I seem to keep bumping into a concept lately that I thought might be nice fodder for a post in the Blotter. How much control do you think you have in general in your life? How much control would you LIKE to have? …Are you sure?
In real estate there are certain things we can control and certain things we cannot. I thought it might be fun to delve into some examples of this:
- If you are selling your home, do you have control over the location? Well, no. BUT, when making a decision about where to buy, that would be a good time to look down the road and take that property’s location into account for future resale purposes. If you are getting a REALLY good deal on a home because of where it’s located, you might want to think twice.
- If you are selling your home, do you have control of it’s condition? Absolutely. Now, you may say, “I only have a certain amount of money to spend on getting this place ready for sale”, but in the end, you are making the decisions, and have been making the decisions… and now here you are. Control of this factor aside though, no matter what kind of financial position you are in, this is always an issue when selling your home… “How much should I put into this home I am moving out of?” When I am working with a client in a position where there are limited funds, we sit down together first and I go over my list of items that will make the property most appealing to the greatest number of Buyers. THEN, we get real. Some things, like paint, are inexpensive, and realistically can be handled by the homeowner themselves. Some things require professional assistance. Sometimes it is just a matter of rearranging a few pieces of furniture and perhaps doing your moving “sort-through” now & considering it work you’ll have to do to move anyway… Tends to make it purposeful and even fun! Goodwill will love you, and a storage facility or a POD might be a good option to clear your home of things that only make the rooms look smaller. You’ve heard it before: “The way you live in a house is NOT the way you sell a house.” So… you do have control of how your home will present to the Buying Public. Just lay out the facts & pragmatically decide the best way to address each issue. Buyers in this market are picky… they can afford to be with the number of homes from which to choose. You have to reveal the gem that is YOUR home, and when you do, someone else will walk in and love it the way you did when you were in that position.
- Do you have control over the terms of an accepted sale agreement? Yes. You may not agree with me, but after all the options have been presented and discussed between you and your Realtor, you get to say yea or nay. It’s your house and you don’t have to sell it for terms that are not to your liking. Now… do you sometimes have to give a little here or there in order to make your transaction happen? Yes. For instance, when there are repairs requested that you are advised will, or may, be required by the Buyer’s lender, it might be in your best interest to make them so that you can close… that is if you want to. If there are safety issues or other significant ones that have been uncovered in inspection, many will also want to address those prior to close. The Golden Rule tends to work well here, and usually you are in the process of negotiating terms for your own purchase, so you get to enjoy a 360-degree view of how it feels to be on either side. Again though, you are in control. You can always say “no”, and the chips will fall where they fall.
- Are you in control of price & your home’s position in the marketplace? Yes. You obviously don’t control what other people have sold their homes for around you, or what has happened in the market in general, but after your Realtor presents you with comparable data (i.e. available facts), you make the decision regarding what number will go on your flyers and on the MLS. Many Realtors will let you know that they will or will not take on a listing depending on the “reasonableness” of the price desired by the Seller. You still are the one who makes the final decision on price, and perhaps the decision on whether to work with that person or not. As a Realtor myself, I will tell you that most Sellers want to price their property too high for the market (sorry… it’s true : ). Consider that a Realtor who is advising you does not have much of an incentive to talk you into pricing your home too low… being as their compensation is based on the sale price. Worth a thought. I’d venture a guess that you are probably being given the straight scoop. I like to tell my clients that all we are doing is looking at the facts, and pricing accordingly… why would you do anything less? Dianne and I have been reporting that the facts show homes selling now seem to be the ones either very new on the market, or very old listings that have dropped their prices considerably & often. Ask yourself how long you want to be on the market, and how many price reductions you are willing to go through if you price against what the facts are telling you. You will gain the most exposure when your home is fresh on the market. Take advantage of that and price it right. Also.. remember that you are most likely buying as well… any market conditions will be in effect on either side of the negotiation table.
- Are you in control of marketing your home and the exposure it gets? Yes. That is your Realtor’s job, AND, you are part of this conversation and deciding what kind of promotion you want. Talk to any prospective Realtor about how they plan to garner exposure for your listing. Look at the words they are choosing for your promotional pieces and make sure you like how the property is being presented. Make sure their is a good deal of Internet exposure, and that all the details about your home are factual. It’s also a good idea to go over marketing with your Realtor on a periodic basis to gauge feedback and results. Give your input, and make sure to voice any concerns, but then trust your professional, and put your energies to how the house itself is presenting each day to prospective Buyers, and to your own search for a new home.
- Are you in control of the timing of your transaction? No. You really never know when that Buyer will walk in your door and have the reaction “This is the one!”. You need to have your Windex ready every day as you leave for work & at least briefly touch each of your sinks & fixtures. You want them to shine when that Buyer walks in. Check your home’s entrance as you leave to make sure that there is that great first impression just waiting for the right moment. Once that happens, and your Buyer has arrived, there are a few things you CAN control about timing, such as when you are willing to be out of your property- unless there is a set date that the Buyer absolutely needs… If this happens, then you are back to “Do I want this transaction to go forward?”… I have not said that there may not be a few hard decisions here & there : ) For the most part, this is why you picked the Realtor you did. Let them help you through any rough spots. In the end stages of your transaction, the Buyer’s lender will truthfully have a good deal of control over what happens in what kind of time frame. Know that even if the timing seems like a roller coaster ride, all the dominoes will fall into place and the timing really will, most always, take care of itself with some good choices, and sure, steady footing as you move to close. Accept help from your Realtor during this time, and get ready to move into your new home!
This seems like a lot for now. The subject of “Control” and under what circumstances you have it and to what degree is such a rich subject. I promise I’ll come back to it, and perhaps focus on the Buying angle next time. In the meantime… Happy Summer!