Ten percent to savings, ten percent to the church, and the rest should cover your budget. My mother taught me a lot --but she never taught me about real estate.
Mother, this may seem self-serving, but the scoop is -- you do need a Realtor. This is complicated stuff especially in a fluctuating and changing market. Just ask my client from the East Coast who was about to put an offer down on a $699,900 home in Fort Wayne until I told him that the comparable numbers showed that the home was worth less. A lot less! A $275 appraisal verified that it was worth only $475,000.
As a four-time home buyer myself, this Realtor stuff has provided an eye-opening experience. Many people fall in love with a home and call the agent with the Rembrandt smile on the sign hanging in the front lawn. If you hire that person to represent both you and the seller, it is like asking the first base coach for the Cubs to coach the visiting team too. There is a definite conflict of interest. That agent is only obligated to tell you what they are required to disclose by law. If you do go this route, consider hiring an independent appraiser to set the price and an inspector to disclose all defects.
Speaking of price - it is ALL about the MARKET. It doesn't matter how much you have paid or owe for your home or improvements -- or how much you need to pay for your kids' college expenses. No expensive slick marketing pieces, dancing girls or offers of spectacular sunsets can sell a home that is overpriced. The value of your home is only based on the price of similar homes in your subdivision that have recently SOLD. Your home's listing price should be slightly above the recent SOLDS, slightly below where the comparable ACTIVE listings are - and way below where EXPIRED properties have been priced. If you do not price your home properly, it WILL BE invisible to buyers who could be buying and moving into your home.
There are only two factors that a homeowner can control - one is PRICE and the other is the CONDITION of the home. Buyers walk into homes and only see too much furniture, old carpet, nic-naks and your dentures. Most buyers cannot imagine what they cannot see and they need to see the available space --- not your stuff! And, no smells please. Potpourri, candles, pets and musty odors have all generated the "if you can smell it, you can't sell it" cry from potential buyers and Realtors.
Before you sell your home, it must be Q-tip CLEAN, have neutral COLORS and be CLUTTER FREE. Consider hiring a reputable stager – find one at stagedhomes.com. The cost of staging will always be substantially less than your first price reduction (3-4%).
We all love open houses but in reality they are made for Realtors and nosey neighbors. Only one percent of homes on the market are sold through open houses. In reality, there are specific agent strategies for capturing potential buyers through open houses.
The #1 agent in your community may not always be your best choice. Sure, they will be able to crank up another sign and throw your information into the Multiple Listing Service. But with each additional listing they take on, they are less likely to make your home and your calls a priority. Look for an agent with out-of-the-box ideas, a marketing plan specific to your home, and a guarantee of excellent customer service. They should be willing to provide feedback on home showings within twenty four hours and communicate by phone or email at least once a week. You should interview at least two agents based on their performance and portfolio prior to placing your home on the market. Otherwise it will be a long six months!
Agents are required to tell you if there is a cracked foundation or flooding problem but they are prohibited BY LAW in Indiana from telling you if the home you are buying is psychologically affected. That is, unless you specifically ask. So if the pristine home you are viewing is the result of a cleaned-up crime scene, you won't know until your new neighbor spills the beans. Ask the obvious questions before you sign that contract if you think that the history of a home lives on.
Also, by law, agents are not allowed to steer you to the best school district or most crime-free area. Use the Internet to compare Indiana School Districts at http://ideanet.doe.state.in.us/htmls/education.html or research the Indiana sexual offender database at http://www.insor.org/insasoweb/. These and other essential links are also available at ginazimmerman.com
Finally, because of anti-trust laws, the commission rate is always negotiable. Marketing real estate is expensive and it takes time -- so don't be a tightwad. Always make sure that the listing agreement states that the buyer's agent will receive at least 3% percent. Otherwise the showing agent might bypass your listing, if there are other similar properties available with a more appropriate return.
Your home is probably your biggest investment and will provide a nest egg for years to come. So if you are buying, respect the seller and realize that their home is worth what the market will support. And if you are a seller, walk through the front door of your home with fresh eyes and view it as a buyer would. And with a professional Realtor assisting you, you can sit back and relax. Because, your home will sell--eventually.
Gina Zimmerman (ginazimmerman.com) is a Realtor with RE/MAX Results and an Accredited Staging Professional (ASP). She studied personally with Barbara Schwarz, the founder of the Home Staging movement and stagedhomes.com. Gina has been a resident of Northeast Indiana for 22 years. Her professional career also includes working for more than two decades in strategic planning and policy development with the U.S. House of Representatives, The U.S. Senate and The White House.
Mother, this may seem self-serving, but the scoop is -- you do need a Realtor. This is complicated stuff especially in a fluctuating and changing market. Just ask my client from the East Coast who was about to put an offer down on a $699,900 home in Fort Wayne until I told him that the comparable numbers showed that the home was worth less. A lot less! A $275 appraisal verified that it was worth only $475,000.
As a four-time home buyer myself, this Realtor stuff has provided an eye-opening experience. Many people fall in love with a home and call the agent with the Rembrandt smile on the sign hanging in the front lawn. If you hire that person to represent both you and the seller, it is like asking the first base coach for the Cubs to coach the visiting team too. There is a definite conflict of interest. That agent is only obligated to tell you what they are required to disclose by law. If you do go this route, consider hiring an independent appraiser to set the price and an inspector to disclose all defects.
Speaking of price - it is ALL about the MARKET. It doesn't matter how much you have paid or owe for your home or improvements -- or how much you need to pay for your kids' college expenses. No expensive slick marketing pieces, dancing girls or offers of spectacular sunsets can sell a home that is overpriced. The value of your home is only based on the price of similar homes in your subdivision that have recently SOLD. Your home's listing price should be slightly above the recent SOLDS, slightly below where the comparable ACTIVE listings are - and way below where EXPIRED properties have been priced. If you do not price your home properly, it WILL BE invisible to buyers who could be buying and moving into your home.
There are only two factors that a homeowner can control - one is PRICE and the other is the CONDITION of the home. Buyers walk into homes and only see too much furniture, old carpet, nic-naks and your dentures. Most buyers cannot imagine what they cannot see and they need to see the available space --- not your stuff! And, no smells please. Potpourri, candles, pets and musty odors have all generated the "if you can smell it, you can't sell it" cry from potential buyers and Realtors.
Before you sell your home, it must be Q-tip CLEAN, have neutral COLORS and be CLUTTER FREE. Consider hiring a reputable stager – find one at stagedhomes.com. The cost of staging will always be substantially less than your first price reduction (3-4%).
We all love open houses but in reality they are made for Realtors and nosey neighbors. Only one percent of homes on the market are sold through open houses. In reality, there are specific agent strategies for capturing potential buyers through open houses.
The #1 agent in your community may not always be your best choice. Sure, they will be able to crank up another sign and throw your information into the Multiple Listing Service. But with each additional listing they take on, they are less likely to make your home and your calls a priority. Look for an agent with out-of-the-box ideas, a marketing plan specific to your home, and a guarantee of excellent customer service. They should be willing to provide feedback on home showings within twenty four hours and communicate by phone or email at least once a week. You should interview at least two agents based on their performance and portfolio prior to placing your home on the market. Otherwise it will be a long six months!
Agents are required to tell you if there is a cracked foundation or flooding problem but they are prohibited BY LAW in Indiana from telling you if the home you are buying is psychologically affected. That is, unless you specifically ask. So if the pristine home you are viewing is the result of a cleaned-up crime scene, you won't know until your new neighbor spills the beans. Ask the obvious questions before you sign that contract if you think that the history of a home lives on.
Also, by law, agents are not allowed to steer you to the best school district or most crime-free area. Use the Internet to compare Indiana School Districts at http://ideanet.doe.state.in.us/htmls/education.html or research the Indiana sexual offender database at http://www.insor.org/insasoweb/. These and other essential links are also available at ginazimmerman.com
Finally, because of anti-trust laws, the commission rate is always negotiable. Marketing real estate is expensive and it takes time -- so don't be a tightwad. Always make sure that the listing agreement states that the buyer's agent will receive at least 3% percent. Otherwise the showing agent might bypass your listing, if there are other similar properties available with a more appropriate return.
Your home is probably your biggest investment and will provide a nest egg for years to come. So if you are buying, respect the seller and realize that their home is worth what the market will support. And if you are a seller, walk through the front door of your home with fresh eyes and view it as a buyer would. And with a professional Realtor assisting you, you can sit back and relax. Because, your home will sell--eventually.
Gina Zimmerman (ginazimmerman.com) is a Realtor with RE/MAX Results and an Accredited Staging Professional (ASP). She studied personally with Barbara Schwarz, the founder of the Home Staging movement and stagedhomes.com. Gina has been a resident of Northeast Indiana for 22 years. Her professional career also includes working for more than two decades in strategic planning and policy development with the U.S. House of Representatives, The U.S. Senate and The White House.
