Wow, my thoughts about the improving housing market are being validated. There is really good news for the Housing Market as stated in this article:

Pending Home Sale Reach Highest Level in Nearly 12 Months

In my area, it is not exactly a seller's market. The home has to look good and honestly priced. If it is,  well then, - SOLD and sometimes with multiple offers.

I am posting this now because we are approaching the big summer moving season. Here are a couple of points that are worth thinking of regardless of your area: 

1. When selecting an agent think trustworthiness, experience, abilities and their dedication to your particular sale or purchase.
2. Relationship Style- do you desire an agent with a big team and a few contact points or an agent that you will deal with from beginning to end. Each style of business has their pros and cons.
3. For Buyers: do they charge transaction fees, upfront deposits and what is their availability such as times and days as well as communication methods like phone, text and/or emails.
4. For Sellers: Do they charge transaction fees and how will they market your particular home? Many individual agents, big teams and brokerages advertise they spend thousands of dollars on marketing your home. One such firm advertised it will spend $36,000 a month to advertise your home. Is that really to advertise their company or your particular home? Are you paying to sell or buy a brand or a home? How is that advertising going to give you an advantage? In some areas it may.
5. The quality of their work and the end results.

 To help you make your decisions I have a few statistical excerpts from the 2015 Profile of Home Buyers and Sellers National Association of REALTORS report:

Buyers:
87% of buyers recently purchased their home through a real estate agent or broker.
Only 8%percent (down from nine percent) of recent home sales were FSBO sales.
42% of buyers first looked online for homes
92% of buyers looked at the internet during their process
47% eventually purchased the home that they found online
33% found their home provided by their agent.

Sellers:
The top 3 reasons for selling: House too small, job relocation, closer to family friends. The top 3 methods of advertising were:
89%- Real estate agents list homes on MLSs first and foremost
69%- yard signs (69 percent),
51%- list the home on their website 

Finally, when thinking about when writing or negotiating a purchase offer, put yourself in the other party's shoes. Is that really a good offer? Does the home really look that good? Of course, Buyers will negotiate for the lowest price and best terms; and Sellers are going to negotiate for the highest price and best terms for them. Taking a step back and taking a look at the big picture is important.

On the subject of appraisals. Are there really issues or characteristics that buyers will be willing to pay for above appraised value that will not be well factored into the appraisal. Maybe yes and maybe no.

Here are four examples for the buyer to consider when negotiating an offer:

1. Is the kitchen/bathroom rehab(s) of value to you?
2. Do the windows or HVAC system have the highest efficiency available on the market and worth paying more?
3. Is the condition or location of that particular home so much better than the competition?
4. Does the house have rare or exotic wood flooring?

Keep in mind these items may well be worth more than what it has been appraised for; however, if you were to perform these same improvements what would your cost be? Are you willing to pay a bit out of pocket to cover the difference if it didn’t appraise for that value? (Appraiser may add $4,000 for new windows that would cost $14,000-$20,000 or more to replace)

1. Here are three examples for the Seller to consider when pricing:
2. Will prospective buyer share the same opinion of the value of the improvements you have made?
3. Are you okay with lowering the price if it doesn't appraise?
4. What does the competition actually look like?
   

A good listing agent will be able to market the home's cost savings, features and benefits to buyers, and a good buyer’s agent will be able to communicate the pros and cons of these improvements to the buyer to aid in their decision. It is important for sellers and buyers to think of these issues before the appraiser forces it upon you close to the closing date.

Carlos Cardo has over 12 years of experience helping local buyers and sellers just like yourself, we know how to locate the finest properties and negotiate the best deals. It's our job to know about the latest market conditions, government regulations, and upcoming developments — so that you don't have to.

Carlos A Cardo – Assoc Broker, RE/MAX Allegiance
CRS, MRP, ABR, GRI, CSP, SRES, CNHS, RCC, CDPE, e-PRO
RE/MAX 100%, RE/MAX Hall of Fame, Circle of Excellence, Five Star Award
Direct: 757-971-3574    FAX: 866-959-4956
Website:  www.CarlosCardo.com    Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Licensed in Virginia

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