Tag: Sellers

Posted in Buyers, Homeowners, Sellers

Sellers, Don’t Fear Government Loans

Posted on by Liz Walker

I think one of the biggest fears for sellers is a buyer that is pre-approved for a government loan program. This fear is not based on the ability of the buyer to have sufficient finances to obtain the loan but rather on the possible reasons the home could be denied for the loan. Yes, you read that right, the home can be denied.

Let me say though that with the hundreds of transactions I’ve handled, very rarely does an offer to purchase fall through due to the condition of the home. Generally, there are some basic repairs that need to be made but the seller and buyer can negotiate how to get that done. One recent case, three steps outside a home needed a handrail. I was working with the buyer and I suggested to them that they offer to build it themselves before closing. The seller was a single woman who was not in a great financial position to hire someone to get the job done. The buyer on the other hand was a couple with some basic skills so they built the handrail themselves in a matter of days.

I’ve had buyers willing to paint or scrap paint off decks. Oddly enough paint stripped off wood is fine for government loans, you just can’t have peeling paint. Other times the buyers swapped traditional outlets with GFCI outlets. For the person with the right skill set, the list of possible issues really are pretty minor things. Sellers shouldn’t fear the possiblility of repairs because a willing buyer just might do the work for you.

Posted in Sellers

Marketing on Steroids – 3D Home Tours

Posted on by Liz Walker

Home buyers make the decision to schedule a showing based on what images or media of a property is available online. That means that the photos and videos available to them can make or break the interest they have in your property. Most list agents use their cell phone to take photos and that’s it. No photo editing to enhance the images, no video tour, or aerial photography. Or maybe they add a “virtual tour” which in reality is just the photos they took clipped together in video format.

Now imagine being able to view your property in 3D with the ability to “move” throughout the home and turn the view you see. Check out what I mean by clicking this link. It’s a 3D Tour of our RE/MAX RealPros office.

https://rem.ax/3PZ1Osw

Wow factor right? Don’t settle for an agent that just takes cell phone photos. You deserve someone that has invested in technology so you get the most robust marketing possible. Take a look at the before and after photos below. Notice how the Before photo was taken on a gray, cloudy day. In the After photo I’ve brightened the sky, removed some distractions like the white lines on the parking lot, the white square on the front stoop and the trees in the background. Your eye is drawn to the our office building and not distracted by the clutter around it.

Your property deserves the same attention to detail. I offer 3D Tours, edited and enhanced digital camera photography, aerial drone photos and videography, 2-4 minute video tours and a 60 second highlight reel of the top features of your property.

Posted in Buyers

Buyers-Should you Go Above or Below List Price?

Posted on by Liz Walker

How much to offer on a house will depend on many factors: the current market conditions, is the property list price fair, how long it’s been on the market and your situation. Of course, every homebuyer wants to score a deal but it’s common for low ball negotiation tactics to fail.

What are the market conditions? We are currently in a very strong sellers market that means there are fewer properties for sale than buyers looking to purchase. It’s common for listings to receive multiple offers in the first week of being on the market. Sellers are expecting to get the highest price possible so offering anything less than list price will often backfire and often properties are selling over the list price. Plus, if you offer a lowball offer your could risk offending the sellers and they will write you off completely from the negotiations.

When should you offer more than the list price? This depends on your personal situation. Do you have a year or more to find the perfect home or are you in need of a home right now? Have you already had several offers get rejected and you found the perfect property? You might only get one chance at a property. Your first offer often needs to be your best offer so offering over list price is a strategy that could entice the sellers to accept your offer. Also note that in a seller’s market paying cash for a property doesn’t mean that the sellers will accept a lower price because they are expecting to receive the highest price possible.

Do seller’s come down on list price anymore? Yes, but it depends on a few things. Sellers are guided by their agent as to what the value of their home is. I can tell you from personal experience that not all sellers listen to my advice and price their property higher than it’s worth. What happens then is the home often sits on the market for a few months because buyers are doing their research and can judge for themselves whether a property is overpriced. If the property is on the market for a while then you may be successful at negotiating for a lower price. Another factor in getting a lower price is the condition or location of a property that may devalue it in the eye of the buyers.

How do you know what price to offer? This is where it pays to hire a buyer’s agent and especially one that has the experience and market knowledge to assist you. You need someone that can offer insights about market conditions, whether the property list price is accurate, is the condition of the property average or poor, what negotiation strategy to use and more. Interesting fact, 75% of real estate agents in the U.S. sold zero properties last year. Would you want to work with someone that has no experience? I wouldn’t want to trust them with the biggest purchase I’ve ever made.

Posted in Buyers

Do You Know Your Credit Score?

Posted on by Liz Walker

Why is the credit score so important? It’s the magic number lenders use to determine what type of loan you qualify for and at what interest loan. The higher the score, the lower the interest rate and the more loan options available to you. You need at least a 600 score to qualify for a government backed loan called FHA. At a 650 score you open up more options like a conventional loan. At a 750 score you coulhave a lower interest rate on a conventional loan than that 650 score.

If your score is below 600 it might be that you have no credit history! That might not make sense to you since you pay for everything on time and in cash but it’s pretty simple to increase your score. Apply for a gas card, for example from Kwik Trip. You can use it to buy your morning coffee! Keep the balance low and pay off the balance in full and on time every month. After 6 months you will have created a credit history and increased your score.

Here’s something for parents with teenagers to consider, add your kids as an authorized signer on one of your credit cards. You don’t even have to give them a card or allow them to use it. The cavaet is that your credit score passes along to them. We did this with our two kids, it enabled our son the ability to buy a car without a co-signer.

One last thing to consider, if you have a credit card you no longer use, don’t close the account. It doesn’t make sense but it will negatively affect your score. Keep the account open but cut the card up!

For more tips for home buying and selling check out my guides on http://www.lizwalker.remax.com.