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Phoenix For Sale By Owner Checklist

August 31, 2012 By

If you ask anyone who has ever tried to sell their own home they’ll tell you that from the moment the Phoenix “For Sale By Owner” (FSBO) sign goes up, the phone begins to ring. Unfortunately, many of those calls will not be from prospective buyers, but rather from real estate agents looking to obtain your listing. Obviously the idea of not having to pay a commission to a real estate agent is attractive to any home seller. But because of all the issues involved in the home selling process, selling a home on one’s own can be quite challenging, as many home sellers will attest to. The key is to be properly prepared. If you are not, your home could remain on the market longer than you expect because you are not attracting offers from qualified buyers. This can be a point where many homeowners become frustrated and consider giving up the idea of selling their home themselves. However, there are sellers who accomplish selling their own homes and you can be one of them. I have assembled this information to assist For Sale By Owner sellers in Phoenix understand the elements involved so you can sell your home quickly and for the most amount of money. To help you get ready, here are 10 tips to be aware of before selling your own home:

❶ Price it Right
Correctly setting your asking price is critical and setting your price too high can be as costly as setting it too low. Home prices are determined by changes in the market, not by what you feel your home is worth or what you paid for it. In order to establish a realistic price for your home, objectively compare the price, features and condition of all similar homes in both your neighborhood and other similar ones which have sold in recent months. It is also important for you to be familiar with the terms of each potential sale. Terms are often as important as price in today’s market. Carefully budget your selling costs and prepare a net proceeds sheet to calculate your best estimate of what you will receive from your home sale.

❷ Prepare Your Home for Sale
First impression is crucial. Make sure your home makes a positive statement by carefully inspecting all details and viewing it through the objective eyes of a buyer. Don’t gloss over needed repairs and maintenance – your prospective buyers won’t! Your job is to ensure your home stands out favorably from the competition and taking great pictures to showcase your home is also a terrific way to start.

❸ Prepare Yourself With Documentation
Not surprisingly, there are many important documents which you must assemble, complete and understand. A partial checklist of forms that you will need includes:
• Seller’s Property Disclosure Statement • Purchase Contract • Mortgage Payoff Statement (caution: do you owe more than your expected net proceeds?) • Buyer Loan Pre-Qualification • Preliminary Title Report • Property Profile Fact Sheet • HUD-1 Settlement Statement • HOA Demand Statement • CC&Rs from your HOA • Personal Property Exclusion List • Property Survey • Addendum • CLUE Report

❹ Market Your Home Effectively
In addition to the sign you will put on your lawn, you should find effective ways to spread the word about your home. Local buyers can be reached through the newspaper, but this is only a small part of the market you are after. Be sure you include the many buyers who could already be working with a realtor. Because out-of town buyers are also an important target, you should create an online presence to reach these people as well. Above all, you should be very service minded and make it easy for pre-qualified buyers to view your home. Ensure there is always someone available to answer the phone, return voicemails, emails and texts promptly, and be ready to give qualified prospects a tour of your home on short notice.

❺ Remain Objective During Showings
Keep emotion out of the sale of your home. The best way to do this during a showing is to remain physically in the background. If a prospective buyer says something negative about your home, it is better to counter-balance this point of view by illustrating the positives rather than becoming defensive.

❻ Pre-Qualify Your Prospects
Don’t waste your time entertaining buyers who could never afford your home. Research their financial ability with respect to job history, salary, debts, liabilities and credit score. Ask for their lender pre-qualification letter.

❼ Negotiate Effectively
There will be many details to resolve before a sale can be considered final: price, terms, inspections, repairs, possession date, buyer concerns and objections. Make sure you fully understand the contract you have written up so you can in turn explain details and ramifications to the buyer and make any amendments to the sale that are necessary along the way. The contract and documents you use should be thoroughly examined by your real estate attorney. Some real estate brokers may be willing to help you do this. While this is going on, manage the buyer’s interest in your home so that it doesn’t deteriorate during negotiations.

❽ Know Your Buyer
Your objective during negotiations is to control the pace and set the duration. Try to determine what your buyer’s motivation is. Do they need to move quickly? Do they have enough money to pay your asking price? Knowing this information will give you the advantage in the negotiations because you will know up front what you will need to do in order to get what you want.

❾ Don’t Move Out Before You Sell
Studies have shown that it is more difficult to sell a home that is vacant. It can look forgotten and often not as appealing. It could even cost you money. If you move, you’re also telling buyers that you have a new home and are motivated to sell this one fast which can give them an advantage in the negotiations.

❿ Know Why You’re Selling and Keep it to Yourself
The flip side of “understanding your buyer” is to “understand yourself”. Your reasons for selling will affect everything from your list price to how much time and money you will invest in getting your home ready for sale. Your motivation will help you determine what is more important to you: the money you walk away with, the length of time your property is on the market, or both. Different goals will dictate different strategies. As someone who wants to sell their Phoenix home without a real estate agent in an effort to save commission, it is likely that money is one of your primary considerations. Whatever your reasons, it is very important to keep them private so as not to place yourself at a disadvantage in the negotiations. If asked, simply say that your housing needs have changed.

How to Calculate Your Net Gain:
To analyze whether or not you will end up ahead by choosing to sell on your own, consider the fact that most buyers do use a real estate agent because it doesn’t cost them anything for this service. Be cautious as buyers and investors who seek out For Sale by Owners are typically those in search of a bargain. The low-ball offers from these types of buyers will often net you much lower in the long run. What you will have to judge for yourself is the following: consider what it will cost you in time to effectively market your home and assemble all necessary materials from the “For Sale By Owner” sign to documents. What price will a buyer offer you as a For Sale by Owner minus the costs identified above. Is this net price higher than the price an experienced realtor could net for you minus the commission? Unsure? Overwhelmed? Let me prepare a free Phoenix home evaluation on your home – with no obligation!

Filed Under: Real Estate Tips Tagged With: ,

Setting Price to Sell Phoenix Home

August 20, 2012 By

When you decide to sell your Phoenix home, setting your asking price is one of the most important decisions you will ever make. Your asking price is often your home’s first impression and if you want to maximize your home’s selling price, it is crucial that you make an excellent first impression. Because this is not as easy as it sounds, your pricing strategy should not be taken lightly. Pricing too high can be as costly as pricing too low. Taking a look at what homes in your neighborhood have sold for is only part of the process and this on it’s own is not enough to help you make the best decision.

I will help you understand some important facts about pricing strategy to help you not only sell your Phoenix area home, but sell it for the price you want.

An analysis of what homes have recently sold for in your neighborhood is not enough to help you properly price your home. It is important for you to understand how buyers look for a home. Think about how you conducted your house hunting search to find the home you are now thinking of selling. You most likely did not confine your search to a single neighborhood, but perhaps different neighborhoods to find a home that best matched your needs and wishes. The prospective buyer who will be viewing your home will conduct their search in a similar manner. That means they will be comparing your home to brand new construction, older homes, etc. They will also consider other neighborhoods. You can see, when you’re selling your home, you’re not just competing with the home around the corner, but also with all homes in other areas which have the same basic characteristics as yours. Selling your Phoenix home is a beauty contest and price war at the same time. Already feeling overwhelmed? Let me prepare a free home evaluation on your Phoenix home – with no obligation and without speaking to anyone!

There are 4 common strategies most sellers use to price their homes. It is unwise to assume that a higher asking price will net you a higher selling price. In fact, often this works in reverse if you’re not paying attention to what the market is telling you.

1. Clearly Overpriced
Every seller wants to receive the most money they can for their home and real estate agents know this. If more than one realtor is competing for your listing, an easy way for them to win the battle is to overinflate the value of your home and recommend you price it at 10-20% over true market value. This is not in your best interest because in most cases the Phoenix real estate market won’t be fooled. As a result, your home may languish on the market for months, leaving you with two negatives:
• your home is likely to be labeled as a “troubled” house by other agents, leading to a lower than fair market price when an offer is finally made.
• you have been inconvenienced with having to constantly have your home in “showing” condition, all for nothing.

2. Somewhat Overpriced
These homes will sit on the market longer than desired. There is usually one of two factors at play here: either you believe in your heart that your home is really worth this much despite what the market has indicated OR you’ve left some room for negotiating. Either way, this strategy will cost you both in terms of time on the market and ultimate price received.

3. Priced Correctly at Market Value
Some sellers understand that real estate is part of the system of supply and demand and will carefully and realistically price their homes based on a thorough analysis of other homes on the market. These competitively priced homes will sell within a reasonable time-frame and very close to their asking price.

4. Priced Below Fair Market Value
Some sellers are motivated by a quick sale. These homes attract multiple offers and sell fast, usually within a few days, at or above the low asking price. Make sure your agent is acting in your best interest with this strategy!

Be sure to request your FREE bonus report entitled “How To Sell Your Home Fast For Top Dollar” when you order your no-obligation detailed Phoenix home evaluation. Save yourself the $410 appraisal fee and avoid having to speak with anyone!

Filed Under: Real Estate Tips Tagged With: ,

Buying New Home Build in Phoenix

August 10, 2012 By

New homes offer innovative use of space and style, greater energy efficiency, a choice of options and upgrades, and of course everything is new and modern. Existing (resale) homes on average are less expensive, often tend to be in established neighborhoods with mature landscaping and have already settled in terms of creaks and cracks. As you can see, there are advantages to both. Most buyers consider both new and existing homes before they decide to purchase. Should you be thinking about buying a new build in the Phoenix area, here are 10 tips to save you time and money before you visit your first model home:

❶ Get in Touch with Me
Before you visit your first model home in Phoenix, sit down with a realtor and do your homework. You’ll want to be prepared so that you can determine a comfortable price range for your new home. If you own a home, you’ll first need to know the net proceeds from its sale in order to determine how much cash you’ll have to work with. Don’t simply estimate this: carefully calculate all selling costs. You will also need to qualify your income if the sale proceeds are not enough to cover the price of your next home. Determine the size of your down payment, then let me put you in contact with a Phoenix lender to work out a monthly payment so you can determine the right home price range.

❷ Seller’s Agents vs Buyer’s Agents
Here’s a good point to remember. The sales agent in the model home represents the builder, not you! They are known as seller’s agents. As a buyer you can work with a buyer’s agent (like me) at no cost. It’s my business to best represent your needs by being knowledgeable about the Phoenix home construction process, builder warranties, financing incentives, differences in pricing, quality and even lot selection so that you get the best value for your money.

❸ A Builder For All Reasons
Like all tradesmen, builders vary in their fields of expertise. For example, there are builders who specialize in craftsmanship while some are known for their innovative use of space and others who offer below-market financing. Determine your own needs and preferences then shop around (or ask me) for a builder that will best address your requirements.

❹ Get the Facts About Your Builder
Before making a final decision to build or buy in Phoenix, it is wise to check out the reputation of the builder. Get “spec sheets” on home features covering everything from floor plans to energy efficiency, including lot availability and expected delivery time of your home.

❺ Check Out the Neighborhood
– Learn as much as you can about the community
– Discover what amenities it has to offer
– Find out from local land-use officials what else is planned or could be constructed in the area
– Review the rules for the homeowner’s association (HOA)
– Think of how you will commute to work

❻ Choosing Options and Upgrades
The less expensive the base price of the house is, the more options and upgrades you can add without fear of overpricing it for the neighborhood. Options are items the builder installs during construction, such as adding more usable room space. These features can add the most to the resale value of your home. Upgrading means selecting a quality above “builder standard” such as carpeting, tile, kitchen fixtures and appliances. Be sure to take advantage of Phoenix builder incentives that offer free upgrades or credit off the sales price. Remember you can add items like landscaping later and sometimes for less money.

❼ Negotiations
Often buyers don’t realize that there may be room for negotiating price, upgrades or options. For example, you have some scope for negotiating with the builder if they have a fully completed home but haven’t sold it yet. Also some “premium lots” are priced higher and are typically saved to be sold last. Keep in mind that usually all lots cost the builder the same, so be sure to inquire about lot pricing. Builders may offer discounts or special financing to help close a sale.

❽ Be Sure the Contract Works in Your Favor
When spelling out the particulars of a purchase agreement with your home builder, ensure you protect yourself by having safeguards written into the contract, such as:
– placing your deposit in escrow
– detailing all your upgrades
– allowing you access to the construction site to check on progress
– 30-day advanced notice of the closing date
– explanation of what the fine print means in the warranties from the builder and manufacturer

❾ Financing – What’s Best for You?
Some builders, especially in high-volume communities that place large numbers of loans, can offer special financing packages. However, because Phoenix home loan lending is highly competitive, you have many financing choices other than those being offered by the builder. Shop around for everything from interest rates to lender fees. Appraisals, inspections and closing fees can vary as well.

❿ Just Because it’s New… Doesn’t Mean it’s Perfect
Yes it’s new and typically it’s built with modern materials that are durable, low maintenance, stronger, quieter and safer. But because nothing is perfect, even if it’s new, consider hiring a licensed home inspector. Then create a builder “punch list”, from what you’ve learned to address any problems before closing. Many Phoenix home buyers use a real estate agent to help them negotiate the best price and terms with the builder.

Here’s a fact that you may not be aware of. Some builders have newly-constructed homes available for immediate delivery. Usually these homes are ready to move into within 30 days. Immediate delivery homes may be more desirable because builders offer financing incentives or free options. This may be done in place of reducing prices to appeal to buyers purchasing later in the construction phase. A quick delivery home is an advantageous way to purchase a home if you need to move in soon.

Filed Under: Real Estate Tips Tagged With: ,
Andrew Robb - RE/MAX Fine Properties, 21020 N Pima Rd, Scottsdale AZ 85255