The home of our dreams vs. the dump that has a low price!

How low can ya' go?

Skip, we have found the home of our dreams, and we have decided to offer 50K under what they are asking because it is a "buyers market"!  Let's ask a few key questions before we go too far...
1. Are the sellers close to the true market value?
2. Do the sellers hold a mortgage that will prevent them from accepting a low offer?
3. Have the sellers done improvements to justify their price? 
4. Has the seller gone through multiple price reductions, and when was the last reduction ?
5. If you were the seller, how would you react to your offer?

 "Hey Skip, isn't any offer is better than no offer?"....Yes!  I have heard this statement a lot with the economy like it has been in the last few years.  Any agent who has some experience under their belt will tell you that AN offer is better than NO offer; just keep in mind, this is a place to get the negotiations started.
"I have been listening to the media, and they are saying the deals are better than they ever have been in years past, so I think I should come in really low and get a steal of a deal."  Yes, I agree, so let's just take a scenario to illustrate my point...the sellers of the home you have fallen in love with have been reducing the price of their home with the fall of the market, and I show that to you by showing you their price drops over the time the seller has had the home listed.  I, as your agent, have shown you the Current Market Analysis which reveals the sellers have the price very close, or below, it's true SOLD value.  You also note that the home has a long list of upgrades like granite countertops, hardwood flooring, sprinklers, etc., and has been well-maintained, which does not seem to match the other homes you have been looking at in your price range. So now, you tell me, is the 50K under asking price offer a reasonable expectation on our part, as a potential buyer?  I would say no.  If you offer something that low, you should expect the seller to come back really strong on their original price, with the thought you are not a serious buyer.  If you want to come in really low on an offer, one way to shore up the seller's confidence in your offer is to increase your Ernest Money Deposit or EMD, which is usually 1% or $1000, to let's say $5000, which would make the seller think you were more serious and really capable of purchasing their home.  Make sure you have a proof of funds and/or a pre-qualification letter from your lender to show your ability to purchase their home. Keep in mind some of this is a mind game on our par,t and if we can stack the cards in our favor, we should.  This is a wonderful time to buy with interest rates so low and the home prices really low.  It has never been a better time to buy.  Just keep in mind you need all the facts to really get the best deal out there!

Grace and Peace...

  

 

Skip Geiser

(850) 221-6442

www.SkipGeiser.com

SkipGeiser@live.com

The Geiser Team with Main Street Properties

        

      

Buying our first home.....scary or an exciting new step?

 

   "Skip, I am looking to buy our first home but I just don't know how this process works...Can you Help?"  Wow, I am glad you asked!  When you have a buyer's agent working for YOU, what you get is a partner that is going to look out for your best interests.  "But, Skip, I don't think I can afford to pay you to help me...I mean, I am on a budget, and I want to get the most bang for my buck!"  I agree, and that is why you need to have a full-time Realtor working just for you...so you can get the most house for your money.  I mean do you want to look at foreclosures, short sales or typical owner-occupied homes?  Does your mortgage allow you to get a home that may need repairs, and which repairs?  What if you qualify for a reduced rate on your mortgage, and which homes will qualify for these programs?  You see, you as the buyer you do not pay the agent...the seller is typically responsible for that fee.  So, as a buyer, you are leaving money on the table, so to speak, by not having a professional working for you.  "But what about the for-sale-by-owners, will I be missing out on them?"  No,  if you have a buyer's agreement with your agent, you get all the homes on the market.  Plus, how do you know if you are you are getting a good deal when working with a for-sale-by-owner?  I, as your agent, can help make sure you are protected.  As a Realtor, I took an oath to hold my clients' best interest above my own, and I believe we, as Realtors, offer a very valuable service...This is most likely the largest asset you will own in your lifetime, GET SOME HELP!  Think about it.  I don't cost you anything, and have the potential of saving you thousands of dollars. How much are you willing to lose?

Grace & Peace...

Skip Geiser

(850) 221-6442

www.SkipGeiser.com

The Geiser Team with Main Street Properties 

 

"I will sell your house or I will buy it"... sounds too good to be true? Well, probably because it is!

 

Ok, as you read the next sentence you have to use your radio salesman voice... "I will sell your house, or I will buy it." Sounds too good to be true? Well, probably because it is! Oh technically will they buy it, sure, but the real question is will you sell it for what they want to buy it for?  Let us keep in mind you are dealing with a person who is running a business, and that person can't give money or time away or they won't be running a business for long.  So what are THEY going to get out of this deal?  Usually when I hear this idea being "sold" the agent will offer to sell your most prized possession and tell you "well you should list you home with me because if I don't sell it I will buy it" ...of course, at a large amount BELOW market value, using their title company, and only if you allow them to choose ALL the selling factors during the time they have your home listed... So after your home doesn't sell, what have you really agreed to?  Your home will get appraised, or worse yet a Current Market Analysis done, to determine the value of your home. Then, the agent gets to knock off a certain percentage so they can resell it for a fast turn around and profit, or better yet, keep it for a rental of their own. On a side note, why would you as a seller want to give your agent any good reason not to sell your home, so they can can make money even when it doesn't sell?

 

Skip Geiser

(850) 221-6442

www.SkipGeiser.com

SkipGeiser@live.com

The Geiser Team with Main Street Properties

             

Does it matter what company an agent is with?

"Skip, does it matter what company an agent works with?"  Yes!  An agent will only be as flexible as the brokerage he works with.  You may ask, "Why do I care?"  Well, for instance, if the Brokerage only allows the agents to split the commission on the MLS to the cooperating brokerage, let's just say at 2.5%, even if you agree to list at 7% or 8%, then that would be a bad deal for you.  Or, what if the brokerage requires a transaction fee ranging up to $500 dollars--which the agent can't change.  There are a lot of things the brokerage that an agent works with may impose that will affect the client in adverse or positive ways.  If the brokerage is supportive on training and new technology, then your agent will remain on the cutting edge--allowing him to service your needs at the highest level possible.  Does the brokerage impose a large fee to withdraw the contract?  Does the brokerage charge a fee to the buyers to submit a contract?

"So, what are you saying?  Should I pick an agent based on the Brokerage they work with or by how much I like the agent?"   Well...BOTH!  You need to love your agent, and you need to understand his brokerage and the limitations they have set on the agents they have chosen to work with.  If you don't like the arrangement...find a new agent.  

Grace & Peace...

Skip Geiser

(850) 221-6442

www.SkipGeiser.com

SkipGeiser@live.com

The Geiser Team with Main Street Properties

 

Kitchen, Clutter & Closing...

Here we go again, Skip...you don't seem to understand.  I hired you to sell my house not reorganize my kitchen! 

When you hired me, you hired me to get you to the closing table. 

Yes, yes I know.  I want you to sell my house, but what in the world does my refrigerator magnets have to do with it? 

When a buyer enters a home, they want a clean canvas to work from.  They really do not care that little Billy is good at coloring.  So, keep in mind that big white box in your kitchen is a huge part of how much the buyers are going to like your kitchen...CLEAN it off!  You also need to clear your kitchen counters.  You know the spice rack you got when you moved in...and still, to this day, the spices have the wrappers on them!  Buyers want to have a large amount of counter space.  If your toaster, coffee maker, bread machine, spice rack, and three months of bills are on the counters, they won't be able to see how much space they will have to prepare the Christmas dinner in their beautiful, new house this year.  Clean...clean...clean.  Make it spotless.  Who wants to buy a house that has a dirty kitchen? 

If you have priced your home correctly, you should only have to keep it spotless for a short period of time...We will talk price in a later post! 

One more thought...Go ahead and pack.  You know you are moving right, so if you are not going to use it, then go ahead and pack it.  This will allow the buyers to see the true potential of the space.  Always keep in mind the fact that you only have a few seconds to woo the buyers...use the time well!

Grace & Peace...

Skip Geiser

 www.SkipGeiser.com

        SkipGeiser@live.com   

   

Tortoise or the Hare...Which Agent Do You Have?

As the old story goes, the tortoise wins the race after the lazy hare falls asleep during the middle of the race.  Ok, Skip, where are you going with this?  I have found there are many different "styles" of agents. As an agent, you can be fast out of the gate but not have the endurance to run the race.  Yet, on the other end of the spectrum, there are many agents who fail to get excited enough to get the job done. 

So what does that mean?  Well, I would say you need balance--somewhere between the tortoise and the hare.  What is balance?  Being excited, prepared, and knowledgeable.  Excited about the opportunity to work together to reach your goals.  You see, your goals are what we use to gauge how we are going to attack all the challenges of buying and selling homes.  Your goals dictate how fast or how slow we need to proceed.  Prepared means ready to go...I have done my homework and am ready for the test.  Just like a man heading out to do battle, I need to have already studied the battlefield and have a plan as to what we are going to do to reach your goals.  Knowledgeable has the idea that this is not my first rodeo.  I have faced the trial before and have come out victorious.  The challenges that are about to face us are not going to stop us because I have faced them before and overcome them previously.  Just like if you went on a safari in South America, you would need a guide--someone who knew the ropes.  Real Estate is the same idea....Let me be that guide in your Pensacola Home Safari!

Grace & Peace...

Skip Geiser

(850)221-6442

www.SkipGeiser.com

SkipGeiser@live.com

 

Closing & Hurricane....Never a good combination!

Let me just start this by saying I have been known by many of my closest friends and family to make statements like I love a good hurricane, or I sure hope it comes here! I know, I know what you are thinking...CRAZY...Is this guy out of his mind?  The answer to that question may...no...no WILL depend on who you ask. You may also ask what constitutes a "good" hurricane.  Well, I would definitely say where nobody is hurt or killed, but I also realize that is a tall order. Because we live here on the beautiful Gulf Coast of Florida--you know, warm, sunny beaches, beautiful sunsets and HURRICANES are "all part and parcel of the whole genie gig" (from Aladdin just in case that one slipped by ya). I have lived here long enough to see a huge amount of destruction caused by hurricanes, and yet I still live here.  I will also add here, for all you readers who are now thinking they are just crazy for living in a place you can even have hurricanes, let's just go back a few weeks to our Capital where they had a big earthquake, or Missouri & Oklahoma where they had devastating tornadoes...so, just try to keep in mind that down here I get about a weeks' warning before a hurricane is going to come anywhere near here...not so much on the tornado and earthquake side! I would also like to reference my other post on how to prepare for a hurricane...if you live here, you need to know how to be ready.

The topic we are talking about today is closing your real-estate transaction while there is a storm in the Gulf...not likely going to happen, unless you get this information that I'm offering. You see, if there is a storm in the Gulf, you can't get to the closing table because the insurance companies will not write a policy, or shall we say, start your new policy until the storm is safely past.  So what to do...down here when you have a contract on a house during hurricane season, go ahead and lock your policy in (i.e. pay for it) and then you will be allowed to close. Long story short--seek the help of a good agent to avoid the many pitfalls in real estate--you won't be sorry you did!

 Grace & Peace...

Skip Geiser 

www.SkipGeiser.com 

(850) 221-6442