Serving all of West Michigan
As agents we should always be providing exceptional service and building relationships with our clients. By doing so, they’re more likely to become our advocates. Part of that exceptional service is staying in contact with them to deepen relationships.
Sure, you’ve heard about the hot, sellers market in the greater Grand Rapids area and maybe that has you thinking about selling your own home. Many feel that now is the time to sell their home and that it would be best to not pay a commission by listing for sale by owner (FSBO). But before you start making your plans, it’s important to know why it is more important than ever to have a strong listing agent on your side.
Picking the best offer
We’ve encountered properties where there are already fifteen other offers on the table by the time our buyer makes an offer. We’ve even heard that some properties have had up to fifty offers. Can you imagine having to sort through fifteen to fifty offers and decide which is the best and most reliable? According to the National Association of Realtors (NAR), 18% of FSBO sellers felt that getting the right price was one of the most difficult tasks while 12% felt that understanding and performing paperwork was also very challenging.
Purchase agreements can be tricky to weed through because the highest priced offer isn’t always the best. Do you know the difference between contingent and non-contingent offers? How about all of the different loan types? Do you know what each loan requires and how that could affect you as the seller? Or even which banks have a reputation of closing on time or lengthy closings? Chances are you’re probably not an expert in those areas, which is why it is important to have an expert on your side. A listing agent will be able to assist you in picking out the pros and cons of each offer and help you decide on the most solid opportunity while also walking you through the execution of documents.
Marketing
Sure, you may be saving some commission if you choose to go the for sale by owner route. But what about the money that will need to be spent on the marketing that needs to go into selling your home?
Unless you’re a pro photographer or have the necessary equipment, you might have to spend money on professional photos because you want your home to attract as many buyers as possible. Professional fliers and advertising your home will be necessities as well. On top of that, do you know what repairs and updates are necessary and will actually get you a return on your investment? According to NAR, 13% of FSBO sellers felt that preparing and fixing up their home was a difficult task without the help of a professional.
If you have a listing agent, they’re going to take care of your marketing and help you decide what repairs and upgrades are necessary. Better advertising will solicit more offers which will mean a higher sales price.
You’ll still probably pay a commission
In today’s competitive environment, many buyers are seeking professional advice and very few go in alone, therefore the chances are the majority of buyers who are interested in your home will have an agent with whom they are working. In that situation, you’re now negotiating versus a skilled and experienced real estate negotiator. There’s a good chance that you’ll lose out on even more money because you may not know the best practices.
In summary, a listing agent is truly worth every penny in this fast-paced market. On the surface it seems like you could save yourself some expenses by selling your house yourself, but in reality, you’ll not only get a better price but also a better experience if you have a rock star agent on your side. You’ll have someone to negotiate, someone to market your home, and someone to help you weed through offers and complete paperwork.
How often has a friend or family member mentioned that they recently bought or sold a home, but it wasn’t with you? It’s important to consistently educate your referral sources.
If you want your business to grow, you have to ensure that you’re continually learning and growing. Here are some ways to do so.
Life gets busy, but are you spending enough time generating leads for your business?
We’ve all worked with plenty of contractors – from plumbers to landscapers to painters to electricians. But how do you typically find those contractors? We bet your good friend Google has helped you out in many occasions. But is that always the best decision?
Searching online and sorting through all of the reviews can lead to a good experience with a helpful contractor. But spending all of that time takes just that, your valuable time. Plus, there are many companies that don’t have any reviews at all.
It’s best to ask family, friends, and trusted professionals for their recommendations. It can save you time, money, and many headaches. Choosing a vendor at random can lead to poor work, undependability, and in the worst case, someone who disappears after taking your money.
Clarity Realty is always here to provide referrals for any home service that you may have. We’ve worked with many contractors over the years who have done great work for us and our clients and we’d be happy to pass along their contact information.
Another resource to consider is the Better Business Bureau (BBB). Companies that are accredited by the BBB must go through a vetting process before becoming accredited. Accreditation requires businesses to uphold the BBB Code of Business Practices so you’re more likely to have a good experience with contractors who have gone through the process.
Are you working with buyers or shoppers? Do you know the difference?
If you want a seller to list their home with you, it’s important to help them understand what is special about you and what sets you apart from other agents. So, what should you be doing?
With the inflated home market values recently in West Michigan we are seeing two things happen: Home sale prices are much higher than rebuild cost in areas with high land values (such as waterfront), and sometimes home sale prices are much lower than rebuild costs in certain emerging markets.
When you insure your home, make sure that you pay attention to the rebuild cost, not market value. Insurance coverage that matches the sale price could mean that you are paying more than you need to for insurance. Remember, the goal of insurance is to rebuild your home back to the way it was originally built. If your home could rebuild for $200,000 and you were insured for $300,000 you would not get a check for the difference, thus overspending on premium by $100,000.
To Sum Up: Take a minute and have your insurance reviewed; it may surprise you what you find out.
About the Author: Alistair Lynch is the owner of the Lynch Agency at Farm Bureau. Feel free to give Alistair a call at (616) 940-7043 or send him an email to alynch@fbinsmi.com if you have any questions or would like more information.
As if it isn’t hard enough to sell a house, it is even harder when you are doing so while going through a divorce. Julie Grevengoed of Clarity Realty and attorney Ivan Shaw of ADAM teamed up to come up with this list of tips for navigating the sale of a home during a divorce aimed at making sure the home sells fast and for the best price.
You deserve the special attention of an experienced professional when facing a divorce or home sale. The Realtors at Clarity Realty and attorneys at ADAMGR.com are here to help you. Please call us with any of your real estate or divorce needs.
