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How many professionals have you worked with that offered you a no-money-up-front 100% satisfaction guarantee? Listing your home with a qualified real estate agent gives you just such an agreement – you don’t pay the agent if your home is not sold!
What does the agent offer in return for your confidence? Extensive training and experience with financing, law, marketing and more. The security of knowing that only qualified, pre-screened prospects will enter your home for showings. Relationships with most every other agent in your area who can bring the right buyer to you. Availability 24 hours a day seven days a week for both you and potential buyers.
The list goes on, but one of the greatest “no risk” services that the agent offers is his or her extensive knowledge of how to appropriately market your property. There is no “one size fits all” method of promoting a home – every home is unique and demands an equally unique marketing plan.
A successful campaign includes all forms of advertising, PR, and hands-on selling techniques. Advertising alone is never enough, because the ad does not sell the house; it merely draws the right people’s attention to it. Then the agent causes the house to sell by using knowledge and experience to best promote the qualities of your home. All this at no risk to you!
1:33 PM - Sep. 3, 2008 - {0} -
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In 1999, the world’s fastest human ran the mile in 3 minutes and 43 seconds. Most fit individuals would take 5-7 minutes. Suppose someone said, “I’d like to give you $1 million, but first you’ll have to run the mile in 2 minutes and 50 seconds.” Sounds a bit unreasonable, doesn’t it?
Now, imagine that type of scenario in real estate. Say you want to sell your home, and the average sale time at present is 131 days. Your agent explains how your home will be marketed, suggests a price, and explains the probable sale time. You say, “Great, I’d like to list my home with you, but only for 90 days. Sell it in 90 days and I’ll pay your fee. Any longer and you’re out!”
If you were the agent, what would be your thoughts? “Hmmm. The owner is asking me to expend the usual energy, skill, and promotional costs to sell the home, but is only offering a limited time to effect the sale. I know this is highly unlikely to occur. I think I’ll pass.”
The best agents don’t need an excessively long period to sell a home, only a listing period that mirrors the current average marketing time in the local market. When selling, don’t short-change your own sale by placing unreasonable limits on your agent. Be informed, and then let the agent work for you.
1:42 PM - Aug. 11, 2008 - {0} -
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Have you discovered that you (and your family) have to relocate? Even if you've contacted a real estate agent, found a great home, and feel prepared for the move, your children may not share your enthusiasm.
Experience shows there can be two emotions at play, depending on your child's age - fear or anger. Young children may fear the unknown - where will they go to school? How will they make new friends? Where will they play and have fun?
Show them how they'll continue all their activities in their new community. Visit the school, spend time in the park, and drive them through the neighborhood where other children are playing.
If you've got teenage kids, you may face resentment about moving. They feel more established in their schools, sports, and friendships. Accentuate the positive - maybe the sports program is one of the best in the state, and maybe their best friend can visit over school break.
If you can move during the school year, so much the better. They'll immediately begin to make new friends, instead of spending potentially lonely months during a summer vacation.
Explain that you're making transitions in your activities and relationships, too, and how excited you are to develop new interests and learn about your new home together. Children are amazingly adaptable - they may just surprise you! Enjoy your journey together!
12:01 PM - Jul. 21, 2008 - {0} -
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Minor or cosmetic repairs are inevitable when preparing to sell your home. Such projects are usually inexpensive and don’t require much time or effort. But what about bigger repairs going beyond the aesthetic but not approaching the level of health or safety hazards?
Whether or not you “take care of business” before listing depends on the market situation, and an experienced real estate agent can advise you on whether or not the repairs will benefit your sale time and price.
If you are in a “hot” market, you may not need to take any action, but in today's buyer’s market, you have to make repairs just to compete. First-time buyers and those with busy schedules won’t even consider a home in need of repairs – they simply don’t have the time. Condition is everything, and experience proves that the homes in the best condition sell faster and for a higher price.
Anticipate the inspection report – many home sales include a clause that allows the buyers to withdraw an offer if the report is unsatisfactory or needed repairs are left unfinished. If they don’t back out, buyers will offer significantly less in anticipation of their repair costs.
If you’re in a lower end market, over-improvement can be an issue you want to avoid, but most sellers realize that “new” or “newly replaced” will be music to the buyer’s ears, so play on!
12:14 PM - Jul. 7, 2008 - {0} -
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Ready to begin your home search? You probably have a good idea of exactly what you want and which amenities are most important to you. However, be prepared to compromise, because there’s a chance you won’t find the “dream home” you’ve imagined with everything you desire.
Be careful not to avoid looking at a home because you’re not impressed by the exterior. Not every seller takes the time to repaint siding and landscape the yard before putting the For Sale sign out.
In many cases, the sellers have done work on the interior first, so give it a chance and take a peek. Remember that your own paint and landscaping can transform an otherwise wonderful home into exactly what you want. If nothing else, use it as a basis for comparison when you look at other homes!
What if you find a nice home that needs some repairs? Don’t let worn carpeting or loose tiles stop you from making an offer. In many cases, you can get the sellers to repair mechanical and structural problems, but don’t sweat the little stuff.
Remember too that repairs or cosmetic improvements that you handle yourself will be done exactly to your specifications and wishes. Try to be flexible and look at a variety of homes that the agent believes will meet your needs. It will be time well spent!
9:37 AM - Jun. 20, 2008 - {0} -
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Have you done your home-buying homework? Save yourself time, money, and heartache by doing research before you begin your hunt, and when you’re ready to make an offer. Consider all the consequences of your dream home’s affordability, location, value, and ownership.
Begin by gathering and analyzing your financial information – assets, debts, income, and the almighty credit report. You’ll need a firm and realistic understanding of what you can afford, and you’ll benefit from securing “pre-approval” of your loan. Spend your valuable time looking at houses within your budget.
You’ve heard it before – the three most important factors in real estate are location, location, and location. Know the community, because you’re not just buying the house – you’re buying the neighborhood! Look ahead to the day you’ll eventually resell. How marketable will the home be when that time comes?
Found a home you love? Compare its value with similar homes that have recently listed, sold or expired. Ask the agent for a Comparative Market Analysis and make a solid and reasonable offer based on those facts, not necessarily the seller’s asking price.
One final consideration – the responsibilities of home ownership. Remember that it doesn’t end once the checks are in escrow. Now you’re ready for insurance, property taxes, improvements, maintenance, and more. When you’re ready, talk with a professional you can trust for advice on these all-important issues.
2:06 PM - Jun. 3, 2008 - {0} -
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In every real estate transaction, there is a written set of "instructions" called a "Contract of Sale" or "Purchase Agreement." It is the document signed by both buyers and sellers, and contains details of their agreement.
The contract begins as a purchase "offer," and contains the terms of sale proposed by the buyers. This includes the "offered" price, the terms of payment, a closing date, the possession date, and other information. It may also spell out what personal property, if any, is to be included in the purchase price.
If accepted by the sellers, this document becomes a binding contract. If not, negotiations will continue between buyers and sellers until agreement is reached. At that point the acceptable written document becomes binding on both sets of parties.
The contract then becomes the basis for all further activities leading up to a final closing of the transaction. Attorneys, mortgage lenders, surveyors, title companies, and others involved all work to carry out the terms of that written document.
Because of the many details involved in a real estate sale, all agreements must be in writing to be enforceable. If they weren't, the slightest disagreement between buyers and sellers could cause an impasse, possibly resulting in a "no sale."
It is very important that both buyers and sellers are certain their agreement reflects their intentions. The time for negotiation is before the contract is signed, not after.
If the sellers want to dig up their prize rose bush and take it with them, even that should be included in the contract. When in doubt about whether an item is to be included in the sale, ask your real estate professional for a clarification, and then include it to be sure.
Contracts and real estate go together. They assure both sellers and buyers of a smooth closing, and a satisfying real estate transaction.
12:02 PM - May. 27, 2008 - {0} -
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Whether buying or selling real estate, you will eventually come face to face with the one document which transfers title from seller to buyer - the "deed." The actual transfer of ownership officially takes place when the deed has been "signed, sealed, and delivered" to the purchaser.
Historically, under English common law, the transfer of real estate took place in a ceremony called "livery of seizing." The owner would meet the purchaser on the land, and hand over a twig or clod of dirt. Although a written statement of the sale followed, it was the ceremony that signified a sale had taken place.
Today it is the written document, the deed, which marks the conclusion of the sale. It is said that the seller is the "grantor" in the sale - granting all rights and privileges of ownership to the purchaser. The buyer is known as the "grantee."
To be valid, a deed must be in writing, and name both the grantor(s) and grantee(s). It is signed only by the grantor(s), however. Furthermore, the grantor must have the legal capacity to convey ownership. Having legal capacity means that the grantor is of legal age to make a conveyance, and is of "sound mind." Since both minors and insane persons can avoid their contracts, no one should propose a transaction that includes them.
Deeds should be drafted by an attorney. A good deed also contains a "legal description" of the property being conveyed. The property must be described so as to leave no doubt about exactly what real estate is being transferred. It must also contain certain legal conveyance language.
This important document should be recorded, and then kept in a safe place. It is the buyer's sole proof of ownership.
8:46 AM - May. 17, 2008 - {0} -
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Whether you are the buyer or the seller, negotiation skills are crucial to a successful real estate transaction. You’ll find that a real estate agent provides the experience, tools, and skills necessary to “strike a deal” with the other party, other agents, and other professionals who are all involved in such a transaction.
Every negotiation should follow a step-by-step formula, beginning with preparation and ending with a proposal that has been accepted by all. It’s best to spend most of your time on the “preparation” phase, since this will greatly reduce the time and stress involved in the “bargaining” phase down the road.
The proposal, or Offer To Purchase, is produced when the buyers have done their “prep work” and the sellers can now begin bargaining if they choose. This is where it’s very important for both sides to have a clear understanding of all the aspects involved, and you’ll want to be sure to have the experience and training of a real estate professional to promote your best interests.
Bargaining or negotiating is all about gains and concessions, and the more educated you are about both sides of the transaction, the better your chances are to reach a nice, smooth, mutually acceptable conclusion. While all the decisions are ultimately yours, doesn’t it make sense to have a real estate professional on your side?
12:51 PM - May. 4, 2008 - {0} -
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When beginning your home search, you should have a good idea of the features you want - the number of bedrooms and baths, a large or small yard, modern kitchen or office space. Even more important, however, is where it will all be located. The community in which you will live will determine your whole way of life.
Do you have or plan to have a family? Consider proximity to schools and how many other children are in the neighborhood. Have a job in town? Think long and hard about your commute. What shopping and dining options are close by?
Even if you don't have a family, it's still wise to select a neighborhood in or near a district with good schools. No matter what your plans, you should always be considering the potential resale value of your home. Future buyers will likely put good schools near the top of their priority list.
Be aware of how much homes in the area have appreciated over the last few years to get a good indication of the quality of the neighborhood. Of course, a real estate professional in the area will be very familiar with all the communities that interest you - their character and strengths and weaknesses. Aside from driving around and talking with residents, the agent is your best source of information for making this all-important decision!
11:29 AM - Apr. 28, 2008 - {0} -
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You’ve heard it a million times, but it’s a cliché because it’s true – First Impressions Count. And even though “Don’t judge a book by its cover” is also a popular cliché, buyers tend to ignore that one when comparing potential home purchases.
Put yourself in the buyers’ shoes and step out to the curb to take a look. See anything that might not make the impression you desire? Consider the following “first glance” improvements.
The front door should be inviting – paint or stain the entrance if it shows signs of chipping or peeling. Have a front porch? Dress it up with container gardens and sweep regularly, making it an attractive “outside room.”
Check for other signs of peeling paint around the exterior and touch up where needed. Remember that buyers will be comparing your home to other similar homes, and every little detail that makes yours more appealing will pay off.
Of course, your landscaping makes an obvious first impression, so remove any dead or dying debris, fertilize the lawn and plant some flowering bushes if you need a little color.
Finally, your home looks great, so make sure it’s well lit for the show! Don’t overdo it, but do offer a well-lit doorway and walkways, and even “uplight” your better landscaping elements. If you show buyers “We love this home,” then so will they!
11:13 AM - Apr. 19, 2008 - {0} -
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Learn this up front . . . who represents whom?
In a very high percentage of all home sales, a real estate agent is involved. To buyers and sellers alike, it is important to know whom the agent is representing.
Where agents are employed by, and thus represent, the interests of property owners, the sellers pay the agent a fee in exchange for the agent's expertise in locating suitable buyers for their home. The agent has a fiduciary relationship with the sellers, and an obligation to pursue a course of action in their best interests.
When the agent represents the sellers, what relationship exists between that agent and any buyers who are shown the home? The relationship is that of a salesperson/customer. The agent is obligated to treat the customer honestly and fairly, but is clearly looking out for the best interests of the property owners.
Can buyers hire an agent to represent them? They certainly can. Just as homeowners sign an exclusive listing agreement with their agent, buyers can hire the services of an agent by signing an exclusive buyer agency agreement. The buyer has the right to expect the agent to negotiate a purchase in their best interests, paying special attention to price, terms, inspections, and closing details that benefit the buyer.
Homebuyers who employ a buyer's agent also have the obligation to compensate the agent for services rendered. There are a variety of compensation plans that should be discussed directly with the agent.
Dual agency is a third alternative. In dual agency, buyers and sellers are represented by the same agent, a situation that carries with it an inherent conflict of interest. When buying or selling a home, ask the agent who is being represented, then proceed with an informed decision.
11:38 AM - Apr. 9, 2008 - {0} -
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There are many ways to improve your chances of a quick, full-price sale, but understanding a few of the most basic foundations makes the whole experience more enjoyable and profitable.
First realize that price is everything. Your home is being compared to similar homes in your area. Cosmetic improvements don’t necessarily mean that you can demand a higher price. What if you just spent $3,500 installing premium carpeting and the potential buyers are dreaming of wood floors?
Related to pricing is handling repairs. Ideally, your real estate agent has “walked through” your home and made suggestions for both cosmetic and possibly more serious repairs. A rule of thumb states that buyers will offer $2 less for every $1 of needed repairs. Take care of what’s necessary and move on.
Finally, one of the most misunderstood concepts of successfully showing your home is that you should not be there when an agent shows it! Of course you’d love to witness the reactions of prospective buyers, but your presence will make them feel more like guests and less like would-be owners. Give the agent a chance to field their questions about pros and cons, and provide answers that will put them at ease.
These three considerations are just the beginning to a speedy and successful sale. Discuss the entire marketing plan with a professional and list with confidence!
1:57 PM - Mar. 21, 2008 - {0} -
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Buy a home and you may experience an unusual real estate malady. This strange condition tends to strike within twenty-four hours of signing a purchase contract, yet when left untreated, usually disappears within a few days.
What is this mystifying ailment? Known by two names - “first-night jitters” and “buyers' remorse,” it is a state of mind sometimes marked by confusion, doubt, and anxiety.
Buying a home involves emotionally charged situations. Decisions about location, style and size home required, and price may require intense reflection.
The home search itself can take weeks of looking, inspecting, and deliberating, and compromises may be necessary. Family members may not be in total agreement. Nevertheless, a firm choice is made and a purchase contract negotiated and signed. What happens next, however, can be unnerving.
With a solid contract in hand, the buyers may almost immediately begin questioning their purchase. Is the home large enough? What if the loan isn't approved? Was that other home a better buy?
Those questions, accompanied by feelings of doubt, are quite normal. Buying a home is a big decision, and getting the “jitters” should not be cause for alarm. If questions persist, buyers should ask the agent for clarification. The best cure for buyers' remorse is to relax and look forward to the move!
2:29 PM - Feb. 29, 2008 - {0} -
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Vince Kleinknecht, Realtor ®, licensed appraiser, and manager of Peddicord Rice Auction Realty in Dresden, joined with hundreds of top real estate agents around the country to write “Real Estate in 2008” in less than a month.
“Real Estate in 2008” (www.realestatein2008.org) helps buyers, sellers, and agents succeed in a challenging 2008 market by providing hundreds of ideas from top agents. Chapters include ideas on how to find motivated buyers, how to help buyers to buy, how to guide sellers to price/position their homes, and other creative ideas from all around the country. These are ideas from top real estate agents who collaborated in an industry-wide effort which was launched during the National Association of Realtor’s (NAR) conference in November 2007.
Vince provides a number of ideas as to why buyers should buy in 2008 and how sellers can prepare, price and position their homes to be sure they get sold in 2008. “Sellers must present the best possible product to the marketplace,” said Vince. “High inventory and a finite amount of buyers equal a very competitive market into the foreseeable future.” Vince adds “For buyers, there is no better time to invest than today. Interest rates are low, and selection is at an all time high.”
“Vince contributed some great ideas to the book and shared his knowledge with other agents and consumers,” said Steve Kantor, President of Best Agent Business and author of Billion Dollar Agent – Lessons Learned. “Hundreds of top agents around the country brainstormed and contributed ideas to write Real Estate in 2008 in record time. We wanted to help agents, buyers and sellers make the most of the 2008 real estate market.”
Vince Kleinknecht has been a Realtor for 21 years and is with Peddicord Rice Auction Realty. His website, www.kleinknecht.net, provides detailed information and buying and selling tips for the area.
OK....now you have researched the local real estate market, put a plan of attack together, had an offer accepted, secured financing and finally purchased a property. How do you make sure your investment becomes profitable?
Here are a few of the major obstacles to avoid when you have finally bought your investment property.
Finding Good Help…
Whether you have a fixer you are getting ready for resale or a rental you are holding on to long term you are going to need to deal with repairmen and/or contractors. Finding a dependable handyman that can do most repair work without costing you a fortune is crucial, but not easy to find. Don’t go straight to the yellow pages and call the big ads. They generally have high overhead and will cost you too much for your repairs.
A good place to look for affordable in your local newspaper to under the services guide and test a handyman out on a small project before scheduling a large job.
Also ask around between your friends colleagues and family. Many times someone you know may know someone that does great work, but doesn’t advertise his service. If they work well and get the job done on time and within your budget then you have found yourself a winner!
Make sure they understand that you are most interested in getting a realistic time frame for your projects and that you fully expect the project to be completed within the quoted time frame.
Holding costs are your biggest enemy in the real estate game. The quicker you can get work done, the lower your overhead and the larger your profits.
Renting to Tenants…
The biggest mistake a landlord can make is not doing a thorough credit check on the prospective tenant.
Always make sure to do a credit check on any applicant that is interested in your house. Make sound business decisions on who you rent your house to. You will hear every sob story in the book on why you should rent to one individual over another.
Waiting for an individual or family that has decent credit and rent history can save you hours of headaches and hundreds or thousands of dollars. Here are some good tips to follow when renting your property:
Always get a damage deposit. When tenants move out they will do a much better job of getting the house back to move in condition so they can get their deposit back.
A damage deposit should be between one half a month and one months’ rent
Take many photos of the property before the tenant moves in that shows the good condition of the property. Show the tenants that you have these photos in your file and that you expect the house to be returned in like condition. Just the fact that they know you have the photos may help them take better care of the property.
Go through the complete rental agreement with the tenants before they move in. Too many times contracts are hurriedly signed on the car hood so you can take the money and get it in the bank.
Schedule a time to go through the contract fully with them even if it takes an hour or so out of your life; most times it will save you countless hours and dollars in later frustrations.
Let your tenants know this is a business you are running and that you expect them to fully follow the agreement.
Make sure they understand you will be collecting late fees if the rent is late. Let them know you expect the property to be treated as if they owned it themselves.
Walk through the property with the tenants before they move in. Have them make note of anything that is in disrepair and write it down.
It is easy to forget details so the more details you have written down the less confusion there will be when the tenant moves out.
The property is your investment, but investing some time in implementing systems for putting your tenants in the property will give you huge rewards in the future, and make your business run much more efficiently in the coming months and years.
Follow these tips and you will be starting your business out on the right path.
12:55 PM - Jan. 29, 2008 - {0} -
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Ever had an ailment? When you did, whom did you choose for treatment? Did you select a trained, licensed practitioner with excellent credentials or a witch doctor?
The first will take a close look, run tests, ask questions, and then prescribe a course of treatment. Applying education, training, and experience, your doctor would provide valuable advice and the treatment most likely to cure your ailment. You would expect results – but not a miracle. Conversely, if you didn’t follow the doctor’s advice, it shouldn’t surprise you when the ailment remains uncured.
In the case of the witch doctor, you might be told what you wanted to hear. Furthermore, you might be tempted to believe all the mumbo-jumbo, yet aren’t likely to recover from your ailment.
Selling your home is no different. If you’re looking for the “magic pill” or “miracle” that will bring you an uninformed buyer with plenty of cash, willing to pay double the value of your home, forget it! It won’t happen.
To sell successfully takes the knowledge, training, and experience to attract qualified homebuyers. Share your objectives, be willing to apply the advice you receive, and a pleasing sale will likely follow. Ignore professional advice, overprice your home, offer it in average condition, or otherwise wish for miracles and - well - you get the picture.
11:53 AM - Jan. 5, 2008 - {0} -
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I would like to take a moment to wish you all a Happy, Safe and Prosperous New Year. Together, lets' make 2008 the best year ever.
2008 will be an amazing year at Kleinknecht Real Estate Consulting with our focus being on getting MORE OF YOUR EQUITY IN YOUR POCKET when selling... Impossible you say??? Very Possible I say !!
We'll be announcing a new sales concept in the coming weeks. We hope you will be able to utilize these new services, but know one thing; we are here to help, no matter what!
I'd like to be the invaluable real estate resource you can utilize whenever you need one.
1:33 PM - Dec. 31, 2007 - {0} -
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When you visit the first home on the list of prospective properties, make mental and written notes in two areas. The first is whether or not the home matches your list of features, size, style, price, etc. The second is whether the home “feels” like your kind of home. Is it comfortable? Does the traffic pattern “flow”? When you visit the second home, follow the same routine.
Now, here’s where you can simplify the choice. Before continuing to the third house, compare the first two only. Play a mental game with yourself by saying “If I had to make a choice today, and the only two choices were the homes I’ve just seen, which one would I choose?” Don’t continue to the third home until you’ve made that choice.
Repeat this process after seeing each home, comparing the one you’ve just seen with your previous choice. This eliminates unnecessary procrastination and confusion. At the end of the day, the right choice should be clear.
9:00 AM - Dec. 21, 2007 - {0} -
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Ever heard the expression that "a camel is a horse created by a committee"? If so, and you have ever served on a committee, you can understand the humor in that statement. It seems that the more people are put in charge of making a decision, the greater the chances that no decision will be made.
Buying a home requires a decision of major proportions. It should not be taken lightly, nor should it be allowed to become a "committee" decision. If you plan to purchase a home, try limiting the number of individuals who will be involved in the final decision.
If only you and your spouse will live in the home, and none of the downpayment or other costs will be borne by others, avoid involving other relatives in your search for the right home.
Small children might also be included in the group of non-decision-makers. A home search may involve a half-day or more of short visits to a number of homes. This can wear on the patience of children as well as parents.
Ask questions, expect answers, and become knowledgeable about the homes you see. Then, make an informed decision. Only when you have signed a contract to purchase the home of your choice - once the decision has been made and acted upon - then you can tell the world!
2:24 PM - Dec. 17, 2007 - {0} -
View more entries tagged with: Real Estate Commentary
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