It's essential that buyers and sellers trust and believe the guidance of an experienced real estate agent. The business has changed dramatically since the housing bubble burst. No longer does the industry see homes go under contract within 24 hours. In most instances, homes are sitting on the market for months before they are sold.
The value of homes in some states and communities has decreased to half the value of what they were purchased for five years ago. Many homeowners have to do a short sale, which is not short at all. This is when the bank agrees to let the homeowner sell their property for the current market value.
Some owner’s homes have gone into foreclosure because their loan payments ballooned and they could no longer afford the mortgage. Unfortunately many people lost their property because they lost income and were not able to make their monthly payments.
Realtors Know the Local Market
The cost of homes have dropped and many people who were not able to purchase homes during the housing boom can now afford to do so. Homes are now more affordable and interest rates are incredibly low. Investors are currently finding some of real bargains and are buying multiple properties. They are reeling in huge profits from either renting properties or renovating homes and re-selling them.
Pricing Your Home Correctly
Experienced realtors know when homes are priced correctly to sell. Owners are who put their homes on the market still tend to think about the value of their home when it was appraised during the housing boom. Homes that were appraised for $350k in 2008 may only appraise for $275k in 2011.
Sellers truly think that if a realtor markets their home correctly that they can get $350k or an offer close to it. Sellers need to understand that no matter how much time and effort a realtor puts into selling your home buyers are not going to pay $350k for a home that is only worth $275k.
If a buyer writes a contract for $350k and they are getting the property financed, and the house appraises for $275k, that is all the lender will loan the buyer to purchase the property. Therefore, the owner is faced with the decision to sell at the $275k, or ask the buyers to give them $75k cash, or hold on to the property. Most owners think that they are giving their property away if they sell at $275k, but they aren't if the property only appraises for $275k. This is fair market value.
Many sellers think that buyers will offer less than their asking price and don't want to put their property on the market because they'll lose money on the sale of their home. What the average seller doesn't know is that most buyers will not make an aggressive low offer on property that is new on the market.
Selling Your Home More Quickly
When homes are priced correctly they earn more money and are sold quicker. Sellers think they can always lower their price later if they don't get a contract. What sellers don't realize is that many opportunities are missed because buyers tend to move on.
The first week a house is on the market is when it generates the most interest. If the house is priced too high, buyers will move on to the next house. Many opportunities to sell have been lost and it means that the realtor has to generate new interest in a house that has sat on the market too long.
Listen to Your Realtor's Advice
Buyers have to trust their real estate agents when they tell them how much they should offer on a property. Real estate agents know the market and have seen much of the inventory that has been sold and what is currently for sale.
Buyers tend to have the false perception that they can buy homes a lot cheaper than the asking price. Sometimes that is the case, but most times the price of the home reflects the true market value. In these cases, buyers need to offer the asking price to purchase the home.
The internet uses national statistics and not local statistics. Local statistics are more reliable for constructing offers. When buyers won't listen to their agent's advice and make a reasonable offer to the seller, they get very disappointed when their offer is rejected and the seller does not counter because the buyer’s offer was unreasonable.
They aren’t right all of the time, but a good real estate agent is right most of the time. Buyers and sellers should trust and believe in the knowledge of the agent they hire to represent them.
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