How much should you offer on that house?

When you see the house that you want and are ready to make an offer, where do you start? 

A lot of buyers ask my opinion of  what is called the 90% rule- (90% of the asking price) Some buyers will make what the industry considers a lowball offer of less than 75% of asking price. Some buyers want the house so badly, that they'll pay asking price with no questions asked, and no matter what type of market

So what SHOULD you offer on a home? Well, that answer depends on a lot of things, but most people will come up with a offer based solely upon the asking price of the home, a nd some agents don't even offer buyer-client assistance with pricing, and they should.

When you purchase a home, your agent should conduct an in-depth market analysis of that home

to determine a reasonable price range in the current market. Let's suppose that you didn't have that market analysis from your Buyers Agent- and you offered 90% of the asking price of a home. Only problem is that the home was only worth 80% of what is was listed for. Now without you realizing it, because you did not have the information, you just started your offer too high! Okay, so now you know, why the 90% can cost you money, and in some instances, you'll still overpay for the house.

Maybe you want to put a "lowball offer" in on a house because you like to negotiate, and you want to see how much the seller will cut his price for you.  If your agent did not give you a market analysis of the home you want to buy, you  wouldn't know that this home is underpriced, and even an offer at asking price is a good deal. Rather than let someone else figure out what a good deal this house is, and losing the opportunity altogether  because you tried to overnegotiate, be smart about it, and put ina good offer tha the seller will accept before you get into a bidding war.

It's always up to you what offer to put in on a house, and you have every right to expect and demand that your agent will give you assistance in pricing. That's a fiduciary relationship, which is what your Buyer Representation agreement outlines quite clearly.

Let me put it to you this way- If you are selling a home, you would expect a detailed markte analysis. You should have a detailed market analysis of the home that you buy, too. If the idea of a market analysis for a home that you are buying sounds foreign to you, it's time for a new agent.

HOME BUYER MYTH # 1 : It's a good idea to work with the Listing agent.

WHAT ??   If you are interested  in buying a house, AVOID having the listing agent represent you.

That may be the exact opposite of everything you may have ever heard about buying a home. Let me explain why. That agent is representing the seller, and besides having  a fiduciary relationship with that seller, there is an established  rapport with seller- there's an allegiance to that relationship. They know that seller better than they know you, so no matter what an agent says about being fair and equitable to both parties, I would think it would be psychologically difficult to attain a fair balance. Forget about Dual Agency representation- it's diminished representation.

So the moment you call the listing agent on that property, that agent knows you have interest. If you want to submit an offer on that property,, you'll probably end up paying more for it, because the agent already knows what the seller wants, and wants to look good to that seller by bringing in a great offer.

But someone told you that the agent might cut their commission to make the deal, and that way, you pay less.  The truth? Agents  cannot cut their commission without their Broker's approval. The Broker looks at things  strictly in dollars and cents. If the broker allows a commission break to help you purchase that house, then they do not benefit from a full commission on the seller side, or the buyer side. That home will sell- to someone who doesn't ask for a break on the commission, and you will end up buying another home through that agency with no commission break. So the broker loses twice in this instance if they cut the commission for you.  It's a rare occurrence when it does happen, so don't count your chickens on that one.

If you are interested in a house, DO NOT call the listing agent.  Interview Realtors and choose ONE real estate agent to  represent you. Someone that you can trust to get you the very best deal on your next home.   And  I just happen to know somebody.... 

Reading Between the Lines of an MLS Listing

Do you remember the first MLS listing your agent gave you? Was it somewhat confusing? There's a lot  of information on those data sheets. Realtors are accustomed to looking at them, but when you begin to look at houses, those MLS sheets look like a lot of gobbledy-gook. There are a few things to take note of right away, and you learn where that information is on the sheet pretty quickly, but there is also lots of information that almost seems hidden if you don't know what you are looking for, or should be looking at.

The first thing your eyes will be drawn to is the picture, of course. Then you'll see the price, and some particulars on the house, such as total number of rooms, how many bedrooms, and how many baths. Lesser known information that is on the MLS home sheet is the annual property taxes, property assessment, school information, and room features, besides the biggie, which is how long the home has been on the market. In our area, hidden in plain sight on the listing sheet  is  "MT 145", and unless your agent told you where it was, and what that meant, you probably wouldn't know. It means The Market Time on that house is 145 days.

Another very important thing to look at is the listing agent remarks. There are MANY subliminal messages here, and they ring true the vast majority of the time.

I'm going to ask you to look at the remarks on that listing in a different way. Think of yourself as an agent, and if you know that these remarks are  THAT important to help sell the house, it would behoove you to point our the finer features of the home in this section.

I don't care how lazy an agent might be, or how busy that agent might be, they still want to sell that house.  There are only so many alphabetic characters that an agent is allowed in this section, so its important that nothing is redundant. As a real estate agent, you would want to make sure that you have everything covered, right? Of course, you would.  So when you look at the remarks section of a listing, and there is redundancy, what should that indicate? There may not be any great things to say about that house, because the agent could't even fill up a small area of advertising space with anything other than what's already on the listing.  And another thing while we're on the remarks section- if all the MLS says is how great the neighborhood is,and nothing about the interior of the house, you can pretty much expect that the house may need some cosmetics.

Yes, I think you can tell I am passionate about my work.  I want the very best for my clients, whether they be buyers, or sellers.  Even the most seemingly minor details to someon else are very important to you when it comes to your  biggest investment. I'm always happy to share my knowledge, and help my clients  in the very best way that I know how. So when you're ready to buy or sell  real estate in Fairfield County, CT , I'm honored to help you, and eager to assist. :)

How much does it cost to "stage" your home for sale?

... and what exactly does the term "Staging Your Home" mean?
In short, it  means optimizing your home for sale to broaden its appeal by implementing neutral and /or aesthetic changes so that your home shows as well as it could to as many buyers as possible.

Yes, once a real estate agent mentions staging to a seller, the "how much is this going to cost me" antenna goes up. Relax, "staging your home" doesn't have to cost a cent!  Are there Realtors who charge for this service? Yes. Realtors who offer a one hour complimentary service, but anything after that has a fee attached? Yes. Are there companies that offer staging advice? yes. Do they charge for their services- yes, they do. Personally, I don't ever charge a client for advising them on how to sell their home for the most money. It's part of my job.

So, that being said, ask your real estate agent UP FRONT whether they offer that service, and how much they charge for it. I want to be clear, the advice  should be included in your contract, at no cost. Sometimes, and this is not all the time, I might advise to you to do some minor repairs, or buy (or rent) some furniture, depending on the property. Then, and only then, there might be a cost, but never for my advice. I have a number of affiliate partners who I refer business to, who discount their services to my clients.

Here are a few tips on staging your home that won't cost you anything but time.

Clean! make sure your home is as spotless as you can make it.
Make sure all of your lights are on and opreational for showings (lamps, recessed lights, sconces, etc)
Remove as many "personal effects" from view as possible. By personal effects I mean family photos, trophies, beauty and hygiene products, personal papers, and clothes.
De-clutter wherever needed. That means remove as many items as you can from the kitchen countertop, remove the magnets from the fridge, pack away some of those magazines and books so they are not distracting to buyers, and don't forget to pay some de-cluttering attention to your basement!

These are just a few of many tips. When you hire a Realtor, they will most certainly let  you know exactly what you need to do in order to optimize your home for sale. ... and I hope that Realtor is me!

Why would 3 real estate agents give you 3 very different prices for your CT home?

Just yesterday, I was at a sellers house,  and they called me in because they got wildly different prices for their home from the three real estate agents that were there before me. They wanted to get the most accurate price, and couldn't tell from what they had which one was right. The sellers were in a quandary as to what to do, and how to price their home.

Let me put it to you one way, and this is the only way. In order to price your home properly, a lot of research must be done by your real estate agent so that you don't overprice it or underprice it.

A Comparable Market Analysis ( CMA)  is an anaysis of homes that are similar to yours in one respect or another, and the agent analyzes  their pricing and the current real estate market trend in order to arrive at an appropriate price for your home.

I have seen many analyses given to sellers by agents, and quite frankly, I am surprised that any agent would submit an analysis to a homeowner without doing their due diligence.  Comparing your home to five  homes  that are on the market, five  that are under deposit, and  five  recent sales can NEVER give you an accurate price for your home. Rather, the price would indicate an average of those fifteen houses.  Some agents use less than 10 comparables in total to price your home. That just can't be effective, can it? The best  CMA's  are not all fluff, and "pretty to look at". Sure, there should  be some marketing information and a nice presentation, but  beware of the "smoke and mirrors" analysis. 
The best market analysis that you could possibly get from a Realtor is one that is so thorough , that the Realtor  does not even have to tell you a price  for your home. It will be as clear as day to you. A number of cross-referenced analyses that point to a specific number  in  the same range are the most accurate. That's the right way, with no shortcuts.  Don't settle for anything less. 

BOTTOM LINE: If you want to price your home correctly,  contact me.