There is no requirement for a homeowner to work with a real estate agent when selling a property, and many homeowners consider saving themselves the cost of a real estate agent’s commission fee in an effort to reduce costs and to keep more money in their pocket from the sale. While this may seem to make sense, the fact is that a real estate agent’s services have true value to you, and there are several key reasons why you want to work with a real estate agent when selling your home.
Assistance With Pricing The Home
Before you initially list your home for sale, you must decide what a fair and reasonable price is. You may actively compare price per square foot data with other homes in your community to arrive at a reasonable estimate, but there are other factors that come into play. For example, one and two-story homes will have a different price per square foot even in the same neighborhood, and property condition and layout will also play a role. Pricing your home right from the start will generate immediate interest and will help you to sell your home more quickly.
Marketing Expertise And Services
It is not enough to simply list your home for sale, and you must also actively market your home for sale. A real estate agent does much more to market your property than simply place a sign in the front yard. Everything from using online marketing avenues and mobile apps services to hosting open houses are often included in an agent’s services, and these often take time, effort and financial resources to execute. These are often included in the commission that you pay to your agent.
Skilled Negotiations Services
Negotiating with a buyer and buyer’s agent on your own is possible, but you may find yourself making impulsive, emotion-driven decisions. A real estate agent is skilled with negotiations and can help you to remain clear-headed and focused on your goals during negotiations. Keep in mind that there are multiple times throughout the process when you may need negotiate with the buyer.
The Need To Pay The Buyer’s Agent
You may not save as much money as you might think on your real estate agent fees by listing your home on your own. Keep in mind that the seller typically will pay for both the buyer’s agent and the seller’s agent fees. Even if you list your property for sale on your own, you will still be responsible for paying the buyer’s agent fees.
The bottom line is that most real estate agents work hard for their clients, and they bring true value to the transaction. If you have been thinking about listing your home, you may consider speaking with an agent about the services that he or she can provide to you.
As a home buyer, you may go through a number of different steps to ensure that the property that you purchase is in great condition. For example, you may complete an initial walk-through or even several home tours before you make an offer. You may also order a property inspection and even negotiate for the seller to make some repairs on your behalf.
A day or two before your closing date, you may set up a final home inspection to ensure that the home is still in the same condition as the initial walk-through. In most cases, there will be no problems with the final inspection. However, in the event that there is a problem with the final inspection, you will need to know how to handle it.
Work With Your Real Estate Agent
As a first step, you should discuss the issues with your real estate agent. Your real estate agent may have some strategies or ideas that can be used to help you overcome the issue in the best possible way. Minor issues may be resolved with a last minute negotiation to the sales contract. More significant issues may need to be rectified prior to closing, and you may need to delay the closing by a few days or longer until any issues are resolved.
Consider Walking Away
It may be rare for a property to have issues during the final home inspection, and most issues that do arise at this late stage in the buying process may be resolved through negotiations between the buyer and seller. However, in the event that the seller plays hardball and refuses to work with you to resolve the matter, or in the event that the issue is so significant that you are not comfortable with it, it may be an option to walk away from the property.
In most sales contracts, wording is present that requires the property to be delivered to the buyer in the same condition as it was when the contract was signed less general wear and tear. Walking away may not be ideal, but it may be the best option in some cases.
Making a final home inspection is not a requirement, but it is advisable. It can ensure that the home your purchase is in the same condition as it was when you did the initial walk-through, and you can apply these tips if you discover that the home is not in the same condition.
Last week’s economic news included S&P Case-Shiller Home Price Index reports, the Fed’s FOMC meeting statement and pending home sales. Freddie Mac mortgage rates and weekly jobless claims were also released as usual. The details:
Case-Shiller: Denver Leads Home Price Gains in February
The S&P Case-Shiller 20-City Home Price Index showed that home prices continue to appreciate, but at a slower rate than in previous years. Home prices increased at a seasonally-adjusted year-over-year rate of 4.20 percent in February as compared to the February 2014 reading of 4.40 percent.
Denver, Colorado led February’s year-over-year home price appreciation rates with a reading of 10.00 percent. San Francisco, California followed closely with a year-over-year reading of 9.80 percent and Miami Florida reported year-over-year home price gains at 9.20 percent.
In its customary post-meeting statement the Federal Open Market Committee (FOMC) the Fed repeated its projections for moderate economic growth, but again kept its options open for raising the target federal funds rate, which currently ranges between 0.00 and 0.250 percent. The Fed noted that inflation remains below its goal of 2.00 percent, largely due to earlier decreases in fuel prices. FOMC indicated it will be monitoring inflation data closely.
FOMC members agreed not to raise the target federal funds rate, but said that FOMC will closely monitor data on its dual mandate to achieve maximum employment and an inflation rate of 2.00 percent. Labor market conditions, readings on expected and actual inflation rates and domestic and international economic developments will be considered before the FOMC raises the target federal funds rate. When the Fed does raise rates, mortgage rates can also be expected to rise.
Mortgage Rates Rise, Jobless Claims Fall to 15 Year Low
Average mortgage rates rose last week according to Freddie Mac. The average rate for a 30-year fixed rate mortgage rose by three basis points to 3.68 percent; the average rate for a 15-year fixed rate mortgage rose by two basis points to 2.94 percent. The average rate for a 5/1 adjustable rate mortgage increased by one basis point to 2.85 percent. Discount points for fixed rate mortgages were unchanged at 0.60 percent and rose from 0.40 to 0.50 percent for 5/1 adjustable rate mortgages.
Weekly first-time jobless claims were lower than expected with a reading of 262,000 claims filed against expectations of 287,000 new claims filed and the prior week’s reading of 296,000 claims filed. This was the lowest reading for new jobless claims in 15 years. The four-week rolling average of new jobless claims fell by 1250 claims to a reading of 283,750 new claims filed. Analysts typically rely on the four-week rolling average reading as it softens the effects of volatility that can occur from week to week.
Next week’s scheduled economic reports are dominated by employment related data including the National Unemployment Rate, Non-Farm Payrolls and the ADP Employment report. Weekly jobless claims and Freddie Mac’s Primary Mortgage Market Survey will be released as usual on Thursday.
Selling a large house requires showing buyers its potential as a place where they can raise their families, enjoy space to grow, and make it their own. Preparing a large house can be a big task. There are more rooms to clear out, more square footage to get in tip-top shape, and more accumulated belongings to sort through. However, a large house also has strong points that appeal to buyers looking for a spacious home.
Clear the Clutter
Take a look at whether the house feels spacious or crammed with years of debris. Big houses have so much space that many families store more and more things. Therefore, sellers should throw out what they don’t need or want, consider putting old treasures in temporary storage, and leave closets and cabinets with plenty of empty space so buyers can envision their own belongings there.
Define Family Spaces
When children leave the nest, some couples turn bedrooms into storage space, work areas or other rooms. To sell the home, they should consider restoring bedrooms to that use. If the house is advertised as a four- or five- or even six-bedroom house, put a bed and a dresser in that many rooms. Make the large living area look like a family room by removing anything else. If there is a garage for two or more cars, remove other items.
Update Key Rooms And Spaces
Consider updating key rooms to appeal to young families. A Realtor® can give advice on whether the kitchen, bathrooms or living areas are outdated by today’s standards and whether renovation would increase the sale price.
Make Any Necessary Repairs
Families used to living with a sticky window or tarnished faucet should go through each room and make basic repairs. A fresh coat of paint is one of the least expensive ways to instantly freshen up any room.
Improve Curb Appeal
Many buyers won’t even walk in the door if they don’t like what they see when they drive by. Remove overgrown shrubs. Get rid of weeds. Add flowers. Fix the mailbox and check the condition of the front door.
Following these steps will show off the best attributes of a big house and help buyers envision it as a place for their own families. Call your real estate agent today for an assessment of how to prepare your home for today’s family buyers.
Whether you are preparing to purchase your first home or it has been many years since you last walked through the home buying process, you may be starting to feel overwhelmed at the thought of all of the work that lies in front of you. From concerns about finding the right home to the physical act of relocating all of your belongings after the closing, there is certainly a lot to think about. While each home buying transaction is unique, the most successful home buyers have typically adopted a few behaviors. You may keep these in mind to help you navigate through the process with success.
Keep An Eye On Your Budget
Financial stress when buying a home is common. You may have saved for years to afford your down payment, but there are various expenses that some may have not calculated or planned for. It is important to leave extra funds available for unexpected expenses, such as paying for the appraisal up-front on the home you have fallen in love with. Likewise, keep a close eye on your budget so that you are aware of your financial situation at all times.
Be Available And Flexible
It is imperative that you remain available and flexible as much as possible. Your real estate agent may call you at the last minute with a great new listing that has come on the market, and you may need to be flexible with your schedule to see this property before other buyers do. In addition, you may need to be flexible and accommodating with regards to contract negotiations, working with title company requests and more.
Seek Advice And Knowledge
Buying a home does not have to be stressful, but it also is not something that you do every day. There is a lot for even an experienced home buyer to learn, and you should be prepared to seek advice and to educate yourself along the way. Ask questions as necessary, and use the Internet for additional research.
Home buying is a process, and you may consider taking one day at a time as you proceed through the journey to reach your ultimate goal. A skilled real estate agent can guide you through the process and can help you to more successfully reach your goal. Reach out to a real estate agent today to begin looking for your new home.