Tag: Is

How to sell your house – Part 1: Price is more than just a number from a CMA or AVM

Pricing your home effectively is one ofthe most important things you do when preparing to sell your home.

There is no magic formula.

But you don'thave a system you might as well pick a number out ofthe sky and consult a Magic 8-Ball.

This is the first in a three-part series where we're gonna talk about price.

The other two coming up are Competitionand Condition.

Stay tuned to our channel, subscribe below, and makesure you get onto those as soon as we publish them.

This video though willfocus on that five hundred-pound gorilla [animal scream] inthe room and that's Price.

Everybody wants to talk aboutprice.

Everybody has an opinion on price.

We're also gonna talk about thedifference between an AVM or Automated Value Model and a CMA orComparative Market Analysis.

We're gonna discuss the fundamentals ofprice and value and who determines which.

And we're going totalk about your choices as a seller.

There's a lot of talk today, from the bigNational Association of Realtors all the way down to the local level, totalk about accuracy matter.

Accurate data matters.

That'strue.

That's important, but trusting that one exclusive source that whether it'san AVM or a CMA, I don't care where it came from, trusting one source above all others isa mistake.

Take all the information, all the datathat you can pull in, and then make a human decision.

Take that [data] and do what we call is agut-check check.

Does it make sense? Is it accurate? Is itrelevant? Is it realistic? We'll get into all that in a minute butfirst I want to make sure that we touch on one important thing.

And that's establishing the basicfundamentals of an open marketplace.

Not real estate, specifically, but an open marketplaceanywhere.

[Question] Who sets the price? [Answer] That's the person with the product or providing theservice.

That's the person who has the thing that people want to buy.

[Question] Who sets the value? [Answer] The market sets thevalue.

The buyer sets the value.

The personwilling to pay you or pay someone for that product or service is the onewho sets the value.

Do yourself a favor and get someone in the door that understands how the market works, not how a computer program works, how price is established and value is establishedand the relationship between the two.

When it comes to setting price for a home two terms generally come out and that'sit an AVM and a CMA The AVM is an AutomatedValuation Model.

You don't hear this quite as much, it's alittle bit more of an "inside baseball" thing.

But most people will have heard of a CMA, a comparative market analysis.

Now whatthat is and what the AVM is, they're basicallythe same thing.

They take data from listings that haveeither sold or withdrawn or on the market currently.

They pull them in and they do someaveraging they do some medium pricing and then they spit out a number.

They giveyou a bunch of nice fancy charts and all kinds of other different things.

But they're all basically the same thing.

Everybody uses an AVM or a CMA whether or not they realize it or not.

There are those that you pay for.

There arethose that come with your MLS.

Even some agencies and brokerages havetheir own model.

There are some famous AutomatedValuation Models out there like the one from Zillow called a Zestimate.

And just like the Zestimate, everyAutomated Valuation Model that is used by agent or anybody elsehas its limitations.

It has its pluses and it hasits minuses.

So what you have is a couple situations:one is you have an agent who just uses their system exclusively.

Whether it's through their MLS or through theircompany or they pay for it, whatever.

They just use whatever number comes outof the machine.

And they go with that.

Because that's what's on the printedpage and that's what they're gonna present to you.

When they sit down for their half hourlong listing presentation about how wonderful they are.

[clapping] The second type a situation that you'relikely to find is the agent who does all that samestuff that the first one does but now they just make arbitrary changesto the numbers just because they don't want to seem like they're following acomputer model.

There's no real fact or analysis or anyother type thing behind it.

They just don't want to have the exactsame number.

So they'll go up or down, sometimes only a matter of a couple hundreddollars.

But just so that seems like they're incharge of this thing and "well that computer is exactly what it'scracked up to be.

But I'm the one you need hire because I'm alittle bit smarter than the computer.

Now the really bad situation that youwant to avoid are the agents that cook the books.

They're the ones that inflate the price of the house in order to entice you as a seller to go withthem.

They just want to get the listing thenthey're gonna beat the crap outta you for the next couple months about trying to lower the price.

But it's notthe agent and it's not you who determines thatvalue.

The buyer does.

The market does.

So the first step in theprocess is to Gather Data.

Include your local MLS becausethere is information in there that just quite frankly isn't available anywhereelse.

[For instance] you can get information about sellerconcessions.

So just because the sales price was X amount of dollars thesellers kicked in 10 grand on seller subsidies to help the buyerswith closing costs.

Now what that does is that, in effect,means that they got a lesser price for their home.

It doesn't show up onthe sales price because that's not how it's financed not how it works out in the end.

But thenet back to the seller is less.

You as a seller need to understand that it'syour net that's most important not the price.

There are a lotof things that happen after that initial agreement on price that can pull money away from you.

Thenext is competition.

You have to know the competition.

Nowcompetition isn't just the ones [homes] that are on themarket right now or under contract right now.

It's everything.

It's the listings that sold, that's competitionfolks because everybody's looking at that.

Your buyers across the other end of thetable are looking at the solds as well in order to tabulate calculatethe offer that they're going to make.

So youneed to look at that too.

That's your competition.

The next placeto look are those big/nasty/mean portals that everybody likes to talk about.

That's your Zillow and your Trulia andyour Realtor.

Com in any other one that you can think of.

You've probablyalready been there and run Zestimate or some other typeup Automated Valuation Model to see what your home is worth in orderto prepare yourselves for selling.

Guess what? Buyers are doing the samething! Now they [AVMs] may be way off the mark butthat doesn't mean they're not important.

You need to pull them in.

You're in gather dataphase not analysis phase.

You're better off having it.

Not needingit, than needing it and not having it.

Next up is seeking input.

No one knows everythingabout every neighborhood in every step town or every area.

You can't! It's impossible.

Thatmeans talking to appraisers.

That means talking to inspectors.

That means talkingto other people in the area.

Neighbors, agents who have sold otherhomes in that area, agents who have rented other homes inthat area, is there a special assessment that affects this property versus some of the others.

Two almost identical houses in two different neighborhoods:one has a special assessment and one does not.

It means it costs more live at one then theother.

The last portion is a gut-check.

This is the mostimportant piece of all of this.

Does it pass the sniff test? Did we missanything? Take a look at all the things that youpulled in to try and figure out, does this even seem right? Am I.

Does this just seem way low? Does it seem way high? Does this seem right? Do wehave all the information we need in order to make a decision? When I wasin Baghdad in 2008, I had an intelligence officer cometo me recommending that we take this certain bridge with our convoy to get across the TigrisRiver.

He saw that is the best option.

I saw itis a pretty terrible option because our United States Air Forceeliminated that bridge from existence in 2003.

[jet noise.

Explosion!!!] You need to have that got check andyou need to go ask somebody before you go making recommendations that are way off the mark.

The next stepafter gathering all the data is analyzing the data.

Now is when youstart to see some patterns emerge.

You start to see some price ranges.

Youstart to see some commonalities, some features you start to see thatcertain home start to be priced a certain way.

And when they're priced a certain way theysell in a certain time frame.

Now is when you start to develop yourCourses Of Action, your COAs.

Condition and Competition are criticaland again we're gonna talk about those in future videos.

But if the comparable properties, from acertain time frame at a certain price were of far worse condition or farbetter condition then the home that you're trying to sell,that's going to have an impact on the price that you establish and the value that the market is willingto pay.

You are analyzing the data for relevance.

Are you using the comp rules that youshould be? Is there a neighborhood or a home or a set of homesthat you just missed? A very relevant situation here inLoudon County are is the new home construction versus the very recent construction, so you couldhave a neighborhood it's only 4 or 5 years oldcompared to a new home right down the road.

The market couldperceive more value by getting custom features built to suit than a home that is already built and hasthe features that you like and not necessarily the ones that they want.

Afteryou gather the data and analyze the data, it's time for us tomake a recommendation.

Our goal is to give you the information,education, and advice you need in order to make the best decisions.

We're gonna give you a Course Of Action that we think is the main one that youshould focus on based on what we know.

Today.

But we're alsogonna give you some options that show you what might happen if.

Ifthis happens, than that.

If this happens, then you needto do that.

If you'd like this you need to do that.

We're gonna give me some options.

So make sure that you understand thatthere are pluses and minuses for pricing high and pricing low.

The choice is ultimatelyyours but I would caution you not to pick the agent that just comes in with the highestprice.

Every decision has Strengths Weaknesses Opportunities and Threats.

[SWOT Analysis] Understand the full big picture and hiresomebody that can help you understand that andmaybe point out some things you haven't thought of.

You are paying for maximum effort andexceptional results.

Why settle for average? Why settle forthe agents who are gonna sit back, rely on one system, generate a number, pump that out to you, cross your fingers,set it, forget it, post and pray, sit back andsee what happens? There is no secret sauce.

There is nosecret family recipe.

It's all about understanding thefundamentals.

Understanding the relationship between Price and Value.

Gathering the best data.

Analyzing thatdata making sure that it's accurate andrelevant.

And then making recommendations based on what is best for you.

Giving youthe information, education, and advice to enable you to make great decisions.

That's our purpose here.

and thank you for watching this video,the first of three.

[sad music playing and high squeaky altered voice] so.

Several things that interrupted our shooting tonight and have taken.

Uh.

Us into.

[normal voice] It's after one o'clock in the morning and we're still here shooting because well.

I don't quit.

That's just not in ournature.

so have any other agents are willing todo that?!?.

[blooper reel] has an opinion on what a home to should.

Dang it! Ahhh! [not really on the phone but doing my best Harpo Marx impression] [frustrated] ok.

[walk like an Egyptian?] That after all is what you want.

You want to be able tomake.

I don't wanna tell you what you want! [I want you to tell me what you want!] Please like & share! Don't keep us a secret.

Thank you! Good night.

Source: Youtube

How to Sell Your House – Part 2: Condition is more than just paint & flowers

Homes in great to excellent conditionsell on average 18 days faster than the competition andat a higher price and with less price reductions.

But thisvideo is not about how to clean, how to put out fresh flowers,where to put throw pillows, and how to arrange furniture.

This videois about why condition is so important what youcan do about it.

Our goal here is to give you informationeducation and advice to make you powerful, smart, informed realestate consumers.

So much attention is given to make sureyou paint this, make sure that is fixed, open thewindows, turn on the lights.

All those things in you should do butthey're not the thing really connects with the people whoare going to buy your house.

The ones you need to connect with, you don'tconnect with them through paint color, you don't connect with him throughcenterpieces on dining room tables.

You connect with him through anexperience that you take them through while they are at your home.

One of the first things you want to dowhen you're preparing your home for sale and dealing with something like thecondition of your home is to have a level of expectationmanagement.

You want to understand what you can doand what you can't.

Every home has defects every home hasflaws.

Every home has positive features andevery home has negative features.

You can't fix everything.

Everything doesn't end on the day that you put the house onthe market.

The budget and time that you set aside has to address those thingsthat you're gonna do prior to market, during market, and alsothose things are going to come up via inspections or appraisals.

Especially if there's things like FHA and VA which have specific requirements that you need to fix certain things orthe buyer can't get the loan thus you had no deal and you have no sale.

The initial push is really where youwanna put the most attention and effort but you don't want to be caught offguard in the back and by something.

Well I recommend that you as a sellerget an inspection prior to.

You signed a contract, you've agreed on a price,you've agreed on terms.

You're moving through the process.

You got that home inspection addendum hanging overyou.

This now is a stressful moment becauseyou don't know what the inspector is gonna find if you haven't done one already.

You don't know what's gonna come up.

Youhave no idea what it's going to cost you to fix some of these things.

If you've done that inspection on the frontend, you know you have a really good idea.

The likelihood of finding some gee-whiz, wow, oh that's gonna cost means thousands of dollars or cost me thissale, the likelihood of that happening is dramatically reduced by getting aninspection in the front end.

Another person to bring any give you somehelp is a stager.

To give you a perspective on your homethat you don't have.

Don't expect most buyers to be SherlockHolmes and be able to find every wonderful thing about your house.

Show it to them! Show the existing features, demonstratethe potential, and allow them to picture themselvesliving in the home.

If you have a vacant home or you have a partially vacant home, oryou have some empty rooms and you really don't know what to do:rather than just take a picture of an empty room and post that, why not ask a stager or designed to giveyou a sketch? What would they do there? This is whatthis room could look like, this is what this house could look like.

and don't just hope that the buyer has acreative mind I can see past the emptiness up that particular space orthat house.

You need to appeal to all five senseswithin those first five seconds where buyer walks inthe door and takes no more than five steps.

Buyers are alert and in tune with their sensesimmediately when they walk in the door.

They're looking for triggers.

Homeshowings don't just happen at random.

You have time to prepare for thesethings.

You pull out those bottles of water.

You pull out those cold Coca Cola's youbrew that pot of coffee.

You take those muffins in put them inthe toaster oven or microwave for a second.

Ann what you do is now you startto appeal to their senses of taste and smell.

If you have an area like abreakfast nook or you have a place with a great view, have a nice little table set up encouragethem to go there with it or that's where you put the said refreshment.

Be creative aboutthat and welcome folks into your home and allow themto have a little moment while they are visiting your home tofeel like they are living there.

You get thethermostat set right.

If it's in the wintertime, you crank it up a little bit to get alittle bit warm in there.

If it's in the summer time, you crank it down a littlebit to get it a little bit cool in there.

You want to demonstrate that this houseis a very comfortable place to live in.

If it gets a nice cross breeze duringcertain times a year, open up the windows and allow that to happen.

So you allow that feel you you get thatinitial feel when you walk in that this is a comfortable place to live.

Sound is easy.

It's so easy to go around today withsmall portable radios, and a lot of houses are already wired for soundanyway.

Sight is a lot more than keeping thingsclean and turning on your lights.

Sight is about directing your buyers towhere you want them to go in an order in which you want them to go.

Tell them where to start & where to stop.

where to go what to look for when they'rethere.

Think a little bit like Alice inWonderland as you're bringing buyers to your house.

Have little signs that say, "touch this" "feelthis" "pull this" "open this.

" Lead buyers on atour of your house, instead of having them wander around andyou hoping that they come across the thingsthat are great about your house.

getting your home in selling conditionis far more that taking your family photosdown off the wall, putting a buncha stuff in storage and repainting your bedroom.

If the prettiest, nicest, best maintained house in theneighborhood goes for sale all week after you put your house on the market, are youprepared to compete? Understand what the expectations are,have a budget and a time line.

Always continually improve your situation and improve your home throughout theentire process.

Hire an inspector.

Hire a stagerand create that guided toward to allow buyers to see themselves in the home.

And appeal to all five senses within five seconds and the first fivesteps that buyers walk into your house.

Delight them.

Wow them.

From hey this is nice, "to wow I have to havethis!" Put those aspects together and your homeis in the best condition that it can be and dominate your local market so youget maximum money, shortest amount of time, least amount ofhassles.

Stay tuned for the next video in this series on "Competition.

" Like this video, comment, share, and subscribe to our channel.

Thank you for watching and see you next time.

[Why can't I say thatand why does that keep not coming out right? This stink but is driving me nuts.

I you have five seconds to sell me this pen.

it's not a not Gettin a little loopy.

Make sure you hit the pillows create that little.

Little V.

Do not hit the pillow.

You hit.

the pillow and you get that little crease a pretty V".

Source: Youtube

Renting Vs. Homeownership: Which Is Better for YOU?

Hey! So is it better to rent, or is it betterto buy a home? That is the question that virtually everybody asks themselves at one point.

Well,guess what? We here at How To Adult have an answer for you, and that answer is.

It depends.

It depends on you.

It depends on things such as your desired lifestyle and your finances.

So here are a few things to consider to help you answer that question.

Part 1: Lifestyle.

So maybe you'll see yourselfreflected in some of these things.

Let's talk renter's lifestyle.

Renters tend to move aroundmore.

Renters are free to chase job opportunities in other cities or states.

They don't haveto spend their nights and weekends having to do maintenance work on their house or theirlawn, but they do tend to pay for that luxury in the form of, on average, higher monthlyhousing payments.

What about the homeowner's lifestyle? Well,homeowners tend to be more settled, like owning a house is typically thought of as puttingdown roots.

Transaction costs of buying and selling a home are high.

So it's not a goodidea to do it often.

In fact, the average house needs five years of appreciation toearn out the closing and selling costs.

At the same time, that stability can be reallynice for people with kids or with pets or people who need that sense of consistencyin their lives.

As long as they're not breaking any rules or laws, homeowners are free torenovate or upgrade their house, which is something that, in general, renters are notable to do.

So if you're someone that really likes to make a place your own, then, like,owning a home might be for you.

(P.

S.

Let me know in the comments, does anybodyelse watch Rehab Addict? I know it started in, like, 2009, but, guess what? I just startedwatching Modern Family.

I'm usually about five to six years behind the curve.

I'm notgoing to do an impression right now, but I could.

You better believe I could.

) On the other hand, if spending your weekendspainting a fence or whatever, if that sounds like torture to you, then you've got threeoptions.

One, hire that work out.

Two, just plan on continuing to rent.

Or three, becomeTom Sawyer, which is what I'm doing.

Part 2: Finances.

Renters typically have highermonthly housing payments, but they don't usually have any other out-of-pocket maintenance costs.

And some of those costs can get really big, really fast.

Really big, really fast.

Oncea renter signs a lease, their monthly payments are locked in, so you don't have to have,like, big emergency maintenance funds if you are a renter.

Homeowners, meanwhile, do enjoy that lowermonthly payment, but they still have to deal with getting a new roof every ten years anda new water heater every seven years, and etc.

Renters may enjoy a locked-in monthlyrent payment for the one or two years that their lease runs, but homeowners tend to havea locked-in monthly mortgage payment that doesn't change for thirty years.

So, think about that for one second.

Imagineif you could freeze your rent so that it never goes up for the next thirty years, and thenafter those thirty years of paying rent have passed, they go away forever, and you havethis thing that is worth a lot of money.

That is the life of the homeowner.

Now it is at this point in the conversationthat many renters will bring up property taxes, specifically how they don't have to pay them.

That's true, but the landlord isn't just going to eat the cost.

Renters do pay property tax,maintenance, landscaping, it's just that all of those costs are built in to your monthlyrent.

Also, homeowners can think of their principalpayments going towards the mortgage every month as a kind of forced savings.

While rentersonly get shelter in return for their monthly payments, homeowners get shelter and buildequity.

Down the line, this equity can be tapped in the form of a home equity loan orline of credit, or can be returned to the homeowner when they sell the house to downsizeor move.

This "forced savings" is what many people refer to when they say a home is agreat investment.

So is being a homeowner always the right financialdecision? Not necessarily.

They usually have to save up a large down payment and that ismoney that is tied up in the house rather than working for them in, say, the stock market.

That's arguably what's called an opportunity cost, and it is something to consider.

So again, is it better to rent or buy? Thatis a question that can only be answered by you and your unique situation.

I hope that some of the points in this videowill help you make your own housing choice.

And if you do choose to buy, we're going tobe doing a "How to Buy a House" video in the future.

If you have any questions or tips,please let us know in the comments section below.

We would love to hear from you! AndI will see you guys soon! I love you, bye! Mwah!.

Source: Youtube

How To Sell Your House Fast – Why Is My House Not Selling?

Kris Krohn with REITV, and you've asked it! We've got the answer.

What do you do TODAY if your house your trying to sell is NOT selling?? "My house isn't selling! What should I do?!" Drop the price! Listen, I know that that may not be what you wanna hear, but it is one of your options.

There's a chance that youmight be thinking that your house is worth more than the market is telling you that itis.

There's a chance that you got advice.

Listen, it happens in the world of real estate.

We take our best guess and I'll go to my experts and I'll say "What should we list this at?".

And you know what? Often, they're right on the money.

Sometimes, they're low, and sometimes were too high.

And if that's the case, then you need to live within reality because it doesn't matter what YOU think it's worth.

I don't care how much money you put into the landscaping of the yard or how much you've put into repairs, a $50,000 yard does notmean that the house is worth $50,000 more.

In fact, very minimal repairs actually gointo increasing the value of a home.

So, the most important thing here is to first, make sure that you operate inside of reality and the market – the people that live in your area, they're gonna tell you what's real.

Your second option is actually doing a lease option.

Lease option is where it doesn't make sense for you to actually sell your housein the market and yet maybe you still want to move.

So what can you do? Well, you can collect the down payment with the seller financing option.

A family maybe gives you a 3, 5, $7000 of a down payment saying "We'd like to move in to this house and we'll cover the payment".

And depending on how your mortgage is structured, you could get BOTH a down payment in the thousands of dollars and you could collect a positivecash flow on that property.

And that also is another way to say 'Hey,if the market isn't going to allow me to sell my house for what I need, then this is anexcellent strategy for holding on to it longer until it WILL SELL and MAKE MONEY.

But in the meantime, I can still move on with my life if I have to leave the state or takea new job or simply move into a different house.

If you liked this video, we have a lot morecoming your way, but you GOTTA hit that Subscribe video so we can make sure you know about every one of them.

Thanks so much! We'll see you next week!.

Source: Youtube

Is it Better to Rent or Buy a House?

Kris Krohn here with REITV.

And I get asked by a lot of people "Should I actually use a bank and buy my house or should I just rent?".

And today, we're gonna answer that question.

Should you rent or own your own home? You know, it's an excellent question.

Based on the way the banks do the system, I mean, they're gonna make you pay for that house three times over 30 years.

And the idea of paying for the house three times, meaning all that interest is deeply front-loaded,I mean, banks just, well, they take you to the bank! You ever wonder why they hand you a sucker on the way out? No, I'm just kidding now.

If you wanna win against banks, I do thatby getting really, really good deals when I buy a house.

So, the deeper the discountI get that house with, if I buy it, you know, with a 20% discount or a 30% discount, ora 15% discount, then really what I'm doing is I'm leveraging a lot of equity.

These people don't stay in the same house for 30 years! And that means that if for the first five years of a mortgage are just gonna be paying interest anyway, when you sell it, you might as well allow yourself to capture any of that appreciation, as well as that deep discount.

And if you do that, you'regonna keep yourself protected.

In the event that you do hold on to the house long-term, well, you'd be glad that you bought it instead of rented it.

I mean, renting isjust throwing ALL of your money away.

And with the bank, at least you're only throwing some of it away.

So, do I buy, do I rent? Well, it really depends.

I mean, for me, it's all about a financial game plan.

Buying with the right strategywill always get you further ahead than renting.

So for me, it's gonna be buying.

I sure hope you enjoyed today's video as we talked about should you buy, should you rent.

Hopefully you are clear on your answer.

If you'd like to get clear on other real estate answers, then go ahead and Subscribe! In fact, if you really liked the video, give me a thumbs up! If you didn't like the video, give me a thumbs up anyway! It'll MOTIVATE me to produce better videos for YOU.

Source: Youtube