Don’t be fooled by these 3 selling myths

03/17/2017 | Author: Summer Mandell, Texas Association of REALTORS

First-time sellers beware: there are lots of myths out there about the right way to sell your home. While your Texas REALTOR® is your first line of defense against making these mistakes, here are three common selling myths busted:

Myth: I bought a house, so I know what it's like to go through a real estate transaction. I'll sell my home on my own and save money by not using a real estate agent.
Truth: Texas REALTORS® don't work for free, but that's because they provide valuable assistance through the home-selling process. Selling isn't the same as buying, and a Texas REALTOR® can help you reduce your risk of making a costly selling mistake. Plus, they help clients with the ins and outs of property transactions every day and are plugged into your local housing market. If you DIY, that means you'll have to spend time marketing your home adequately, be available to show the home yourself, and navigate your way through a tricky transaction alone.

Myth: If I price my home higher than market value, I'm leaving room for negotiations.
Truth: Buyers have no idea you're employing this strategy and won't understand why your price is too high. Many won't even view your home, much less put in an offer. When your home is priced improperly, it's more likely to sit on the market, making potential buyers think there's something wrong it. When that happens, you'll probably wind up with lower offers than if you had priced the home fairly at the start.

Myth: All I need to do is mow the lawn and hide my stuff in a closet and my home will be ready to show.
Truth: Is a mowed lawn and hidden clutter all it takes to attract you to a home? It won't work for potential buyers of your property, either. Your Texas REALTOR® might go through your home with you and identify areas that could use some sprucing up to make your home more appealing. Or, he or she might recommend working with a home stager to make the best impression. Be open to those suggestions … your Texas REALTOR® knows what makes a property sell quickly for top dollar.

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What to update before selling your house

Should you replace your laminate counters with granite before selling or just repair the burn marks? What about your leaking gutters? There's the outdated wallpaper in the hall bathroom, exterior paint that's peeling, and a window that sticks, too.

Deciding what to do about conditions like these can be difficult. On one hand, granite counters are expensive. On the other, laminate may turn off buyers who can choose from nearby homes with granite counters. Whether you'll get your money back on upgrades and repairs is one consideration. But some repairs and remodeling projects may make your home enticing to potential buyers.

How do you know whether to tackle a pre-sale project or leave things as is? Talk with a REALTOR®. He or she can give you guidance on what pays off. A REALTOR® has a finger on the pulse of what buyers are looking for in your neighborhood, how much they are paying for certain types of amenities, and how much interest properties similar to yours are generating. You will be able to discuss how the options fit your time frame and price expectations. And that can save you from making a decision you'll later regret.

Author: Marty Kramer, Texas Association of REALTORS®

4 easy ways to update the kitchen before you sell

Home buyers can overlook many deficiencies in a property, but the kitchen isn’t usually a place they like to compromise. As such, it’s a great place to make small improvements before you sell. Here are four things you can do to make your kitchen a selling point.

Freshen the paint and back splash

One of the easiest updates to your kitchen is to paint the walls and redo the back splashes to fit today’s trends. Many homeowners are opting for neutral colors, such as gray or ivory, for walls and back splashes. Not only do these colors provide a modern feel, they also provide a blank slate for prospective buyers.

Put a new face on appliances
Sure, buyers will love new appliances, but spending $10,000 on them won’t necessarily add $10,000 to your sales price. Another option is to give your current kitchen appliances a face lift. New doors on the refrigerator and oven, and panels for the dishwasher can make the kitchen pop without breaking the bank.

Lighten up the room
Lighting is extremely important for any kitchen. Simple overhead lighting is a thing of the past. Modern home buyers are interested in unique, functional lighting that is cohesive with the overall aesthetic of the kitchen. Under-cabinet lights and glass pendants over islands are two of the top trends for modern kitchen lighting. Even installed battery-powered LED strips under cabinets can go a long way toward updating your kitchen’s look.

Modernize the cabinets
Kitchen cabinets are perhaps the most noticeable feature of your kitchen. They help establish the style and aesthetics of the whole room. Some cabinet companies have gone high-tech with digital visualizations of what different cabinet styles, designs, and colors would look like in your kitchen. If completely replacing your cabinets isn’t in the budget, a simple refurbishing of the current cabinets can add significant value to the kitchen and the overall appeal of any home. Kitchen updates like these give you great bang for your buck—and will catch potential buyers’ attention.

Author: Alexandra Bohigian, guest expert, Texas Association of REALTORS®

If you have questions regarding your property, please call us today for a FREE consultation! 

Little things that make a big impression on buyers

It doesn’t take much to change a buyer’s impression of a home.

Add some peeling paint, a leaky faucet, and dirty dishes in the sink of an otherwise appealing house, and suddenly the buyer crosses that property off his list. Just as minor imperfections can turn off a buyer, a few small actions by you can make your home seem even more appealing.

Fix conspicuous problems. You want to put your home’s best foot forward. If you can’t afford to remedy all the problems with the house, at least fix obvious ones. A buyer will notice the rotten porch railing or cracked window pane on a casual walk-through.

Show the owner’s manuals. Sure, everything’s available online, but you still need to know the model number of your oven, dishwasher, and microwave when something breaks. Showing buyers that you’ve kept that information suggests that you’ve taken care of other things related to the house.

Make an effort outside. Short grass makes bare patches less obvious, and a few bags of mulch around trees and in flower beds can work magic on an otherwise lackluster yard. Add in a planter of colorful flowers by the front door, and you’ve added significantly to your curb appeal.

A little effort goes a long way with buyers, so ensure your home makes a great first impression. 

Author: Ward Lowe, Texas Association of REALTORS®

Home-staging tips for a show-worthy home

Staging your home is a great way to enhance the appeal of your property to buyers. Home-staging and lifestyle expert Tori Toth shares some tips for home sellers.

Add natural touches

Take a cue from the geography surrounding the home and use natural elements that reflect that area. You want to add plants and flowers to soften spaces and subliminally remind buyers that life grows here.

Rearrange furniture

Moving furniture to open traffic flow can make a room feel bigger, or arranging it to create a conversation area gives the space purpose. 

Set the mood with lighting

A house that's illuminated says, "Come on in." Open your blinds and curtains to let in natural light, and put the maximum allowable wattage in fixtures to boost illumination.

Accessorize the entryway

Add strategic pieces—a table lamp, artwork, mirror, decorative box—to create a statement when welcoming people into a home.

Author: Editorial Staff, Texas Association of REALTORS®

If you have questions regarding your property, please call us today for a FREE consultation!

As a buyer, time is of the essence

Buying a home isn't a process to be rushed. Yet with all the variables that go into purchasing property—your existing finances, mortgage rates, competition from other buyers, assistance programs, and government policies—the smart buyers are the ones who are ready to jump at the right deal.  To set yourself up for success, have all aspects of the buying process you can control squared away as far advance as possible. That might mean working on your own finances, current housing situation, or applying for assistance programs as early as possible—maybe months ahead of when you start house shopping in earnest.

Make sure you're going into the buying process with a team of professionals to help, as well. That may include knowing a good real estate attorney, researching reputable home inspectors, establishing a relationship with a mortgage broker, and of course, finding a REALTOR® you feel comfortable with. Of first-time home buyers in Texas, 71% said their real estate agent helped them understand the process of buying home and 51% of all buyers said they received better contract terms because of their agent, according to the 2016 Profile of Texas Home buyers and Sellers.

Author: Michael Schrantz, Texas Association of REALTORS®

The most important negotiating tip

There’s a simple thing you can do to put yourself in a powerful negotiating position: If you want something, don’t care about getting it.

Does that sound crazy? Can you see yourself not caring about your dream home, the one you can see yourself blissfully happy in for years to come?

Don't misunderstand me. I'm not suggesting you don’t try to get the house. Not caring means you sit down with your Texas REALTOR® and put together a data-driven offer that makes sense for your situation. Then you divorce yourself from the outcome.

Not caring—removing the emotion—makes your decisions easier because you’ll be assessing objective criteria. Either the seller meets your price or he doesn’t. Either he agrees to make a repair or he doesn’t.

You won’t win every negotiation this way, but you’ll be less likely to pay more than you wanted to or compromise on something that you’ll regret.

There’s no line in the contract that says, Check this box if you really want this house. Focus on the particulars of the deal without caring about the outcome. It’s easier said than done.

Author: Ward Lowe, Texas Association of REALTORS®

If you have questions regarding your property, please call us today for a FREE consultation!

Is there a difference between a credit score and a credit report?

You’ve probably heard of both, but you may not know the difference between them. Credit reports and credit scores are closely related, but they aren’t the same thing. However, both are useful when it’s time for you to buy property, so here’s what you need to know about each.

What’s a credit report?
A credit report shows your credit habits and history. It tracks how much debt you have, including student loans and on credit cards, and when you pay your bills. It may even show information about bills you may not think are related to your creditworthiness, like your utility or cable bills. Credit reports may also show whether you’ve been sued or declared bankruptcy.

You can request your credit report for free. There are three credit-reporting companies, TransUnion, Experian, and Equifax, but you can access any of their reports through annualcreditreport.com. Although you can only request one free report from each company per year, it might be a good idea to stagger the requests rather than pull all three at once so you can monitor your credit throughout the year.

What’s a credit score?
Think of a credit score as the grade you get based on your credit report. Credit scores are not free to obtain like credit reports, but the same three companies provide them. Scores are a three-digit number, and higher scores mean a higher likelihood that you’ll be approved for a mortgage loan.

Scores can also vary based on the source providing it. For example, some credit card companies have started providing cardholders with a credit score as part of their benefits. While these scores can be helpful to track, they are only one tool for determining your creditworthiness, and may be different than what a mortgage lender uses.

What’s the takeaway?
Your credit report and your credit score are two important tools to keep track of when you’re thinking about investing in property. But since the information you get from either can vary, it’s a good idea to work with a professional to understand your creditworthiness. Your Texas REALTOR® can help you find all the tools and professionals you need to put you on the path to homeownership.

Author: Editorial Staff, Texas Association of REALTORS®

Avoid these mistakes between loan approval and closing

You've been careful with your finances, saved for a down payment, and finally received approval for a mortgage loan. It’s time to celebrate, right?

Not yet. Your lender will recheck your credit right before closing. Don't give him or her reason to question your creditworthiness by making these mistakes:

1. Changing jobs
Changing employers could mean delays due to employment and salary verifications. Of course, you shouldn't ignore a great career opportunity. It means only that optional moves should wait.

2. Making a big purchase
Your debt-to-income ratio is an important factor when being considered for a loan. If you add to your debt by purchasing a car or boat, you risk exceeding the ratio that your lender finds acceptable. 

3. Opening credit accounts
You might apply for a credit card so you're ready to buy furniture for your new house. But similar to taking on new debt, applying for a new credit account can harm your mortgage approval. The credit inquiry necessary for the new account will ding your credit score a few points, and the lender might wonder just how much you plan on spending with that new account.

Part of the mortgage process is a final check to ensure you can afford the loan. Neither you nor the lender wants the payments to be a struggle, so don’t give the lender any reason to doubt your creditworthiness.

Author: Ward Lowe, Texas Association of REALTORS®

If you have questions regarding your property, please call us today for a FREE consultation! 

Thinking of selling your home yourself? 

Here’s what you need to know:

If you’re wondering about the value of hiring a Texas REALTOR®, you’re not alone. But before you decide to do a FSBO (for sale by owner), see if you can answer these questions.

How much your home is worth? When it comes to pricing, you can’t rely on estimator websites to give you an accurate value. Those sites don’t have data about what homes are selling for in your neighborhood or how your kitchen remodel affects your price. In addition, it’s easy to let your personal attachment to the property inflate the price. And be careful, because if you price it too high, it will linger on the market. But if you price it too low, you’ll lose out on money.

Can you market your property? You can put a sign in your yard, post your property to a few classified websites, and maybe make some fliers to hang. How many potential buyers do you think that will bring you? Probably not a lot.

Are you ready to show your house? If you do attract potential buyers, you’ll have to keep a flexible schedule to juggle showings. Don’t forget about the safety concerns associated with letting strangers into your home.

Can you avoid legal problems? Real estate transactions are complex, and legal issues come up frequently. One small mistake on your part could cost you big, whether it’s because you’ll lose money or end up in a lawsuit. Be ready to spend time reading through paperwork and researching to make sure you’re not breaking the law.

As you can see, selling your home on your own means investing your time in research, marketing, showing the property, and more tasks that aren’t even mentioned here. That’s probably why 87% of sellers in Texas used a Texas REALTOR® last year.

Texas REALTORS® have access to accurate data to determine the right price for your property. They’re able to market your property more extensively than you could alone. Texas REALTORS® also take care of showings and vet potential buyers for you. And they can call the Texas Association of REALTORS® Legal Hotline, staffed by five attorneys who can answer their questions about real estate law and related matters. Instead of going it alone, talk to a Texas REALTOR®, who has the experience and tools to make your home sale go smoothly.

Author: Editorial Staff, Texas Association of REALTORS®

4 reasons to contact a Texas REALTOR

Before you enter the world of real estate on your own, see if a Texas REALTOR® can help you instead. Here are four reasons to reach out to one.

When you want to know how much your home is worth 
While you could use a home-valuation website that tells you a number, you shouldn’t rely on it alone. These sites often don’t know the details of your property, the current market, and what buyers are looking for in your area. A Texas REALTOR® can help you determine a more accurate price for your property.

When you want help narrowing down your options 
You could spend hours and hours searching for properties online, contacting owners or their agents to see the property, and figuring out whether it’s a good deal. Or, you could hire a Texas REALTOR® to cut through the clutter by determining your needs, finding properties that fit those parameters for you, and setting up tours to see them. On top of that, they can help you figure out if the price is right and what you can afford.

When you need help navigating negotiations 
Not everyone is skilled at negotiations, but Texas REALTORS® are. They’re armed with the most up-to-date information about laws, the market, and more that puts them in a position to negotiate on your behalf with confidence.

When you value your time 
Texas REALTORS® can save you a lot of time and hassles by handling the tasks you don’t have time to manage. For example, Texas REALTORS® have experience marketing properties, which means you don’t have to come up with a plan on your own. They also facilitate and explain the entire transaction process so you don’t have to keep track of every single detail.

Author: Summer Mandell, Texas Association of REALTORS®

If you have questions regarding your property, please call us today for a FREE consultation! 
our home!

Make your offer stand out in a hot market

Real estate markets are very competitive in many parts of Texas. As a buyer, how do you differentiate your offer from others that a seller receives?

Show how serious you are
If the sellers are asking for 1% of the sales price as earnest money, offer 1.5% or 2%. The extra deposit shows sellers that you’re committed to purchasing their property.

Don’t ask for extras
How many contingencies does your offer include? Financing? Selling your current home? While you might not be able to eliminate all contingencies, limit the ones you ask for.

Connect on a personal level
Consider writing a note to the sellers about you and why you love their property, and include that with your offer. This letter isn’t a negotiation tool and should not include anything about contract terms; it’s a way for the sellers to see more just numbers when they see your offer.

Author: Editorial Staff, Texas Association of REALTORS®

3 ways to give sellers your best offer

No one wants to spend more than they have to on a property, but no one wants to lose out on the perfect place. That’s why it’s important to do a little research before making an offer on a home. Take these three steps to present a compelling offer to sellers.

Decide on the right price

Real estate markets are localized, so the sale price of a home across town may have little to do with what a home in another area of town is worth. You can determine the right price by finding out how the property compares to similar homes nearby, what Texas REALTORS® call “comps.” Comps are an important part of determining price because they reflect neighborhood conditions. Your Texas REALTOR® can help you find the best comps to use for the property you want.

Show sellers you’re serious

Hitting the sellers’ perfect price doesn’t guarantee they will accept your offer. Homeowners will consider the amount of earnest money in the proposed contract as well. A higher number shows a higher level of sincerity about the purchase and may place your offer above others.

Be flexible

Some sellers may have a strong preference for when they close on the sale. If you can meet their timeline, your offer gains strength. And when you can help it, stay away from contingencies, or make them as moderate as you can. Why? Put yourself in the seller’s shoes. A slightly lower offer may be more attractive than a higher offer that’s contingent on the buyers needing to sell their own home.

Many things combine to make an attractive offer. Your Texas REALTOR® can help put together an offer that gives you the best chance of getting the home you want at terms that are favorable to you.

Author: Summer Mandell, Texas Association of REALTORS®

If you have questions regarding your property, please call us today for a FREE consultation regarding your home!