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Uncategorized • April 19, 2023

20 Steps to Selling Your Home on Your Own

by Jeffrey Halpern

The real estate commission earned by a real estate professional on the sale of your property can be a considerable amount of money.  And we know that you’ll agree it’s tempting to try to save that commission by selling your property yourself.

Many people are very comfortable in the role of “For Sale By Owner” (FSBO).  You may find that you are one of those people.  Whether you choose to take the task of selling your own property alone or prefer to work with a real estate sales professional, these 20 steps are necessary for a successful transaction to work.

  1. Conduct your own mini-walk-thru inspection. Make notes of all the items that need repair or improvement.  You may even want to bring in a second person to come in and do the same.  Your checklist should include, but not limited to, the following:  Fresh, clean paint trough-out; clean windows and window coverings; well-manicured lawn and yard; plumbing and all appliances in working order; new or cleaned flooring; all sealants (windows, tub, shower, sink, etc.) in good condition; roof and gutters in good condition; etc.  Tip:  You may want to have a home inspector to perform a pre-inspection.  This will prepare you for anything that may come up when the buyer has their inspection.
  2. Stage/detail your home. (Or hire a stager)  Make all the necessary repairs and improvements prior to marketing your property to make it saleable.  Understand that once your home is on the market, every day is “Showtime”.
  3. Carefully research information regarding the prices (more than just an internet estimate) and terms of sales in today’s real estate market. Investigate recent sales prices, under contract prices and unsold property (the competition) prices of properties similar to yours and in your neighborhood.  You may want to visit those properties as well to get a better perspective for comparison reasons.  Once done, establish a realistic asking price for your home based on that information.  Remember, buyers, will be looking at that same information when determining an offer price.
  4. Meet with local lenders and determine financing alternatives for your prospective buyers, while determining what financial qualifications your target buyers need to qualify for the same.
  5. Determine which internet sites, social media and print media will best attract your property’s target market.
  6. Determine a marketing budget and placement calendar. Prepare a contingency for both if your home does not sell as quickly as anticipated.
  7. Prepare professional, attention-getting advertisements to attract the right buyers (not lookers) to your property. A direct mail campaign should also be part of that plan. Include professional photos, videos, drone shots, and well-written description which tells the story of your home.  Be sure to keep all advertising to adhere to Fair Housing guidelines to avoid any violations.
  8. Prepare a plan to reach out-of-town and upsizing or downsizing (based on your target market) buyers, who account for a major portion of today’s homebuyers.
  9. Purchase an eye-catching and weatherproof yard sign; install it in a conspicuous location in your front yard. If on a corner lot, install two signs.
  10. Purchase multiple directional open house signs to be positioned from major thoroughfares and neighborhoods to the property. They should be installed for every open house and taken down afterward.  You may need to ask the property owners of the located signs for permission and be sure you also talk to your town’s officials to sign what their sign permits process is.
  11. Prepare a “feature/benefit/disclosure” and photo fact sheet, outlining specific features and disclosed workings of your home and the corresponding benefits to prospective purchasers.
  12. Schedule and conduct an event-style open house (public and private) on weekends and weekdays. Be sure it is advertised in all mediums and begin its marketing at the beginning of the week of the open house.  Be sure it is “open house ready”.  Require every visitor to sign in.  (You want to know who’s been through your home and it helps for follow-up calls.) Be sure all valuables and medications are stowed in a safe and secure location.  Don’t forget to put out those open house directional signs first thing that morning..
  13. Always be available to meet prospective purchasers at your home and to answer questions regarding your home, the area, schools, shopping, transportation, etc. Just be aware that there are questions that are illegal to answer). Hopefully, you can get that time off at work.  Buyers and sellers are like two ships passing in the dark and therefore, if you are not available for that buyer at that time, they will move on to another home.
  14. Respond to telephone (whether calls or texts) and email requests in a timely manner. Learn what it takes to “qualify a buyer” both financially and emotionally.  Understand the difference between a real buyer and a “looker”.  Again, ask for names and numbers.
  15. Be prepared to negotiate with a buyer. BUYERS BUY FSBOs FOR A BARGAIN. Take your emotions out of the negotiations, as if you are a third party.  Remain calm and in control or you will be taken advantage of.
  16. Have an attorney on retainer (or at least on the ready), to prepare contracts and for representation. If you prefer not to use an attorney, then have all the necessary legal forms necessary, including, but limited to:  Deposit receipts; Offer & Acceptance or contract; Buyer’s cost sheet; the aforementioned Seller’s Disclosure and Lead Paint Form; etc.
  17. Determine the type of financing you are willing to consider, such as: FHA; VA; Conventional; Seller Financing; Conventional; Straight Loan; ARM; as just cash.
  18. Negotiate with the buyers all the final terms of the sale including: price; financing; inspection issues; contingency dates; title issues; Home Owner Association requirements; closing date; and other pertinent considerations.
  19. Plan a final walk-through with the buyers before the settlement process to complete any unresolved disputes. Have a witness present.
  20. While doing the above 19 steps, you will also need to go through many of the same steps when locating, purchasing, and so forth, your next home.

By hiring a Realtor who does this on a daily basis and more than likely, statistics have shown, will sell your home for 8-10% more than a for sale by owner, which puts more money in your pocket, to a qualified buyer, in a much quicker, stress-free environment, successfully.

For any questions about any of your real estate needs reach out to Jeffrey Halpern, Broker-Associate, and the Halpern Real Estate Group of Howard Hanna | Rand Realty at 201.317.7527 or jeffrey.halpern@randrealty.com.  For 3 FREE valuations of you home plus a buyer heat map click here.  

 

Uncategorized • January 4, 2023

WHY WAIT ‘TIL SPRING

by Jeffrey Halpern

In these volatile economic times, the question all investors ask is when should I buy or when should I sell.  This particularly applies to real estate.  In theory, Spring is the time to sell because most buyers are out looking to buy.  However, the best time put a home on the market is in January/February, before the Spring market hits.  To wait for Spring is not only too late, but if you were to look at today’s market, the buying advantage is now.

LITTLE INVENTORY.  As told in Economics 101, “supply and demand” determines value and with the number of homes for sale down 20% from just 3-6 months ago, and the renewed hope of a stimulus package energized by the new administration for these buyers.  It takes a homeseller with foresight and motivation to realize timing is everything, and with the aforementioned, a rise in the percentage of buyers to homes for sale out there, they would surely optimize their home’s value.

GET A JUMP ON THE COMPETITION.  Why wait until everyone else puts their house on the market.  You will increase your chance of selling your home the market will bear.

BUYERS NOT LOOKERS.  The Spring market brings a greater percentage of lookers and curiosity seekers, whereas, anyone out now and weathering the elements, are serious qualified buyers.  Most tranferees relocate in the beginning of the year and because their companies are paying for most of their expenses, they are able to spend more for a home.

TAKE ADVANTAGE OF THE SPRING MARKET.  When a seller can sell now, they will realize their profit and have the time and opportunity to find the larger selection of homes available in the Spring.  Plus the seller is then in control to pick a closing date to coordinate with the purchase of their next home, as opposed to buying first and then scrambling to sell their home and usually at a lower than market price because of the time constraints.

This, of course is today – what will tomorrow bring no one knows.  However, real estate is the best long term investment there is.  And yes, those who bought in the last 3-5 years have made 20-30%and even though the interest rates have gone up, you are still at an advantage to move up now. You have equity you never had before.  For those who bought ten years ago their investment has increased enough to take advantage of today’s prices.

To chat about whether the time is now or in the near future to sell, contact me at 201.317.7527 or jeffrey.halpern@randrealty.com.

Uncategorized • November 9, 2022

Home for Sale During the Holidays

by Jeffrey Halpern

With the holidays soon to be upon us, the thought of putting a home on the market or buying a home is the furthest from most people’s minds.   However, for those who need to sell or those who need to buy, it is the only thing on their mind.

One of the best times to place a home on the market is during the holidays.  The inventory is low, therefore less competition.  A home looks its best during the holidays. REAL buyers are buying during the holidays.

Look, less inventory.  Most sellers place their homes on the market between February and June to capture the spring/summer market. Therefore, the competition for buyers is much greater.  Resulting in possible lower prices or at least lower offers as the buyers can claim that if not this one, there will be another just as perfect or more perfect around the corner.  Much fewer homes placed on the market during the holidays. With fewer houses on the market, buyers have fewer choices.  Resulting in possible higher prices.

Looking good.  Does not matter what holiday you observe, a home looks the most inviting during the holidays.  It smells festive, it looks festive, it’s just festive.  Why does the home have that feel?  Because it is the good feeling time of the year, that’s why.  And it is the perfect form of staging a home as well.  Can’t have the holiday tree up or menorah glistening during the springtime (It just looks weird).

More than lookers.  Ready, willing and able buyers are out during the holidays.  They have to buy.  Why just be a looker like many are during the spring/summer season.  It is the holidays.  These buyers have either sold their home and now need one, but even more so, many homes sold during the holidays are to those relocating to the area for work. Most companies have completed their budget for the following year and know what they can spend to transfer their employees to their other locations.  By the time the spring/summer market comes around, these transferees have already closed and are enjoying their new homes.

If it is time to sell, think about placing your home on the market now.  Plus to buyers, what a great holiday present – a new home.  (Much nicer than fruit cake.)  Even if the home was to go into contract, in most cases closing would not occur until after the holidays have passed, therefore allowing you to enjoy the last holiday in that home that hopefully has given you many other wonderful memories, before moving on to your next step in life with new memories to make.

Looking to buy or sell, contact The Halpern Real Estate Group at 201.317.7527.   Let their experience be your guide as they are opening doors one home at a time.

Uncategorized • June 1, 2020

Why Wait Until the End of the Pandemic? List Now!

by Jeffrey Halpern

We have had “stay-at-home” restrictions during these challenging times, and as many claim, probably considered the worst time to place a home on the market. Or is it? On the contrary, it may be the optimum time.

Of course, it is always a challenge to place a home on the market. The questions you ask yourself are:  Is it the right time?, Will I get the best price?, How do I prepare my home to show in its best light?, Is the pandemic a deterrent? etc., etc.   Believe it or not, this can be compared to the winter months of January and February, and waiting to list for the Spring selling season. The proverbial Spring season is coming upon us just 3 months late.  However, if you have to sell–you have to sell, no matter what the timing and before it is too late, consider placing your home on the market now.

Just knowing what is necessary to sell your home for the time of the year will give you one leg up on your competition. Yes, your competition. There pent up sellers looking to list inventory once go back to normal. Once those houses are placed on the market the supply increases affecting the lowering of prices (Economics 101 at its best).  When a home gets on the market plays a big role on how to market that home and the price it will garner.

The bright spot about placing your home on the market now as opposed to the end of this pandemic, is that your competition is not as great (less homes on the market gives less of a choice to buyers). Which also places your home ahead of the upcoming reopening of the market onslaught of homes, including this year’s possibility of those unfortunate souls who may not have jobs waiting for them which could result in another stretch of short sales and foreclosures which will increase supply even and ultimately lower prices even more so.  With less competition now, you have a greater chance to get it shown and sold in relatively a very short amount of time.

To make matters more favorable for home sellers, buyers are a-plenty.  There are more buyers than homes for sale, especially in “The Burbs” as people are fleeing the cities to social distance by adding space.  The absorption rate (time it would take current listing to sell) in Morris County is far below six months – a true seller’s market.  (Anything above 6 mths is a buyer’s market.)  To add fuel to the buyer fire is the fact that the mortgage interest rates are “crazy” low.  In actuality, it is more affordable to own a home today than 10 years ago (interest rates with stabilizing pricing creates a lower monthly payment). FHA mortgages have become more accessible, which creates a higher buyer pool.  There are other mitigating factors, including the prospect that realizing that employees can be just, if not more, productive working from home, employers are changing their attitude of work-at-home. This not only costs companies less as the commercial space will be lessened, it also creates a better work/life balance.   All these factors, and those not mentioned, have resulted in multiple bidding wars on the homes that are currently on the market.

This higher percentage of buyers are “real buyers” vs. the “lookie-loos” we find during the normal Spring Selling Season.  With the Covid19 protocols, home showings have been relegated to virtual first showings followed by a live walk-thru when the buyer is very interested and wants to have their other senses touched.  Some purchases now are directly from a virtual showing, including open houses, where the first live visit may be during the home inspection.  Although this was in the making, the pandemic has moved up this selling format to today and maybe forever.

With pent-up demand for housing, it is the perfect storm to get a home on the market.

When choosing a Realtor to represent you in selling, especially during these challenging times, the necessity isn’t to choose one that “owns” the town with multiple listings, or who brags about how great they are by spending advertising dollars on self promotion more than on their listings’ marketing.  The real estate business is not about them, it is about the home seller and buyer.  The choice must be based on their experience, their willingness to do the right things for their client, to be able to collaborate with the seller with counseling on pricing, staging and transaction management; adapting quickly to changes; and most importantly, putting their client first and foremost.

Choose wisely and stay safe.

About the Author:  Jeffrey Halpern, Broker-Associate, Realtor, has been a full-time real estate professional since 1985.  Team leader of the Halpern Real Estate Group of Better Homes and Gardens Rand Realty, he has successfully been involved with closing thousands of real estate closings through several varying markets with his “No excuses…just a solution” approach.  He is also a Real Estate Educator, blogger and has extensive branch management experience, and Rotarian.  He lives in Morris County with his family.  With the slogan “Opening Doors, one home at a time”, he can be reached 201.317.7527 or Jeffrey.halpern@randrealty.com.

Uncategorized • February 19, 2020

11 Reasons Why You Home Isn’t Selling

by Jeffrey Halpern
House sold sign
Posted on Jun 1 2017 – 12:06pm by Housecall

Editor’s Note: This post was originally published on June 1, 2017. Housecall continues to share this piece due to ongoing requests and reader interest.

By Charles Muotoh

When you first put your house on the market, you might be hopeful for a quick sale—especially if you’ve put a lot of money into improving the house over the years and if the neighborhood is one that has historically attracted a lot of buyers. While you shouldn’t panic if the house doesn’t sell the moment you list it, you should begin to worry if the months start flying by without any real offers. If this is the case, here are 11 reasons why your house may not be selling.

  1. You overvalued your property. If your house is overpriced, it’s simply not going to sell. Compare your property to similar properties that recently sold within your area to get a better idea of its true value. An experienced real estate agent can give you an accurate value of your home. Additionally, don’t make the mistake of tacking on the cost of any renovations you made. You can’t just assume that the cost of a renovation translates to added value.
  1. Your listing is poor. If the listing of your home includes a poorly written description without any images, a lot of buyers are going to skip over it. Make sure you and your REALTOR® put an effort into creating a listing that attracts the attention of buyers. Make sure to add high quality photographs of both the interior and exterior of your home. Don’t forget to highlight unique features as well.
  1. You’re always present at showings. Let your agent handle your showings. Buyers don’t want to have the seller lurking over their shoulder during showings, especially during an open house. This puts unwanted pressure on the buyer, which will make them uncomfortable and likely chase them away.
  1. You’re too attached. If you refuse to negotiate even a penny off your price, then there’s a good chance that you’ve become too attached to your home. If a part of you doesn’t want to sell it, or you think your house is the best house in the world, odds are you’re going to have a lot of difficulties coming to an agreement with a potential buyer.
  1. You haven’t had your home professionally cleaned. A dirty house is going to leave a bad impression on buyers. Make sure you have a professional clean your carpeting and windows before you begin showing your house.
  1. You haven’t staged your home. If you’ve already moved out, then don’t show an empty house. This makes it difficult for buyers to imagine living in it. Stage your house with furniture and decor to give buyers a better idea of how big every room is and how it can be used. You want the buyer to feel at home when they are taking the tour.
  1. You kept up all of your personal décor. Buyers are going to feel uncomfortable touring your house if you keep all of your family portraits up. Take down your personal décor so that buyers can have an easier time imagining themselves living there.
  1. Your home improvements are too personalized. You might think that the comic book mural you painted for your child’s room is absolutely incredible, but that doesn’t mean potential buyers will agree. If your home improvements are too personalized, it can scare off buyers who don’t want to pay for features they don’t want.
  1. Your home is too cluttered. Even if your home is clean, clutter can still be an issue. For example, maybe you simply have too much furniture in one of your rooms. This can make the house feel smaller than it is.
  1. Your home is in need of too many repairs. The more repairs that are needed, the less likely a buyer will want your house. Many buyers simply don’t want to deal with the cost or effort of doing repair work, even if it’s just a bunch of small repairs, such as tightening a handrail or replacing a broken tile.
  1. You chose the wrong real estate agent. In my opinion, choosing the right real estate is simply the most important decision you make in selling your home.  A good REALTOR® makes all the difference in selling your home within a reasonable time.

All these things can be fixed once you realize your mistake; however, the longer your property stays on the market, the less likely it will sell at listing price. One of the best ways to avoid making these common mistakes is by working with a professional real estate agent.

Charles Muotoh is the owner of dcrealestateguru.com, a full service real estate firm focused on leveraging digital marketing strategies to serve buyers and sellers of real estate in the Washington D.C. area.

Uncategorized • June 10, 2019

“The Flipping Truth” – FREE Home Flipping Seminar

by Jeffrey Halpern

Better Homes and Gardens Rand Realty, Northern New Jersey’s premier real estate broker, will be hosting “The Flipping Truth” Seminar on Monday, June 17, from 6:30-8:00 at the 4 Campus Drive, Parsippany.

“This is not a hype or infomercial but the reality of the flip,” states Peter Cammarata, Realtor/Builder, “there are aspects of our seminar that the so call gurus don’t tell you because their motive is to sell you a system.  That’s not what this is.  No selling, just information.”

Specific for home investors who flip homes, now or in the future, this free seminar will give our participants multiple tips on the process.  The topics include: locating the home to flip, obtaining financing, the role of an attorney, title search, cost effective renovating, staging/detailing; pricing; marketing for today’s buyers., while avoiding the pitfalls.

“There is nothing better than hearing it from the experts.” states Jeffrey Halpern, 34 year real estate professional and moderator of the seminar “The knowledge, the insights, the experience, and that fact that that is what they do for a living, is to the advantage of those who can hear them speak.  They say that even if you can get one tip to help you better what you are doing is worth the time spent.”

The speakers that have been assembled are well known in their respected fields.

Eric Charles, Licensed Contractor, All County Construction, He will be covering what renovations are necessary and cost effective for the construction.

Todd Smith, Mortgage Representative.  He will discuss financing flips including mortgages, residential and commercial and hard money.  Both necessary.

Robert Wianecki, Esq., noted Morris County real estate attorney.. Robert will cover legal ramifications, and process of the flip, as well as avoiding legal pitfalls.

Patricia Ayuso, Title Representative, Hudson United Title.  What to look for when searching properties via title.

Peter Cammarata, Sales Associate, Better Homes and Gardens Rand Realty.  As an expert builder and flipper, Pete will point out what types of properties make the perfect flips.

Jeffrey David Halpern, Broker-Sales Associate of Better Homes and Gardens Rand Realty, Certified Home Stager, will cover the sales and marketing of the home you just renovated.

All those in attendance will receive a flip kit, and have a chance to win one of several door prizes.  Refreshments will be served as well.

The seminar is Monday, June 17, 6:30-8pm, at 4 Campus Road, Parsippany  Because of limited seating.    RSVP is recommended for this informative seminar to Jeffrey.halpern@randrealty.com or by call/text to 201.317.7527. For more information please visit:  www.realestateseminars101.com

Uncategorized • June 23, 2017

At the crossroads of your real estate career?

by Jeffrey Halpern

Another year has ended. You have received your invoices for next year. (i.e. Realtor dues, MLS dues, E&O dues, etc) Evaluated the money you spent vs. the money you earned. You determine whether the passion is still there or if it ever was. And you say to yourself, “SHOULD I STAY OR SHOULD I GO?”

This is a question nearly every Realtor asks themselves at the end of every year. The answer may be easier than you think with a quick analyzation of where you are in your real estate career. Let us look at some points to consider:

1. How much money did I make? Sure you may have made some large commissions on one or two transactions, but look at the number of transactions you made. Was it less than five, and if so, if the price point and/or commission rate of your market area is reduce or the even by just 10% and you did the same number of transactions, can you afford to live on 10% less. And you know that your expenses will not be reduced.

2. Is my lifestyle or business winding down? If you are contemplating retirement and you are just living on past customers, you can be in this business forever, but is it really what you want?

3. As a part-timer, do I really do not have time to service my clients? Without a doubt, buyers and sellers deserve, no, require, a full-time agent in this most important life-changing decision.

4. Do I still have a passion for the business? Passion is the key to success in anything one does, but especially in real estate.

5. Do I have a business plan for next year or will I continue to take business as it comes? If there is no plan, there is no business.

6. Can I take my business to another level? It all starts with re-inventing your real estate business through business and social networking, and if you are willing to “get it”.

There are probably many other questions you need to ask and answer, as well as the the possibility of having your license sent back to the Real Estate Commission. This, in turn, prohibits you from earning any commission dollars from those you have worked with and those who you know may buy or sell, ever, and requires you to start all over again (licensing schooling and testing) if you decide to re-enter the industry.

Consider placing your license in referral status. It keeps your license active to refer buyers and sellers to a full-time Realtor, while still earning a commission for the referral. It allows you to move on with your life whether with a new career or an easy retirement and again earning an income.

But if it is time to go, then it is time to go – but not completely. Do not hang onto a career that just doesn’t work for you in the capacity you are in now. Save the hundreds if not thousand of dollars in expenses to you. And do not prolong what the inevitable is anyway. And most of all don’t think that you failed, you are just taking a different direction in the business to allow you to do other things. You still will have the network, you still have the capacity to help those in need of housing, and most importantly, you can still earn a referral fee that if you work it right, can make you a good source of secondary income with very little expense. As a referral agent you are still in the business without being in the business.

Uncategorized • June 23, 2017

The best month to sell your home is……..

by Jeffrey Halpern

I have been wracking my brain as to what to write this week in my blog and the other day, Mitch, a friend of mine, asked me which month is the best month to sell.  Although he asked it with a little sarcastic grin as there really is no good or bad month to sell, it inspired me to give you the Realtor’s reasoning as to why to list “that” month of the year.

January.  Many relocations happen in January as companies budgets begin January 1 and therefore they know whether they will be bringing employees in or shipping them out.  Also, if your new year’s resolution includes moving on, why not in January.  Just remember as opposed to the losing wait and joining a gym resolution, once your house sells you cannot go back on that resolution.

February.  Because most sellers wait for the “spring market” to list their home, by listing in this month a seller gets a jump on the competition and possibly sell their home for slightly more than in the nexst few months, as Economics 101 tells us that a smaller supply increases demand.  It also gives the seller a wide choice of home to purchase in March after their home sells.

March.  The “spring market” is upon us.  The weather is certainly better and more buyers are looking and therefore a better chance to sell your home and a bigger selection of homes the seller can choose from.

April.  The “spring market” is in full bloom and buyers are buying and sellers are selling.  Usually this month has the most activity.

May.  If all holds true, the April showers brought May flowers and the home is full of color.  The weather is perfect and buyers are motivated because they want to be in during the summer.

June.  High school and college graduations and parents now contemplating their move to a smaller residence and buyers want to buy before summer vacations begin and to close before the upcoming school year based on an average 60-day contract to close timeline.
July.  Home sellers have sold their homes during the spring market and now are desperate to buy a home.  Also the school year is even closer and you certainly want the kids to be in their classrooms on time.

August.  If a home is not sold, they will be re-positioning their prices to be put in line with what buyers are willing to pay and buyers, using an astute Realtor, recognize it and jump on it.  And being in contract, most school systems will allow a student begin their school year in their new location.

September.  The weather is still nice and buyers have the chance to really explore homes without dragging their kids to look with them.  More than likely, the local buyers (ones that already live in area) will be staying around.  And it also gives the empty nesters the ability to buy without worrying about schools.

October.  Buyers who want to get in before the winter always look and buy at this time.  With the leaves changing their colors, the beauty of fall gives the buyer a whole different perspective on the look of the home.

November & December.  I combine these two months for they include the same reasons.  Although less in numbers, buyers looking in these two months are the most motivated.  They need to buy or they would not bother looking during the holidays and they want to be in by the beginning of the next year.  It is also the time when the house looks its best between the holiday decorations of the home, the neighborhood and the community.

So the question I answered for Mitch was not as elaborate as above, but much simpler.  The best month to list a home for sale is when the seller lists their home for sale – upon need or desire.  There are buyers all year round.  The secret to selling any home is marketing, merchandising and pricing, to a market that is ready, willing and able to buy at that time.  And interviewing and choosing a Realtor who can best assist you in achieving your goals just makes it that much easier.

What’s your home worth?  Get you FREE jeffstimate here.

Uncategorized • February 8, 2017

LET’S GET READY TO RUMBLE!

by Jeffrey Halpern

In the past several months I have been involved with several bidding wars on homes, representing both buyers or the seller. Most of the are in the price range of $250-400,000.  Is it a good sign – yes? Is it the sign of the times – maybe (at least for the immediate future).

The good news to report is that many (not all) sellers are pricing their homes to sell (or under-pricing their homes to produce bidding wars) and all the owner-occupant buyers on the fence are coming off the fence, as well as investors and flippers. The competition is fierce.   They see value in the right priced home as well as finally taking advantage a favorable interest rates, fence-sitters become fence (and house) buyers, whereas, the investors are paying cash.  Conversely, inventory is low, driving prices up a tick and multiple offers on the little inventory there is, ticking them even higher.

Getting back to bidding wars, both sellers and buyers need to know what to do if you as a seller is lucky enough to have your house as the subject and the buyer is unlucky enough to be involved in trying to attain the home.

Seller. Without a doubt it is exciting to have your home as the subject of a bidding war. It is obvious that your home was fully marketed to enough of its target market through various Multiple Listing Sites (more than one), a slew of web sites, blogging, social and business networking, mailers, newspapers, etc., as well as pricing either at market value or just below it (yes, just below as it brings about many bids and sell for what market value is).

Because a seller has the upper hand in a bidding war, the seller can control the outcome of the final price and conditions. Seller should beware of the highest bidder. The highest bidder is not always the best of the bids and a seller must use their head and not their pocket to decide which offer to accept.

Multiple offers can come in at anytime during the selling process and actually by law, can be presented to a seller up to the moment they close with a buyer. However, in most cases, multiple bids come in when a property is first listed. When they do occur, the seller with their Realtor (and hopefully one who has had experience with them), should review each offer carefully. Do not get caught up in the hoopla as it is a business decision you must make to take the right offer.

Specifically speaking, with your Realtor, review the conditions of the contract: price; mortgage amount vs. all cash; down payment; closing date; items included in the sale; home inspection time limit; and additional contractual conditions, which may include a house to sell contingency, or the like.

From there go back to the bidders with a counter-offer, or ask them to enhance their offer. Try to avoid asking them to come to their highest and best as in my experience, there really is no such thing. It is better just to come back with a counter. If the offers are at full price, revert back to enhancement or you can actually, come back with a price that is higher than the asking price (just be wary of what it is as it may just turn all your bidders away).

The respondents will either not budge from their price, come up to a price, or just walk away to avoid the hoopla. Some may ask for the other offering prices, and although the Realtor Code of Ethics (if you are using a Realtor), with written approval by the seller, requires that the existence of other offers are present be disclosed, it does not require that the other offering prices are. As a moral and ethical standpoint, I believe that the prices be kept quiet. At that point the counter-offers are presented to the seller.

Once that has been done, revisit the contracts for a second time. If they are close, take the second highest offer – not the highest. In many cases, when the highest bidder wins they will either back out because they believe they may have paid too much, what is known as buyer’s remorse, or they will do what they can to make up the difference of what they wanted to pay, through the home inspection issues. And then there is the issue of the home appraising for that highest price (of which we are finding to be a stopping point for a good number transactions today).

Whereas, by choosing the second highest, the buyer is more apt to stay with the purchase and not ask as much after the home inspection. Giving the seller more control on the buyers requests. It must also be noted to the buyer that they already had an equity increase in the home they went into contract before they even close, as someone was willing to pay more, resulting in a higher value than their purchase price.   Plus, the appraisal process becomes more affable.

When the seller has made their choice, I advise that they keep the other offers as back-ups just in case the negotiations fall through.

Buyers. The buyer is most stressed, especially if this is “The House”. Some buyers have to buy 3-4 homes before they actually get a home  However, it is a lot simpler. Make your initial offer, look at the seller’s counter-offer, and come back to them with yours. Then do not let the hype take over and make your final price one that is not over your head.   be sure to get the assistance of a Realtor who will give you comparables of like homes in the area and in many instances, keeping you grounded.  This will give you the information for an intelligent decision. You can ask your Realtor for assistance of a purchase price but keep it in a range instead of a definitive price. (Remember, although they know the market, they are not buying the home, therefore, the value is in the buyers head more than the Realtor).

I suggest you add a letter of praise to the sellers and desire to purchase their home, to be included with your offer. There have been some buyers that have used video to let the seller know they love the home.  The video may hurt more than help as the seller may not like what they see in the video.  (It sounds wrong but people still do discriminate) If you win the bid, good for you. If you do not, leave your offer as a back-up and keep looking. It may have not been meant for you anyway or the other offer may fall through and therefore, you still have a chance.

Overall, multiple bidding can be stressful for both sides and getting the assistance from a Realtor will keep your emotions in check while giving you a representative that will work hard for you and your real estate goals

Uncategorized • February 8, 2017

Buyers are Liars & Sellers are Yellers

by Jeffrey Halpern

Ever since coming into real estate (1985 for me), my colleagues have always warned me, “buyers are liars and sellers are yellers.” Some still believe it to this day.  My take is completely different “buyer are buyers and sellers are sellers”.  Pretty simple.

BUYERS ARE LIARS?

“Buyers never tell you exactly want they want.  They do not want a townhouse and they buy a townhouse from another agent.” “Buyers tell you they are qualified to purchase at a certain price point when suddenly after making an offer,  they do not exactly qualify for their purchase.”  “They want just a certain town or neighborhood and would never live in that area and yet they end up buying in that area”

Those statements have been said by agents for years and years and yet it is not the buyer that is the liar, it is just because the buyer just does not always know where they want to live, how they want to live, or may have a misperception of where they can afford to live.  It really takes a Realtor working closely with their client and cares enough about their client to go through a discovery period to decipher all the parameters of that client.  A Realtor must ask the right questions, and show a smattering of houses and areas.  It also takes the buyers to be honest with themselves and their Realtor, to understand what they can buy at the time.  A buyer cannot expect the perfect house nor the perfect location, but they should not feel they have to settle for a house either.

A good Buyers Agent realizes that buyers can be a fickled bunch when they begin but in the end, with a Realtor that listens, really listens, the buyer will find the home that they want, not what the Realtor assumes what they want.

SELLERS ARE YELLERS?

“My agent is doing nothing!”  “My agent does not bring anyone to my house!” My agent doesn’t advertise enough.”  “My agent over (or under or mis-)priced my house!” “My agent never calls me!”

Valid thoughts from the seller?  More perception than realty in most cases some and totally correct in a much smaller percentage. One statistic has held true – 70% of sellers whose home listing expires, do not re-list that same agent, instead vies for another agent and agency.  The main reason why has nothing to do with the home not selling, but rather how the agent approached the entire process.  A bad agent will love a seller to get the listing and leave that seller after they have secured it; otherwise the majority of the agents do what is necessary to get a house sold.   However, in most cases the seller has no idea what the heck their agent is doing unless they happen to stumble upon an ad in the paper or a posting on a website.

The majority of home sellers’ biggest complaint is that the agent never communicated with them.  The key to a great listing agent as well as their obligation to the seller, is that they keep in constant contact with the seller at least once per week and stick to it.   That weekly call should include market updates, showing follow-ups, what actions the agent has taken to promote the property, and a frank discussion of where all of it relates to the subject property.  And that communication should happen even if nothing happens that week.  If an agent can keep to that discipline, the yelling very rarely happens.  If you can find an agency that guarantees it or they will be fired, even better.  (ask about the Coccia Performance Guarantee).  Accountability is the key to success.

REALTOR OF YOUR CHOICE

In either case buyer and seller, choose your Realtor wisely.  Interview several Realtors, even if you know someone in the business. Your relationship with a Realtor first and foremost should be a business decision.  Make sure they understand your needs and conversely, listen to what they are saying to you.  They are the experts and they represent your best interest.  Together you should be able to accomplish your real estate goals.

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