Comments Off on 3 Strategies to Avoid a Bidding War When Buying in a Seller’s Market
by liz
I know you’ve heard that it’s a tough competitive market. We’ve all heard the horror stories of people that have made offers on dozens of home yet still haven’t been able to lock down “the one”. This doesn’t have to be your story!
There are ways to navigate this challenging terrain and avoid getting caught up in those dreaded bidding wars. In this blog post, we’ll explore three friendly strategies that can give you an edge when buying a home in a competitive sellers market. Let’s jump right in!
Find the Hidden Gems: Target Homes on the Market for 7 Days or Longer While it may seem counterintuitive, targeting homes that have been on the market for 7 days or longer can be a winning strategy. These homes might have slipped under the radar of other eager buyers, offering you a better chance to negotiate a fair price without having to fend off multiple offers. By keeping a keen eye on these hidden gems, you might just discover a diamond in the rough that others have overlooked.
Explore New Horizons: Consider Building a New Home or a New Construction Spec Home When the existing housing market is highly competitive, sometimes the best strategy is to think outside the box and consider building a new home or exploring new construction spec homes. This allows you to avoid bidding wars altogether, as you can work directly with builders or developers to secure a brand-new property that meets your specific needs. Plus, you’ll have the added benefit of choosing finishes and customizing your dream home from scratch. It’s like getting a VIP ticket to circumvent the frenzy of the resale market!
Partner with a Pro: Leverage the Expertise of a Realtor In a competitive sellers market, having an experienced realtor by your side can make all the difference. They know the ins and outs of the market, have access to exclusive listings, and can help you navigate the complexities of homebuying with ease. A skilled Realtor can guide you through the process, assist in finding off-market listings, and negotiate on your behalf to avoid bidding wars or secure the best deal possible. So, don’t hesitate to tap into their expertise and let them be your trusted ally in the journey to finding your dream home.
I’d love to help you in your home buying journey! Reach out here and let’s get started!
Comments Off on 4 Factors That Affect The Saleability of Your Home in West Michigan
by liz
Helping my clients sell their homes is my favorite!! There are 4 major factors that we need to discuss that will determine the success of the sale.
Pricing
Pricing your home according to the current market is a key factor in a successful sale.
Which factors are key to determining the value of a property? Location, design, amenities, competing properties and economic conditions.
Which factors have no bearing on the property value? Price that the seller paid for their home at the time of purchase, amount spent on improvements, assessed/taxable value assigned by the municipality.
The only constant in the real estate market is change. It is always fluctuating and shifting. As your trusted real estate advisor, I will help you determine the pros and cons of listing your home in the current market conditions. It really depends on your ultimate goal whether or not the time is right for you to sell your home.
Two of the most frequently talked about real estate market descriptions are, Buyer’s Market and Seller’s Market. We will discuss which of these markets the current conditions favor.
Property Condition
Your home does not have to be a 10 out of 10 to sell, but the condition is an important factor on how much your home will sell for and how quickly. Major repairs should be taken care of prior to going on the market (if it is not an option it needs to be reflected in the price).
Staging is a popular term out there in real estate world. This can mean as little as thinning out all of the clutter to completely altering the paint, flooring, decor and landscaping to make the home more attractive to potential home buyers. This is absolutely something I will guide you through. I absolutely love this part of the home sale process!!
Market Exposure
Your home can be in the best location, be priced properly and show like a brand new build but if it doesn’t get the right exposure, it won’t sell.
Marketing your property is my jam! From writing the best possible listing description, to creating social media ads, to making sure that the professional listing photos show your home in it’s best light, highlighting your home to agents that are working with potential homebuyers in the area, open houses, the list goes on. I will do everything I can to ensure that your property has the maximum exposure possible.
Get these 4 factors right and you’ll be receiving a great offer in no time! Let me help you in your journey! Send me a message and we can get started.
If you have a home to sell, you’re probably excited to get the process started. There are many things you need to consider when selling your property, and it’s hard not to feel overwhelmed by the task. The good news is we’ve done extensive research about what you need to know about selling your home – and we’ve answered the questions you’re probably wondering:
How will you determine my home’s value?
To determine your home’s value and set a listing price, I will complete a Comparative Market Analysis. The CMA uses recent sales of homes close in geography, age, size, and features to yours. (A CMA is not the same as an appraisal, which a licensed appraiser can perform.)
Is it a good idea to start high?
Many sellers like the idea of “starting high” to see if they get higher offers, but this strategy isn’t usually practical. First, buyers may not see your listing if they use a price filter set to what they expect prices in the area to run. Second, you run the risk of the appraisal coming in lower than your contract price, which will require your contract to be renegotiated or canceled. Third, if your listing price puts your home higher than your neighborhood value, your home will likely sit on the market longer as buyers wait for you to make a reduction. It’s best to set a realistic listing price that will bring you buyers quickly. My goal is always to get you the highest possible price in the shortest amount of time.
What percentage of the listing price can I expect to get?
The list-to-sell ratio is determined by dividing the selling price by the listing price. The ratio is largely market-driven. In a sellers’ market, which is when inventory is low, sellers may get close to 100% or over 100% if the home sells above list price. In a market with a large inventory of homes, a buyers’ market, buyers have more negotiating power, so the list-to-sell ratio may be closer to 90%. My goal is to get you as close to a 100% list-to-sell ratio as the market will bear.
How soon can I get my home on MLS?
Once we agree to work together, I will begin entering your home information on the MLS system. I will also schedule a time for a professional photographer to take photos of the property. As soon as all the information and pictures are uploaded items, your listing can go live on MLS.
What do I need to do to get ready to list?
For your part, it’s a good idea to begin cleaning out or organizing storage spaces, closets, and drawers and putting away some of your décor or belongings. You may also want to have the exterior pressure washed, and the landscaping cleaned up. We can talk further about specific things that will help your home show better.
How will showings be conducted?
You and I will agree on the terms you are comfortable with for showings. We want to make the home accessible to buyers without too much disruption to your personal life. We can use a showing schedule, and unless we agree otherwise, you will be notified in advance of showing requests. We typically use electronic lockboxes that only active members of our local Realtors association can access. We can set the lockbox on a schedule, if necessary. Any time the lockbox is accessed, I receive a notification.
How will you market my property?
Marketing your listing is of utmost importance. Most buyers find their properties online through MLS (via their agent,) Realtor, Zillow, or other search engines. Listings in our MLS system automatically show up on these sites within a day or two of becoming active. In addition, I share my listings with the agents in my network, on my website, and on my social media. We can discuss additional opportunities such as hosting open houses and marketing within your neighborhood.
How long will it take to find a buyer?
Several factors influence the time it takes to find a buyer. These include the market conditions, price range (higher-priced or luxury homes typically take longer to sell,) location (whether your home is in a desirable neighborhood or a unique location,) and the condition of the home (is move-in ready or in need of renovations?) In a balanced market, most houses, when priced accurately and without significant damage or extenuating circumstances, go under contract within thirty days. Homes sell faster in a seller’s market, while buyers take more time to look when inventory is high.
Will you qualify the buyer?
When an offer is received, I will work with the buyer’s agent to vet the buyer. All offers should be accompanied by either a pre-approval from a mortgage lender or, if paying cash, by verification of funds available to cover the purchase price. Once you accept an offer, the buyer must put down the agreed upon earnest deposit, schedule any inspections as stipulated in the contract, and, if financing is involved, their lender will initiate the loan approval process. I will stay in close contact with the buyer’s agent to make sure due process is followed.
What are the costs involved?
The seller usually pays for the real estate agent fees, which are divided between the buyer’s agent and the seller’s agent. The seller also pays their share of the property taxes and HOA dues. If the full annual amount has been paid, the buyer will repay their portion back to the seller at closing. There is also a closing fee, title insurance, state and county taxes. In some transactions the seller elects to pay a portion of the buyer’s closing costs to help make the transaction work for the buyer.
Is your commission negotiable?
The commission is not negotiable. Keep in mind that the commission is split between the listing and the selling agent. If we were to reduce the commission upfront, buyers’ agents might be less likely to advocate for your property. I will work very hard to represent you honestly with full loyalty and integrity to earn the designated commission. This work is my livelihood, and I often go above and beyond the call of duty to earn my pay and close transactions for my clients.
Can I cancel if I find my own buyer?
The listing agreement is a contract between you and me and/or my brokerage. It stipulates the terms for cancellation, which you are encouraged to review. Once we have signed the listing agreement, a prospective buyer that approaches you directly should be redirected to me. How often will we communicate? Communication is key to an easy and successful sale. I will keep you appraised of events every step of the way. You are welcome to reach out to me with questions or concerns. When we go over the listing information, we will discuss our preferred means of communication and schedules to make sure we know each other’s availability and boundaries.
Thinking of selling? I’m here to help! Shoot me a message or give me a call today.
Who doesn’t want top dollar for their home? Here are a few really key tips to making sure that you get top dollar when selling your home: Price it right. Setting the right price for your home is the single most important decision you’ll make when you decide to sell. Don’t worry—I can help get it right from day 1!
Keep your cards close. So far as you can help it, don’t spill to buyers why you’re selling. If they sense you need to sell quickly, it could affect their offer.
Storage speaks. Buyers LOVE LOVE LOVE storage. Do whatever it takes to put your home’s closets and storage nooks on full display—even if it means clearing them out.
Enhance the entry. You use it as a place to unload your wallet, keys, mail, or loose change….when you’re selling, swap out the gadgets for a vase of fresh-cut flowers or a thriving houseplant.
Clean is everything. Clean, clean, and then clean some more! Remember, you’ll be up against a few BRAND NEW homes at your price point. Don’t miss top dollar for lack of a little elbow grease.
Depersonalize and declutter. Get rid of a third of your stuff—even rent a storage unit if necessary. A good visual to keep in mind? Picture transforming your home into a rental property. More tips on getting your home “show ready” here >>>https://lizorealestate.com/8-ways-to-make-buyers-fall-in-love-with-your-home/
Comments Off on Creating the Right Pricing Strategy
by liz
Properly pricing your property is key to a successful sale in the least amount of time and for the highest value. It is important to get it right from the start.
The Top Five Mistakes Home Sellers Make When Pricing Their Home
1. Sellers often price their home based on “need” rather than the market.
2. Sellers use the “wrong” properties for comparison when pricing.
3. Sellers build a “negotiating cushion” and then have no one to negotiate with.
4. Sellers take advice from “well meaning” but uninformed parties.
5. Sellers allow positive emotions about their property to influence their pricing decisions.
Consequences of Improperly Pricing Your Home
· Buyers in today’s marketplace are very educated on value. If they feel your home is priced over the market they will pass over your home.
· If you price your home too high you end up chasing the market. Often times the home ends up selling for less than it could have if it would have been priced properly in the early stages.
· The home will likely take longer to sell. This can create carrying costs and the possibility of an increase of purchase price and mortgage payment for the next home.
· Pricing your home below the market will likely create more interest and result in a faster sale. The downside is that you may miss top dollar.
It’s important to understand the current market conditions when creating a pricing strategy. Is it a Buyer’s Market? It is a Seller’s Market? Is it a Balanced Market? Having a professional Realtor that understands the market and can educate you is key to pricing your home properly and obtaining your goals.
Comments Off on Should You Sell to an Instant Offer Company?
by liz
There’s a new term in real estate: iBuyer.
iBuyers, short for instant buyers, give sellers an almost instantaneous offer on their homes. Also called instant offer companies, iBuyers promise sellers an offer within a couple of days and closing dates within one to two weeks. Some popular iBuyers include Opendoor, Offerpad, Redfin, and Zillow Offers.
Unlike house flippers, iBuyers aren’t looking for distressed homes. iBuyers purchase moderately-priced homes, fix them up as needed, and relist them.
The obvious downside to selling to an iBuyer is that you will not get top dollar for your home. They are looking for homes where they can make a specific profit margin. Typically, the company will analyze your home online, using algorithms to come up with a value. For example, Zillow Offers will most likely offer you their Zestimate price. Sellers should expect an offer of about 10% under fair market value.
iBuyers accept a tiny percentage of the homes submitted. If the company decides to make you an offer, they may send a home inspector out to determine what costs they will have in preparing to resell the house. If you work with an iBuyer, make sure to read all the terms, as you may be required to cover some repairs.
While using an iBuyer saves you from paying real estate agent fees, watch out. You may not have to pay the 5-7% real estate commission, but iBuyers charge fees that may run anywhere from 6 to 9%. The total costs of working with an iBuyer can sometimes run as much as 12-15% of your selling price.
Working with an iBuyer benefits sellers who don’t have the time or desire to market their home traditionally. If you are in a situation where you need to sell your home quickly and are willing to take less than your home is worth, then an iBuyer may work out well for you.
Before you offer your home to an iBuyer, please allow me to discuss your options with you.
Comments Off on What is the difference between a SELLER’S and BUYER’S market?
by liz
IT’S A SELLER’S MARKET! IT’S A BUYER’S MARKET! IT’S A BUYER’S & SELLER’S MARKET! I mean, seriously. What does all the jargon even mean? What exactly IS a “buyer’s market” or a “seller’s market,” and how does anyone know which one we’re in? Wonder no more, good friends. The next time you hear the oft thrown-around term, here’s what to call to mind: A BUYER’S MARKET • Lots of for sale signs around town and homes on the MLS • Homes selling below listing price with several price cuts along the way • Rising inventory levels and increase in days on market • Population and job growth trending downward • Sellers offering to pay points or closing costs or give allowances for new flooring or appliances • Sellers regularly taking their home off-market for a few weeks, then relisting it, in an effort to make it appear “fresh” A SELLER’S MARKET • Fewer for sale signs around town and homes on the MLS • More FSBOs because some think they don’t need an agent to sell • Homes selling through word-of-mouth before they are even listed • Low inventory levels and shorter days on market • Job growth above average There are pros and cons to each type of market. I’ve been in this business long enough to experience many different market conditions. Whether you need to buy or sell, I can help you with a strategy! Send me a message and let’s chat about your real estate goals. Don’t put it off any longer—I can’t wait to connect with you.
An appraisal gap is the difference between the agreed upon purchase price and the value that the appraiser determines at the time of appraisal. For example if a seller accepts a buyer’s offer with a purchase price of $250,000 and the appraisal comes back at a value of $240,000, the appraisal gap is $10,000.
In this current market, there is a possibility for homes to appraise for less than a buyer is willing to pay. Appraisers use past sales as comparable properties in their reports. With the low inventory and amount of buyers competing for the properties on the market, market values are rising and it may be difficult for appraisers to find comparisons to support the value.
To overcome this obstacle, many buyers are offering appraisal gap coverage or guarantees in their offers to compete. What does this look like? In our earlier example, if the buyer included an appraisal gap coverage of $10,000 in their offer, the seller will get the full purchase price of $250,000. The buyers would have to bring an additional $10,000 (the shortfall of the appraisal) to closing in addition to their down payment and closing costs.
For more ideas on how to write a competitive offer check out this blog post.
Selling real estate is a complicated process that Realtors work hard to master. You absolutely can sell your home on your own, but it is not the best choice for everyone.
Consider these questions before ruling out hiring a Realtor:
Do you know how to write a contract?
Do you have the budget for photography and marketing?
Do you know the market value of your home?
Do you have a third party to negotiate on your behalf or will you be doing it directly with the buyer?
Are you prepared to leave work for showings and arrange these on your own?
Do you know how to prepare your home to sell for top market value?
Do you know to qualify a potential buyer?
Should you have multiple parties interested, do you know how to handle a bidding war and how to sort through offers and decipher which is the best one to choose?
Are you prepared for the process after an agreement has been reached?
On the fence about what to do? Give me a shout for a free no obligation home selling consultation. Or click on this link to find an available appointment that fits your schedule.
Have your pre-approval letter or proof of funds in hand. You may have a great offer to submit, but if you can’t back it up with proof you are qualified to purchase the home the seller may just move on.
Make a cash offer if you are able. If not, make as large a down payment as possible, and use a lender that communicates effectively with all parties.
Offer more than the asking price. Your agent should do a comparative market analysis to give you a good idea on the home value as soon as you decide to make an offer. If it’s not too out of line with the CMA or your budget, offer more than the asking price.
Keep your offer clean and simple. Don’t ask for contingencies that aren’t necessary to closing the transaction.
Shorten the inspection period. Asking for a 5 to 7 day inspection period instead of the traditional 10 lets the seller know that you aren’t going to waste anyone’s time. Find a home inspector who has availability to schedule your inspection as soon as your offer is accepted.
Have your earnest deposit ready. Offer an escrow deposit that sends the message that you are serious about your offer and have the funds ready to turn in as soon as your offer is accepted. You may want to include a copy of your escrow check with your offer.
Offer flexibility with your closing date. Convey through your agent that you are willing adjust the closing date to suit the seller’s needs.
Consider an escalation clause. Let the seller know your offer isn’t the highest you will go by including a clause stating that you will increase your offer, up to a set price, if the seller shows you a higher offer from another buyer.
Offer an appraisal gap guarantee. If you have the funds available, this is a great way to lessen the risk of an appraisal falling short of the price that you have agreed to pay for the home. The seller will be more comfortable taking your offer knowing that you are willing to make up the difference if the appraisal comes in lower.
Be diplomatic with negotiations after your contract is signed. Remember that the seller has other interested parties to fall back on. If you turn ugly after the contract is signed, making additional demands or not following through with your promises, the seller may hand you back your deposit and work with someone else.
I’m happy to discuss these ways and others that I have used with my clients when winning in bidding wars. Message me today to schedule a consultation or click on this link to see what times I have available!
