Wednesday, December 17, 2014

Gain a Competitive Advantage When Selling Your Home

Gain a Competitive Advantage

Selling your home is a challenge. How do I get the most money? How do I choose an agent? When should put it up for sale? Alot of question to consider.  The reality is that selling your home is a process and there are a few things that if done properly, can place you at significant competitive advantage as compared to other homes on the market.

Homesellers have a huge challenge when deciding to sell their home. And however unfortunate, far too often these homesellers will choose an agent to represent them that will not put them the best position for success.  By preparing upfront, you can gain a competitive advantage that can mean a difference of thousands of dollars to your bottom line. Choose a better agent and you’ll get better results. Sellers are far too often concerned about the cost of selling but fail to consider how much an average agent will lose them.

   1.      Price it Right From the Start

When pricing your home, you are not choosing the price will ultimately sell for – you are in-fact
choosing 2 things:
         1.      Your competitive leverage in the marketplace,
          2.      How long will it take to sell.

I cannot stress this enough – If you do not allow the market to work on your behalf, it most certainly will work against you.  Driving a sale price up is all about exposure to the current captive audience that would likely consider your property as an option. If the buyers in the marketplace currently view your home as a better option than other alternatives, they will compete against each other. Failing to choose a competitive price is the worst mistake a homeseller can make. My objective when representing clients is to place them competitively within the market where we can attract to largest potential pool of buyers. Done properly, you will be in the driver’s seat for negotiations with both Buyers and their Agents competing to drive up your sale price.

   2.      Choose an Agent Skilled at Negotiations

Homesellers often fall prey to the Agent Dog & Pony Show and select an agent based off an inflated importance of marketing efforts & property exposure.  Yes it’s true that over 90% of all buyers start their research on the internet, but shouldn’t exposure and marketing be a minimum expectation? Statistically speaking, 95-98% of all buyers have agent representation and only about 3% will purchase the home they initially inquired about  As a consumer, it is important to understand that advertising is for the purposes of generating New Prospects.

Hopefully if you choose the right agent, you are paying for the things you can’t see. An agent who is skilled in negotiations can help to leverage your situation to your benefit. It is important to understand that no two negotiations are the same.  Only a truly skilled negotiator knows how to uncover information, discover what’s important to all parties, knows when to push and when not to.  Rarely do I have circumstances today where, with my properly positioned clients, I don’t dictate the tenor of our discussions. If it doesn’t matter to you – Expect to pay dearly for it!

~ Note – Be wary of the agent that claims to be very tough in negotiating your home’s contract.  The art of negotiation is more about working to incorporate the goals of all parties into the transaction and not the iron fist approach of strong arming their advisory.

      3.      Make Your Home Irresistible

Your home presentation is one thing the Seller has complete control over. Buyers develop 1st impressions when they walk in a home. Your goal should be to give it that Welcome Home feel so Buyers are talking about the positive attributes of your home – Not the items of disarray. Your goal should
be to make potential buyers view themselves in your home & excited about the chance to live there.  The home buying process is an emotional process for the buyer – Put your best foot forward & romance them a bit. Like my mom always said – Dress Nice & Smell Good!

Home Builders and Auto Dealers invest millions into presentation to get consumers to spend just a little bit more. Home sellers would be wise to think Model Home or Show Room condition before placing your home for sale.

 
      4.      Trust Your Agent
Real Estate Agents have developed a reputation similar to that of a used car salesman. Slick Talking & Spin Selling. As a result, consumers second guess the advice given to them. Though there may be some truth to that, it would wise for consumers to realize that experienced agents have handled hundreds of transactions. In order to properly represent our client’s interest, we have to become experts in marketing, economics, negotiation and consumer behavior. Purchasing residential real estate is rarely a completely logical transaction.  Emotions have a major influence on both the purchase and sale of real estate.  One of the greatest benefits of hiring an agent is an objective and comprehensive viewpoint.  Having an objective voice will allow the client to sift through the emotional triggers and make sound decisions.

So let’s talk –
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About the author: The above Real Estate information was provided by Ed Grabowski, Owner / Broker of Grabowski & Associates Real Estate Brokerage. ©Reserved. “My experience provides and insight you just simply won’t find with other professionals. My goal in representing my clients is offer true value, far beyond just dollars & cents.” 

Thinking of Selling your Home? I'd love to share my passion for real estate and marketing expertise! Ed can be reached via email at HomeSoldAZ@gmail.com or by phone at (480) 359-5150.

I service Real Estate sales in Scottsdale, North Scottsdale, Desert Ridge and surrounding communities.

Thursday, December 4, 2014

Scottsdale Real Estate Market Update

Numbers in for Scottsdale, November 2014

Inventory numbers continue to climb (Change Yr over Yr) although Median sale price continue to climb. Absorption & DOM on the rise.
Scottsdale Real Estate Activity Nov 20104 offered by Ed Grabowski 480-359-5150
Scottsdale Real Estate Activity Nov 20104 offered by Ed Grabowski 480-359-5150

Though taking a more localized look shows that values for some areas have been a bit more stable as inventory increase to highest level in 6 months. As a result, market exposure time spiked to highest level in past 12 months.

Scottsdale Real Estate Activity Nov 20104 offered by Ed Grabowski 480-359-5150  Scottsdale Real Estate Activity Nov 20104 offered by Ed Grabowski 480-359-5150

Scottsdale Real Estate Activity Nov 20104 offered by Ed Grabowski 480-359-5150
These are just a few of the areas in North Scottsdale for comparison purposes.  As competition for sales gets tighter, working with a true professional that understands proper positioning is crucial to maximize results. If you are thinking about making a move, now is still a great time, but requires the right approach. 
So let’s talk –
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About the author: The above Real Estate information was provided by Ed Grabowski, Owner / Broker of Grabowski & Associates Real Estate Brokerage. ©Reserved. “My experience provides and insight you just simply won’t find with other professionals. My goal in representing my clients is offer true value, far beyond just dollars & cents.” 

Thinking of Selling your Home? I'd love to share my passion for real estate and marketing expertise! Ed can be reached via email at HomeSoldAZ@gmail.com or by phone at (480) 359-5150.

I service Real Estate sales in Scottsdale, North Scottsdale, Desert Ridge and surrounding communities.

Wednesday, December 3, 2014

FSBO - Things to consider 1st

Why a Smart Seller program is More Effective

Did you know that your odds of success as a for sale by owner are only about 9%? The typical driving force behind most for sale by owner homes (FSBO) is to save the Real Estate commission. Even as a real estate agent, I understand the allure to saving as much money as you can.  But the reality is that cards are really stacked against as a property owner for several reasons. But an alarming figure that all home sellers should consider before giving it a shot is that Homeseller on average receives only 81% of what they would by working with a real estate professional.*  And though may be a bit counterintuitive, their true cost to work with a real estate professional is only 3-4%**. So does it make sense to risk 20% of your home’s value to save 3%?

There many reasons why as a homeowner you are a significant disadvantage, but here are the 
Top 7 Reasons Why:

       1. Inexperience & Lack of Market Knowledge

As with any business, a true understanding of the market and the factors that affect it can only come through experience. Most homeowners will sell a property on average every 7 to 9 years. Real Estate Professionals, on the other hand, are licensed by the state as experts in the industry and have should have dedicated a significant part of their career to understanding the market and the steps necessary to a successful transaction. Over that course of 7-9 years, a real estate professional could have been involved in hundreds of transactions with varying degrees of complexity.

Experience and Market Knowledge doesn’t happen overnight and in reality takes many years to develop an appreciation for all of the tasks necessary to maximize your bottom line.

2. Improper valuation
Truly, the most critical part of your home’s marketing is identifying the proper price to offer your property to the market. Pricing a property is the art of understanding the real estate market and strategically selecting the offer that will drive the most exposure to your property.  Failure to do this properly can virtually guarantee failure.  However unfortunate, most owners do their own research to determine a value or solicit the advice of a professional and ignore the recommendation.

3. Property viewed as opportunity for Bottom Feeders
Did you know that the market value of a home takes many factors in to consideration but included in the assumptions are that a real commission is to be paid?  As with any
investment or asset, there is a cost associated with the sale.  Buyers in the marketplace understand this concept and see this as an opportunity.

They view FSBO’s as opportunities to acquire property undervalue and understand 3 facts:


1.        As a FSBO, you are likely to sell for below market value,
2.       As a FSBO, you are trying to avoid a real estate commission and are likely to transfer that savings to the buyer during negotiations,
3.       As a FSBO, you do not have adequate representation to protect your interests.
All 3 of these factors are likely to result in a lower accepted contract price for you as the homeowner.

 4. Limited Exposure
Home sellers who elect to try sell their home without an agent, usually have little appreciation for the behind the scenes efforts of an agent. Most home sellers do not realize that real estate agents generally have several systems to attract prospective buyers to your property that go far beyond the an MLS listing and a for sale sign.  Most home sellers will invest in generic for sale signs, hold open houses that do not attract the right audience and invest minimal amounts in varied advertising methods such classified ads and online posting sites that don’t provide the necessary exposure to attract the buyer willing to pay the most money for your house.

Failure to expose your property to the largest group of potential buyers will ultimately result in much of the equity you are trying to protect as money left on the table.  Exposure to a limited audience just decreases your chances of success.  Our systems are designed to create the greatest exposure to the right target market.  We would be happy to go over our system and explain what we do differently to maximize your bottom line.

5. Sellers are not objective
I recently met with a home seller attempting to sell her home without a real estate agent.   Mind you, this was a sharp professional woman with successful career.  She walked me through the house pointing out all of the intricate details of the home, trying not to hover too closely.  However, no matter how professional she was, or how well kept her how was, she was unable to mask overwhelming anxiety with the process.  Unfortunately, her emotional attachment to the outcome just would not allow her to be objective during a contract negotiation.

Part of hiring a professional is having an objective professional who can guide you through the negotiation process.  The best agents are experts in negotiations and will not inadvertently compromise your interests during the process.  Negotiation is an acquired skill and can only be learned by practicing our craft.  Throughout my career, I have been presented with more obstacles, different personalities, and more complex situations that could be shared with a home seller. The bottom line, my experience offers my clients an unparalleled insight into marketing, negotiation and client representation.

6. Buyer qualification
For sale by owners generally do not have the necessary relationship with affiliate industries to qualify buyers before they view their home.  Part of the process when working with home sellers should be to ensure that buyers we bring through home, if they are interested, have the ability to qualify to purchase your home. 

True real estate professionals will not subject you or your home to people just wanting “Check it out”.  Our resources and connections can ensure that all buyers we bring to your home are capable buyers.
7. Time Commitment
If you are like most homeowners, chances are you have a day job that requires a significant amount of your attention.  Selling a home is no different.  Most for sale by owners often become overwhelmed by the process.  One reason is that they quickly realize of the steps necessary to result in a successful transaction. 

We as real estate professionals have designed systems to address each part of the real estate transaction.  We are not required to Rebuild the Machine, every time we work with a client.  For home owners, selling a home is an event.  A true professional understands that selling is a process and have created systems to deal with the many obstacles that can come up before you get your check at closing. 

Granted, not all agents are the same.  But it is a statistical fact even an average agent is likely to do a better job of selling your property for more money than you would be able to.  And the best agents have the right systems in place to outperform a mediocre agent.  In fact, our system results in an additional 4.55% more for our clients.  Which, by the way, more than pays for our commission.  What’s better, we have a smart seller program if you do find the buyer for your home.  We welcome the opportunity to share with you what we do that makes us more effective in generating results for our clients  At the very least, the possibility to put more than 20% more money in your pocket should be worth a discussion before tackling selling your own home. 

So let’s talk –

* NAR 2013 Profile of Home Buyers and Sellers.


** Most Home owners acknowledge their willingness to pay a commission to a Buyer’s Representative
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About the author: The above Real Estate information on the Why a Smart Seller Program is More Effective was provided by Ed Grabowski, Owner / Broker of Grabowski & Associates Real Estate Brokerage. ©Reserved. “My experience provides and insight you just simply won’t find with other professionals. My goal in representing my clients is offer true value, far beyond just dollars & cents.” 

Thinking of Selling your Home? I'd love to share my passion for real estate and marketing expertise! Ed can be reached via email at HomeSoldAZ@gmail.com or by phone at (480) 359-5150.


I service Real Estate sales in Scottsdale, North Scottsdale, Desert Ridge and surrounding communities.