Time Pressures Used To Advantage When Buying Or Selling Real Estate

Time pressures can be used by buyer's vendors and agents to their advantage (or disadvantage) in the real estate sales process. This can add up to money gained or money lost.

Time pressure can be used to get a quick sale, and more often than not, it can influence the final sale price.

In a case where you have two keen buyers, you may be able to rush one into making an offer, through fear of missing out. Or if you are in a hurry to sell, you can use words in your advertising like: must sell quickly, owner on transfer etc.

The key is to manipulate time to your advantage and where possible bring time pressure on the other side. Sometimes it’s amazingly easy – you just ask the buyer when it is they need to move.
A good negotiator would probably say that you shouldn’t reveal your deadlines, unless you are prepared to sacrifice something in return for a quick sale.

Remember To Get A Cashiers (Bank) Check

Fail to get a cashiers check is something that has tripped up many unsuspecting buyers and sellers.

Make sure the buyer knows that he/she needs to supply a Cashiers (Bank) check or certified funds at the time of closing. If you need to bring money to closing (the seller sometimes does), then bring a Cashiers check.

Negotiating A Sale FSBO With The Right Attitude

Negotiating the deal is an area where many FSBO home sellers come unstuck. Regardless of whether you are negotiating through an agent, or directly with the buyer, it can prove to be the most costly part of the whole house selling exercise. The wrong attitude or a simple “slip of the tongue” could cost you “big time!”

To negotiate successfully will take patience, skill and most of all, perseverance.

It pays therefore, to start with the right attitude. Some people come unstuck, by what the buyer sees as a “pig-headed”, or “dogmatic” attitude to selling. Sometimes the seller has an inflated opinion of his or her own importance, or of the value of the property, and takes a “take it or leave it” approach. If the buyer is highly motivated, or desperate, they may “take it.” However, there is always the likelihood that the buyer will “leave it” and go on to buy another property instead.

At the other end of the scale is the seller who adopts a rather “laid-back” attitude to the proceedings. Whilst this kind of low-key approach can relax a buyer into believing the seller to be “not a pushy salesperson”, it can work against the seller. Again, the buyer might get the impression that the seller has a “take it or leave it” attitude. Not because the seller is pushy or arrogant (far from it), but because the seller might unwittingly be giving the impression of being disinterested in the sale. No one likes to negotiate with someone who doesn’t seem to care.

First Impressions Impact Drive By Buyers

Does your house make a good first impression?

In good times and in bad, first impressions count when buying or selling a home.

Potential homebuyers will often just want to drive-by and look at the outside of a property. Why? Because, they simply want to make a quick, personal “no-obligations” assessment. They want to save themselves the time, hassles and possible embarrassment of looking through a house that they don’t intend to buy.

So, first impressions do count! A house with poor “street appeal” can get struck-off a homebuyer’s shopping list, without them even stepping a foot in the door. That potential sale could be lost in a matter of seconds!

Needless to say, a home that is visually appealing and in good condition will attract potential buyers driving down the street. Any real estate agent will tell you that strong “street appeal” will lure those potential buyers inside.

Making your house appealing to the eye, when seen from the street, is essential for a quick sale.

Be Aware Of The Problems When Selling Your Home

An overpriced house is a big buyer turn-off particularly in a tight real estate market. The thing to always remember is - your home is worth what someone is prepared to pay for it in the CURRENT MARKET.

The problem is; most of us become attached to our home and believe our home is worth more than it really is.

Pricing your home to sell does not mean giving it away for next to nothing. It just means being realistic and listening to the market. A buyer does not care about how much you might want or need, they only care about what the property is worth to them.

Don’t fall into the trap of overpricing your property. The longer your home is on the market, the weaker your bargaining power.

Major problems (such as structural problems, leaking roofs etc.) could mean either, you invest big dollars resolving them, or you adjust your listing price accordingly.

Major problems can affect the price you get, or how quickly you sell your home. Some of the problems can be fixed (for a price) while others problems you may not be able to do anything to fix.

Remember, no property is perfect but you need to at least be aware of the existence of any of the following problems and decide what, if anything, you are going to do about them prior to putting your home on the market: bad location, bad wiring, subsidence, foundation problems, structural problems, major cracks, poor plumbing, environmental hazards, bad floor plans, a bad roof, or poor parking.

Buyers will be scared off by major problems, so you need to think clearly about your options and seek professional guidance. I wish you every success selling your home.

First impressions Count When Selling Your House

Poor street appeal can stop a house sale in its tracks. That all-important first impression is often the deciding point as to whether a prospective buyer walks through the gate, or drives off never to return.

Many home owners find it difficult to find faults in their own property and the problem is, real estate agents are often reluctant to point out the faults through fear of upsetting the vendor. Unfortunately this approach does no-one any favors.

My recommendation to home sellers is to critically eye your property and be upfront with your agent. Ask them to give you their honest opinion. Ask for a list of positives and negatives about the property and reassure the agent that you want honest and critical feedback. If the agent fails to criticize anything, then challenge the agent to be blatantly honest. However, in saying this you need to be prepared to accept any criticism and not punish or hold grudges against the agent for his/her honesty.

Also, take a stroll and take notes on how your property compares to others and what it would take to make your property stand out. You could take a friend with you to help point out a range of minor changes you could make to add up to a great first impression.

This approach to selling your home serves several purposes:

1. Encourages an honest upfront working relationship with your real estate agent.
2. It helps you identify the strengths and weakness of your property.
3. It helps your compare your property with others in a similar range.
4. It identifies problems that could possibly be remedied.5. It could reveal some positive ideas for improving the street appeal.
5. It prepares you for the likely feedback from buyers.

Remember, any criticism is not necessarily a criticism of you, it is simply an honest appraisal of the current situation. You can either ignore it, or do something about it to help sell your house.

Get The Family Involved When Relocating

Relocation from one home to another can be a stressful time for everyone affected by the move. To help the process go smoothly it is a good idea to get all the family members involved to work together as a team. It often pays to discuss the issues of making new friends and leaving old one's, the changes involved with changing jobs and schools and other common issues. This way everyone in the family realizes they are not the only one affected and that everyone is coping with similar issues.

Even before the house is sold a family team approach can kick in. The family can set a goal of always presenting the house at its best. This is especially important as potential buyers may want to view the property at almost time in the sales process.

Each family member could take responsibility for his or her part of the house as well as sharing responsibility for keeping the rest of the house in good viewing condition.

Beds need to be made, toys put away, the garage being keep tidy, the lawn mowed, leaves raked, dishes washed and put away etc. It will possibly mean some personal sacrifices like getting up a few minutes earlier in the morning, or tidying up before going to bed.

Including rewards can be a great way to motive children into taking part. The reward process could include daily checks on room tidiness with a treat promised for when the the house is sold.
This is often better than reprimanding children and getting them stressed when the house is on the market. A quiet, peaceful, happy household is what a buyer wants to see - not a stressed, angry and noisy environment. You want the buyer to want to live in your house and approach the sale in a positive and relaxed manner.

How Does Your Property Rate?

Before putting your home on the market for sale it pays to take a critical look at how others might view your home.

You be the judge.

Imagine your house is entered into a 'home of the year' contest. Get out a clipboard and take an inspection tour of the entire property – inside and out. Judge each room out of 10. Note any minor repairs that are needed. Note down any areas that need cleaning or painting. Prepare a 'TO DO' list.

Why Seek Legal Advice When Buying Or Selling Property

When buying or selling property don’t rely on friends or family members to give you accurate legal advice. Always get independent legal advice when buying or selling a property. Your real estate attorney should be able to guide you safely through a minefield of legal bits and pieces. He or she will help with the intricacies of writing a contract. A real estate attorney can explain the implications of certain clauses and why each clause is necessary.

Your legal attorney will show you the correct way to write a contract so as to protect your rights as the buyer or seller. He or she will hopefully ensure that any such contract is as “water-tight” as it possibly without scaring off the other party in the transaction. After all, you don’t want the buyer or seller reneging on the contract – you want the property deal to proceed!

Your legal advisor will also be able to inform you of specific laws or requirements relating to the state or country where you live. For example, in most states in the USA, Title Companies close most real estate transactions. A Title Company can be an excellent resource for handling the mechanical aspects of closing real estate transactions. However, as I understand it, Title Companies cannot give legal advice to either a buyer or a seller.

Most Title Companies will employ the services of a real estate attorney who you should speak with. The title company can generally handle the rest of the transaction, but a real estate attorney is the only one who you should be getting legal advice from.

As I said earlier, the legal aspects and ramifications of a real estate transaction can be a minefield for the unwary. Don’t skimp on getting competent legal advice. ALWAYS, ALWAYS, ALWAYS use a real estate attorney.

Read how a Real Estate Attorney can guide you through a mine field of legal traps when buying or selling property.

Consult With Your Mortgage Specialist When Selling Your Home

If you have a mortgage then it pays to consult with the person (or company) that loaned you the money for the house. This could be a mortgage broker, a banker, a lender or for the purposes of this we’ll call them a mortgage specialist. If they can’t help you, or if you don’t want them to help you, then you might need to look for someone else who can.

It is important to find out how selling your home will affect your mortgage commitments. Will you be repaying the mortgage early? Will there be penalty charges for early mortgage repayment? Can the mortgage be transferred to the new property you are buying? What are the terms and conditions of the mortgage?

No doubt you will need someone who is knowledgeable and truly professional to help you with these and other mortgage questions. Friends or associates may be able to recommend someone who fits the bill. A mortgage specialist will have the knowledge to help you complete the transaction smoothly.

Why Pre-qualify Your Buyers When Selling Property

Don’t waste valuable marketing time on a buyer who can’t get a loan. Pre-qualifying interested buyer’s is essential and it is something your banker or mortgage specialist should be able to help you with.

For example, each time I have sold a business, I’ve always asked for a letter from the potential buyers banker before releasing commercially sensitive information. I would always ask for an assurance that the buyer has access to sufficient funds to purchase the business. I would always say to the buyer, “I want proof you have the ability to buy my business.”

Selling a property is somewhat similar. It is imperative you pre-qualify an interested buyer. It would be stupid to let someone who is not able to get a loan, tie up your house sale up with a contract that is never going to be finalized. That would be a waste of everyone’s time and could potentially lose you a genuine sale by a genuine buyer.

A mortgage specialist could give you guidance as to whether a buyer can afford to buy your house. They will be able to tell you if the buyer would qualify for a mortgage and if it is worth proceeding further with the transaction.

Plan For The Unexpected

We are living in turbulent times, so it pays to plan for the unexpected when buying or selling property.

Circumstances can change, the economy can change and the market can change. Although many things will be beyond your control, some things can be predicted, budgeted for and managed.

An opportunity (or problem) could present itself at any time. It is best to be prepared to grasp opportunities, or nip problems in the bud before they get out of hand. Plan for the unexpected if you possibly can.

A Change In Circumstance Cause For Property Sales

Many property owners sell their home due to difficulties in meeting their required loan and interest payment commitments. In other cases, properties get sold due to changed personal circumstances such as matrimonial problems, illness, bereavement etc.

Before rushing out and selling a home, the property owner should always carefully examine all the options.

Alternative Solution: If you are experiencing major life changes you could consider selling at a later date.

Pros: Sudden illness, a family bereavement, or marriage breakup is stressful and can trigger a rethink in your financial position. Rather than be rushed in to selling your property, it may be make more sense financially to hold-off selling right now. This is especially true if the real estate market is depressed. A marriage breakup could require you to refinance to pay off your partner’s share of the equity in the property.

Cons: If the market is buoyant and near its peak, a delay may cost you dearly especially if there is a sudden downturn.

Escalating Costs Of Keeping Your Current Home

Many home owners decide to sell because of expensive monthly mortgage interest payments. In many cases the home owner has little choice and need to sell to avoid a mortgagee sale. In other cases, refinancing a loan may be a sensible alternative to selling. If you are planning to sell your home because of expensive monthly payments, you could investigate the possibilities of changing the loan term, repayment amounts, or dates.

If you don't want to sell your home, here is another alternative solution in our series posted on this blog.

Alternative Solution: Depending on your circumstances and the location and type of home - renting out part of your home could be an option. You could buy another house in a less expensive area.

Pros: At times when the property market is on the way up, your home might be worth holding on to as a longer-term investment instead of selling it. This is especially so if you are considering buying in a lower-priced neighborhood. By not selling you’ll also save on real estate costs.

Cons: You will need to be in a position to carry another home loan as well as your current mortgage. Also, by waiting to sell, you may be disadvantaged when the market and prices level off.

8 Answers To Selling A House And Why You Need To Think Carefully Before Selling A House

Google Maps Helpful Real Estate Search Tool

If you haven't yet done so, have a look at Google Maps, because it can be a helpful tool in searching for real estate to buy. Agreed Google Maps is no replacement for a hands on property inspection, but it can save a lot of wasted time searching real estate listings.

Here is how it works: You simply go to Google Maps and type in the street address of the property and zoom in on a street level view of the property. You can move the photo East, West, North, or South - whichever way the street runs. You can rotate the camera around to view neighboring properties.

The big advantage is that you can get a "feel" for the neighborhood and street appeal without needing to visit the property.

Here is how you could use Google Maps In Your Property Search

Imagine you are thing about buying a property in another State or Country. You could start by searching for properties that meet your search criteria on various real estate listing sites. If you find a property that interests you, you can read all about the property and look at all the fancy interior photos of property. If after doing that, you are still interested in the property, you could contact the real estate agent, or you could search Google Maps before contacting the agent.

Google Maps would give you a good idea of the standard of neigboring properties, terrain, plantings, location in relation to sun, schools, shops etc. Google Maps could save you a lot of wasted time visiting properties that sound good, look good from the fancy interior photos, but are in a poor neighborhood or location.

As I said earlier, Google Maps is one of many tools you can use when searching for a property to buy. You should not rely on Google Maps to make the decision for you - it is a valuable tool to help with your property search.

As at September 2008 Google Maps is available in Australia, Canada, China, France, Germany, Italy, Netherlands, Spain, the U.K., and the U.S.

There's also full Maps functionality in Japan, with the exception of driving directions, and limited functionality for China.

There's map data from Google Maps available in these countries: Andorra, Austria, Belgium, Brazil, Czech Republic, Denmark, Finland, Gibraltar, Greece, Hungary, Ireland, Liechtenstein, Luxembourg, Monaco, New Zealand, Norway, Poland, Portugal, Russia (Moscow only), San Marino, Singapore, Slovakia, South Africa, Sweden, Switzerland, Turkey (Istanbul only).

Read this real estate article about LOCATION, LOCATION, LOCATION.

Buying A Smaller Home To Meet Loan Repayments

Many people sell their home due to difficulties in meeting their required loan and interest payment commitments.

Before rushing out and selling your home it is always best to carefully examine all the options. Sometimes the home is too big so, even though you like living there, you may decide to sell-up and move to a smaller/cheaper property.

Alternative Solution: Renting out part of your home could be an option. Alternatively you could rent out the entire house and buy a smaller house to live in.

Pros: If local property values are on the rise it might pay to not sell your home right now. By renting your home out you might gain some tax benefits and be able to claim rental expenses.

Cons: Becoming a landlord takes some work and can have its problems. You will need to find good tenants and keep the property in good renting order. You may need to consult a tax advisor, carry liability insurance and you will be required to keep good financial records.

What To Do When The House Is Too Small

Need more space than is in your current home?

Alternative Solution: Consider remodeling existing home rather than buying a new one. A more open-plan style may provide more living space. Consider enlarging, or adding, a bedroom or bathroom.

Pros: Remodeling should improve the resale value of your home. It will also save you agent’s fees and other costs associated with moving. You may need to use your home equity to finance the project.

Cons: Remodeling may mean an increase in the property taxes you pay. There is also the danger of over-improving your home. Some people fail to recoup their investment when they come to sell.

16 Quick, Low Cost, Home Improvement Ideas To Help Sell Your Home

Financing Home Improvements

No money available to upgrade your home?

Alternative Solution: Refinance or consider applying for a home renovation loan.

Pros: Renovating and improving your home can increase its market value. This could prove to be a good investment for when you do decide to sell.

Cons: Increasing the value of your home may also increase the amount of property taxes you pay (depending on the laws in your country).

Refinancing A loan Instead Of Selling

Many home owners decide to sell because of expensive monthly mortgage interest payments. In many cases the home owner has little choice and need to sell to avoid a mortgagee sale. In other cases, refinancing a loan may be a sensible alternative to selling.

If you are planning to sell your home because of expensive monthly payments, you could investigate the possibilities of changing the loan term, repayment amounts, or dates.

Pros: Refinancing can provide a home owner with more options. If you have owned a home for several years and have not refinanced, you may be able to refinance at lower interest rates and significantly reduce your monthly payments.

Cons: Refinancing essentially resets the clock on your loan. This may cost you money over a period of time, however it is worth doing some calculations and investigation what is best for you based on your current situation.

What Are The Alternatives To Selling Your Home? What About Mortgage Refinancing? Find out more.

Seek Help When Selling Your Own Home

When selling your own home yourself you shouldn’t try and do everything on your own. I don't just say this to promote Realtors, because I am also refering to getting the right advice from financial and legal experts. There are several pitfalls to avoid when selling your own home FSBO.

Also, be aware, selling your own home alone can be disheartening and in many ways scary. You have to shoulder the responsibility all by yourself.

The key therefore, is to find the right people who can help you through the sale and closing process. Accept that you can’t do all the things necessary to close the transaction yourself. There is a lot at stake, so it is important to seek qualified help, in order to get things right.