They had the home on the market with another agent for over seven months with a couple of offers on the house. Both buyers walked away from the transaction prior to an agreement with the bank. Somehow, the found out it was becuase they never heard form the lsiting agent as to the status of the short sale offer with the bank. One agent went as far as to tell them they would repeatedly e-mail the agent to get no response or working on it response days later. They felt the agent was not doing what was needed to help them get the house sold to avoid foreclosure.
Unfortuantely, dealing with short sales has become more the norm than the exception today in the Real Estate market. Becuase of that I actually sympathized with them and understood their plight. They wanted an agent they felt would communicate with them and the buyer's agent on a regular basis to ensure that when a reasonable offer was presented that the agent would do everything possible to ensure it stayed together and closed. They felt one of the two offers would have closed had the agent communicated with the buyer's agent on a more regular basis.
If you are thinking of selling your home on a short sale or buying a home on a short sale; consider the communciation process. It could make the difference between your home being sold and foreclosed. On the buyer's end it can be the difference between getting the home you want or settling. It is hard enough knowing you may have to wait 45 days or longer to get a repsonse from the bank. Not having your agent communicate on a regular basis justs opens that door a little wider for them to walk out of.
Dave diCecco
Realtor/Broker
www.davedicecco.com
I always beleive in communicating once a week with buyer's agents to keep them abreast on the process with the short sale. In this market especially where we are in a buyer's market and the choices they have to chose from being so great communicating on a regular basis is vital to keep a deal from falling apart.
Without proper communication the window of doubt opens even more with a buyer as to whether the bank will accept their offer on the short sale.If you place yourself in the buyer's position you want to know what is happening and how the paperwork is moving along. For some buyers, it is a matter of time. For others it is doubt of whether the bank will accept the short sale. But in most cases it si the unknown that drives buyers away.
This topic came to light for me recently when a prospective seller e-mailed me about listing their home. They told me it was a short sale and where the home was located. Asked if I worked that area and if I could help them out with getting their home sold before it went to foreclosure. I responded within an hour of receivng the e-mail from them. Upon meeting with them they disclosed to me that they had sent this out to five different agents from different companies and that during the time we met I was one of only 2 agents to repsond back to them. (for the record we set up the meeting three days later). The other agent took 2 days to respond to them. They wanted me to list the house for them. When I asked what was the factor that made them chose me over someone else they told me it was my response time. They had the home on the market with another agent for over seven months with a couple of offers on the house. Both buyers walked away from the transaction prior to an agreement with the bank. Somehow, the found out it was becuase they never heard form the lsiting agent as to the status of the short sale offer with the bank. One agent went as far as to tell them they would repeatedly e-mail the agent to get no response or working on it response days later. They felt the agent was not doing what was needed to help them get the house sold to avoid foreclosure.
Unfortuantely, dealing with short sales has become more the norm than the exception today in the Real Estate market. Becuase of that I actually sympathized with them and understood their plight. They wanted an agent they felt would communicate with them and the buyer's agent on a regular basis to ensure that when a reasonable offer was presented that the agent would do everything possible to ensure it stayed together and closed. They felt one of the two offers would have closed had the agent communicated with the buyer's agent on a more regular basis.
If you are thinking of selling your home on a short sale or buying a home on a short sale; consider the communciation process. It could make the difference between your home being sold and foreclosed. On the buyer's end it can be the difference between getting the home you want or settling. It is hard enough knowing you may have to wait 45 days or longer to get a repsonse from the bank. Not having your agent communicate on a regular basis justs opens that door a little wider for them to walk out of.
Dave diCecco
Realtor/Broker
www.davedicecco.com
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