How can you improve your home for resale value and personal enjoyment?
We’re joined by an expert today to give you an idea.
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How Realtors Provide Such Value to Consumers
Today, Namir George from the Michigan Institute of Real Estate joins me to discuss
how much Realtors go through to become professionals and why consumers should value their efforts.
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Real estate agents have to undergo a lot of education to become proficient in their field, and many consumers don’t fully understand what it takes for an agent to get to the point of being a licensed professional. Today Namir George from the Michigan Institute of Real Estate is here to shed some insight into what exactly agents go through to become real estate agents.
The real estate industry is regulated by the state of Michigan, and as part of their regulations, they have a straightforward set of rules that a Realtor has to abide by. They have to attend classes and ongoing courses in order to know the latest developments within the industry.
To consumers who are trying to buy or sell real estate, it sounds easy, but determining the price of a home and putting it on the market is only 40% or 50% of the work that’s involved with putting a transaction together. If the Realtor is going to represent a seller legally, they’re obligated to put clauses and contingencies into your contract that will serve the seller. When a buyer’s agent represents a client, they have to structure the transaction to serve the best interests of the client.
On top of the state’s rules, Realtors also have to abide by the Code of Ethics, which is even tougher than the state. If you act unethically as a Realtor, you’ll have to pay a fine to the Association of Realtors. Just today, George spent hours in class going through legal issues that could have been avoided had the parties involved had full disclosure and communicated effectively.
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Determining the price of a home and putting it on the market
is only 40% or 50% of the work that’s involved
with putting a transaction together.
”
We run into so many issues during transactions. For example, For Sale By Owner (FSBO) sellers who don’t even know what a seller’s disclosure is or provide one to the buyer before they sign the purchase agreement. The buyer then would have to withdraw from the transaction and the seller has to refund their deposit.
That’s why it’s so important that consumers take advantage of the services we provide. According to a survey from the National Association of Realtors, when a FSBO sells a property, they get 10% to 12% less than the market value of their home. They might think they got a good price for it, but they didn’t. A Realtor usually charges you less than that, they’ll get you the full price of your home, and even with the commission fee, you’re still ahead of the game. They do all the work for you.
George is always contributing to the industry and is a valued member of my community. If you have any questions for him, visit his website here.
If you know someone who wants to buy, sell, invest, or work in real estate, give us a call. We can help you align with the right real estate agent anywhere in the world.
Options for Sellers Whose Homes Don’t Appraise
If you’re a seller, what happens if your house doesn’t appraise?
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What happens if your home doesn’t appraise?
Here to help me discuss today’s topic is Steve Stork of Summit Funding. Steve has been working with us for about 10 years, and we consider him an expert on this subject. Together, we came up with a list of things that can happen if your house doesn’t appraise:
- We can split the value.
- We can ask the buyer to bring cash.
- We can lower the price and then close.
- We can choose not to close. More often than not, you’ll see a section on an appraisal report entitled “pending sales,” which refers to the comparable homes to yours that, like yours, are under contract. Because they don’t yet have a sales date, pending sales are not given any weight in terms of the value of your property. So, by calling that listing and finding out where these pending sales are in the process may give you some insight into a potential comparable you can add to the mix once it closes. At that time, you can send the appraiser back out to the home to reinspect the property and use the comparable to help calculate the overall sales value.
- We can wait for more comps to sell if prices are going up.
- We can also refute the appraisal if the buyer will cooperate. If you have any additional comparables the appraiser might have missed, you could bring those to the attention of the appraiser, possibly earning some value for your property.
- We can ask the buyer to reapply with a different lender.
- If it was an FHA appraisal, the appraisal sticks to the property for four months. Unfortunately, there’s no way to dispute that appraisal; you just have to wait until that period is over and to take another FHA offer.
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Because they don’t yet have a sales date, pending sales are
not given any weight in terms of the value of your property.
”
If you have any questions for us, feel free to reach out. We are here to add value to your real estate experience.
What Happens if the House You’re Buying Doesn’t Appraise?
What should you do when the house you’re buying doesn’t appraise?
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If you’ve found the perfect home and submitted an offer, what happens if the property doesn’t appraise? Well, first of all, don’t lose hope. There are many ways a deal can still proceed even after an appraisal comes in low, and here are just a few:
- Ask the seller to lower the price.
- Pay the difference in cash.
- Get a new lender (and a new appraisal).
- Refute the appraisal.
- Wait for comparable properties to rise in value, then order another appraisal.
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Our team will do everything we can
to help arrange a solution.
”
Of course, each of these options would need to be approved by a lender. The good news is that appraisals don’t come in low very often. If and when they do, though, our team will do everything we can to help you arrange a solution.
As always, if you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.
How Pet Owners Can Still Sell Their Homes for Top Dollar
As a pet owner, there are three tips you must remember in order to sell your home for top dollar.
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How do you prepare your for-sale home if you have pets?
The good news is, many homebuyers are out there looking for a pet-friendly home. Two out of three of us have pets, and 61% of pet owners say they have trouble finding a home that’s a good match for their pet. In fact, a recent survey said that 31% of pet owners won’t make an offer on a home if it doesn’t suit their pet. In other words, if your home is attractive to pet owners, it will be available to a larger pool of buyers.
On the other hand, 67% of Realtors believe having a pet in your home makes it harder to sell. So what can you do? Here are the three top tips we recommend:
1. Repair any damage. Floors, walls, doors, and the yard are typical areas pets love to chew, scratch, and dig up. Repairing this damage is an investment that will pay for itself many times over because it will earn you a higher sale price.
2. Hire a professional to remove pet odors. Many pet owners are less sensitive to odors in their homes than prospective buyers are, which is why you should hire a professional cleaning crew to clean any carpets, rugs, or upholstery that have absorbed pet odors. Once you’re done cleaning, ask a friend or Realtor to perform a sniff assessment to see if the job is done.
3. Take your pet out during showings. Some people are afraid of animals. Others might be allergic. Regardless of the time, money, and effort you put into cleaning your home, many buyers may still be prejudiced if they know a pet lives there. Also, your pet might be scared with so many strangers in your home. Additionally, remove any pet objects such as toys, food bowls, or scratching posts.
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You’ll be able to sell your home for top dollar,
whether your buyer is a pet owner or not.
”
By following these three simple guidelines, you’ll be able to sell your home for top dollar, whether your buyer is a pet owner or not. We cherish our pets and our homes, and we hope this merges both so you can have a hassle-free home sale as well. You can also find a pet sitter instruction form here.
If you have any other questions or concerns regarding your home sale, don’t hesitate to reach out to us. We’d love to help you.
How Do Agents’ Services Impact Commissions?
How do an agent’s services impact their commissions? Let’s discuss.
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We’re on-site at the old Inca Ruins in Peru, so we thought we’d spice up today’s message on commissions by adding some footage of Peru’s breathtaking scenery.
To start, let’s define commissions. Commissions are a fee for service paid by the home seller and are based on a percentage of the total sale price. Different agents offer different services, which can include, but are not limited to:
- Market analytics
- Photography
- Standard or trademark marketing plans
- Videography
- Staging
- Geo-farming
- Digital retargeting
- Inside and outside sales
- Calls to prospective buyers
- And many more concierge services
If you’re curious about the range of services we offer, you’d like to see our commissions menu, or you have any other questions related to real estate, give us a call at (734) 669-0337 or send us an email at [email protected]. We look forward to helping you!
Everything You Need to Know About HOAs
Buying a home within a homeowners association comes with its own unique set of benefits, challenges, and costs.
Here’s everything you need to know about them.
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Today we are at the Jonathan Club in Los Angeles, and we will be discussing what you need to know about HOAs (homeowners associations) before you buy.
Yes, homeowners associations can be a very big deal, especially if you don’t take the time to learn the facts about your specific homeowners association.
Why?
Every one of them is different, and they each come with a specific set of rules and regulations with which you must abide. If you are going to buy that perfect house, you MUST take the time to research and investigate its homeowners association; otherwise, you could, at some point, lose your home.
But don’t worry—we’re here to help you with that. So here is a quick overview of how a homeowners association works, the do’s and don’ts, the pros and cons of a homeowners association, and the one thing you must ALWAYS do if you don’t want to risk losing your home.
First, what is a homeowners association? The purpose of an HOA is to make and enforce rules and regulations for the properties within a designated subdivision. The association’s goal is to ensure that living in the area or on the property is pleasant for all residents.
Those who purchase a home in a subdivision that has an HOA pay membership dues called HOA fees. They will also be required to follow all the existing and newly voted-in rules and regulations or face fines and penalties.
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Make sure you read the CC&Rs.
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When dealing with an HOA, you will want to read Covenants, Conditions, & Restrictions (CC&Rs). These are the rules that are placed on the properties within the HOA-governed subdivision. These rules and limits are determined by a builder, developer, or the managing members of the homeowners association for that neighborhood.
If you decide to live in an HOA neighborhood, you might have to give up some of your rights and freedoms to do so. Therefore, you have to ask yourself a few questions before making that final decision about whether or not you really want to live in that HOA neighborhood. For example:
- Do I have any amenities that aren’t allowed under this HOA?
- Am I willing to pay a higher cost to live in this HOA subdivision?
- How will I feel about being told I can’t do something I normally do or would like to do? (think paint colors, yard decor, etc.)
Any given HOA will have their own individual rules and regulations, so learn what they are for each HOA subdivision you are considering. Just because you learned the HOA rules for that first house you passed on doesn’t mean all are the same. You need to research and investigate the rules and regulations for each different HOA neighborhood.
Most HOA restrictions are related to the following:
- Landscaping and outdoor decor
- Smoking
- Parking
- Noise levels
- Fencing
- Square footage
- Pets
- Home use
- Amenities
Generally, the HOA is responsible for taking care of all the common area maintenance, upkeep, and repairs. For condos, they are also generally responsible for all major exterior replacements like roofs, fencing, plumbing, etc.
If you have any additional questions for me about HOAs or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.
Sellers: Why a home Warranty? Presented by Toth Team
Stacey Kraft with Home Warranty of America is with me today
to answer some questions on all things seller home warranties today.
If you’re a buyer looking at a home warranty, click here!
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Today’s topic is an exploration into home warranties for sellers and Stacey Kraft from Home Warranty of America is joining us today to lend her expertise in this area. If you missed our first conversation about buyer warranties, take a look here!
Q: First, what is a home warranty?
A: Home warranties are going to cover the mechanical systems in your home, and there’s an acronym that will make it easy to remember each of them: P.E.A.C.H., which is broken down into Plumbing, Electrical, Appliances, Cooling, and Heating.
Q: If I’m a seller, why would I want all of that to be covered?
A: Protection for home sellers is necessary because hiccups can sometimes occur without warning, whether they’re mechanical or otherwise. The last thing a seller wants to worry about when their home is for sale is shelling out money for repairs.
Q: An example of that might be your hot water tank going out. What would a new hot water tank ordinarily cost?
A: I see claim notices every day, and on average, a water heater will run you about $1,000.
Q: A warranty, then, will give a seller peace of mind?
A: Yes, the security blanket that a home warranty offers gives the seller peace of mind, and not only that, it’s a good foundation for when the buyer takes over. Since we have free seller’s coverage on the home, we have a history with it.
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Protection for home sellers is necessary.
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Q. From the point of closing and beyond, how long will that coverage last for the buyer?
A: The new-buyer plans are for 13 months or you can buy a two- or three-year plan up front if you wish to.
Q. If an issue were to arise with the home, what would the seller do from there?
A: The seller will call our 800 number and file a claim. Then, our claims representative will set up a time for a contractor to come to the home and assess the situation. If it’s determined that the repair can be accomplished in a cost-effective manner, we’ll repair it. If the issue is beyond repair, we’ll replace the item.
Stacey and Home Warranty of America have always serviced our needs in a highly competent way, and have been quick to action in getting our claims addressed. Without a doubt, Home Warranty of America is a wonderful resource for you if you’re selling your home.
If you have any questions for Stacey, go ahead and give her a call at (248) 330-1076. And if you or someone you know would like help with any real estate needs, please give us a call at 866-OWN-THIS or email us at [email protected]. We look forward to hearing from you!
Buyers: Why a Home Warranty? Presented by Toth Team
Why should you have a home warranty? Our go-to warranty expert is here to explain.
If you’re a seller looking at a home warranty, click here!
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I’m joined today by Stacey Kraft of Home Warranty of America, our team’s expert on home warranties. She’ll be talking with us about why it’s important for homebuyers to get a home warranty when they purchase a home.
A home warranty covers the mechanical systems of your home. To easily remember what’s covered, just think of PEACH: Plumbing, Electrical, Appliances, Cooling, and Heating.
Ideally, coverage should begin at closing—things can and do go wrong in the first week or two of owning a house. Your home is usually being used differently in the beginning, so it’s a good idea to have a warranty from the outset.
Stacey’s company offers 13 months of coverage, while most only offer 12 months. Things always seem to go wrong on day 366, so they give you an extra month as a cushion.
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Just think of PEACH:
Plumbing, Electrical, Appliances, Cooling, and Heating.
”
If you’re comparing companies, look for things such as age restrictions. If you have a 30-year-old furnace, for example, you want to be able to have it replaced if it goes bad.
I’d like to thank Stacey for giving us some great insight. Feel free to reach out to her at (248) 330-1076.
If you have any questions or would like more information, contact me. I look forward to hearing from you soon.
4 Ways to Make Buyers Fawn Over Your Home
If you’re ready to sell your home, there are a few things you can do in order to make buyers fall in love with it.
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Are you ready to make a move? There are four ways to make buyers fall in love with your home.
First, make it move-in ready—think clean, organized, and clutter-free spaces. Second, bring in some plants, because greenery adds instant style. Third, up the “dream home” factor and highlight any unique features. Lastly, don’t forget to call your local Keller Williams agent!
If you have any questions or if you’d like to get started with the home selling process, don’t hesitate to give us a call. We’d love to help you.
If you’re a homeowner and you’ve found a fixer, what should you improve? Or if you have a house you want to get ready for the market, what should you do? Today we’re joined by Leslie Cascino, founder and principal designer of Bonnie Wu Design, to help answer these questions for you. To give you a guideline, we’ll show you a complete before/after redesign of a sample home she just completed.
Follow along in the video above to see the full tour. For your convenience, we’ve provided timestamps so you can skip ahead to various sections:
1:39 – Swapping the living room and dining room to improve the space for resale value
2:45 – Rebuilding the fireplace for resale value and personal enjoyment
3:37 – Adding square footage to the new living room
4:11 – How the windows at the back of the house extend the living space
4:33 – Opening up the kitchen to the rest of the house and orienting it toward the backyard
5:36 – Dropping the plywood panels and installing overhead lighting
6:17 – Converting the den into a home office and guest bedroom
6:58 – Creating the master suite
7:54 – Wrapping things up
If you have any home design questions for Leslie, go ahead and visit her website here.
If you have any other real estate questions, don’t hesitate to give us a call or send us an email. We’d love to help you.