Past seller clients in the Austin real estate markets send us new business by referral regularly. This is because they’ve experienced the stellar seller services package and want their friends and family to experience it as well. The value The Murphey Team brings to this process is what takes the client from an idea to sell through a very complex and detailed process and culminates in leaving the closing table with a check. Check out the information below for more details of the process!
One service that I believe is extremely important in Austin, Buda, Cedar Park, Georgetown, Hutto, Kyle, Lakeway, Leander, Pflugerville, and Round Rock real estate markets is helping my listing clients to evaluate their homes for marketability objectively. Some brokerages do a once–over to get the information to put into the various information fields in the listing. However, I go much more into the detail of the features, characteristics, and condition of your home.
I will want to postpone some photos until we’ve worked with you to do a thorough inspection of your home with a whole lot of details in mind. Every buyer who sees your home will be comparing it to the competition in your area and price range. How your home compares is critical to how soon you sell it and at what price. I’m going to work with you in several areas of interest:
Interior features & characteristics – While the number of bedrooms and baths are not something you’ll be changing to compete better with other homes, you do need to objectively compare them to end up with a listing price that will get your property sold. Some things I can consider for improvements, others I need to know how your home compares to other homes buyers will be seeing.
– Floor plan
– Year built and obsolescence
– Flooring & walls condition, paint, etc.
– Kitchen features
– Room sizes
– Lighting, skylights, windows
Exterior – That “curb appeal” thing does mean something. When a prospective buyer first drives up in front of your home, they’re going to get a critical first impression. I help you to look at things like landscaping, exterior paint, and condition. Here is an area in which small expenditures can yield significant results. It’s a fact that some buyers will ask to leave without ever stepping across the threshold if they get a bad first impression from the curb appeal.
Condition – Minor repairs can also make a significant difference. Many buyers assume that a need for minor repairs indicates a general lack of basic maintenance over time. They’ll discount their offer, if they make one, thinking they’ll have a lot of work to do to bring the home to a better condition. So, I’m honest with you about things that I see, and buyers will see and consider in their evaluation. From cracked window panes to scarred walls or doors, we’ll let you know what we believe is essential and make suggestions.
I’m here to make sure that your home enters the market in the very best competitive position possible. A thorough and objective evaluation is an essential first step.
Proper Listing Price
What would an upward or lower price adjustment look like based on the current market CMA? Here is an example. Let’s say that the CMA of similar previously and recently sold homes shows that the listing price should be around $235,000. However, those sales were between one month and three months old. Our current market listing CMA shows that similar homes in the neighborhood are listed at $249,000 or thereabouts. We may decide that the market is improving and justifies raising the listing price of your home to $245,000 so that it’s still competitive but a better deal for you. Of course, this can work the other way as well.
A proper list price that reflects current and realistic market conditions is critical to getting your Austin, Buda, Cedar Park, Georgetown, Hutto, Kyle, Lakeway, Leander, Pflugerville, and Round Rock real estate property sold quickly. I don’t want you to under–price, but it’s worse to overprice a listing in any market. Buyer’s discount the value of your home by DOM, Days On Market. The longer a house stays on the market, the higher they’ll discount their offers. So a realistic list price is how I make sure your property sells without languishing on the market.
How do I come up with a suggested list price that reflects your home’s competitive position? It’s a combination of services, experience, careful and detailed analysis h, and market evaluations to make sure that you don’t leave money on the table or sit around wondering why you aren’t getting offers.
My evaluation of how your property compares to the current competition is the first step. Then we may suggest some worthwhile corrections you can make to improve that position. Once I know what your home will look like when listed, I’ll go into our thorough CMA, Comparative Market Analysis, process.
CMA of Sold Properties – First I select comparable properties out of those sold recently in the neighborhood or nearby. These “comparables” or “comps” are selected based on similarity in features, location, and characteristics with your home. They must have been sold as recently as possible, so the sold prices are of maximum market value.
I then do a through “adjustment” process to adjust their sold prices for any differences with your property. If a home has one more bedroom than yours, I will adjust that property’s sold price downward for the value of one bedroom to make the comparison “apples to apples.” I make adjustments for garages, bathrooms, and other major features to bring our comps to carefully compare with your home. Then I use those sold prices to arrive at a preliminary listing price for your home.
I say “preliminary” because I have another CMA step.
CMA of Current Listings – Now I get more comps, but instead they’re properties currently listed that will be your competition. I go through the same adjustment process, and I come up with another, possibly higher or lower price suggestion for your home. This second CMA gives me more up–to–date information about the market, which could cause us to lower or raise our preliminary list price to adjust to the current market. Using the two CMA results and an experienced analysis of your home’s position in the marketplace, we can set a listing price that will get the job done.
Do you know how many comparable properties to your home came on the market this week? Or how many were sold or taken off the market? Markets are continually changing, and it’s my job to monitor these changes and keep my listing clients informed. Changes in the competition don’t always require a price adjustment, but they may. Sometimes they cause us to make changes in our marketing approach, emphasizing features that are no longer available in currently listed comps.
Whether I’m suggesting a price adjustment up or down, I’m always concerned with my seller clients’ peace of mind that their real estate property is priced correctly and positioned in the market. Price Negotiation
Whether I’m suggesting a price adjustment up or down, I’m always concerned with my seller clients’ peace of mind that their real estate property is priced correctly and positioned in the market.
All buyers want to pay as little as possible for the home they purchase. Buyers in slower markets are looking to score a bargain. My job is to combine services to my sellers that include marketing to improve the competitive position of their homes, and then to assist them in countering low offers and buyer resistance to fair pricing.
Part of this process begins with the CMAs I do and the price at which I suggest that you list your home. Starting at the right price for the market with a little room for negotiation combines market specifics with buyer human nature factors. I’m good at this negotiation thing since I do it every day. I’m on your side, and my job is to get a combination of the best price and contingency resolutions for your home.
Many sellers are intimidated when there are distressed properties for sale in the area or foreclosures putting downward pressure on prices. However, generally, there is a 20% to 30% difference in selling prices between those homes and seller-occupied homes in good condition. You see, those distressed properties are usually in poor-to-terrible condition. In many cases, they will not even qualify for a mortgage without extensive modifications and repairs, and that’s not going to be possible for most buyers.
The first thing to remember is that you’re selling a “ready to move in” property that commands a higher price. The more “ready to move in” it appears to the buyer on that first walk-through, the better the price you’re going to get. I’ll make some suggestions as to landscaping, curb appeal, outdoor and indoor improvements, and possibly even “staging.” Staging is the process of moving, adding to or taking away from furnishings in the home to make it seem more spacious and to allow potential buyers to view it as “their home” in the future.
Consider the possibility of post-inspection repair requirements by the buyer(s) as well. The time to think about this is from the first offer, as you don’t want to negotiate a purchase price that leaves you little or no room for possible repairs or condition corrections. This single item is the cause for the vast majority of deal failures after a successful initial price negotiation.
Some negotiations are short and sweet, while others can involve multiple counter offers with terms and conditions related not only to price but also related to closing costs, items included in the sale, partial owner financing and more. My job is to work with my sellers to know their needs and to tailor the negotiation to those requirements to get the best deal for them.
Inspection and Repairs Negotiation
While my sellers tend to become less stressed as soon as all of the purchase contract signatures are in place, I am with them and ready for the next negotiation phase. Property inspections can frequently result in buyer requirements for corrections by the seller. Whether you’re prepared for these or they come as a surprise, I’m here to help you to deal with them since repair disputes are the most common reason for contract failures before closing.
Part of my job is to help you to avoid too many “surprises” related to condition and repair negotiations after inspections. I’ll do my best to give you information about what I see that buyers may want to be corrected, but there are things that nobody can anticipate until the inspectors have submitted their reports. This is one other thing I try to do to prepare you and leave some negotiation room for you.
I want you always to be thinking ahead to inspections and repair demands from the first offer, especially when the initial purchase contract price negotiations are in play. No matter how urgent your need sell, if you go too far in price concessions at the beginning, you may have no room left when inspections are done, and condition corrections are requested by the buyer.
Since the buyer is usually paying for and ordering inspections, my job for my sellers is to make sure that they happen on time and that I receive the inspection reports by deadline due dates. I then meet with my sellers and go over the reports and any buyer objections/requirements to develop a counter strategy. If there are no objections or they’re minor in nature and cost, you may opt to agree to corrections. However, if they’re more extensive and were not anticipated, my job is to help you to reply in a way that saves you money and keeps the buyer in the transaction.
Depending on the desires of the buyer and their selection of inspectors, there could be as few as a single inspector hired to do a thorough inspection of the home and all equipment supporting the home. However, there may also be other inspectors hired with a more focused goal, possibly a heating and air conditioning contractor, a well inspector, septic inspector, etc. Each of these inspections will have deadlines for completion and submission of reports and buyer requests for corrections.
I have my list of inspectors and contractors and can call in experts to provide cost estimates and help my sellers to make decisions within the deadline times. Unless you have multiple offers, a buyer in hand is worth something. My job is to get them to the closing table and your satisfaction with your net proceeds from the sale.
Contract to Close Process
My seller clients appreciate my services in listing, marketing, and getting a buyer signed on the dotted line on a purchase contract. However, neither they nor we can rest just because a contract is inked. There are more than 50 tasks and deadline deliveries on my typical residential seller side real estate transaction checklist. I take our responsibilities seriously in the processing of all documents and meeting of all deadlines.
The process of taking a signed purchase contract through to closing involves a great many details, deliveries, and document submissions. I coordinate all of this for my sellers, making sure that all phases of the closing process move along smoothly.
Title – I work closely with the title company and attorneys to make sure that all documents and deliveries are processed promptly. I work with my sellers to examine all of their title and recorded documents to uncover all material defects and items of importance. Though this usually is of more concern to the buyer, sellers must respond to their objections, so it’s important to know what’s in all recorded documents. Example: while there are usually few items in a title binder that can be corrected as they’re recorded and pass with the property, sometimes there are requirements or exceptions that weren’t expected but must be addressed. With the more careful lending environment, more “quit-claim” deeds are being required as one example. Perhaps you have a previous divorce, and the lender wants better protection against claims and will require a quitclaim deed from your former spouse.
Inspections, Survey & Appraisal – My job is to coordinate access for inspectors and the appraiser, and to accept deliveries of reports as well as any objections or correction requirements from the buyers. I take this job seriously and will be with my sellers every step of the way. Every instance of delivery of an inspection and/or buyer objections requires a response in most cases, and there are deadlines. I stay on top of these deadlines, make sure reports are delivered to you on time or extensions are put into place, and that you respond within required timelines. Failure to do so could obligate you to repairs or other corrections or kill the deal.
Repair Negotiations – If the buyer submits requirements for corrective actions to items on reports, I work with my sellers to determine the cost of those requirements and the appropriate response necessary to keep the deal going in a way beneficial to my seller clients. Should you agree to make certain repairs, there will be deadlines associated with completion, and possibly requirements for the buyer’s inspector to return and re-inspect for completion and repair quality. I keep all of this on track for you and can recommend contractors I know do quality work at fair prices.
Lender Document Coordination – One of the leading causes of delayed closings is some problem with funding due to lender last minute requirements or other document demands. I am monitoring all document flows to make sure this doesn’t happen for my sellers. As the seller, you aren’t getting a mortgage, but you need to be very concerned with the buyer’s ability to do so and their lender’s process, ability to meet deadlines and fund at closing. Mortgage problems kill a lot of deals, so we’re going to be involved in the buyer’s process to protect you, our seller client.