Dean Graziosi | Dean Graziosi Real Estate | Dean Graziosi Investment

Knowing what the real estate market has done in the past is an important piece of knowledge that buyers and sellers should be aware of. Being aware of how the market has behaved in certain neighborhoods and locations where you are looking at properties can be an indicator of what to expect once the home has been purchased. Past market trends can and do have an effect on the current value of a property and how the value of the property can change in the future. Market trends have been in a constant state of change lately and knowing what the past trends were will better prepare you for the future.

Looking at how the area you’re interested in has changed in past three or four months will show what to expect in the future. Banks and lenders typically use this same information when determining comparable prices of homes recently sold in the area. This is an important tool to use while you are looking at properties. Once you find a property that you are interested in, you should also look at what the past property trends have been. This will prepare you for what to expect when the market becomes more stable. These numbers will show if the neighborhood you’re looking at has a high turnover rate, meaning that people purchase homes but do not tend to stay.

You will also want to look at the rate of foreclosures in the neighborhood, this can affect the purchase price of your home and can also affect the selling price should you decide to sell later. Experts suggest that when you look at past trends you go as far back as three years. This will tell you how many homes were sold and what the average sale price was. It also allows you to notice any trends either up or down in property values. Doing some research into past trends may seem like a lot of extra work, but it can help you make a better informed decision when purchasing a home.

Every neighborhood will have property sales throughout the years, some are for the typical reasons of families relocating to a larger home, downsizing or a change in their living situations. But researching the trends will show you if there is an abnormally large amount of activity in the area. Market trends are changing all the time, and doing some research now can help you in the long run. Finding a neighborhood you like is critical to being happy in the home you buy; but doing the proper research before purchasing that home will ensure that you are getting the most for your money and you will not be likely to lose more down the line.

Relocating to a new city can be either scary or exciting, depending on how you look at it. The best way to keep a positive attitude is to have a plan. Here are a few ideas to think about before you make the move.

Leaving the Old City

The truth is that you may not be able to sell your old home before you leave the area. That does not mean you cannot try. Get the best real estate agent you can find and set him to work. When you get a buyer, make arrangements to set the move-out date as close to your relocation date as possible. Otherwise, you will either have to stay in temporary housing while you wait for your new home, or you may have to make two mortgage payments simultaneously.

If you do not sell the home before it is time to leave, and there are no immediate prospects for doing so, you might want to consider renting it. This is an especially attractive proposition if you will have trouble making two house payments. Before you go, take the time to interview leasing agents to manage your property while you are away.

Buying in the New City

If at all possible, make a trip to the new city early in the process. You can take a week, or even just a long weekend. Choose a buyer’s agent first and foremost. Make sure it is someone who is willing to work with a long distance buyer. Ask questions to see what the agent can do for you while you are still in your old city.

Get to know your buyer’s agent while you are visiting the new city. Spend time, preferably in relaxed settings like going out for lunch or relaxing at a park. This will give you time to express your wants and needs for home buying. The real estate agent will not have time to lounge around with you all day, but if he will give you a bit of quality time to get to know you, the process will go much smoother.

After you have given the buyer’s agent your requirements and wants for a home, he may want to take you to see a few. However, the purchase does not have to be made in this short trip. If a house or houses are decided on, the agent can work out the negotiations while you are at home in your old city. He will confer with you about the details so that you get the deal you want.

If a home has not been chosen, set your buyer’s agent the task of looking for a home for you. Remind him of all the ideas you have discussed. Have him look at houses for you and take as many pictures as possible. If you see the pictures from a particular house and you like what you see, you can proceed from there. You might want to go look at the house in person. The agent can also set up the inspections and appraisal for you.

When you have completed the sale of your old home and the purchase of your new one, you can settle down comfortably in your new city. The most important thing to remember is to avoid becoming overwhelmed. Take one step at a time and enjoy the relocation process.

The easiest way in the world to choose a real estate agent is to work with the first one you meet or hear about. On the other hand, the easiest way is probably not the best way when it comes to a job as important as selling your home. It is a good idea to talk to several agents, and even to interview them. Here are a few interview questions you can ask.

1. How many times have you worked as a seller’s agent?

Of course, every realtor has to start somewhere, but do you really want that first sale to be yours? When you compare agents, do not forget to consider the amount of experience they have.

2. How many houses have you sold in all?

Just being in the business is no guarantee of skill at selling houses. You want to make sure that they have not only worked as a seller’s agent, but they have indeed been successful in selling homes.

3. How many homes have you sold in the last year?

Recent success also counts because it means that the real estate agent knows how to work in the current state of the economy. It means that he has not let his skills get rusty. It means also that he should be up to date on all the laws and regulations concerning home sales.

4. How long has the average home you have sold in the last year been on the market from listing to closing date?

In a buyer’s market, the number of days is likely to be high. However, getting that number is important at any time because you can use it to compare different realtors. With this bit of information, you can sort out the real estate agents who work diligently, quickly and effectively from those who do not put in the same effort.

5. What is the average of your sales ratios, comparing list price to selling price.

A realtor who tends to get a high percentage of sales near the list price is one who will probably be good at making deals for you. This type of realtor knows his business and uses his superior abilities to get you the best price.

6. Do you employ a personal assistant to help you, and if so, what does the assistant do?

This is a pertinent question for you to find out because you need to know whether the realtor will have plenty of time to work on the most important aspects of selling your home. At the same time, you will want to make sure that the assistant is not doing work he is not qualified to do.

7. If I am not satisfied, what will happen?

Some real estate agents will refuse to answer this question directly. They will just say something like, “Oh, you will be satisfied, no doubt about it!” Look for a realtor that explains the options you will have in case you are not happy with him, including breaking the contract. This type of realtor is honest and realistic, two good qualities to look for in a real estate agent.

Real estate agents are plentiful, but the ones who can sell your house, sell it as quickly as possible, and sell it for a price you can live with, are not as easy to find. Do not just go with the first realtor you meet, but interview several before you decide who will help you sell your home.

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.