What’s Going on With the Bidding Wars?

What’s Going On with Bidding Wars? | MyKCM

In a strong seller’s market, like the one we have experienced over the past few years, bidding wars are common and expected. This makes sense! A seller’s market is defined as a market in which the inventory of homes for sale cannot satisfy the number of buyers who want to purchase a home.

According to the Cambridge English Dictionarybidding wars occur when two or more parties repeatedly outbid each other as they compete to purchase something- in this case, a home.

In some areas of the country, first-time buyers have been met with fierce competition throughout their experience. Some have been out-bid multiple times before finally winning a bid on a home to call their own.

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), there is currently a 3.7-month supply of homes for sale.

With the current number of houses listed for sale and the level of demand from buyers, this means it would take 3.7 months for all the homes listed to sell if no additional listings came to market. Any supply number under a 6-month supply is considered a seller’s market. According to NAR, the housing market hasn’t had a 6-month supply of homes for sale since August 2012.

Good News for Buyers

A recent report shows that the percentage of houses sold including a bidding war before settling on a final price decreased from 53% in January of 2018 to 13% this year.

One reason for the decline is an influx of homes being listed for sale. Even though the month’s supply number is not increasing, the number of homes for sale is. The chart below shows the year-over-year change in inventory over the last 12 months.

What’s Going On with Bidding Wars? | MyKCM

As you can see, the number of homes for sale has started to build over the last eight months. Prior to this reversal, inventory levels had fallen for 36 consecutive months when compared to the year before.

Danielle Hale, realtor.com’s Chief Economist, gave some insight into why bidding wars are less common on a local level this year,

“[Last year] you might have been the only listing in your neighborhood, and you could put your home up at a certain list price and you would likely see multiple offers at or above that list price. That tide is turning this year.

It’s going to depend on what neighborhood you’re in, but we expect it to be more common this year that you won’t be the only listing.”

Inventory in the luxury and premium markets (the top 25% of listings in an area by price), is increasing at a greater rate than the starter home market. As the choices buyers have continued to increase, the likelihood of a bidding war will decrease.

Bottom Line

For sellers.  If you are debating listing your house for sale this year, you may not want to wait for additional competition as inventory continues to rise!  Contact me if you have any questions at all regarding the home selling our buying prces

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What’s Going on With the Bidding Wars?

What’s Going On with Bidding Wars? | MyKCM

In a strong seller’s market, like the one we have experienced over the past few years, bidding wars are common and expected. This makes sense! A seller’s market is defined as a market in which the inventory of homes for sale cannot satisfy the number of buyers who want to purchase a home.

According to the Cambridge English Dictionarybidding wars occur when two or more parties repeatedly outbid each other as they compete to purchase something- in this case, a home.

In some areas of the country, first-time buyers have been met with fierce competition throughout their experience. Some have been out-bid multiple times before finally winning a bid on a home to call their own.

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), there is currently a 3.7-month supply of homes for sale.

With the current number of houses listed for sale and the level of demand from buyers, this means it would take 3.7 months for all the homes listed to sell if no additional listings came to market. Any supply number under a 6-month supply is considered a seller’s market. According to NAR, the housing market hasn’t had a 6-month supply of homes for sale since August 2012.

Good News for Buyers

A recent report shows that the percentage of houses sold including a bidding war before settling on a final price decreased from 53% in January of 2018 to 13% this year.

One reason for the decline is an influx of homes being listed for sale. Even though the month’s supply number is not increasing, the number of homes for sale is. The chart below shows the year-over-year change in inventory over the last 12 months.

What’s Going On with Bidding Wars? | MyKCM

As you can see, the number of homes for sale has started to build over the last eight months. Prior to this reversal, inventory levels had fallen for 36 consecutive months when compared to the year before.

Danielle Hale, realtor.com’s Chief Economist, gave some insight into why bidding wars are less common on a local level this year,

“[Last year] you might have been the only listing in your neighborhood, and you could put your home up at a certain list price and you would likely see multiple offers at or above that list price. That tide is turning this year.

It’s going to depend on what neighborhood you’re in, but we expect it to be more common this year that you won’t be the only listing.”

Inventory in the luxury and premium markets (the top 25% of listings in an area by price), is increasing at a greater rate than the starter home market. As the choices buyers have continued to increase, the likelihood of a bidding war will decrease.

Bottom Line

For sellers.  If you are debating listing your house for sale this year, you may not want to wait for additional competition as inventory continues to rise!  Contact me if you have any questions at all regarding the home selling our buying prces

Top Interview Questions to Ask a Buyer’s Agent!

 

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Savvy home buyers, like you, interview multiple buyer’s agents before deciding on whom to hire. It’s in your best interest to ask them some or all of the following questions to gauge their knowledge and whether or not they fit with your needs.

Take a look below at our list of the best questions to ask a real estate agent and let us know if there are any additional questions that you have found valuable when interviewing agents.  

Basic Questions

Are you full time?
You don’t want someone doing this as a hobby. Ask which MLS the realtor belongs to.

How long have you been in residential real estate sales?
While newer agents can do a great job for buying (especially if they are part of a reputable team), a good standard is at least 3 years of experience of buying in your area.

How many homes have you bought or sold in my area in the past year? Are you knowledgeable about my area?
There is no right or wrong answer to this question either, but you probably don’t want someone who has sold 1-2 properties in an area that has hundreds of listings a year. There’s no issue with people learning, but it probably shouldn’t be at at your expense.

Do you typically work in my price range?
Most agents can work across a wide variety of prices, but if they typically help home buyers purchase $2 million homes or more and you have a strict budget at $600,000 home, then they might not make you a top priority. Similarly, if you want to purchase a luxury condo but they typically work with single family homes, they might not know the market or have the right connections to buy your dream home.

What is your strategy to meet my needs?
There are a multitude of sub-questions to ask within this question. There are basic questions such as “How will you help me search for my home?” to advanced questions such as “How do you handle multiple offers in a seller’s market?” Here is where you will be given the widest variation in answers that will help you separate the strong agents from weak ones. The local experts we bring you will customize their search based on your needs. In addition, we only work with buyer’s agents who are well connected with top listing agents, and may even be able to connect you with pre-MLS homes before they’re officially listed.

What other professionals do you typically partner with to help me buy a home?
A good agent doesn’t do everything on their own. They are well-connected, and have a team of other professionals like a preferred mortgage broker, home inspector, or contractor.

Do I have to work with the lender, inspector, or other service providers you recommend?
If they say “yes” here, then this is a big red flag. Good agents should have solid recommendations for lenders, inspectors, or other service providers, but you should never feel pressured to use their recommendation. On top of that, it’s illegal for an agent to force you to use their lender or other service provider.

If I choose to work with my own lender, how would you coordinate with them?
After an offer has been submitted, one of the most important aspects is to then secure financing, and a good lender is key to this. Agents have their favorite lenders, not because they make some type of referral fee (that’s illegal) but because they have a high degree of trust that their preferred lender can get the job done and on time. Hence, there may be some trepidation in working with a buyer’s own lender. However, a good agent will maintain open communication with your lender, and partner with them to help you obtain financing and close on time.

How will you keep me informed? By what method and how frequently?
This comes down to personal preference. However, if you prefer to communicate over email in a timely manner but they prefer to call or are not responsive, then they will not be a good fit. All of our partner agents are tech savvy and will respond to your requests in a timely manner.

How many clients (both sellers and buyers) are you currently representing?
While there’s no magic number for how many clients an agent can effectively handle, a number that’s staggeringly high, like 40 listings or 15 buyer clients, could indicate that their time will be divided and you won’t get much one-on-one attention.

How much time will I have to review documents before I have to sign them?
A good agent will work with you and provide you with ample time to review important documents. Some agents are genuinely busy and don’t have time during business hours to prep documents. However, it’s a bad thing when agents show you documents at the last minute to try and minimize the number of questions they have to answer. Buying a home is a big endeavor and stressful. A good agent will minimize any stress in reviewing and updating documents by doing it ahead of time, rather than at the eleventh hour.

Do you use e-signature?
An electronic signature, or e-signature, is an electronic indication of intent to agree to or approve the contents of a document. In asking this question, you can gauge how tech savvy an agent is or not. Time and money are saved because you eliminate the need to print, fax, scan, and ship documents. On top of that, you’ll get faster results and create a complete audit trail and tamper-proof virtual seal of the signed documents.

Are you on Zillow and Trulia? Do you have your own website? Why not?
This question can be used to assess how marketing savvy an agent is. If they don’t have their own website or are listed on popular sites like Zillow and Trulia, then how can you expect them to market your property? Online presence is extremely important, and it is also a great way to view an agent’s past reviews from buyers and sellers. At UpNest, all of our partner agents profiles can be viewed online. You can easily view their biography, local expertise, and even check out their Yelp reviews.

Will you provide me with at least 3 references?
Three is a good rule of thumb, but you may not want to talk to 3 (or feel 3 is not enough). A good agent has nothing to hide, and if they have a good track record, they should have more than enough previous clients to vouch for them.

Intermediate Questions

What form of buyer’s broker agreement do you work under?
A buyer’s broker agreement, or buyer representation, defines the terms that a real estate agent represents a home buyer. There are several types, and each has their pros & cons

  1. Non-Exclusive / Not for Compensation: Typically this type of agreement stipulates that a buyer may hire more than one broker or agent to find a property. There is no obligation to compensate the broker or agent, and as a buyer you have the right to demand single agency. Single agency means this broker/agent cannot show the buyer properties listed by the broker’s agency, without the buyer’s express permission. Although such an agreement is very advantageous to a buyer, it is likely that most good realtors will not work under this agreement. The risk is high that the agent does a lot of work, but never gets paid for their work.
  2. Non-Exclusive, Right to Represent: This type of agreement is similar to the previous, but it does provide for compensation. It also removes the buyer’s responsibility to pay a commission if the broker is paid by the seller. It still gives a buyer flexibility to purchase a property through another broker as long as the property isn’t introduced by the first broker.
  3. Exclusive Right to Represent: This is the most restrictive to the buyer out of the three listed, but provides the most value. The key difference is that the buyer agrees to work exclusively with the broker. It stipulates that you cannot hire more than one broker/agent to represent you, and exclusivity means that you would be obligated to pay a commission, even if you found a property by yourself. Fear not, of course, because buyer’s agent’s commission in almost all cases are paid by the seller. However, one of the biggest benefits of this type of agreement is that it allows for the commission (and a commission rebate to you) to be negotiable. This is the type of agreement that we ask for on UpNest, and gives you the best leverage to get a bigger rebate.

How do you typically negotiate? What’s your negotiation style?
Negotiation strategy is one of the most important ways your agent can add value. Some agents are overly aggressive, which doesn’t always benefit the buyer. Some are too passive and will sadly leave money on the table. As a buyer, you want to assess your agent’s level of competence and whether their approach is a good fit for you. Ultimately, choose to work with an agent that you trust.

Do you know of home buying programs that can help me with my purchase or with making post-purchase improvements?
An experienced agent can help you understand the laws and public programs regarding any purchase assistance programs. Whether public or private, these could include funds and loans to help with the purchase, or to help you make repairs and improvements once the sale is complete.

What makes you different from other buyer’s agents?
A lot can be gleaned from an agent’s answer to this question. It’s how they answer this question that truly sets them apart. It is a great way to see what they specialize in and what they’re passionate about. For example, if you are looking for someone who has extensive experience working with first time home buyers, but the agent specializes in working with investors & flippers, then they may not be the best fit for you. Not only can you easily browse our partner agent’s online profile, but they can also send you a personalized voice introduction that summarizes their biography and specialty, making it easy for you to compare and select the right agent for you.

What type of real estate certification or secondary education have you gone through?
This could be as basic as being a Realtor, which is a real estate agent who is a member of the National Association of Realtors® , and simply means this real estate agent has vowed to uphold the standards of the association and its code of ethics.

When clients are unhappy with your service, what has gone wrong?
Asking why a client has been a bad fit for an agent can help you figure out if you’re a good fit. Perhaps the client preferred to communicate over email in a timely manner, but your agent prefers to call instead. This may seem small, but may be very important to you.

Do you have a buyer checklist or provide me task reminders to keep me on track?
A good agent knows that there are many tasks involved in searching and buying a home, and should have access to (or be willing to create) a home buyer checklist. In addition, an agent can provide value by reminding you of deadlines of important key tasks.

How much of a buyer’s real estate rebate do you offer?
Some agents will be personally offended if you ask them this question, as it implies they should be taking a pay cut for the work that they do. More agents today understand that savvy buyers have been doing more of the home search & touring on their own. As such, smart agents may be willing to rebate a portion of their commission to get these more savvy, self-sufficient buyers and really add value where they need it more, which is during the home offer & negotiation phase.

How will you help me compete for a home in today’s seller’s market without overpaying or putting myself at risk (ie. no home contingencies)?
A good agent will tell you that preparation and speed to act will be your primary weapons to create a winning offer in a competitive market. There are many things to prepare, and a good agent will help you have all of them ready to go before an offer goes out. Basics include having a pre-approval document and a lender who can issue an approval document specific to the property at a drop of a hat.

More advanced advice might include preparing documentation on your financial information sheet detailing your job history, salary and bonuses, 401(k) balance, or shortening the loan contingency to ten days by working with a lender who can provide proof quickly. Lastly, a good agent will educate you on what is likely needed to win a bid, but will not create unnecessary pressure just to close the sale.

I need to sell my primary home before purchasing a new one. How would you work with me to ensure I can sell my home before closing on a new one?
There is no right or wrong answer here, it’s very dependent on your situation. In any market, however, a good agent should not hesitate to tell you the reality of the situation. This may include advising you that selling your primary home before searching is necessary if you do not have the funds to secure financing quickly. Or it may mean working creatively to gain the necessary funds without creating undue risk. Ultimately, in a seller’s market, any offer contingencies put you at a disadvantage.

If you or your brokerage are listing a property that I want to buy, how will you ensure that I can get the best price possible?
This is an example of dual agency, where a buyer and seller agent are listed under the same brokerage. Dual agencies can create a conflict of interest, thus, explicit agreement to this situation should be made up front with the buyer’s agent. This conflict of interest may arise because a buyer’s agent could give you a “tip” on an optimal price point to win the bid, which happens to be much higher than the next best offer.

A good, honest real estate agent will provide assurances that they will treat the negotiation in the same manner they would with an outside agent. On the flip side, effective buyer’s agents are highly connected with top listing agents, helping to smooth the way to win a bid that otherwise would be very difficult to win. Not all agents are created equal.

What inspections do you recommend?
In addition to a basic property inspection, an agent might advise you to request and pay for additional inspections depending on the age, property type, and location of the home. In a hot seller’s market, many homes sell without any contingencies in place, meaning the buyer will be shouldering most of the risk post-purchase. A good buyer’s agent will educate you on the most likely offer to win, but will not push you towards something you are not comfortable with.

How do you handle inspection issues?
Many homes will have issues arise during inspections, even brand new homes. A good agent will educate you on their approach to help manage issues. In some cases, this may mean asking the seller to make the repairs before handing the house over, or simply requesting a cash credit. In the latter case, your lender may push back and require that the problem get fixed before closing. If that’s the case, a good buyer’s agent will insist on giving the buyer selection over a contractor.

If I like two homes and the offer dates occur over the same week, how would you handle this?
A good agent will help you understand your different options, lay out the pros and cons, provide a recommendation, but ultimately let you select the path forward. One strategy could be making an offer on the first home, waiting for a response, and then work on the second home if the first is a no go. Another could involve making two offers simultaneously, but putting in some type of contingency that allows you to legally back out with little to no penalty. A good agent will know how to execute several scenarios, or at the least, pull in the right people (ie. contract lawyer) to help you decide.

Do you plan on taking any vacations or leaves that could affect my home buying search? If so, do you have a team in place that can still help me?
Agents are normal people, and vacations or sick leaves could happen at any time. A trustworthy agent will never leave you in the dark. If planned, they should be up front in telling you their situation. But if not planned, you should be ensured that an agent has a team behind them, or a seamless passing to another agent to take their place.

So, there you have it!  Finding an agent is easy.  But finding the RIGHT agent for you will be a tedious process that I strongly encourage you to invest your time and energy into.  As always, reach out to me with any questions that you might have (or 2nd opinions that you might need). 

Chad Nash, Ph.D. – The Real Estate Doctor

303.359.9229 or chad@redocgroup.com

 

 

3 Reasons Why We Are Not Heading Toward Another Housing Crash

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With home prices softening, some are concerned that we may be headed toward the next housing crash. However, it is important to remember that today’s market is quite different than the bubble market of twelve years ago.

Here are three key metrics that will explain why:

  1. Home Prices
  2. Mortgage Standards
  3. Foreclosure Rates

HOME PRICES

A decade ago, home prices depreciated dramatically, losing about 29% of their value over a four-year period (2008-2011). Today, prices are not depreciating. The level of appreciation is just decelerating.

Home values are no longer appreciating annually at a rate of 6-7%. However, they have still increased by more than 4% over the last year. Of the 100 experts reached for the latest Home Price Expectation Survey94 said home values would continue to appreciate through 2019. It will just occur at a lower rate.

MORTGAGE STANDARDS

Many are concerned that lending institutions are again easing standards to a level that helped create the last housing bubble. However, there is proof that today’s standards are nowhere near as lenient as they were leading up to the crash.

The Urban Institute’s Housing Finance Policy Center issues a quarterly index which,

“…measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates that lenders are willing to tolerate defaults and are taking more risks, making it easier to get a loan.”

Last month, their January Housing Credit Availability Index revealed:

“Significant space remains to safely expand the credit box. If the current default risk was doubled across all channels, risk would still be well within the pre-crisis standard of 12.5 percent from 2001 to 2003 for the whole mortgage market.”

FORECLOSURE INVENTORY

Within the last decade, distressed properties (foreclosures and short sales) made up 35% of all home sales. The Mortgage Bankers’ Association revealed just last week that:

“The percentage of loans in the foreclosure process at the end of the fourth quarter was 0.95 percent…This was the lowest foreclosure inventory rate since the first quarter of 1996.”

Bottom Line

After using these three key housing metrics to compare today’s market to that of the last decade, we can see that the two markets are nothing alike.  There will always be ups and downs in any market.  But, do not hold your breathe waiting on the next “Great Depression” to ease the real estate market.

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Tips for First Time Home SELLERS!

How to Sell a Home For The First Time

Selling your home is a big deal, and is not a process that most people go through too often. There are many things to consider as you move forward with your sale – things that must be dealt with if you want to sell quickly and for a good price.

From picking the right agent to pricing your home correctly, when you do things right you put yourself in the best position to get the results you want.

How to sell a home for the first time is not something you should take lightly. It is easy to make mistakes without the proper guidance.

No matter what the market happens to be doing right now, understand that you can sell your home if you want to or need to. You can sell it, and you can sell it for a price comparable to other similar homes – as long as you work with the right agent and you listen to his or her advice.

Selling a home for the first time can sometimes be a daunting task because you don’t have any experience to fall back on. It is fairly easy to make mistakes as a first time home seller if you don’t have the proper guidance.

Put the following tips for first time home sellers to work for you and start down the path to a successful sale!

6 Best Tips For First Time Home Sellers

Pick The Right Realtor

While it is possible to sell your home without the help of a professional, doing so is not recommended. There is too much at stake in a home sale, and too many things that can go wrong. A good agent will handle all the details and help you understand your options – specific to your area.

You can read all the information you want about real estate sales, but you will still not have the connections or experience to market your home effectively and to avoid making costly mistakes.

Look for a real estate agent that has a list of recent, satisfied customers. You want an agent who sells homes for close to the price that they are listed – which demonstrates an understanding of the market. Interview several Realtors before deciding on the best one.

The person you choose will be responsible for how your sale goes, so it is worth your time to look around and be demanding. There are plenty of real estate agents out there, but not all of them are necessarily great. Do your homework and choose someone that can help you accomplish your sales goals.

It is especially important to understand the difference between a listing agent and a selling agent. There are two distinct facets of the real estate business. Some agents do an exceptional job working with sellers and some agents with buyers. If you are selling your home for the first time, it is extremely important to work with someone who specializes in working with sellers.

Rarely does an agent do both well. Keep in mind if your listing agent is also out showing houses everyday, they are not going to have the time necessary to invest in getting your home sold.

When selling your home you should be working with an agent that possesses outstanding marketing skills. This is one of the vital traits to look for in a great listing agent. Over 90 percent of all buyers find their home online so you want an agent who has the skills and drive to make your home standout.

Outstanding photography, detailed listing descriptions and providing video tours are all part of a top producing agents marketing arsenal. There are lots of real estate agents who do none of these things! Check to make sure you know what you are getting with the agent you hire.

Here are some of the additional things you should expect from your real estate agent when selling including attending the home inspection and appraisal to represent your best interests. Real Estate agents are a dime a dozen – pick one that goes the extra mile in everything they do.

Price Your Home Appropriately

Our Realtor Priced The Home Correctly SavePicking the right real estate agent and the right price go hand in hand. Pricing a home properly is another skill the best agent have. Everyone wants to sell for the highest possible price. But be careful, because pricing a home too high will repel buyers.

If your home stays on the market long enough, it could develop a stigma and be seen as undesirable by most buyers. It is not enough to look at your neighbors house to see what they are selling for.

There are numerous real estate pricing factors that need to be considered, factors which your agent should have a good grasp of. If you find an experienced agent, one with a history of selling at close to the original selling price, you know you are working with someone that knows what he or she is doing.

Your neighbors home may or may not be priced correctly. Always look at similar closed sales as a basis for establishing the right asking price.

Correcting the price a month or two later is not going to fix the problem, either. By that point you can expect to be low-balled whatever price you set.

Talk with your Realtor and try to price the home appropriately to the market you are in. If you have a real estate agent you trust, you definitely want to price the home at the point recommended by the professional you are working with.

Do be careful when choosing an agent based upon the value they provide for your home. There are tons of agents who will pull on your heart strings by giving you an unrealistic market value.

This is the kind of agent you need to stay away from. Sometimes real estate agents will blatantly misrepresent the value of your home just to get you to sign a contract with them.

Spend Time Getting The Home Ready

One of the biggest mistakes numerous sellers make is not being completely ready to put their home on the market. Remember you are in competition with a lot of other sellers who are trying to accomplish the same thing.

It stands to reason you need to keep up with the Jones-es when it comes to selling a home! What exactly does this mean? Start with these things:

People Go Ape Over Homes in Great Shape: Exterior Home Improvements

  • Make sure your curb appeal is exceptional.
  • Make any necessary repairs to any blatant defects like rotted siding or trim.
  • Keep decks, patio’s and walk-ways clean and tidy.
  • Freshen up the landscaping by planting some flowers with color, pulling any
    weeds and adding some fresh mulch to beds.
  • Seal coat the driveway if necessary.

Interior Home Improvements:

  • Clean the home from top to bottom – this is one of the cheapest improvements
    you can do that make a real difference.
  • Remove any pet or smoking odors.
  • Paint any rooms that need a fresh or neutral coat of paint.
  • Add brighter light bulbs in darker areas of the home.
  • Correct any visible defect that a buyer will more than likely bring up at a
    home inspection.  There are some great tips in this article on how to prepare
    for a home inspection.
  • Replace stained or worn carpeting.
  • Re-finish hardwood floors.

It is understood that there are times when an owner has no money to do some of
things mentioned above like replacing carpeting or re-finishing hardwood floors. If you have the funds, however, you will get a great return on your investment as these things can change the whole complexion of a home. Here are some additional ways to make your home more appealing to a buyer.

Be Ready to Move if You Get an Offer

When someone makes an offer on your home and you accept it, you will need to be ready to move quickly to finalize your relocation and get all your things out of your home.

Sometimes it can feel like you have a good deal of time, especially if you have not gotten any offers. But once the paperwork is signed, you will need to get into gear and take care of all of your business as quickly as you can.

Know where you are going to go before the sale closes. Moving is a time consuming and tiresome process all on its own. Be prepared for it.

Often times first time sellers don’t understand the concept of selling and buying a home at the same time. Some of the common mistakes are thinking another seller is going to allow you a home sale contingency or putting in a clause into your listing agreement that says something like “sale subject to successfully finding another home of choice.

These kind of contingencies muddy up the home selling process and make it far more difficult to achieve the goal of selling your home. In most markets owners are not going to accept a home sale contingency and maybe not even a right of first refusal. You should absolutely consult with your agent about this before listing your home for sale.

Understand What The Costs Will Be For Closing The Sale

There can be a lot of extra costs associated with selling a home, costs that you may be expected to take care of as the seller. You are also going to need to pay the commission to your real estate agent once the house sells. First, understand that many of these costs, including the commission, can be negotiated.

The perfect example of this is when you are selling your home and turning around and buying another with the same agent. Real Estate agents love these kind of transactions!

A business savvy agent is not going to turn down the opportunity to make two sales. An agent that is closed minded and says no to any kind of negotiation might not be the best bet to work with.

It is in your best interests to seek a fair deal, so don’t be afraid to seek a middle ground between the offer that is presented to you and what you actually think is fair to pay.

Second, make sure you understand every cost that will be coming your way. Have your real estate agent present you with a list of all costs and make sure you are prepared to pay them. Feel free to question anything you are uncertain about.

Know Your Local Market

Local real estate markets are unique, which means that what works in one market may not work in another market. Just because you see a home like yours the next town over that is selling for a certain price does not mean that your home will sell for a similar price.

There are so many factors that go into real estate markets that it takes quite a bit of training and experience working in each market to have a clear understanding of what to expect.

For example in my neck of the woods, the exact same home in Denver, CO. could be over $200,000 more than the same home in Aurora, CO., and these two cities are right next to each other!

Your real estate agent should be an expert on your local market. He or she should be able to tell you if you want to sell in spring, summer, fall or winter. Your agent should know what houses similar to yours are selling for, and how to compare your home to those other homes to decide on the best selling price. The more your agent knows about your area, the better job he or she can do when selling your house.

Final Thoughts

Selling a home is not rocket science but it is easy to make mistakes when you are not completely educated on the process. By following the above tips for selling a home for the first time, you will increase your odds for an enjoyable and profitable sale.

Thinking of selling (or buying) a home soon? Shoot me an email or call, and lets set up a time to chat!

Email: cnash@doctornashrealestate.com Phone: 303.359.9229

Website: http://www.doctornashrealestate.com

Home Buying 101

Purchasing a home is a major milestone that tops many people’s lifetime to do lists—and maybe their list of financial fears too. But it certainly doesn’t have to be a scary or stressful experience.

With time, care, and research, you can take control of the home-buying process.

Because while house hunting for the first time can be exciting, tales of regretful home-buying mistakes and the not-so-distant housing market meltdown have also given it a bad rap for being a stressful and confusing process. It doesn’t have to be—that’s why I created this handy nine-step checklist, which helps explain how to prepare to buy a house—and help safeguard your finances in the process.
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Get Rich Quick or Building Wealth: The Differences Between Bitcoin and Real Estate Investing

by Dr. Chad Nash & Paul Moore

Are you jealous that you’ve missed out on bitcoin so far? Thinking about jumping in?

There’s some bitcoin investment advice going around in circles of people my age. And I admit, some of them are mildly successful . That’s an understatement, actually.

“You’ve gotta buy bitcoin!”

I’ve had quite a few friends go down this path in the past year, and I’ve tried to ignore it. But when two of my friends decided to sink all of their time, talents, and treasures into cryptocurrencies, I had to take a look. For an in-depth summary of cryptocurreny, take a look at this website. Continue reading →