Dean Graziosi | Dean Graziosi Real Estate | Dean Graziosi Investment

A lot of prospective home owners are concerned about listing their home in today’s unstable realty market.  Since the market has gone from a seller’s market to a buyer’s market with more and more homes being listed every day, sellers are worrying that they will not get what they feel their home is really worth.  In past years sellers would have no worries when it came to listing their homes, often times available homes that were in great shape would set off bidding wars once they hit the market.  Unfortunately in the world we live in today, sellers are faced with the decision to list or wait until the market picks up again.  But if you do choose to list your home there are a few ways that you can make sure that it gets all of the attention from agents and buyers that it deserves.

The first thing you will want to do is make the exterior appealing to prospective buyers.  If any of the shrubbery is overgrown now is the time to trim it down and make it look appealing.  If your house paint needs some updating that should also be taken care of before you have it listed.  The first thing that your real estate agent will want to do is take pictures, since we are a visual society many of our first impressions are determined with a quick glance at pictures that your agent has listed online.  When preparing the pictures of your home, it is important that they feature up close shots of the entire exterior of the home including the backyard and garage.  The more pictures that you have available for buyers have to look at the more interested they will be in viewing your home in person.

Along with exterior pictures your agent will also want interior pictures as well.  When preparing your home for these photographs, it is important that you remove any clutter from the rooms that will photographed.  You will also want to open any blinds or drapes to let natural light in.  If you have rooms that are a bit darker you will want to turn on any lights that will make the room look more appealing and less like a dungeon.  It is important to focus your pictures on special details that you may have such as, new cabinets, granite counter tops, wood floors or a fireplace. 

Buyers do most of their research online before actually contacting an agent to schedule a viewing.  Ask your agent to include a virtual tour of your property in your selling arrangement.  A well designed virtual tour will grab the buyer’s interest and make them feel as if they are being led from room to room.  The better your photos and virtual tour are the more interested prospective buyers will be to view your home in person.

In addition to the photos and virtual tour that your agent will make available online, you should also ask your agent to use print advertising along with online advertising.  Many people still read newspapers and your home should be listed in the major newspapers in your area.  There is no such thing as too much advertising when you’re trying to sell your home.  Sellers should utilize all of the resources at their disposal when trying to sell their home, the more people you reach the better your chances of getting what you’re asking for.

Many real estate experts agree that in today’s market overpricing your home can be a very big mistake.  It is better to list your home at fair market value, than overprice it in order to leave room to negotiate or just to test the market.  When the market was in better condition these tactics may have worked, but in todays flooded market, buyers have more options available and do not need to waste time viewing listings that they know are overpriced.  By listing your home over fair market value you may cause your home to sit for months without even getting an offer, the longer buyers see your house sitting on listing sites, the more they may begin to wonder if something is wrong with the property.

Other problems that may occur from overpricing your home include no prospective buyers wishing to view your home.  Offering an overpriced home to buyers who have become familiar with the appropriate values of homes in your area will know that your home is priced too high and will steer clear.  By overpricing your home, you may also inadvertently be helping others to sell.  Buyer who see your asking price and the price of others in the neighborhood that are similar to yours, will more than likely make an offer on the lower priced home rather than yours.  So, in effect, you are actually helping your neighbors sell their home instead of getting your own home to sell.

If you are lucky enough to get the attention of a buyer and they actually agree to pay what you’re asking the deal may fall apart when there is an appraisal done on the property.  More than likely, your home is not going to appraise for the higher price you have it listed under.  Lenders will not approve a loan for more than what the home is actually worth.  The longer your home sits on the market, the harder prospective buyers will try to negotiate.  This will give buyers the control of the negotiating process and may cost you by having you make more concessions in order to close the deal.  What seemed like a good idea in the beginning may ultimately end up costing you any extra profit that you may have seen if your home sold quicker.

By pricing your home too high you are also cutting out prospective buyers who could actually afford the true market value of your home.  Listing your home too high may take it out of the price range of many buyers who are looking in a specific price range.  This will not only limit the amount of buyers who look at your home, but buyers who are familiar with listings in the range of your asking price are familiar with what to expect for the amount they will leave unimpressed with your home and search for one that is better suited to the price range you are asking.

In our current economic situation, many people are finding it difficult to come up with the large down payments that many lenders are requiring.  This trend is leading many prospective home buyers to look into the option of renting to own.  This option is becoming more popular among first time home buyers, who are having a difficult time receiving preapproval from lending agencies or can’t come up with a down payment.

In order for a rent to own option to be successful, a buyer must first find a seller who is open to this type of arrangement.  Many sellers are warming to this option; it offers them a profitable alternative to letting their house sit empty for months waiting for a buyer or renter to come along.  Once you have found a seller who will work with you, the next step is negotiating the terms of the deal.

When negotiating your deal you will want to find out if the seller will require any type of down payment and if all of the monthly payment will go towards the purchase price of the home.  Some sellers may require a smaller down payment just to insure that you are serious about the deal.  Others may not require any, if you agree to pay the first and last month’s payment.  You will also want to know if all of your monthly payment will be applied to the agreed on sale price of the home.  Some owners may choose to only apply a percentage of each month’s rent while others will apply the full amount.  In the long run, you will want to negotiate that all of your monthly payment be applied to the balance. 

Working with an agent who has experience in these types of sales is important.  They will help you spot a good deal and steer you away from sellers who are negotiating a one-sided deal.  Once you have found a seller who you feel comfortable dealing with, you will want to seek the advice of an attorney who is experienced in these types of contracts.  This will insure that the contract offered is a fair one that benefits you as much as it does the seller.

Having the counsel of professionals when negotiating a rent to own deal is extremely important, what you may feel is a good deal may not appear so to them.  They will look out for your interests and insure that you are not throwing money away on a bad deal.  First time home buyers may walk away with a better deal when this route is taken than if they would have gone the traditional route and sought funding from a lender.  For other prospective buyers this choice offers them the chance to become homeowners without having to meet all of the guidelines set forth by lenders.  Whether this is the right choice for you is something that you will have to think about and decide on your own.

Times are tough all over. People who are selling their homes want to save money just like everyone else. It is common for thrifty people to consider selling their homes without a Realtor. That way they can save themselves the commission and make more money on their home sale. It all sounds so simple. Yet the fact is that there are many problems in trying to take the For Sale By Owner route.

Poor Advertising Opportunities

Realtors have the advantage of being able to list your home on the most advantageous advertising system for real estate of all – the Multiple Listing Service (MLS). FSBO sellers cannot use the MLS, and so they cut themselves off from a very large majority of the people who are looking for a home. They are forced to take out advertisements online or in newspapers or simply put up a sign in the yard. These methods are usually much less effective.

Buyer’s Perception

When you are a FSBO seller, the buyer makes certain assumptions about you and about the sale. He automatically assumes that, since you are saving the cost of the Realtor’s commission, you can afford to drop the price below your asking price. He probably will not trust your evaluation of the home’s worth in any case because he knows you are not a trained professional. He may think that you are trying to hide defects in the home even if you are being totally honest. The buyer’s perception of you can damage your ability to sell your home.

Emotionalism

Buyers who are looking for their first home may be very emotional about the process. When you are selling your own home, you compound that emotionalism with your own strong feelings. If you are showing these buyers your home without a Realtor present to add a note of professionalism to the situation, the results can be very unpleasant. The worst thing is that if you upset the buyer you are not likely to sell your home.

Legal Requirements

There are many legal requirements in selling a home, no matter which state you live in. Realtors take large amounts of time and effort to learn how to cross all the t’s and dot all the i’s in meeting all the legal obligations necessary to sell a home. They will make sure all the inspections required are done on time and all the paperwork is filled out in full. If you are selling the home yourself, these tasks can be very intimidating, and in fact many people never get them completed correctly.

Some people may be suited to selling their homes for themselves. If you have experience in real estate, a cool head and a clear eye, you might be able to pull it off. For most people, the opposite is true. While they try to save money by eliminating their Realtor’s commission, they create more problems for themselves than they can handle. In the end, many FSBO sellers end up using a Realtor after all. It is not a sign of failure, but an acknowledgement that Realtors are best suited to selling houses.

Here is a list of the five best places you can buy hot real estate now. With the market currently a buyer’s market and sellers unable to move houses as much, this real estate list can help you choose a great place to live.

The first hot area to buy real estate is Austin, Texas. Why is this a hot real estate area?

Austin is a beautiful place to live. If you have lost your job you will be happy to know that Austin, Texas, had a 14.1% of job growth in the year 2010. You may want to apply ahead of time to find a job before moving. If you are into a tech career there are more then 2000 tech companies in the capital of Texas. The national USA average of unemployment is 9.8% whereas Austin, TX is 7.1%. When looking to buy a home the average median price is $122,921. If you currently own a home, sell it and you may already be ahead with the low cost of homes here. All of these benefits make Austin a great place to live!

Another one of the hot areas to buy real estate is Broomfield County, Colorado which is located between breathtaking Denver and Boulder. In this area you will find jobs galore including high tech jobs. In the last ten years jobs increased by 50%. Average median home price is $239, 000. Get skiing and hiking in Colorado now!

Looking for someplace warm to buy hot real estate? Check out Deerfield Beach, Florida. The median home price is only $89,400. Enjoy a home with a view of the beach. Imagine waking up every morning, grabbing a cup of coffee and relaxing by the beach.

If you are looking to retire and find a new piece of real estate check out Durham, North Carolina. The median home price is $174,900. Enjoy as many of the one hundred plus activities the Duke University has to offer seniors. You can also enjoy your golden years playing golf, seeing Broadway hit shows as well as concerts and stay young hiking.

On the opposite spectrum if you are looking for a hot piece of real estate to buy and raise your children check out Woodbury, Minnesota. In this area of Minnesota the schools are phenomenal. Plenty of jobs await at 3M and the state government. Enjoy the wonderful lakes for swimming, fishing and boating. Other fun activities include winter activities such as snowmobiling, snowshoeing, making snowmen with your kids, sledding, ice skating, etc. You and your family can hike, enjoy the grassy parks and biking. There is never a dull moment. Median home price in this hot real estate area is $245,000.

The fifth best place to buy a home is Madison, Wisconsin. You can choose to live in Madison or buy a hot piece of real estate rental. There is so much to do in Wisconsin’s capital including many sports, cultural events, affordable housing, one of the top rated colleges, shopping, variety of restaurants, four season activities and so much more. The average median home price is $199,900.

With a little research and help from a real estate agent you can find the best place to live for your current situation. Start living the dream now.

With Twitter, Myspace and numerous other social networking sites all the rage, and the economic downturn forcing creative marketing methods, it is just a matter of time before online real estate sites like TweetLister and Zillow become the norm.   

Take Zillow for example, this site is a one-stop shop for everything real estate.  This site boasts over 3 million real estate listings, and combines the success of Craigslist, Wikipedia and MySpace all into one.   Shopping for real estate online has become as easy as 1-2-3 and successful real estate investors are using it to their advantage.  Are you?

Another example of a site that really works for many people is Craigslist.  You can find properties for sale, rent, swap and more.  You can even search for people looking for homes with their “wanted” ads.  Keep in mind however, that because Craigslist is free, it is also widely used by scam artists so practicing due diligence is a must.  If you know how to use it wisely, you can find some great deals to make money right away.

If you are just starting out investing in real estate but have not yet purchased your first property, you should at the very least, take advantage of MySpace, Twitter, Facebook and every other online network marketing site out there.  Make friends, network with other investors and get the inside scoop from people already in the business.  The more contacts you make early in the game, the more opportunities you will have later on.