How to Sell Your House Without a Real Estate Agent

Most people rely on a real estate agent when they want to sell their house, but it is possible to get a buyer on your own. It may take a little more effort but you will end up saving the commission you would have paid to the agent. Here are a few tips to help you make the sale:

Do your research

The first step towards a successful house sale is to know about real estate operations. Master the language used during the transactions by reading through your home’s contracts and other documentation. You need to have all the paperwork required to make a sale including legal documents, disclosures, and insurance documents. 

You also need to identify professionals who will help you with the sale process such as appraisers and estate attorneys. A title company may also be necessary in some situations. 

It is also important to determine how you will structure the sale. Do you intend to offer any incentives to attract buyers such as lease-to-own or owner financing. Learn how each incentive option works to determine how it will apply in your situation. 

 Organize your house

Once you have completed your research, you need to organize your house and make sure it is ready for a sale. Fix any functional problems in your house. Paint the entire house in bright colors, refinish floors, and replace your carpeting. Identify any items that need to be repaired or replaced such as heating, roof, appliances, and air conditioning.

 

It is also essential to get rid of clutter and stage the house. Your objective should be to make the house appear spacious and dazzling. There are certain things you may be unable to change such as the location and neighbors and this have to be factored in the price. 

Set your price

Most homeowners set a very high price, putting off potential buyers. Check home prices in the neighborhood and come up with something reasonable. You can also use an appraiser to help you set an appropriate price. 

Advertise, advertise

Advertise the house on several online listings. It is advisable to use sites that feature sales by owners. The sites you select should get a lot of traffic. You can also rely on social networking sites and print media to advertise. 

Negotiate the offers

Get ready for offers and counteroffers. A real estate attorney can help you negotiate if you find it difficult. 

Make the sale

Organize all the closing paperwork and have it ready for a sale including documents required by federal and state laws. There may be some delays in the sale process even when you get a good offer. 

Should You Offer Homebuyer Incentives?

You want to sell your house on an urgent basis. You’re thinking of giving some incentives to prospective buyers so that they’re better inclined towards your home. You want to add a sweetener to the process in the form of a decorating allowance, a big-screen TV, or a home warranty.

This appears to be a smart marketing tactic per se. But sometimes homebuyer incentives can prove to be money wasted. You need to ensure you’re sending out the right signals to buyers with your homebuyer incentive in place.

Here are some dos and don’ts you need to follow if you don’t want a wasted effort:

Do’s:

Use incentives that will make your home stand out amongst others. If all the properties up for sale in the neighborhood have a similar patio, by equipping yours with a brand new luxury patio set with a shiny stainless steel BBQ, you stand a good chance of your home being picked over others.

Compensate for drawbacks by offering a homebuyer incentive. If you have ancient floral wallpaper in your living room, you could offer a decorating allowance which will cover your buyer’s cost of replacing it. If your furnace looks as if it’s on its last legs, offering a home warranty can allay your buyer’s concerns that they’ll have to spend thousands of dollars for replacing it in the near future.

Don’ts:

Don’t presume that it’s legal to offer homebuyer incentives. Some states may put a ban on homebuyer incentives. Sometimes laws can be maddeningly confusing regarding whether this practice is illegal or not. Confirm the way to go with both your attorney and real estate agent before you actually declare details of the homebuyer incentive you’re offering.

Don’t underestimate the smartness of buyers. There’s a strong probability that buyers will probe deeper to find out the motivation behind the homebuyer incentive you’re offering. Offering an incentive might make you appear desperate. Suspicious buyers might begin to wonder about the hidden flaws existing in your house that compelled you to throw in a freebie for making a sale. Your apparent anxiety could also result in buyers making a considerably lower offer.

Don’t mask an exorbitant price using a homebuyer incentive. If you offer a very high priced homebuyer incentive, something like a luxury car or a high-end TV; buyers might regard this as a gimmick for avoiding a reduction in the sale price. Almost all experienced real estate agents recommend listing homes at more competitive prices rather than offering homebuyer incentives.

The price of a property is what buyers look at first and foremost. If a house is priced even slightly below its real value, it attracts both buyers and buyers’ agents. The home will be considered a good pick and will be bought quickly.

The bottom line

If you’re sure that offering a homebuyer incentive is beneficial, make sure you choose one that’s a value addition or that neutralizes an existing flaw in your home.

Investors Beware: Don’t Fall for These Real Estate Blunders

At times, the real estate market appears truly hot and moves up really fast. Many people think it’s similar to a stock market, but the reality is different. For a successful real estate investment, a long-term approach is required.

Here’s a list of some common, but costly mistakes to avoid in the real estate field:

Selecting a house on the basis of current décor

Keep in mind that when you buy a home – the house is more important than the things within it. Look beyond decorative items and try to see how strong the bones are. Pay attention to things like the square footage and floor plan to figure out whether your belongings will fit appropriately.

Buying without research

Researching the neighborhood is of utmost importance before you select a property. You’re buying more than simply a house – you’re buying a piece of real estate with land around it. Find out details of the area and amenities. Also study the school system to ensure your address is in line with the appropriate school district. Try attending a community meeting if you can.

Buying without an expert inspection

Home inspection professionals can reveal many things about a property that might not be visible to you. Make sure you hire an expert with a good referral and sound experience in the field. Insist on a written report which includes photos. Photographs will help you see the condition of areas you might miss out in the normal course.

Not considering hidden costs

There’s more cost involved in buying a home than what you pay upfront. There’s a lot of spending beyond that. Find out the details regarding property taxes, water bills, and electricity bills.  You also need to consider investing in required furnishings before you move in.

Incorrect bidding at an auction

Though a starting bid for a property on auction might sound like a great deal; you can’t be sure that the same will hold true for the final price. Plan a strict budget in advance and make sure you don’t exceed this in the excitement resulting from a bidding war.

Also keep in mind that with an auctioned property, you will not get any warrantees and guarantees. You’ll not be able to get the home inspected too. Find out all associated liabilities like liens and taxes payable which might convert a good looking deal to a really bad one.

Not marketing your home correctly

When it comes to selling your home, you need to market it in different ways. Simply putting up a "for sale" board isn’t enough- you need to deploy other marketing tools too. Discuss marketing options with a real estate agent and what he can contribute.

Putting up photographs and having virtual tours online is a good idea. Include floor plans as well. These enable buyers to see the complete layout of a home and decide if it’s suitable for them.

Not getting an agent

It's important to have an expert at your side who understands all complexities. You cannot get included in the multiple listing service (MLS) without hiring an agent. Because of this, other agents will not know that you’ve put your property up for sale. Also, when prospective buyers come, you’ll have to show them around yourself.

7 Habits Every Home Seller Should Have

Putting your home on the market and getting it sold for a decent price is not easy. In fact, selling a home can be quite stressful. However, you can reduce your stress levels by following these highly effective habits.

1. Be Realistic

Your neighbor probably sold their house for top dollar last month, but it doesn't matter now. You didn't sell your home when the market was at its peak. Right now, your only concern should be getting your home sold for a reasonable price and that won't be possible unless you are realistic.

When selling a home, don't expect to recover every cent you spent on it. It is not always possible. So be realistic about the value of your home, the quality of your neighborhood and current market conditions. There is hardly anything that you can do to improve the neighborhood or the market. Nonetheless, you can improve the way your home looks. Make it clean and repair the parts that need to be repaired.

2. Listen to suggestions and advice

You probably don’t have much experience in selling a home; however, your agent has. A good agent sells many homes a year so they should understand the process better than you. Listen to their advice. Of course, it is nearly impossible to do everything that they suggest. Nonetheless, listen to them and do whatever you can to present and market your home in the best possible way.

3. Be Available

You don't have to be physically present during showings. In fact, the presence of the home owner may make the buyer uncomfortable and force them to rush through the process. Nonetheless, your home should be easily accessible to buyers. You must be willing to vacate the premise whenever your agent asks you to so that potential buyers can view it. This improves your chances of selling it.

4. Be Smart

Knowledge is power, so gain as much information as you can about the home buying and selling process. Of course, you are not buying, but you should still be able to know what the buyers are going through. Also understand the real estate market. If you have doubts, ask your agent to clarify them.

5. Don’t let emotion cloud reason

All of us are emotionally attached to our home. We are also proud of it and expect it to be sold for a price that is reflective of our pride. However, market conditions and location often determine the price. If you don't get the price you are asking for, you should be willing to lower it.

6. Be Reasonable

While selling a home, price shouldn't be the only consideration. You must also take into account the buyer's eligibility for a loan. If buyers request for repairs, you should consider every aspect closely. Don't risk losing a potential buyer by refusing to repair a leaky faucet or something just as trivial. That doesn't mean that you have to give into every demand. Be reasonable. That's enough.

7. Ask Questions

During the selling process you may hear many terms that you don't normally use on a regular basis. If you don't understand anything, don't hesitate to ask for clarification. 

These seven habits will not only reduce your stress levels but also increase your chances of getting a good price for your home.

To assist you in pricing your home to sell, you can get a free home valuation report from Neighborhood IQ and find out what your home is really worth.

Thinking about refinancing? You can find lenders that can help you with a refinance on your home loan. Let The Home Loan Advisor help you today!

Finding the Best Loan Officer

Buying a home involves a lot of players on your real estate team, and a loan officer is one of them. Unfortunately, in the mortgage industry, it only takes one bad loan officer to mess up a deal. The loan officer is the front person for a mortgage company. You will interact through them through the entire loan process, so it makes sense to get the best loan officer you can find.

Good loan officers have been in the real estate business for many years. They rely on repeat business, and one way to do this is to establish a good long-term relationship with a realtor. In fact, one of the best ways to find a good loan officer is by asking a realtor for a referral.

It’s up to you to find the best loan officer when buying a home or refinancing a current mortgage. The following information should help you to find a skilled and qualified loan officer:

Qualities of a good loan officer

·         They look out for clients’ best interests before their own.

·         They are professional.

·         They are helpful in answering your questions about the home buying/refinancing process.

·         They have excellent salesmanship skills.

·         They can effectively communicate.

·         They are friendly.

·         They are good with numbers.

As stated earlier, loan officers are the front people for mortgage companies. There are no education requirements and you don’t need a degree to become a loan officer. There is a required test and annual certification process, and a loan officer must meet the state licensing requirements. Other than those things, almost anyone can be a loan officer. A loan officer needs salesmanship skills as well as the ability to effectively communicate. It’s also helpful if they have a good grasp with numbers.

Questions to ask your loan officer

·         How long have you been in the business?

·         What is your availability?

·         What lenders do you use?

·         How much money will you make off of my loan?

·         What are the lender closing costs?

·         What is the APR and interest rate for this loan?

·         What is the rate lock policy?

In the midst of selecting a loan officer, consider the advantages of knowing the true value of a home. Be sure to obtain a free home valuation report from Neighborhood IQ to find out how much a property is worth before you buy. Or if you are refinancing, it helps to know the value of your home.

The Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, but we match you with potential lenders who have products that may help you and provide you with a sense of stability.

Tips for First Time Homebuyers

Thinking about buying a home for the first time? It may seem like purchasing a house is rather daunting, but if you are armed with the proper steps that you should take, the process will be easier. You want to get the most that you can out of your purchase without being overwhelmed.

It turns out that finding the right house is only the beginning of the home buying process. You need to invest the time necessary in order to avoid sloppy shopping and financial disaster. Your goal is to be happy with the home that you decide to buy.

Here are some steps that you should take in order to ensure a successful buying experience for first-time home buyers:

1.       Decide whether or not to buy. Does a home purchase fit into your financial puzzle? Figure out if now is a good time to buy a home. If you’re renting, be sure to weigh the pros and cons versus owning your own home.

2.       Get your finances in order. Assess your budget and survey your spending. Be honest about your financial situation and trim the unnecessary spending from your budget.

3.       Figure out what you can afford to buy. Take into consideration the numerous costs associated with owning your home such as property taxes, homeowners insurance and closing costs. Accumulate your down payment and figure out the size of your mortgage payments.

4.       Know and improve your credit score. Lenders try to determine your credit risk level according to your credit score. A better score may mean better and cheaper loan options.

5.       Choose a mortgage. Should you get a fixed-rate or adjustable-rate mortgage? Or would a balloon loan or hybrid loan be better for you? Work with a good, straightforward mortgage lender that has your best interests in mind.

6.       Decide what and where to buy. Location and value are the most important aspects of buying a home. The price you pay for your home as well as where you home is located are factors that greatly affect your home’s value.

7.       Get a real estate team. A good lineup includes a real estate agent, real estate broker, lender, property inspector, tax advisors and escrow officer. You complete the all-star team!

8.       Negotiate. Good negotiators base their strategy according to the price of a property, how long it’s been on the market, and how motivated the sellers are. Don’t be afraid to play ball and push the envelope.

9.       Inspect the property. Skipping this step could be extremely detrimental, as this protects your investment. Don’t find out about foundation flaws or poor plumbing after you’ve bought the home.

10.   Close the deal. A closing officer will prepare the transfer of the title. Keep in mind the many closing costs that are associated with this step.

Following the above steps could make the difference between a successful sale and a disaster. They can also assist you in deciding if buying a home is for you, and if now is the right time for your purchase.

To make sure that you have successfully paid a fair price for your property, you can get a free home value report from Neighborhood IQ to learn the value of your new house.

The Pros and Cons of Selling Your Own Home

If you are selling your home, will you get an agent or are you thinking about going at it alone? The answer depends on many different aspects. The obvious reason to sell your home yourself is to save the realtor commission fee, which can be a big chunk of change. However, in most cases, a realtor can get a higher selling price than what you can get yourself.
But the question is: Do you have what it takes to successfully sell your own home? You should really weigh the pros and cons to decide if you can take on the task by yourself:

Pros:

·         You can save money. You could potentially save thousands of dollars in real estate commission fees. The extra money can help if you still owe on the house you are selling. You won’t know if you can be successful concerning “For Sale by Owner” unless you try.

·         You know the house and neighborhood. You will likely be more educated about the strengths and weaknesses about the house. You will also know your neighbors and the surrounding area pretty well, so you can talk about how great they are when showing your house. Plus, you can let prospective buyers know personally about all of the home improvements you’ve done.

·         You may already have a ready buyer. In this case, you can save the real estate agent’s full commission because much of the work is already done. Or, you can hire an agent for a reduced fee to complete the transaction.

·         You are in control. Some people simply prefer to be in charge, especially when it comes to such a big financial decision.

Cons:

·         Selling is very time-consuming. Do you have the time to sell your house? It may be difficult to schedule appointments and show prospective buyers your home if you work full-time.

·         You have to take care of all the paperwork. There is a multitude of forms and paperwork to fill out, and an agent can seamlessly keep track of all signed documents. In order to be organized, you must be willing to do the same.

·         You have to prepare your home yourself. You may be blind to some of the flaws in your house, and a fresh pair of eyes can help get your house in selling shape.

·         You might not know how to market your home. You need to do some research to learn how to use useful forms of advertising such as the internet and classified ads. You also need to hone some important marketing skills to be successful in your sale.

As stated earlier, selling your own home means that you are the boss. You won’t have to succumb to overbearing agents or deal with unprofessionalism of any kind. You can call the shots, but it also means that any mistakes that are made rest solely on you.

If you decide to sell your own home, one of the most important pieces of information for you to know is the value of your home. You can rely on a free home value report from Neighborhood IQ to learn what your home is worth in order to ask for an appropriate price.

Home Selling Mistakes: Make Sure You Avoid These

It is very easy to be swayed by real estate agents who promise you a fortune for your house. The longer your home stays unsold on listings, the lower its price goes. Many sellers are aware of this but they still make some common mistakes that either fetch them lower prices or results in a delayed sale. Here are the five most common mistakes sellers make when selling their home:

(1) Overpricing the house

This is not the 20th century. An average person with an elementary knowledge of internet can get a detailed report online. Your buyer can easily get an accurate home value report at Neighborhood IQ, click here to get a free home value report. Your real estate seller may be promising you a million dollars for your place, but if similar homes in your area are selling for half-a-million, it is unreasonable to expect someone to turn up and pay the double amount for your house. Talk to several real estate agents. Get their estimates. Find out what price houses similar to yours are selling in your neighborhood to make an educated assessment.

(2) Getting the wrong real estate agent

Many people hire the first real estate agent they meet. A lot of sellers do not even care to visit the office of the real estate agent they are hiring; instead they hold their first meet at home. This probably explains why a large proportion of houses go unsold through the expiry of their listings. The real estate agent you have hired may be an impressive talker, but only his previous clients can tell you about his record as an agent. Talk to them.

(3) Not using the internet

Nine out of ten people looking for a new home first search on the internet. You are missing out on a lot of potential buyers if your “For Sale” house is not searchable on the internet. There are plenty of websites where you can place an ad for your home with some beautiful pictures of it. Buyers often want to look at a few images of the house before a personal visit.

(4) Not taking photographs

Hire a professional to capture photographs of your house and then upload those images on the internet. Remove or blur all personal details from the photographs before putting them online. You can also hire someone to make a 3D map of your home. That will raise confidence in your buyers.

(5) Targeting the wrong customer

Do you own a four-bedroom house? A young guy in his early 20’s is not the right customer for two reasons: (a) that house is too big for him, and (b) he cannot afford it. There are exceptions but we will not bother about them. Most of the time it is a couple with children that will like your house. So make sure you target the right audience.

Are you making these five home selling mistakes? It’s not too late to change. Use the tips given above and your house will soon be sold at a good price.