First-Time Sellers – 5 Things You May Not Know

First-Time Sellers – 5 Things You May Not Know

Selling your first home is an exciting journey that comes with its unique set of challenges and learning curves. Even if you feel well-prepared and have partnered with a skilled real estate professional, there are several aspects of the home-selling process that might surprise you. Here are essential insights to help you navigate your first home sale effectively.

1. Pricing is Critical

Setting the right price for your home is crucial. Tempting as it may be to start with a high asking price, this can deter potential buyers and lead to a longer wait time in selling your home. Overpricing can necessitate significant price drops later on, which might give buyers the impression that there's something wrong with the property. A competitively priced home, on the other hand, is more likely to attract interest and sell quickly.

2. Preparation is Key

Before listing your home, take proactive steps by addressing repairs and any deferred maintenance. This not only enhances the appeal of your home but also prevents potential buyers from being put off by the work they would need to do. A well-maintained home generally sells faster and possibly for a higher price, as buyers perceive the care you've taken over time.

3. Understanding Disclosure Practices

Transparency about your home's condition is generally expected in the home-selling process. Sellers often share details about the property's history and current state, which can include past repairs and any existing conditions. Providing this information can foster trust and facilitate a smoother transaction by ensuring buyers are well-informed about what they are purchasing. This approach is widely regarded as a best practice in real estate sales.

4. Anticipating Closing Costs

Understanding potential closing costs is crucial when selling your home. These costs can vary and might include fees such as title insurance, transfer taxes, and other related expenses. It's important to be aware that these costs are part of the transaction and can sometimes be negotiated with the buyer. By familiarizing yourself with these potential expenses, you can better estimate the net proceeds from your home sale and approach negotiations with a more informed perspective.

5. Negotiations

Negotiating the sale terms is more complex than just agreeing on a price. As a first-time seller, it’s crucial to understand that nearly every aspect of the offer can be negotiated, including closing dates, contingencies, and even appliances included in the sale. Having a flexible strategy and an experienced real estate agent on your side can significantly benefit this process. Whether it's negotiating repair responsibilities or adjusting the closing timeline to fit your needs, being well-prepared to discuss these aspects can make a significant difference in achieving a favorable sale.

Navigating your first home sale can be daunting, but with the right information and guidance, you can successfully manage the transaction and look forward to your next steps in your real estate journey. Being informed about these key aspects will not only help you feel more confident but also position you for a successful and smooth sale. Remember, the best resource at your disposal is a knowledgeable real estate professional who can provide insights and expertise tailored to your specific situation.

What to Expect From a Listing Agent

You already know that the best way to sell your home, and for the most profit, is to hire a listing agent. The fact is that people who sell using a real estate agent make more profit and have a smoother transaction than those who try to do it themselves. Yet often consumers don’t know everything the listing agent does. Listing a home properly entails so much more than putting a lockbox on the front door and slapping a sign in the yard.

The listing agent is your advocate and partner in the selling process. They help guide you through the transaction, negotiate on your behalf, and work with the buyers’ agents to get you the best deal possible. A good listing agent will provide you with regular updates and input from showings. The most important thing is to discuss and set expectations at the beginning.

Some sellers ask that their agent attend all showings. This is typical with luxury properties, for example. But often they do most of their work behind the scenes, encouraging offers, negotiating counter offers, working with lenders and appraisers, handling loose ends and hiccups.

Once in a while, things don’t go well. The partnership becomes difficult or impossible. Since almost all listings involve a reasonable time limit, you may feel trapped or hopeless that there is a solution. In this case, you do have options. First, if your agent works for a brokerage, call the managing broker who can mediate, or if necessary, reassign your listing if needed. Your agent is your partner. Be honest and open with your needs and expectations. In this way, you can work together to sell your home quickly and for the best price and terms possible

Don’t Overdo It When Decluttering to Sell Your Home

If you’re preparing your home to sell, you already know that it’s important to declutter. A clean, tidy space allows potential buyers to see the beauty of your home and to imagine themselves living there. But there is a fine line between decluttering and denuding – removing too much can leave your home looking cold and uninviting. Learn the difference and make sure your buyers feel “at home” in your property.

Decluttering involves carefully removing excess personal items and décor to create a clean and appealing space. On the other hand, some home sellers go too far and end up with sterile rooms that lack any warmth or personality. Buyers aren’t attracted by stark white walls with minimal furnishing any more than they are by wall-to-wall clutter. Buyers want a home with style and energy.

As you prepare for showings, start by removing extra “stuff.” Remove excess items from tabletops, countertops, shelves, and personal items. You do want a lived-in feel but allow some empty areas that make rooms look larger and brighter. Once you’ve removed unnecessary items, strategically return special décor and the occasional family picture or two.

Ultimately, the goal is to create a balance between decluttering and maintaining the charm and personality of your home. Your buyers are searching for a family home, so keep some “family” in the mix.

7 Ways to Save Money on Home Insurance

Home insurance is critical for homeowners. It protects you from unexpected damage due to fire, wind, flood, and more. Unfortunately, the cost of these policies can be very expensive and over the past few years, some premiums have doubled or even tripled as more natural disasters hit the country. Fortunately, there are a few ideas on how to save money on premiums. Here are 7 possible ideas to save money on your home insurance.

1. Bundle Policies – The easiest way to save money is to use the same company for both auto and home. Most companies offer significant discounts for doing all your business with them.

2. Increase Deductibles – Raising your deductible on all policies, even just a little can save money overall. Consider how much you are able to spend before relying on insurance and see how much you can save.

3. Home Security Systems – Most companies offer a nice discount for home security, plus you have the added benefit of greater safety for you and your family.

4. Good Credit – A higher credit score will likely give you a lower premium. Be sure to ask your insurance company to review your score at each renewal period.

5. Review Coverage – Do you have health insurance at work? Then maybe you don’t need medical coverage through your auto policy? Review your policies and make sure you need everything you’re paying for and always seek the advice of your insurance agent.

6. Claim Free – Insurance is there to use, but you may not want to use it for everything. If you have a $1000 deductible, for instance, it does not make sense to submit a claim for damage that totals $1150. Staying claim-free saves money.

7. Finally, shop around. At each renewal period, take the time to compare leading companies and make changes when necessary. Switching companies is very easy and can save you hundreds of dollars. Consult with your insurance agent to find out if any of these ideas might work for you.

Real vs Personal Property in a Real Estate Transaction

When buying or selling a home, often misunderstandings occur over the distinction between “real” and “personal” property. Real estate agents across the nation frequently end up playing referee in situations fueled by misconceptions, which can create tension and sometimes even kill a sale. Understanding the difference is important to anyone engaged in a real estate transaction.

In simple terms, “real” property is the land and anything permanently attached to it, while “personal” property are items that are moveable. In this sense, real property obviously includes the home itself, along with other structures, such as a detached garage or barn, etc. It typically includes fixtures inside the home, such as lighting, faucets, built-in appliances, garage storage or racks, even curtain rods.

“Personal” property, being moveable, would usually include everything else. A refrigerator that is not considered a built-in could be included on this list. So would a free-standing BBQ Island, or a mounted TV. As you can see, some of these items may be controversial if there is not a clear understanding about what the seller intends to take with them when they move in the contract.

The best practice is for a seller to provide a list of any item they intend to keep that could be confusing and ensure it’s spelled out on the contract. This way, both parties have a clear understanding of the sale and the buyer does not plan a family BBQ on move day and find it gone.

Why Didn’t My House Sell?

There is nothing more frustrating for a seller than to watch houses around them sell like hot cakes while theirs lingers on the market. Finally, when the listing expires, they find themselves asking why? Why didn’t my house sell? In a robust housing market like we’ve had the past few years, the good news is there are some common reasons why a home doesn’t sell. If you find yourself in this position, ask yourself these questions, and then correct them and relist them.

· Did You Stage Your Home? We’re not talking about expensive services that bring in all new furniture here, but you do need to make your home attractive. The basic “curb appeal” rule still applies, even in a “sellers’ market.”

· Did You Limit Access? When homes are moving quickly, it’s tempting to assume every home will get multiple offers. But buyers still want to view the home before making that offer, if your home is difficult to see, you will lose potential buyers.

· Did You Price Your Home Correctly? Setting the right price is always important. Even when prices are rising, an unrealistically high listing price will cause buyers and their agents to ignore the home.

· Did You Hire The Right Agent? Sometimes, it really is the agent’s fault. The right agent will properly market the home, communicate frequently, offer advice about price/offers, and make themselves available. They should be giving feedback throughout the process about adjustments to ensure that the home is seen and is appealing to potential buyers.

If you answered “no” to these questions, then relisting may be a great option. Make the changes you need to, and then relist the property. This time, you may not need to ask yourself, “why didn’t my home sell”?

10 Questions You Need to Ask Your Contractor Before You Hire Them

Hiring the right contractor can mean the difference between a successful remodeling project and a nightmare. The contractor is responsible for hiring the best tradesmen, budgeting, ordering raw materials, timing, and much more.

Before you meet with a contractor, it’s important to prepare. Not only should you be clear about the scope and goals for the project, but you also need to have questions about their business and these 10 questions can help you ensure you are hiring the best person for your needs.

1. Are you licensed and bonded? Can you provide information about your insurance coverages and exclusions?

2. What kind of project management system do you use? What is your communication cadence with your team and with me?

3. What is your policy regarding the cleanliness of the job site? How do you ensure employee safety on the job site?

4. Do you have a portfolio of similar projects and recent work with photos and/or videos?

5. Will you give me some references of recent past clients?

6. Can you provide me with a sample contract in advance for review?

7. How are selections and allowances handled?

8. How are payments handled? Will you provide a payment schedule?

9. What is the estimated time frame for planning, start date, and completion?

10.What penalties will you pay for delays caused by your team? How is fault defined for delays? Is this in the contract?

Remember, a home remodel can cause a great deal of upheaval, weeks or months of workers, delays, and adjustments. While you can’t plan for all contingencies, you can hire the best possible contractor. This puts you in the best position for a successful project.

The Real Reason Your Agent Wants You Gone During Showings

There are several good reasons for homeowners to make themselves scarce when potential buyers come to view their house. While one motivation is avoiding problematic comments, there are other benefits to giving prospective buyers space during showings.

For one, an empty home allows potential buyers to envision themselves living there. With the sellers out of the way, buyers can move freely through the rooms and picture where their own furniture and belongings could go. An unoccupied house becomes a blank canvas for buyers to mentally customize to their own lifestyle and needs.

Leaving also allows buyers privacy to discuss their impressions and point out pros and cons to each other candidly. They may feel more comfortable critiquing elements of the home or debating if it meets their wish list when the sellers are not present. This facilitates an open dialogue between potential buyers.

Finally, an empty house also provides a neutral atmosphere for buyers to evaluate it objectively, without sellers unconsciously influencing their perspectives. Buyers can take their time forming their own opinions when touring alone, without chatting with sellers or feeling pressured in any way.

Vacant showings also enable buyers to visualize a future there, speak freely, and decide independently. These benefits make it advisable for sellers to make themselves scarce during viewings.

Don’t Let Small Problems Become Big Insurance Issues

Home maintenance is important for homeowners. Small issues like a loose shingle or minor leak may seem minor, but they can turn into bigger problems over time if left unaddressed. Poor home maintenance can potentially lead to insurance claims being denied if the damage arises from deferred maintenance. Insurance policies generally cover unexpected damage, not issues that developed from lack of home upkeep.

Some insurance companies are increasing home inspections during the renewal process to check for maintenance issues. Homeowners may receive a list of items needing repair, or in more serious cases, a non-renewal notice requiring them to find a new insurer. This demonstrates how critical home maintenance is for continuing coverage.

In summary, staying on top of home repairs and maintenance is key for homeowners. Minor issues should be addressed before they worsen and potentially affect insurance coverage. Homeowners who are not diligent with upkeep may need to enlist the help of professionals to keep their homes in good shape. Maintaining your home protects your investment and helps avoid problems with insurance down the road

Avoid Short Term Rental Home Mistakes Before You Bu

The short-term rental (STR) market has exploded since the Covid-19 pandemic. As America’s workforce raced home, people realized that they could work from anywhere. This, coupled with the desire to isolate oneself and family from other people during vacations, created a strong demand for STR properties. As the trend boomed, large and small investors jumped into the stream and bought properties to market as short-term rentals.

Owning an STR can be a great investment. In addition to the incremental income, the home appreciates in value, and the owner may even find time to use the property themselves. But owning this kind of rental isn’t as easy as putting a lockbox on the door and washing the sheets. Before investing in a STR, consider these 5 things.

1. Local Zoning and HOA Rules – This may seem obvious, yet every year people buy homes with the intention of using it as a STR only to find that the local authorities prohibit that kind of rental. Often, one must rent the home for 30+ days as part of an HOA or local zoning law.

2. Property Management – The wrong property management company can cost the homeowner time and money. Bad reviews, property damage, and mismanaged funds are just a few of the problems caused by the wrong manager.

3. Property Condition – While it’s important to buy a home the owner can handle. Simple cosmetic changes are easy to fix for a home in the right location.

4. Personal Taste – One of the biggest mistakes investors make is to buy what they like, instead of the right property for a short-term rental. They should consider why someone would come to a STR in that area and find a property that appeals to that.

5. Part-Time Manager – Regardless of how handy the owner is, owning a vacation rental is a full-time job and should be managed by a professional management company.

Renters of short-term rentals are choosing the privacy and intimacy that an STR offers, but they expect to have hotel-quality service. This is a high bar and before buying a home to use as a STR, investors need to carefully consider all the aspects of this kind of ownership

7 Common Homebuyer Regrets You Want to Avoid

7 Common Homebuyer Regrets You Want to Avoid Most homebuyers don’t regret becoming homeowners. In fact, owning a home is one of the biggest contributors to lifestyle satisfaction. But this doesn’t mean that these homebuyers don’t have regrets about their buying choices. Most new homeowners will happily share some of the mistakes they made and how they could have avoided them. Fortunately, you don’t need to learn from your own mistakes. Here are the 7 most common homebuyer regrets.

1. Spending Too Much – There’s nothing wrong with stretching a little but overpaying for what you really need is the largest regret most new homebuyers have.

2. Not Shopping for a Mortgage – With interest rates on the rise, it’s important to take the time to look at all mortgage options before choosing.

3. Rushing into the Home Purchase – In a competitive market, it may feel like you need to move quickly, but some homeowners later regret the house, the neighborhood, or the city later.

4. Miscalculating the Cost of Homeownership – There are a lot of extra costs to homeownership: maintenance, repairs, upgrades, taxes, insurance, etc.

5. Underestimating the Time or Cost of Renovations – Oh those HGTV shows that make renovations and upgrades look easy. Often, new homeowners find they are incapable of doing the work and wind up with half-finished or poorly completed work.

6. Choosing a Home that Doesn’t Fit – It’s easy to fall in love with a great view or chef’s kitchen, but if you need 4 bedrooms, then buy a home with 4 bedrooms.

7. Not Using an Agent – It’s more common than you think for a homebuyer to walk through an open house and use the seller’s agent to “save money.” They may get a small credit due to lower commission, but they lose having their own advocate in the process.

No one wants to look back at their home purchase and have regrets. Consider these common mistakes before you head out, so you can buy the right home at the right price for your needs.

Buyer’s “Love Letters” – Should You Read Them When Selling Your Home?

Selling a home can be an emotional experience. As the seller, you want to make sure that the buyer loves the home as much as you do and will take care of it. In other words, you’re looking for the perfect buyer with the perfect offer. Home buyers understand this, and in the recent seller’s market, some buyers have written heartfelt letters to the sellers about how much they love the home, hoping it will tip the scales in their direction. But as a seller, making decisions based on these “love letters” could cause problems, leaving us with the question, “should you read them?”

Buyer love letters can provide valuable information to the seller. With properties receiving multiple offers, it can be difficult to choose the best one. By reading these love letters, you get a sense of the buyer and their connection to the home. A well written letter can ease the concern that a buyer will change their mind and can occasionally overcome a slightly lower offer.

However, simply reading the letter can introduce bias into the decision-making process and cause serious issues. The Fair Housing Act prohibits discrimination based on factors such as race, religion, or family status. If a love letter reveals personal information that falls into any of these categories, just knowing the information may open up the seller to potential issues. I

t’s natural to want your home to go to a “nice family” who will love the property as much as you do. It’s just as natural to want to ensure the new owner will fit into the neighborhood. Yet, it’s just this goal that might also cause headaches. So, if you do choose to read the letters, focus on the practical and financial aspects of the story and make the best choice for you and your goals.