Question of the Week
Aug/100
Q. My home is currently on the market with a reputable real estate firm. I expressly told my agent NOT to bring an offer under a certain amount. She brought me an offer $50,000 below my asking price! My husband and I were furious! We told her that under NO circumstances were we going to accept that offer. Our agent tried to get us to come back with another price; but, we were very insulted by the offer. Were we wrong? I feel she has breached her duty to us.
A. Please do not shoot the messenger!! By law, a Realtor® is obligated to bring you ANY and ALL offers no matter what the price. Be realistic in your expectations of the price you will be able to sell your home. Forget about what could have been if you had sold it two years ago. Focus on what your home is worth now. Unfortunately, there are buyers out there that are on a fishing expedition-it does not mean that you will fall for their offer, hook, line and sinker. You have the ability to negotiate. You should have relayed to your Realtor® a reasonable counteroffer. Leaving the door open for negotiations is a smart move. Listen to your Realtor®! She has been versed in how to handle many situations. Nothing beats the experience that comes from a real estate agent who is able to take care of everything in order to sell your home. Selling your home can be a stressful time, but you can be successful in selling your home if you remain patient, reasonable and flexible.
Please e-mail questions to Kim at Kim@FrankeTeam.com. Kim is a member of the Marion Franke Team and a Top Producing REALTOR® in Montgomery County. Kim is a Buyers and an Accredited Luxury Home Specialist.
Article- Q&A written by team member Dixie Estep.
One of the worst home selling mistakes is pricing your home too high!
Aug/100
The truth is it really doesn’t matter how much money you think your home is worth, nor how much you need, or what your neighbor says, or what your parents say…etc. Truly the only person whose opinion matters is the buyer who makes an offer. Pricing homes is part art and part science. In an attempt to come up with a range value, your agent takes the following into consideration: comparing similar properties, making adjustments for the differences among them, tracking market trends and taking stock of present inventory. Listing agents use all of the facts to formulate an educated estimation. Unfortunately, uninformed sellers often choose the listing agent who suggests the highest list price, which is the worst mistake a seller can make.
The method an educated, experienced listing agent uses is the same way an appraiser evaluates a home. Let me tell you-no two appraisals are ever exactly the same; however, they are generally close to each other. In other words, there is no hard and fast price tag to place on your home. The market will dictate the price. And, the market is ever-changing as we have experienced in the past two years.
Actually, homes sell at a price a buyer is willing to pay and a seller is willing to accept. Bear in mind, it must appraise for sales price if the buyer is creating a loan to purchase.
There is danger in pricing too high. Example: Seller wants to list home at $500,000-Listing agent says: List price should be $425,000. Six months later the home has not sold. So, Seller relists and reduces list price to $475,000. Seller receives an offer for $450,000; but, rejects it because he wants $475,000. Three months go by; another offer comes in at $425,000. By this time the Seller truly wants to sell, so he accepts the offer, which is the original price the Listing agent suggested.
Seller’s payments were $2,500 per month. Multiply this by 9 months (length of time home is on market) it equals $22,500. If Seller had taken the first offer he would have been ahead plus would not have had to make those payments. Sometime, Sellers must do the math. By the way, typically the first offer is the best offer. Don’t know why, but it has been proven the norm time and time again.
Contact the Franke Team for commercial or residential real estate. Kim Bowling, Realtor Website and blog: www.MyLakeConroe.com; phone: (936)-203-3351.