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Help First-Time Sellers Through the Sale

Like rookie buyers, clients who are new to selling need extra hand-holding through the sales process.

Even the most steely-eyed sellers can get emotional when it’s time to list their home. It’s the place where they raised their children, gathered friends for annual holiday parties, or painstakingly executed their design vision over many years. The longer they have stayed in a home, the greater the challenges they may face getting up-to-date on the rules and regulations governing transactions. Those who have never before sold are, indeed, in uncharted territory. Here are suggestions for working with first-time sellers who may find the financial and legal complexities, as well as the emotional terrain, especially daunting.

First-time sellers who have never contended with buyer demands may not initially understand how neutralizing their home or adding small upgrades can make their property more competitive on the market. Using data to highlight comparable nearby homes and what they’re selling for is a good place to start, but make sure to explain how the data supports your argument. Andy Werner, abr, e-pro, associate broker at RE/MAX Realty Group in Gaithersburg, Md., says many first-time sellers don’t realize how minor repairs can elevate their property’s market value. Buyers typically expect a home to be in move-in condition, so sellers who choose not to upgrade could face a $10,000 to $15,000 price reduction, he says.

“I tell buyers that if you don’t fix up your house, the buyer will go around the corner and buy from someone who did—and they’ll pay $5,000 more,” Werner says. Such an explanation demonstrates market fundamentals to your clients and keeps them on track toward the closing table. The costs of modest repairs, such as repainting, installing carpet, and refinishing or replacing kitchen cabinetry, are often recouped at resale, Werner adds.

Selling After Decades of Owning

Some common seller issues become more difficult simply because of how long a first-time seller has lived in a home. Decluttering, for example, can be hard enough for someone who’s been in their home only five years. Imagine how challenging it is for sellers who have lived in a home for their entire adult life.

It’s not just emotional resistance they’re experiencing. First-timers may simply not be aware of how clearing out personal items improves the odds of a sale. Alice Chin, psa, a broker with Keller Williams Infinity in Naperville, Ill., recommends that sellers who have never dramatically decluttered their homes before do it in stages, clearing one room at a time. Slowing down the pace can ease the mental and emotional pressure involved in getting rid of personal items, she says, and once sellers see the results in one room, it can encourage them to continue working on the rest of the house. If your client needs more convincing, ask a professional home stager to weigh in, Chin says.

Patience Is a Virtue

All sellers benefit from practicing patience while waiting for the right buyer, but this is doubly true for those who are listing a vacation home in resort areas for the first time. They face different market dynamics than if they were selling a primary residence, says McKee Macdonald, a broker with Coldwell Banker Carlson Real Estate in the ski resort town of Stowe, Vt. Many of his clients who are new to selling are shocked to learn how long it can take to sell—an average of 250 days in his market. Some properties have languished for as long as five years, he says.

Therefore, first-time sellers require a higher degree of communication so they can be prepared for the realities of a niche market, Macdonald says. He explains that traditional marketing tactics such as open houses aren’t always effective because the number of skiers (who are prospective buyers) in town on weekends is unpredictable. Instead, he advises his clients to consider renting out vacation properties while they wait for a buyer. After all, selling a second home often isn’t urgent, and a seller’s motivation can change. “Some sellers say, ‘Throw it out there. If we get the price we want, great. If not, I’m still using it,’” Macdonald says.

Experienced Sellers Can Be Rookies

Even seasoned sellers can feel like newbies when market conditions have changed markedly since their last sale. A client who sold one property during a downturn may be ill-prepared for today’s tight-inventory environment and the stress of handling multiple offers. Though it’s a nice problem to have, it can still be overwhelming.

Ashleigh Fredrickson, sales associate at 8Z Real Estate in Denver, says the biggest challenge for sellers of all experience levels is determining which offers stand the best chance of holding up. In a strong seller’s market, buyers can get swept up in the heat of the moment and bid 10 percent over list price only to realize later they won’t be able to qualify for financing, she says. So it’s important to counsel sellers—particularly those who have never been in such a situation—that the highest bid isn’t necessarily the best. “You want to make sure you’re getting the most qualified buyer so that you’re not back out on the market again,” Fredrickson says.

She suggests using a spreadsheet to help sellers analyze competing bids, taking special note of any contingencies. Your clients need to understand that a higher offer with more contingencies may not be in their best interest. “Maybe the timeline is paramount, so the seller will sacrifice a couple of thousand dollars to ensure the deal is done by a certain time,” Fredrickson says.

Above all, directness and thorough education are what every first-time seller needs, Macdonald adds. When a sale isn’t going the way a seller had imagined it would, “you need to look for strategies to offset the negatives.” But always “give sellers the honest truth, and don’t sugarcoat it,” he says.

Credit to Judith Crown
 Judith Crown is a Chicago-based freelance writer specializing in business, government, and education.
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Help First-Time Sellers Through the Sale

Like rookie buyers, clients who are new to selling need extra hand-holding through the sales process.

Even the most steely-eyed sellers can get emotional when it’s time to list their home. It’s the place where they raised their children, gathered friends for annual holiday parties, or painstakingly executed their design vision over many years. The longer they have stayed in a home, the greater the challenges they may face getting up-to-date on the rules and regulations governing transactions. Those who have never before sold are, indeed, in uncharted territory. Here are suggestions for working with first-time sellers who may find the financial and legal complexities, as well as the emotional terrain, especially daunting.

First-time sellers who have never contended with buyer demands may not initially understand how neutralizing their home or adding small upgrades can make their property more competitive on the market. Using data to highlight comparable nearby homes and what they’re selling for is a good place to start, but make sure to explain how the data supports your argument. Andy Werner, abr, e-pro, associate broker at RE/MAX Realty Group in Gaithersburg, Md., says many first-time sellers don’t realize how minor repairs can elevate their property’s market value. Buyers typically expect a home to be in move-in condition, so sellers who choose not to upgrade could face a $10,000 to $15,000 price reduction, he says.

“I tell buyers that if you don’t fix up your house, the buyer will go around the corner and buy from someone who did—and they’ll pay $5,000 more,” Werner says. Such an explanation demonstrates market fundamentals to your clients and keeps them on track toward the closing table. The costs of modest repairs, such as repainting, installing carpet, and refinishing or replacing kitchen cabinetry, are often recouped at resale, Werner adds.

Selling After Decades of Owning

Some common seller issues become more difficult simply because of how long a first-time seller has lived in a home. Decluttering, for example, can be hard enough for someone who’s been in their home only five years. Imagine how challenging it is for sellers who have lived in a home for their entire adult life.

It’s not just emotional resistance they’re experiencing. First-timers may simply not be aware of how clearing out personal items improves the odds of a sale. Alice Chin, psa, a broker with Keller Williams Infinity in Naperville, Ill., recommends that sellers who have never dramatically decluttered their homes before do it in stages, clearing one room at a time. Slowing down the pace can ease the mental and emotional pressure involved in getting rid of personal items, she says, and once sellers see the results in one room, it can encourage them to continue working on the rest of the house. If your client needs more convincing, ask a professional home stager to weigh in, Chin says.

Patience Is a Virtue

All sellers benefit from practicing patience while waiting for the right buyer, but this is doubly true for those who are listing a vacation home in resort areas for the first time. They face different market dynamics than if they were selling a primary residence, says McKee Macdonald, a broker with Coldwell Banker Carlson Real Estate in the ski resort town of Stowe, Vt. Many of his clients who are new to selling are shocked to learn how long it can take to sell—an average of 250 days in his market. Some properties have languished for as long as five years, he says.

Therefore, first-time sellers require a higher degree of communication so they can be prepared for the realities of a niche market, Macdonald says. He explains that traditional marketing tactics such as open houses aren’t always effective because the number of skiers (who are prospective buyers) in town on weekends is unpredictable. Instead, he advises his clients to consider renting out vacation properties while they wait for a buyer. After all, selling a second home often isn’t urgent, and a seller’s motivation can change. “Some sellers say, ‘Throw it out there. If we get the price we want, great. If not, I’m still using it,’” Macdonald says.

Experienced Sellers Can Be Rookies

Even seasoned sellers can feel like newbies when market conditions have changed markedly since their last sale. A client who sold one property during a downturn may be ill-prepared for today’s tight-inventory environment and the stress of handling multiple offers. Though it’s a nice problem to have, it can still be overwhelming.

Ashleigh Fredrickson, sales associate at 8Z Real Estate in Denver, says the biggest challenge for sellers of all experience levels is determining which offers stand the best chance of holding up. In a strong seller’s market, buyers can get swept up in the heat of the moment and bid 10 percent over list price only to realize later they won’t be able to qualify for financing, she says. So it’s important to counsel sellers—particularly those who have never been in such a situation—that the highest bid isn’t necessarily the best. “You want to make sure you’re getting the most qualified buyer so that you’re not back out on the market again,” Fredrickson says.

She suggests using a spreadsheet to help sellers analyze competing bids, taking special note of any contingencies. Your clients need to understand that a higher offer with more contingencies may not be in their best interest. “Maybe the timeline is paramount, so the seller will sacrifice a couple of thousand dollars to ensure the deal is done by a certain time,” Fredrickson says.

Above all, directness and thorough education are what every first-time seller needs, Macdonald adds. When a sale isn’t going the way a seller had imagined it would, “you need to look for strategies to offset the negatives.” But always “give sellers the honest truth, and don’t sugarcoat it,” he says.

 

Credit to Judith Crown
Judith Crown is a Chicago-based freelance writer specializing in business, government, and education.

homes for rent, homes for sale,
homes for rent, homes for sale, newstarrealty.com
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Top 10 Amenities Renters Can’t Resist

To be a successful landlord, you need to give your tenants what they want.

Think of it this way: You wouldn’t want to be in the surfboard business in the Midwest, but you might in a Southern California beach community.

It’s the same for the landlord business. Buying rental property is only one part of the equation for success. If your property is as appealing as that Midwestern surfboard, it’s not doing you much good.

To be successful, you need to provide a rental product that people want to rent, and to be really successful, they should want to stay in it for as long as possible. Here are 10 things renters can’t resist.

1. Walkability

A great location means different things to different people. But if your rental property has a high Walk Score, a measure of a location’s walkability, it’s a safe bet you’ve got a good location.

There’s a shift in this country toward moving to urban areas, but not necessarily the traditional ones, such as New York City and San Francisco. Renters just want to walk to restaurants, shops, schools, parks, and entertainment, no matter which city they’re in.

A Walk Score between 50 and 100 means some or most amenities are within walking distance, and a score between 0 and 50 means the property is car dependent.

2. A Well-Maintained Place

One of the big advantages to being a renter versus a homeowner is that renters don’t have to worry about maintenance and repairs. That’s the responsibility of the owner or management company. So when you’re showing a place, be sure there are no maintenance issues.

When you’re showing a place, make sure there are no maintenance issues.

And when a tenant moves in, conduct periodic inspections to ensure your rental unit remains in great shape. You or your management company also needs to be responsive when a repair needs to be done.

3. A Place to Park

Renters want off-street parking, and that’s a feature they don’t necessarily get in a building in an urban area. So if you have a single-family home with a garage, play up this feature. If you don’t, any off-street parking, such as a covered area or a driveway, is a great selling feature. In the suburbs, renters are fine with street parking since it’s typically easy to find parking in front of the property.

4. Storage Space/Walk-in Closets

If your rental unit has enormous walk-in closets, you’re sure to impress potential tenants. But if you don’t have this feature, you might want to consider having one built in. A bigger closet in a smaller bedroom is usually a bigger draw than a tiny closet in a spacious bedroom. And any additional storage space is always welcomed.

5. Washer/Dryer

Tenants want a washer/dryer in their rental unit. Although this is an extra amenity that you’re not required to offer, it makes your unit more desirable to renters if you do. Some renters have their own washer/dryer, or don’t mind getting their own, so if you have a laundry room or a place to hook up a washer/dryer, that’s better than nothing.

6. Air Conditioning

By air conditioning, we mean central air, not a window unit. But this amenity varies depending on where your rental property is located. In a hot, humid climate, central air is a must-have feature. Window units are not ideal in humid climates because they tend to sweat, adding even more moisture to the home. And the seal around the windows is not perfect when you have an AC installed in the window, which is not energy-efficient.

7. Flexible Pet Policies

Lots of people have pets, making a pet-friendly place desirable for many renters and a must-have feature for others. Sixty-five percent of people own a pet, according to the National Pet Owners Survey. The most popular pets are overwhelmingly dogs and cats. If you decide to allow pets, here’s some further reading on best practices:

  • The Definitive Guide to Renting to Tenants with Pets
  • Pet Deposits, Pet Fees and Pet Rent — What’s the Difference?

8. Security and Safety

At the very least, you should reassure renters that you always change the locks between tenants. And, of course, you can’t just say this — you have to actually follow through with it. Besides changing locks, make sure your property has proper outdoor lighting, a wooden dowel for the bottom of sliding glass doors, deadbolt locks, and either provide an alarm system or let your tenant add one if they want to.

9. Outdoor Spaces

Although many renters like amenities, such as a pool with a cabana and a fitness/yoga studio (like many apartment complexes have), what even more renters prefer is outdoor space — a fenced-in yard, patio, deck, or balcony are all desirable to renters. When it comes to outdoor spaces, something is better than nothing.

10. A “Smart” Home

This feature typically won’t be a deciding factor for most renters, but if you have smart features, it’s a bonus, especially for millennial renters who love technology. The Internet of Things (IoT) allows devices to “talk” with each other, which makes it possible for technology to work for us.

Temperature controls that allow homes to heat up before you come home, a place to plug in your electric car, and lights that go on as you enter the room are all examples of what smart devices can offer. Nest is the leading provider of smart thermostats, but there are others for less money.

Which features help rent your place? If you’re a renter, what features are your must-haves? Let us know in the comments!

Credit to Laura Agadoni

Laura Agadoni is a landlord and journalist whose articles appear in various publications such as Trulia, The Houston Chronicle, The Motley Fool, SFGate, Zacks, The Penny Hoarder and azcentral.

 

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8 Dating Rules That Apply to Real Estate

Your clients are looking for a home to fall in love with, so here’s how to perfect your matchmaking skills and help them find the one.

So much of our lives are online nowadays. Our social lives happen in online communities as much or more than in friends’ basements or bars. We meet people with similar interests by joining Facebook groups or following someone’s story on Snapchat. YouTube is where we learn to do almost everything, from simple home maintenance tasks to cooking dinner for the family.

Home shopping, like dating in the 21st century, almost always starts online as well. They’re both about finding the right one—and just like a matchmaker, house hunters turn to you to help them wade through the pool of eligible homes and find the one of their dreams. Here are eight ways online dating and home shopping are exactly the same and what your role is as the matchmaker.

  1. Knowing their price range is like knowing who is in their league. You have to help your client be as realistic as possible here. In the dating world, it’s a waste of time always going after people who you know won’t give you a chance. In a home search, there’s no point in lusting after houses you’ll never be able to afford. Be a good wingman for your client and only introduce them to prospective properties they have a serious chance with.
  2. Be sure they’re ready to move on. Buying a home is a long-term commitment; is your client ready for something long-term? Help your client get prequalified — it’ll show they’re ready to move on from their current home or apartment. In other words, make sure they’re over their last real estate love. Ask them for a sign they’re not just pretending to be ready to move on.
  3. Don’t be superficial. Ever met a date who looked nothing like the online photo? Well, homes sometimes also look way better online than they do in person. Before agreeing to take them on a home tour, ask your client to name something not related to aesthetics that draws them to the home. Then you’ll know a deeper connection is possible.
  4. Don’t make decisions based on first impressions. After they meet in person, your client may think the house is as awesome as it appeared online. But encourage your client to take it slow before making a commitment. Keep them grounded by pushing them to do an inspection (or maybe more than one) to make sure the home isn’t hiding any dark secrets inside.
  5. Don’t second-guess your heart (or gut). Love at first sight is rare, but it happens. It’s possible your client will find the home of their dreams in the first property they see. If this is the case, don’t try and rationalize or talk them out of their decision. But do make sure they take the necessary precautions before jumping into this new real estate relationship.
  6. Ask if others see in the home what your client sees. Are you worried your client is being blinded by the twinkle in the windows and the sparkle in the backyard pool? But you think the home is just a pig wearing lipstick? Tell your client to bring their friends, parents, and others they trust to a second showing. They’ll see right through any facade and help your client avoid falling for the wrong house.
  7. Celebrate once they’ve sealed the deal. Once your client closes the transaction and walks down the aisle and into their new home, congratulate them and come to their housewarming party to show your support for their new status as a homeowner.
  8. Help them maintain a lifetime of happiness. Show your clients steps they can take to care for their home so they don’t fall on hard times. Give them resources to keep up with home maintenance and make sure they know never to ignore problems that may pop up. This will help your clients have an enduring home that comforts them and their families for years to come.
Credit to Mary McIntosh

Mary McIntosh, GRI, AHWD, is associate broker at ProSmart Realty in Gilbert, Ariz., and has been selling real estate since 2002. Her motto is: “Always look for ways to better serve your clients and keep them laughing throughout the process.”

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