Your choice of an agent may very well be the
factor that determines the success or failure of your real estate buying
or selling experience. You should do it carefully. Whether buying or
selling, this is the person who will be your guide through the maze of
real estate terms, forms, and documents, as well as your contact with "the
other side." A good agent will see to it that you are fully informed
before making any decisions and will assist you with all the details of
your transaction. The right agent will also help to make the whole process
enjoyable for you.
Here's some things to consider when
buying
or
selling.
Before selling, you need a
Market
Analysis Follow the link to learn
more about it.
A buyer coming into a new marketplace has
little or no information about market value. He or she has two choices:
spend several weeks researching, or find a good agent to aid and assist.
Obviously, finding a good agent is the most cost and time effective
choice.
How do you find this person? By meeting a few and asking questions.
1. What are the sales statistics? You want an agency that has a large
share of the market.
2. Will the agent take you to see properties, or send you out on your own
with a map? You won't learn much unless you can see the insides of the
homes.
3. Can the agent answer your questions? A good agent will either know the
answers or know where to find them - and do it.
4. Does the agent ask you questions before suggesting specific homes? Be
sure you choose someone who is listening and who won't waste your
time on unsuitable properties.
5. Is the agent willing to show you other agencies' listings, or only his
or her own? You need to see everything in your price range that fits your
specifications. You don't need to be forced to tell your
story to an agent from every office in the community.
6. How do you feel when talking
with this person? If you aren't comfortable at the first meeting, your
search will not be very enjoyable. Choose someone that you can relate to.
You may wonder why we recommend going to a top selling agency. Aren't they
apt to be too busy for you? NO. The reason some agencies sell more is that
they put more effort into finding properties for their buyers, as well as
into marketing their listings. A top agent won't quit until they either
find what you want or become convinced that it doesn't exist. Even then
they'll keep examining each new listing with your needs in mind. After you
find the home you want, a top agent will assist you in finding a lender
and providing all the detail work necessary to bring the transaction to a
closing. Then, they'll do all the work necessary to get the transaction
CLOSED. The problems that come up between agreement and closing are many
and varied - and frustrating. A good agent will work through them without
giving up.
While doing all this, they'll usually
become a friend as well. That's why top agents get such a large percentage
of their business from referrals.
That's the kind of agent you'll find at
River Mountain Realty
because we ARE STILL "The
Difference."
Does this mean its priced too low? NO. It
means its priced to actually sell.
.
I mentiion this first because far too often sellers choose their listing
agent based on the price they promise to get for a house or parcel of
land. This is the number one biggest mistake sellers can make!
This is an agent who will do or say anything necessary to get the listing.
Later, when the property isn't sold, he or she will try to talk you down,
but by then its too late. The "fresh on the market" excitement is gone and
you have a stale listing.
How should you choose? First of all, by choosing an
agency that has a large share of the market. The fact that they're selling
more means they're working harder, or smarter, than the competition. It
means that they have a list of satisfied customers who send their friends
or come back time after time. It means that their listings are priced
correctly and marketed well.
If you don't know the market statistics, there are a few indications you
can use. First, will the agent prepare a written market analysis, or just
throw you a "guestimate" of the value of your property? A market analysis
takes research into recently sold properties, properties currently on the
market, and properties that went off the market without being sold. Since
the market changes constantly, recent information is important to your
success in choosing the correct price.
Once presented with a market analysis it becomes your job to examine it.
See if the comparable properties are REALLY comparable to yours. Sad to
say, it is possible to choose properties and make adjustments that will
change the outcome of an analysis. Look at the adjustments the agent has
made. Do they make good sense? If they don't then chances are the agent is
trying influence you by the price presented.
It would be wonderful if all real estate agents were honest - or all
people in any field. Unfortunately they aren't. Some agents will tell you
a high price to get the listing while others will tell you a low price
either to make a quick sale or because they have a friend who wants your
property. So the message is: be careful. Read what you're given and be
sure you understand it. To learn more about a market analysis, go to our
market
analysis explanation.
The next important consideration is service:
Will the agent take the time to learn about your property so that he or
she can convey information and benefits to potential buyers and other
agents? Its important to have the facts.
What marketing strategies does the agency use? The Internet is the hottest
new source of potential buyers. Are their listings available on an easy to
find Web Page? What other advertising is done? Does the agency itself have
good exposure in the marketplace?
Does the agent return your calls promptly? Will the agent keep you
informed of activity regarding your listing? Communication between seller
and agent is vital.
Will the agent assist in finding financing for your buyers once you've
accepted an offer? Too often transactions fail because the buyer didn't
have good guidance in choosing a lender or taking care of the little
problems that can come up during the loan process.
Last, but definitely not least, do you feel comfortable talking with this
person? You and your agent will work closely together, so you need to
establish a good working relationship. This is impossible if you feel
uncomfortable or don't trust what the agent tells you. Choose someone you
can have fun with. It will make everything about selling a LOT more
pleasant!
Market Analysis:
The Importance of Correct Pricing
Before you put your home or property on the market, you should know its
correct price. There are only three ways to know what that is.
The first and most difficult is a
do-it-yourself project. If you have the time, patience, and expertise,
you can research the County records to find out the reported selling
prices of homes or property comparable to yours. This has drawbacks
because not everyone reports their sale, and of those who do, not
everyone tells the truth. Then you have the problem of viewing the
properties you're using for comparison. You can't know if they're really
similar to yours unless you've seen them. Friends and neighbors may tell
you how much other properties sold for, but that source is not always
reliable either.
The second option is the most reliable,
but expensive. That is to hire an appraiser. If you choose someone who
is very familiar with the area you'll have an accurate, unbiased
estimate of worth. If you choose someone from another town you run the
risk of getting an accurate estimate of what it would be worth in their
town! You don't want that, so get references from the local Realtors
and/or banks before you choose.
The third, and most commonly used (and
abused) option is to get a "Free Market Analysis" from one or more local
Realtors. Again, I caution against going out of town - you'll find out
about a market different from your own.
What is a Market Analysis?
When a Realtor does a market analysis the first step is to carefully
examine your home or property in order to be aware of special features,
condition, floor plan, size, etc. Next the agent will enter all the
information on a form and then begin hunting for properties as similar as
possible which have sold recently. It can be difficult in an area such as
ours because there are many unique properties, but with effort some
reasonably comparable sales can usually be found. Then the features, etc.
of each of the comparable properties is entered on the form and the agent
begins to make adjustments for the differences. The value of each feature
of the comparable is adjusted up or down to bring it as close as possible
to the subject home. (For instance, if your house has 1,400 square feet
and the sold home has 1,200, the price would be adjusted upward to allow
for more size.)
The agent uses 3 or more sold properties and then starts over with a new
form and does the same thing again, using properties currently on the
market. This gives you a range in which properties similar to yours have
sold along with a range showing your competition in the market place. The
unsold properties should include a notation of how long they've been on
the market. If its a year or more you know they are over priced.
The market analysis is a very valuable tool when done correctly and used
correctly. Unfortunately that isn't always the case, so you as a seller
need to read and examine it carefully.
Make sure the adjustments make sense.
Look to see if there are homes that you
recognize. If so, are they really comparable to yours?
Be sure you're using a Realtor who is
familiar with your area and who has seen the other homes being used. If
they haven't seen it they can't know if it really compares. (Again, we
caution against using someone from out of town.)
Be sure the agent is giving you an
honest opinion and is not attempting to use the Market Analysis for
another purpose. Sadly, some agents will inflate the price to tell you
what they think you want to hear. Since some sellers have been known to
choose an agent based on who promises the highest price - it often means
the dishonest agent gets the listing! Other agents might deflate the
price because they want a quick sale.
Once you've determined that the price
presented is correct, use it! It does no good to know what your
house or land is worth in the current market unless you list it at the
correct price.
Why is the Initial Listing Price so Important?
The most important reason is that when a property first comes on the
market it gets the most attention. When the price is right it gets shown
by every agent with a customer in that price range. When the price is
wrong, the agents dismiss it and don't show it. Why?
Because when the price is too high, the
wrong customers look at it.
Customers who can afford it dismiss it
because there are others that offer more.
When the price is too high, customers
who would be interested at the correct price don't even go see it. While
there are those few who will make extremely low offers, most customers
won't. They either assume that their offer would be rejected, or they're
just too polite to ask for a substantially lower price.
That means that the "list it high and
look at offers" philosophy isn't very wise.
For you as a seller, the message is clear:
Get a market analysis (or an appraisal)
If it doesn't make sense, get another
from another agency.