Do I really need a Realtor?

Many sellers have the perception that a realtor is not needed when trying to market their home for sale. And when it comes to the neighborhood drive by, street browsers and a few flyers that is true. Unfortunately, the real estate game changed in 2007.

It is no longer realistic that a drive by client can effectively close on your home even though you may catch the eye of a few property nibblers. Lenders have significantly changed the home buying process and property condition, neighborhood comparables and real skill is now involved in closing the deal.

Recently I participated in a transaction on a new construction home. The builder had done wonderful finishes and the home was ready to move in. Little did we know what we were going to be facing with the "new" lender maze. The first issue came up when the newly tightened radon standards caused the "new" construction home to fail a radon test. A complete radon system had to be installed (cost $950). The second issue arose when the lender needed verification of termite treatment to the soil as part of the "subterranean" soil process. The subdivision was treated when developed but the lender now required a "new construction" treatment as part of the loan. A treatment was done (cost $500). Then the third issue arose, the lender required two 6 foot trees and 6 two gallon shrubs to be added to the landscaping plan. The property had minimal landscaping due to the price being just under $130,000. The purchaser installed the trees and shrubs in addition to the current landscaping at a cost of sweat equity and a few hundred dollars.

As you can see, each of these issues required forms to be filled out, work completed by qualified and licensed indviduals, and submission to the lender's underwriter for review and approval. The builder spoke to me by phone and said "the game has really changed" and that is the truth! Lenders are requiring more and more property condition upgrades and certifications, lenders are more picky about the type of borrower and property they will finance, and lenders are not afraid to require repairs, renovations and property upgrades.

What are you going to do when that home buyer (that drove by) gets an inspection in today's lender market and the lender starts flagging the repairs? To wait for a cash buyer could take forever and to say "I wouldn't do it" just means you would NOT sale!

Today's real estate climate challenges the skills of the most savvy realtors. More than ever we are in an environment where the professional, skilled realtor can really be an asset. Seasoned brokers can preview your property, identify potential issues, help you screen buyers and manage issues when they arise.

The goal for everyone is SOLD! My suggestion - consider a realtor today!

Tim Osborn, CEO / Founder
Broker - KY/OH/IN
The Property Pros
PH: (859) 803 - 5034
Website: www.timothygosborn.com
Email: tosborn@newbeginningsre.com

Common Selling Mistakes!

Mistake #1 – Incorrect Pricing

Every seller naturally wants to get the most money for his or her product. The most common mistake that causes sellers to get less than they hope for, however, is listing too high. Listings reach the greatest proportion of potential buyers shortly after they reach the market. If a property is dismissed as being overpriced early on, it can result in later price reductions. Overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price than they likely would have had they been priced properly in the first place.

Mistake #2 -- Mistaking Re-finance Appraisals for Market Value

Re-finance appraisals can be very encouraging for homeowners, leading them to assume that the appraisal is the amount that they should expect to receive for their property. Lenders often estimate the value of your property higher than it actually is, however, in order to encourage re-financing. The market value of your home could actually be (and often is) lower. Your best bet is to ask your Realtor® for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.

Mistake #3 -- Failing to "Showcase"

In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant as possible. Make necessary repairs. Clean. Make sure everything functions and looks presentable, and remove as many possessions as you can prior to showing. A poorly kept home, or one with too much clutter, will make it dramatically more difficult for buyers to become emotionally interested in your property.

Mistake #4 - Trying to "Hard Sell" While Showing

Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don't try haggling or forcefully selling. Instead, be friendly and hospitable. Pointing out any unnoticed amenities and being receptive to questions is advisable, but this is not the time for negotiation and salesmanship.

Mistake #5 - Trying to Sell to Lookers

A prospective buyer who shows interest because of a For Sale sign or an open house ad may not really be interested in your property. Often, buyers who are not accompanied by a Realtor® are 6-9 months away from buying, and are more interested in seeing what is out there than in actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet. They may still even be unsure as to whether or not they want to relocate.

Your Realtor® should be able to distinguish realistic potential buyers from mere lookers. Realtors® should usually find out a prospective buyer's savings, credit rating, and purchasing power in general. If your Realtor® fails to find out this pertinent information, you should do some investigating and questioning on your own. This will help you avoid wasting valuable time marketing to the wrong people. If you have to do this work yourself, consider finding a new Realtor®.

Timothy Osborn, CEO/Founder
Broker - KY/OH/IN
The Property Pros
Email: tosborn@newbeginningsre.com
PH: (859) 803 - 5034