Choose the Right Crowd to Follow
by Carol Tucker
If you must, follow the crowd. But, choose wisely the crowd to follow. If you have acquired enough knowledge and gained wisdom, you are free to walk safely alone. But you are also then wise enough to know that, at times, you may need a well chosen ally (or 2) for counsel and safety.
How times have changed! The pendulum has swung in a much needed, but generally unwelcome, direction. Unlike the previous market, homeowners in distress are now the norm; the members of this group increase daily both here and abroad. We are all now painfully aware of the significance of the many unheeded warnings about the excessively leveraged real estate market. Still, there are opportunities. A very positive note is that investors have returned to the marketplace, having left it as valuations increased in their loftiness. This return of investors to the marketplace is healthy and will help to alleviate the ‘drag’ on the market brought on by the presence of large numbers of foreclosed homes. This will take several years, however. While the loss of the homes is regrettable, this is a necessary partial remedy.
The internet is full of useful and helpful information on the sale and purchase of real estate. Searching several sources and judging the information given in light of individual needs and philosophy will go a long way toward educating those who would like to delve into the glamours of real estate.
Generally given, one considering a purchase should, first and foremost, determine the individual affordability range (historically, payments should not exceed 1/3 of your annual income). A visit with a good loan officer (before you begin the search for a property) will set you off on the right track. Once you know your affordability range, be sure to fit your needs and desires within that range; not vice versa. The most important goal of your Realtor should be to help you, the home seeker, find and purchase the property that most closely matches your needs, desires, and your ability to support. Remember to always have something set aside for ‘rainy days.’
Selling a home incorporates different considerations. Foremost here, pricing is critical. You would not knowingly pay more for a property than its current market value; neither would any potential buyer do so for your property. They may love your expensive upgrades; but to an appraiser’s eye, your beloved upgrades may be merely ‘icing on the cake,’ but of no significant market value. Something that should also be considered is the condition of the property. Inspections, prior to marketing, should be performed in order to avoid re-negotiation of the sales price after the buyer discovers a problem or fault. Any reputable Realtor (one licensed by the Board of Realtors) is able to help you price your home comparatively and competitively (relative to the current competition in market). Here the most important goal is to not sell your house at all costs, but to market your home broadly, efficiently, and in the most attractive and informational way possible. Equally important, the would-be purchaser should receive accurate and honest disclosure of all known problems and issues, as well as, all positive attributes. Providing this information is an advantage to the buyer and to the seller. It prevents the failure of a sale because the buyer finds out after the property has been removed from the market several days to week, that there is a defect that cannot be tolerated. A Seller should also realize that it may not be in their best interest to just take the first offer submitted. It may be to the seller’s advantage to begin to review offers after, say, the first 5 days on the market. This gives the marketing a chance to reach the wider audience. It may prevent your representative from ‘double ending’ the sale, but it may give you, the seller, an advantage by allowing competition to develop.
Sales and marketing are 2 very closely related terms. Marketing, however, is far more important in this internet age. These days, most home buyers find their prospects by searching the internet or real estate magazines. This is also a great way for a seller to begin the search for a qualified Realtor—by evaluating the potential representative’s marketing of properties currently listed for sale.
A large part of sales is negotiation—negotiating the price and terms of a particular sale/purchase. My negotiating style is win-win. I have discovered that this carries positive results in future sales or purchases and in life in general. When both Buyers and Sellers are treated fairly and equitably in one transaction, the new owners adopt this same win-win attitude when they decide to sell. It is a mutually beneficial and self-perpetuating philosophy and way of doing business.