4 Tips for Surviving a Seller’s Market


Today I’m here to discuss four very important tips for surviving a seller’s market.


Our market has been fairly competitive, so here are four tips that we’ve compiled to help buyers compete more favorably in a tough market: 1. Submit a large earnest money deposit. Earnest money is like a deposit you can put down with your contract. The great thing about earnest money is that as long as you adhere to the contract, that money is never at risk. If for some reason an inspection turns out badly or things don’t otherwise work out, there are ways you can back out of that contract. The larger the deposit you put down, the more attractive it makes you look to a seller. 2. Make sure you’re pre-qualified. This is extremely important; listing agents looking over offers want to see that you’ve been pre-qualified with a reputable local lender. A pre-qualification letter will show the seller of the property that you’re serious and qualified to move forward with the transaction. If the lender you’re pre-qualified with is local and reputable, it will always carry more weight in the seller’s eyes.

A pre-qualification letter will show the seller of the property that you’re serious and qualified to move forward with the transaction.
3. Give the seller time to move. Once their home has been sold, a seller will need time to pack their things together, coordinate their families, and move out. If you don’t give them a lot of time to pack up, that will create a very stressful experience for them. If you include a lenient move-out time in your original offer, it might be a way to further incentivize the seller to choose your offer over others. 4. Write your best offer. There have been a number of times when I’ve worked as a listing agent to evaluate different offers on my seller’s home that I’ve seen a family who really, really wants the house for any number of reasons, but they’ll come up $500 or $1,000 short on their offer. If you consider this over the next 15 to 30 years, that $1,000 means absolutely nothing; it will make almost no dent in your monthly payment. I hate to see people miss out on getting a house that they love over $4 a month. Always put your best and strongest offer forward. If you’re thinking of buying or selling a house, feel free to visit our website at www.RyanSmithHomes.com, or else contact us at any time. We’d love to hear from you.
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Location: Temple, TX, USA

The Final 5 Common Real Estate Myths


Today we’ll discuss part two of the top 10 common myths in real estate and debunk our final five misconceptions.


Today I'll be sharing the second part of my two-part series on the top 10 myths in real estate, featuring myths No. 6 through No. 10. 6. Weekends bring out the most serious buyers. When people are preparing to put their house on the market, we often hear of sellers thinking they won't be able to show it during the week, so they make showings available for the weekend only. Serious homebuyers, however, are coming throughout the week, and while you are more likely to have showings on the weekends because people are off, you may still get buyers during the week. 7. Zillow says it, therefore it is right. First, I want to say that Zillow is very rarely accurate. There is nothing more frustrating as a real estate agent than having folks come in and say that Zillow says the home is worth a certain amount. While you can get good information from these types of websites, they are very rarely accurate because they use algorithms based on tax records.

Every seller is in a different situation and has different circumstances involving their sale.
8. It is better to initially list a home on the high side because you can always negotiate it down. If you start out too high, it is actually one of the fastest ways to kill your home sale. When you initially list your home, you’ll have the most activity that you are going to have; if the price is too high, you end up missing out on people. If you try to make adjustments and catch up later, those people have already moved on to other properties and your momentum that you need to sell for top dollar is gone. Although I actually love pricing homes as the highest in the neighborhood, it has to be priced realistically so you can get the most money. 9. Multiple price reductions mean that a seller is desperate to sell. Every seller is in a different situation and has different circumstances involved in their sale. This does not necessarily mean that someone is desperate. 10. All agents are the same and do the same exact thing. This is definitely not true. If you look at the results, you can see very different outcomes depending on the team or person you hire. The people who are successful or have been successful for a long period of time are clearly doing things differently to enable them to achieve that kind of success. If you have any additional questions or are interested in buying or selling, please feel free to contact me. I look forward to speaking with you soon.
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Location: Temple, TX, USA

The Top 10 Myths About Real Estate, Part 1


There are 10 major real estate myths you shouldn’t buy into, and here are the first five.


Here are five of the top 10 most common real estate myths floating around out there and the truth behind them: 1. The agent keeps all of the commission. I’ve heard this one many times over the years. As an agent myself, I wish it was true, but it’s not. When we list a home for one of our clients, our team typically spends thousands of dollars marketing and advertising it. 2. Agents typically charge a 6% commission rate. The truth is, there is no standard commission cost among agents. Some charge 6%, some charge more, and some charge less. What kind of commission rate an agent charges should reflect the value that they bring to you. If an agent can sell your home quickly and sell it for thousands of dollars more than the average agent can, they’ll probably be worth more and cost more. 3. Agents can get reimbursed for car-related expenses. When agents are out showing houses, they have to pay their own transportation expenses. However, some of these expenses can be deducted from their taxes.

What kind of commission rate an agent charges should reflect the value that they bring to you.
4. Agents can be reimbursed for marketing expenses. Real estate companies, even the large ones like RE/MAX or Keller Williams, don’t dictate to their agents how they should market their homes. This is why, even at big-name brands, you’ll see both agents who are very successful and agents who aren’t. Because they don’t mandate any form of marketing, its up to the agent what they want to spend on marketing their homes. 5. A home either “passes” or “fails” an inspection. The purpose of a home inspection is to point out any issues that a home may have. Any home will have its share of deficiencies, and just because there are issues revealed in the inspection doesn’t mean it “passes” or “fails.” If anything, these deficiencies enable the buyer and seller to negotiate over the home’s condition and its price. Stay tuned for the second part of this series, where we’ll delve into some myths that are more related to the real estate sales process. In the meantime, if you have any questions or you’re thinking of buying or selling a home, don’t hesitate to reach out to me. I’d love to help you.
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Location: Temple, TX, USA

The Pros and Cons of Open Houses


I'm often asked whether open houses help sell homes. Today, I will be sharing the pros and cons of this strategy so you can decide for yourself.


Do open houses work or not? Depending on the agent that you talk to, you are going to hear a lot of different opinions. For this reason, I thought it would be a good idea to discuss some pros and cons. Let's begin with our list of cons. First, open houses provide a very low probability of a sale. This might sound pessimistic, but it's important to understand the true odds of successfully finding a buyer from hosting an open house. Secondly, there are a lot of security concerns involved. With so many potential buyers touring your home at once, it can be difficult to keep an eye on everyone. And, although I have never personally encountered such an issue, open houses can invite the potential for theft. Trying to keep track of all of them is very difficult and it is very possible that someone gets into your stuff and steals something. Although I have never personally had this issue at any of my open houses or showings, it’s not unheard of. The third drawback of hosting an open house is that it could bring out nosy neighbors. Oftentimes, the majority of people who turn out for an open house are from your own neighborhood. Rather than showing up with an interest in buying your home, they attend simply out of curiosity.

Open houses can invite the potential for theft.
On a positive note, an open house is, well, open to everybody. Anyone can drive up and walk through the house, which sometimes pulls down the barriers to engaging with a real estate agent. While it is rare that these people end up buying the house that you are selling, it does allow you potentially pick up a buyer. Agents can engage with these people and discuss what they are looking for. Open houses also offer a lot of convenience. They allow potential buyers to see your property without scheduling a showing. The final benefit I'd like to highlight is that open houses provide buyers with a more complete perspective on your home. It's one thing to see a home in photos, videos, or in a 3D virtual walkthrough, but it's something else entirely to actually visit it in-person. So, do open houses work? It depends on your goals. Open houses offer a great networking opportunity, especially for agents, but the odds of finding a buyer at such an event is lower than some may assume. If you have any additional questions or are interested in buying or selling, please feel free to contact me. I look forward to speaking with you soon.
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Location: Temple, TX, USA

How to Come out on Top in Real Estate Negotiations


Negotiations are crucial in any real estate deal, so today I’d like to share some basic tips on how to be a strong negotiator.


Very rarely does a buyer offer every penny, let alone every term, the seller is asking for. Therefore, negotiations are a critical aspect of any real estate transaction, and knowing the basics of negotiating can make or break your success as a seller. First, don’t be offended by counteroffers. It’s easy to forget that each party in a transaction has their own distinct motive. Sellers (usually) want to make the most money they can from their home sale, while buyers are often looking to strike a bargain. But merely understanding these differences won’t necessarily improve your negotiation skills. In order to be a skilled negotiator, you will also need to be knowledgeable about the state of the market. Understanding current market conditions will be paramount to your success in any real estate negotiation scenario.

The key to negotiating is being informed, being realistic, and working with a strong agent who can help guide you on the path to your goals.
And coupling your own knowledge with that of an experienced agent will only further your chances of striking a great deal. That said, those listing while in a strong seller’s market likely won’t need to negotiate much to begin with. In a competitive market, one potential buyer may be easily replaced by another. This isn’t to say, though, that there are times where conceding to a lower offer may be advisable. Along with understanding the market, you’ve also got to understand the “big picture” of the transaction as a whole. That means thinking realistically about how your, and the buyer’s, circumstances may impact the deal. If your home is in need of several repairs, but a buyer is willing to overlook them under the condition that they offer a lower price, you may actually save yourself some money by taking that reduced amount. Ultimately, the key to negotiating is being informed, being realistic, and working with a strong agent who can help guide you on the path to your goals. If you have any other questions or would like to more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
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Location: Temple, TX, USA

5 Signs You Can’t Afford the Home You’re Purchasing


There are five signs that will tell you that you’re about to buy a house that you simply can’t afford.


Sometimes, when we’re working to help guide a buyer in their home purchase, they’ll ask us how they can know if they’re buying a house that is more than they can swing. Just because they were approved for a certain amount, it doesn’t necessarily mean that you’ll have an easy time managing payments. To gauge whether you’re stretching yourself too thin, keep an eye on the following five signs: 1. Are your financing options unconventional or creative? If you’re resorting to or being offered highly unconventional mortgage options to use in order to make your purchase work, it could be a sign that you’re swinging a little too high. 2. Do you need down payment assistance programs to qualify for this house? If the purchase or sale price of the home is so high that coming up with the down payment is a struggle, then it could be an indication that you’re trying to purchase outside your range.

If you have enough money per month to cover your mortgage, but have little left over for the rest of your expenses, that’s a definite sign that you’re exceeding your limits.
3. Do you have just enough money to cover your mortgage? If you have enough money per month to cover your mortgage, but have little left over for the rest of your expenses, that’s a definite sign that you’re exceeding your limits. Don’t squeeze your budget too tightly. 4. Are you considering taking money from your retirement funds? If the only way to make your mortgage work is to take money from your hard-earned retirement funds, then that’s an issue. 5. Do you have a bad feeling about the purchase? If, during your purchase, you get an overwhelming sinking feeling that the whole thing is a bad idea, it’s a good idea to go with your gut. We do want to help you purchase a home, but you should also be happy with it. You’re the one who has to live in the house and manage your expenses, so your feelings are paramount. If you’re a homebuyer who is experiencing one or more of these signs, or if you’re interested in purchasing a home, please feel free to reach out to me. We’re always here to help and provide excellent service to you.
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Location: Temple, TX, USA

What to Do When Your Appraisal Doesn't Match Your List Price


What happens when a property doesn’t appraise? Allow me to share a few ways this scenario can play out.


What should you do if a home appraises for less than the sales price? Well, if you’re the seller of that property: Don’t panic. Hopefully you’ve hired a great agent who will work to appeal the results of the appraisal. If you’ve hired someone on my team, we will do everything we can on your behalf to make sure the deal goes smoothly. When our team works to appeal an appraisal, we begin by doing our research. We gather information on home values in the area and determine what other properties tend to sell for. If, after presenting the findings of this research to the appraiser, the appeal doesn’t succeed, then it’s time to renegotiate with the buyer.

If you’ve hired someone on my team, we will do everything we can on your behalf to make sure the deal goes smoothly.
Sometimes when a home appraises for less than the agreed-upon price, the solution is for the buyer to make up the difference in cash. So if a home’s contract listed its price as $205,000, but the appraisal came in at $200,000, the buyer could still use financing for the appraised amount while making up the remaining $5,000 in cash. The seller could also lower the sales price to match the appraised value, or a combination of these solutions could be negotiated. It’s also important to realize that the loan type a buyer is using to finance the purchase will impact how the scenario can be handled. In some cases, the best option is to seek out another appraiser’s opinion. FHA loans or VA loans will make this more difficult, though, because the initial appraisal figure will stick with the property for some time. If you have any other questions or would like more information, feel free to give my team or me a call or send us an email. We look forward to hearing from you soon.
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Location: Temple, TX, USA

3 Questions to Ask Any Agent Before You Hire Them


Before hiring a real estate agent, you need to do some vetting. Here are the questions that we recommend you ask.


Buying or selling a home is a major project. Having a trustworthy agent to guide you through that project can be an invaluable asset. But how can you vet potential real estate agents to see who would be a good fit for you? Here are three important questions you should ask to get started: 1. "How many homes have you sold in the last 12 months?" Many real estate agents will tell you the number of years they have in the business. That's useful, but their recent activity can be more relevant than their total experience. Asking this question can tell you how well they know the market, as well as how successful you can expect them to be in your case. Bonus Question: You will probably want to ask whether the agent works primarily with buyers or sellers, because many agents specialize to some extent in one or the other.

You want to get a sense that this agent is somebody you can trust.
2. "Can I have the contact info for your last three deals?" Anybody can say they are a marvelously effective real estate agent. But talking to actual past clients can help you decide whether this is true or a bunch of hot air. When you do talk to a real estate agent's previous clients, you don't need to get too fancy to get useful information. Simply ask them to share their experience. 3. "What is your strategy for my specific needs?" As a buyer, you will want the agent to explain how they will search for your new home, how many homes you can expect to see, and how the agent handles multiple offers. As a seller, you will want to know how and where the agent will advertise your home. So what kinds of answers should you look for to these questions? Ideally, you will want to get a sense that this agent is somebody you can trust and that you feel comfortable working with. At the same time, you will want them to be experienced and diligent, as evidenced by recent successful deals and a concrete plan of action for your situation. If you ever want to know how I measure up on these questions, you can always give me a call. I'd love to hear what your specific situation is and whether I would be a good match to help you in the current real estate market.
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Location: Temple, TX, USA
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