Should I Accept This Offer?

Today’s market can be a difficult one for many sellers to navigate.  While your real estate professional can advise you, the ultimate decision of what offer to accept is entirely up to you.  This decision can come with quite a bit of pressure.  Even in the most favorable of markets this can be a difficult time.  How do you know when to accept an offer?  Here are some questions to consider:

1.  Is the buyer pre-approved?  Selling will involve an investment of time and money.  You may need to find a new home or a temporary rental.  There is nothing worse than buying a new house, only to find out the deal to sell yours has fallen through because the buyer is not qualified to buy.  If a buyer is paying all cash be sure to get verification of funds to close the escrow.  Always make sure the earnest money is deposited into escrow as written in the sales contract and this should be 2-3% of the sales price.

2.  Do you need to move?  The urgency of your move may dictate what offer you accept.  Many sellers need to move quickly for a new job or they may need to sell to avoid foreclosure.  If you are in a rush you may need to accept an offer that is less than ideal.

3.How much do you owe?  You do not want to sell your home at a loss.  Be sure to take closing costs into consideration.  For sellers a quick estimate of closing costs is 1% plus the commission percentage.  I try to provide a more specific amount when an offer comes in so the seller will know what he will probably net from selling for the offered price.  Many markets experienced high levels of depreciation over the last couple of years.  If you are “underwater” on your loan (you owe more than the present value of your home) now may not be the time to sell.

4.  What is the market climate?  Are you likely to get another offer?  How long has your home been on the market?  Have you had many showings?  All of these are factors to consider when contmeplating what offer to accept.

Above all, ask yourself if this offer was a reasonable offer.  There are buyers who may attempt to “low-ball” you.  They may see that your home has been on the market longer than your competition.  They may know that it is a strong buyers’ market.  In response they offer a much smaller amount for your home than it is worth.  You are not obligated to accept or even respond to these low-ball offers.  If you are in need of selling now, every offer warrants your consideration and potential counter offer achat cialis paris.

In the end you must accept an offer that works for you.  You may be willing to accept a lower price for a faster closing date or some other concession or you may want to hold out for the highest dollar amount.  Remember, real estate agents can market your home but only you can sell it.

Avoid Costly Mistakes When Selling Your Home

MISTAKE 1:  Putting the home on the market before it is ready.  Most of the time this happens because the seller gets impatient or is a procrastinator and has pushed himself up against a moving deadline without getting the pre-sale work done.  So, the home goes on the market with the horrible carpet or it is being painted while it is on the market.  Presentation is everything – so get the work done before advertising the property for sale.

MISTAKE 2:  Over-improving the home for the neighborhood.  This happens with additions, bump-outs, and upgrades that make the home stick out from the competition so much that it is an anomaly, instead of a nice addition to the community.

MISTAKE 3:  Pricing the home based on what a seller wants to net. This pricing strategy will inevitably end in failure. Sellers can control the “asking” price, but they do not control the “sales” price; the market does. It does not matter what the seller wants. The price is determined by the black-and-white, matter-of-fact reality of the current real estate market.

MISTAKE 4:  Hiring an agent based on non-business factors.  Make sure you are hiring a professional with a proven track record in your neighborhood.  It might be nice to put your largest asset in the hands of your nephew who just

got his license, but make sure he has a mentor to keep your deal from going south.

MISTAKE 5:  Making the home difficult to show.  Requiring the listing agent to be present for all showings complicates the process of showing a home to prospective buyers.  Some buyers’ agents will bypass your home if it involves coordinating an appointment according to the listing agent’s schedule as well as the buyers’ schedule and their own timetable.  Also, most agents show a number of houses and it becomes difficult to time the showings.  Consider having a lockbox installed; they can be timed for certain viewing hours and are extremely secure now.  I recommended to one seller that he leave a special greeting on his answering machine.  His message went like this, “…if you are an agent and would like to show my home, please leave your name and phone number and come on by and use the lockbox between 8:30 and 5:30 today.  If you need to come later, let me know the approximate time and you are welcome to show my home.”  This made the agents feel comfortable, we had a slew of showings, and the home was sold within a few days.

MISTAKE 6:  Getting emotionally involved in the sale of the home. This is one of the biggest challenges home sellers face when putting their house on the

market. Once you decide to sell your house, it’s no longer a home, but a commodity. It needs to be prepared as a commodity, marketed as a commodity, and priced as a commodity. It does not matter what you want, only what the market will bear, in regard to pricing your home. People are going to come in to kick the tires, so to speak, and you should not get emotional about how they may or may not appreciate the nuances of your home.

MISTAKE 7:  Trying to cover up problems, or not disclosing them.  A rule I like to follow is:  If you think a certain disclosure will be a deal-breaker, be sure to disclose it!

So, How’s the Palos Verdes Real Estate Market?

I am often asked about the real estate market so I thought I would write down my slant on things. Because there are so many negative articles in the newspapers these days, I am sure everyone is concerned about the value of their properties. Prices of homes in Palos Verdes will remain the same or dip only slightly in 2011. The Palos Verdes Peninsula is a “move-up” marketplace commander du cialis en france. As long as there are so many short sales and foreclosures in the areas with lower price ranges (Torrance, San Pedro, Lomita, Gardena, etc.), there will be fewer buyers for this area. Owners of those foreclosures and short sales will not be moving to a higher-priced home on the Palos Verdes Peninsula.

 The good news is that homes that are priced right and are in good condition are still selling. Gone are the days when a home seller could pad his price to allow for negotiating. The asking price must be right on the money!