Wednesday, May 25, 2016

Price is Right – Or is it? What ever buyer or seller should know

Image result for Price is right    I’ve done enough business now to know good from bad.  Maybe I should not use the word “bad” but that seems to best fit how some people do their jobs in real estate.  Of course this occurs in every career field.  Let me say this loud and clear – Make Sure You Hire a Good Realtor.  How do I know if he/she is a good Realtor?  Once you sign an “agency agreement” either to buy or sell your Realtor is your employee and do you want a bad employee in your business?  A bad employee costs you money and real estate is often times your biggest investment.  TiP: don’t fall prey to those agents/agencies that use gimmicks to get them to hire you. Ask yourself why do they need a gimmick to convince you?  TiP: make sure you read the fine print.  The majority of my headaches come from home inspectors, appraisers and agents that don’t understand the business or contracts.

As a listing agent (I also work with buyers) I represent my sellers and their best interest. When you sign a listing agreement with me I owe you fiduciary responsibilities (obedience, loyalty, disclosure, confidentiality, accounting and reasonable care). I purchase signs, I market your home in many, many ways, I negotiate for you, I help you understand the market and what comps are to be used, I consult with you on preparing their home for the market, I organize the closing and help you find an attorney, I create a net sheet so you have an idea how much you'll earn after closing, I am loyal to you and your best interests, etc.  There’s a lot to do and it takes a lot of time.  Most people have no idea what a good Realtor can and will do for them but it all starts with training and understanding contracts, knowledge of the local market, subdivisions, HOA, mortgages, etc. Any agent can list a home in the MLS and put a sign in your yard – what else are they willing to do? If you’d like a copy of my marketing strategy send me an email at Jason.Gregg@kw.com and you can see firsthand my 25 step marketing plan and it works. 

A buyer’s agent responsibility is to represent their buyers and get them the best deal.  But, I’m finding there are many buyer’s agents that do not understand our local buy/sell agreement (the contract).  TiP: Make sure your agent can clearly explain the contract to you because if they can’t then how can they negotiate in your best interest?  In the last 2 weeks I have had 2 buyer agents send me a repair report based on the home inspection.  TiP: if you want a perfect (no such thing so get as close as possible) home then buy new construction.  It is not the sellers job to repair every nook and cranny of a 15-year-old home and if you ask of it you are going to get a negative response. Each and every one of us has emotions and when a buyer sends a list of 15-20 items that they want upgraded, repaired, replaced, etc the sellers are most likely going to get angry and frustrated.  The buyer’s agent has not done a good job of explaining the contract and helping them understand the process.  Home inspectors seem to have one thing in mind – nitpick.  A home inspection should not include light bulbs, concrete donuts around sewer pipes, items that work just fine but a new construction code was implemented last month, etc.  Recently, I received a request of 18 items that included these things. I politely pointed out that based on the contract their buyers signed we are not required to fix such things (TiP: make sure your agent can tell you the difference between repairs and due diligence) and only 3 of the 18 were relevant.  Let’s just say this other agent was not pleased at our conversation but I was representing my client's interests. This is the same agent that missed a deadline for the buyers and then asked us for more repairs. Real Estate is all about knowledge and understanding, representing your clients, meeting deadlines and doing tasks in a timely fashion.  TiP: if you are a buyer pick out the 2-4 items that matter most to you and request those repairs.  Don’t lose a contract based on emotion.    

Appraisers have hard jobs.  Using a Realtor that understands the market is a valuable tool and you should listen to them. I’m pretty sure that 99% of sellers feel their home is worth more than it is and a good agent is going to gently communicate why it’s not based on comps and explaining home valuation process. Please do not get angry with us for doing our job?  We will be handling all the stressful tasks and responsibilities of selling your home (that’s why you are paying us) so you don’t have to worry about it.  Let's take a home valued at $200K and this is based on solid comps but you refuse to listen- you’re going to have issues.  TiP: an overpriced home does not sell.  An overpriced home will sit on the market too long, receive low offers and you'll lose money (because you'll be paying a mortgage, bills, insurance, etc on that home while you could be at your new home if you just priced it right at the beginning). Or, let’s say your agent does list your home at $225K and it does sell.  Then the buyer’s lender sends an appraiser out and values your home at $200K. You basically have 2 options: cancel the contract or sell at the appraised price. Here's where my frustration lies.  I can have a home listed for sale and if I do 5 appraisals I’ll get 5 different valuations of that home.  This is why your Realtor really needs to know the market and price it right at the beginning. Recently I had clients that listed their home too high and I kept saying to them "it's too high."  Finally, they changed the price to my recommendation and 5 days later we went under contract.  Homes sell based on location, price and condition.  I just had my home appraised 11 months ago and then again this week for a home equity loan.  In less than a year my home appraised at a $12K differential.  Somehow my home lost value in under a year and we added new floors, new HVAC, painted every room, and our local market is increasing in value yet somehow my home lost value. It makes no sense and arguing the appraisal is time well wasted because most times the realtor loses.

If you’ve ever bought or sold a home, you may understand there are many things that can go wrong and it can be very stressful. As your local Realtor I want to educate you and make sure you get what you deserve and pay for. Most people think they know how to buy and sell a home but there is much more to it than you realize.  That’s why I rarely recommend someone selling for sale by owner (FSBO) – there are so many things that can go wrong.  TiP: if you’re trying to sell your home on your own please don’t use the Zestimate (Zillow.com) to come up with a price. Call me, I'd be happy to help you price it. 

Well, I hope you found this useful.  I love what I do and what I do is get to help others get the best deal possible on a home (buying or selling). I’d be happy to help you in any phase of your real estate needs. Just give me a call or shoot me an email.  Don’t forget June 10th is our big sweet tea world record day here in Summerville, SC.  You can also see a local calendar of events here on this site anytime.

Jason Gregg, Realtor
Keller Williams Realty
843.696.8627
www.Palmettodreamhomes.com

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