Real Estate Blog

REALTORS® are often asked, “What is the best way to show and sell a home?”  Almost every agent can tell you a story about meeting with a prospective seller who has just completed a lot of remodeling and repair work to prepare their home for the market. It can be difficult for a real estate agent to tell the seller that their renovations were not the most effective alterations to improve the marketability of their home.
 If you are considering making any improvements prior to selling your home, the best approach is to consult with your agent before you make any changes.  An experienced Realtor can provide you with information that can help you decide what kind of improvements will set the stage for a sale.  Whether it is paint and wallpaper, remodeling the bathrooms, or updating the kitchen, your agent can guide you toward “neutral” choices that can assist the buyers to imagine themselves as the new owners of your home.

In every real estate market, there are buyers who make offers that are far below the current market value.  How should you react if your agent brings you one of these “low balls”?
 If your home is priced well, you can reject the offer and be reasonably confident that a better one will follow.  In a buyers’ market, however, you may not have that luxury.  Try to get an idea of the buyer’s overall strategy, and ask your agent for advice.  Do they really want your house or will they move on to another property if you make a counter offer?  Can they afford to pay a higher price?  Are there ways to close the gap with a small owner take-back, or with terms that will increase your bottom line?  It may be necessary to take a hard look at your asking price.  If your price is on the high side, the offer may not be that unreasonable.  I recommend that you don’t “just say no” to a low offer until you have explored all the options.

REALTORS® have traditionally represented the sellers who paid the entire brokerage fee from the proceeds from the sale.  Many states now require all licensed real estate agents to provide their buyers and sellers with a written disclosure of agency or a declaration of whom they are representing in the transaction.
 The regulations require that the agency disclosure be made at the “first substantive contact” between an agent and the consumer.  An agent who is representing a buyer or seller must have a written agency agreement that includes a termination date, a fair housing statement, and an exact description of agency relationship.
 Such disclosure requirements are good for the buyers, sellers and agents.  A recent Federal Trade Commission poll found that 72% of buyers did not realize that “their” agent, in fact, represented the seller.  The disclosure requirement clarifies the real estate agent’s role, especially for buyers.

Seller’s remorse is not a common affliction, but it does happen.  There are various reasons you may be bitten by the “remorse bug” after you’ve accepted an offer. It may be difficult to move for sentimental reasons, or because the circumstances that led you to sell in the first place have changed.  You may have a nagging suspicion that you undervalued your home.  Before you place a call to your agent asking to back out of the agreement, however, think carefully about the consequences.
      As with any legal proceedings, a sudden variation from the contract can engender significant penalties.  Depending on the terms of your agreement, you could be liable for “costs and damages” based on “incompletion of specific performance” (namely the selling of your home) and even “costs of sale” that would oblige you to pay the agent’s commission.  If you experience an attack of seller’s remorse, it’s best to take a breath and gain some perspective by remembering your motivation to sell in the first place.  Don’t let a common reaction interfere with your intended life change.