Wednesday, March 3, 2010
Tuesday, March 2, 2010
Re-negotiating the sale: how and when sales are renegotiated
Standing on your lawn three days ago you shook hands with the buyer. Everyone was smiling and laughing and you thought you had a deal. But now suddenly the buyer wants to re-negotiate the sale. Should you tell the buyer to go fly a kite or is it better to bite your tongue and try to still make a deal happen? As most veteran real estate brokers will tell you - it depends.
Even the simplest real estate transactions involve conditions and contingencies which can cause a buyer to reconsider the purchase of a home. For instance, a buyer may discover easements that allow neighbors to cross the backyard, or a nest of red ants under the front porch. Rather than let the buyer ride off into the sunset, prudent sellers would be wise to at least attempt to re-negotiate the sale. On the other hand, buyers who want to change the terms of the sale as a result of buyer's remorse may need to be shown the door.
To prepare for the times when a sale may be re-negotiated let's examine the key areas buyers will be most concerned with during escrow:
1) Disclosure statements
Generally buyers will have an opportunity to review and approve a sellers disclosure statement prior to closing as a condition of sale. A disclosure statement is a document that is designed to reveal any material defects known by the seller to the buyer. In many cases these forms will be delivered after the buyer has made an offer but before closing, giving the buyer an opportunity to reject items revealed on the report they weren't previously aware of. To minimize the risk of this occurring, consider delivering the disclosure statement to the buyer before they make an offer.
2) Preliminary title reports
Once escrow is opened the buyer will receive a copy of the preliminary report. This report will reveal all (or most) of the recorded documents that affect the title to the property. These will likely include easements, licenses, covenants, conditions, restrictions, and outstanding mortgages. If an item jumps up that a buyer wasn't expecting to see, it can be a problem. An example might be an expired access easement, a restriction on the number of vehicles a buyer can park on the property, or an unexpected tax assessment. To avoid surprises, consider requesting a preliminary title report from a local title company before you receive an offer.
3)Inspection reports
Inspectors are hired by buyers to ensure that the home they are purchasing doesn't have any hidden problems that even the seller may be unaware of at the time of sale. Once received, a negative inspection report can give a buyer a window of opportunity to either withdraw from the sale or attempt to renegotiate the sale. To avoid surprises, many sellers conduct a pre-inspection of the home by a licensed professional. By dealing with any negative issues in advance a savvy homeowner can deliver a "clean" report to the buyer. Be aware though that any issues discovered during a pre-inspection will likely need to be disclosed to a buyer whether you fix the issues or not.
4)Appraisals
As over 90% of buyers will utilize some type of financing to purchase their next home, it's highly likely that your home sale will involve an appraisal. As appraisers and banks have taken the brunt of criticism for the recent market meltdown, they are much more cautious when assigning fair market value to a home. The result is that an appraisal can often come in lower than both the buyer and seller have agreed to. If this happens, be prepared for the buyer to ask for the price to be adjusted downward to meet the appraisal price. To help avoid low appraisals, many sellers and seller's agents attempt to provide the appraiser with the comparable sales that were used as a basis for the listing price, as well as notes on any improvements that have been done to the home that would not necessarily be obvious.
The question to ask yourself if a buyer is attempting to renegotiate the terms of the sale is - Am I OK with this sale failing? If the answer is no, consider how far you will go to keep the sale together. What will you bend on? What won't you bend on? The best negotiators are those that see the big picture. They know their priorities and are willing to make small concessions to achieve bigger goals.
Have a question? Contact us HERE
Issaquah Homes for Sale
Issaquah - 18707 SE Newport Way , #202, - $279,000.00
2 Bedroom 2 Bathroom Condo. Slab granite & hardwoods in kitchen. Gas fireplace and gas cooktop. Master bath w/slab marble counter tops, the vanity has 2 under mount sinks & the shower is tiled. The master bedroom and living room face Northerly. For more information contact Matt Jensen at 206-909-8200.
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All information in this site is deemed reliable but is not guaranteed and is subject to change |
Adjusting to the market: Five red flags to watch for.
Something has gone haywire. You put your home on the market over three months ago and you haven't yet received an offer. You thought you did everything right. You listened to your agent by following his advice on pricing, completing a few home improvement projects, and even allowing him to show the home on short notice. Still nothing - it's all quiet on the home selling front.
When you hire a real estate professional, even a seasoned agent, it's natural to assume that the counsel and advice you receive from these market experts should always lead to the immediate sale of your home. But often this isn't the case. Why? Because the pool of real estate buyers available in any given market determines the salability of a home, not agents, insurance agents, mortgage brokers, title companies, or even homeowners. Homebuyers can be a fickle group who can turn on a dime, moving towards or away from pricing categories, home styles, niche markets, and even whole neighborhoods at the drop of a hat. This is exactly why it's so easy to make a mistake when positioning a home for sale, and why it's critically important to adjust your strategy when necessary.
To stay vigilant let's take a look at five red flags to watch for:
1) No showings
On average a home buyer will look at 10-15 homes before making a buying decision. If you are receiving few or no showings as the weeks roll by this should be a clear indication that buyers are rejecting the price of your home. Sure they may see your listing in real estate magazines, the newspaper, or the internet, but as quickly as they are exposed to your home they reject it. Why? It's overpriced and the only solution is to adjust the price.
2) No offers
If buyers are viewing your home regularly yet you receive no offers, this can be a red flag that buyers aren't rejecting the price but the home itself. This is a classic condition issue challenge which has one of two solutions. The first is to interview buyers or their agents to discover their objections to your home and then immediately fix those issues. If you are unwilling or unable to do this, the only other option is to adjust the price to compensate for the cost of fixing problems after the buyer takes possession. This technique is often referred to as providing an allowance.
3) Lowball offers
If you have received one or more low-ball offers, this can be a red flag that buyers don't perceive the same level of value in your home as you and your agent. To help overcome this obstacle you may wish to allow your agent to release the competitive market analysis, or formal appraisal that was used to price the home to potential buyers. In addition, provide buyers with a list of improvements you have made to the home, as well as other value points that would be important for them to know before making an offer. In the end you may still need to make either pricing or condition adjustments, but at least you will have made an effort to build value in the buyers' eyes.
4) Agent comments
In most cases a cooperating agent will be the one who brings a buyer to your home. But if agents perceive that there is a challenge with your listing - something that they believe will turn buyers off - it's a good bet that they won't want to waste their time showing your listing. To deal with this challenge many sellers ask their listing agent to conduct a tour of the home with cooperating agents. They invite these agents to fill out comment cards with their opinions on price, condition, and overall salability. To increase the odds agents will unleash their gentle brutality on your home, make sure the comments cards remain anonymous.
5) Market changes
The real estate market is changing rapidly. For instance, home owners who put their home on the market last week and, at that moment had the best buy on the block can easily find themselves overpriced the following week when all of their neighbors reduce their prices. To stay ahead of the market curve you must be aware of your competition. Ask your agent for regular updates on every home you are competing with for a buyer's attention. Pay close attention to pricing and condition changes, pending and closed sales, as well as new listings, which may impact your price and position in the market.
To sell your home requires that your home is exposed to every ready, willing, and able buyer in the market place, and that your home offers those same buyers the best value for dollar spent. In other words, exposure by itself isn't enough. No amount of advertising or marketing will force a buyer to buy an overpriced listing or a home in inferior condition compared to the competition. It's tough but true. Successful sellers embrace change and aren't afraid to adapt to the market or to buyers' needs.
You can learn more about The Cascade Team Real Estate program by clicking this link.
Monday, March 1, 2010
Woodinville Homes for Sale!
Woodinville - 19922 NE 177th - $315,000.00
Not only is this wonderful home in a great neighborhood close to the library and parks, but it also boasts a fresh remodel including new counters, floors, and light fixtures in kitchen, updated bath, and new paint and light fixtures thru-out. You'll also find hdwd flrs thru-out, a big pantry, abundant storage, fp w/insert, and built-ins. Outside you'll find features such as a great deck, wonderful raised gardens, fruit trees, a pond, and a mature flowering landscape. For more information contact Ed Irwin at 206-275-4500.
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All information in this site is deemed reliable but is not guaranteed and is subject to change |
Auburn Homes for Sale
Auburn - 312 35th St SE - $320,000.00
Great investment opportunity! Two Duplexes for sale. See listing # for adjacent duplex. Buy both and seller will discount. Each unit has: 3 bedrooms, 2 bath with laundry area and one car garage. It is very spacious over 1500 sqf. and good condition. 100% occupancy for the last few yr's. Close to schools, shopping and Hwy's 167 and 18. For more information contact Matt Jensen at 206-909-8200.
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All information in this site is deemed reliable but is not guaranteed and is subject to change |
The Cascade Team for Buyers
The Average Home Buyer using The Cascade Team Real Estate in 2009 saved $17,642 off the listed price when we put an offer in! Plus we also offer a
Buyer Bonuswhich added an additional $2,492 based on our average sales price of just under %500,000. THAT'S $20,134 IN SAVING FOR THE AVERAGE BUYER!!!
Why Choose The Cascade Team Real Estate When Buying A New Home?
The Cascade Team Real Estate Uses Technology, HomeBuyer Rebates and Simply Outrageous Service
The Cascade Team is a real estate brokerage like no other, because of the home and real estate search tools, service and savings we provide to our homebuyer clients. We understand that in today’s home buying environment we need to provide the highest level of real estate service possible. We utilize online home search tools to help our homebuyer clients better understand home values and how the housing market is changing. With our local real estate agent’s knowledge and effective use of mls home listing tools, they can focus more of their time servicing their clients and allow you to preview homes for sale within hours of them being listed on the MLS. In the end, you get the perfect combination of online home buying analysis tools and that personal service when searching for your new home.
What Are Home Buyers Looking For In Today’s Real Estate Market?
We looked at what homebuyers wanted from a real estate brokerage and have developed our foundation upon these three principles:
Information: Timely real estate information and home value analysis at regular intervals, so you don't miss out on new mls listings that meet your home buying criteria.
Trust: A trusted real estate agent you can rely on to find the homes for sale you most want to see.
Results and Savings: Exceptional results, driven by a strong home purchase negotiation advantage and a buyer rebate back in the homebuyers pocket at closing.
We have developed one of the most powerful home buyer real estate web sites to provide you with active and sold mls listing information most other companies are not willing to share. When searching for homes for sale on our web site, you as a home buyer will be able to see price per square foot and days on market; powerful information we can use in the home purchase negotiation process. In addition, you have access to school information, WASL scores, and can compare school districts side by side to help you determine what area you want to consider purchasing your new home in. Lastly, you have the ability to run hoome comparison’s (CMA’s) using real MLS sold listing data, and can see for yourself what home prices closed at; without having to pull tax record information. What other real estate company provides you this level of housing information? The Cascade Team Real Estate does, because you can make better home buying decisions if have all the information.
Have you ever found a property you were interested in, only to find that it already had a purchase contract on it? Our real estate agents provide you with home search tools that allow you to be notified via email as soon as homes of interest hit the market. They are constantly watching the housing marketplace and proactively sending you new MLS listed homes to review that meet your search criteria. That is what we call Simply Outrageous Service!
Did you ever think you would be able to get this high level of real estate service and be paid a buyer rebate back for using it? We understand our clients participate in the home search process and we believe that you deserve to be rewarded for doing some of this work. We don’t ask you to visit homes on your own with the listing agent, or to only let us know when you find a property you want to buy. However we do know that you are participating in the home purchase process. Hence, we believe that you should be rewarded for that effort. That is why we have The Cascade Team Buyer Rebate Program. We give you 0.5% back on the purchase price of the home at closing that can be applied towards closing costs or rate buy downs; TAX FREE. Because it reduces the amount of cash you need to bring to closing, it's just like putting part of our mls commission in your pocket. It’s our way of thanking you for your business.
If you buy a new home and sell your current house with The Cascade Team, you can save even more; $10,000, $20,000 or even $30,000.
Click Here to see a brokerage comparison or call us at (425) 396-4569 for more inforamtion.
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