Knowledge is Power!

KNOW THE NEIGHBORHOOD It may look like a great property, but the power plant across the street may have a lot to do with re-sale ability and desirability. The proposed metro rail, the flight approach, traffic patterns, and parking restrictions are yet other things to be informed of as a buyer. Proximity to chemical plants, parking lots, playgrounds and proposed commercial sites are just things that need to be brought to a buyers' attention.

Knowledge is power and the more information an agent has to give a buyer, the more informed and confident a buyer can be about making a decision. I am certainly not suggesting one discount certain properties and eliminate them, but simply one deserves to be informed.

If a property is located adjacent to where a restaurant parking lot is proposed, a buyer needs to know that. If a street is soon to be widened and 15 feet of the front lawn will be dedicated to the Department of Transportation or the city, making this property's front door 15 feet closer to the street, a buyer is entitled to know that too. If such information will influence a buyer to what price he/she will pay or as to whether or not he/she still wants to purchase the property, then that buyer certainly has the right to the information.

I have sold properties next to freeways, on major streets, next to commercial buildings and across the street from train tracks, but my clients have always been well informed and paid appropriate prices based on market value. My advice to buyers and sellers is: be sure to be represented by a very well informed real estate agent who relies heavily on his or her reputation for repeat business and referrals.

Beware of an agent that either is uninformed or simply is so short sighted he/she will sacrifice honesty as an alternative to making a quick sale that will simply come to haunt him/her later.

HOW CAN SELLERS MAINTAIN A POSITION OF STRENGTH?

If you have been following the Southern California real estate market carefully over the past 12 months, you have no doubt noticed an interesting phenomena about market activity. You've probably noticed a mix of sale signs turning to sold signs almost immediately or other instances of a sale sign standing not months but years in front of the same home.

Strategy can sometimes make the difference. Believe it or not, homes in today's market selling in the first four weeks stand the best chance of selling at top price. A seller who positions himself or herself with a burst of activity in the very beginning can play off all that energy all the way to escrow. Keep in mind, those buyers that have been looking, studying the market, frequenting open houses and making offers are your most likely candidates.

How long does it take to walk this serious nucleus of clientele through a property? A serious buyer represented by an agent can almost be assured a phone call the day a new listing hits the computer. Even if that client is out of town, involved in a trial, away on a business obligation, or down with illness, it won't be more than two weeks for a new listing to be thoroughly exposed to the existing clientele. The great burst of activity sharply decreases after the first 30 days. Thereafter, potential buyers appear, generally in the early looking stages, not yet fully educated to the market.

There are also clients coming into the market all the time, changing from another location or changing from the original price range they had hoped not to exceed.

A seller with this knowledge can make several choices and maintain a position of strength. They are as follows:

1. Choose a real estate professional who has a good following of fellow agents and clients.
2. Check the recent comparable sales and stay within the price range of your best comps.
3. Factor into your price location adjustments, floor plan adjustments, lot size and square footage adjustment, etc.
4. Prepare your home for sale. Make it super appealing to the senses: sight, sound and smell. Paint your home and landscape, if necessary. Be sure it shows bright and cheerful, smells pleasant and does not appear as a money pit just waiting to happen.
5. Choose an agent with a likable personality and one that has a credible reputation for pricing property correctly and selling it close to list price.
6. Keep in mind a new listing is only new once and that's when people are looking to offer whatever it is they need to if the house is exactly what they want. The shoe goes quickly to the other foot at which time a typical buyer asks such questions: How long has it been on the market? When is the owner planning to reduce the price? What will the owner really take, and how motivated is the owner to sell?
7. Don't fall into the trap of an agent who seems overly agreeable. Chances are if the agent can not demonstrate his/her strength in guiding you in the beginning, he or she may be better in bringing a buyer to the table, negotiating the sale, and keeping an escrow tight to the day of closing. Your strength as a seller is determined as you set the stage from the beginning. Preconditioning your home, selecting the proper price, choosing the right real estate professional, and keeping a great accommodating attitude are the four most important elements to maintaining a strong selling position.

TYPICAL QUESTIONS TO EXPECT WHEN SELLING YOUR HOME: Back in the good old days, buyers used to be most concerned about how many bedrooms, how many bathrooms, location and asking price.

Not that these questions are not just as important, but a new set of questions have evolved that seem to even supersede these. This barrage of new questions, most frequently asked by open house lookers and ad callers, taken at face value, seem to show genuine concern and curiosity for the destiny of the seller. But is this truly the case?

"Has the seller found another home? Have they already closed escrow? Are they being transferred? How soon do they have to be there? Do they have to sell? What was the original asking price? When was the price last reduced? When was the property first listed?"

How caring of a buyer to ask all these questions; but on the other hand, is there an ulterior motive to all these questions? How about just cutting to the chase. Buyers want to know just one thing these days: What's the chance of getting a deal? That's the bottom line. If buyers can't feel good about getting a bargain, they'll just move on to the next property.

I recently had a seller tell me he was in no rush and really didn't have to sell. Whether that's the case or not, there is no statement that could be more of a turn off to a buyer.

Buyers come to us these days with a wish list of amenities and prefacing the list with so many properties to choose from, a prerequisite instruction to show them only properties owned by highly motivated sellers. There's no getting around it. Be prepared for buyers and their reactions, and be ready to be competitive if you plan to sell in today's market. Houses are selling and I've got the proof.

QUESTIONS TO ASK AN AGENT BEFORE LISTING YOUR HOME: When you list your home with a real estate agent you are making a commitment to pay a commission for services rendered and to allow a period of time for the agent to perform. Typically there is less apprehension when either the agent has come highly recommended or the agent is well known for delivering results based on a proven track record for performance in the immediate area. Never the less, you the consumer are entitled to a marketing plan and an introduction to what you expect from the agent and what the agent will expect from you.

1. Ask the agent how many properties he/she has sold in the past 12 months, and how many of those sales were in this area?
2. Ask what special techniques does he/she use to attract qualified buyers?
3. Ask about the properties he/she sold and what was the average sales price expressed in a percentage relative to the listed price?
4. What was the average period of time his/her listings remained on the market prior to entering escrow?
5. Ask for names and phone numbers of clients he/she recently represented in the area. Call several for a recommendation?
6. Ask the agent how many years of experience he/she has selling property in the area; and what special designations he/she has earned? 7. Ask the agent about his/her support staff, ask about their specific job descriptions?
8. Ask what kind of special marketing procedures the agent plans to implement?
9. Ask why specifically does he/she believe he/she can get a better price and in a shorter period of time compared to the leading competitor?
10. Ask what does he/she believe is the greatest single reason for his/her success, that may separate him/her from the others?
11. Ask the agent why should we choose you?

Asking these same questions of more than one agent will assist you in evaluating his/her skills relative to one another. Find out what your agent is willing to commit to and what can be done if he/she does not live up to that commitment. Remember, a good agent generally will under commit and over deliver. This can be verified by checking with an agent's references in advance.

HOW TO GET THE MOST FROM YOUR REAL ESTATE AGENT: Selecting a real estate agent to represent you is no longer a "pick at random" event. You are looking at a very serious encounter, whether buying or selling, and the individual you choose can make a big difference to your future.

There are many things to consider such as knowledge, track record, business ethics and chemistry between you and the agent. You are about to engage in one of the most important transactions in your lifetime. To get the most out of your agent, he/she needs to feel inspired and a great deal of that inspiration comes from the client who needs only to stand back and give the agent encouragement, and an occasional acknowledgment to let him/her know you appreciate his/her hard work.

The agent is performing day-to-day activities with a goal of selling your home or selling a home to you. All too often, agents spend dozens of unpaid hours to discover that the seller is totally unrealistic, or that the buyer has unobtainable expectations. This, of course, may not be the client's fault but, in fact, the agent's fault for not properly assessing the situation up front.

A good agent will work hard to achieve a victory for his/her client. To instill that energy and enthusiasm, the agent must be able to envision his/her compensation for his/her efforts and performance.

Communication is very important. People are often embarrassed to admit to an agent that they cannot afford a price, or that their interest in selling is little to none. I encourage you to be up front with your agent, and in return ask your agent if he or she is comfortable working with you as the conditions exist.

The agent needs your sign of approval and your encouragement. When your agent feels you have let him/her into your life, he/she will perform impeccably. Owners who restrict the listing period unreasonably, drastically overprice their property, negotiate down the rate of commission and repeatedly make comments implying a low motivation to selling their property, will certainly rob the agent of his/her energy, drive and motivation.

Bottom line, your agent will work hard for you and will probably go beyond the call of duty if you are open to his or her knowledge, recommendations, and expertise of today's market.

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