Tag: FSBO

Real Estate - ANALYSIS, Uncategorized

The Real Estate Bargain Bin

Where to find the best deals? Here are the best ‘bins’ to keep your tabs on:

 1. Estate Sales

An unfortunate effect of the beautiful lives we all lead, is that one day we will eventually pass away. What happens to a person’s home once they pass? Quite often, the family sells the property and gives the proceeds to whichever direction the will intended, and all the bills and debts are paid.

Why is this an opportunity? Quite often these Sellers are looking to unload their property quickly and just want it SOLD so they can move on – giving YOU, the buyer, an opportunity to walk in and potentially acquire the property for a discount.

2. Power of Sale

High credit card balances? Line of Credit out of control? Budget completely blown? Many people will answer YES to this question, and to these people, sometimes it is just TOO MUCH and they need to sell their homes to downsize and decrease their debt payments. Sometimes these people can’t even pay the mortgage or taxes, and the bank will seize the property and appoint a Realtor to sell it to re-coup the loan!

Why is this an opportunity? Again, motivated Sellers – that’s the key. These people need to sell their home and get their bills paid asap. Money talks, and if you can get yours in front of them first – it might give you an edge.

3. Handyman Specials

 Nice personality, but needs a little lipstick? Look no further than your neighbourhood ‘handyman specials’. These homes come from a variety of sources – from those that can’t keep a house to those that tried to flip but flopped. Pick up these homes at a bargain!

 Why is this an opportunity? Well, a property that is hard on the eyes is often hard to enjoy. A property that is hard to enjoy is hardly valuable, and hence comes at a discount because there is little to no demand in the regular everyday market. These sellers realize quickly that their home wont sell for the average price, and may need simply be in dire need to move on.

 4. Private Sellers

These Sellers have opted to sort through a riff raff of buyers themselves, and learn to pre-qualify them, negotiate with them, and close them. Let me tell you – not as easy as it sounds. Some of them even decide to work exclusively with un-qualified buyers that share the highest level of incompetence and advertise that they do not want agents to bring quality buyers to them!

Why is this an opportunity? Knowledge is power, and these folks, quite often, have little of either. Now there will be the odd exception, however the mass of these sellers did not price their homes correctly and can therefore not defend their price properly, they do not know how to negotiate (and are not even aware of) terms and conditions in a contract that can make a deal even MORE favourable than a low price, and therefore are not best suited to get the best advantages in a deal. Now I have never, and will never be unethical or unprofessional with a Private Seller, however; when I represent a buyer it is my obligation to get them the best deal possible.

Tricks of the Trade: I am able to manipulate the MLS database to search for homes by Seller (i.e. Contains “ Estate” or “Bank”) and can also search by keyword (i.e. Contains “handyman”, “tlc” or “flip”). Furthermore, I can have listings that match these criteria automatically sent to my clients inboxes the minute they are uploaded by other realtors, bypassing the overnight delay by the Ottawa Real Estate board, and therefore giving my clients a window of opportunity to view listings before the public does. This also really limits the homes my clients see to what they really want, instead of filtering through a hundred listings that “might work”. Pretty much any information that is related to a listing, I can transform into search criteria and can sort, sift and organize automatically and have sent out. These aren’t generic searches either (price range, location criteria), I’m talking digging deep and going above and beyond to get the cream of the crop. With regards to private sellers, most are open to working with me once I talk to them about the calibre of buyers I work with and the other ways in which I can help them, but they are really leaving themselves open to all kinds of pitfalls. Not only is pricing an area where they are at a disadvantage, but they are also (quite often) not well versed in legal matters (yes – contracts are complex legal documents), but also in the coordination and timing of all the related professionals that will all play a role in the success of the deal.

I hope you enjoyed the insight into the Real Estate Bargain Bin!

If you would like access to the BINS, and keep your tabs on any of them, simply visit www.RealEstateBargainBin.info

Cheers!

Real Estate - ANALYSIS

Discount Brokerages – Farewell to the Average Realtor?

With the deregulation of the MLS system a possibility in the near future, many discount brokerages have started to spring up, and are getting a great deal of notoriety. Why? Well – to save on commission of course! Why use a Realtor when you can list your home privately? That’s a very good question, and it’s really opening up the eyes of sellers are Realtors alike. I will not turn this into a “why use a realtor” piece, but rather try to offer my explanation of why they have come about, and what their role will likely become. You see – you could ALWAYS sell your home on your own; the first home was sold privately, as were thousands after it. Somewhere along the lines the need for some professionalism to this trade was needed, so regulatory bodies, proper training and licensing came in place. For a very long time, sellers were very happy with the results Realtors were getting – but then something happened. Some Salespeople began doing less and less work, putting signs up and then never being seen again, uploading listings on the internet and sitting idly by hoping for a buyer. You see, in my opinion, many salespeople got into this business thinking it was easy, and once you got your license you could put signs up all over town. Well, times have changed. Sellers started thinking, “I can do that!”, and you know what? They’re right! They absolutely can! It doesn’t take much work to put a sign up!

An interesting fact in my industry is that 5% of the Salespeople make 95% of the sales, meaning that an overwhelming 95% of salespeople make up for only 5% of sales! Some only sell a few homes a year, and some never sell any! I would argue that a large portion of that 95% is the portion that is simply putting up the signs and listings, and is the portion that has frustrating the home selling public, and has therefore brought this discount revolution upon themselves! The top 5% do not want these underachievers in our industry any more than public wants one to sell their home.

You see – the top 5% in Real Estate are true professionals. These people and/or  teams have tremendous systems in place that provide sellers with a full array of services and really know how to get homes sold. Mark my words – no private seller can do the job that these top 5% can. The network, the database of consistent buyer/sellers, the brand power, the advertising budgets, the marketing experience and the negotiating skills of this 5% will bring more money to the table 99 times out of 100 than any private seller. In fact, Discount Brokerages don’t have issues with the top 5% because they know that professional results require professional intervention, and that money spent here is not a cost, but rather an investment– that is a tried, tested and proven FACT that either side will attest to. Discount Brokerages are not trying to argue that they can do better than the top 5%, but rather a portion of that 95% we speak of.

So what to make of these discount brokerages? You know what? I think they will take out a HUGE chunk of that 95% mass of Realtors, and leave the industry with two very simple selling models: 1) Full Service, Highest Achieving and Top Selling Professionals (the 5%), and 2) a few discount brokerages that will offer some combination-type packages to suit whatever the aspects the seller feels they can not handle on their own. This is a GOOD THING and is great news for everybody. For you – the selling public, because you will now have as many choices as you can bare, and for me – the Realtor, because there will always be a need for full-time, full service professionals to rely upon. Not everybody has the time, the knowledge, or the ability to do what I do – or what my other fellow professional Realtors do. The cream will simply rise to the top.

What about those Realtor’s that leave the market, having their piece of the pie eaten up by private discount brokerages? Guess what- many of them aren’t leaving the market, but are likely the very ones that are starting these discount shops! The business savvy ones are going to lead the pack to discount bliss, and yes – many will fall between the cracks.

Consider this: Farewell to the Average Realtor? Or Re-Branding of the Average Realtor?

Real Estate - ANALYSIS

The 4.5 Best Tips To Attract More Buyers and Make Them Pay More For Your Home.

1. Price Your Home Right

This is by far the most important part of the selling process; after all, anyone can sell a house if it’s priced below what the true value should be, right? Heaven forbid you price yourself too high, and then your home might not sell at all. Don’t rely on other comparable listing prices – aim for SALE prices. Remember – properties for sale are also properties that haven’t sold, so why would you base your price in relation to them? You want to SELL, so find out what the comparables SOLD for, and price accordingly.

Try This: Contact the Land Registry office in Ottawa at http://www.ontario.ca/en/ services_ for_residents/STEL02_165696 for sale prices. Another great way to obtain these prices would be to get a Comparable Market Analysis (CMA) from a Realtor.

2. Provide Maximum Exposure

This is Marketing 101: More Exposure = More Buyers = Higher Demand = Higher Sales Price. You need to make sure you are getting as much exposure as possible; an internet posting and a Home Depot sign on the front lawn will simply not suffice in this day and age.

Try this: Spend some time uploading your listing on as many websites as you can, and use keywords in your listing description that will come up in searches. Put an information package together on your property and send it out to the top-selling agents in the area, and leave some at home for potential buyers.

  3. Take Your Home Seriously

 Is there ever was a time – this is it. You want to make sure that your home is portrayed in the best light as possible. Potential Buyers should feel privileged to purchase a home as desirable as yours, right?

 Try This: Clean and de-clutter. Invest in some storage organizers and get your home in order. Revive your home with a Spring Cleaning regardless of the season. If you can’t take great pictures, pay someone to. Professional photography brings out the best in your home, and will give it that WOW factor. 

Have a look at www.FitToSell.ca for ideas!

 4. Focus Marketing on ‘Premium Paying’ Buyers, and Filter out Bargain Hunters

 Why would anyone shop purely for private sales? To find a bargain, that’s why! Don’t attract a swarm of bargain hunters and set yourself apart from the rest.

 Try This: Insist that buyers either bring a letter from their lending institution saying that they are qualified to purchase a home such as yours, or that they are accompanied by a Realtor. Not only should Realtors should only be showing a buyer properties that they are qualified to purchase, those very buyers that are working with Realtors understand that they are viewing homes with commissions ‘built-in’, and are therefore prepared to purchase a home that will have a slight premium attached to it. Which would you rather, a swarm of bargain hunters, or a swarm of premium payers? Realtor’s attract premium payers because Buyers trust the brokerage, feel confident in it’s abilities and reputation, and require professional results. Offer as much money to a cooperating brokerage as you feel comfortable. You will attract the cream of the crop Realtors and Buyers – and the Realtors will have more incentive than ever to close a deal with more commission at stake, so you may very well be able to re-coup the commission in your price and/or negotiations.

 4.5 Consider a Professional

Remember, homeowners have ALWAYS had the ability to sell their homes privately, right?

So ask yourself – why was the industry ever created in the first place?

 A few reasons include (but are not limited to): 

  • Professional execution of the four points listed above
  • Strong negotiations that retain money and protect interests
  • Ensuring the coordination and cooperation of all parties involved (lawyers, inspectors, appraisers, engineers, other Realtors, other buyer/sellers), so that a deal is not fumbled due to miscommunication or incompetence.
  • Professionalism and experience to protect clients from various legal pitfalls.
  • Proper completion of various legal documents
  • Full time efforts and advocacy for properties

Would you spend a dollar to earn two? With a good Realtor, commission is an investment that will NET you more money at the end of the day (Notice I specified – with a GOOD Realtor?).

After all, what is more important – how much you invest in a professional, or how much money you NET?

 I trust this information was helpful to you! If you have any questions or concerns, please do not hesitate to contact me at any time personally at (613)868-4383

For a FREE and NO-OBLIGATION Comparable Market Analysis of your home, email me at MarcEvans@remax.net

Ask about the 6 smartest home renovations!

Real Estate - ANALYSIS, Uncategorized

Selling Your Home Yourself? Remember These 5 Important Points

PRICE – Pricing the Home – MOST MONEY POSSIBLE

  • Know exact Value (Past Trends and Comparables)
  • Know Acceptable Mark-up (Street Specific)
  • Price to Situation (Low if you need to sell, higher end all else)
  • Do NOT overprice (worst thing you can do)

EXPOSURE – Marketing the Home – BEST ODDS OF MOST MONEY

  • De-Clutter and Stage
  • Signage (Front Lawn + Directional’s)
  • Print Advertising (Magazine, Newspapers)
  • Website Advertising
  • Local Advertising (Flyers, Feature Sheets in local stores)

QUALIFY – Qualified Buyers – BRING MONEY TO THE TABLE

  • Make sure they have been pre-approved
  • Verify personal circumstances to make sure they can act and aren’t wasting your valuable time
  • If they are working with a Realtor, you can be assured they are qualified

NEGOTIATE – Watch bottom line – KEEP MONEY IN YOUR POCKET

  • Remember your pricing strategy and stick to your guns
  • Play the Buyer’s role and try to identify your own weaknesses
    • Deal with them before the Buyers do

CLOSING – Secure it – FOLLOW MONEY TO YOUR BANK ACCOUNT

  • Contracts, Clauses and Conditions
  • Schedule Conditions and Manage them
  • Be diligent until deal is tendered

 

Be smart, be prepared, work hard and a Profitable Sale can be made – I do it all the time.

To get you started, I would be glad to offer you some of the basic sales statistics in your area to give you a better idea of how to price your home– no obligation.

If at any time you would like to hear how I can significantly increase the odds of bringing good money to the table, keep it in your pocket and make sure it gets to your bank account – please do not hesitate to ask me. It’s my job and I am very good at what I do.