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Tuesday, September 15, 2015

Consider These "Common" Rules When Buying or Selling a Home

In an ideal world every buyer pays the absolute best price possible and every seller feels good about the price they received.  There is absolutely nothing wrong with trying to get the best price possible whether buying or selling.  

The home purchase/sale process goes more smoothly when participants understand the rules.  The rules below are not "laws" but rather what I call some "common" rules (common sense, common courtesy, common practice).

What are some rules to consider when buying or selling a home?
  • Contacting the name on the real estate sign will not get you a below market discounted price.  This flawed strategy assumes the listing real estate agent can get the seller to sign off on a better price.  The fallacy in this thinking is the listing agent has a contract with the seller that identifies the amount a seller pays to the buyer's agent as well as the seller's agent.  Why would the listing agent cut their compensation?    The listing agent has a responsibility to the seller that includes loyalty.   Remember this rule... an agent who divulges information that puts their customer at risk is being unethical. 
  • Going back to a seller to cut the agents out of the deal.  I have heard of this happening but have never been a "victim."   After being shown a home they really like a buyer goes back later in hopes of working deal to get the seller do a private sale at a lower price since they now don't have to pay real estate professional fees.  Most sellers hired a real estate agent because they understand the value of having representation.  They also know the written listing contract has protections in the agreement for the agent.
  • Thinking the seller will take less than the market price for a cash offer is likely a failed strategy in the current market.  Competition among buyers is keen with multiple offers common.   If the subject property's condition is such that an appraisal (FHA/VA) would reveal problems then the seller may opt for a lower cash offer.   Remember this rule... because there is no shortage of buyers most sellers of move in ready homes could care less whether the buyer is financing or paying cash.
  • Seller thinking a coat of paint over a problem will hide a previous issue.  In this high tech age there are ways to see behind the walls.  Inspectors have moisture meters to detect hidden problems.  Some inspectors use thermal imaging to reveal issues including leaks and poor insulation.   Remember this rule...sellers disclose, buyers verify.
  • Let the buyer fix it because its a seller's market.   This is not a failed strategy unless the seller is thinking they will still get their desired price.  Remember this rule...a house is only worth what a willing and able buyer will pay - regardless of market.
  • One strategy that may work for a seller or buyer is the for sale by owner.  Given the right property and knowledgeable parties this can be a wining strategy.  But rarely do the stars align for all parties.  Remember this rule...for sale by owner sellers or buyers who do not know the process or the market may end up losing
The first sentence above mentioned the results in an ideal world.

However, I believe in reality buyers need to feel okay with the price paid for a house while the seller needs to be satisfied they received a fair price in the exchange. 

If you are ready to buy a home in Viera, Florida, call me at 321-693-3850.   If you are considering selling your home, let me provide a free market analysis!

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