Chicagoland Home Buyer & Seller News & General Real Estate Information
Archives
June 2006
Urban Legends & Internet Scams
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Urban Legends & Internet Scams
Sorting Fact from Fiction
 Urban legends have been a part of popular culture for years. We've all heard suspicious stories that supposedly happened to a "friend of a friend" but which couldn't be verified. Remember the story about Mikey, the Life® cereal spokes child, whose stomach allegedly exploded from mixing Pop Rocks and soda?*
The Internet has added a new twist to the urban legend phenomenon by making these stories easy to spread to a large audience over a short amount of time. What's worse, these stories are often distributed in the form of a plea for help from an unfortunate victim who could be saved if you just contributed a few dollars.
After the tsunami disaster, several fraudulent emails were circulated, some of which contained links to phony charity websites. The same problem occurred after September 11th. Whether it's a plea for money, an email containing false links, or a virus alert that isn't true, these scams have made it difficult to trust anything you hear via email. Here are some resources that can assist you with discerning what's real and what's not!
Emails - The next time you receive a dire virus warning or a chain email promising great wealth, visit http://hoaxbusters.ciac.org. This website contains information about over a dozen different categories of hoaxes, ranging from virus warnings to scam chains. If you receive an email that looks suspect, chances are this site will have a listing about it.
Charity Websites - If you are unsure about whether to give to a particular charity, visit www.charitynavigator.org. This website examines over 4,300 charities and evaluates how well they are using your donations. It also contains tips to assist you in choosing where to give and how to document your donations for tax purposes. Once you've selected your charities, you can usually make your contributions online. Just be sure to visit the organization's official website, rather than using a link in an email. This will ensure that your contribution is going where it should rather than into a scammer's pocket.
Urban Legends - Is there an urban legend that you've been wondering about for years? Visit www.snopes.com and find out once and for all if it's true. They have urban legends categorized by subject matter and even provide a bibliography at the end of their listings to reflect their research! The Discovery Channel is also exploring urban legends through their television show, MythBusters. To learn more about the show and the myths they have pursued, visit the Discovery Channel website at www.dsc.discovery.com and click on MythBusters.
*Mikey was played by an actor named John Gilchrist. He is alive and well and is currently working as an advertising executive!
Home Seller Information on Showings & Open Houses
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Showings and Open Houses
Planned open house appointments will allow you to time to prepare. But oftentimes, the window of opportunity to expose your property to a motivated buyer can be small. So every time you leave your home, make sure it is ready for an unexpected showing.
General Preparation
When preparing your home, think about the techniques used to show builder’s model homes or what you might do to prepare for honored guests.
- Review pointers from “First Impressions” checklist, particularity regarding cleanliness, clutter, and repairs – interior and exterior.
- Create as light, cheerful and serene an environment as possible.
- Open drapes and light lamps including those in closets, basement or attic.
- Add a welcoming touch by filling candy dishes and putting out fresh flowers.
Bedrooms
- Make beds, put clothes and toys away, keep decorator pillows orderly.
- Turn blinds so slats are uniformly open. Put on light if room is dark.
Bathrooms
- Put out a clean hand towel, fresh soap and soap dish.
- Put commode lid down and ensure tissue supply is adequate.
- Potpourri dish can provide a nice sight and scent.
Kitchen
- Put away last minute dishes and conceal countertops articles.
- Simmer a few drops of vanilla on stove.
Dining Room
- Arrange inviting centerpiece.
- Consider setting the table with fine china and linen.
- Light chandelier.
Living Room/Family Room
- Straighten pictures on walls.
- Adjust couch cushions and throw pillows.
- Dispose of newspapers and drink containers, and polish tabletops.
- Light fireplace in winter.
Entryway
- When exiting just before buyers arrive, turn around at front door and see what the prospect’s first impression will be. What is the first thing you notice from that vantage point? Is it an asset?
Notify your neighbors of scheduled open house days, and assure them they’ll be welcome. Their eagerness to discover decorating ideas for their own homes may actually result in them turning up a buyer among their friends.
Reasons That Sellers Overprice
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REASONS THAT SELLERS OVERPRICE
A. Ego Involvement
Most sellers feel their home is unique. Their emotional feelings about the uniqueness of their home lead them to overprice it.
B. Others “Gave Theirs Away”
Most people feel that they can strike a better bargain than others did in selling their home. This feeling of superiority leads them to overprice their home.
C. Market Trends Have No Relavance
Sellers have the feeling that their house is unique, and think that it won't be affected by market trends. The seller might believe that the fact that similar other houses in the area sold for less is not relevant for their house.
D. Misinformation
Often sellers become the victims of misinformation and end up overpricing. The sources of such misinformation include friends, relatives, neighbors, other agents, and the Internet, etc.
E. Costs and Appreciation
Usually sellers overestimate the cost of additions and upgrades to their house and the appreciation in its value. They price their house to recover the total cost of additions and upgrades. Appreciation is relative to the marketplace and how their house fits into that market.
F. Recapture All The Improvement Costs
Sellers like to recover all the costs they incurred over time in house improvements. Usually they inflate these costs and end up overpricing.
G. Financial Needs Determine Value
Rather than realistically pricing the house based on facts, many sellers relate the price to their needs. Thus if their needs are high, they set a higher price for their house. If a seller were moving to an area where house prices are higher than the value of their existing house, the sellers may overprice the existing house.
e-PRO Real Estate Professional
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Why Choose a REALTOR® that is
e-PRO Certified?
The Internet has added a new dimension to the real estate world. Now you can be assured that the REALTOR® you choose will have the knowledge and skills to put the power of the Internet behind your real estate transaction.
All e-PRO Internet Professionals are REALTORS® who completed a rigorous certification program endorsed by the prestigious NATIONAL ASSOCIATION OF REALTORS® (NAR).
Real estate agents and brokers who have earned e-PRO Certification are Internet Professionals who have completed extensive training using the Web. e-PRO Certification means the real estate professional is prepared to employ the latest techniques and services for your benefit, just like you've grown to expect from a professional.
Life can be a little easier.
Save time and irritation. Work with an e-PRO Certified real estate professional who provides both buyers and sellers with high quality, timely information using the resources of the Internet.
e-PRO Internet Professionals maximize your ability to leverage the enormous power of the Internet when you are buying and selling property.
Working with the best pays off.
Save money. e-PRO Internet Professionals can help you take advantage of the latest Internet innovations resulting in considerable savings and speed whether you are a buyer or a seller of property.
Work with someone who is ready, willing, and very capable. Your e-PRO Certified real estate professional has already proven that he or she is prepared to respond to the new market place. e-PRO Internet Professionals are committed to being more responsive, understand that you are the boss, and will completely respect and guard your privacy.
Rest easy...
e-PRO Internet Professionals can offer you the peace of mind that comes from knowing you have chosen to work with a REALTOR® committed to using the Internet with skill, integrity, and professionalism.
Work with a professional who has made the extra commitment. Choose an e-PRO.
When is a Real Estate Professional a REALTOR®?
When they are a member of the NATIONAL ASSOCIATION OF REALTORS®. The Voice for Real Estate® -- the world's largest professional association.
The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.
Founded in 1908, NAR has grown from its original nucleus of 120 to today's 750,000+ members. NAR is composed of REALTORS® who are involved in residential and commercial real estate as brokers, salespeople, property managers, appraisers, counselors and others engaged in all aspects of the real estate industry. Members belong to one or more of some 1,700 local associations/boards and 54 state and territory associations of REALTORS®. They can join one of our many institutes, societies and councils. Additionally, NAR offers members the opportunity to be active in our appraisal and international real estate specialty sections. REALTORS® are pledged to a strict Code of Ethics and Standards of Practice.
Working for America's property owners, the NAR provides a facility for professional development, research and exchange of information among its members and to the public and government for the purpose of preserving the free enterprise system and the right to own real property.
Copyright© InternetCrusade® and NATIONAL ASSOCIATION OF REALTORS®.
All rights reserved.
CRS Specialist
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CRS Specialist
Why do I need a certified residential expert?
Buying or selling a home is one of the most crucial financial transactions of your life. In what can be a confusing and sometimes difficult process, it pays to leave as little to chance as you can. But with the help of a professional, you can navigate unknown territory with ease. To fill the specific residential needs of homebuyer and sellers, the Residential Sales Council of the National Association of Realtors® (NAR) instituted a class of expert real estate professional: the Certified Residential Specialist (CRS®).
How can a CRS help me?
Every CRS has undergone a rigorous, specialized course of detailed training aimed at making residential transactions as smooth and worry free as possible!
A CRS brings special qualifications to your needs:
Membership in a local Board, State Association, and the National Association of REALTORS® (NAR.). Every CRS is part of a much larger network of real estate professionals. Successful completion of the courses leading to the Certified Residential Specialist designation, one of the most successful residential real estate education programs in the country. Every CRS is a real estate professional equipped with special expertise, thanks to advanced study in listing, selling, investment, tax and more. A history of demonstrated sales performance through the documented execution of residential sales transactions. REALTORS® must conform to the NAR® code of ethics.
What this means is that when you work with a CRS, you're working with someone who is more knowledgeable, and experienced.
What if my needs are special?
If anything about your transaction is special, seek out a specialist. A Certified Residential Specialist designation, offered through NAR, denotes an agent who specializes in residential real estate. It's as simple as that. Only 3% of all REALTORS® and REALTOR ASSOCIATES® have earned the right to be called a CRS. Less than 5% have developed special residential sales skills and enhanced their residential sales knowledge through study, dedication and experience. A CRS can help you optimize your transaction by identifying better prospects, clarifying investment potential and helping you to understand the tax ramifications of your real estate transaction. It all adds up to one thing: better service.
What special qualifications does a CRS bring to my transaction?
Your trust in a CRS is well earned thanks to these distinctive credentials:
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A professional designation of residential specialty, the highest in the country.
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A higher level of education in residential sales.
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Affiliation with thousands of real estate professionals on the local and national levels.
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Up-to-the-minute industry information.
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Local market knowledge and special residential expertise unique to your area.
CRS® is a registered trademark of the National Association of REALTORS®
Portions of this page are from the CRS brochure published by the Residential Sales
Council of NAR
Mold Fears in the Home
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Mold Fears Overgrown Says Fed Study, Should We Test Buyers Instead Of Houses?
"Though the experts said mold and indoor dampness were associated with respiratory problems and symptoms of asthma in certain susceptible people, they found no evidence of a link between mold and conditions like brain or neurological damage, reproductive problems and cancer. They based their conclusions on a review of hundreds of scientific papers and reports but warned that the research was limited and that more studies were needed." "Panel Finds Mold in Buildings Is No Threat to Most People," The New York Times, May 26, 2004
The Chicken Littles of the world suffered a set-back last week when a lengthy study by the federal government showed that for most people household mold is about as dangerous as spoiled ketchup.
For several years, worries about mold -- the successor to overblown and unfounded asbestos and radon fears -- has been making its way through the media and legal circuits, producing both fees and trepidation along the way. Now buyers and sellers with common sense need merely turn to the Institute of Medicine, a part of the federal government which "strives to provide advice that is unbiased, based on evidence, and grounded in science."
The IOM tells us what we already know: Mold is everywhere and has been with us since humankind first moved indoors.
"Mold spores are regularly found in indoor air and on surfaces and materials -- no indoor space is free of them," says the IOM in a new report, Damp Indoor Spaces and Health.
Given that every cubic foot of indoor space has mold, it follows that all of us would be wildly sick if mold -- by itself -- was a general health hazard. This just isn't the case.
The better approach is to think of mold in the same way we regard bee stings and allergies to peanuts, serious medical threats to a few but worries of little if any consequence to the rest of us.
Mold plainly produces allergic reactions in some people, and some reactions can be severe. But most people, most of the time, have few if any difficulties.
Here's what the study found:
- There is "evidence of an association" between household mold and upper respiratory (nasal and throat) tract symptoms, cough, hypersensitivity pneumonitis in "susceptible persons," wheeze, and asthma symptoms in "sensitized persons."
- There is "limited or suggestive evidence" of an association with "lower respiratory illness in otherwise healthy children."
- There is "inadequate or insufficient evidence to determine whether an association exists" between household mold and dyspnea (shortness of breath), asthma development, airflow obstruction (in otherwise healthy persons), mucous membrane irritation syndrome, chronic obstructive pulmonary disease, inhalation fevers (nonoccupational exposures), lower respiratory illness in otherwise healthy adults, acute idiopathic pulmonary hemorrhage in infants, skin symptoms, gastrointestinal tract problems, fatigue, neuropsychiatric symptoms, cancer, reproductive effects, rheumatologic and other immune diseases.
What's interesting is this: The symptoms -- or lack of symptoms -- associated with a damp house and a damp house with mold are virtually identical.
From a real estate perspective, the federal study suggests that the time has come to seek a better balance between buyers and sellers.
Buyers routinely demand appraisals, title exams, surveys, and home inspections. Sellers want to know if purchasers have the cash and credit to buy the property.
But in addition, why shouldn't sellers seek to limit future mold claims?
Sellers might want to consider a new real estate contingency: Buyers and all prospective residents of a home should be required to obtain medical tests within 10 days of making a purchase offer showing they are free and clear of any significant adverse reactions to household mold, spores and fungi.
The failure to take such tests would automatically end any seller liability for such conditions. And, if the test results are positive, seller liability would again be terminated because the buyers have a previous condition, know about the condition prior to closing, and are on notice regarding the problem. If the afflicted buyers withdraw from the sale, fair enough -- they should get their deposit back in full. As a matter of full disclosure, of course, the results of their tests would have to be revealed in any future home purchase or lease.
"It is impossible," admits the Environmental Protection Agency, "to get rid of all mold and mold spores indoors; some mold spores will be found floating through the air and in house dust."
However, mold requires moisture, so one way to at least limit mold is to check for leaks, seepage and dampness and to make repairs and clean-up as required. Mold may not be a problem for most of us, but proper housekeeping can make it less of a potential concern for everyone.
Written by Peter G. Miller
Internet Savvy Home Buyers
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Demographics: Internet-savvy home buyers are more likely to use a real estate professional to complete transaction.
The Internet is a powerful tool for both home buyers and agents.
1. In 2004, 75 percent of home buyers used the Internet as an information source, primarily searching for listings.
2. Home buyers who searched for residential property on the Internet typically purchased homes that were 19 percent higher than other home buyers.
3. The Internet also helped facilitate action by home buyers. For example, nearly 70 percent of all Internet-using home buyers visited a home with a real estate agent as a result of their use of a real estate Web site.
4. More than three-quarters of Internet-friendly home buyers used a REALTOR® to complete the home search and close the transaction. This compares to 64 percent of other home buyers.
5. The most widely cited real estate Web site used by home buyers in the survey was REALTOR.com® at two-thirds of respondents. The second most popular site was the real estate company’s Web site with 41 percent of Internet home searchers visiting.
Source: The 2004 NATIONAL ASSOCIATION OF REALTORS® Profile of Home Buyers and Sellers
About Judith Weiner
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About Judith Weiner
By Referral Only …is the heart of my business. I focus 100% of my time providing world-class service to my clients. As a result, my valued clients and friends refer their neighbors, business associates, family and others to me for my trusted advice on buying or selling homes. It is my desire to build a business based on strong, lasting relationships – starting with you!
I am a compassionate, caring and knowledgeable real estate consultant working in the Coldwell Banker office in Highland Park. For over 19 wonderful years, I have consistently and systematically served the Northern Chicagoland Communities. My extraordinary team of detailed oriented office staff & over 100 sales associates work out of our attractive offices in downtown Highland Park on Sheridan Road. My car and home office enable me to ably serve the vast Chicagoland area.
Real Estate transactions often become a complicated maze of numbers and negotiations. Successfully maneuvering through these challenges requires a creative professional who can navigate the way in order to minimize stress and maximize success for home sellers and buyers.
I have been a member of the Chicagoland community all my life. My husband and I raised our three sons in the suburbs and have been residents of Highland Park since 1979. I have been a full-time residential real estate consultant covering the Chicago Suburban marketplace since becoming a real estate consultant in 1987 and have an in-depth knowledge of the North Shore, Northwest and Far North Suburban communities.
I pride myself in maintaining close contact with my clients and delivering World Class Service as well as paying close attention to the details to avoid problems and to ensure that their home sale or purchase experience is a very positive one. I have earned a reputation for leading clients through the entire experience of buying or selling in a caring and professional way. All of my personal and professional goals have been oriented around the care of other people. My people skills and exceptional business management skills enable me to put people at ease and help them find not just a home, but the right home. By listening hard to my clients needs, including the unspoken, I help provide the alternatives that fit their criteria.
My unique, creative and active rather than passive marketing programs effectively sell homes for the best price in the most realistic time. I have developed outstanding negotiation skills and when I put together a contract, you can be assured of a successful closing. I am committed to a long-term career in real estate as evidenced by my belief in placing a premium on continuing education so that you the buyer or seller can be the beneficiary of the latest information, skills and the technological advances. Above and beyond the sales person’s license required to sell real estate in Illinois, I earned my Broker’s license in 1998.
I have my CRS (Certified Residential Specialist) designation, awarded by the National Association of REALTORS® to experienced REALTORS® who complete advanced training in listing and selling. Only 5% of the REALTORS® in the country have earned the right to be called CRS® but they are involved in 25% of all real estate transactions.
I was awarded Graduate, REALTOR® Institute (GRI) symbol from the National Association of REALTORS® after attending a specific, intensive series of a minimum of 90 hours of classroom instruction. The GRI symbol is the mark of a real estate professional that has made the commitment to provide a high level of professional services to you by securing a strong educational foundation.
I was awarded the ABR® (Accredited Buyer Representation) designation that is given to real estate practitioners by the Real Estate Buyer's Agent Council, Inc. (REBAC) of the National Association of REALTORS®. The ABR® designation, the benchmark of excellence in buyer agency service, demonstrates to my clients that I have taken steps to continue my education in the field of buyer representation and have proven experience and training in order to deliver ethical and professional service to real estate buyers.
I have achieved the e-PRO certification awarded to REALTORS® who have taken and passed an extensive online course to help real estate professionals thrive in the competitive world of online real estate from the National Association of REALTORS®. I received my RECS designation from the Real Estate Cyberspace Society. That certification designates REALTORS® who have proven their skills in electronic marketing techniques.
I have achieved Cendant Mobility Inventory and Marketing Specialist (CMIS & CMMS) certifications. The CMIS course covers tasks for safeguarding and selling a transferee’s vacant property after his/her move and how to meet client performance metrics. The CMMS course teaches how to best market the transferee’s old house, and to decrease administrative burdens, and also covers the Amended Sale Program and Broker Market Analysis. I have also achieved Cendant Mobility Buyer Specialist certification (CMBS). This CMBS course covers how to provide transferee buyers top-flight service.
Over the years I have received prestigious awards given to the top Coldwell Banker® real estate agents worldwide such as Coldwell Banker’s International President’s Circle, Coldwell Banker’s International President’s Elite and membership in Coldwell Banker’s prestigious International Diamond Society.
To provide excellence in service and support throughout the process of buying or selling, I have assembled a team of top professionals in lending, appraisal, title, inspection and relocation. I also have all the superior resources available that come with being a part of the Coldwell Banker network of real estate agents.
Whether your need is a first home, a growing family home, an investment property or a home for the retirement years, I know I will be an excellent guide and manager for each transaction. I look forward to the opportunity to be of service.
Seller Spruce Up Tips
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WHAT DOES YOUR HOME LOOK LIKE THROUGH
THE EYES OF A BUYER?
This is an important question to ask yourself when preparing to sell your home. The following checklist will give you an idea of what should be done to your home so that it looks its best.
Outside
Invest in landscaping where it can be seen at first sight. A well manicured lawn, neatly clipped shrubbery and cleanly swept walks create a good first impression. Cut back over-grown shrubbery that looks scraggly or keeps light out of the house. Keep lawn closely cut, edged and free of weeds. Paint your house if necessary. This can do more for sales appeal than any other factor. If you decide against painting, at least consider painting front shutters and window frames. In winter, walks should be free of snow and ice. Inspect roof and gutters. Any missing shingles to replace? Repaint/wash front door and garage door. Doorbells and porch/outside lights must be in working order.
Living Areas
Have all plaster in top shape. Fix cracks, nail pops and visible seams in drywall. Check ceilings for leak stains. Fix the cause of the damage, repair and repaint. If painting and decorating, stick to conventional white and easy to work with neutrals. If you have a fireplace, clean it out and lay some logs in it to make it look inviting. Wash windows and replace any cracked or broker glass; make sure all windows open/close. Replace burned out light bulbs. Be sure every light switch works. Straighten up the closets, get rid of excess, store out of season clothes; closets look larger. Use room deodorizers to eliminate musty odors. Lubricate sticking or squeaking doors.
Kitchen
Most Important room in the house.Make it bright and attractive. If dull, paint cabinets and put up new curtains. Remove any appliances that you keep on your counters (toaster, coffee maker, can opener), remove canister sets and all knick-knacks. Clean counters make the room look larger. Leave a luscious aroma in the kitchen, i.e., vanilla, cinnamon-apple tea, etc.
Bathroom
Repair any dripping faucets. Replace old caulking around tubs, showers. Provide fresh, colorful towels. Keep sinks and mirrors shining. Remove all personal items (make-up, medication, etc.) from counters and sink tops. Use special cleaning products to remove all stains from toilets, tubs and sinks. Use of potpourri, flowers and tasteful deodorizers enhance your bathrooms.
Basement, Attic, Garage
Clean out attic, basement and garage and dispose of everything you are not going to move. Package everything you won't need until you are settled in your new home. Make sure there is plenty of light on the stairs to the basement. If your basement is dark and gloomy, paint ceilings and walls a light color. Vacuum the garage floor and stack items against the walls to make it appear larger.
Home Showing Instructions
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WHEN YOUR HOUSE IS BEING SHOWN
• Keep draperies and shades open to let in light and make rooms appear
larger.
• Remove and/or replace items not included in sale, if possible (chandeliers)
• Tag items not included that cannot be removed (water softeners)
• Turn on all room lighting
• At night turn on porch light and outdoor lighting in front and back
• Neatness makes a room look bigger. Avoid clutter.
• Keeps all steps clear of hazards
• Wash dishes, put away clothes, straighten up newspapers, etc.
• Make up beds with attractive spreads.
• Keep pets out of the way when showing. One type of prospect is annoyed,
another's attention is diverted.
• Avoid having too many people present during inspections. The potential
buyer will feel like an intruder and will hurry through the house. Do not allow
children to tag along on the tour.
• Keep any toys in children's rooms.
• Keep the radio, stereo, TV turned down.
Remember to be a seller you have to look at
your home like a buyer
8 Mistakes Sellers Can Make
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8 Big Time Mistakes
That cost you money when selling your home
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#1 Basing asking price on needs or emotion rather than market value. Many times sellers base their pricing on how much they paid for or invested in their home. This can be an expensive mistake. If your home is not priced competitively, buyers will reject it in favor of other larger homes for the same price. At the same time, the buyers who should be looking at your house will not see it because it is priced over their heads. The result is increased market time, and even when the price is eventually lowered, the buyers are wary because "nobody wants to buy a house that nobody else wants". The result is low offers and an unwillingness to negotiate. Every seller wants to realize as much money as possible from the sale, but a listing priced too high often eventually sells for less than market value.
#2 Failing to "Showcase" the home. A property that is not clean or well maintained is a red flag for the buyer. It is an indication that there may be hidden defects that will result in increased cost of ownership. Sellers who fail to make necessary repairs, who don't spruce up the house inside and out, and fail to keep it clean and neat, chase away buyers as fast as REALTORS® can bring them. Buyers are poor judges of the cost of repairs, and always build in a large margin for error when offering on such a property. Sellers are always better off doing the work themselves ahead of time.
#3 Over-improving the home prior to selling. Sellers often unwittingly spend thousands of dollars doing the wrong upgrades to their home prior to attempting to sell in the mistaken belief that they will recoup this cost. If you are upgrading your home for your personal enjoyment - fine. But if you are thinking of selling, you should be aware that only certain upgrades are cost effective. Always consult with your REALTOR® BEFORE committing to upgrading your home.
#4 Choosing the wrong REALTOR® or choosing for the wrong reasons. Many homeowners list with the agent who tells them the highest price. You need to choose an experienced agent with the best marketing plan to sell your home. In the real estate business, an agent with many successfully closed transactions usually costs the same as someone who is inexperienced. That experience could mean a higher price at the negotiating table, selling in less time, and with a minimum amount of hassles.
#5 Using the "Hard Sell" during showings. Buying a home is an emotional decision. Buyers like to "try on" a house and see if it is comfortable for them. It is difficult for them to do if you follow them around pointing out every improvement that you made. Good REALTORS® let the buyers discover the home on their own, pointing out only features they are sure are important to them. Many sales are lost by overselling. If buyers think they are paying for features that are not particularly important to them personally, they will reject the home in favor of a less expensive home without the features.
#6 Failing to take the first offer seriously. Often sellers believe that the first offer received will be one of many to come. There is a tendency to not take it seriously, and to hold out for a higher price. This is especially true if the offer comes in soon after the home is placed on the market. Experienced REALTORS® know that more often than not the first buyer ends up being the best buyer, and many, many sellers have had to accept far less money than the initial offer later in the selling process. The home is most saleable early in the marketing period, and the amount buyers are willing to pay diminishes with the length of time a property has been on the market. Many sellers would give anything to find that prospective buyer who made the first, and ONLY, offer.
#7 Not knowing your rights and obligations. The contract you sign to sell your property is a complex and legally binding document. An improperly written contract can allow the purchaser to void the sale, or cost you thousands of unnecessary dollars. Have an experienced REALTOR® who knows the "ins and outs" fully explain the contract you are about to sign to you, or have your lawyer review it before acceptance.
#8Failure to effectively market the property. Good marketing opens the door that exposes the property to the marketplace. It means distinguishing your home from hundreds of others on the market. It also means selling the benefits, as well as the features. The two most obvious marketing tools (open houses and print advertising) are only moderately effective. Just 1% of homes are sold at open houses, and advertising studies show that only 3% of people purchased their home because they called on a print ad! Agents use these tools to attract future prospects, not to sell the house. The right REALTOR® will employ a wide variety of marketing activities, emphasizing the ones believed to work best for your home.
Being aware of these Big Time mistakes will help ensure
you receive top dollar for your home when the time
comes to sell your home!
Pre-Inspection
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SMOOTH MOVE MARKETING PROGRAM
When was the last time you crawled under the eaves of your attic? Checked your furnace’s heating chamber for cracks? Inspected the areas beneath your bathrooms for hidden wood damaging leaks? Looked for termites, wood borers and fungus?
Unless you answered “recently,” your buyer’s home inspector may be the first person to see these areas in years. Are you willing to bet your home sale he won’t find any problems? If so, just toss this letter aside.
But if you’d rather problem-proof your sale, keep reading to learn how Sandra Nickel’s Smooth Move program can eliminate post-contract inspection hassles and even put more money in your pocket at closing!
Long before your buyer’s inspector can make them into a really big deal, the Smooth Move inspection identifies all the pesky little items that need your attention in your home. If you’re handy, you will probably fix most of them yourself.
And should the Smooth Move uncover some larger problem, you’ll have plenty of time to get competitive bids. And you can have the work done at regular rates instead of paying time-and-a-half or even double time because closing is just a day or two away!
Eleven Mistakes Buyers Almost Always Make
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Eleven Mistakes Buyers Almost
Always Make When Purchasing A Home!
1. Making Too Low an Offer
You would be surprised at how many dream homes are lost because of the buyer’s inability to move a little on price, terms, or concessions. Remember that $5000 in today’s loan market increases your monthly investment $35.82 per month – the cost of an average dinner out and hardly a price worthy of giving up a lifetime of satisfaction. Follow your professional advice if you really want the property!
2. Not Using Your Real Estate Professional Team
Lenders, Abstract/Title, Inspectors, and Facilitators are all important members of the purchasing process. They must be the best and they must work together. Remember, your agent is the best coach in assembling the team!
3. Not Getting a Professional Inspection
Your real estate agent can point out obvious defects; the appraiser, whether FHA, VA or Conventional can also point out some defects. Therefore, we recommend a professional inspection (structural, mechanical, plumbing, electrical, etc.), who puts on the overalls and crawls below, in and above your future investment to write up a complete report.
4. Not Differentiating Needs, Wants, and Dreams
Write down your minimum needs, then the “what would be nice” items, then the “in my dreams” items. A great agent always fulfills your need without exceeding your financial capabilities, and usually surprises you with many of your wants and dreams.
5. Getting Financing to Match Your Ownership
When counseling with your agent regarding your purchase, your financing terms have to be consistent with your ownership. For instance, if you are not going to stay in the property long, then get a variable resistant financing so you have the lowest interest rate during your time of ownership, plus an assumable loan (probably) when you sell. Long Term ownership? Go for a fixed loan so you can lock in a market rate for 30 years.
The Value of a Real Estate Professional
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Value of a Real Estate Professional
Why hire a professional real estate agent to help sell your property? Do you have the time, experience, sources of information, and contacts to do the job yourself? Would it go as smooth as it could? Would it give you a more personal time? Would you obtain a higher price? Here are just a few areas in which a professional real estate agent earns his or her commission:
Pricing Considerations
A professional’s insight in determining a pricing strategy for your property can keep you from missing an opportunity by undervaluing or wasting time by overpricing. Experience evaluating competing properties and market trends is a first ingredient for the best transaction experience.
Marketing Expertise
· Preparation. Your agent is skilled in recommending repairs or cosmetic work that have proven to minimize time on market and maximize both prospect interest and sales price.
— Exposure to the public. Your agent will know how to use flyers, open house days, and especially mailing to and meeting with ex-clients and other qualified buyers. The National Association of REALTORS® studies show that that 82% of real estate sales are the result not of advertising, but of agent contacts through previous clients, referrals, friends and family, and personal contacts, including…
— Exposure to other industry professionals. Your agent will utilize a Multiple Listing Service or other cooperative marketing networks. Once your property is listed, it is statistically likely the buyer will be the client of another agent associated with yours.
— Advertising: media and frequency. It takes experience to know what works in advertising. Ads generate phone calls to the real estate office but statistically have minimum effectiveness selling a specific property. Overexposure of a property in any media may give a buyer the impression the property is distressed or the seller desperate.
Security
Working with a real estate agent ensures showings will be supervised. You can instruct unchaperoned buyers to call your agent for an appointment so they can be prescreened, you will be safe, and you can do your final polish before the showing.
Negotiating
— Middleperson. Most buyers prefer to negotiate with someone they perceive as an unbiased, not emotional, and professionally trained. They are more likely to express objections to agents with the hope of resolution, when they otherwise might move on to another property rather than talking to you directly.
— Objectivity. Evaluate proposals privately without compromising your marketing position.
Monitoring, Renegotiating and Closing or Settling
— Overwhelming volume of steps. The process of appraisals, inspections, and financing involves a lot of possible pitfalls. There are many required legal forms and processes.
— Experience reading and following escrow instructions. Instructions must be clear and complete. Your agent is the best person to objectively help you communicate these issues and move the transaction to closing (or settlement).
— Inspectors and other professionals. Your agent can meet specialists and negotiate regarding repairs needed to complete your contract. Industry contacts provide resources for workpersons in many areas with knowledge as to their historical skill and reliability.
Services for Home Buyers
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Services For Home Buyers
How do Brokers Earn Their Money?
1. Explain the benefits of a Buyers Broker/Agent.
2. Determine the approximate price range for which the buyer will qualify. This is called pre-qualifying, and includes an in-depth inventory of the buyer's resources, and a discussion about credit.
3. Describe how lenders and loan brokers work.
4. Explain the benefits and drawbacks of various standard kinds of financing.
5. Explain loan charges and their relationship the cost and rate of the loan.
6. Provide ideas for alternate methods of finance or purchase if necessary.
7. Explain the use and benefit of a lender pre-qualification letter.
8. Recommend several lenders or loan brokers who can provide a credit report, (and corrections if needed), eligibility documentation, liens, or any other preliminary work that should be done to make the buyers as strong as possible.
9. Go over in general your financial and personal plans, as they relate to real estate. Verify that your purchase will be compatible with both your long and short term goals.
10. Make a final determination that you can afford to buy the kind of property that will meet all, or most of your needs.
11. Discuss your motivation for buying, in order to insure that you buy a property that will best meet all of your needs. Buyers have been known to fall in love with a property, only to admit later that it is too expensive to maintain, too long a commute, or in some other way not a good choice.
12. Provide a copy of the Real Estate Relationships Disclosure.
13. Review the Real Estate Relationships Disclosure.
14. Provide a copy of the Real Estate Consumer Guide.
15. Provide a copy of the Buyer Brokerage Agreement.
16. Review the Buyer Brokerage Agreement.
17. Explain commission agreements as stated in Buyer Brokerage Agreement.
18. Provide an Agency Agreement Addendum.
19. Explain the Agency Agreement Addendum, as needed.
20. Assist in developing a prioritized list of the criteria you can use to select the best home for you.
21. Help you keep on tract with your criteria when analyzing the pros and cons of various properties.
22. Inform you of possible tax benefits, and or ramifications of your purchase.
23. Explain how the structure of your purchase agreement may affect you financially.
24. Help you select the most advantageous time
a) to make an offer.
b) to close your escrow.
25. Provide a copy of the purchase agreement form before the time comes to sign. This gives you time to familiarize yourselves with it.
26. Provide a good understanding of potentially appropriate neighborhoods in your price range.
27. Provide rating data about local schools.
28. Provide locations and characteristics of shopping areas.
29. Provide information about local and regional transportations systems.
30. Share information about available parks and recreation.
31. Explain what sports facilities and programs exist locally.
32. Tell about various churches and religious institutions in the area.
33. Provide facts regarding any existing or possible negative aspects of all areas you are considering.
34. Explain how the Realtor Multiple Listing Service for appropriate homes.
35. Search properties listed in the Multiple Listing Service for appropriate homes.
36. Examine local newspapers for appropriate properties.
37. Check Home Finder magazine for appropriate properties.
38. Search the Newspaper classifieds for homes.
39. Look through Home Journal magazines for appropriate properties.
40. Review our own personal list of homes that are not on the market, but which we know could be available.
41. Check our list of For Sale By Owner Homes for properties which may not suit your needs.
42. Contact owners of property and arrange to show homes to you.
43. Efficiency show appropriate homes.
44. Share any personal knowledge about local history, weather, political activity or other factors which may affect your decision.
45. Explain and define real estate terminology as needed throughout the buying process.
46. Discuss the benefits and liabilities of various styles of home types of materials and construction.
47. Describe how the orientation of the home on the property affects its function, comfort and energy usage.
48. Help you find a Diamond in the Rough. That is, show you how to add value to a home that may not be perfect, but has most of the
features you require.
49. Act as a sounding board, in your decision making process.
50. Provide information about the sellers motivation for selling, if known.
51. Provide a comparative market analysis to determine an appropriate offering price.
52. Write an offer which will best meet your needs and protect your interests.
53. Provide explanation of particular clauses of the agreement if needed.
54. Explain the lenders appraisal process.
55. Provide a written estimate of the costs to close the escrow, including down payment, and monthly payment under the terms of your offer.
56. Be sure that the events and conditions agreed upon in the contract can be realistically performed within the time limits provided.
57. Explain how offers to purchase property are presented.
58. Make an appointment to present your offer.
59. Present your offer to the seller in a business like manner.
61. Respond to seller objections with minor modifications which allow the seller to accept, while not significantly altering your position.
62. Recalculate costs, and monthly payments, in the event of a counter offer from the seller.
63. Verify representations by the seller, such as, the existence of a building permit for improvements.
64. Provide professional negotiating experience.
65. Help remove negotiating obstacles before they arise by knowing the financing and escrow process.
66. Suggest minor modifications which may allow the seller to accept the offer, and which may not make a significant difference to the buyer.
67. Suggest several reputable service companies for a house inspection.
68. Provide several companies who can supply a Pest control Inspection.
69. When there is a well, give list of respected Well Inspection and Testing Companies.
70. Provide the names of good Chimney Inspection Companies we have worked with in the past.
71. Suggest a number of reputable Roof Inspection Companies.
72. Make arrangements for the various inspections, as required.
73. Be present if possible, when these inspections take place to add clarity to the written reports. Inspections usually take place during the workday.
74. Help interpret which report items are serious, and which are relatively minor.
75. Assist in finding the least costly solutions to problems revealed in the reports.
76. Re-negotiate with the seller to pay for items which are important, or a matter of health and safety.
77. Arrange, as requested to have another expert give an opinion in a case where experts express differing opinions.
78. Arrange for repairs, as necessary.
79. Provide a Sellers Disclosure Statement in a timely manner.
80. Review Sellers Disclosure Statement for items of concern.
81. Provide a Lead Paint Disclosure in a timely fashion.
82. Explain Lead Paint Disclosure form.
83. Gather more information about any items on that disclosure which may be of concern to the buyers.
84. Rewrite the contract, if needed.
85. Explain the use of title escrow company.
86. Explain escrow accounts.
87. Deliver earnest money to listing broker.
88. Go over terms, price and projected closing date with escrow officer.
89. Inform the officer of all parties to the transaction, and how to contact them.
90. Order a Preliminary Title Report.
91. Review the Preliminary Title Report when received to look for clouds on the title, unforeseen liens, easements or encroachments. Any of these could delay closing.
92. Explain Covenants, Conditions and Restrictions, as appropriate.
93. See that the pending sale has been reported to the Multiple Listing Service.
94. Closely follow the deadlines listed in the contract, assuring that buyer and seller perform as agreed. A critical task, as an error in timing can nullify the agreement.
95. Work with the lender to provide information and approvals within the agreed time frames.
96. Provide regular weekly updates on escrow progress to buyer and to sellers agent.
97. Arrange for buyer to see property again as needed for measuring, improvement plans, furniture placement, etc.
98. Explain the protections provided by a Home Warranty Plan.
99. Order a Home Warranty, if requested.
100. Explain Home Owners Insurance requirements.
101. Assist in arranging for Home Owners Insurance, if requested.
102. Provide a list of moving companies, and information regarding the rates, and the services they provide.
103. Provide a list of the telephone numbers of local gas, electric, water and garbage service companies, also the phone company.
104. Arrange a smooth transition of the change in utility service from seller to buyer.
105. Help the buyers locate temporary housing if needed.
106. Assist the buyers in locating local reliable child care.
107. Arrange the exact times when the seller will leave, and when the buyer will move in. As the close of escrow approaches, very often, events beyond the control of either buyer or seller sometimes dictate minor adjustments in the original plans.
108. Negotiate for buyers if the escrow process takes longer than expected, and an Early Move-In Agreement is required.
109. Conduct a final walk through inspection of the property to be sure nothing has been changed since the purchase agreement was ratified.
110. Make arrangements to rectify any problems discovered during the final viewing.
111. Provide written explanation of the various ways to hold title to real property.
112. Provide the names of at least three attorneys who can explain the ramifications of holding title.
113. Explain closing papers.
114. Explain loan documents.
115. Explain closing statements
116. Check closing statements for accuracy.
117. Arrange for wire transfers of funds as necessary.
118. Pick up closing documents and final refund check for delivery to buyer after close of escrow.
119. Attend closing with buyers to help explain any questions.
120. At all times protect the buyers interests.
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How a REALTORŪ Can Help You
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Selling your home?
It's a complex transaction that takes time, effort and expertise. It takes a real estate professional.
Here's how a REALTOR® can help you:
A REALTOR® knows the current real estate market and can help you set a realistic, competitive price.
A REALTOR® is familiar with the local home loan market, knows if seller assistance is advisable, and can help you decide the type of financing that's best to expedite your sale.
A REALTOR® knows how to figure the approximate net proceeds from your sale, based on types of loans, your outstanding balance, and closing costs.
A REALTOR® knows how to add sales appeal to your home at low or moderate cost.
A REALTOR® knows where to find prospective buyers. Most homebuyers prefer to work with a real estate agent. Serious prospects are 'qualified' as to their affordable price range before they are shown through your home.
A REALTOR® can tap an even larger market, if necessary, through referrals and marketing techniques.
A REALTOR® frees you from the problems associated with showing your home. The REALTOR® handles all phone inquiries, makes appointments, and does the actual showing and follow-up. Your time is your own and your home is not exposed to anyone who has not been pre-qualified.
A REALTOR® is a skilled salesperson who knows how to merchandise your home effectively.
A REALTOR® maintains objectivity in responding to possible criticisms by the buyers and in presenting offers and counter-offers until an agreement is reached.
A REALTOR® knows how to help the buyer meet local financing requirements and go about obtaining a mortgage loan.
A REALTOR® can familiarize you with the closing procedures by explaining them all in advance.
A REALTOR® usually attends the closing with you.
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