What Truly Sells A Home?

 I went on a listing appointment this week and realized that this is a topic needed in today’s market since there are so many buyers yet there are still homes just sitting without offers on the market and the clients informed us that another agent gave them a price that was way over market value for their home. So let’s take a few moments and determine what truly sells a home.

I realize this may be a little hard to swallow since so many areas we have heard location, location, location. Location does not sell your home, it makes your home more desirable since it is where people want to live but location alone is not the answer to what sells a home.

Does Staging sell a home?

 While staging is nice and will help buyers feel comfortable in your home, it will help your home show better than a neighbor’s home that is also on the market it still won’t sell your home if your home is overpriced. If your home is priced competitively it will sell your home since yours will show better than the competition.

Will open houses sell a home?

Some feel having an open house will sell their home but yet again many times an open house will not bring you a qualified buyer, it does however bring a lot of neighbors who have never had the opportunity or invitation to enter your home; it does bring in others from your community who are thinking about listing their home and want to see their competition and it many bring someone who would like to if they can qualify write and offer to purchase your home, but this does not guarantee a sale from an open house.

Does advertising & the web sell a home?

Though advertising brings lots of attention and the internet is a great tool since so many buyers are using it for their home searches to look for homes if the property is advertised at a price above the market value it will only help to sell other advertised homes.

Please do not take me wrong all forms of marketing and prepping your home for sale will indeed sell a correctly priced home. Pricing a home under market value is just as bad as over pricing a home so lets take a look at what truly sells a home.

Pricing it Right Sells homes quickly and effectively. following is a quick run down on how this is done.

When an offer is made on a home an appraisal is completed to validate the price and homes value. Agents have the tools to perform a competitive market analysis also known as a CMA. This determines a starting point for the listing price of your home, so when the appraisal is done it will hopefully show the price is consistent with what the lender of the buyer is willing to loan. Many times homes are listed higher than the comps in the area are showing and the home sits on the market leaving the agent and the seller frustrated so be sure the agent you work with is honest enough to show you the true value of the comps in your area. Knowing how to make the needed adjustments to the properties being compared is vital in determining the correct listing price in order to bring in qualified buyers that will indeed write offers on your home.

Your CMA should include recent homes that have closed that are similar to your home in age, square footage, number of bedrooms and baths, and lot size; Pending sales are also vital to your home pricing since they are going to adjust the comps if they close before your home does that the appraiser will use in determining the home’s value. Homes that are currently on the market should also be included since these will show you what your competition is.

If you would like to find out the current value of your home feel free to contact me and I will gladly free of charge meet with you and help you see where your home value is . If you are not in my area of northern California I can have an agent in your area contact you for what is happening in your community.

I look forward to meeting the needs of those that would like;

Tami Merriam

BRE# 01936304         
High Ground Real Estate
Tami.Merriam@gmail.com

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Let's Dance - The Art of Negotiations

This blog was originally written in May of 2008 in conjunction with my ex-business partner Scott Messing while working at ERA West Wind in Boise, Idaho. I am using it again since the information remains relevant and helpful. I hope you all enjoy it.

Homeowners and soon to be homeowners need to learn how to dance with each other.

Whether you are thinking about buying or selling in this uncertain market please take the time to learn to dance. A key factor in any successful real estate transaction is the art of negotiations. It doesn't have to be a difficult process. It's the matter of taking the time to know when to take a step forward or take a step back and learning the steps of a graceful dance to bring the real estate transaction to a beneficial end for all parties involved.

Living in a me-me society as we've come to be, people forget that their wants are not all that are involved. But there are needs on the part of buyer and seller alike that must be taken into account. You can do a 2 step and kill the transaction with ink and pen or you can do a beautiful waltz that give you a first place trophy on Dancing With The Stars.

Make sure the agent you select is the star that will take the lead in guiding you through the difficult phases of negotiating a contract.

Phase 1: Writing a contract and coming to acceptable terms for both parties

When a contract is written you have 3 answers that you can receive a yes, a no way or a counter-offer, which means what dance shall we perform. The 2 step is when you write an offer based on fair comparables that you're agent has provided you. Despite this fair offer the seller counters for closer to the asking price expecting you to accept it without further negotiations. A 2 step will usually kill a contract. Learn to tango and hope that both agents realize that it may take 3, 4 or 5 steps to come to a melding of the minds where all parties are dancing together without stepping on each other's toes.

Phase 2: You've come to an agreement, inspection has been completed and items now need to be repaired in order to continue with the dance.

An inspection release has been written and presented to the seller. At this point either party can do The Bus Stop and bring the transaction to a halt; or you can do The Electric Slide and joyfully complete this phase of the purchase.

Listing every single item in need of repair will usually kill a transaction. Unless you are buying a brand new home it's not necessary to ask for all the small items in need of repairs to be completed. For example new outlet covers cost $.50 to $1.00 at your local hardware store and cracks in the sidewalks can easily be filled after closing. Major items that will impact your health and/or safety should be addressed. For example foundation, roofing, plumbing, electrical and HVAC related repairs should not only be addressed, but grouped together in non-intimidating ways on the inspection release so that all parties feel comfortable and informed, helping you slide right pass these hurdles.

Phase 3: The signing at title

Coordinating all parties and keeping everyone patient until the documents have been delivered to title, reviewed and adjusted if needed by the escrow officer and making sure the final walk through is complete make up this graceful dip of a finale.

Sometimes due to work schedules there can be some little hitches where the seller or the buyers have to adjust whom signs first. As long as all parties stay in communication this can work out smoothly, ending the dance on a wonderful upbeat.

We decided to write on this topic based on a few recent real life examples. We share these examples and this blog entry in hopes that it will help people in the future.

Case 1: Recently on behalf of our client we made an offer and unfortunately it was killed based on the 2 step dance example. The listing agent encouraged a dance but abruptly halted it despite having actual comparables indicating a lower price that we believe the listing agent chose to psychologically dismiss. Comparables showed the home to be worth 15,000 less than the asking price. The appraisal would not have come in at the asking price and we must wonder if the agent even told her sellers this information.

Case 2: One buyer's agent we worked with nearly killed a transaction by insisting on several small items being repaired in order to make her appear as a superstar, despite the items requiring little money or time. In this case the agent's ego was on the line instead of any of the client's best interests. Luckily our ability to find excellent and affordable vendors willing to step up and help the seller's family get through this process with little financial burden saved this transaction. We were able to smoothly complete what appeared to be a nightmare for the sellers. In the end it turned out to be a blessing.

Case 3: As the dance was nearing end the title company found a hidden Liz Pendens (legal action pending against a property). Our clients and the listing agent started to freak out. Tami's negotiation ability kept our clients and the other agent calm. Thankfully having a great escrow officer and negotiator at the title company also contributed to the success.

Thank You For Reading;
Tami Lee Merriam
BRE# 01936304         
RE/MAX Gold
Tami.Merriam@gmail.com
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Are Realtors truly self employed or an intricate part of a team.

As I sat through my fiance's son's back to school night the principal took a few moments to show us all         " Lesson's from the Geese"  I hope you will take a few minute to watch the video posted above and see how it correlates to your life. I had never seen it prior to that evening yet immediately saw the correlation of not what most agents think but as what the optimal relationship should be for the success of our clients as a whole.

A Realtor's foundation and formation should be The Realtor Code of Ethics set forth by the National Association of Realtors it is set in place to make sure we are meeting the needs of and protecting the consumers of our nation.

Our Flight should always be one that is uplifting to our clients while helping them reach their goals.

When we as Real Estate agents work together our level of success increases as will our reputation with our clients enabling us to truly help more people succeed. Yes we are considered self employed independent contractors. Yet we have the benefit of not being in this alone. We all should know that we are part of a team. Our brokers, the other Agents, the lenders, title and escrow, and inspectors should stand side by side with our clients to make sure we are all working towards a common goal. (The successful transition of the property from seller to buyer.) Agents should always make sure that the fiduciary and equitable interest of all involved are protected. This is accomplished when we all work together through equitable business practices, fair negotiations, integrity honesty and abiding by the code of ethics.

I can only hope that by bringing this to the public's attention somehow once again faith and trust can be re-established between the real estate community and the people we serve.

Even though Agents choose to hang their licenses with different brokers and are considered independent contractors they should still work as a team for the good of the clients in order to ensure the success of the transaction. When working through a transaction it is imperative that we work together to make sure the transaction flows as smoothly as possible. There will always be hiccups in a transaction whether it is due to something discovered during the title search or something more the lender needs or the inspection report finds something unknown to all parties. These do not need to be deal killers many times there is an answer and solution to overcoming these obstacles it just takes everyone communicating effectively to find the proper solution to make sure the clients needs are met so the transaction can move forward.

So many times while selling real estate in Idaho I ran into agents who had an attitude of it is not my job, in my opinion once a contract is in place the nuts and bolts of a Realtors job begins. The acceptance of a contract is when the real estate agent goes from being a solo act to part of a team . A team set in place to ensure the success of the transaction for the clients sake. Making sure everyone's needs are met through negotiations, following up with the inspections, getting all the disclosures signed and delivered to all the parties involved and that the lender has all they need in a timely manner while keeping the clients abreast of all that is occurring is what makes us that team player.

When you are looking for an agent make sure they understand that they start out as a team with you the client. It is your transaction, your input is vital in the flow of the transaction. trust that they do not think they are the lone ranger and see the need as their entire team as their Tonto to keep the transaction flowing when those hiccups in the transaction occur to meet your needs through successful meeting of the minds through out the transaction.

If Real estate agents begin to follow the lessons of the geese and apply them into our business practices seeing ourselves as part of the team to help others we will all effect more lives and once again increase the prosperity and success of the people we work with.

If you have any questions or comments feel free to contact me. I would love to hear your feedback on my thoughts.

Thank you for Reading;
Tami Lee Merriam
BRE# 01936304         
High Ground Real Estate
Tami.Merriam@gmail.com
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