Real Estate Blog

REALTORS® are often asked, “What is the best way to show and sell a home?”  Almost every agent can tell you a story about meeting with a prospective seller who has just completed a lot of remodeling and repair work to prepare their home for the market. It can be difficult for a real estate agent to tell the seller that their renovations were not the most effective alterations to improve the marketability of their home.
 If you are considering making any improvements prior to selling your home, the best approach is to consult with your agent before you make any changes.  An experienced Realtor can provide you with information that can help you decide what kind of improvements will set the stage for a sale.  Whether it is paint and wallpaper, remodeling the bathrooms, or updating the kitchen, your agent can guide you toward “neutral” choices that can assist the buyers to imagine themselves as the new owners of your home.

In every real estate market, there are buyers who make offers that are far below the current market value.  How should you react if your agent brings you one of these “low balls”?
 If your home is priced well, you can reject the offer and be reasonably confident that a better one will follow.  In a buyers’ market, however, you may not have that luxury.  Try to get an idea of the buyer’s overall strategy, and ask your agent for advice.  Do they really want your house or will they move on to another property if you make a counter offer?  Can they afford to pay a higher price?  Are there ways to close the gap with a small owner take-back, or with terms that will increase your bottom line?  It may be necessary to take a hard look at your asking price.  If your price is on the high side, the offer may not be that unreasonable.  I recommend that you don’t “just say no” to a low offer until you have explored all the options.

REALTORS® have traditionally represented the sellers who paid the entire brokerage fee from the proceeds from the sale.  Many states now require all licensed real estate agents to provide their buyers and sellers with a written disclosure of agency or a declaration of whom they are representing in the transaction.
 The regulations require that the agency disclosure be made at the “first substantive contact” between an agent and the consumer.  An agent who is representing a buyer or seller must have a written agency agreement that includes a termination date, a fair housing statement, and an exact description of agency relationship.
 Such disclosure requirements are good for the buyers, sellers and agents.  A recent Federal Trade Commission poll found that 72% of buyers did not realize that “their” agent, in fact, represented the seller.  The disclosure requirement clarifies the real estate agent’s role, especially for buyers.

Seller’s remorse is not a common affliction, but it does happen.  There are various reasons you may be bitten by the “remorse bug” after you’ve accepted an offer. It may be difficult to move for sentimental reasons, or because the circumstances that led you to sell in the first place have changed.  You may have a nagging suspicion that you undervalued your home.  Before you place a call to your agent asking to back out of the agreement, however, think carefully about the consequences.
      As with any legal proceedings, a sudden variation from the contract can engender significant penalties.  Depending on the terms of your agreement, you could be liable for “costs and damages” based on “incompletion of specific performance” (namely the selling of your home) and even “costs of sale” that would oblige you to pay the agent’s commission.  If you experience an attack of seller’s remorse, it’s best to take a breath and gain some perspective by remembering your motivation to sell in the first place.  Don’t let a common reaction interfere with your intended life change.

Although your REALTOR® is responsible for marketing your property, it requires a joint effort to get your home sold. 

 First of all, it is very important that you feel absolutely confident that you can communicate with each other–no matter what the market is like in your area!  It may sound strange, but it is important to let your agent know that you trust them to get the job done.  Then support that trust by putting a realistic price tag on the property and keeping it in prime showing condition.  Work out showing instructions that will make it easy for agents to preview or show your home, and meet periodically to discuss any feedback from buyers who have seen your home to determine how you can improve its appeal.  Don’t hesitate to share any ideas you may have about marketing your home. Your REALTOR® is interested in what works, and often receives good suggestions from clients.

The first step to matching you with the perfect home usually involves an in-depth interview with the REALTOR® who will help you to establish a price range and determine the features that you need in a home.

 The agent will ask a lot of questions.  Where do you work?  Are schools an important factor?  Do you have children or pets? Do you have hobbies that will create special needs?  The more information your agent has, the easier it will be to eliminate the homes that will not work for you and show you the ones in your price range that should fit your needs.  A good Realtor can be a tremendous resource in this process by providing you with information about the homes that are available, as well as about shopping facilities, community services, public transportation, and neighborhood amenities.  There is more to being a great real estate professional than merely marketing.  The best Realtors are also the best listeners and counselors.

Is the real estate section of your local paper filled with stories about how slow the real estate market in your area is?   Is it taking months to sell the homes on the market?  If this description fits your area, and you have been waiting for the perfect time to buy a house, this is the time!
 This kind of market is referred to as a “buyers’ market” for good reason–it is an opportunity for buyers to select from a large number of homes that could satisfy their needs.  Everyone involved is ready to bend over backwards to make it possible for you to buy your dream home.  Most sellers are highly motivated and so are the local real estate agents, loan officers, title companies, and other professionals involved in the transaction.  It is important to remember that the real estate market runs in cycles, and conditions can change without a lot of warning.  This could be the perfect time to contact a good REALTOR® to discuss your needs and to explore the possibilities available to you.

When you purchase a property, it usually includes the land and everything attached to it, such as buildings, trees, shrubs, etc.  Most buyers are only interested in purchasing the real estate, not the owner’s personal property. However, some items of personal property are often included in a deal.
 It is helpful for the personal property that will be conveyed with the home to be established in the beginning.  The seller should give a list of inclusions and exclusions to the listing broker when the house is put on the market.  Fixtures may include shades, heaters, appliances, screens, storm windows, lighting fixtures and other items the buyer or seller may agree upon. It is important that the real estate agents spell out what is included and what is not included at the time of negotiations, and obtain written consent from all parties involved in the transaction. Otherwise, there could be misunderstanding at the close of escrow, and the sale itself may be jeopardized.

When you sell a home that has been your principal residence for two out of the previous five years, you are entitled to a significant income tax deduction.  The Federal Tax Code allows married home sellers filing jointly to keep up to $500,000 in tax-free profits from the sale of a home.  Taxpayers who file singly (even if they are married) are allowed a $250,000 capital gains exclusion.
 In 2003, the tax rate for capital gains above the limit dropped from 10% and 20% (depending on your tax bracket) to between 5% and 15%.  Any home sale profit in excess of the allowable amounts for married and single taxpayers is now taxed at the new, lower rate – another benefit for homeowners. 
 Homeowners who buy a home, live in it for two years and then sell the property are allowed to take this capital gains tax exemption once every two years.  This tax break is a big plus for those who are planning to buy a more expensive residence or acquire a vacation or retirement home.  The tax-free dollars you gain can be used any way you want.       
 Consult your tax advisor for your particular circumstance.

When their last child is married or graduates from college, many couples feel the urge to give up yard work, sell their homes, and seek a different lifestyle.  They may consider a condominium or a home near theaters, restaurants, museums and other in-town excitement.
 City living has many rewards, but this type of move does represent a major change.  Changing your way of living may be fun.  You will be giving up a lot of maintenance chores, and you will be close to many activities that are not available in the suburb, if you choose the city.  However, some things that you take for granted, like a parking place, may not be readily available in a city.  Before you make a commitment to a new condo, talk to people who live there.  Some suburban developments, town house and condo developments often have covenants and owners’ association restrictions that limit what you can do with your home.  A professional REALTOR® can get you the answers to any questions you may have about this important move.