Kimberlee Williams | Realtor® | DRE #01490261

One of the most common questions that sellers have when selling a home is if it's worth it or not to hire a Realtor®. Now certainly I'm biased to this question, but there are way more reasons why it's worth hiring a Realtor® rather than attempting to sell a home by owner. The number one reason why hiring a Realtor® is worth it is because of the knowledge a top Realtor® will have of the local real estate market. By having a strong knowledge of the local market, a real estate agent knows the importance of properly pricing a home for sale. A home that is overpriced will be at a severe disadvantage when comparing to other homes for sale in an area and potentially may not sell. Bottom line, if you're asking yourself, is hiring a Realtor® to sell my home worth it, the answer is absolutely!

Once a seller realizes the importance of hiring a Realtor®, one of the next questions the often have is how do they correctly choose a Realtor®. There are certain tips for choosing a Realtor® to sell a home that should be followed. Below are 5 of the top tips for choosing a Realtor® to sell a home. 1. Correctly interview prospective Realtors® 2. Request previous and current client testimonials and/or contact information 3. Review prospective Realtors® sales history 4. Understand how they market their listings 5. Don't always select an agent because they offer the lowest commission The above 5 tips are just some of the more important ones. There are certainly other things that need to be taken into consideration in order to correctly choose a Realtor®!

After a seller realizes the importance of having a Realtor® and has a handle on how to correctly choose a Realtor®, many sellers wonder why choosing the right Realtor® is so important. Home sellers who pick an agent who may not be the best fit to sell their home can be costing themselves thousands of dollars. Sellers need to understand why picking the right real estate agent is critical. Picking an agent who prices a home too high, puts a sign in the yard and does nothing else to market the home, and an agent who isn't an effective negotiator is a recipe for disaster.

By now you should be able to tell the importance of correctly marketing a home for sale by reviewing the previous 3 common questions from home sellers. One of the most common questions from home sellers is in regards to the real estate marketing strategies Realtors® use to sell homes. A home that is priced properly and given maximum exposure should sell in a very short amount of time and for top dollar. Some of the top real estate marketing strategies that top Realtors® are using to sell homes include: 1. Print & traditional marketing such as post cards, TV, and newspaper ads 2. Online exposure 3. Social media 4. Content marketing These are 4 of the most important marketing strategies that top agents are using and what a seller should expect from their agent. Real estate agents who are not using the Internet or not using social media as a channel to give their sellers homes exposure are potentially costing them money and wasted time.

Many home sellers ask how real estate agents determine the market value of a home. Rightfully so, this should be something sellers should inquire about. There are many resources available for sellers to find estimated values of their home online, but it's important to take that information with a grain of salt. Sellers need to understand how the market value of a home is determined. One of the best questions for a seller to ask a real estate agent about is how they plan on determining the price of their home. There are several methods that can be used to determine the market value of the home, with the most effective being the comparative market analysis (CMA) approach. Other methods for determining market value include the price per square foot method and appraisal method. It's important that when selling a home, a seller understands how their real estate agent is going to determine the market value of their home.

Another common question from home sellers relates to the costs of selling a home. Many home sellers don't realize there are costs to sell a home. Since a home sale is one of the biggest transactions someone will be involved in, it's critical to know what all the costs involved are. Below are some of the most common costs of selling a home: 1. Brokerage fees/real estate commissions 2. Seller concessions (if applicable) 3. Title search 4. Instrument survey 5. Home warranty (if applicable) 6. Transfer taxes 7. Capital gain taxes 8. Costs of various repairs from inspections 9. Existing mortgages or home equity loans

Home sellers who prepare their homes for the market, in most cases, will sell their home for more money and in a shorter amount of time. There are certain steps that should be followed to make sure a home is market ready. Not only is being market ready important, there are also steps to ensure the home is "show ready". There is only one chance to make a first impression with a buyer. There are many home selling checklists that are available for sellers to ensure their home is not only market ready but also show ready.

Many home sellers wonder whether selling a home staged or empty makes a difference. There are certainly PROs and CONs to both. There are some buyers who cannot envision their own belongings in a home that is full of other peoples belongings, while others prefer to see how a space is utilized. One of the biggest considerations when determining whether to sell a home staged or empty is the price it would cost to stage a home. If the cost to stage a home is thousands of dollars but the sale price would be thousands higher, it is likely worth staging a home. The answer to this question is not concrete and will depend on each sellers situation. It's important that sellers ask their real estate agent what they think and why, in order to make an educated decision whether to sell their home staged or empty.

Similar to the question about staging or selling a home empty, the length it takes to sell a home is not concrete. There are many factors that contribute to the amount of time it will take to sell a home. For those home sellers who are wondering how long does it take to sell a home, below are some of biggest contributing factors that impact the amount of time it takes from listing date to closing date: 1. Current state of real estate market (sellers market, buyers market, balanced market) 2. Listing price 3. Real estate marketing strategies used 4. Number of inspection contingencies 5. Buyers mortgage approval process 6. Closing document review process

Home sellers who are concerned about what they need to avoid are taking the sale of their home very serious, and rightfully so. There are certain home selling blunders that some sellers make that can kill a home sale before it even gets going. It's important to avoid home selling mistakes such as: 1. Hiring the wrong agent 2. Pricing a home too high 3. Not accommodating showings 4. Being unrealistic with negotiations By avoiding these items when selling a home, a seller exponentially increases the chance of a successful sale of their home.

Getting pre-approved for a mortgage is the first step of the home buying process. Getting a pre-approval letter from a lender get the ball rolling in the right direction. Here’s why: First, you need to know how much you can borrow. Knowing how much home you can afford narrows down online home searching to suitable properties, thus no time is wasted considering homes that are not within your budget. (Pre-approvals also help prevent disappointment caused by falling in love unaffordable homes.) Second, the loan estimate from your lender will show how much money is required for the down payment and closing costs. You may need more time to save up money, liquidate other assets or seek mortgage gift funds from family. In any case, you will have a clear picture of what is financially required. Finally, being pre-approved for a mortgage demonstrates that you are a serious buyer to both your real estate agent and the person selling their home.

From start (searching online) to finish (closing escrow), buying a home takes about 10 to 12 weeks. Once a home is selected an the offer is accepted, the average time to complete the escrow period on a home is 30 to 45 days (under normal market conditions). Though, well-prepared home buyers who pay cash have been known to purchase properties faster than that. Market conditions are a major factor in how fast homes are sold. In hot markets with a lot of sales activity, buying a home may take a little longer than normal. That’s because several parties involved in the transaction get behind when business suddenly picks up. Lender turn-around times for loan underwriting can also slow down. If each party involved in a deal takes a day or two longer to get their work done, the entire process gets extended.

In sellers’ markets, increasing demand for homes drives up prices. Here are some of the drivers of demand: * Economic factors – the local labor market heats up, bringing an inflow of new residents and pushing up home prices before more inventory can be built. * Interest rates trending downward – improves home affordability, creating more buyer interest, particularly for first time home buyers who can afford bigger homes as the cost of money goes lower. * A short-term spike in interest rates - may compel “on the fence” buyers to make a purchase if they believe the upward trend will continue. Buyers want to make a move before their purchasing power (the amount they can borrow) gets eroded. * Low inventory - fewer homes on the market because of a lack of new construction. Prices for existing homes may go up because there are fewer units available.

A buyer’s market is characterized by declining home prices and reduced demand. Several factors may affect long-term & short-term buyer demand, like: Economic disruption - a big employer shuts down operations, laying off their workforce. * Interest rates trending higher – the amount of money the people can borrow to buy a home is reduced because the cost of money is higher, thus reducing the total number of potential buyers in the market. Home prices drop to meet the level of demand & buyers find better deals. * Short-term drop in interest rates – can give borrowers a temporary edge with more purchasing power before home prices can react to the recent interest rate changes. * High inventory – a new subdivision and can create downward pressure on prices of older homes nearby, particularly if they lack highly desirable features (modern appliances, etc.) * Natural disasters - a recent earthquake or flooding can tank property values in the neighborhood where those disruptions occurred.

A stratified market happens where supply and demand characteristics differ by price point, in the same area (typically by city). For example, home sales for properties above $1.5M may be brisk (seller’s market) while homes under $750k may be sluggish (buyer’s market). This scenario comes along every so often in West Coast cities where international investors - looking to park their money in the United States - buy expensive real estate. At the same time, home sales activity in mid-priced homes could be entirely different.

Home shoppers pay little or no fees to an agent to buy a home. Here’s why: For most home sales, there are two real estate agents involved in the deal: one that represents the seller and another who represents the buyer. Listing brokers represent sellers and charge a fee to represent them and market the property. Marketing may include advertising expenses such as radio spots, print ads, television and internet ads. The property will also be placed in the local multiple listing service (MLS), where other agents in the area (and nationally) will be able to search and find the home for sale. Agents who represent buyers (a.k.a. buyer’s agent) are compensated by the listing broker for bringing home buyers to the table. When the home is sold, the listing broker splits the listing fee with the buyer’s agent. Thus, buyers don’t pay their agents.

Most loan programs require a FICO score of 620 or better. Borrowers with higher credit scores represent less risk to the lender, often resulting in a lower down payment requirement and better interest rate. Conversely, home shoppers with lower credit scores may need to bring more money to the table (or accept a higher interest rate) to offset the lender’s risk.

The national average for down payments is 11%. But that figure includes first time and repeat buyers. Let’s take a closer look. While the broad down payment average is 11%, first time homebuyers usually only put down 3 to 5% on a home. That’s because several first-time home buyer programs don’t require big down payments. A longtime favorite, the FHA loan, requires 3.5% down. What’s more, some programs allow down payment contributions from family members in the form of a gift. Some programs require even less. VA loans and USDA loans can be made with zero down. However, these programs are more restrictive. VA loans are only made to former or current military servicemembers. USDA loans are only available to low to-middle income buyers in USDA-eligible rural areas.

If the built-up equity in your current home will be applied to the down payment on the new home, naturally the former will need to be sold first. Some home buyers decide to turn their current home into an investment property, renting it out. In that case, the current home will not need to be sold. However, your loan advisor will still need to evaluate your risk profile and credit history to determine whether making a loan on a new home is feasible while retaining title to the old home. Buyers often have a short time frame to sell their current home when relocating to a new city because of a job transfer. If you are moving but taking a position with the same employer, check to see if they offer relocation assistance to help offset some of the costs.

That’s up to you! For sure, home shopping today is easier today than ever before. The ability to search for homes online and see pictures, even before setting a foot outside the comfort of your living room, has completely changed the home buying game. Convenience is at an all-time high. But, nothing beats visiting a home to see how it looks and ‘feels’ in person.

When you make an offer on a home, your agent will ask for a check to accompany it (checks are the same as cash, and the deposit is typically 1% to 2% of the purchase price). Earnest money is made in good faith to demonstrate - to the seller - that the buyer’s offer is genuine. Earnest money essentially takes the home off the market to anyone else and reserves it for you. The check (or sometimes cash) is deposited in a trust or escrow account for safekeeping. If a deal is struck, the earnest money is applied to the down payment and closing costs. If the deal falls through, the money is returned to the buyer. Important: if the terms of a deal are agreed upon by both parties, but then the buyer backs out, the earnest money may not be returned to the buyer. Ask your agent about the ways to protect your earnest money deposit and the ways to protect it – such as offer contingencies.

Written offers should stipulate the timeframe in which the seller should respond. Giving them twenty-four hours should be sufficient.

Sellers can flat-out accept or reject an initial offer. But there is a third path that is quite common; sellers can initiate a counteroffer. Remember this: a deal isn’t dead until it’s dead. So, if a counteroffer is proffered by the seller, you’re still in the game. You and your agent just need to review it determine whether the counteroffer is acceptable. If so, then approving it closes the deal immediately. Keep in mind, offers and counteroffers can go back-and-forth many times; this is not unusual and negotiations are a part of what Realtors do as a matter of routine. Each revision should bring both parties closer together on the terms of the deal.

Yes! Home inspections are required if you plan on financing your home with an FHA or VA loan. For other mortgage programs, inspections are not required. However, home inspections are highly recommended because they can reveal defects in the home that are not easily detected. Home inspections bring peace of mind to one of the biggest investments of a lifetime.

It’s not required, but it’s a darn good idea! Final walk-throughs give buyers a chance to make sure nothing had changed since their first visit. If repairs were requested, as part of the offer, a follow-up visit ensures that everything is squared-away, as expected, per the terms of the contract.