real estate

Three Questions to Ask Before you Buy

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Are you ready to own a home? The real estate market is constantly changing, so of course, DO YOUR RESEARCH! Don’t jump the gun on this one. Unbiased advice from family and peers may be kind, but you are the only one who knows what your needs are when it comes to buying a home.

Here are some great questions to ask yourself before making the plunge.

 

WHAT MADE YOU CONSIDER OWNING A HOME?

Forget finances for a minute and focus on what made you consider even buying a home in the first place. Here are a few “why” questions to ask yourself:

  • Is your family expanding?
  • Does your family feel safe in your current area?
  • Is there a STELLAR school system in the area you want to move to so your children can get the education they deserve?
  • How about that unbearable landlord and rising rent prices? How long can you afford to see rent go up?
  • Do you want a space to make your own?

Your motivation for buying is important. Your “why” can keep you focused, strategic, and on task during a process that can sometimes be daunting.

 
WHICH WAY IS THE REAL ESTATE MARKET GOING?

DON’T SLEEP ON YOUR DECISION TOO LONG! Home prices are on the rise. Not only are they on their way back up, but these increases are happening monthly.

According to Existing Homes Sales Report from the National Association of Realtors (NAR), the average price of homes in May 2017 went up 5.8% from last year. With the 1.3% drop in home sales in July 2017, this fall may be a perfect time to buy a home.

If you wait until next year to buy, you might be digging for change in the cushions and under car seats! Not only will it cost you more to buy, but you will also need to increase your down payment to account for the higher price of the home.

 

WHAT IS THE MORTGAGE FORECAST?

The initial process of purchasing your home may seem easy and quick, but there is a lot to the process! The ‘long term cost’ of buying a home can and will haunt you if you buy at the wrong time. Mortgage Bankers Association (MBA), and NAR have projected that mortgage interest rates will DEFINITELY increase over the next twelve months. The smallest increase in mortgage rates can have a huge impact on a home owner.

Talk to a mortgage specialist before any big decisions. Your real estate agent should have some great suggestions on people who are wonderful!

 

FINAL THOUGHTS

If you and your family feel it is the right time to buy a home then go for it! Finding a Realtor ™ to help out is important as she/he will have up to date information and great advice.

You can’t go wrong with owning your dream home, no matter what it looks like!

 

Don’t Replace Your Agent Just Yet!

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With the influx of new technology and web based solutions, it isn’t a surprise that everything is moving fast into the era of the internet. From sites like Uber to GrubHub, we generally can pull up our phones or laptops to order what we want with ease. And with every industry being revolutionized by technology, the same methods are “attempting” to be applied to the real estate industry.

We could all agree that the simplification of the process through paperwork would be much appreciated by agents and buyers/sellers alike, but the attempt of replacing the agent by sites like Zillow and other third party resources can lead to a snowball effect of disaster. Think about real estate being smack dab in the middle of fast food and a doctor. You can use your mobile device to quickly place your order for a $20 meal, but when it comes to getting a surgery, you’ll want to put that phone down and visit a professional. Now think of your real estate agent being in the middle of all of that. You can use your devices to look for a home, look at market data the way you look at WebMD, knowing not to take it too seriously because you need a real professional’s input, but it’s fun and gives you a general idea of what to expect. But there in lies the issue, the data online is an oversimplified version of what goes into the process of buying and selling. The same way it oversimplifies medical diseases and surgeries, you’d still expect to get a professional’s diagnosis.

Although a real estate agent isn’t quite like a doctor, the industry in its legalities, contracts, and processes is similar in the sense that it needs to be taken seriously. Looking for a house online and wanting to put an immediate offer on one can be exciting and fun, but the issues that require a professional’s guidance comes after the initial contract is written up and the hard work comes into place to actually make the home your own. Same for sellers, if you decide to put your home on the market and want a website that will give you an automatic offer, how do you know you’re not being taken advantage of in the price? But most importantly, how do you know you’re not being taken advantage of in other aspects of the contract? Because there is a lot more to the sale of the home than just agreeing on a number.

The next time you’re digging through public sites for homes for sale, and getting instant home valuation estimates, keep in mind that this is a simple process to give you an idea of your market. A very general idea. But after you’ve found the perfect house, or after you’ve decided that the numbers make some sense for you to sell, call your favorite real estate agent and make sure they give you a more detailed look at the market and assist you through the full process, not just the exciting first parts. Because it’s going to be in the middle of a contract when the lending is falling apart, or negotiations can’t be made on repairs and emotions are at an all time high, that you are going to wish you had put down your laptop and had an agent fighting for you by your side. Use the internet, have fun with its amazing resources, but don’t let it replace your agent. We aren’t in an age, just yet, where technology can do everything a good professional can.

6 Reasons Your Home Won’t Sell

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Are you ready to sell your home and want it to have a great first impression on the market? Or maybe your home has been listed for a few weeks or months, and you can’t figure out why it won’t sell, and you know your agent is working hard to market it. We’ve listed below the top 6 reasons your home may not make a good impression and end up stagnant on the market.

1. IT’S OVERPRICED

To be clear, an overpriced home is the #1 reason a home won’t sell. We often times want our homes to be worth a lot more than we may see based on the data, but if you put your home on the market for the number you wish it will bring instead of the price it actually needs to be, your home can sit on the market for months without getting a single showing. If you’re thinking you need to price high to leave room for negotiations, statistics show that views for your property, for buyers in your price range, can drop a whopping 90% if it’s priced too high. Discuss with your agent what the market says the value of your home is, then price it competitively to potentially get a bidding frenzy instead of low offers or having it expire.

2. LOW SHOWING AVAILABILITY

Making sure the house is clean and having to leave on a daily basis for buyers to tour the home may get a little overwhelming, but it is crucial to have open availability to have your home shown. You could end up missing out on the perfect buyer if you decline too many showings. The longer it sits on the market, the less value buyers will see in it. Talk with your agent about having a 24 hour notice period if the extra time is needed, but make sure your home is available to be shown as often as possible.

3. CLUTTERED SPACE

Buyers want to walk into a house and envision their lives in that home. This is difficult to do if your home is cluttered with personal belongings. They are instantly given the feeling of invading someone else’s personal space, instead of the satisfaction of being able to see a future in your home. Make sure your property is clutter free before putting it on the market; and store away any family photos.

4. UNPLEASANT ODORS

If you smoke or have pets, it’s easy to get used to the smell to the point that you don’t even notice it anymore. But it’s important to understand that the scent can be picked up by new people visiting your home, and it can really turn them off from making an offer. Before a showing, make sure to dispose of any garbage, don’t cook fish or other strong smelling food, and ensure the home is freshened up so there are no pet or smoke odors.

5. UNWILLING TO MAKE REPAIRS

Selling your home as-is may sound appealing at first, but being unwilling to make repairs could cost another mortgage payment that far exceeds the cost of repairs if you refuse to work with the buyer on their requests and the home goes back on the market again. It’s wise to be open to repair requests, and simply go over with your agent what you can afford to do and make a reasonable counter offer during the repair negotiations. 

6. UNWILLING TO NEGOTIATE WITH BUYERS

It’s important to have an open mind about requests that will come from buyers when it comes to purchasing your home. These requests can come in the form of price negotiations, repair requests, or even requests to cover closing costs or home warranties. With your agent on your side advising you of the best steps to take, it’s best to be open to working with the buyers on some of their requests to ensure a successful closing.

Tips on Finding Your Perfect Real Estate Agent

/ perfecthomescolorado / 2 Comments

Hooray! You are finally ready to start your journey into buying or selling your home (or both!) and want to hire an amazing real estate agent. After all, you definitely want someone you like and trust since you might be spending many months together. But liking your agent is not the only factor that is important for a good relationship, your agent must also be willing to work assertively and competently towards your goals. This means that you want an agent with good credentials as well as a likable personality. This can be a tough balance to find.

Before you start interviewing agents, here are a few tips:

  1. Look up their license information — I know this one seems kinda obvious but a lot of people never look up license information on the agents they are interviewing. You want to make sure that they have an active license in their state with no unresolved complaints. For Colorado, you can go here to see status and information on licenses. There should be similar websites in each state.
  2. Pay attention to each proposal — Again, might seem a little obvious but there can be some pitfalls here. Is one agent telling you they can sell your home for a lot more than anyone else? Be wary, they should be providing a comparable market analysis for your area to back up a suggested selling price. Properties priced too high will not even garner a look from prospective buyers. More is not always better, you want an agent with realistic findings who can sell your house quick and easy. When buying a home, is the agent knowledgeable about the area you want to live in? Can they tell you about schools and any hidden drawbacks? Are they listening to what YOU want? You deserve an agent who truly listens and works with you but will also be honest about what you can expect from the process.
  3. Ask about their plan — Whether you are buying or selling or both, your agent should have a plan to get you there. Just putting some ads in the local paper is not good enough anymore, there is a lot of work that goes into meeting your needs! According to the National Association of Realtors (NAR), most people start their home search online,  “Thirty-eight percent of buyers that were 35 and younger, 43 percent aged 36 to 50, 47 percent aged 51 to 60, and 53 percent of buyers aged 61 to 69 looked online for properties for sale.” (see full report here). What this means is that the internet plays a HUGE role in buying and selling! Ask your prospective agent how they use this channel to sell or find potential homes. Are they computer savvy? Do they know how to take advantage of Facebook, Twitter, and Instagram? Are they willing to take you to houses on a schedule that works for you? An agent that is only available on Wednesdays when the moon is full may not be the best choice. There is so much that goes into this process that you want to have a concrete, workable, and realistic plan to get you to the finish line. 
  4. Ask about updates — How will you be getting updates and how often? One of the most frequent complaints I hear on agents is “they never call back or update me on anything!” Make sure the agent you choose is willing to give you updates as often as you want (even if the update is nothing new) and using the method you like. Are you a texter? Then ask for texts! Do you adore email? Well, your agent should be willing to email updates! We work for you and a good agent should want to keep you in the loop as much as you want. Make a plan with the agent you choose to get regular updates, maybe once a week on Wednesdays or twice a week on Tuesdays and Fridays. This will help you to know that your goals are being worked on and your agent is taking their responsibilities seriously. 
  5. What are their expectations for you?  — A good agent will have some honest feedback and expectations for you. Selling or buying a home is not a one way street (on either side) and the agent you choose should be honest about what you need to contribute to be successful. Do you need to take your bundle of furry love on a long walk every time someone looks at the house since buyers often are turned off by a barking, crated dog? Would it help to update some fixtures in your bathroom even if you truly love that custom faucet made from old pipes from your last car? Do they honestly let you know that it is going to hurt your selling chances if you can only show your house on Tuesdays from 12-1? As much as we wish this process to be quick and painless, there may be some tough love that your agent will impart and it is nice to know that the agent you choose is willing to make sure you hear the truth to find success.
  6. Who else do they bring to the table? — A great agent will surround him or herself with equally great partners. Can your agent recommend three knowledgable lenders for you to interview? Do they have a good general contractor to help with repairs? If they are newer to the business, do they have an experienced team behind them ready to help with those weird situations that inevitably pop up? New is not always detrimental (we are all new at a job sometime) but new, alone, and unwilling to ask for help, now that is nerve-racking. One of my favorite quotes by Matthew Kelly says, “No man becomes great on his own. No woman becomes great on her own. The people around them help to make them great.” (full quote here). The agent you choose should have trustworthy people around them, people who can help when your agent may not know the answer or is not experienced in that area. Not one of us knows everything, but combining a whole lot of experts sure does help!

Finding clients the home of their dreams or selling a house for an amazing price is one of the most rewarding pieces of our job. The right agent will make this a fun, albeit sometimes stressful, but ultimately a truly worthwhile endeavor. The list above only touches on some of the areas to investigate and you will certainly add your own as you start the process. Good luck and have fun!