Don't Push Your LUCK
when it comes to REAL ESTATE...
you don’t want to go it alone. Without the help of a local REALTOR®, you’re quite honestly pushing your luck! Let’s face it – you won’t just be jeopardizing your time and money, you could miss out on an advantageous outcome. REALTORS® bring more to the table than most buyers and sellers realize. Consider these challenges that may occur without the knowledgeable assistance of a REALTOR®.
REAL ESTATE CHALLENGES
Selling a home without a REALTOR® is like throwing caution to the wind along with the commission. The perceived savings can come back to bite buyers and sellers in terms of uninformed decisions and mistakes that — in the long run — may end up costing you more money than if they would have used an REALTOR® to protect their interests in the first place.
What you don’t know can absolutely hurt you, and it can come back to bite you even worse. Usually with financial consequences. REALTORS® know what the internet doesn’t tell consumers, and they can provide insight that consumers can’t get online.
Everyone’s time is valuable, but do you truly have time to attempt to play the real estate agent role? Are sellers available to show their home in a safe manner, and is it accessible on a moment’s notice? In a seller’s a market, any delay from a buyer = missed opportunity.
Are you able to stage your home? Have minor repairs and general upkeep been addressed? What about professional photography, drone and video? Image is every-thing and you don’t get a second chance to make a first impression when putting a property up for sale.
How are sellers going to market their property? Do they know who the buyer demographic is for their home and/or neighborhood? How do sellers reach buyers? REALTOR® networks are strong, maximizing exposure for sellers and viewing opportunities for buyers .
So the sellers received an offer. Now what? How do they respond? What do they look for in that purchase agreement? Buyer wants to make an offer. How do you know your offer is competitive while still trying to get the best deal? In a seller’s market, expect multiple offers & bidding wars
INSPECTIONS & REPAIRS
This is one of the most difficult parts of a real estate transaction. How should you handle items that are flagged as needing repair or replacement by an inspector? What kinds of repairs are usually done by a seller? What items do buyers typically overlook?
You’re under contract. What do sellers do next? Who is going to be handling the closing? What items should you follow up on? How will you handle challenges like a low appraisal or home inspection issues? What happens if the buyer’s financing is shaky?
SETTLEMENT & CLOSING
When do buyers get possession of the house? In some markets, that means by the day of closing, and in others, the seller has possession for a few days after closing. What condition are sellers expected to leave the home in? How do they handle unexpected, last-minute issues that may arise?
Luck is on your side when you use a REALTOR®
Your real estate agent has your back whether you’re a buyer or a seller. Agents have what’s known as a “fiduciary” responsibility to their clients. They legally obligated to put their clients’ best interests first. This duty imparts a very high standard for confidentiality. As a buyer, do you really, really want to turn over your most intimate financial details to a FSBO seller who’s under no legal obligation to keep the information confidential? The same goes for turning any and all information over to the seller’s agent, who has no fiduciary responsibility to you but only to the seller.
A Seller's Market Presents a Unique Set of Challenges...
Tips for Buyers
Whenever there’s a limited supply of houses on the market and a wealth of interested buyers, time is of the essence.
1. ACT FAST!
If you find your dream home during a seller’s market, it will behoove you to act fast. If you hem and haw over a house you know you want to buy, you may find that it’s no longer available by the time you wish to make an offer.
2. KNOW YOU’RE AT A DISADVANTAGE
When it comes to making an offer, keep in mind that you’re the one at a disadvantage. A seller’s market is not the time to try to push contingencies, concessions, specific closing dates or repairs. Focus your attention on what’s most important to you.
3. BE PATIENT
If you find that you keep losing out on the homes you’re interested in, it’s crucial to be patient and not get discouraged. Many buyers end up suffering during a seller’s market because they get frustrated. Inexperienced buyers caught up in bidding wars will often offer more money than a home is actually worth – or they feel comfortable spending – in order to get the home they want. That’s always a mistake.
Tips for Sellers
Since sellers must compete with each other to attract buyers in a seller’s market, it’s helpful to know how to increase interest in your property.
1. PRICE FAIRLY
Even though homes tend to sell for more money in a seller’s market, it still helps to price your home fairly. If you set your asking price at or slightly below fair market value, you’re likely to attract more interested buyers.
2. CAREFULLY CONSIDER ALL OFFERS
It’s even more important during a seller’s market that you carefully review the offers you receive. Sellers are often so focused on choosing the highest offer that they fail to examine the financial strength of each buyer. Just because buyers say they’ll pay a certain amount for your home doesn’t guarantee they’ll actually be able to obtain those funds.
3. BE AWARE OF CONTINGENCIES
be on the lookout for offers that include contingencies. Offers that include stipulations, like mortgage contingencies, home sale contingencies, appraisal contingencies and inspection contingencies, enable buyers to back out of sales contracts if certain conditions aren’t met.
A FINAL WORD…
When buying or selling property, it helps to know where the market stands. Regardless of the conditions in your area, hiring a local REALTOR® is the best way to navigate the housing market. Whether the market is strong or weak, you’ll want to have a leg up on the competition, and REALTORS® have the knowledge and skills necessary to ensure that you do.