Real Estate Update

Posts Tagged ‘Buyers’

Tightened standards on federal subprime rates have had a marked effect on the housing market. What does this mean if you want or really need to sell your home? The good news is that there is still a market out there; you just need the skills and tools to tap into it. That is where working with talented realtors comes in. That’s right, talented. In a competitive selling market the best realtors are one who are have large networks, diverse marketing skills, and are willing to try different ideas.

Most of the realtors you find will be honest, but you still need to know which side their bread is buttered on. Here are a few tips to help you get the most out of working with realtors, and the best deal on your house. And it all starts with the asking price.

Set Realistic Expectations

Most realtors hate to tell potential clients that, “No, your house won’t sell for that price.” They really want it to. But they sometimes hesitate to give you a realistic price, because sellers are most likely to hire the realtor that quotes them the best sell price. If they don’t tell you what you want to hear, they might lose your business. So seller, make it your business to ask for a market analysis, and have a realistic idea of what your house might sell for. Hit open houses in your neighborhood and look with a buyer’s eye.

Can’t I just reduce my price later? Well, you certainly can, but buyers almost always take that to mean that there is something wrong with the house. Having reasonable expectations, and being in the appropriate price range is much more likely to work to your advantage.

Also, remember that no matter how devoted realtors are the sale of your house doesn’t have nearly the impact on their lives as it does on yours. In fact, having a sign in your front yard can be good for a realtor’s business whether your house sells quickly or not. Now that doesn’t mean that realtors will try to drag their feet- of course not. But you still need to be aware of what’s being done to sell your house.

Marketing in a Slow Market

Find out before you even sign on with your realtor what marketing and advertising methods will be used to sell your house. Print ads, virtual tours, open houses, signage, direct mail postcards, and fliers are all viable options. But don’t assume that they will all be used immediately, or at all. And keep asking as you move along the process. Of course, a lot of print advertising methods are pricey. A veteran realtor will have a good idea of what to use when. But you need to be involved. If what your realtor’s methods don’t seem to be generating much interest, talk about trying something new. Remember, your realtor’s job is to help you get the most out of this investment.

Wealthy home buyers who buy multi-million dollar homes are typically self-made millionaires with new money, according to a recent online survey of 683 Coldwell Banker Previews International property specialists. The study revealed the top professions of these affluent customers. According to the respondents, 88 % of their customers are business or corporate executives, 37 % are physicians, 31 % are lawyers, 30 % are financial professional and 14 % are entertainers, entertainment executives or professional athletes.
Wealthy home buyers require their real estate agents to be equipped with special skills, according to the Coldwell Banker’s survey. Given the magnitude of the financial transactions involved in luxury home purchases, 78 % of sales associates said that the top most need their clients require from their real estate agents is privacy and confidentiality. The luxury customers also want their real estate agents to exercise discretion while dealing with their multi-million dollar transactions. Almost 70 % of respondents polled that their wealthy clients want their real estate professionals to offer customized services while 44 % said that the luxury home buyers want their agents to have good network and work relationship with executive assistants, CPAs and attorneys.
Wealthy home buyers also want their agents to know the inside scoop on the real estate market, according to 36 % of the respondents in the Coldwell Banker’s survey. Seventeen percent of the sales associates surveyed indicated that one of the necessary skills for real estate professionals working with affluent customers was the ability to provide emotional support to their clients. And according to 11 % of respondents, luxury customers want their real estate agents to establish personal rapport with their clients.
The study also included queries on the “must have” amenities that the affluent clientele want in their luxury homes. Wealthy home buyers want media rooms in their homes, according to 60 % of respondents and another 60 % polled that their affluent customers want “wired” homes. However, there are a few home design elements that are out among luxury home buyers. Gourmet kitchens, granite countertops and wet bars are no longer counted as luxuries by wealthy home buyers, according to the survey respondents.
The survey also found that the multi-million dollar home buyer pays a typical down payment of 20 % to 30 %, while a quarter of clients put down 30 % to 50 % of the sale price.

First time homebuyers are in the exciting position of both choosing a home and making one the biggest investments in life. But are realtors necessary? I hear this question a lot from first time homebuyers. They wonder why they can’t just peruse open houses and visit new developments where realtors are just sitting there waiting. Well, that opens the first can of worms for first time homebuyers. Realtors usually work as either buyer’s agents or seller’s agents. That friendly realtor at the open house only represents the interests of her clients (the sellers.) That’s why I tell any first time homebuyer to team up with a professional realtor who knows the things that you don’t.

Tap Into Their Knowledge

Anybody can buy a house. But all the unknowns typically overwhelm a first time homebuyer. The great thing about working with a realtor is that you get an “instant guru” for all you questions from finding good schools, to how much less a seller might take, to “what is PMI again”? You will find that the mountains of paperwork go more smoothly if a realtor guides you through the purchase agreement. The legalities of buying a home are enormous, but competent realtors make sure you don’t skip the inspection, or spend all your time driving around an area that’s out of your price range.

But what about price range? One of the biggest concerns that new buyers have about hiring realtors is paying the commission. After all, is it really worth it to pay realtors when you could have that money available for your new home? Weigh this decision carefully. Don’t nickel and dime yourself out of competent advice. Especially if you have never navigated the paperwork and legalities of a real estate transaction, one of your smartest moves can be to include a realtor on your house hunting team.

Use the Services that Realtors Offers

Once you decide to work with a realtor, let them really work for you. Realtors can eliminate many homes based your requirements, so that you spend less time looking at inappropriate ones. List your desired amenities and priorities so that your realtor really knows what to look for. Good realtors listen. You shouldn’t have to tell him 4 times that a second bathroom is a must.

The best realtors will honor your time schedule and when you are available to look at sites. Realtors can also give valuable information about movers, local amenities and things to do, even local doctors if you’re new to town. Remember, in addition to having professional knowledge of the real estate game, your realtor is an area local. Ask lots of questions, and expect lots of information in return.

Where to Find Competent Realtors

Realtors are everywhere. Ask for referrals from people you trust. Interview potential realtors before making up your mind. Ask about their background, client load, experience and availability. Then grab you digital a camera and a notepad, call your chosen realtor, and have fun buying your fist home.