Let the Buyer — Be Aware!  Really!

As Sandy, Yvonne and I watched a seller’s market turn into a buyer’s market, I find myself thinking of the large inventory of homes for sale and the large number of people who have been thinking about making a move or an investment.  But do they understand the importance of taking action now, before the market changes again — as we know it will?

Over the past few months we’ve helped young couples purchase their first home; one young growing family buy a larger home in their preferred school district; a husband and wife purchase two rental / “flip” properties; and a student buy the townhouse he’d been wanting since college.  Some or all of these purchases might not have been possible for my clients a year ago, but now the timing is right — for buyers who are aware of the opportunities.

Who’s the next person you know who’s thinking of purchasing their first home, a move-up home or an investment property?  Please give me a call or email to discuss how we can let them know about my services. Before it is too late…?

How Much Should I Offer?

I am often asked by my clients, “How much under the listing price should we offer?”  This is an excellent question. The answer is difficult.

The main reason I emphasize the education phase of looking at homes is because that is the best way for you to know market value. When you review and study 40-60 (or more!) listings, then drive by 10-20 and look at 5-10, you will recognize the “Hot Listings.” You’ll also recognize the “dogs.”

Sellers price their homes differently for 4 basic reasons:

1. Ridiculously Overpriced!

These sellers have listened to a real estate agent who over-inflates the value of the home in an effort to obtain a listing. There is a natural tendency on the part of sellers to list with the real estate agent who gives them the highest promise. There is a tendency by some real estate agents to give the seller a high “value” in an effort to obtain the listing.

These homes can be 10-20% overpriced. These sellers may need a “dose of reality” for a few months before they begin to realize that their home is way overpriced as compared to others in the area. The traditional agent’s  thinking: “The longer an overpriced home is for sale, the more likely I can get the seller to face reality and sell at a fair price.”

2. A Little Overpriced!

These sellers fall into 2 categories:

• Those that feel their home is worth every penny of their asking price.
• Those that want to leave a little “negotiating” room.

These homes can be 4-10% overpriced. Perhaps 75% of all homes for sale are priced in this range.

3. Priced At Fair Market Value

These sellers have carefully and realistically studied other homes for sale. They have priced their homes very competitively. These homes usually sell within 4 weeks at or very near the listed price.

4. Priced Below Fair Market Value

These homes are priced below value. Perhaps the seller wants a fast sale. Perhaps the real estate agent recommended too low of a price. These homes usually sell within 7-10 days, at or above the listed price. There are usually competing offers.

  Bank Protection

Even by carefully studying homes for sale, it’s difficult to establish Fair Market Value. If you’re obtaining a new home loan, you’ll be protected by a Professional Bank Appraisal. Home lenders want to make sure that you don’t over-pay for a home. If the home does not meet value in the eyes of the bank appraiser, you’ll be informed. At that time, we can re-negotiate the sale price or void the agreement and refund your earnest money deposit.

My job is to ensure that you have the tools and information you need to make informed decisions. Whether you are a buyer or a seller.  We will help you prepare your offer Your counter offer.  Questions? john@niceguysworkhard.com

… Spring in KC!

I know , I know. I have been just like you and wondering when the corner will be turned and we will be finally finished  with this snow, the cold and all that winter whooops up on us.

I have a solution. This year, Sandy tells me we are finishing the basement.  I finally have the financial wherewithal  to have a nice office, bathroom, guest bedroom (for the grandkids to enjoy when they come stay this summer) and a dance floor for Sandy and I to practice our latin steps – “Dancing with Stars” has really got to us.

This all means CLEAR OUT THE JUNK!  I mean,  the treasures and temptations we can put into a garage sale. That is the purpose of this message: Garage Sales are in our future!  I want to encourage you to make use of our service NOW!  Start thinking about your sale, your stuff, your trash and treasures, to hawk, flaunt, sell, and promote or finally, give away in your garage sale planner. Talk to your friends, your neighbors, your parents. Get a few of you together, go to our garage sale registration  page fill in a few blanks and promote your sale, then watch the money roll in…

Once you start thinking about clearing out your stuff, spring cleaning more space in your home, etc, making money on a warm and sunny successful sale day, don’t you feel better?  Yea, me too!