What a splendid dilemma! You’ve received several offers on your property. Which one should you choose? It’s not always the highest one.
Here are just some of the areas your RE/MAX First agent could ask you to pay particularly close attention to as you're weighing the options.
1. Do the math. This goes beyond simply calculating the dollar difference between the various offer prices. Before you do that, be sure to do all the math. Subtract things like closing costs, fees and potential repairs to determine the net proceeds of each offer.
2. Consider the financing. Can the buyer provide proof from the bank that there are funds to back the offer? Your agent can help verify this – and help you understand the terms of the buyer's financing.
3. Motivation. Do the buyers have a baby-sitting parent in the neighborhood? A new job just around the corner? Buyers with extra motivation to purchase your home are less likely to press for concessions and more likely to work harder to close the deal. Some buyers even include a personal letter with their offer to explain why they want the home. These letters can be particularly helpful in multiple-offer situations.
4. Timeline. Note the closing date each offer proposes. You'll want a closing date that best meets your needs. You can always counter a closing date, too, if the best offer doesn't quite meet your timeline.
Weighing the pros and cons of each offer can be tricky. An experienced agent can help you clarify, calculate and secure the very best deal for you. Call us here at RE/MAX First at lets get started today!
LIST IN WINTER OR SPRING?
Why It Pays to List Your Home in Winter
If you're listing your home now, use these ideas to make a great cold-weather impression.
Spring may still be peak home-shopping season, since most families want to move when the kids are out of school. Yet it actually pays to list in the winter, when buyers tend to have more urgency: A study by online brokerage Redfin found that average sellers net more above asking price during the months of December, January, February, and March than they do from June through November, even in cold-weather cities like Boston and Chicago. And homes listed in winter sold faster than those posted in spring.
Should you put your home on the market now? Unless you need to sell (say, you’ve purchased your next home or are relocating for a job), “timing always depends on supply and demand,” says RE/MAX First real estate agent Jenny Moynihan.
To understand your local climate, check the number of days on the market for current and recently sold listings. If most are sitting for more than 60 days, it’s safer to wait until spring, when more buyers will emerge. Yet “if properties are selling quickly, take that as a green light to list,” says real estate broker, Jamey Hood of RE/MAX First.
If you do move forward, these strategies will help make your home a hot seller this winter.
Price It Right
The quieter winter market brings special pricing considerations. Unlike in spring, when there are more shoppers—and it may make sense to price low to try to generate a bidding war—you’re less likely to receive multiple offers.
Winter is also a bad time to test the market and list high. If the house doesn’t sell, you may need to drop below market value to nab a buyer before new properties appear in spring and make yours look stale by comparison.
The upshot: Take a conservative approach and price at market value, Yee advises. Check closing prices of comparable properties sold in the past 30 days, then eye current list prices to make sure your home won’t look overpriced.
October 2015 National Real Estate Report
October National Housing Report: What the Numbers Mean for You
Thu, October 22, 2015
Sales may have slowed with the season change, but the housing market is still going strong.
Homebuyers, home sellers, buying a home, selling a home, October Housing Report, RE/MAX National Housing Report, statistics, housing market
It's not unusual for home sales to slow down in the fall as school schedules and cooler weather encourage more buyers to root down for the winter. According to the October RE/MAX National Housing Report, this September was on trend as home sales dropped 8.6 percent from August.
Yet the numbers also reveal a thriving housing market: Sales were 6.8 percent higher year-over-year from September 2014 and the median sales price rose 7.2% year-over-year to reach $209,000.
Watch this 15-second highlights video for more details:
What this means for home sellers: The number of homes available for sale in September was 3% lower than August and 12.8% less than September 2014. Reduced inventory definitely gives sellers an edge as buyers compete over fewer properties, but you still have to remain competitive. Update decor where necessary, spruce up the yard and do whatever you can to make your home really shine. An experienced agent will have suggestions for catching the right buyer’s eye.
What this means for homebuyers: Don’t panic, the lower inventory shouldn't discourage you because there also was a dip in sales from August, which indicates there may be a dip in competition for your perfect place. On top of that, homes were on the market in September an average of three days longer than in August, which is another indicator of buyer activity slowing down. And more encouraging news for you: Prices in September were down 3.2% from August, so autumn may be the time to score a deal. If you're ready to make your move, consider enlisting the help of a RE/MAX First Realtor who will have experience navigating (and winning) a bidding war and can help you remain calm under pressure.
New to the ‘Hood? Top Tips to Welcome Trick-or-Treaters
As you prepare to welcome little vampires, witches —and no shortage of Princess Elsa’s— to your doorstep, here are a few reminders for a great night of trick-or-treating!
Turn on the porch light. It’s the traditional sign that your home is passing out goodies. If you choose not to partake in trick-or-treating, leaving your light off signals to families to move to the next house.
Stock up. Trick-or-treat traffic can vary between neighborhoods. Talk to your neighbors if you’re new and unsure how many children you can expect. Purchase candy accordingly.
Check the time. The fun occurs most commonly between 6:00 and 8:00 p.m., but can be different for each community. The official time can usually be found on local government websites.
Join the fun! Create a spooky-fun atmosphere for the kids by decking out your porch with spider webs, purple twinkle lights or decorative ghosts swaying in your trees. Of course, a unique Jack-O’-Lantern is always a crowd pleaser.
6 Pricing Mistakes Sellers Make
Pricing Mistakes Every Seller Can Avoid!
If you’re getting ready to sell your home, you want to get the most money for your investment, right? One of the key factors that will sell your home is price, and having a sound pricing strategy is a must if you want to find the right buyer.
Here are six common pricing mistakes all sellers should avoid.
1. Overpricing from the start – You might think your home is the best on the block and should command a price relative to the value you see. Wrong. You have to appeal to the value homebuyers see. Overpricing your home at the onset could leave out strong potential buyers, especially if recent sales and other factors in your neighborhood don’t justify yourlisting price. You also run the risk of needing multiple price reductions, which keep your home on the market that much longer.
2. Leaving out potential buyers in online searches – Entering a price range is the first search parameter most homebuyers use to narrow down their options. If a buyer’s price range is, say, $250,000 to $300,000, they won’t see your home if it’s listed at $305,000. It might make sense to list it right at $300,000 so that you capture potential buyers in the ranges above and below. Ultimately, this is up to you and your agent, but the range your home's price falls into is certainly worth thinking about – especially if you're teetering between price ranges anyway.
3. Not considering recently sold properties – To arrive at a listing price that will generate buyer interest, you can’t base your price solely on the prices of other homes in your area that are listed for sale. You also need to consider recent sales in your neighborhood and the final sale prices. An experienced agent can provide you with information on recent sales to help you see the bigger picture.
4. Getting too creative with your asking price – Make it easy for buyers and pick round numbers. Listing a home for $512,477, for example, will give potential buyers pause about your intentions and divert attention from your property to you, as the seller. Maybe it's best to save the creative juices for the property description.
5. Not being open to negotiation – The quickest way to kill a sale is to dig in your heels on asking price before the for-sale sign even goes in the yard. Negotiation is a two-way street, and if you refuse to budge on pricing or other conditions, you might be in for very bumpy (and long) ride. Ask yourself: Is it more important to get full asking price, or can you make a few concessions to find common ground that will ensure a closed sale?
6. Ignoring your agent’s insights – The best route to the right price starts with picking a great agent and then listening to his or her advice. Your agent will look at your situation from all angles – your home's features, the local market, recent sales and more – to help you make an informed decision about pricing.
Ready to list your home? A RE/MAX First agent can help you price it right and get it sold.
Maryville/Knoxville August 2013 RealEestate Statistics
1. Youre stuck on a too-high price. If your home has been sitting on the market for significantly longer than average, the market has spoken. And its saying: the price is too high for the current condition of the market and the property. Period.
There are only three variables in this equation - which is helpful, because it means there are really only three ways to fix this situation:
change the condition of your property
wait until your market conditions change to support a higher price
change the list price.
Thats it. Thats all there really is. For most sellers the simplest, most sensible of these three variables is to modify is the list price. This is especially so in cases where the home is in good basic condition, is well-staged, and other homes nearby are flying off the market. The fact that you dont want to hear that your home is overpriced doesnt mean its not the truth.
Todays market is ascending in most areas, which simply means that prices are on the rise. Some sellers are waiting to list their homes, hoping that prices will be higher in the years to come. But if you want and need to sell your home sooner than later or you are hoping to sell in time to buy your next home before prices rise much higher, holding out for a higher price probably doesnt make sense.
In fact, your resistance to making a necessary price cut could backfire. Buyers often keep their eye on overpriced but otherwise nice homes, waiting until they suspect the sellers desperation will make them more receptive to a lowball offer.
2. Your home is not be fully exposed to the market. So the truth that the market has spoken on the matter of overpricing does have one caveat: it assumes the market has actually been exposed to your home. If your homes marketing plan has been limited to that red-and-black For Sale sign you got at the hardware store and stuck in the lawn, chances are good that your home is lagging because your areas community of buyers and brokers have no idea it is on the market!
Other common conditions of home sale-preventing underexposure include:
Homes that are not listed on the areas Multiple Listing Service or MLS
Homes that are not listed on major real estate search engines, like Trulia
Homes that are very difficult to show or are rarely made available for viewing
Homes that are listed online with no, few or poor quality property photos.
If your home is lagging on the market and any of the above apply to your listing, they could be the culprit. If you chose a listing agent who has a strong track record of success selling homes, these sorts of listing issues can sometimes reflect a glitch in the system. So, do a double check - Google your address and see how your home is represented online. If you find any of these issues, work with your agent to get them fixed.
If you did engage a listing agent at all and your home is simply not moving, it might be time to reconsider and course-correct your home-selling plan. 3. Your home has a glaring issue that needs resolving. Many times, a big condition issue can cause a home to sit on the market unless and until the seller either (a) fixes the issue, (b) offers a credit or incentive to offset the issue or (c ) reduces the price so low that a buyer thinks the bargain is worth the hassle. Some situations are too costly for a seller to fix (e.g., foundation needs replacing), and others are not fix-able (nuclear power plant next door). In these situations, reducing the price might be the only resolution.
But other listings are sabotaged by highly fixable issues the seller simply might not be willing to admit are at the root of the problem. You might love the highlighter yellow you chose to paint all of your homes interior walls, the wall-to-wall powder blue sculpted carpet or the rustic look of the weathered paint, fences and trims on the exterior. Or maybe you dont love them, but you think buyers should just look past these issues.
Your homes slowness to move is a wake-call. The average buyers tastes might simply differ from yours. Or maybe in your area and price range, buyers dont have to look past issues to find a home that is move-in ready. To concern yourself about what buyers should be willing to do is to live in a fantasy world - and as long as youre there, your home wont move in real life.
4. Youre not really ready to move on. If none of your agents advice about how to shift your homes fate makes sense, if everything on this list strikes you as outrageous, if even your friends and family members urgings to cut the list price makes you think the whole world must be crazy, ask yourself this question: are you really, truly ready to move on?
Its not at all bizarre for home sellers who are deeply attached to a longtime family home, or somewhat fearful about the next phase of their lives to make decisions around their homes listing that keep it from selling. I once showed a house where there were people still sleeping, in beds that were - bizarrely - in the living room, while the listing agent walked my buyer and I through the place. If you find yourself in a situation where your head is telling you that cutting the price is the right thing to do, but your heart makes you do everything possible to keep the home from being shown, consider whether you are truly ready to move on.
KNOXVILLE & VICINITY OCT 2012 REAL ESTATE STATISTICS
After a few days of showing, I think back on what my clients and I saw and how it reflects on the real estate market. Many homes are beautifully presented and competitively priced...these homes make it hard for a buyer to make a decision.
On the other hand, an awful lot of houses are listed but are just sitting. Maybe the seller isn't really aware of how much competition there is, or maybe she is tired, or maybe too beat up by too many negative comments for months. Or at a vacant listing, maybe the agent has turned on lights and swept the front porch so many times that she, too, is tired of making an effort and not getting results.
I understand...even for the nicest homes in the nicest neighborhoods, there just aren't enough active buyers. Nevertheless, if a house is listed for sale, the homeowner and the agent really should make an effort for every single showing.
Here are a few thoughts after seeing some sort-of-sad houses this weekend. Current Remarks: Please make sure your MLS remarks are current. "Free Spring Break trip to St. Croix for contract by February 1" is probably not a current incentive.
Real Buyer? I am not entertaining my family and friends by showing houses. I am working and, yes, I believe it's a real buyer. I am NOT sharing client information to get the listing agent to get his seller to clean the place up. You'll just have to trust me...if I'm showing, it's a real buyer.
Schedule Changes: Despite my best efforts, the schedule can change a little as we go through the day. Little kids get car sick, husbands get distracted by their blackberries, teenagers insist on another Diet Coke every hour. If I call in a slight schedule change, either the showing service or the listing agent should be able to reach the seller.
Brochures, feature sheets, something written has to be in the house to highlight the important features of the home. After about the fourth house, the houses start to blur together. And by the way, I think the mini CDs are a waste of money. If someone has to use a computer to see the photos and be reminded of the details, they can just as easily go online.
Community information in the house can be valuable for an out of area buyer. There are hundreds of subdivisions in the Blount County area, and I can't possible know every detail of every neighborhood. Community centers, church programs, recycling information, library information: these are all important andmight make a difference in a buyer's decision.
Kids and Dogs: Now that the kids are back in school, they probably need to be reminded of a few basic rules if someone is there to see the house. Even a 10 year old can clean up his dishes and spritz some Febreze. Teenagers need to get out of bed and let us see the room if it's after, say 11:00 am. And, please, the family dog needs to be taken for a walk when we get there.
I know it's a tough sellers market, but if I'm showing your house, I might sell it....help me do the best for all of our clients.
Upcoming Housing Shortage!
Just when we are beginning to see the signs of a housing recovery and the housing market, critical to our economy, seems ready to return to normal, major markets across the U.S. are about to be impacted by a new housing crisis.
The National Housing Shortage
While this may seem counterintuitive at first glance, our organization has a long history of seemingly counterintuitive projections in housing which have later proven true. We were one of the first organizations to assert that short sales would not only become the preferred foreclosure alternative for homeowners, but that banks would prefer them as well. We were among the first to predict that investors would flock to the housing market beginning in 2010. We feel confident the same will hold true with the housing shortage that we believe will begin affecting some markets in the next 12 months and the majority of major markets within the next three years.
Consider these year over year numbers from the National Association of Realtors comparing the second quarter of 2011 to the second quarter of 2012:
Individually, each of these statistics indicates major a market transition. Collectively, they show unprecedented one-year movement in the housing market.
According to the U.S. Census, the recent history of housing construction has been relatively consistent: between one and two million homes produced since 1968.
Between 1968 and 2008 at least one million homes were constructed each year.
The year with the greatest output was 1973 at 2,100,500 homes.
The year with the lowest output was 1982 at 1,005,500 homes.
The average output between 1968 and 2008 has been 1,531,900 homes.
In 2008, there were 1,119,700 homes constructed. Of course, we now know that 2008 was a pivotal year in the housing market. In 2009 these numbers began to change dramatically.
Between 2009 and 2011 there have only been an average of 647,600 houses built, and every year since the number of homes built has declined. Each year, the Joint Center for Housing Studies at Harvard University issues a report on the state of he nation's housing. This year's report estimateswe need between 1.18 million and 1.38 million housing units per year to meet the demand for new household development that will occur between now and 2020.
Using these numbers one can draw the conclusion: We will see a constrained inventory market in the immediate future. Couple this with the fact that housing is more affordable than it has ever been, and interest rates are at record lows, and the picture of an oncoming national shortage becomes much clearer.
Real estate professionals have been shocked by how quickly markets across the country have transitioned from excess inventory to having constrained inventory. The first markets to experience the housing crisis in 2007 and 2008 have been the first to experience the housing shortage in 2012. Markets in Florida, Arizona, Nevada and California are now experiencing constrained inventories. Year-over-year sales in the sub $100,000 price category has plummeted in these areas by as much as 40 percent.
No Fast Acting Solution
The severity of the housing crash is affecting the speed with which the home construction markets are responding to a housing shortage. Companies in the construction supply chain have downsized or disappeared in record numbers. Given the lead times in housing construction due to permitting, manufacture of supplies (drywall, lumber, etc.) and the availability of skilled labor, the speed with which the market can react to demand has slowed considerably.
If you are one of the millions of Americans that have been sitting on the fence waiting for the ideal time to purchase a property, this may be the time to seriously consider making your move. This is true of individual homebuyers, but it is also true of real estate investors as well. In 2010 investors represented 17 percent of the housing market; in 2011 they represented 27 percent, and all indications are that we are in the midst of another major investor purchase increase in 2012. 34 percent of all homes purchase today are purchased all-cash.
For investors, housing today represents an investment class that outperforms every other class of investment in both cash returns and, for the past year, in appreciation of equity.
It may seem bold to be presenting a housing shortage in the middle of what many consider a housing crash; however, the numbers, market conditions and major market inventories are starting to make this startling prediction real.