Price your house to sell quickly (www.horizonpropertiesguam.com)

Price your house to sell quickly

If home lacks features of recent comps, it's time to subtract value

BY DIAN HYMER, MONDAY, AUGUST 20, 2012.

Inman News®

A first-quarter survey of homebuyers and sellers done by HomeGain.com, a real estate services website, revealed that 76 percent of homeowners believe their home is worth more than the list price recommended by their real estate agent.

Homebuyers usually have a better grasp of current market value in the area where they're looking to buy than do sellers who own and live there. Buyers look at a lot of new listings. They make offers, know what sells quickly and for how much, and what doesn't and why. HomeGain reported that homebuyers still think sellers are overpricing their homes.

Your home is worth what a buyer will pay for it given current market conditions. This may not be the same as your opinion of what your home will sell for, or what you hope it's worth. Relying on emotion rather than logic when selecting a list price can lead to disappointing results.

The prime opportunity for selling a home is when it's new on the market. This is when it is most marketable. Buyers wait for the new listings. Usually, listings receive the most showings and have the busiest open houses during the first couple of weeks they are on the market.

This is the opportunity to show your house off to advantage with a list price that attracts buyers' attention. Listings that sell today are priced right for the market. Buyers need to feel comfortable that they are getting a good deal.

Buyers won't overpay if they feel home prices are still declining, and in some areas of the country, they still are. In areas of strong sales, buyers may shy away from multiple-offer situations if they feel the recovery is fragile and that prices may slide further before stabilizing. Even in areas where home sales have been strong in the first half of 2012, local practitioners wonder how long the uptick will last.

HOUSE HUNTING TIP: When selecting a list price, it helps to understand how real estate agents and appraisers establish an expected selling price or price range for your home. They research the recent listing inventory for homes similar to yours that sold. The most recent sales give the best indication of the direction of the market.

They analyze these comparable sales giving more value to your home for attributes that it has that the comparables don't, like a remodeled kitchen. Value is subtracted from your home for features it lacks when compared to the sold comparables, like an easily accessible, level backyard.

It's difficult for sellers to step back and take an attitude of detached interest in their home. But it's essential to do so if you want to sell successfully in this market. For example, your home could actually sell for less, not more, than a comparable sale because you added a swimming pool in an area where most homebuyers would rather have a yard with a generous lawn.

If the comparable sale information suggests that the value of homes like yours is declining, select a list price that undercuts the competition to drive buyers -- and hopefully offers -- to your home. You can take a more aggressive stance on pricing if the comparables show that prices are moving up.

If there is high demand for homes like yours, you may receive more than one offer. But don't list too high. It's better to stay in the range shown by the comparables and expose the house to the market before accepting offers. The market will drive the price up if it's warranted.

THE CLOSING: Don't rely on rumors circulating in the neighborhood about how high a home sold. Prices tend to get inflated when passed from one person to another. Select your list price based on hard facts.

Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author of "House Hunting: The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide."

Horizon Properties Inc. is Guam’s leading real estate services provider and property management company. We work diligently to fulfill the requirements of buyers and renters, while working towards a smooth, hassle-free transaction for sellers. Our innovative and “customer first” approach towards property management results in outstanding property care and profitability. 

2 must-have contingencies in a home purchase offer (www.horizonpropertiesguam.com)

2 must-have contingencies in a home purchase offer Stand your ground even if agent advises against them By Benny Kass

DEAR BENNY: I am in the process of buying an older single-family home and found one I like. I wanted to have my contract contingent on obtaining a favorable home inspection, but my real estate agent has been discouraging me. She claims that I may lose the house if I insist on the inspection.  What do you think? –Terrie

DEAR TERRIE: You are about to engage in what may be the biggest purchase of your life. You kick the tires when you buy a car. You should get an inspection, and if the seller does not allow this, walk away as fast as you can.

Inspections help both buyers and sellers. The buyer gets an independent assessment of the condition of the house, from inside and outside, and top to bottom. There is a hidden benefit to an inspection, namely that if you buy the house, you will know where things are such as turning off the water in case of a leak.

But the seller benefits also. I have represented many sellers whose buyer (after taking title) threatened to (and actually did) sue the seller, claiming multiple problems in the house. My defense, which generally works, is, "Hey, you had an inspector and had an opportunity to walk away if you found problems."  So, submit your contract with the inspection contingency. If the seller rejects it, he may be trying to hide known defects.

Also, many states require sellers to disclose all known problems in a house to potential buyers. If your state has this requirement, show the disclosure statement to your inspector.

The bottom line: There are two important contingencies that must be included in every real estate offer being made to sellers.

·        First, a contingency on financing (assuming you need to obtain a mortgage and are not paying all cash).

·        Second, obtaining a home inspection report from an independent inspector selected by you, to your satisfaction.

Don't be pressured to sign a contract without these two provisions. In law school, we are taught that real estate is unique. In my many years of practicing law, however, I have learned that it "ain't necessarily so."

 Horizon Properties Inc. is Guam’s leading real estate services provider and property management company. We work diligently to fulfill the requirements of buyers and renters, while working towards a smooth, hassle-free transaction for sellers. Our innovative and “customer first” approach towards property management results in outstanding property care and profitability. 

Dear Benny (www.horizonpropertiesguam.com)

www.horizonpropertiesguam.com

Dear Benny….

It’s Important how you hold title to properties

DEAR BENNY: Years ago our dad built a cabin in Colorado and left it to the five children from two marriages. Since that time, four of us have split the expenses of maintenance, taxes and insurance. We have a large family reunion at the cabin every four years, and family members use the cabin annually. One brother has never contributed and is difficult to locate when needed.

The four of us are getting older and would like to keep the property in the family, as everyone enjoys the use of the cabin and the reunions. There are 12 children from the four of us plus two from the brother who does not participate. What is the best option for keeping the cabin in the family and splitting the costs involved? --R.J.

DEAR R.J.: The first question is how all five of you hold title to the cabin. There are two ways: first, each of you could hold title as "tenants in common," meaning that each has a one-fifth interest. While it may be difficult to find a buyer for that small portion, as a tenant in common you have the right to sell. In this arrangement, on the death of any one of the tenants in common, your share will be distributed accordingly to your last will and testament (which you should have). And in many states, probate will be necessary.

Alternatively, you all could hold title as "joint tenants with rights of survivorship." Here, if one of you dies, the remaining four siblings will then own the entire cabin. This is not fair to the spouses or to your children who may lose the right to have any ownership. (I am ignoring for this discussion spousal rights to claim an interest despite any provisions in the will.)

So, just for this issue alone, you should consult an attorney who will review the title and advise you the best way to deal with this. My suggestion: "Title is held by each of the children and their wives as joint tenants with rights of survivorship, but as to each of the other children, as tenants in common."

What does this accomplish? If one of you should die, your spouse will automatically inherit your one-fifth interest in the cabin. If your spouse predeceased you, you will be the sole owner of your share and can arrange to leave it to your children on your death. But since you own your one-fifth interest as tenants in common with your other siblings, they keep their interests and you do not lose yours.

But talk to your attorney. She may recommend that you create a limited liability company to hold title to the property.

As for the brother who does not make payments, you can ignore it from a family point of view, or you can demand that either he pay his fair share or sell his interest to the remaining four of you.

Horizon Properties Inc. is Guam’s leading real estate services provider and property management company. We work diligently to fulfill the requirements of buyers and renters, while working towards a smooth, hassle-free transaction for sellers. Our innovative and “customer first” approach towards property management results in outstanding property care and profitability.