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  How to Use Comparable Sales to Price Your Home

  Before you put your home up for sale, use the right comparable sales to find the perfect price. Read

Visit houselogic.com for more articles like this.

Copyright 2012 NATIONAL ASSOCIATION OF REALTORS®

Real Estate Corner…

      Q.    We Are Considering Purchasing A Home And Are Uneasy About The Negotiation Process.  Can You Help?

       A.     The goal of a positive real estate negotiation is to result in a win-win agreement.  This is an agreement where both the seller and buyer feel they have received an equitable deal. 

      Here are a few simple tips to help ensure that you negotiate fairly. 

• First, make sure that you offer a fair price.  Nothing turns a seller off faster than a “low-ball” offer.  Likewise, don’t get into negotiations on a grossly overpriced home.  This can leave you feeling taken advantage of and exhausted.  Both the asking price and your offer should be based on current and factual comparable sales in the area. 

 

• Second, always respect the priorities of your counterpart.  Try to identify the other side’s motivations.  Then, examine your own.  If some items prove to be a sticking point in negotiations, offer to meet half way.  This may require you to pay half of some expenses or modify your closing date, but in the end you will feel as if you have fairly compromised.  If you have addendums to your main agreement, it may be helpful to solidify the purchase agreement and then deal with the addendums later.

• Finally, using a third party on your behalf will keep you focused and emotionally disconnected—resulting in a much better outcome.  Look for a CNE ~ Certified Negotiation Expert. I’ve made the art of successful negotiation the cornerstone of my business.  I work hard to understand the needs of both the seller and the buyer in the transaction, and can put these years of experience to work for you. 

If you are thinking of selling or buying soon,

be sure to interview your Real Estate Professional...

how do they overcome objections,

how do they negotiate.

If I can assist you further, please call me at 405-820-1740.

rhonda@rhondasrealestate.com.

The Complete Home Buyers Handbook

Insider's Guide to Saving Money &

Eliminating Risks When Buying Your First Home!

Chapter 3 – Watching The Market

 

Now that you know more about finding a real estate agent, you should begin watching the housing market carefully in the weeks or months before buying your first home in order to get a feel for whether it is in your favor.

Watching The Housing Market

For the past year, the housing market has been favoring buyers. Soaring market values were short-lived as many people decided they just could not afford to live in certain areas because of the cost of housing.

This has caused many sellers to lower their prices. While this sounds like good news for you, the housing market can be very fickle.

Depending on where you want to live, you may end up having to pay a small fortune for the home of your dreams.

This is why watching the market, surveying neighborhoods, and finding a good agent will help you in your search.

While you should not become a slave to the housing market, you should keep the following in mind before buying your first home:

• The past market value of the home you are interested in buying.
• How much house your budget can get you in different neighborhoods and towns.
• Neighborhood value.
• How much the home should increase over time, and
• Price reductions that may be available.

Just because you buy a home for a great deal does not mean you will make a huge profit when it is time to sell it. The housing market will continue to change and since this is your first home, you may want to choose something you can pay off quickly and make a larger profit on in the future.

Also, remember that any improvements you make on the home will increase its overall value. Just don’t spend too much money on improvements. Creating a home improvement budget and sticking with it will help you make those monthly mortgage payments and other payments that will be due.

One of the biggest mistakes that first time homeowners can make is buying a home for a lot less than they budgeted and then making improvements that will end up costing more money in the end. If you can find a great deal on a home, use that extra money as a cushion in case you lose your job or are too ill to work.

Owning a home is a big responsibility. Knowing how the market is moving and spending your money wisely will help when you are creating a budget, applying for a mortgage, and deciding how much to put down on a home.

Making The Most Of The Housing Market

While you should be watching the housing market, there are other areas of interest you should be watching also, such as:

• National interest rates for mortgages.
• Building rates in your area.
• Number of foreclosures in your area, and
• Stock market and gasoline prices.

National Interest Rates For Mortgages

Even though the housing market may be going your way does not mean that the interest rates you could be paying are. In the times when the housing market has taken a slump, interest rates tend to rise in order to retain the natural balance within the economy.

The interest rate you receive will depend on many factors, including:

• Other loans
• Current credit score
• Credit history
• Number of credit cards
• Yearly income
• Owed debts
• Current interest rates
• Type of lender
• Time of year, and
• Adjustable and fixed rate mortgage

If you see housing prices dropping, you may opt to buy a larger home than you would have if the prices had been higher a year ago. While you will be saving money on that end, you may be paying more each month because of the interest rate you received.

Building Rates In Your Area

If you notice the housing market has also caused the building of new homes in your area to decrease, then you may have to enter into a bidding war in order to buy your first home. When new home construction goes down, this can mean one of several things:

• The area is no longer popular.
• The interest in buying a new home has diminished.
• People can no longer afford to purchase new homes.
• People are opting for older homes that are less expensive to heat and keep cool during the year.

While that housing slump may bring a reduction of housing prices, you should consider making a bid soon after finding the home of your dreams because bidding wars will only end up costing your more money.

Number Of Foreclosures In Your Area

When looking for a home, you should consider looking at homes that are under foreclosure. This can be for many reasons, but usually banks that hold the titles want to unload these homes quickly so that they do not lose more money than necessary. Many times auctions will be held or the home will be advertised as a foreclosure in the newspaper or online.

You should check out these homes because you may find exactly what you are looking for in a home.

Stock Market And Gasoline Prices

Even if you do not play the stock market game or own a car, you should still pay attention to these areas because they are usually what will dictate housing prices and the cost to heat and cool the home.

When the stock market is doing well many people will spend their money more freely, which will give way to higher housing prices. But when gasoline prices go up so will the price to heat and cool a home, which may make homebuyers reconsider buying until the prices fall again.

This could be a good time to buy a home if you are willing to pay a little more each month in utility costs.

The impact society can have on the housing market can be huge, and it can also have lasting affects. Buyer’s market’s are created when there are more homes available than buyers, while seller’s market occurs when there are more people who want to purchase homes than there are for sale. These housing markets go back and forth due to issues mentioned above.

In The End

Buy a home when you are ready. Many times, people will buy a home because it is cheaper in the long run than paying rent each month.

The downside to home ownership is that you have to make your mortgage payments on time each month. Very few lenders will give you more time to come up with the money.

If you miss even one payment, your home could be foreclosed upon. You will have no place to live and your credit score will suffer severely.

If you can afford to make the move into your new home now, you should not wait too long before making an offer. The housing market can change quickly and with competition out there, you may end up losing more money if you don’t make an offer after seeing a home that you like.

Rent To Own

Another option you may have is to buy the property you are currently renting or rent a property that also offers you the option to buy after a certain amount of time. This will give you a chance to see if you like living in the home and will give you time to get your finances in order.

Rent to own properties are usually older than other homes and have been rental properties for some time. This means that they may not be in great shape. If you are looking for a property that you don’t mind repairing, then this option may be for you.

When looking at a rent to own property, you should ask the following questions:

• How old is the home?
• How many times has it been rented out?
• What is the mortgage payment on the home?
• What is the rent per month for the home?
• How long will I have to make my decision?
• What happens if I change my mind?
• What happens if the home owner changes their mind?

You should still sign the proper contracts stating that you are interested in buying the home after the given time period. This will protect your rights and the rights of the current homeowner.

New Homes

When you think of your first home, you may be thinking of a brand new home. Since the housing market is favoring buyers at the moment, you may get a great deal from a builder that is developing a new housing community, or you may find a plot of land that is in an existing community. This can be a great alternative to buying an older home for many reasons:

• You will have a part in designing the home.
• You will have new appliances and lighting fixtures.
• You will have new carpeting and flooring.
• You will be able to choose all of the fixtures, carpeting, and flooring.
• You will be able to add a porch or a patio, and
• You will be able to place the home where you want it on your property.

A new home can be very exciting, but it can also be a lot of extra work. The first step in buying a new home is to find property. You should visit builders and real estate agents who will file all of the necessary paperwork, permits, and other items needed to build on the property. This can take a few weeks, so be sure to plan accordingly.

The next step is to design the home. This is the fun part where you will get to personalize your home to suit your needs.

Once you have been approved for a mortgage, the property has passed all of the land inspections, and the home has been designed, construction will begin. Depending on the time of year, you will have to wait about 3-6 months before you can move into your new home.

After construction is complete, you should complete a walk through of the home, check all of the fixtures, and have the home inspected before signing the final paperwork. Then the home is yours.

Many people hire a lawyer during the construction phase so that all of the paperwork has been filed and there are no problems during the walk through.

Buying a new home is just one more option you should consider when looking for your first home. Home construction can vary, as there are a few ways to build a home, including pre-fab homes that will be built elsewhere and delivered to your property where they will be assembled. Look into all of your options before deciding on a home that is right for you and your budget.

Using The Housing Market To Your Advantage

By paying attention to current housing trends and keeping a watchful eye on the homes in your area, you will be able to make an offer on a home that will be accepted.

While the market is continually changing, it is a useful tool for those who are on a budget, who want to find a home that is large enough to suit their needs, and will be worth more when it is time to sell it.

When watching the housing market, consider the following:

• The number of homes that are in your area.
• The number of days the homes have been on the market.
• The price of a new home compared to those that are being sold by homeowners.
• The price of renting vs. buying.
• The number of homes that are in your price range.
• The highest price you can pay when buying a home.
• Interest rates in comparison to housing prices, and
• The time of year.

Springtime is a good time to buy a home for several reasons:

• More people want to sell.
• It is easier to make appointments to view homes.
• Prices are usually lower.
• People are more willing to reduce their asking price.
• Income tax returns can help with a buyer’s budget.

There will be plenty of people who could not sell their homes in the fall or winter months and who are trying to sell before the summertime. Homeowners that need to sell their homes before a certain time are more willing to reduce the price of their homes.

While you should consider looking at a home during any time of the year, you will find that many homes will be lower in the spring to attract buyers.

This is also the time when interest rates are re-evaluated and many lenders are willing to give loans to those whose credit is not the best. Take advantage of when interest rates are at their lowest even if it means accepting an adjustable rate mortgage. You will have the option of locking into a fixed rate at a later time.

While the housing market can change, the idea of selling one’s home will not. Homeowners may choose to wait out the current housing market, but if they are eager to buy another home or move to a new place, their wait will be short-lived.

Negotiate with homeowners until a fair price can be reached. This is the same practice during a sellers market as in a buyers market. You may have to play the bidding game for a week or two, but in the end, it is the person who needs to make the transaction happen the most that will end up compromising the most.

Next:  Chapter 4:  Home Inspections 101
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The Complete Home Buyers Handbook

Insider's Guide to Saving Money &

Eliminating Risks When Buying Your First Home!

Chapter 2 – Finding A Realtor

If you are like many people, chances are that you’ve looked around different neighborhoods, saw a few homes that were for sale, maybe visited an open house or two, and then felt stuck.

What is the next step? Approach the homeowner with a potential offer? Visit a realtor for more information and help with the purchase?

Finding the right realtor when buying a home depends on what you are looking for in a home. You may have to visit several realtors before finding one that listens to your wants and needs.


After all, you could possibly be paying them a commission once you have found a home, so you should be comfortable working with them during the house hunting process.

Choosing A Realtor

There are a few ways to find a reliable realtor.  For example, you can:

• Ask friends and family for referrals.
• Search online for approved realtors.
• Attend a few open houses and meet realtors personally.
• Visit a local real estate office, or
• Look for local realtors in your neighborhood by paying attention to for sale signs in the neighborhood.

 

 

Asking plenty of questions before looking at houses may seem like a lot of work, but when you visit a realtor for the first time, you should think about questions that will help you get to know this person who is going to help you find your dream home.


The five best questions to ask are:

1. Are you a certified realtor?
2. How long have you been in the real estate business?
3. Which neighborhoods are you the most familiar with?
4. How many homes do you have that will fit my needs?
5. What is your typical commission on a home in my price range?

Once you have asked these questions, you should be looking for honest and complete answers, good communication, and honesty. These are questions that the realtor should have practice in answering and should not have to give you a standard ‘salesperson’ answer.

If you feel uncomfortable, remember that you are under no obligation to continue with this realtor unless they have some good property matches to show you, or have exclusive rights to show properties that you are interested in.

Normally, if a realtor does not have properties that fit what you are looking for, they will recommend you to another realtor in the group. This is also a good sign because it shows that the group is looking out for your interests and the interests of its employees.

You should also pay attention to:

• How well your realtor listens to what you are looking for.
• How well they understand current real estate law.
• How many other clients they seem to have.
• How they speak to their co workers.
• How often they communicate with you on the phone or email.

 

 

In the end, you will have to be the judge of the real estate agent. If they know what they are talking about, can find out the information you need quickly, and are willing to take the time to listen to what you need, then you should work very well with them.

In some cases, you may be asked to sign an agreement that states you will only be working with a specific real estate agency or agent when looking for a home. You are under no obligation to sign this paperwork and you should only do so if you feel very comfortable.  

While these agreements are not totally binding, it could make buying a home more difficult down the road. Only sign agreements if you feel comfortable.

During your search for a real estate agent, you will find a variety of agents that will want to work with you. These include:

• Experienced agents
• New agents
• Pushy agents
• Absentee agents, and
• Hard working agents

While all real estate agents have different personalities, you will have to decide which ones you will want to work with when looking for your new home.

Experienced Agents vs. New Agents

This is an age old debate that should be addressed. While an experienced agent may have sold more homes and earned more commissions, new agents can be just as helpful and need to get some sales under their belt, which may prompt them to work harder for you.

While you should ask about their experience, you should take into consideration other traits such as the ability to listen and the ability to only show you homes in your price range.

Experienced agents and new agents have been trained in a similar fashion and only have their personalities to bring to the table.

There are experienced agents out there who will drag their feet because they are over confident or they are not as interested in their jobs as they once were. Experienced agents may know more about different neighborhoods, but some of them are not as proactive as they used to be.

You should not let inexperience deter you when looking for an agent. Many times new agents will work harder because they want to gain a reputation that they can use to build confidence in their future clients

Pushy Agents

Unfortunately, you will meet real estate agents that will want to sell you more home than you need. In an effort to earn larger commissions or to sell those properties that are more difficult, many agents will try this tactic.

This is where you will need to stand firm. You do not want to waste your time looking at homes that are beyond your price range unless you can find a way to lower the price.

 

 

While looking at possible homes is exciting, this will not last long as you will grow weary of spending all of your available time looking for a home. If an agent keeps showing you homes that are out of your price range, then you should consider finding another agent. 

Absentee Agents

Absentee real estate agents are those agents who show you a few homes and then disappear for a few weeks. These agents may be overworked, may not be able to find a home in your price range or neighborhood, or have higher priced commissions to find. Whatever the reasons, this is unprofessional behavior and should be rectified immediately, especially if you need to find a home quickly.

If an agent does not have homes in your price range or neighborhood, they should recommend another agent in the group. Agencies never want to lose customers. If your agent does not do this, find a new one.

 

 

Even agents that are overworked have time to make a quick phone call. If you do not hear from your agent in a week after your last meeting, find another agent.

Hard Working Agents

These are the best agents to find when you are buying your first home. If you find an agent like this one, do not lose them. These are the agents that will follow every lead, pass your wants and needs to another agent, and try their best to find you a home. You should expect to see a handful of homes when working with an agent like this one.

Now that you know more about what to look for in a real estate agent, you should feel a little more comfortable about working with one. They can be an invaluable source of information when you want to know more about homes, neighborhoods, and other questions about the communities you are looking at.

When looking at homes with your real estate agent, you should ask questions about the home, the neighborhood, the city or town, and any other questions you need to know in order to make an informed decision. Part of your real estate agents job is to research homes and neighborhoods so that they can answer questions that may come up.

(Whew...where to stop on this subject! Keep reading...I promise it is informative!)

Preparing To See Homes With Your Realtor

Create A List

 

 

Once you have found a realtor you are comfortable with, you will want to make the most of your time when house hunting. Giving your realtor a list of what you are looking for will help narrow the search and save everyone some time. Your list should include:

• Your price range
• Number of bedrooms you want
• Number of bathrooms
• Size of property
• Basement (finished or unfinished)
• If you want a porch, patio or balcony
• Central heat and air conditioning
• Garage
• Neighborhood, and
• Any other amenities you would like

Giving your real estate agent a list of your preferences will allow them to spend more time researching homes that fit the criteria. You should list these amenities from greatest to least important because no home is perfect and you will not get everything you want or need. Let your agent know that you are flexible, but that you really want to concentrate on certain items when looking for a home.

Viewing Homes

When looking at homes with your agent, be sure to ask any questions you may have. While these questions may seem small, they may be important to your happiness. Common questions people ask their agents are:

• How old is the home?
• How many owners has the home had?
• What kinds of renovations have been done to the home?
• How old is the plumbing?
• How low are the sellers willing to go?
• How old is the carpeting and flooring?
• How old are the windows?

While your agent may answer some of these questions before you ask them, you should ask any questions that may influence your decision to buy a home. If you do not want to put too much work into fixing up the home, you may want to buy a home that is ten years old or less.

If your agent does not know all of the answers to your questions, they should be able to find out and will give you an answer within a day or two.

Taking Pictures

One of the best ways to remember the homes you have seen is to bring your camera and take pictures. Get permission from the agent first before taking pictures of another person’s home.

Many times, after looking at a few houses, you will forget how big the kitchen in home number two was in comparison to home number five. Having pictures will give you a better idea of the square footage and how much room you will have to work with.

Narrowing Down Your Choices

After a few weeks of viewing homes that fit what you are looking for, you should be close to finding a home that you will want to make a bid on. If you have other homes you would like to see or you have changed your mind as to what you are looking for, you should tell your agent so that they can look for other homes.

Many times, if a person likes the neighborhood but not the home they were shown, they will want to see other homes in the neighborhood that are for sale. You should ask to see all of the homes available in a neighborhood that you like.

If you are still not finding a home that you like, you may need to change the neighborhoods you are looking at. While this can seem disappointing, your real estate agent will be happy to show you homes in different neighborhoods. Sometimes if you compare homes to one another, you will find redeeming qualities in a home you have already seen.

Once you have found a home that you like, you should make an offer. Contact your agent as soon as you can so that they can draw up the paperwork, contact the buyer’s agent, and make an offer before another person does. Make an offer as soon as you can in order to avoid a bidding war.

Bidding can be long and drawn out in some cases. If you do not have the time to wait out a bid or if you cannot bid any higher, then you may be looking for another home to purchase. While this can set you back, you should try to stay positive and find a home that is right for you.

Your agent should be there to guide you along during this time. Ask all the questions you have to before making an offer on a home.

Information Realtors Should Tell You

There is plenty of information that realtors can tell you about the homes you will be viewing. Things they should tell you include:

• The price of the home
• The age of the home
• Any renovations that have been done
• Any other Issues with the home
• Property taxes
• Community dues
• Schools
• Neighborhood crime rates, and
• The median age of those who live in the neighborhood

Usually, if a realtor does not have the information you request on hand, they will be able to look it up once they are back at their office.

You should be able to find out all the information you need to know in order to make an informed decision about buying a home. Realtors are required by law to give you information concerning repairs, damage, and the history of a home.

This includes any incidents that have occurred inside the home such as criminal activity, fire, and other events.

You can also do a little research of your own by using the Internet, which has become a wonderful tool to use when searching for a home. You can research past events that have taken place in the neighborhood, the home itself, or the town where you want to live. Knowing a little history may prompt you to look elsewhere or make an offer.

Other information realtors can tell you include:

• Home owner price reduction (your realtor will talk with the seller’s realtor once you have made an offer or want to make an offer to see how low the owners will go to sell the home)
• Prices of other homes in the area that are comparable to the one you are looking into buying
• How quickly the owner wants or needs to sell their home
• How much you will have to pay in property taxes each year, on average
• Other taxes in the area

Your realtor is a person that should be well acquainted with the neighborhoods you are looking at when buying your first home. Don’t be afraid to ask many questions.

Working With Seller’s And Buyer’s Agents

As a home buyer, your real estate agent is considered the buyer’s agent. While some people will forego hiring an agent at first when looking for a home in order to save money on commission costs, they will usually end up hiring an agent to:

• Handle negotiations with sellers
• Do paperwork, and
• Survey neighborhoods

It is in your best interest to hire an agent in order to make buying a home a much easier, and faster process.

Negotiations With Sellers

Most people who sell their homes are also working with an agent. This agent is known as a seller’s agent. If you choose not to hire an agent, you will be dealing with a seller’s agent who is looking out for the home owner’s interests, and not yours.

Sometimes, though, the seller’s agent and the buyer’s agent can be the same agent. This means that your agent is looking after the interests of everyone involved. This is a rare occurrence, and it is best to hire a real estate agent that can negotiate with other agents in order to get you the best deal on a home.

Negotiating with agents can take a week or more depending on how high you are willing to go and how low the owners are willing to go. This can become a complicated game once you introduce home inspectors.

After an initial home inspection, if you feel there are repairs that should be made prior to the sale of the home, or if you want a price reduction because of the repairs you will have to make, you will have to negotiate with the owners to settle on a fair price. Without an agent, you will have to do all of this work yourself.

Paperwork

When buying a home, there is a lot of paperwork that must be completed before the closing. This paperwork can include:

• Offers
• Counteroffers
• Home inspection reports
• Home appraisal reports, and
• Fixture lists (Items that come with the home and items you would like removed)

Filing the paperwork is not difficult, but it can take some time. Working with an agent will save you time and money when creating and sending out various paperwork.

Survey Neighborhoods

Another advantage to hiring an agent is that you will not have to do as much legwork in the beginning. You may have a few neighborhoods in mind, but you will be able to leave it to your agent to find homes for sale and setting up appointments to see them.

This is another time saver especially if you have to work during the week. Taking time from your busy day to call other agents and homeowners to set up appointments will distract you from your other daily duties.

More Reasons To Hire A Real Estate Agent

There are several other reasons to hire a real estate agent.  These include:

Peace Of Mind

The bottom line is that as a buyer, a buyer’s agent is the best resource when it comes to finding and making an offer on a home. While a seller’s agent will be able to tell you the basics about a home, they are working for the homeowner.

They will not try to get you the lowest price for the home.

If you enjoy negotiating, then working with seller’s agents might be for you. But if you are like most people, hiring an agent to work on your side will make the entire process more enjoyable and worthwhile in the end.

Wealth Of Knowledge

Your agent will be very knowledgeable about negotiating the right price for your new home, they will be able to help you decide where you want to live, and they will be able to guide you in buying or walking away from any property you are not sure about. This is why it is so important to talk with your agent and ask as many questions as you can before buying a home.

Confidence

If you are having doubts about purchasing the home you have made an offer on, then you should tell your agent right away so that they can postpone the offer made and help you reexamine what it is you are looking for in a home. Many times the initial shock of being a homeowner can be overwhelming.

Sometimes talking with your agent is enough to resolve your feelings. Other times, you may need to see a few more homes before making a decision. Your agent will be able to give you practical advice during this time.

Next:   Chapter 3: Watching the Market

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