What your realtor might be doing wrong...

Your Realtor might be costing you money

If you have a high value home in Bakersfield (over $225,000), and you are listing your home for sale, there are special things that your realtor should do that does not apply in the houses aimed at a lower priced market.

Is your real estate agent costing you money?

It's a different type of sale

Sales for larger value homes is a different type of sale than a sale for a low value home.  There is a third category that does not exist in large quantities in Bakersfield that we are not even addressing: the luxury home sale, which is different even from these first two categories.

A Seller's Agent may have a lot of experience selling homes in Bakersfield at $80,000 to $150,000, but when it comes to selling your home, there are things that they are not considering, or may not think are important.

Things that don't matter (as much) at the lower level

Staging

The profit margins are too low at $80,000 to pay for staging.  Staging is when you put new (or rented) furniture in the home to make it look like a model home.  It helps the buyer feel like he or she is home.  It helps them to see how the space can be used and gives them ideas for what they will do with the property.  A house will sell without staging, but it sells so much easier when the Buyer sees and feels the look of a finished product.  The difference is so great that it can actually help you fetch a higher price for your home.

A staged home will, on average, fetch at least $5,000 more on the open market than a home that is not staged.

Advertising

Low end housing is often filled by first-time home buyers who are overwhelmed with the pressures of life. They work longer hours for low wages, and when they are shopping for a home, they don't know where to start.  For this reason, it can be acceptable for the sellers agent to forget small details like putting the listing on Zillow, Trulia, Redfin, and even Craigslist. (It seems weird that high end shoppers might shop on Craigslist, I will explain in a moment).

The fact is that the shopper of a high end home is more sophisticated.  They absolutely will be checking Zillow to see Zillow's "Zestimate" or the last sale price.  They will frequently go to Zillow by searching Google, which means that everything, including Craigslist ads will show up.  Getting ahead of the buyer and making sure that the information they find is the information that YOU want them to see is critical!  So absolutely make sure that your agent is putting your ads in all these locations!

Owner Occupied Listing

It happens. Sometimes a homeowner needs to sell a home while they still live in it.  The feeling is so uncomfortable to walk through a home with a buyer and see the realization on their face that they are "invading" someone's privacy.  No one likes that.

We make concessions by leaving the house before the Buyer arrives, but it is inevitable that the Buyer will open a closet or a drawer to inspect their future home, and they will see the clothing, the utensils. No matter how hard you try to hide it, the Buyer will learn that you are still living there, and they will feel uncomfortable and guilty when that happens.  It will ruin the Buying experience, which may ruin your offer.

The higher the price tag of the home, the more essential that it is that the home feel like a model home that has never been touched.  It is all about creating an experience for the Buyer and their Agent so that the Buyer's Agent walks out saying to the Buyer, "I'm impressed."  The Buyer will notice, and you can be sure that the Buyer will remember YOUR house.

Finding the "right" agent

If you are about to list your high value home, start by finding the right agent.  Ask them if they will stage the home. Ask them how long it will take till they override the Zestimate with the listing price. Ask them if they will take the time to make an ad for Craigslist and update it weekly so that it stays current.  These are the things you need to know to protect yourself.

The right agent makes the difference, which is why we use trusted agents that we have used for years.  As real estate investors, it is essential that we have real estate agents who will represent us well.  I can tell you that we use Tarah Poochigian at Watson Realty, and Rachel Harless at Keller Williams.

Of course, if selling the home for top dollar is not for you, and you need to have an offer in hand within 24 hours instead of a promise and contract that gives you permission to wait for an offer, then call Phoenix Homes.

Phoenix Homes buys houses in Bakersfield, mostly, but we buy all over the United States. If you need to sell quickly, give us a call. You can contact us by going to our website here:

Link to Phoenix Homes, we guarantee an offer on your home in 48 hours or less.

The Secrets to Stopping Foreclosure

I'm sitting at my desk. It's buried under bills at the moment, and I don't want to pay them. I will, because that is what I do, but it's stressful to consistently make money and watch it flow out the door.

I remember when I decided to change my career.  I was talking to a friend who was in a similar position of paying bills, but my friend was not as fortunate as myself.  On his desk were a number of second, third and final notices. Among them was a notice of foreclosure. My friend was going to loose his house.

It was just 5 years after college. The world was supposed to be on our shoulders, but we were supposed to be conquering it... not being conquered.

My friend, for his privacy, I will call him Jason... Jason confessed to me how alone and embarrassed he felt.  But I knew something that Jason didn't know.... Jason was not alone.  Hundreds of thousands of people face foreclosure every month.  It does not make them bad people, it is just a word that means that we have been hit by unexpected bad times.  It happens!

I wish I had known what I know now.  I could have helped Jason like I am able to help so many now.

If you know a person who is facing foreclosure, let them know they are not alone.  Let them know that there are things they can do to help themselves recover from the foreclosure more quickly.

There are secrets that can stop the foreclosure from finishing.

There are secrets that can stop a foreclosure from appearing on your credit report.

There are secrets that can help build your credit quickly so that you can get a loan for your next house more quickly.

If you are interested in knowing some of these secrets, contact me!  Send me an email, and we can chat.  Contact me at jared@phoenixhomesltd.com.

I know things now that can help.  I know things now that I didn't know when I was sitting with Jason.

Email me today.

What you don't know about selling your house that will cost you $$$

Most people who list their home for sale loose money because of this simple thing.  If they knew, they would save both time and money.  Most sellers loose money while selling their home, because they don't understand two things:

1. Most home sellers do not know how the real estate agent sets a price.
2. Most home sellers do not take into account they money they are loosing while the agent knowingly lists the home above market value.

Together, we are going to fix this issue, and you are going to learn every thing that you need to know to get the highest value for your home.

Step 1 - Understanding the Price Quote

You meet two agents.  Agent #1 tells you that she will sell your house for $200,000 in 30 days or less.  Agent #2 is confident that your house is worth $250,000.  Who is right?  Who do you give the job to?

I can tell you that most people give the listing to Agent #2.  Who would ever choose to sell their home for $200,000 when they could sell the home for $250,000?  It's only natural to pick the agent that gives the highest quote.  Right?

If you would list your home for $250,000 in this scenario, then you have done what thousands have done before you, and here is the problem: The agents know that the larger the number they give you, the more likely that you are to pick them and give them the "Exclusive Right to Sell".  So, agents learn early that to get the contract with you, they must quote numbers that are higher than the market can support!

Hear what I am saying.... I am NOT saying that the house will never get $250,000.  I am saying that if an agent promises you $250,000 for this home:

1. there is a very good chance that the agent feels uncomforatable about this price quote
2. there is a very good chance that the agent believes that the house will sit on the market for a long time at this price
3. there is a very good chance that the agent will talk to you after 60 days about slowly dropping the price, and we will talk more about this later.

In fact, it is very unlikely to find an agent who will be honest with you about the value of your home, because they know that you are going to give the job to the person who provides the highest reasonable number that makes sense to you.

Step 2 - Understanding Reality

You're house has a set value. It does.  Today, right now, there is an exact price that it will sell for. There is a very specific buyer that is going to pay that amount, and the problem is:

1. No one knows who that buyer is or where they are.
2. No one knows what price they are going to offer that you are going to accept.

But the key is this:

1. That buyer exists.
2. The date, time and offer amount is already set at some point in your future.
3. When it comes, you will accept it.

The agent's job is to tease Buyers with your house, to entice offers, so that you can accept or reject the offers.  The agent cannot determine the price of your house. Only the buyer decides what he or she will offer.  Then it is up to you to accept or reject.

The reality is this: when an agent tells you that they can get you $250,000 for a home, they are making a guess.

Step 3 - Fixing the problem

The key to fixing the problem is by doing the following.

Fix The Problem - Method #1

The first choice you have is to understand that the agent is intentionally overvaluing your home and to understand that the home's price will likely have to be dropped several times during the listing period.  In a rising market, you can get lucky, and you might actually capture a buyer willing to pay above market value for your home.  While you search for that buyer, you will be paying the mortgage, you will be paying the electric bill, you will be paying the water bill, you will be paying the gardener.

Sometimes, letting the agent fish for the highest price will cost you in the long run. It is a gamble, but at least, you are now aware that the gamble exists, and you can accept those risks knowingly.

Fix The Problem - Method #2

The second choice you have is to ask the agent to show you ALL the comparable properties and not just the best 3.

By looking at ALL the comparable sales, you can see what buyers are offering for houses just like yours, and you can help make the decision about where to price your house.  This strategy is called "Choosing Your Position".

In the hypothetical example above, the second agent "chose a position" of $200,000.  Looking at the bell curve graphic, you can see that even seller #2 was choosing a high position, because houses just like yours were selling in larger quantities at lower numbers.  Very few houses were selling around $200,000.

When you see ALL the comparable listings, you can be more knowledgeable about how much risk you are taking when you choose a position like $200,000.  Depending on your financial situation, you may choose a position closer to $187,000, because you see 3 or 4 listings "sold" at that price, and you know that getting a reasonable deal in a reasonable amount of time.  You know that often this is a choice that will result in higher profits for YOU than waiting for a buyer who will pay $50,000 more for your house over the house that is currently listed down the street that looks almost exactly like yours.

Again.... Method #2 is help the agent choose the position by having the agent show you all comparable listings before setting the price on your home.

Fix The Problem - Method #3 

If you are in a big rush, sometimes finding an investor is your best bet.  An investor will give you a price in 48 hours. They are a guaranteed buyer.  They close quickly. They take your house as is with no headache, no detailed property inspections, no repair requests.  This method will get you the largest amount of money only when you are in a rush to sell (Foreclosure, Bankruptcy, Divorce, Moving tomorrow to a new state, etc.).

Obligatory Sales Pitch

No matter which method you choose, it is essential that you understand that your listing agent "Hopes" to find you a buyer at the listing price.  Unless you are selling to an investor, there is never a guarantee, so the best option is to be involved in setting the price and understand the risks.  Ask questions and work with a Seller's Agent who is willing to share information about price and strategy.

If you are selling in or near the San Joaquin Valley, then you should contact Tarah Poochigian at Watson Realty out of Bakersfield.  You can find her facebook page here:

The best seller's agent in Bakersfield: Tarah Poochigian, Watson Realty - http://fb.com/agentTarah

If you want to sell your home within 48 hours, skip the agent and call a real estate investor.  Phoenix Homes buys and sells properties mostly in Bakersfield, CA, but as investors, they will buy anywhere. Get an offer on your home in 48 hours or less by visiting the following web site:

Get an offer in 48 hours or less: Phoenix Homes - http://phoenixhomesltd.com