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Frequently Asked Questions Of Home Sellers
Q: How do I select a real estate agent to list my home?
A: Find a Realtor you feel genuinely comfortable with. If an agent gives you gadgets and flashy promises, move on. If an agent promises to sell your home for a un-seemingly high price with little or no supporting sales data, continue looking. Ask the agent about their track record, and what type of marketing plan they have in mind for you. Ask how long they’ve practiced real estate in the Denver area. If they hype themselves too much, next. Keep looking until you find someone who seems solid and makes you feel as if you've gotten the plain truth. A proven professional doesn’t need to do a song and dance to win your business. You need a professional who can really listen to you and keep your confidences. Someone who has repeat customers, and who's customers will vouch for what the agent is all about.
Mike, Amanda, and the Home Team would be happy to demonstrate that they are the right choice for you. They know what they’re doing. All you have to do is to ask those who have gone before you! There’s a reason this real estate team does business "by referral." A reason why they have repeat customers time and time again.
Q: How do I know if my home is being priced correctly?
A: A Typical Scenario: You’ve
decided to sell your home and have a fairly good idea of what you think it is
worth. A few of the Realtors you've talked to have recommended prices that
are lower than you expected. Although they've back up their recommendations with
recent sales data of similar homes, you remain convinced your house is worth
more. Amazingly, you talk to another agent who's pricing is much more in
line with your own anticipated value, or maybe even higher. Suddenly, you're
happy and an excited home seller, already counting the money. This agent
you've become fond of seems willing to listen and work with you. This is
an agent that is willing to start out at your price and if you need to drop the
price later, you can do that easily...right? After all, isn't this
how
everyone else does it?
The simple truth is that you may have just met an agent engaging in a questionable
sales practice by suggesting you might be able to get a higher sales price than
what the first few agents recommended (and supported). Most likely, this 'dream
agent' is quite doubtful that your home will actually sell at the price he
suggested... knowing all along that you'll eventually have to
lower the price to the true market value (value = that which a
reasonable buyer would pay given like sold properties).
At times, a well-meaning and hard working agent can feel pressure from a homeowner who has an inflated perception of his home’s value. Some agent's engage in this listing-sales practice routinely.
It's very important to know that by overpricing your home, few agents will actually preview your home. A Realtors' job is to know local market conditions, and values. If your house is dramatically above market, most Realtors won't generally waste their time, which is better spent previewing homes that are priced more realistically. After several months, when you drop your price, your house then becomes "old news." You're not likely to recapture the flurry of initial activity you would have gotten with a more realistic price. Your house naturally takes longer to sell. Potential buyers may then think that you might be getting desperate, so they will contemplate much lower offers.
By overpricing your home in the beginning, you could actually end up settling for a lower price than you would have normally gotten. Whichever the case, if you start out with too high a price on your home, you may have just added to your stress level. Selling a home is stressful enough.
Lastly,
even if you do successfully sign a sales contract at an above-market price,
your buyer will most likely need financing. The mortgage lender requires an
appraisal. If comparable sales and current market conditions over recent
months do not support your sales price, the house won’t appraise. Your deal may
then fall apart. Of course, you can always attempt to renegotiate the
price, but only if the buyer is willing to deal. Your house will remain unsold,
or merely go "back on the market." Once your home sale has fallen out or
sits on the market too long, it is harder to get serious interest and a good
offer.
Q: Is it really that important to update my property before putting the home on the market? Why not just let the buyer make changes to suit their own tastes?
A: This is a common misconception. Most buyers are looking at a number of factors when purchasing a home. They compare location, condition of the property, features such as fencing, sprinkler systems, etc.; how dated the home is; and the price. Assuming the home has been well maintained, exterior paint, roof, gutters, are in good condition, buyers also look at what work is required to bring the home up to modern condition. This includes carpets that are not neutral, or worn. If the carpet is over ten years of age it may be beyond its practical life. Same applies to other floor coverings. What about wallpaper? If your home’s walls have floral wallpaper or non-neutral colors they may need to be updated. Do window coverings or light fixtures date your home? Buyer’s generally do not pay top dollar for the opportunity to fix-up or update a property. One of the questions often asked at our home buying seminars is "how many people are looking for a property that needs updating"? Usually only one or two people raise their hands. When asked what they would be willing to pay, the answer is usually 10% to 20% below market value.
If you want top dollar for your property, you’ll have to bring the property up to top condition and that includes updating, as necessary. As a part of our staging service, we can help you determine what repairs and updates are required to make your home more marketable.
Q: A real estate agent told me that the average time to sell a home is only 60 days. If my home has been on the market over 60 days, should I start to worry?
A: The average time on market varies depending on what city you live in, price range, style of home, location, condition, and so on. The statistical averages used by agents include only the homes that sold, and not the homes that failed to sell (oftentimes called Expired or Withdrawn Listings). For example, if you were to list with 'agent A' and failed to sell after six months and then you re-listed with 'agent B' and sold in two weeks, the sale would be recorded as two weeks, not the total time on the market. Our team can give you guidance on the amount of time that is considered average for your specific property.
Q: I keep hearing location, location, location. How does it affect the sale price?
A: Location is a very important factor whether you own a principal residence or an investment property. Buyers will typically pay less to live near a busy street, next to a business, apartment complex or where the view is of a distraction (mobile home park, for example).
If two homes were exactly the same and home one was located on a cul-de-sac backing to a park and home two was siding a busy street and backed to a shopping center, which home would you want? Which home would you pay more for? Obviously, home #1 would be more desirable for the mass market than would home #2. The difference in price could be 5% to 20%.
Many times, buyers that have received a good deal on the purchase price when they bought because of adverse conditions generally want to sell at the top market price of comparable homes which do not have such adverse conditions. We can assist you in determining if you are priced right for the current market.
Q: How do recent tax laws affect selling of a principal residence? A: Under the old tax rules, if you sold your principal residence prior to May 7, 1997, most people were only allowed the exclusion of $125,000 of capital gains once per lifetime.Changes in the tax code allows homeowners to avoid paying tax on their primary residences for homes sold after May 7, 1997. For a single person, you can have a. gain of up to $250,000 on the sale of your principal residence without any tax liability. A couple can have a gain of $500,000. One of the benefits of the new tax law is that you can buy and sell your principal residence every two years and not pay any taxes as long as your gain is under these limits. Please consult with your tax advisor for the specifics relating to your tax situation.
Of course, we always advise you to consult with your accountant concerning your specific situation.
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