Pocket the Profits: The Secrets to Selling Your Home above the Asking Price

Posted in Home Seller Tips by Michigan Real Estate Expert on August 19th, 2016

Pocket the Profits: The Secrets to Selling Your Home above the Asking PriceWe all want to sell our homes at above asking price, but what is it that makes a seller succeed at this? Here’s our expert advice on how you can sell your home above the asking price.

Ask For Less

You may be surprised, but pricing your home lower than market value can have an extremely positive effect on the offers you receive. This is because a low-priced listing will stand out and will draw more attention, which boosts your chance of a bidding war.

By attracting more buyers to come and look at your home, you will find more buyers who are willing to make an offer on your property. When they view your home they will see its true market value, and are then more likely to make a higher offer in hopes of outbidding others. It’s all about creating hype, and a low asking price will do just that.

Wait It Out

While it may be tempting to accept the first offer that comes along, in some cases, it may be better to wait and see what other offers come in. If you accept the first offer on your property you have closed the door to competition.

Consider Who You’re Selling To

Is your home better suited towards traditional buyers, or is it a valuable property for investors? If your home could easily be renovated and flipped, has high potential as an income property, or is in an up-and-coming neighborhood, it may be better marketed as an incredible investment property.

Investors expect a return on the money that they spend so are often more willing to make a higher offer – they know those funds will come right back to them.

Rock Your Renos

There are several simple renovations that can add a huge amount of value to your home. The return on investment for a few small upgrades is often very worthwhile when your goal is to receive more than asking price.

Make sure the flooring, kitchen, and bathrooms in your home are updated and appealing, and if not, consider upgrading these areas first. If you’re targeting investors, adding an income suite to your property may be the best investment you can make. Consider which kind of buyer you’re targeting and what areas of your home need the most TLC, and choose accordingly. Speak with your trusted real estate professional today to learn more.

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How to Gain the Upper Hand in Real Estate Negotiations Without Being Mean or Rude

Posted in Real Estate Tips by Michigan Real Estate Expert on July 29th, 2016

How to Gain the Upper Hand in Real Estate Negotiations Without Being Mean or Rude In a typical real estate transaction, numerous factors may be negotiated, and the terms of the purchase may be negotiated at different times throughout the process. For example, the contract may be negotiated at the time the original offer is made, but revisions to the contract may be negotiated after the property inspection has been completed. Both parties want to have the upper hand in negotiations, but those who focus on a few points are more likely to walk away feeling satisfied with the results of the negotiations.

Research All Factors Related To The Negotiation

A successful negotiation may be about achieving specific, desired goals, but in most cases, there will be a bit of give and take on both parties’ parts in order to find success. Those who have the upper hand in real estate negotiations will take time to research all factors related to the negotiations, and this includes everything from market conditions and how long the property has been on the market to how competitively priced the real estate is, how many other buyers there are and more.

Understand All Motives And Influences

Beyond outside factors related to the negotiation, there typically are personal motives and influences that must be considered. For example, a seller may be motivated to sell quickly due to a job offer in another city, or a buyer may be motivated because the property is the only one of its kind close to a great school. Real estate agents can often provide information about motives and influences that may impact the negotiations and that may reveal who has the upper hand in negotiations.

Consider Alternative Creative Solutions

After all external and personal factors have been researched and itemized, it may appear that one party has a clear upper hand in negotiations and the other party does not. However, in order to be successful in negotiations, typically both parties will need to feel as though they are getting what they want. After all parties’ motivations have been identified, it may be possible to think of creative, outside-the-box alternatives that may be agreeable to both parties.

When a buyer or a seller is preparing to negotiate with the other party, it is important that they fully understand all of the factors that may be at play in determining the outcome of negotiations. When buyers and sellers focus on these points before making an offer or counteroffer, they may find their negotiation efforts more successful. Contact your trusted real estate agent for more information.

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Squeezing a Seller: 3 Tips to Help Bring a Seller’s Price Down to Fit Your Budget

Posted in Home Buyer Tips by Michigan Real Estate Expert on October 22nd, 2015

Squeezing a Seller: 3 Tips to Help Bring a Seller's Price Down to Fit Your BudgetIf you’ve been searching the real estate market for a while and you’ve finally come across a home that you love, it’s possible you may be ready to pounce at any price. However, if you’re hoping to bring the seller’s price down for a deal that’s closer to what you want to spend, here are some ways you may be able to have your home and pay the right price too.

Get Some Background on the Sale

It’s important to realize that by understanding the motivation of the seller, you’ll be better able to give them the kind of deal they’re looking for. So, instead of going into it blind, ask questions to try and determine why the home is on the market. If the motivation happens to be time-related, and the current owners are moving to a new city or have purchased another home, you may have some leeway in terms of what you’re offering. By knowing the motivation ahead of time, you’ll be able to better align your offer with the seller’s expectations.

Research the Surrounding Market

This will definitely be something that a real estate agent should help you with, but utilizing a Comparative Market Analysis (CMA) will enable you to determine the sale price of houses in the area and should give you an idea of what constitutes a reasonable offer. While it’s important that this compendium is made up only of properties that have successfully sold in the local neighborhood, this can easily reveal if the seller’s price is standard and should give you insight into what the limitations in your offering price should be.

Consider a Quicker Close

It can seem like real estate all comes down to price, but there are a number of things you may be able to offer the home seller that may make them seriously consider a lower offer than they were hoping for. Instead of thinking only in terms of price, you may want to suggest a closing date that is sooner than usual; in the event that they’ve already purchased a home this will work out better for them in terms of cost savings and may make up for a difference on price.

If you’ve found your ideal home after viewing a lot of houses and you’re wondering how you can make it a better deal, you may score a lower price by being aware of a seller’s motivations or offering a quicker closing date. If you’re curious about other tips for real estate success, you should contact your trusted real estate agent for more information.

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Do You Regret Turning Down an Offer? How to Reopen Talks with a Potential Home Buyer

Posted in Home Seller Tips by Michigan Real Estate Expert on October 14th, 2015

Do You Regret Turning Down an Offer? How to Reopen Talks with a Potential Home BuyerThe real estate market is in a state of constant flux, and if your home has been for sale a little while you may feel vulnerable if you’ve recently rejected an offer. If you’re starting to change your tune on what you want and you’re wondering how you can re-make a deal, here are a few pointers for how to approach a new negotiation.

Did You Do a Follow-Up Call?

One of the rules for selling your home is to follow-up with all potential buyers as a matter of courtesy, whether you’ve accepted their offer on your home or not. If you’ve done this with a potential buyer you want to re-negotiate with, then you’re in a good position to contact them. Whether you choose to do this directly with the buyer or through your real estate agent, make sure that you know exactly what you want to say so the second time around can be more promising for both parties.

Re-Consider the Buyer’s Point of View

If you’re contemplating a former offer, looking at the way the buyer sees things may help you come to more of a consensus in terms of price. While you’ve paid for your property, and you’re aware of all that you’ve invested into it, a buyer may be looking simply at the going price of other properties in the area. By re-considering the market value in your area and being clear on the buyer’s concerns regarding your price-point, it’s possible you may be able to meet somewhere closer to the middle when it comes to a renegotiated price.

Be Prepared to Change Your Tune

You likely won’t be able to successfully negotiate anything with your potential buyer unless you and your family re-consider your asking price. While re-negotiating an offer that seems unfair certainly isn’t something worth stressing over, you’ll want to think about what the additional money you might be making is worth and if the difference is going to make up for potentially having your house on the market for a few more weeks or months. If it’s worth it to you to re-negotiate, you may just have home sale on your hands in short order

Selling a home can be a matter of significant stress, and missing out on an offer can add even more difficulty to the proverbial pile. Whether you’re wondering how you can renegotiate an old offer or successfully sell your home, you may want to contact your local real estate agent for more information.

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Locked in a Bidding War? 3 Tactics That Will Ensure That You Reign Supreme with a Winning Bid

Posted in Home Buyer Tips by Michigan Real Estate Expert on October 6th, 2015

Locked in a Bidding War? 3 Tactics That Will Ensure That You Reign Supreme with a Winning BidBidding wars can be ugly, nasty things – but with the right tactics, you can come out a winner without having to double your offer. Welcome to basic training – today, you’ll learn how to navigate the obstacle course that is a real estate bidding war and come out on top. Put these three strategies to use and you’ll easily win the home of your dreams.

Offer To Pay The Deposit In Cash

It’s not usually wise to make a down payment in cash, but paying cash for the deposit is a brilliant strategy that will put you first in line for your new house. One major reason why homes don’t sell is because the buyer didn’t get approved for financing – and that inconveniences the seller. Paying your deposit it cash proves your reliability to the seller, and it means the seller gets paid faster.

Add A Personal Touch With A Letter

Want to get a completely unfair advantage over other buyers in your neighborhood? Make your offer personal by writing the sellers a heartfelt letter. Marketing professionals know that emotional experiences are highly persuasive, and a personalized hand-written letter shows that you care.

For maximum effect, do a quick Google search on the sellers and look for common threads. Do the sellers have a child in college? Talk to them about your college-aged son or daughter and what program they’re taking – it may sound cliché, but a little bit of bonding really does go a long way.

“Escalate” The Situation With An Escalation Clause

When most buyers write up their formal offer, they simply name a price and that’s it. But you can set yourself apart from other potential buyers by including an escalation clause in your offer.

An escalation clause is a piece of a real estate contract that increases your offer in the event that you get outbid. An escalation clause usually lists your original offer, the amount by which you’re willing to beat other bids if you get outbid, and the maximum amount you’re willing to offer in the event that there are multiple offers. Escalation clauses are usually best used when you know that there will be a one-day review of all offers or when you’re anticipating multiple offers – otherwise it may compromise later negotiations.

Bidding wars aren’t ideal, but they are a reality of the real estate market – especially in competitive areas where it’s the norm to see multiple offers on a house. But with these tactics, you can outgun competing bidders and come out with the house you’ve always wanted. Contact your trusted real estate professional to learn more about navigating a bidding war and making a winning offer.

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A Great Problem to Have: How to Handle Multiple Offers for Your House or Condo

Posted in Home Seller Tips by Michigan Real Estate Expert on September 24th, 2015

How to Handle Multiple Offers for Your House or Condo With the real estate game in a state of constant flux, getting an offer on your house or condo might seem encouraging enough. However, there’s always the possibility that your property might hit the market hot, and this could mean more than one offer on your home. While having multiple offers can be the best of all outcomes, there are a few ways to handle this situation and make the most of your home sale.

Communication Is Key With Potential Buyers

The occurrence of having multiple offers on your home may put you in the power position, but you’ll want to keep potential buyers in the loop and aware that you’re fielding other offers. Ensure that each buyer supplies you with a pre-mortgage qualification letter and an offer by a deadline you choose, and let them know the tentative timeline on making a decision. This will keep your buyers aware of the situation, and reduce the chance of missing out on a potential sale.

Weigh Your Offers Before Making A Decision

Right off the bat, it may be tempting to go with the offer that seems the best on paper, but make sure to carefully consider the reliability of each potential buyer. It’s important to look over each buyer’s offer and determine if they seem like a consistent candidate that won’t change their mind. Once you’ve determined your ideal buyer, you can move on to negotiating the sale of your home, just do this in a timely manner because any serious buyer will expect a timely response!

Don’t Forget About Following Up

It can sometimes happen that the seller will get so excited about an offer on their home that they’ll forget about everything else and prep for the moving vans. However, it’s important to follow-up with each potential buyer to ensure selling success. Not only will this instill good will with each potential buyer, it may even provide a back-up offer in the event that the initial deal falls through.

Having a number of offers on your home is a great situation to be in, but you’ll want to make sure you handle it appropriately so you don’t miss out on the best deal. By keeping your potential buyers in the loop and following-up in a timely manner, making the sale might end up being the easiest part of your move. For more information on selling your home successfully, contact your local real estate professional today!

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How to Submit an Offer Below the Asking Price Without Spooking the Seller

Posted in Home Buyer Tips by Michigan Real Estate Expert on August 27th, 2015

Going Low: How to Submit an Offer Below the Asking Price Without Spooking the SellerYou’ve found it: A large new home for your family. It’s in the area of the city that you love, with the perfect architectural style and lots of room for entertaining guests. It would have been perfect for you, but there’s only one problem – you’re not quite ready to pay the price the seller is asking for. You’ll have to put in an offer below the seller’s asking price – a risky move.

Although you will be rolling the dice with an offer below asking price, there are ways that you can increase the likelihood that your offer will be successful. Before you submit your offer, use these three strategies to make it more appealing.

Work Out Other Terms In The Seller’s Favor

If you’re going to ask for a lower selling price, it helps to show that you’re willing to compromise on other terms – that way, you come across as a reasonable human being and not a bargain hunter. By offering to give the seller the better deal on other terms, you’re showing that you want to close a sale – and the seller will see you making an effort to come to an agreement and respond in kind.

There are several ways to do this. When you submit your offer, see if you can negotiate an arrangement that has you paying the closing costs or a closing date that works better for the seller. Or, offer to make the down payment in cash or give the seller a larger deposit.

Arm Yourself With Facts To Make Your Case

If the home you want to buy is priced well above fair market value, you can easily use that to your advantage and turn it into a benefit for the seller. First, you’ll want to look up property values for similar homes in the area. You should also investigate how long it takes homes in that area to sell and the difference between the average asking and average selling price in the area.

If you can show the seller that their asking price is above their neighborhood’s average sale price or that their home has been on the market longer than the average home (or both), then you can make a strong case for a lower offer.

Submitting an offer below asking price can work, but it’s not something that should simply be done on a whim. It takes careful planning and a great strategy to actually win a bid if you’re coming in below asking price. Contact you trusted real estate professional to learn more about how to submit a below-asking-price offer.

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Selling Your Home? 3 Reasons Why You May Need to Accept a Bid That’s Below Your Asking Price

Posted in Home Seller Tips by Michigan Real Estate Expert on June 10th, 2015

Selling Your Home? 3 Reasons Why You May Need to Accept a Bid That's Below Your Asking PriceWhen a homeowner makes the decision to sell his or her property, it is most common for a skilled real estate professional to provide valuation services so that a reasonable asking price can be established. While the asking price may seem fair to the homeowner, the fact is that not all properties will sell at the original asking price. There are several instances when a homeowner may need to consider accepting a bid that is below the asking price.

When The Property Has Been On The Market For A While

Most homeowners will learn about the average listing time for similar properties in the market through their trusted real estate agent, but some homes will remain on the market for longer than average. When this happens, a homeowner may begin to get concerned, and the real estate agent may even bring up the idea of reducing the asking price. When an offer is received below asking price in this situation, a homeowner may need to consider the offer.

When There Is A Question About Property Style Or Condition

There are many factors that will play a role in the desirability of a property in the marketplace, and some of these factors relate to the property style and condition. Some similar homes in the local area may be selling more quickly or for a higher price than others due to better overall condition or improved style. If the homeowner has concerns about this or if the real estate agent or others who have toured the property have voiced concerns about style or condition, accepting an offer below asking price may need to be considered.

When The Homeowner Needs To Sell Quickly

Even if property has not been listed on the market for a long period of time or the property style and condition are desirable, the owner may consider accepting the first offer received regardless of the asking price in some cases. For example, a homeowner may need to sell the property quickly due to financial issues, because of a job relocation or to take advantage of other financial opportunities. Unless the offer is unreasonable, the homeowner may consider accepting a lower bid in these situations.

Homeowners often wonder if they should wait for a higher bid or accept the offer that has been presented to them. Each situation is unique, so there is not a catch-all answer to this question. Those who are thinking about selling their home in the near future can contact their trusted real estate professional for further assistance.

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Understanding Escalation Clauses and When You’ll Want to Automatically Raise Your Offer

Posted in Home Buyer Tips by Michigan Real Estate Expert on June 4th, 2015

Understanding Escalation Clauses and when You'll Want to Automatically Raise Your OfferReal estate sales contracts can be confusing, and there seem to be contingencies and special circumstances for many different events built into a standard contract. One option that your real estate agent may ask if you are interested in is an escalation clause. This is typically an optional clause that you can choose to invoke if you desire, so you should take time to learn more about what it is before you make your offer.

What Is an Escalation Clause?

It can take a considerable amount of effort and time on your part to locate the perfect home to purchase, and the last thing you may want to do is to lose the home that you have fallen in love with during a bidding war with another buyer. However, you also do not want to make an offer that is so high that it is not attractive or beneficial to you. Ideally, you want to get your dream home at the lowest price possible.

An escalation clause essentially permits you to make an offer, but it has a built in option for a higher offer that will go into effect if the seller receives an offer higher than what you have offered. Essentially, it serves as an immediate response to a second offer to protect you in the event you are involved in a bidding war.

How to Use an Escalation Clause

An escalation clause can be highly beneficial, but you do need to understand how to use it. First, your initial offer should be competitive enough so that the seller shows interest in it. Second, your escalation clause offer should serve as your maximum offer. This offer ideally will remain in the limits of the market value of the home. It also should still be affordable for you to purchase. If you are not comfortable making a higher offer or if your higher offer would price it out of market value range, you may consider not using the escalation clause.

The ability to automatically raise your offer with an escalation clause can be beneficial when this clause is used properly. You can speak with your agent more about the interest in the home by other buyers as well as the overall market conditions to determine if using an escalation clause would be beneficial for you when you are structuring an offer to present to a seller.

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Received an Offer for Your Home? How to Respond with a Counter-offer Asking for a Higher Price

Posted in Home Seller Tips by Michigan Real Estate Expert on May 28th, 2015

Received an Offer for Your Home? How to Respond with a Counter-offer Asking for a Higher PriceGetting an offer on your house is the first step in getting it sold, but buyers often feel that they have to come in lower than your asking price. After all, everyone wants the deal to work out in their favor. If the offer you received isn’t quite what you hoped, you can always make a counter-offer. Getting the details right can help make your deal go more smoothly.

Deciding On A Price

When your real estate agent helped you set the price of your home, you already had an idea of what it should fetch in the marketplace. If the offer wasn’t far off from your asking price, it’s acceptable to counter with your original asking price. Many buyers could be willing to pay full price. If you feel that technique is a bit brazen for your style, you could instead drop the original price by a few thousand dollars.

Another technique is to try to “meet in the middle”. For example, if there’s a $10,000 difference between the asking price and the offer price, you might offer to drop the price $5,000. Of course, the bigger the difference, the less enthusiastic you’ll be about dropping your price.

Factors To Consider

Keep in mind that the actual selling price of the house isn’t the only thing that will be negotiated. If you’re giving in a little bit, then you should expect to get a bit in return, but the same is true for the buyer. For example, a first-time homebuyer might not have a lot of money for a down payment. If you counter with an offer that’s too high, they might respond with another offer accepting the price, but asking for seller’s concessions at closing time.

Additionally, as you start to come down in price, you might consider taking out items that you might have included in the original offer, such as high-end appliances.

Don’t Forget The Fine Details

Discuss the details of what you want with your real estate agent. They’ll be able to let you know if you’re making the right move, considering the current market in your area. They may also have information about the buyers, such as an educated guess about how high they’re willing to go. Your agent will also have all the paperwork you need readily available. In most cases, all you have to do is fill in the blanks in a few spaces.

You want the highest price for your home, but getting the best deal is often a delicate dance. Know your limits and work together with the buyers to reach an agreement that is mutually beneficial.

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