Sell And Build


  #1  
Old 04-17-04, 09:38 PM
Doug Aleshire's Avatar
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Sell And Build

Well, here you are, thinking about that new home and how great it would be to start building. Problem is you have an existing home, it has equity and you need to sell before you can start. Granted you could start before it sells but to be safe, you want to sell. So what do you do? So based on personal experience as an real estate agent and previous homeowner, it seems that those that are selling their home to acquire a new one should carefully read the following.

Selling your own home yourself!

Many sellers try and sell their home sold on their own. True, the intent is to not have to pay a real estate broker a portion as most range in 6% to 7% commission in doing so. So you want to pocket that mnoney. Here is food for thought, lower your price half or more of that fee and it will sell quickly if you priced the home accordingly. There is room for dickering in these estimates but lets assume it’s the average. The bad thing, or not so bad is that you should by all means have a lawyer finalize the transaction so there are no problems prior to, during or after sale. Maybe you should really consider that real estate company down the street?

Poor marketing of your home

Since we are talking about selling your home yourself, then it is very important that we talk about what it takes to sell it. In real estate business, portions of the commission, that we normally pay for is used prior to the sale by virtually advertising to get it noticed to the masses. Let’s face it, a “For Sale” sign just won’t get it, especially on a dead end street! This would involve the MLS (Multiple Listing Service), Open House invitations to other real estate companies and local newspapers and possible in the weekly home for sale brochures, as examples. This all takes money and you must be prepared to spend it to get results. Real estate agents spend many dollars to get the most bangs for the buck. They are the ones using out of pocket money to sell your home. The commission fee in part, is “reimbursement”.

Your home is overpriced!

What seems to happen allot is that the seller “feels” that their home is worth x amount of dollars. This is the first mistake as it is not what you feel but what the market will bear. The other factor is that you have buyers who know or have done their homework to know what things are costing in a particular neighborhood. Some buyers have a real estate agent assisting them and others are looking on their own. Problem is that if you advertise in the paper, stating your price, you have a good chance at losing the good potential buyers in your area. Those that have taken time to pre-qualify will not be looking at your home if it were priced accordingly. The other issue is if you have a potential buyer and your price is inflated, the appraisal done for the buyer who may be eligible to purchase finds that his lending institution will not grant the loan.

Ever hear of location, location, location?

This is sometimes great for the seller or great for the buyer as this will sometimes be the determining factor to those buying. Good areas like close to work, good schools, and hospitals, fire and police departments all play a factor. Bad locations might be too close to a school, a high traffic area, a day care center or apartment complexes. These tend to be less desirable places to sell a home. When we buy a home, just starting out, we try and get the best deal for the money. You find a home that meets most of your needs, even though the surroundings might not be the greatest but it’s your first home! We tend to forget about the potential sale of the home as your family grows, job opportunity change or other issues that cause for relocation. I know, we didn’t think about that at the time.

You got an agent, what’s wrong?

When I became an agent, there were some who said “Be a listing agent only, let someone else do all the dirty work”. Nice thing to hear after just getting on board and trying to make a living. I have seen agents who do nothing else but find listings. They rely heavily on others buying their clients property. This isn’t to say that they don’t do more than just list but they invest allot of money in the items mentioned above to get it sold. It is rare for a listing agent to sell their own property so don’t take what I write the wrong way. The truth is we have good agents and bad. Those who feel that you are the most important client to them will treat you well and those that feel that you are just a dollar sign may not care allot about you or when you sell. This is critical to any seller. It is very important to find a great agent, proven track record that can provide results, reasonably speaking. Good agents provide great advice, sometimes not what one wants to hear but nevertheless, the advice should be taken to heart. If the home is overpriced, it won’t sell so lower it. If the home is not in good shape and you have been advised to do some repairs, do it. If your agent desires to have showings and you can’t be flexible to keep it clean, make a choice but don’t blame the agent. It is true that some agents can be rude, seem uninterested in your sincere desire to sell and fail to provide results. Talk to the Agents Broker for assistance in these cases.

Then we have the inevitable, the “economical conditions”!

Yeah, we all have heard that phrase from a salesman; it’s a “Seller’s market or Buyer’s market”. It’s based upon what is selling, interest rates, whose buying, etc. Whatever the term, its competition to get things done and fast. I once had a home on the market for 7 days and sold! Then another was on the market for 50 days before it sold. In todays market, I have seen homes listed for sale longer than that! Reason for the difference, interest rates and what the buyers were willing to offer. Is this important to a seller, you bet! You have to plan everything out, be willing to compromise if you want that new home. Everything depends upon it!

Hope this helps someone!
 
  #2  
Old 04-18-04, 10:03 AM
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Doug, great advice. Thanks for taking your valuable time to write this.
 
  #3  
Old 04-19-04, 09:01 PM
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Mike,

Thanks for the compliment! Hope I hit the highlights even though much could be added. You would be more up to date on all this than I. Please feel free to add any info that would be beneficial to all our members and that goes for everyone!

Just trying to help!
 
 

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