Mistakes Home Sellers Make

1. Delusional Thinking

“My home is special, I WANT to sell,  I need to net, It’s sold as is! “  When these words come out of a sellers mouth I know they have delusional thinking are headed towards bitter disappointment. My job is to first save them from themselves by educating them to the differences of a home sale instead of a home listing. Many REALTORS will list homes for sale following the requests of the seller instead of educating them to how to be in the market and sold instead of just listed.  There is a huge difference between being “in” the market or “on” the market. Delusional sellers look for magic pills and hope time will be their cure all. 6 months later their house isn’t sold and the search begins for another REALTOR to work magic. Sellers with delusional thinking place houses on the market instead of in the market.  

For Success Change Your Thinking.

Your house will only sell if buyers think it’s special. Wanting to sell instead of needing to sell usually means Disney Land pricing- be careful with that thinking. Pricing you home with what you want to net instead of  market value is like buying your house back every day it’s on the market. It will never sell if your net doesn’t match market value. Sold “as is” happens all the time with distressed properties at very discounted prices. “As is’ guarantees one of two things either a low price or no sale at all. Is that what you want?

2. Pricing With The End In Mind

I can’t tell you how many times I have heard “I need to net X to have enough money to buy the type of house I want”.  The market is, what the market is. I do not know any REALTOR who can make a buyer give a seller what they need in order to buy their next house. Frankly, the buyer doesn’t care what you need and is not going to help you buy your new house. They are trying to buy their own house. Hopefully yours. If you need to net X and it is higher than market value forget selling. Stay put and enjoy the home you have or alter your desires on what you purchase with your net dollars.

3. Hiring The Wrong REALTOR

A REALTOR’S  job is to educate sellers, market their home and negotiate contracts. Therefore it would make sense for sellers to focus on how much experience and exposure the REALTOR they hire can bring to them. Instead many sellers hire family friends or REALTORS who have no market reach other than a sign and MLS listing and lack experience in negotiations. Ask how many homes they closed last year, this month and how many they have under contract now. Then ask how many of them were listings and how many were buyers. Do you want to be the very first house they have ever listed for sale? Or the second, third or fourth? NO you need experience if you want success. Working with sellers  is very different than working with buyers. Seller’s agents need marketing dollars, contract negotiation skills and problem solving abilites. Does your agent qualify for the job?

4. Keeping up with the Joneses

One of the biggest mistakes I see most sellers make is pricing their home by comparing it to other houses for sale now. They say “My neighbors house is priced at X and I have better landscaping and a fence so I think my property is worth XX”.   Hello…..what if your neighbor is wrong?! Didn’t your mother tell you two wrongs do not make a right? The fact is, most of your neighbors are wrong because they have all followed this delusional thinking trap. In every market there is data to prove what percentage of neighbors are wrong. It’s called number of price reductions and expired listings. I am certain many of your neighbors are wrong.  Please, Mr. and Ms. Seller, I beg you to look at sold and under contract properties. Not what’s for sale now.

5. Eliminating The Appraiser From The Equation

This may be the most overlooked, under estimated, dangerous mistake a seller makes. It doesn’t matter what you want for your home, or what a REALTOR thinks it is worth, or even what a buyer is willing to pay….if there are no recent comps to support the agreed price it is not going to appraise and you will lose your sale 99.9% of the time. Appraisal guidelines have really changed. They look for comps that have sold and closed in the past 90 days. If there are good comps they use them. If there are no comps they may go back 6 months. However, the times of them going back a year or two and justifying a sales price is over. Appraisers are chosen by lottery, comps have to be the most recent, they also have to include under contract, short sales and foreclosures sales in their report. All appraisals go under a second review by the mortgage companies underwriter before acceptance. No appraiser is sticking their neck out. If the comps say X and your contract is at XX your appraisal comes in low which reduces the amount your buyer can finance and the deal goes south. When you list you home for sale begin by looking at closed properties within the past 90 days just the way an appraiser will. If concessions were paid you must reduce that amount from the sales price too. Adjustments are made for differences such as no garage verses 2 car garage. Your REALTOR can help you understand the adjustments in the comparable properties. Age, square feet and location are the big 3 factors. Upgrades help a house to sell when competing in the beauty contest against other home choices but, do not necessarily help appraised value when it comes to mortgage companies lending money.

If you are considering selling your home in the Greater Raleigh Area please know that the days of inviting a REALTOR to sit at your kitchen table telling you what you want to hear so they get you to list with them is over. A successful sale today begins with a listing consultation in the REALTORS office where you can see the most recent sales in detail the way an appraiser does, study other sellers who failed to sell and why.   Do not make the same mistake as others, look at your competition through buyers eyes, see first hand the marketing you are paying for and make a good business decision about selling your home in the current market. If this consultation shows sales in a range that will give you the net you want your odds of selling are very high and you should jump into the market. If the numbers do not make sense for you to sell now, wait. Real Estate always goes up in value over time.

For a free seller consultation contact me through my Raleigh homes website or call 919.235.0007.

Hope you have a great Monday!

Linda

Linda,

The location of the houses you sent and used in my weekly home competition report concerns me. I am actually familiar with this subdivision off of Rock Quarry Road. Yes, the houses are similar, but the area is not.

Bob

Hi Bob,

I understand your analysis of different locations as well as your concern. However, please note that my search comes direct from MLS and it pulls only your MLS area which is about a 5 mile radius. It also pulls your price bracket. The way this search was created for you is exactly the way a buyer and a REALTOR searches for homes to consider viewing in person. Someone relocating or not familiar with the area is not going to judge this search as you have. To them all these houses for sale will appear equal until they schedule an appointment to see them in person.

If A Home Is Not Competitive Online Then No One Will Come To See It In Person

The challenge I have in marketing your home and getting them through your front door is; if your house is not competitive on a computer screen they may not select your house to see at all. This is why it is important to look at everything in your area the way a buyer searches for home and be competitive with all. If they select your home to view in person and the other home in the neighborhood you feel is inferior they may draw the same conclusion you have and your house wins the sale. However, if they do not choose your house because it doesn’t “appear” to be a good value you have no chance of winning the sale.

My Job As Your Real Estate Marketing Agent Is To Get You “In The Market” And Not Just On The Market.

Other sellers always affect your ability to sell because home buying decisions begin online and not in person. Hope this helps to clarify the search data that was sent to you.

Linda

Dear Linda,

I’m not ready to move anytime soon but when I do, you will be the listing agent so I figure I better ask your opinion now. We are remodeling our master bath. We’ve put down tile floors, a marble shower, new vanities, new mirrors, new light fixtures…..but we took out the garden tub we never use and don’t want to replace it. We were thinking a window bench that lifted up for storage or something like that. Is that going to kill our resale? Do you have any ideas for the space that the tub used to be in? We paid $232,000 for our house almost 4 years ago. We have done too many upgrades (just like in our last house!!!). Granite in the kitchen, new windows, new hot water heater, tile floors in all the bathrooms. We have so many nice upgrades but are we making a big mistake not having a tub in the master bath?

Thanks!
Ava

My Response Drawn From 25 Years of Working as A Real Estate Agent in Raleigh

Hi Ava,

I am sure your house is beautiful just like the last one I sold for you. The bathroom remodel sounds very nice but, you really, really need at least a garden tub. I have seen many people chose to not buy a house because it didn’t have a bath tub in the master. I know we never have time to use them but, people want them just in case.

Please let me know if you have anymore questions as it is always my pleasure to help you.

Linda

Hi Linda,

I have talked to my mother and she is so indecisive I am not sure how to push her forward at this point. She doesn’t feel that she knows where to go and doesn’t know how to go about making the decision. She feels that she needs to make a decision on where to go before going forward. I try to provide help but she is very hard to deal with. She needs to be gone from that house!

Bill  

Parents Need Help and Time to Process a Major Change

I wrote back:

Hi Bill,

In my experience with situations like this all elderly parents and especially moms have to know where they are going before they can take this leap of faith. Older people really have a hard time with change and this is her nest where she feels safe. Help her get rid of stuff. She is overwhelmed with how to physically move and everything she parts with she will need to grieve. It is part of letting go. If she is giving her extra things to family members to enjoy she will feel good about letting them go. She will feel she is helping and providing which meets the motherly need in her. If she has to take her life long positions to the Goodwill or dump she feel wasteful and have a hard time letting things go. Help her get rid of things in positive way.

I would also suggest that you take her to visit her choices. Hopefully she will see the fun she can have there instead of being alone. She needs to have a goal she is excited about to work towards because this is going to be a lot of emotional and physical work for her. The unknown is not going to get her motivated. She needs to see her new life.

Hope this helps.

Linda

So What Happened?

Hi Linda,

Again I think you are right on target. It is like the Lord intervened as the day after you sent your email a woman who lived behind my mother and who had been friendly with my mother for years emailed and asked what she could do to help. I sent your email to her and she said she will do what she can. She is younger by far than my Mother’s other friends who can’t do much to help her. I don’t have much ability to deal with it being an only child and three hours away with a disabled wife and two dogs to take care of so I really need someone in the area to help her. Hopefully this woman will be able to be a catalyst to get things moving.

Bill

Refreshing a home here in the Greater Raleigh area starts with  removing wall paper and adding a fresh coat of neutral color paint on worn walls to provide a wow factor without a big expense. Something that often gets overlooked in painting is the scuffed trim and dingy caulk lines. The trim needs a fresh coat of paint too and everything should be re-caulked to look like new. Door hardware is also a quick fix as well and switching out knobs and pulls in kitchens and baths to catch the eye and revive an entire room. Taking it a step further update faucets, lights and even switch plates can take a space from dated to feeling new. If you have white cabinets with polished brass pull change them out to oil rubbed bronze and notice how the eye now sees the room instead of the shinny objects on your cabinet fronts. If carpets are worn or any color other than neutral refresh those too. Just ok will not bring you a sold sign in our competitive Triangle Real Estate Market.  If you can’t find the time or know how to do it, hire a professional.  The investment will be well worth it in the long run. 

Don’t Overlook Your Exterior  Home Curb Appeal

The fresh new look you have on the inside will never be revealed if curb appeal doesn’t draw them in.  Don’t forget to make a good first impression. In real estate this begins on the outside. Do you see  home buyers  in Raleigh, Cary, Wake Forest or Apex driving past your home?   How fast do they drive?   Do they tap the brake lights or do they come to a full stop? Curb appeal is 80% of a  home sale.  If the buyer doesn’t like the looks of the outside they will never come inside to see your beautiful  home. So refresh the paint on you front door and shutters. Remove the window screens, powerwash the driveway and sidewalk, clean the garden, plants some flowers, add fresh mulch and put out a new door mat. Don’t forget to look at your house the way your buyer will. If your exterior light fixtures or door hardware is dull or rusted replace them. Most important of all, if your shrubs are overgrown and covering windows or tree limbs are hanging down so low you can’t see the house, trim them back, cut them down or replace the shrubs. “If you can’t see it you can’t sell it”. 

Refreshing your home  to make it compelling may also include new counter tops or covering vinyl floors with tile.  However, this depends on what your competition is offering in the same price bracket.  If you would like to meet with me to determine if that expense would be needed or an over improvement that will not bring you a return on investment, just give me a call.  I may be reached at 919-235-0007 .

Hope you are having a great week.

Linda

What!!!! You Are a REALTOR and You Talk Some People Out of Selling Their Home?

As I type this blog post 8 out of 10 property listings currently on the market are failing to sell.  Every home seller in the Greater Raleigh Area is in a beauty contest and a pricing war.

As I met with one such home seller who lived in Bedford at Falls River, I showed him all the homes for sale in Bedford, days on market, staging and upgrades his competition had made to prepare for a sale. I also showed him list price to final sales price and what how many seller’s paid buyer mortgage closing cost to consummate the sale.  He said: “Boy what you are showing me and saying to me is a lot more negative than the other REALTORS  I’ve talked to”.

My answer was: “Sometimes it’s hard for people to tell the truth when they know the truth is going to  hurt.  And, sometimes REALTORS  lack experience with listing and marketing homes so they do not know the truth”.

My “tough love” advice comes from experiencing four down markets in my 24 year real estate career and from constantly carrying a large listing inventory.

Before You List Your Home For Sale Make Sure You Are Getting All of the Facts

No one can make a good business decision with bad information. Every home seller needs to know what they are getting into upfront to avoid costly surprises. After carefully reviewing all the data from multiple angles if the numbers work for you to sell now then list your property. But, if the numbers make no sense and you do not really need to sell your home don’t list now–wait to a better time. Real Estate changes almost everyday.

Every home seller feels their home is special because it is. Your life and emotion has been experienced in it. Because of this many real estate owners have unrealistic home selling expectations and say: “Well let’s just try my price  and see what happens” and many REALTORS will say “ok” to get a listing. Do you want your home listed or do you want your home sold? If you want your home sold focus on sold and closed properties not what your neighbors home is listed for.  If your price is not a good value to the buyer all you are are doing is wasting your time and energy, stagnating your home on the market and helping your competition sell.  The only home that is going to sell right now in the Greater Raleigh real estate market is the home that is priced right and in excellent condition. In this current buyers market everything matters. Staging, marketing, pricing, follow up and watching your competition daily to make sure your home is in the best position possible to attract the next buyer.

Quick Advice About Hiring The Right REALTOR To Sell Your Home

If you are talking to REALTORS who are scared to practice “tough love” beware. Selling a home in a buyers market takes skills, analysis and truth.  As you interview local real estate agents ask how many homes they have listed for sale now and how many they have listed, sold and closed in the past 12 months. REALTORS that specialize in working with sellers have experience from all of their previous listings to guide you through a down market to a successful sale.

Linda

TAKE YOUR TEMPERATURE

Turn your hot water temperature down to 120 degrees and cut hot water heating energy compsumption

SWITCH THE LIGHTS

Compact fluorescent light bulbs use up to 75% less energy than traditional bulbs. Replace them in highly used fixtures such as porch lights, bathroom vanities, and office lights.

SAVE WATER

 Install low-flow shower heads and faucets to cut back on water flow or shorten your shower time and your water and heating bill

PLUG OUT

Use a power strip for your Raleigh home office or entertainment center. Even in standby mode, electronics account for 15% of the household electricity.

SWITCH OFF

Remember to turn off the light when you leave the room and to unplug your computer and other appliances when not in use. These small gestures will save you money and protect these items during bad weather. 5 to 10% of your energy cost goes towards lighting

ADJUST REFRIGERATORS

of all your appliances your refrigerators will use the most electricity in your Raleigh home.  Adjust the temperature to 37 degrees F and your freezer to 0 degrees F  and save.

WASH CLOTHES 

in cold water and save roughly 36 cents a load.

DRY CLOTHES OUTSIDE

Hang your heavy duty clothes and bed linens outside and get that fresh smell.  You’ll also be reducing the amount of  energy you use in your home.

SEAL IT

Search for hidden air leaks around doors, window, electric outlets and in your attic, basement or crawl space too. Seal them with caulk, spray foam or weather stripping. With four seasons in Raleigh sealing a  home can cut energy consumption by up to 10 percent.

NIGHT NIGHT

Lower your themostat at night and stay warm with a down comforter. For each degree you lower it, you’ll reduce heating cost 3% to 5%.

RATE IT

Look for Energy Star-rated products for your Raleigh home. They can save you a third of energy cost.

Going Green with Raleigh real estate can turn your home into an energy-efficient investment.

Have a great Memorial Day Weekend!

Linda

1.   A Compelling Price

2.   Condition

3.   Access

4.   A good marketing agent

Many sellers today feel very beat up and out of control in this challenging and competitive Raleigh real estate market. Many Raleigh home sellers get mad at their real estate agents when their homes do not sell but, the truth is the REALTOR has very little control. As a seller you decide the list price, how easy or difficult you’re going to ake it for us to show; you decide whether or not you are going to put it in good showing condition; you decide whether or not you’re going to be cooperative on financing options and closing cost. Your REALTOR does not decide any of that and neither does the buyer. You’re in 100% control. Additionally, your REALTOR can’t make the buyer pay what you might want, any more than your REALTOR can make you take what they buyer offers. You’re in control- you have the final say over the sale of the house. Your REALTOR’S  job is to advise you, give you the truth about current market conditions, market your home aggressively to generate leads and follow up on every lead to create opportunities for an offer.

If you have any questions or would like to discuss strategies in this current real estate market, please give me a call at 919.235.0007 or send me an email.

Linda

Everyday I talk to people who are in despair. The best answer is to sell their home, pay off the debt, and move to a smaller more affordable home. However, many Raleigh homes have not appreciated enough to satisfy the cost of selling and the mortgages owed. If you find yourself in this situation a short sale is your best solution. Mortgage lenders do not want to own real estate. They are eager to work with you on a short sale. So eager that I have many lenders calling me directly to tell me my seller has missed payments and they are willing to do a short sale. They request from me that I get the home owner to submit a pre-foreclosure short sale package. Why, because they do not want to foreclose and own real estate. They want to help find a win win solution.

For most home owners it very confusing and hard to believe that their mortgage company wants to help them when they are receiving threatening phone calls from the collection department. Those phone calls feel like they are only out for blood. And, in some ways they are, at least that one department. Every mortgage company has different departments with their own agenda. The Origination Department makes loans. They are the friendly sales force for the mortgage company who want to give you money. They are paid when you borrow. The collection department has only one job and that is to collect. Some would say; “collect by harassment.” When the Collection Department pressures you into paying they receive a bonus.  Loss Mitigation or Home Retention is another department at your mortgage company. They want to work with you to stop a foreclosure and encourage short sales and other solutions to avoid foreclosure. To learn more about the solutions to stop foreclosure visit LindaCraft.com

5 Things You Need to Know to Save Your Credit

and Avoid Foreclosure:

1. When you call your mortgage company, make sure you get to the right department.
2. There are thousands of short sale request daily so it takes a lot of time to get through. Be patient.
3. The work load in Loss Mitigation is causing employee turn over to be very high. If you do not get the answer you want when you call in the first time, call back and talk to someone else. The employee turn over in the pre-foreclosure departments is so high that you may get a new employee that doesn’t know what they are doing. If you get someone new you may be told things that will make you want to run away again. You can always ask to speak to a Supervisor’s.
4. Whatever you do, don’t let your Raleigh home go into foreclosure. There are other solutions. Foreclosure equals 10 years of horrible credit and every foreclosure reduces surrounding home values approximately 9%.
5. A bankruptcy may seem like a quick fix to stop the harassing phone calls but, in the end you will have a bankruptcy and a home foreclosure on your credit report. Do a short sale first and a bankruptcy afterwards only if you still need to.

If you have any questions I can be reached at (919) 235-0007.

Linda

 Here are a few good tips to use:

Write down the color, make, model and license number of the car the person arrived in.

Tell someone you trust who are meeting, what time they will be at your house, what time they should leave.  Have them call you at a certain time to make sure you are ok.

Keep your cell phone in your pocket, not in a different room

Trust your instincts.  You have them for a reason

 Dress for safety- do not wear expensive jewelry

 Keep your valuables out of site- your laptop is included in this too.

For more information on how to protect yourself contact the Raleigh Police Department or an agency that offers self protection classes.

 Have a great day-

Linda