How to Negotiate the Highest Price in a Seller’s Market

You’re selling your house and the timing is perfect…It’s a seller’s market! You’ve listed your home and have several interested buyers. You’re certain you can get your full price offer, but can you leverage what you have into an accepted offer that is… above the list? Perhaps three percent, even five percent or more above the list? You sure can! Here’s how you go about it:

1) Be easy to work with and very helpful. Buyers tend to be willing to negotiate with sellers whom they like and are eager to help. Your agent should answer all questions quickly and thoroughly.

2) Be proactive and communicate openly with all buyer agents who have scheduled showings to date. Your agent should be encouraging as many people as they can to write an offer on your home. Your agent will let every showing agent know that your property is gaining tremendous interest and that if an agent has shown yet to do it quickly so their clients don’t miss out on the opportunity to write up their offer. Your agent will also call and email each showing agent to ensure they get the message.

3) Suggest a selling price that is way too high. This means your agent will use the power of suggestion to drive up the bidding price on your home by sharing with buyer agents how they’re surprised by the overwhelming interest in your property and that they wouldn’t be surprised if it goes for higher than list price.

4) Justify a price that is way too high. When your agent is conversing with the buying agents, he’ll share good reasons why they should write a strong offer.

5) Provide a status update to all parties once the first offer comes in. Your agent will once again call and email each showing agent to inform them how much time they have to make an offer and then encourage as many offers as possible because, with each additional offer you receive, your power to negotiate price goes up.

6) Negotiate and accept a secondary offer. Do this once your primary offer is accepted. This is a great tactic for your agent to use in case your first offer falls through. If buyer number one is informed of your solid plan B in the works, they’re more likely to do what it takes to get things finalized. A good example would be that they’ll probably not quibble about anything that shows up on the inspection, for instance.

Of course, this can all only be done with effective marketing and proper pricing in the first place. Good marketing and a proper price will draw the buyers in. Then it’s up to your agent to advocate your best interests and communicate effectively to potentially sell your home for well above list price. Ready to get listed and sold? Call me today!

What’s Your Home’s Value? Find Out Now

Does a Home with a View Cost More?

How much does a view really cost? Can a home be priced higher if it has a view? What about water or lake front? What external things make for a higher priced home?

Well, it all depends on the buyer and the house. One house in Sunnyvale California just sold for nearly $800,000 OVER asking price! That’s right, it was listed at $1,688,000 and in a week had over 20 offers and sold for $2,470,000! Of course, it was a couple blocks from Apple’s new headquarters but still. That’s a huge offer!

So what makes a home fetch a higher price? Will the view make the difference? It will if the buyer loves the view. But I remember selling a house not too long ago in a neighborhood where many homes had great views and it was priced far below many other homes in the neighborhood and had been on the market over a month. The listing agent couldn’t figure out why the home hadn’t sold. My buyers walked in and fell in love with the stunning view and quickly made a full price offer.

To the past potential buyers, a view wasn’t that big of deal. The same goes with lot space. Many buyers are specifically looking for a home with zero lot lines so they don’t have to worry about landscaping and gardening. Others love the idea of a large lot with huge backyard, perfect for entertaining. What appeals to one, may be a turn off to another.

What about water-front? There are some stipulations for buying a waterfront home and some homeowners may not want to deal with the additional maintenance. Some may specifically seek out a lakefront or waterfront home.

Beauty AND functionality are truly in the eye and the wallet of the beholder.

Views also vary.

Does a home with a view mean the territorial view of the trees behind the house? Or does it mean a view of the ocean, lake, mountains, or something a good distance away? There are several types of real estate views that you might see and they fetch different increases in price.

Ground Level – Basic view from the ground level of the home where you can see a larger, non-residential space, such as a wooded area. This can increase a value of home .5%- 2.5%
Rooftop – or partially obstructed. Peek-a-Boo views, they are sometimes called, means you can see a distance from the top floor but the view is partially obstructed with roofs, trees, or other houses. 3% – 5% increase.
Mid-Level Unobstructed – This could include views from the side of a hill where you can see all around or to an open area. This could add up to 8% depending on the condition and location.
Unobstructed High Elevation – This could mean from a condo building or on top of a hill with an unobstructed view to see an entire city, lake or landscape. This varies in price depending on where you are too. Some people may love a view of the city where others want a view of the hills. The increase could be 9% – 12%.
Unobstructed Water View –This is the biggest attraction in general. This could be a large body of water such as an ocean, large lake, river, etc… The more view a person can see the better. It doesn’t really count if you can only see the view from a tiny window in the back bathroom. However, this view is really hard to determine and it’s where comparable properties must come into play. This can add 10% up to even 50% to the value of the home depending on how fabulous that view really is.

Comparable properties are really the best way to determine whether or not a view is worth anything in a particular area. Just like the Sunnyvale home; not anything fab about the home itself, it was the location and lack of inventory. If your home has the best view in the neighborhood, it makes sense to price it a little higher.

Using a qualified real estate professional that has accurate access to active listings, pendings, and sold properties in an area is really the best way to get an accurate price of a home.

If you’re unsure whether or not your view home is worth more, give me a call. Let’s do the research and get the very most from the sale of your Clermont, Winter Garden or Minneola area home.

Buyers Are Not Going to Make Offers on Overpriced Listings

Buyers Are Not Going to Make Offers on Overpriced Listings

If you are thinking about pricing your home for sale above market value, buyers are not going to make offers on overpriced listings. One thing for sure, real estate market is HOT!! It’s sizzling. Some areas are experiencing low inventory with high demand that’s causing home prices to go

up, especially in the affordable price range. What is an affordable price range you might ask? Well, that truly depends on where you are in the country, in Clermont FL area, the affordable price range is just middle of the road, between $200,000 and $250,000. That number will look a lot different if you are in NY or Los Angeles.

If you are in a hot seller’s market with high demand and low inventory with increasing home prices month after month, you might want to list your home for sale above the fair market value and hoping buyers will make offers on an overpriced listing.

BUT…Guess what? Buyers are not going to make offers on overpriced listings. Just like home sellers, buyers also study the market, most are working with knowledgeable REALTORS® who are guiding them through the transaction. Besides, their search criteria will most likely be within their pre-approved mortgage. If they are approved to purchase a home up to $250,000, they will not be looking at homes priced at $300,000 hoping sellers will come down. Just like home sellers, they know it’s a hot market and homes that are priced right will go under contract fast so they’re not even going to waste their time looking at homes outside of their price range.

If a buyer tells me they’re looking to buy a home in Clermont FL priced up to $250,000, my search will be slightly over their pre-approved price. If I send them homes that are priced well above their range, they will think I’m not listening or have no regards for their wishes. So your strategy of overpricing and waiting for buyers to make offers isn’t going to work.
Yes, as a REALTOR®, if my buyer client likes the overpriced home, I will encourage them to make an offer and will definitely speak with the listing agent prior to submitting it, however, it’s up to you, as the seller to either accept or make a counter-offer which will show the buyer how motivated you are to sell your house.

What if your REALTOR® suggests listing above market value? Why would they do that? Do they really know the market? Are they trying to win you over so you would list your home with them? Do you have the time to participate in this game?
As a REALTOR®, I don’t have the marketing dollars nor the time to play games. I list homes to sell. List and see what sticks doesn’t work for me, never did.

Everyone’s motivation is different, however, most home sellers list their homes to sell. To accomplish that goal, it’s best to do everything right from day one. That includes getting your home in show ready condition, working with the right REALTOR® for the right reasons and most importantly, pricing it right.
As a professional, I come across overpriced as well as underpriced homes for sale. Those that are overpriced will either expire or see a major price reduction after a long marketing time. The ones that are underpriced will hopefully generate multiple offers and sell over list price.

Do Buyers make offers on overpriced listings? That depends on the area and competition. Remember, real estate is very local so what happens in Los Angeles isn’t very common in Clermont FL. Instead of wondering, it’s best to price your house to sell.

If you are a Clermont FL homeowner thinking about selling your home, I would love the opportunity to speak with you. Call or text me at 407-929-1852 for a FREE market analysis. Clermont FL home prices have increased 11% compared to last year. Your home may worth more than you think.

My Neighbor’s House is Listed Below Market Value..Will That Affect the Value of My House?

My Neighbor’s House is Listed Below Market Value..Will That Affect the Value of My House?

In our crazy real estate market, we often see a wide range of list prices within the same neighborhood. Why is that?

There are many factors that go into pricing a home properly;

-Age, square footage, lot size, the number of bedrooms and baths, upgrades.
-The motivation of the seller. This is a big one. Some sellers know how much their home is worth and opt to price it lower than market value to sell quickly. They may also price it low to start a bidding war.

Once you decide to sell your home, rather than browsing on the internet or talking to your neighbors, call a local real estate professional and get a market analysis which would show you a fair market value of your home. You can also hire a licensed appraiser to get an appraisal which you would have to pay for.

Once you are ready to list your house for sale, focus on preparing your house to show well and be sure to price it just right to get it sold quickly and for the most profit within the market range. Don’t think too much about your neighbor’s house being listed below market value. Will that affect the value of your house? NO! What’s important is the sale price. I’ve seen homes sell $10,000, $20,000, $50,000 over list price. It happens!

So, how can you make sure your house for sale is priced right? When pricing your house, there are several things you must pay attention to and your real estate professional will guide you but here are some;

-Do not base your list price on how much you paid. If you purchased your home when the market was different than it is today and paid considerably higher, you should still stay within the market range when pricing your house. Buyers don’t care how much you paid for it, they’re looking at what it’s worth in today’s market.

-Study the market. Forget what uncle Joe who lives thousands of miles away sold his house for, you are in a different market. Real estate is local. One of the biggest mistakes home sellers make is to take advice from friends and family. They mean well but they’re not the professionals who sell homes on a daily basis.
Know what’s selling in your neighborhood. Your neighbor’s home that’s priced higher or lower than yours may be completely different than your house. Be sure to compare similar homes to yours. That additional thousand squares will make a huge difference.

-Don’t list your house to test the market. If you truly want to sell your house, you can’t afford to play games. Don’t list it $100,000 above market value and expect to receive offers. Today’s buyers are savvy and they know exactly what your home is worth because their real estate agents show them all the sold comps. Forget about receiving offers, you won’t even get anyone to preview your house. You want to attract buyers, not push them away by grossly overpricing your house.

-Don’t expect to cash in on all your updates. Is your house comparable to other homes in your neighborhood? When you decided to import your tiles from Italy and paid $50,000 and added that beach entry pool which cost over $100,000, were you thinking about return on your investment? If an average home is selling for $200,000 in your neighborhood, it will be very difficult for you to get $300,000 for your house unless you find a cash buyer who absolutely loves your house and doesn’t care about all the comps. Remember, everyone’s taste is different.

-Price reductions that won’t make a difference. Your house is on the market for a couple of weeks with no lookers and no offers and your agent suggests a price reduction. The best you can do is to reduce it by $100.00. That’s not going to cut it. If you were a buyer and saw a price reduction that minimal, will that move you? If anything, that shows potential buyers your price is pretty much set, no negotiation room.

-Leave your emotions out the door. Pack them away. Detach yourself from the house you are selling. Buying and selling a home is emotional. The home you’ve lived in for twenty years now has a “For Sale” sign in the yard. Packing and moving are not comfortable but remember, it was YOU who made the decision to sell so now, it’s time to do what it takes. That means doing everything you can to attract buyers. If you can’t see yourself detached from your house, perhaps it’s not the time for you to sell yet.

The question was “my neighbor’s house is listed below market, will that affect the value of my house?”. It’s good to know what the active list prices are in your neighborhood but that grossly overpriced home that just came on the market might be there for months to come. The house that’s underpriced might be a distressed sale. Don’t worry too much about the “priced too low” or “priced too high” homes but know all the SOLD comps in your area.

If you are a Clermont homeowner thinking about selling your house, it’s important to do everything right the first time around. See, with buyers, you won’t get a second chance. If your house is on the market too long, it will become stale resulting in price reduction or even becoming an expired listing. Call or text me today at 407-929-1852 to see how I can market your home to sell quickly for the most profit you can walk away with.

Whether you are thinking about buying or selling a home in Clermont, Minneola, Winter Garden, Groveland FL areas, I would be honored to represent you as your REALTOR®. Call or text me at 407-929-1852, email bethatalay@gmail.com

My Neighbor’s House is Listed Below Market Value..Will That Affect the Value of My House?

5 Attributes You Need in a Real Estate Agent

You planning to sell your house or buying a new house. Regardless, you probably need a real estate agent. Why? Well, you can try and sell your house yourself and risk losing out on a lot of money by not pricing it correctly or knowing how to facilitate the transaction with a potential buyer. Trust me, I’ve seen too many homeowners try to sell their home themselves only to get frustrated, angry, and downright exhausted.
If you’re planning on buying property without a real estate agent know that eventually, you will have to deal with a real estate agent because most homeowners will choose to list their property with an agent and therefore, as a buyer, you have to deal with the listing agent of the property you want to buy. That really isn’t having someone working for you.

Whether you are buying or selling, the benefits to using a real estate agent are innumerable. When looking for the right agent, you might be looking for something different based on whether you are buying or selling a property.

Here are five attributes you need in a real estate agent and will start with the buying agent first.

#1. An agent that works solely for you.

When you purchase a property you don’t want to go through the listing agent to purchase that home. The listing agent’s primary duty is to sell that property, not necessarily find you the best home for your needs and budget. That agent was contracted with the seller first, and therefore, must sell that property. If you don’t have your own representation, your needs, budget, and priorities may not be taken into consideration.

#2. They really listen to what you want.

You don’t want an agent that thinks they know what you want. You want an agent that truly listens to your needs, concerns, deal breakers, and reads between the lines as to the type of home you really want and need. You might say you are looking for a three bedroom, but you know that working from home is a passion to the agent might try to find you a four bedroom home or at least a three bedroom property with a bonus room for those future home office needs. A good real estate agent also will not show you homes outside of your price range. You can afford what you can afford and a good agent will do their best to find you the home you need in your price range.

For sellers:

#3. Find an agent that actually sells homes.

I know that might sound funny, but you’d be surprised at how many agents there are out there that list homes but never actually sell that. The listing either expires or the agent gets fired. This is because they are not pricing it correctly, to begin with, and/or they are not marketing it to potential buyers. A great agent will market to other buyers agents and buyers through print, online, social media, and in person. Ask how many homes the agent has really sold themselves as a listing agent and how motivated they are to get your home sold but still make sure you get a profit.

#4. Honesty.

Of course, whether you are buying or selling you want your real estate agent to be honest but a good listing real estate agent needs to be honest about pricing it correctly and what you need to do to get in shape for selling. A hungry real estate agent will do anything and say anything to get the listing. An honest real estate agent will tell you what it really takes to get the property sold.

For both buyers and sellers:

#5. Communication.

I can’t tell you how important communication is during this time. Your real estate agent needs to communicate any changes to purchase and sale contract, updates on where the listing is, any changes to the listing or to a contract, updates on advice and feedback from showings, and simply get a hold of you that works for your lifestyle.

Communication is a huge in every aspect of life but when it comes to buying or selling, it helps to be proactive in communication. You the real estate agent and then asked them you like to be communicated with him to get your needs met and your goals are attained.

If you are ready to buy or sell throughout the Orlando area including my specialty areas such as Clermont, Winter Garden, and Mineola, call me today.