Gary White FlexIt Realty~Real Estate & Updates, Grand Rapids & West Michigan

Everyone that lists their home for sale wants to sell!  If they did not want to sell they would not put their home on the market, right?  I just heard something while attending a meeting that made me recognize again why some homes sell and others do not. 

I was talking with a friend when someone stopped and asked if I still liked real estate with the market being down.  I told him every industry has a slump but my clients need me more now than ever because of the marketing requirements to sell their homes.  His reply was good luck with that!  You'll spend a fortune advertising.  I told him, getting my clients properties in front of buyers was the only way for buyers to find it.  He then told me he is not advertising right now.  He was going to just wait for people to drive-by or find the listing on the MLS!

I thought to myself right then.....I did not want to share this with the other agent, WOW I'am glad I do not have my home listed with him!  OK, we have fewer buyers.  OK, we have more competition for the same buyer because of more homes on the market.  OK, you have to price your home more competitively to sell.

That does not mean that you can abandon marketing techniques to make sure your property is in front of as many buyers as possible.  People get lucky and do sell with minimal marketing effort, or do they?  Most property that hits the market and sells quickly is either priced lower than market expectations or has a great location or BOTH!

Much more effort has to go into marketing to sell homes right now that in the past few years.  In fact, it has not been 30+ years since we have seen a market like this one.  The marketing plan must be specific for the property, client and target buyers.  This is only a portion of the effort but this is starting place.  Will this guarantee a sale?  NO, but it will certainly attract buyers and you will have a better chance than polishing your yard sign waiting for someone to drive-by.

I hope this gives you a little insight that effort "still sells".  Lack of marketing effort will minimize your opportunity to find and attract buyers.

If you have any questions or comments drop me an email.

Sincerely,
Gary White
Associate Broker

Here is something that many sellers view only as another expense.  I recently sold a beautiful home built in 1925.  Obviously this home is not new.  Most buyers looking at a home in a historical or established area of any town understands homes of this age have flaws. 

As a selling agent my job is to protect my seller.  I had the sellers place a home warranty on the home that protects the seller from certain breakages and repairs with a minimal service fee for the repair call.  The warranty also covers the buyer for more repairs than the seller.  The warranty is one year from the date of purchase for the buyer.  Some of the key elements of coverage are the furnace, hot water heater, air conditioning unit, plumbing and electrical including wiring, roof, appliances, garbage disposer and more.  The warranty does not cover everything and each has slightly different coverages.  So read the coverages and look at the claim clause to see what you have to do to get a claim processed. 

This was a distinct advantage for my seller and a great feature for buyers for added protection to defray possible repair costs.  During my sale of the home, while under a purchase contract, the hot water heater sprang a leak.  The replacement cost paid by the sellers was $95.00 and the buyer received a new hot water heater.  I just had a new 60 gallon hot water heater installed in my personal residence and the bill was $838.00 (as the plumber told me, hey we are hauling the old one away!  Wow, I only wanted a hot water heater not stock in the company!)  So I was very impressed with the $95.00 cost for a replacement.

A home warranty can be a very important selling feature to a buyer.  If your home has a warranty and a similar home priced near your homes price does not have a warranty buyers are likely to look at your home first.

The cost is minimal, can be paid at close, yet have coverage while you are selling.  I ask all my sellers to consider a home warranty as part of the marketing package.  This is just one more way to entice buyers to your property first.

As a buyers agent I always ask the seller to provide a home warranty for my buyer clients.  I am Just adding a bit more insurance coverage should a normal home repair become needed during the first year.

So remember, look at the home warranty as a marketing tool, not an additional expense that you are giving away.  If a buyer buys because they came to your home first with a warranty you will never look at this tool as an expense again!

I hope this gives you a little insight into using as many marketing tools as possible to help you sell faster.

If you have any questions or comments please drop me an email.

Sincerely
Gary White
Associate Broker

Just in from the National Association of Realtors, housing market dipped 8.4% in March.  This was below Wall Streets estimates.  Who cares?  Sellers care!  The real issue is what the sellers of the homes that did not sell or find buyers feel, again!  This is based on existing home sales.  New construction is also off.  The truth is you have to do the marketing to attract what buyers are there.  If your home is not marketed to attract the existing buyers your home will linger on the market.

On Tuesday, the National Association of Realtors reported existing home sales for March fell sharply by 8.4%, to 6.12 million units. That was significantly below the Wall Street consensus estimate of a decline to 6.45 million units, down from February's 6.69 million. The drop was the largest since January 1989.  So people are asking if we have hit bottom yet.

The kneejerk reaction may be too pessimistic. Home sales had gained in four of the five prior months, and the Realtors group blamed the sharp March decline on the last gasp of Old Man Winter -- with a little help from the subprime mortgage debacle.  This seems to be logical to anticipate that spring will bring more buyers back to the market making everyone happier, especially sellers!

"It's too early to measure a significant impact from tighter lending standards, which should moderately dampen activity, but we're still looking for existing-home sales to gradually improve during the last half of 2007."  This is the concencous by most economists. 

So how important is marketing your home to buyers?  More important than ever.  The other key is having your property priced correctly to attract the buyers that are there.

Every region of the country is slightly different and has it's own unique market issues, Michigan is no exception.

I hope this quick update helps you in your selling and buying effort.

If you have any questions or comment drop me an email.

Sincerely,

Gary White
Associate Broker

Every seller wants to know the answer to this question!  The answer to the question is easier than you think.

For most of the professional real estate agents this is something they paid dearly to learn.  We all go to school, but most of us do it in a classroom.  Many sellers are finding in today's market selling strategy is being learned on the fly.

Well this is really not the case.  I have told you over and over that marketing sells.  That only tells you that you must get your home in front of buyers to attract them.  Seasoned professionals know the "hot" buttons that attract buyers.  You know too, except no one has ever pointed out the motivating factors to attract buyers.

I also tell my sellers, "I know who is going to buy your home, I just do not know their name".  That is a  true statement.  I do know who is the most likely buyer for your home.  How do I know this?  I have taken the time to learn the psychology of buyers and what attracts them.  Believe it or not a study was done on this subject by Stanford University.  The book was published and became the "bible" of advertising and marketing companies.  In fact, an advertising company bought the rights to the book and took it off the market so competitors could not use the same principles against them!

These principles are still being taught today but only a small percentage of real estate professionals practice this strategy.

Buyers and sellers are placed in categories, based on age, sex, visual and audio imaging.  For example, men are more visual, they see things and would rather look than read.  

Women on the other hand are more audio or listen and read, then look to verify the information.  Other factors included in the study identify work and social status.  For example "mover-uppers" are in an age group from 28 -36.  They usually drive higher priced cars and live in transition middle management neighborhoods.  The next is the "wannabes" these are buyers that will have high end cars, more expensive homes and live in the social status neighborhoods.  They have not quite made it yet but they wannabe one of them.

The list goes on with each category outlined with the motivating factors to attract these groups to, do or buy.

So now do you think that the top producers that sell more than anyone else do this by accident?  No, they have learned how to motivate buyer into action.  Your goal in selling your home is to either hire and find out how to motivate buyers into action to purchase your home.  Using a professional can save you money with a higher offer, less time on the market and reduced stress.  Us full time career Real Estate professionals have paid our dues and learned our craft.  You are not paying for just selling your home.  You are paying for our knowledge and experience.  So if we cost the same, why not use the best you can find!  The old saying is; you would not use a brain surgeon to fix your sink. 

The truth is, attracting buyers is more important to your sale happening faster than ever before.  The market has fewer buyers with more homes to choose from.  Getting buyer to look at your home first will make the difference in a faster sale.

I hope this helps you know there actually is a strategy to attract buyers and bring them to act.  Understanding these motivating factors is almost a lost art taught by a few to even fewer.

Drop me an email if you have any questions or comments.

Sincerely,

Gary White
Associate Broker

Buyers have some very identifiable patterns just like sellers.  Recognizing these patterns can help both the buyer and seller in the transaction process. 

Buyers start with the goal of buying first and then........

We're buying a house!  What kind of house do I want?  How long are we going to live at this house?  Hmmm.....You see, if I'm going to buy a house that I'm only going to live in for a few years I have a different thought process than if I'm going to buy my dream home. 

 For me the question is:  dream home vs just a home

If I were looking at buying just a home until my financial and/or other circumstances allow me to buy my dream home, I would review things a bit different.  I would look for stability of neighborhood and comfort and quality of the home.  Those three are always a must no matter what kind of home I'm looking for.  Layout would be next and then the question of how much I have to invest in updates, etc. to make it "home" and would I get my money back and/or make money on the sale of the home in the future.

My dream home on the other hand, I would be more particular since this will be "THE" home.  Neighborhood, price, quality and amenities, are my major concerns and I'm looking for these charactoristics above all.  Once I found my dream home that meets all my criteria then the excitement begins....

I have learned a home isn't a home until the last signature is signed at the close.  So the real excitement and memories begin then.

So most buyers buy on emotions for their dream home and use their heads for a transition home.  This should give you a very important clue when buying and selling.  Of course some buyers always buy on emotion, so the visual candy of color, layout and eye appeal will get these buyers every time.

I hope this has given you a little insight into buyers excitement that is generated during the buying process.

If you have an questions or comments drop me an email.

Sincerely,
Gary White
Associate Broker

I have had this question asked many times during the listing of a home for sale.  Mostly from sellers that have lived in a home more than 20 years.  How will the new buyers treat my home.  We all have attachments to people, places and things.  The truth is, your memories created during your occupancy of a home go with you.

Nothing is left behind, although I did leave a pet in the backyard once.  My dog had lived a full 14 years and ended up in our backyard with flowers and a sunny spot for eternal rest.  We did not think about our dog until after we had moved!  My wife called and mentioned that Jiggles was in the backyard.  We had put him in a custom built container so he could be moved, then forgot.  The new owners were gracious about Jiggles, but also said he would be fine.  The truth is, they did not want to have anything to do with our dead pet.  I understood and the home and property was not mine anymore so I could not do anything about it.

We had all the memories and good times that were created by us during our ownership of the property.  You create memories in every home you own.  These memories will never belong to anyone else.  New owners create new memories for themselves as well.

Even though sentimental feelings for homes are developed they do not add any value for the new buyer and your resale price of the home will not increase.  Before you get ready to sell this is one of the the crossroads we all face, should we sell.  The reason for selling and moving vary by family, situation and economic desires.  So the next time you think of all the good times you had in a home remember, those are your memories and they move with you!

My childhood home always held a special spot until I drove by it not to long ago.  My mind had a picture of what it was and my eyes saw the reality of what it is, they were not the same.  I am keeping my memory of what it was when I was a kid, thank you.

Selling your home is a very emotional issue.  Now you can take one part of the emotional attachment with you as memories.  Create new memories at your new home just like the buyers will do in your home.  You will have enough issues pulling at you during the selling process, this is one less.

Enjoy the selling process as a new adventure and create another memory.

I hope this little tidbit has helped.  If you have any questions or comments just drop me a email.

Sincerely,
Gary White
Associate Broker

This is simple but not always easy in a buyers market.

first were you asked to do the repair as part of the purchase agreement.  If the answer is yes and you accepted the purchase agreement you must do the repairs to meet the purchase agreement.  Or the buyer can walk.

If the repair request was asked as part of an addendum after inspections you have a choice.  Accept the request and do them or counter the request and say you will not do the repairs.  The response must be analyzed prior to sending the counter offer back to the buyer.  Will the buyer walk and you lose a sale for a few hundred or thousand dollars?  Are you trying to wring every cent possible out of the sale?  Is what the buyers asking reasonable and your were going to do the same repair if you stayed?  If you grant this request can you get the buyer to relinquish some other repair request.  How bad do you want to sell?  Is this your only offer?

So,  I said this is simple, is it?

Here is a little saying that has a big amount of truth hidden.  Sometimes your first offer is your best offer, and your only offer!     

If the repair request is unrealistic the buyer knows it before they made the request and is working from a position that if they asked all you can say is no.  Sometimes people say yes!  Your agent, if you are represented, should be able to help you fend off these types of requests.  I recently had a buyer ask for my seller to contribute to a new roof.  The roof was not new but had 10 years of life in it yet and was not leaking or damaged.  The buyer simply wanted a new roof.  We said no, the current roof was serviceable and not in need of repair.  The buyer said, OK, just thought I would ask!  My seller about had a stroke because the home was priced below what he had paid for the home 4 years ago and the buyer wanted more!  We closed today and the sale went smoothly after some give and take issues were resolved.  This is a business transaction.  To keep the sale of your home strictly business is very difficult for you because it is personal.  But it is business.  Keep cool, analyze the situation and react with a well throughout response and you will be successful in selling and keep unrealistic repair requests in perspective.

I hope this overview has helped you.

Drop me an email with any questions or comments.

Sincerely,
Gary White
Associate Broker

You are not alone wondering if you should try to continue to sell your home.  Homes are selling.  Your homes marketing plan must be reviewed on a regular basis to make sure you are still priced in the market.  Some area prices have fluctuated more than others.  Rural areas have fewer buyers based on population.  So as the number of new listings hit the spring selling market you will have more competition for the same buyer.  This also means that new listings hitting the market have compared themselves to your home if you are in the same price range and offer similar features.

Right now this market requires agents and sellers to keep a very close eye on competition.  This also means that you must know the competition's strength and weaknesses.  For example if the price has dropped drastically below your listing price and you know a job transfer of divorce is taking place take advantage of the showings generated by their lower selling price.  This is done by scheduling open houses at the same time co-ordinating with the other agent builds traffic to both homes.  Another review of your sell price should be done to see if your are still where you should be.  Remember a home listed for $119,000 versus one listed for $121,000 and the buyer puts in a search for $120,000 maximum price, the buyer never sees the home listed for $121,000.  So a few thousand dollars can make a big difference in buyer traffic.  So pricing strategy can be the difference between a fast sale and no sale!

Marketing to make sure your target buyers find you is also very important.  Since you have fewer buyers in rural areas it is very important to make sure all of them know your property is for sale.

Another way is to re-list your property with all the adjustments made before you re-list.  This gives you access to buyers that never seen your home before.  Marketing is the key, using all the tools to maximize your properties exposure is the only way to reach the buyers.

Keep in touch with the market and use all the options to exposure your property to the buyers or your home will sit like a big rock in the field, un-noticed.

I hope this little overview lets you know your home can sell with the right emphasis placed on your listing.

Send me an email with any questions or comments.

Sincerely,
Gary White
Associate Broker

This is really a personal issue for every buyer.  I can tell you, if you only look a two you better be sure you know what is available in the market.  The next thought is if you only look a a couple of homes or properties you better be in love with your selection.

A couple days ago I took a client looking at income property, to 6 properties.  This was after we had reviewed 30 on paper.  They did a drive-by on 15 properties and we narrowed down our final views to 6.  We had identified the area, the square footage, number of bedrooms, rents we expected from tenants and purchase price.  We had done a proforma so we also knew what our anticipated debt service should be.  I had taken the time with the buyers, even though they were first time investors, they felt very prepared and seasoned to make a decision.

What we found is typical in residential and commercial property purchases.  Within a given price range the quality and maintenance levels of each property did not match the sell price.  We finally selected a property that had been very well maintained, offered the top end of the rent scale with a lower purchase price.

Residential purchases are much the same way.  You can look at 6 properties and find an array of floor plans, maintenance and landscape features within a given price range.  We found properties that should not have been priced as high, some priced lower than the market while others were just right.  You will find that knowing what you want, reviewing what is available within a given price range  and market area will be very educating.

Your decision should not be based on quantity viewed but on quality viewed within a price range.  I find that doing the paper tour first helps identify your likes and dislikes.  Doing the drive-by for location and finally narrowing to 5 or 6 choices to actually visit really gives you a solid feel for the market.  This saves you lots of time that would have been wasted seeing property you would never have been interested in for one reason or another.  Only set appointments for homes or properties that you have a real interest in seeing and possibly buying.

I hope this gives you a little more insight into the search process.  Knowing your market, seeing only the properties you are really interested in and doing a "paper" tour first will help you identify your interests.  Then do the drive-by for location, commute to work, shopping and schools along with visual curb appeal.  Then you are armed with market and location knowledge for your selection process.

If you have any questions or comments drop me an email.

Sincerely,

Gary White
Associate Broker

Education is the key to maintaining a proper attitude to the real estate market.  Many sellers tell me they do not understand why their home has not sold.  To me the issue is always marketing and price.  I discuss the market everyday with buyers and sellers.  Most are not my clients but are possible future clients.  One recently said my home has set like a big rock without any activity.  Again, not my client but a referral by another client.  This is a highly educated seller.  Yet understanding the forces of the market is a concept that is hard to grasp for most sellers.  When it is a sellers market...few homes and many buyers the seller does not care much about the market! 

When the shoe is on the other foot and the buyer's are the ones trying to understand why this missed the purchase of the perfect home by a few thousand dollars or someone out bid them.

In a buyer's market the sellers are the ones trying to figure out what to do.  We are in the middle of a buyers market with little change foreseen in the next 18 - 24 months according to the experts.

So when I say marketing and price are the main issues to success this example is based on like properties with similar amenities so exposure and price are the issues.

Most of the marketing efforts are focused on a general shot-gun approach that blasts off with a big bang and only reaches a short distance with little impact before falling short of a sale.  Real marketing identifies the potential buyers for the specific property type and focuses on them.  This method also includes a wide variety of media outlets to spotlight the property to these buyers.  Allowing more exposure to a broader group of the targeted buyers of this type of property.

Price grabs the buyers attention.  If property is priced correctly this creates a showing and offer to purchase.  One of the things most sellers fail to realize is the fact that correct pricing gets a faster offer and minimizes the need for a price reduction.  Most of the showing activity is in the first two weeks a home is listed on the market.  So maximize your selling opportunity with marketing and price to get a faster sale.

If you have been reading my blog you will have noticed in some of my other postings, you do not have to be the cheapest priced property just the best represented and marketed property!

Do your homework, know your market strategy, and sell with confidence.  Homes are selling and buyers are buying.  So should you be discouraged?  No, re-group, double your efforts by preparing to sell with better marketing and properly priced correctly...your home will sell.

Remember if you are selling at a lower than anticipated price you will be buying at a lower price too!  It all works out and you have taken advantage of market conditions with a sale and purchase.

I hope this quick overview has helped you.

Drop me an email if you have any questions or comments.

Sincerely,

Gary White
Associate Broker