chino hills home seller

Your “Saavy Negotiating” May Cost You Your Dream Home

Most buyers have an idea of what their dream home might look like and the price range that they would be comfortable in more or less. This is a wonderful start to the home buying process. With a pre-approval letter in hand, you set out to find your Realtor to find just the right home. Once you find the home that you wish to put an offer in on, it becomes imperative that you remember that if you have hired a competent Realtor that you trust, then listen to their advice. Unless you are a full time investor, it is most likely that your Realtor has negotiated far more contracts on homes than you have.

Realizing that as a buyer you have certain ideas on what price and terms you would like to ask for, it is in your best interest to heed the advice of your Realtor when it boils down to the “nitty-gritty” of the negotiations. If you find yourself in the midst of Counter Offers where your offer was not accepted at face value and they have proposed a different set of terms, conditions, etc. remember that you must decide what your must haves are versus the non-consequential issues. Sometimes buyers get caught up in “the gotta win” syndrome and lose sight of the bigger picture. When this happens, the buyers “saavy negotiating” may cost you your dream home. Why? Because believe it or not, buyers and sellers alike often lose their objectivity and begin negotiating off of emotion instead of sound, prudent facts.

For example, I recently dealt with buyers who after a year of searching for their perfect dream home locate a home in pristine condition that was well within their price range. After days worth of mulling over whether to submit an offer and then numerous days of offers and counter offers the seller agreed to almost everything that the buyer wanted. There was still some negotiation on the purchase price. In the end the buyer actually wanted to negotiate a lower price on the house over a difference of a $20.00 a month payment. No matter how much counsel this buyer received from the lender or myself, they became stuck like glue to this $20.00 a month. Seriously! Well you can guess what happened to that dream house, can’t you?

This “saavy negotiator” shot his own self in the foot. Do yourself a favor, hire a competent Realtor and then LISTEN! Don’t get in your own way of success.

Disclaimer- All information contained herein is deemed reliable but not guaranteed. You are advised to consult a reputable attorney for all legal advice or a reputable tax advisor.

Don’t Shoot The Messenger, Just Accept Reality

By kasihomes Leave a Comment

Mr. Home Seller, let’s have a heart to heart. It’s interesting because just two days ago, I wrote a blog entitled, Home Over Pricing Will Cost You Greatly! As I was out today canvassing a neighborhood regarding a new listing, a gentleman stopped me. He asked me if I had placed the postcard he was holding on his door. I told him yes. He then asked me what homes around the area were selling for. At this point I told him it depends on the home and offered to do a full market analysis on is home for free. He stated that he did not want it. He then said but what are they worth? I asked him the square footage approximately of his home and then after explaining that a value is based on many variables, I gave him the ball park range.

At this point, much to my surprise, he yelled at me, “Get Out of Here!” You don’t know my neighborhood! You come mad manover here trying to tell me that price, you just get out of here! Now, I was totally astonished.

While I understand that we are all a little dismayed by current property values (or lack thereof), my response to him was, “I do not make the market, I just have to tell you what it is.” Here lies the problem with the housing market (well, okay one of the problems). The pervasive denial on what a home is really valued at. For goodness sake, I do realize that when a personal home is purchased it harbors with it a multitude of emotions. Memories are also created and home owners are reluctant to let go. That’s fine, that’s the emotional side of homeownership. Trust me, I am a sap for it too.

Now bear with me as we delve into the practical business side. You know, the side that’s all about dollars, cents, and assets. This is the critical point where we place those pretty little emotions in a box, put a lid on it and look at hardcore numbers. Trust me, when I tell a homeowner that they are sitting on a depreciating asset, I don’t get a kick out of it. My role is to educate a homeowner on the true value of their asset. I realize that this does not always make people happy. My role is not to make you happy, it is to tell you the truth and truthfully advise you on your options based on your stated goals.

So the next time the emotional value of your home does not coincide with the true market value of your home, don’t shoot the messenger. Be glad that they were honest enough to educate you on the true market value so that you can make the decisions that would be in your best interest. Whether the best decision if for you to attempt a loan modification, short sale or even have to let it lapse into foreclosure, you can not take control of your own destiny if you refuse to look truth square in the eye. Don’t Shoot The Messenger, Just Accept Reality And Make Some Wise Decisons.

Disclaimer-All information contained herein is deemed reliable but not guaranteed. You are advised to consult a reputable attorney for all legal advice or a reputable tax advisor.

Home Over Pricing Will Cost You Greatly!

By kasihomes Leave a Comment

Home Over Pricing Will Cost You Greatly! It’s a simple phenomenon that home sellers often fall prey to. It’s the pricing phenomenon. Oddly enough, our prized possession are always worth more than everyone else’s. The same holds true for many home sellers. An objective opinion is quite often garnered upon meeting with a reputable Real Estate Agent. However, this objective opinion sometimes falls upon deaf ears. Even if a home seller is not inclined to heed the advice a their local real estate expert, ignoring the voice of the public will end up costing a home seller. The voice of the public belongs to the home buyers. The home buyers have a definite idea on what any home is worth and their voice is heard each time a home is sold.

When a home seller elects to over price their home, unbeknownst to them or even most buyers a little thing called the “Principle of Substitution” rears its ugly head. We actually utilize this principle all the time and just don’t realize it. We call it comparison shopping. We do it with everything from the shoes to tires to houses. The Principle of Substitution basically states that a buyer will not pay more for a particular property if it costs less to buy a similar property of equal utility and desirability.

Guess this is what we call comparing apples to apples. So when a home owner gets ready to sell their home, a careful analysis must be made to garner a price that will be viewed in comparison with properties of equal utility and desirability. Because in reality we know that no two homes are exactly the same, your Real Estate agent must conduct an analysis and comparison between homes. Differences are then calculated. So differences between amenities, features, lot sizes, etc. are all taken into account. Such an analysis is crucial to ensuring that a home seller does not over price their home. There are many factors that go into pricing a home. The reality is that in the end, every home is only worth what the buying public is willing to pay. Make sure to price your home at a price that is truly commensurate with the buying public. Don’t let home over pricing cost you greatly!

Disclaimer-All information contained herein is deemed reliable but not guaranteed. You are advised to consult a reputable attorney for all legal advice or a reputable tax advisor.

Inland Empire Home Sellers: Here’s Why You’ll Want A Lockbox On Your Home

By kasihomes Leave a Comment

Listing your home for sale can be both an exciting and daunting task. Often during the course of listing a home for sale, the home seller will ask, “Why Would I Want A Lockbox on My Home?”

The short answer is, it’s the same reason that food establishments developed “the drive-through” and banks developed “the ATM”—Convenience and More Potential Customers!

The lockbox is convenient because it does a few things. First, it allows potential buyers to schedule appointments with their agents with relative ease. The agent can use their secure lockbox access key to access the home and lock it back up. Second, it allows for the home seller to continue in their regular routine without needing to wait around to accomodate appointments.

Next, the lockbox opens up he potential to gain more potential “customers.” There are a greater number of people who are likely to view a home when it has a lockbox because: 1) the ease of access means that even if they discover the home at the last minute, if they do not have to schedule an appointment to see it they are more likely to take a look at it, 2) both sellers and buyers are able to stop in and see the home at a time that is conducive to their schedule, 3) most buyers are more comfortable viewing a home without the presence of the home seller. The more comfortable a buyer is as they view a home, the more likely they are to be able to picture themselves in that particular home.

Beyond convenience and the potential of attracting more people to view the home, there are added benefits to having a lockbox. Some of the benefits include: 1) the electronic lockbox can be set with a timed access feature. This timed access feature can be utilized so that buyers and agents can only access the home between certain hours. 2) each time an agent accesses the lockbox, their information is stored and the listing agent can keep track of everyone who has entered the home. This way, there is a running record of every agent who has brought someone into the home.

There are many things that can be done to make sure a home gets the maximum exposure on the market. The lockbox is one of the tools that an agent utilizes to give a home sellers home the most advantage in the market place. If you want to gain the most exposure to the real estate marketplace then a lockbox will help with this. You must remember that people won’t buy what they can not see.

Disclaimer-All information contained herein is deemed reliable but not guaranteed. You are advised to consult a reputable attorney for all legal advice or a reputable tax advisor.

Mr. and Mrs. Seller Make Sure Your Agent Puts Inviting Information in The Multiple Listing Service

By kasihomes Leave a Comment

Mr. and Mrs. Seller may I be honest with you? Your home is not being shown because the instructions in the Multiple Listing Service (MLS) stink! Remember, you said I could be honest. Yes, I am pulling real live examples that I have encountered and continue to encounter.

1. Please do not call for status, MLS updated daily. This would be fine, if the agent did in fact update the listing daily. This is one of the homes that I personally sold. It showed as active during the first 60 days that our offer was accepted and even now three days after a closed sale, it shows pending. Updated daily? Uh, I think not.

2. Agents call for appointment. Send offers subject to interior inspection. Hmm, so let me see if I get this…we need to call for an appointment but in case we can’t get an appointment we should make an offer and make it subject to interior inspection? You are killin’ me here!

3. Call 951-xxx-xxxx for appointments from Tuesday to Fridays 2:00 TO 6:00 PM. This is a wee- bit ambiguous. Should we call the agent only during these days and hours or is the is the time that appointments are arranged? I’m hoping neither. If this agent only accepts phone calls for appointments in this time slot that’s probably an issue. If the home is only available for viewing during the week, four days a week, for four hours smack dab in the middle of most people’s work hours…probably presents an issue with getting people to look at it.

4. Showing time Saturdays and Sundays from 2:00 pm to 4:00 pm. Monday to Friday from 5:00 to 6:00. Call before showing 24 hours in advance. Here we go again. The tighter the time frames for showing and more restrictive, the less showings you will have. If you know that you are only allowing people to view the home for two hours a day on the weekends and one hour a day during the week, is it really necessary to also have to call 24 hours in advance? Just make it available! Otherwise, loosen up the time frames.

5. Drive By Only. This kind of showing is particularly hard when the buyer will be occupying the home and the only picture displayed on the MLS is of the exterior. At least take a few pictures of the inside to post on the MLS so buyers can get some sense of the inside before being expected to write an offer that is subject to interior inspection.

So what is the MLS saying about your home? Does it have instructions that translate into “Do Not Enter”? Or is there a set of welcoming instructions? The best way to get your home sold fast and for the highest dollar is to put yourself in the buyers shoes. Think about what kinds of things make it easier for a buyer to view your home quickly. The homes that get shown are the homes that get sold. Let the buyer experience your home through all of their senses. Make it appealing in the internet with lots of pictures, a great video tour, easy showing instructions along with a great, clean scent when they view it. Do these things and you will be on your way to a sold home. Additionally, make sure you know what your home looks like in the MLS. Your sale could depend on it!