It’s no secret homeowners want to get as much money as they can when selling their property. The listing price is a driving factor that can make or break a deal and is why you need to keep these three tips in mind.

1. You Gotta Be Real

The biggest challenge for some homeowners is being real with themselves; they believe their property is worth an enormous amount of money, but realistically, it’s not. When sellers price their home more than it is worth it can negatively impact them in several ways. Potential buyers could avoid the home because it simply exceeds their budget, but in actuality, the fair market value of the home is within their price range. When buyers start ignoring the home because they see it’s not in their budget or realize it’s not worth the asking price, the property will continue to sit on the market. This can create buyer’s suspicion. What I mean by this, is buyers will become suspicious and assume something must be wrong with the property because of how long it has been on the market. This can cause the house to continue to sit on the market until the homeowners make adjustments to their asking price.

A great way to avoid this problem is by working with an agent who can determine fair market value by completing a market analysis.

2. Avoid Pressures

Just like most things in life, pressure makes things explode and this is very relatable to sellers! Sellers who are under high pressures such as moving because of a job or the need for money can cause them to accept less than what the property is worth. This is great for the buyer, but not so great for the seller.

Determine the reason for selling and plan for the future. If at all, possible, plan around the sale of the house so you don’t have to worry about being pressured by any external factors. Life happens and the best approach is to talk to a professional and get their advice on marketing the home.

3. Be a Strong Negotiator

Any agent and I mean any, can sell a house. It’s not hard to slap a buck fifty on the listing and sell it in an hour. What’s challenging is being able to understand home pricing, what drives the market, and the ability to conceptualize the other side's strategic moves. You have to find someone who won’t be rolled over in negotiations. As a real estate agent, the client’s best interests should ALWAYS be number one. Unknown to the clients, some agents may make agreements to coach their clients into accepting less just so they can get a commission quicker. This is UNACCEPTABLE and goes against an agent’s responsibility. The point being made is, you need to know who you have fighting in your corner. You need someone who is knowledgeable and can’t be easily manipulated. You need a strong negotiator.

Keep these tips in mind when working with an agent or when you decide to sell your home. Know what you have, don’t be pressured, and know-how to get what you want!

At some point, you’ll approach the crossroad of deciding to buy or rent a home. As you make this decision be sure to understand what each option entails. Like anything else, they both have their advantages and disadvantages. Some would argue buying a home is the smartest action to take because it’s an asset. Others would argue renting is ideal because you have fewer responsibilities. While both arguments are valid, there isn’t “the better option”. It comes down to the person and what best fits their current needs.

Deciding to Buy

Advantages:

In most cases, homes appreciate over time and allow homeowners to build up equity. Equity is the monetary portion of the home that you truly own and can be determined by taking the current value and subtracting the dollar amount owed. Equity is an enormous advantage in home buying because it is an asset that can be utilized later on for other purposes. As homes appreciate, home equity will increase which creates a higher return if you were to ever sell in the future.

Aside from appreciation, equity, and capital gain, control is another advantage that should be considered. When a piece of land is conveyed, five legal rights transfer to the buyer: possession, control, enjoyment, exclusion, and disposition. These rights give you complete control over the property you purchase.

Disadvantages:

The struggle of homeownership can be very real. Imagine purchasing your first home and after a long and strenuous day, you walk through the front door to find your ceiling on the floor. You only budgeted enough for this month’s mortgage and other bills! How are you going to afford to fix the ceiling? This is only one of the thousands of scenarios that play out every day with homeowners. This can create a challenge for people who can’t readily pay for any major repairs or maintenance.

In most situations, home buyers won’t be able to pay cash upfront but will need to take out a mortgage. Taking out a mortgage isn’t necessarily a disadvantage but it is added debt. Some would view this as an absolute negative, because who wants more debt? However, there is a thing such as good debt and bad debt. Good debt is anything that will help you increase income in the future and bad debt does very little to improve your financial standing. A mortgage is a prime example of good debt. It might be confusing reading about good debt in the disadvantage section, but while it may be good debt, it is still a debt owed. Which can create financial stress for the debtor.

Homes are illiquid, meaning they’re not easily converted to cash. This can create a challenge for homeowners in the future when they decide to sell. How fast a home sells is dependent on the market. In some situations, homes can sell right away or can sit for almost a year. Sometimes, homeowners have pressures that can influence the sale of a home such as moving out of state or starting a new career. In situations like these, “time is of the essence” and could cause the seller to accept less than market value.

Deciding to Rent:

Advantages:

Some advantages of renting include flexibility in moving, no maintenance upkeep, no property taxes, and potentially lower utility costs. It’s no secret the most appealing attribute to renting is the lack of responsibility when it comes to dealing with maintenance repairs. Most rental properties have onsite or on-call maintenance technicians that will deal with all repairs, making it very convenient. This can save a lot of money for tenants since they don’t have to deal with the repairs. In addition to avoiding expenses with repairs, renters also avoid paying property taxes and because apartments are typically smaller than houses, their utilities could be less.

The major advantage to renting is the flexibility and ease of moving. Other than executing the signed lease, tenants are free to go when they please. A stagnant market or the thought of foreclosure would never threaten them. The ability to downsize and upsize is very simple, especially if tenants are living in an apartment complex. Depending on the person searching for a new place to live, these advantages can make renting worthwhile.

Disadvantages:

Now it’s time to turn to the dark side of renting. Unlike homeownership, monthly rental payments do not build up any equity for tenants. Renters are simply paying for a place to live and will receive nothing in return in the future. For some, this is ideal but for those of you who seek investment and capital gain, this is something to consider.

When renting, there is a loss of control. Not all legal rights are transferred to tenants as they would be to a homeowner. For example, disposition. A tenant cannot sell or transfer ownership to another party because they do not own the property. Tenants can lose exclusion rights in the sense of letting maintenance employees have access to the living space. Another example of tenants losing control are restrictions like no smoking, no pets, and no guests.

Knowing some of the advantages and disadvantages of renting vs. buying will make your final decision much easier. Take into consideration all aspects and weigh them against your own personal situation. Sometimes the best option is the one you don’t want, but need to choose. If you’re ever in doubt and need more professional advice don’t hesitate to reach out to a local real estate agent!

You're at your third listing presentation listening to another real estate agent give their spill about what they can offer. Just like other agents, this one has offered similar services; a full comparative market analysis, the ability to market your home, and the ability to act as a guide from start to close. To avoid another meeting and to get on with the process of selling your home, you sign a contract. While you understand the foundation of the relationship between agent and client, you might not know what you’re guaranteed. It’s important to fully comprehend the relationship between you and your agent, knowing what responsibilities and level of services they owe.

The building blocks:

The relationship you establish with an agent should be built on professionalism and trust. It is important to know many agents realize the importance of professionalism and that is why they have become members of the National Association of Realtors (NAR). When an agent joins NAR, one of America’s largest trade associations, they are making a promise to act most professionally by committing to a set standard. As members, agents are upheld to a strict code of ethics that spells out a higher standard of professional behavior. This higher standard deals with three categories; Duties to Customers and Clients; Duties to the Public, and duties to other REALTORS®. When you see the term or here your agent refer to REALTOR®, know they have taken the commitment to conduct themselves to a higher standard to better serve you.

While professionalism is crucial, so is trust. It only makes sense you trust the person who is responsible for selling, possibly, one of your largest assets. Selling a home is no joke and many people rely on the sale of a home to fund other purchases, such as another house, a business investment, or even their retirement. How do you know who to trust? It’s simple, ask them! Their answer may be all you need to hear. For instance, if they reply that they are a member of NAR, chances are strong you can trust them. Always make sure to use your better judgment to decide if they are deserving of your trust.

What responsibilities an agent owes:

Once you have entered into an agency agreement with an agent, you are owed certain duties and responsibilities. These duties are not just moral or ethical in nature but are the law. Under the common law of agency, an agent owes these six duties:

Care

Given the status of a licensed professional, the knowledge and expertise a real estate agent possesses are deemed superior to an average person. An agent provides care by utilizing their knowledge on behalf of a client. An agent is responsible for knowing all pertinent information regarding the property and capable of affecting the client. Care can include helping a selling principal come to a fair market value list price, marketing the property, and presenting all offers with the potential benefits and downfalls.

Obedience

An agent must always act with their client in mind and this includes obeying any instructions. Any time an agent disregards an instruction given by a client they are failing to uphold a fiduciary responsibility. However, an agent does not have to perform any unlawful demands made by a client. An example of this could be violating fair housing, by request of marketing only to a certain race.

Loyalty

When talking about loyalty, an agent must always act and put their client’s interest above all others including the agent’s own self-interests, avoiding all possible conflicts of interest. Any personal interest an agent holds in any proceeding must be first disclosed and consent must be received by the principal.

Disclosure

The agent must disclose all relevant information or material facts that may affect a transaction in any way. It is up to the agent to discover any facts that a prudent and reasonable person would feel are important in deciding which step to take next. In the case an agent fails to disclose any such material, they may be held liable.

Accounting

It is up to the agent to be able to report the status of all funds that are received or given on behalf of the client. The agent and brokerage must deposit any money in an escrow account and not mix it with personal or general business funds. When money gets mixed it is called commingling and is very illegal. Conversion is the act of using entrusted money, not for the intended purpose, and is also illegal.

Confidentiality

Confidentiality is very important in the fiduciary relationship. All personal information that is released to the agent by the client must be kept between the two. If a client is selling their home and willing to accept $20,000 less than the list price, the agent cannot reveal this information as it is personal information. An agent using this to their advantage to help close the deal is violating their duties owed to that client.

Services to expect:

If you’re looking to sell your home and want to work with an agent you can expect these services:

• Help to prepare the property for sale
• A comparative market analysis
• Assistance with marketing the property by using the multiple listing service and other websites
• Working through the sales agreement
• Negotiation assistance
• Being available to assist with closing

If you’re looking to buy a home and are working with an agent you can expect these services:

• Deciding if buying is the best option
• Guidance in how to get pre-approved
• Help filling out a purchase agreement
• Help to find a suitable location
• Visiting properties
• Negotiation assistance
• Assistance with closing

Understanding this relationship between client and agent helps the entire process become more transparent. The next time you work with a real estate agent, remember the responsibilities you are owed and what services to expect. Knowing this information will ensure you’re getting the service you deserve and help hold real estate agents accountable.

Selling your home isn’t as simple as throwing a “For Sale” sign in the yard and having a buyer the next day. A lot of work goes on behind the scenes, but thankfully there are professionals capable of alleviating those stressors. Real estate agents remove the weight from your shoulders and take responsibility for advising, determining the home value, marketing, finding a buyer, negotiating, and assisting in filling out paperwork. However, an agent can only do so much!

Here are six ways to prepare your home to be sold.

1. Clean anything and everything

Cleanliness is extremely important and can directly influence a buyer’s decision as soon as they step on the property. When I mention cleaning, I’m not just talking about washing the windows with Windex and cleaning off the counters, but also talking about scrubbing stained walls, doors, trim, baseboards, and even getting the coffee spills out of the carpet. This includes de-cluttering as well! This can be a challenge because homes are meant to be lived in and making room can prove to be difficult. Having too many decorations on shelves or walls, and excess furniture in rooms can make the size of the home feel small and cramped. In addition to cleaning the interior, you should also consider the exterior. A great way to clean the outside of a home is to power wash any mildew and grime that has built up over time. Paying attention to small details like these incentivize buyers into making an offer.

2. Pay Attention to Curb Appeal

Similar to cleaning the interior and exterior of a home, curb appeal can help draw a buyer’s eye. Driving up to a property with overgrown shrubs, dead branches in the yard, trash littered through the woods, and old worn tires leaned against the shed can create distaste in a potential buyer’s mouth. Take the time to dispose of any items that create an eyesore and spruce up the landscape to make the home more inviting.

3. Control the Smell

It seems everyone is familiar with “the fresh baked cookies” tactic, putting a full sheet of cookies in the oven to release the savory smell of chocolate chip cookies. Nothing says welcome home like freshly baked goods. There is a reason why most people are familiar with this tactic and it’s because it’s brilliant! The first reaction people have when they smell an unattractive or pungent aroma is to scrunch up their nose and retreat. As a seller, you don’t want people running away, you want them to gather to admire your beautiful property with dreams of making it their own. Take action to prevent people from fleeing and eliminate any bad odors!

4. Make Small Repairs

If you are aware of any damage within the home and know it will catch the eye of a home inspector, go ahead and spend the time to have it fixed. Fixing small repairs such as small holes in drywall, busted doors, and ripped carpet can display to buyers the home was well maintained. In addition, it can prevent any hiccups later down the road. Even though buyers sign a purchase agreement, they can back out if the home inspector has anything to report. It is best to be proactive and avoid situations that can prevent the sale of the property.

5. Consider Home Renovations

Renovations are another way to make your home more enticing to buyers but it is crucial to understand the amount of value that is being added. Home renovations will only add so much value and not every renovation will add the same amount. Some renovations may be as simple as adding a new layer of paint or laying new carpet or as extensive as updating an outdated kitchen. Again, not every renovation will add the same value so you must be conscious in making decisions. Just because you add $30,000 worth of renovations does not mean the value of the home increases by the same amount.

6. Take care of any outstanding liens

Liens do not prevent the conveyance or transfer of property, but they can lessen the value. Liens are a charge or claim that attaches to the property. If a property were to be conveyed, the new owner would be accepting the responsibility of all liens. Taking care of liens that are placed against a home before selling makes the selling process much smoother. With liens taken care of, buyers won’t be discouraged to purchase and sellers can price the home at fair market value.

Knowing these six tips can help prevent your home from sitting on the market for an extended period and help catch the eyes of potential buyers. Be proactive and take the steps to get your home sell worthy!