Real Estate Articles

There are really only two ways to set a realistic asking price for your home.

1. Call at least two local real estate agents and ask for a FREE “Comparative Market Analysis”.

2. Call an appraiser and pay $300-$350 for a formal appraisal.

Some would argue that there is a 3rd option … which is to get an “online evaluation” from one of the “online real estate evaluation” sites. Personally, I say “hogwash, don’t bother!”. I’ve checked these sites myself a few times just for “gee whiz” . They’re “pricing”, even on a median priced home, could be $10,000-$30,000 higher or lower than true value. Give them a couple years, then maybe, just maybe they might be more reliable … for now, stick with real estate agents and appraisers!

When you call your local real estate agents, tell them the truth. Tell them that you’re looking to put your home up for sale soon and you’re going to try the “by-owner” route before you consider signing up with a real estate company. Tell them you’re just not quite sure what your asking price should be.

Just about any agent you speak with will offer to do a FREE “C.M.A.” for you, which is a “Comparative Market Analysis”. This little CMA report is a very valuable resource to you as a “By Owner” seller. It provides you with information such as … what price other homes similar to yours in size and location have sold for recently. This report should also tell you … the original asking price, the eventual selling price, and the number of days the house was on the market before the house sold.

Very useful information to have. It will help you set a realistic asking price and determine what may ultimately be a fair selling price. And the best part is that the real estate agents that provide you with this information won’t mind putting it together for you for FREE.

Why? Because they know that the majority of people who try to sell “By Owner” usually give up after only 4-6 weeks. Then they call the realtor they felt gave them the most information and help when they had “By Owner” questions, and sign a “listing agreement” with that agent.

That being the case, a good real estate agent knows that if they’re helpful to you now, you may come back to them later if you decide selling “by owner’ is not for you. Just be sure you call on more than one agent and one company for your free CMA. You’ll find that some agents are much more helpful, courteous, professional (and likable) than others.

Another method of determining price is to pay for a formal appraisal. Unless your home is “atypical” or in an unusual location, I would opt for the cheaper (free) method and call a couple of different real estate agents and ask for a Comparative Market Analysis.

An appraisal in my area runs about $300-$350 for an owner occupied single family home & $450 for a non-owner occupied (investment / rental home). Save that for advertising your “By Owner” home. Buy yourself some signs, pay for printing some flyers, and pay for a classified ad in your local paper. It will likely be “money well spent” … or better yet “money well invested”!

Michael Hart is a former real estate agent and mortgage consultant, a private investor, and author of several articles and reports on real estate and real estate investing. He can be contacted through http://www.localinvestornetwork.com or http://www.pwrsll.com where his new report “How To Sell Your House Before The Next Payment Is Due!” is now available.

Don’t put that sign up until you’ve had a chance to take a good look around at what you’re selling. Is there work to be done? Remember that you’re only going to get one chance to make a good first impression, so don’t blow it!

Go on a “clean and repair mission” starting with the outside of your home. Walk out to the curb and take a good look at the landscaping and exterior of the house. What do you see? If you see dead plants, scattered toys, garbage cans, broken tree limbs, or anything else distracting, here’s what I suggest:

“If it’s ugly, dead, distracting, out of place, or in any other way has a negative impact on the overall look or feel of your home, GET RID OF IT! If you can’t get rid of it, do your best to cover it up. If you can’t cover it up, do your best to divert attention from it by highlighting other areas.”

When you get to the interior, it’s clean and light (not dark), and roomy and spacious (not cluttered), that buyers want and expect to see. That means you should clean the house floor to ceiling. Paint rooms lighter colors if painting is needed. And very importantly, de-personalize and de-clutter.

Make your home look as roomy and spacious as it can look.

How? One way is to gather up those cool little collections of antiques, knick knacks, stuffed animals, baskets, family photos, Disney characters, cookie tins, and so on, and … I hate to say this but … box it all up and put it away in the attic or in storage until your house is SOLD!

Why? Because too many small items in a home will make a home look cluttered. A home with too many personalized items makes it harder for a potential buyer to visualize the house as “theirs”.

Most sellers don’t want to hear that. And that’s understandable given that many times their “collectables” are associated with fond memories and special times. That fact aside, the truth is … something that may give you or I the “warm fuzzies” is, more often than not, a “distraction” to a potential buyer. But if you expect to sell a house (and put money in your pocket), you have to prepare the house for the buyers. And that means you must depersonalize and declutter.

One way to do that is invoke “THE RULE OF HALF!”

This is a rule born of necessity as I tried to help a friend sell a home that was getting plenty of “lookers”, but no offers, no buyers. I knew the price was more than fair, but I also knew the house was, well … a “clutter box”. Her house was litterally overrun with little collectibles and personal photos.

I told her, to get her home sold, she would have to invoke “The Rule of HALF”! Yes, I made up that rule “on the fly”, but I did so because I knew to say anything different could have been taken as an insult (as most of the items were given to her by family and friends).

I knew she would have to pack up “at least half” of all her collectibles, photos and knick knacks (even better would have been to put away ALL, but I settled for half), and half of all her kitchen gadgets (to give the look and feel of more counter space), and half of everything in her closets (shoes, clothes, hats, boxes, etc).

This made a huge difference in the look and feel of the house. The following weekend she showed her house three times, and received an offer (which she accepted) the following Monday.

Remember that most people are moving because they want or need more space. Declutter and depersonalize your home to make it look and feel as spacious and comfortable as possible.

If you can’t bear to put away all your “warm fuzzy” items, then try this idea yourself … invoke “The Rule of HALF”. You’ll be glad you did when the offers start coming in!

Michael Hart is a former real estate agent and mortgage consultant, a private investor, and author of several articles and reports on real estate and real estate investing. He can be contacted through http://www.localinvestornetwork.com or http://www.pwrsll.com where his new report “How To Sell Your House Before The Next Payment Is Due!” is now available.

Selling a home entails a lot of paper work from coming up with counter proposals, sales agreement to home warranties, appraisals and not to forget, print advertisements. Advertising your home is one of the most effective ways of attracting potential buyers and doing it the traditional way is still a tested and proven option. This means placing advertisements in local newspapers in your area.
Home sellers need to advertise their home to as many targeted home buyers as possible and the newspaper is a popular medium for doing this. Despite the entry of electronic media, it’s still a preferred place to advertise a home for sale. In fact, even non-subscribers will normally get a copy of the Sunday newspaper to read through the classified ads.

In writing advertising copy for newspapers, there are some guidelines you can follow to succeed in attracting your target audience. Your newspaper ad has to be the hard-sell type meaning, straightforward and concise. Depending on your budget, you can either place a short ad or a longer one complete with a photograph of the home you are selling.

The headline itself should already grab attention. Determine the most important and attractive aspect of the home and describe them in short and catchy words. Some examples would be charming and spacious home, upscale urban condominium, beautiful secret garden and secluded hideaway. An example of a specific headline would be “Charming home beside a lake with pristine forest.”

The copy or text of your print advertisement has to be attractive, of course. It should easily catch the attention of the reader and entice him or her to take action. Keep your copy short and direct to the point but never make the mistake of abbreviating words or using too many details in just three lines in order to save money.

In describing the home for sale, avoid too many specific facts especially numbers such as those pertaining to the house area or lot area. Instead, use general terms to relay the same message such as a large house or spacious living room.

Use descriptive adjectives to enable readers and potential buyers to picture out the home they could be living in. Describe the home’s qualities such as its architectural design, layout and flow, special amenities and upgrades done, entertainment options and nearby attractions.

Remember to specify also the exact location, number of bedrooms and bathrooms, the sales price and your contact information. Putting the price information on top of the ad is also a good way of attracting serious buyers. You can then mention if your price is negotiable or if financing is available. Some people forget these important details and as a result, just let a good opportunity pass up.

Advertising in a magazine has some drawbacks compared to newspaper ads. This option is not likely to produce an immediate buyer and may actually take your home several months before it gets results. Also, few people read their magazines again. Magazine advertising is ideal if you have a small target audience.

Your best option then is to combine newspaper classified ad with online advertising to reach as many buyers as possible. Keep in mind that your goal is to heighten people’s interest in your home and make them look deeper into your offer.

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