Real Estate Agencies: Selling Advantages

1. Network: Owing to their line of work, real estate agents have very good network connections. Apart from buyers in and around your immediate area real estate agents have access to buyers from other states as well as overseas. In light of this fact real estate agents can sell your house much faster than if you did on your own.
2. Screening Of Buyers: Often consumers find that once they have advertised their property for sale, a lot of non-prospective buyers, come knocking. Real estate agents can help you by screening these buyers. Once you have told the real estate agent what your criteria for the sale is he or she can easily bring only those buyers who would actually affect the sale.
3. Pricing: Consumers often feel that they know best what the property price is. In light of the fact that we have been experiencing a massive credit crunch, prices of property has fallen across the board. Real estate agents are well aware of these prices and can help you correctly price your house.
4. Tips To Make A Quicker Sale: Certain phrases are true especially in the real estate market. One such phrase is “ leave it to the pros”. Real estate agents know exactly what buyers are looking for. When you appoint a real estate agent to sell your property, not only do they look for prospective buyers but also advise sellers as to what buyers look for when purchasing a property. Real estate agents would give you advice on everything from how your front lawn should look to Just what the interiors should look like and also thought what extras you should offer to make the sale more attractive.
5. Future Business: Once you’ve sold your property as a seller, the process does not necessarily end there. There is a lot of paperwork that needs to be completed. It is always beneficial to have an expert’s opinion or someone who has ample experience dealing with such paperwork. In addition to this as a seller you may find that at a future date you are a buyer. Under such circumstances it helps if you have a professional relationship with a real estate agent, who in this case would help you buy a property.

Real estate agents exist in the market because they serve a lot of purposes. Not only do they bring together buyers and sellers they also facilitate transactions and can point buyers in the right direction to obtain financing. This in turn helps the seller make a quick and easy sale.

It is widely accepted at the moment, that given the current economic situation, this is a buyers market. As a seller you need to ensure that your property has all the qualities it requires to make it appealing and facilitate a quick sale. Below mentioned are some tips to help you sell your home fast.

How To  Sell Your Home Quickly

• Price

With the numbers of delinquencies rising and more foreclosures entering the market, property prices are constantly on the decline. Property prices from six months to a year ago are now in the past. Real estate experts estimate that property prices have been falling as much as 7 percent on a monthly basis. Given these statistics, it would be a mistake to base the price of your on prices which were prevalent 6 to 12 months ago. Check what the asking price of properties in your neighbourhood is. Following this price your house equally or as some experts would say, “a shade under” the asking price of properties in the neighbourhood.

Presentation

Making your house appealing is very important in order to obtain a quick house sale. Before selling your home, make sure that you have trimmed the hedges, carried out the necessary interior renovations and tidied the back yard. If you feel that you may not be able to achieve the desires result on your own, ask professional to help you out. The fees will well be worth it in the end when you will be able to demand the right price for your property. The primary goal of a clean up should be to be able to the house inviting and enable another individual to imaging living in your property.

Take Care Of Major Issues

Leaking roofs, falling out fixtures unsure plumbing all constitute major issues. Prior to even putting your house on the market, make sure that you have taken care of these problems. If you haven’t, finding a buyer could be really tough, in the current market. Moreover real estate agents want to make sales and if these issues pose a problem to an ultimate sale, the real estate agent will put your house at he bottom of his/her pile because they for a fact know that your house is not one that they are going to get a sale out of.  In addition to this also make sure that your house has no structural issues or infestation issues. Get the carpet cleaned prior to an inspection and make sure that you have tried you utmost best to remove any stain on the floor or the walls.

Spread The Word

If you are trying to get a quick sale, the only way to go is to spread the word about your property being on the market as quickly and as hard as possible. Talk to local real estate agents, advertise in the local newspapers, use community notice boards and definitely do not overlook word of mouth advertising. The more aggressive you are with your advertising the faster you will be able to find a potential buyer.

Once you have found yourself an interested party make sure that you do a little something to show the buyer that you are reciprocating their interest by adding a little something to sweeten the pot.  These could include, a new wardrobe, a cinema system or the Jet Ski etc. A little icing on the cake goes a long way in making that sale.

References:

1. Top 5 Ways to Sell Your Home Fast – AOL Money & Finance
2. 8 tips for selling your home fast – MSN Money

People may tell you that this is predominantly a buyers market and it is true, especially considering the low interest rates and the fact that more and more houses are going on sale or going into foreclosure. However, it is not all doom and gloom out there for sellers. With the right amount of work on your property, you too could make your home recession proof and thereby be able to increase the value of your home and asking price for your property. Here are some ways in which you can make your home recession proof and increase home value.

Increase Value of House – Make Your Home Recession Proof

By increasing the market value of your home, you will not only make your home more appealing to buyers but also make it recession proof by preventing it front depreciating in value. Here are some ways in which you can increase home value.

Security Systems

This might sound a bit strange but installing a security system in your house can not only help reduce your insurance premiums, but at the same time can also help with the increase in the value of your property. This basically sends out the message that you as a home owner have taken steps to take care of your property  and it also saves the buyer the additional expense of having to install one themselves as it is already a pre-fit with your property, thereby adding to the market value of your home.

Landscaping

Prior to entering your home, the first thing people see is the landscape, your garden and the upkeep of it so a little landscaping can go a long way in adding to the value of your home. By investing just a little amount of money into your front lawn, garden or just the general upkeep of your property, you could put yourself well ahead of the other houses on the street trying to rope in buyers as well. In the case of property people do judge a book by it’s cover. As a seller you must ensure that you have taken care in the maintenance of your property, in order to be able to justify your asking price.

Interiors

When it comes down to trying to be able to sell your house in spite of all the doom and gloom in the market place, it is up to you to make sure that you have done enough to ensure the upkeep of your home and thereby increase home value. Peeling off paint, water leaks, falling upholstery, all reduce the value of your home. Make sure that you have repaired these or have had a contractor come in and do it for you prior to putting up for sale on the market. In addition to this there are a few more things that you might need to look into. Buyers can be very fussy about things like carpets, kitchens, bathrooms and flooring.  Try to ensure that the carpets are mouldy, stained or plain worn out. In addition to this you will also need to make sure that the bathrooms and kitchens are appealing. If you feel that you are not the best person to repair or replace them speak to your local contractor and try and get him to do you a quote for the renovations. It is important to remember that these renovations are indeed value adds to your property will make a big difference when it comes down to selling your property on the market.

In addition to the above mentioned points factors such as  location, distance from public amenities, infrastructure and also play a valuable role when it comes down to ensuring that your home is recession proof and ready for sale.

Reference:

1. What Makes A House Recession Proof - MSN Money

Supply and Demand

Supply and demand is the cornerstone of property price trends and is a simple concept that applies to any industry. If there is sufficient availability of properties to meet with demand, then chances are that some sellers will cut prices in order to be more attractive to prospective buyers. This trend will spread and with time, property prices decrease. Similarly, in a situation when demand outweighs supply, where there are many potential buyers and too few properties available on the market, the property prices will increase as sellers can ask higher amounts for their property, knowing that buyers are eager or desperate. Supply and demand may impact on property price trends on a national, regional or even local level so while supply may outstrip demand in one area, the opposite may be true in another suburb. All other factors relating to property factors are essentially an aspect of supply and demand even the cliché “location, location, location”.

Creditworthy Buyers

At a time when the global credit crunch is affecting financial institutions, they may be less likely to lend out money. Since financial institutions do need to derive an income from the money they lend, yet want to minimize their risk by being exposed to buyers who may default, they change their criteria for lending. They may only lend to buyers with a higher disposable income or even limit the category of properties that they are willing to finance. Whereas a poor credit rating in the past may have still allowed a buyer to get finance, through careless money lending policies of some institutions, with the global recession, not many banks will continue to do so. Less buyers who qualify for a mortgage means lower demand which ultimately lowers house prices.

Crime, Facilities & Amenities

There is no denying the fact that properties in a ‘bad’ neigborhood sell for less than those in a plush, upmarket area. Incidents of crime, poor infrastructure of the surrounding area, lack of facilities and services will reduce property prices. Similarly, an area with all the necessary facilities and amenities, with a low crime rate and a good image will usually increase property prices. It is important to bear this point in mind, especially when selling. Many sellers hold out for as long as possible to get the best possible price on their property, only to have a shocking crime or wave of urban decay suddenly causing a dip in prices.

Additional Costs of Owning a House

Another important consideration when selling your home is to factor in the costs like property taxes, insurance, gas and heating expenses and so on, which buyers may take into account when deciding on the feasibility of purchasing your property. A middle class home in a cold area may actually sell for less at times, due to the high cost of heating. Even transport costs of getting to and from the nearest shopping mall, school or entertainment area will be an issue for prospective buyers, and if they do not find the property conveniently located or if it will cost them a substantial amount to access these facilities, they are not likely to want to purchase a property in the specific area. Less demand once again translates into lower property prices.

While many sellers enter the market believing that the house valuation price that they were provided is the ideal selling price of their house, identifying and understanding property price trends will allow you to better understand why your house may not be selling. If you are trying to increase your profit by selling your own house, rather than opting for an estate agent, then it is important to do your homework about potential factors that may affect house prices and find ways to counteract it, if possible. If these factors cannot be altered, then look at other methods to increase your property’s value like interior renovations before selling your house. Eventually, if none of these changes improves the property price, then you should consider settling for the money you are able to get immediately rather than waiting longer and watching property prices drop further. Similarly, if you are aware of changes and developments that will definitely increase your property’s value, then you should wait until you can secure a better selling price.

Mortgage Repayments & Interest vs House Value

When you borrow from a bank or other financial institution in order to finance your home, your monthly repayments are calculated according to the amount that has to be covered, capital amount plus accumulated interest, within the repayment period, usually 30 years. Essentially the first 5 years of repayments only pays the equivalent of the interest amount and therefore you will find that after approximately 5 years of paying your home loan, you still owe the original amount borrowed. The years prior to this, you were simply paying off the equivalent of the interest accumulated throughout the repayment period. In some cases, your first 7 to 8 years of repayments would only cover the interest meaning it will take you even longer to reach a point where it is viable to sell your home at the approximate amount for which you purchased it initially.

House Price vs Mortgage Amount

When selling your home, especially if you are debt ridden and looking for a quick house  sale to put cash in your hand immediately, then the settlement value of your mortgage loan has to be taken into account. By settling your mortgage early, the amount to be paid is substantially lower than the total amount outstanding since the interest will be deducted from the remaining repayment period. However some financial institutions may add a penalty fee for settling your mortgage loan very early as they will be losing on the potential income that they would have derived from your mortgage repayments over the entire period. This has to be factored into your final selling price, irrespective of the valuation price or market related pricing. Your property may be valued at less than the outstanding settlement value which has occurred in recent times when property prices dropped. Furthermore the competitive property market at this time means that your valuation price may not be in line with the average selling price of similar properties.

Ownership of Mortgaged Property

Due to these considerations, your financial institution may not allow you to sell your home at the price that you feel is sufficient. Remember that your property is not yours and ownership rests with the financial institution that provided the mortgage until you completely pay off the loan amount. Therefore you may be unable to make decisions about selling your home at a price that you wish. Alternatively, you may be allowed to sell your home at a price that you choose but you will find that after settling the bank, you are left with very little cash in your hand, which may be insufficient to even fund your next move to another property. Essentially you lose on the years of repayments that you have made thus far, leaving you without cash or a home.

Before considering a house sale or even before you get a valuation price, it is important to first speak to the institution that has provided the mortgage to find out the exact costs and amounts due in settling your mortgage earlier. Even if you opt for a quick sale through professional buying agencies, you may find that the reduced purchase price will play against you in the long run and you will have little choice but to continue with your mortgage repayments and live within your home, even if you are in a tough financial position.

Renovating the Living Area

The lounge, TV room and dining area are often the first areas that a prospective buyer will see once they enter your home and simple interior decorating can make a big difference. Apart from a good coat of paint or new wallpaper, rearranging your furniture can improve the overall appearance of these rooms. As far as possible, go with lighter colors of paint, especially if you have limited floor space. Lighter colors give a perception that a room is larger than darker shades. Secondly, arrange your furniture towards the center of the room where possible to create an airy and spacious feel in the room. Trying to push all items of furnishing against the walls may create a bigger floor space in the middle of the room but creates a cramped and congested feel. Simple painting tricks like changing the color of your door trim also highlights key points in the room, preventing a boring single shade of the walls.

Kitchen Renovations

Most kitchens are limited in what can be changed since the built in cupboards and major kitchen appliances cannot be moved. If upgrading your cupboards or retiling the kitchen is too costly, opt for simple interior decorating measures which can highlight key points within the area. Remove the clutter, especially of additional dishes spread out across the kitchen and pack away unnecessary items. Increase the light entering the room by either upgrading your light fittings or removing dreary curtains and blinds on the windows. A kitchen creates and important impression about hygiene and no prospective buyer wants to buy a house that they consider unsanitary.

Bathroom Renovations

The bathroom may be small and the place that the least time is spent in a day but it is an important room in personal time. The bathroom is the most neglected part during a house renovation as home owners believe that it does not play an important part in the house sale. This is a serious mistake and even if you fall short in other rooms, focusing your efforts on creating a luxurious feel to the bathroom will make a difference to the buyer. If possible, retile your bathroom, especially if your tiles are looking old and grimey. One again, lighter colors will make a difference in creating a spacious and hygienic feel to the room and when coordinated with other fittings, even the faucets, a quick glance can create a good impression.

Renovations for the Bedroom

Most bedrooms have limited space as it contains large pieces of furniture and has to house many personal belongings. Neatening up each bedroom, opting for lighter colors and increasing the lighting in will make a difference. The focus for the bedrooms should be on creating a larger and more spacious feel to the room so avoid clutter as far as possible and throw out unnecessary items or furniture that has no benefit but reduces the floor space. While darker curtains shut out the daylight and are ideal for the late riser, it does limit natural light in the room which has the greatest benefit in creating a clean, spacious and airy feel to any room. Buyers are usually more understanding of a smaller bedroom provided that the living area creates an impression of spaciousness and usability.

Save on commission

You may save on a significant amount by not paying a commission to an estate agent. However you should consider the advertising costs and legal paperwork necessary for a house sale. Initially this may seem as a significant saving but in a tough economic environment, you may have to advertise over a long period of time to ensure a sale which can be costly. Most estate agents will carry the costs of advertising and purchase and sale agreement as part of their commission.

Personal Touch

Some buyers may prefer your own personal touch to a sale as the home owner who has lived in the house for many years and is familiar with the suburb. Estate agents often deliver sales pitches at every turn which may irritate some buyers and they may not be knowledgeable about the finer points of your neighborhood.

Showing your Home

Allowing strangers in and out of your house can be both frustrating and dangerous in these times. An estate agent may take a commission but will handle all showings, even when you are not at home, allowing for a quicker sale.

Better Price

When you sell your home to a professional buying agency for a quick house sale, you often lose on the full price of your home as most agencies only offer up to 75% of the valuation price. Selling your own home will allow you to ask for a price that you feel your property is worth although it should be reasonably priced to ensure a sale.

Fast House Sale

Selling your own home may be one of the slowest ways to sell your house as you lack the skill of a seasoned estate agent and most private buyers do not have the financial resources like a professional buying agency. However if you are not in a rush to sell your home, then you have to be patient and await the right buyer who is prepared to pay your asking price.

Renovations and Repairs

If you are opting to sell your own home then it is necessary to ensure that your house is up to scratch and this may mean undertaking renovations and repairs that you were putting off for years. Even basic repairs can run into the thousands of dollars thereby reducing the profit you would have gained from your house sale. However if you sell to a professional buying agency, they will often purchase the property without being concerned about the shortfalls in your property.

Moving to a New Property

Once you have completed your house sale, you have a period of time in which you will be required to vacate the premises and finding a new property that suits your needs can be costly. Furthermore, this move may also upset your life like your transit to work in the local car pool or your child’s schooling. By opting to selling your home to a professional buying agency, you may have the option of renting your property from the agency in a ‘sell and rent back option’. This allows you to stay in a house that you are familiar with until you can find alternative accommodation that suits your preferences and budget.

Repairs & Renovations Before Selling Your House

Before you consider putting your house on the market, hiring an assessor for a property valuation or calling in an estate agent, take a quick look around the property and make a quick checklist. This should first focus on items that need repair. From gutter drains, to roof tiles and leaky faucets, simple repairs may cost you a few dollars if you opt for the DIY approach but plays a big part in your house sale. Secondly, look at items that could do with a renovation although they may be in proper working condition for now. Simply changing an old rusted faucet for a new one, re-tiling a small area or painting the dull door on your garage will improve the look and alter your house price to some degree.

Interior & Exterior Decorating for a Property Sale

Decorating does not require the services of a professional decorator at a high price. Neither does it involve the purchasing of expensive or antique items. Every house has distinctive features and individual characteristics that can be highlighted by simple means that are cheap and do not require professionals. Reassessing the décor and color coding of your individual rooms will allow you to identify shortfalls in the décor. You need to find ways of making each room look larger than it actually is, airy and spacious, while giving a modern feel to the space in question. A quick coat of paint with highlighted door trims and floorboard skirtings can change the look of a room immediately. Emptying out unnecessary furniture and moving items to the center of a room, rather than against a wall, immediately makes the space feel more open and airy.

Lighting & Shading for House Photographs

Whether you sell through an estate agent or privately in your local newspaper or on a website, a photograph of your home and property will increase the chance of it getting noticed by buyers. As any professional photographer will tell you, shading and lighting plays a big part in making any object stand out. Choosing your house colors carefully as well as selecting the best time of day to take a photo will make for the picture perfect shot of your home. Artificial lighting, like carefully positioned downlights and increasing the number of light bulbs in an area will accentuate the distinctive features of each room.

It is advisable to take a look at other houses in the area or page through magazines and identify simple styling measures that can improve the look of your house. You should not get carried away with decorating as the focus should be on cost effective renovations and decorating that will instantly increase the selling price of your home. Only after making these changes should you call in an estate agent or assessor prior to get the best house price valuation for your home.

Private House Sale or Use an Estate Agent

As with any house sale, there are usually costs involved. If you have opted to put your house on the market, you will need to factor is different costs which will eventually impact on the final amount of cash in your hand. A real estate agent may make the entire process of selling your home much easier but the commission may have a fairly significant impact on the price you finally receive. A private sale can also be costly, with attorney fees, and administrative costs taking a small chunk out of your profits. Even if a private house sale may seem like the better option than dealing with an estate agent, it is important to bear in mind that you may still need to undertake advertising and other methods to market your home.

Quick Sales to Agencies

If you need access to quick cash by selling your house, then you may have to consider selling to a professional buyer like an agency. While this may only get you 75% or less of your house value, you can assured of a quicker sale. With an agency sale, you will also not have to bear any costs for the sale as legal expenses and administrative costs are covered by the agency, and not by you as the seller. If you are considering selling your house to an agency, it is important to consider the following.

• Approach more than one agency and compare the offers on your house. Ask each agency about their procedures, length of time to conclude the sale and any expenses that you may be landed with.
• Ask the agency if they provide a ‘sell and rent back’ option so that you can live in your house after the sale until you find some alternative accommodation that may be more affordable.
• Analyze house prices in your area and hire an independent assessor to give you a valuation. If you are losing more than 30% on selling your house to an agency, then you may have to reconsider your options or try to negotiate with the agency.
• Calculate the cost of doing minor renovations and repairs that may increase the value of your house. While an agency may not change their offer significantly, the investment in doing up your house may yield you more from a private sale.
• Budget yourself for additional living costs and renting another property and calculate if you can afford the move. While the quick cash in your hand from a fast house sale to an agency may seem like a better solution to settle higher interest rate credit, it may not be sufficient to improve yoru financial situation should your new living costs affect your budget.
• Consider options like extending your mortgage slightly to settle debs with a higher interest rate. While this may not be the best approach to your financial worries, it may allow you to retain your house while reducing your overall debt.
• Speak to your bank about the settlement costs in paying off your mortgage. While you may be able to get 75% of your house value through an agency, you may not save significantly by selling your house if you have a substantial amount still owing on your mortgage.