Paul Teixeira

Sales Associate

My Blog

Three Reasons Why Setting Your Listing Price is the Most Important Aspect of the Home Sales Process

11/25/2014

Have you decided to sell your home, perhaps to make an upgrade to a newer, larger house? Whatever your reasons for selling, you'll have a number of decisions to make as you craft your listing and begin receiving offers from buyers but few are as important as your initial selling price. Let's take a look at three reasons why setting your listing price is the most important factor in your home sale.

Reason #1: You Can Scare Off Potential Buyers With A High Price

 

You'll receive the majority of your buyer interest in the first few days and weeks after you place your home up for sale, so it's critical that your price isn't set so high that it scares a number of buyers off. While some sellers believe that it's better to price high and let buyers submit lower offers, this can actually work against you. It's better to have your home priced fairly from the beginning as you can always refuse offers that you deem are too low.

 

Reason #2: Your Price Directly Impacts How Long Your Sale Will Take

 

If you're interested in seeing your home sell quickly it's going to be in your best interest to have it priced competitively. Buyers will be shopping around for similar homes in your community and if there are other listings with lower prices on the market you may find it takes you a while to get your home sold.

 

Also, if you do find a buyer that is interested they'll likely try to enter into price negotiations with you which can extend the length of the sale by a week or more as you go back and forth to reach an agreement.

 

Reason #3: A Low Price Means Leaving Money On The Table

While pricing too high can cause issues with your sale, pricing your home too low isn't going to benefit you either. While you'll likely find that you receive a high number of offers very quickly, you'll end up leaving some of your home equity on the table – equity that you could easily have realized as buyers would have been willing to pay the difference.

Remember – the best way to ensure your home is priced competitively is to have it valued by a real estate professional. Contact your local real estate agent when you're ready to sell your home and they'll be able to determine the true value of your home.

Thank you,

Paul Teixeira
Realtor Associate / CEO
RE/MAX Estates Realty
1075 Raritan Road
Clark, NJ 07066
Tel: 732-388-8989 ext.3926
Cell: 908-447-3409
Fax: 732-453-1996

Should You Remodel or List Your Home For Sale In Clark?

11/20/2014

If you've been watching a lot of HGTV, you may be in the mood to make changes. Is it time to remodel? Or is it time to sell your home in Clark?

Just like anything that gets a lot of use, homes in Clark show wear and tear after a few years. Certain color schemes and decorative styles begin to look outdated. And there are some improvements that you may have put off as a new homeowner that you can afford to do now.

Some market conditions with homes for sale in Clark are in your favor -- interest rates are still extremely low and below where they were a year ago and the economy is improving, so you'll likely get much of what you spend to improve your home back when it comes time to sell your home in Clark.

The question to answer is this: If you improved your home the way you want, would you want to stay in it for a few more years, or are you ready for a complete change and start your search for real estate?

Home improvements can be substantial, such as adding a bedroom and bath to the existing footprint of your home or outfitting a kitchen with new countertops, cabinets and appliances. You want your home to support the standards set by your Clark neighborhood, but you also don't want to end up with the most lavish house on the block.

To get started, put together the right team. If you' aren't moving walls or pouring a new foundation, you probably won't need an architect, but you will need the right contractors, kitchen planners and interior designers to help you put it all together.  You also should call a Top Clark Realtor.

You'll also need to talk to your lender to learn how much you can borrow and whether the current market value will support the facelift.

As you're putting together bids, you may find more work is required that you weren't expecting. Plan for problems to come up, change orders and delays on materials, so you won't get upside down with expenses or sideways with your contractor.

 

Before you make a decision on remodeling you Clark home, make sure you are going to get what you want at the price you want to pay and that you'll be happy with the results for at least several years to come before you sell your house in Clark.

If you're not sure the remodel is the way to go, you can talk to your real estate professional in Clark. Be honest with your agent that you are considering remodeling, but that you are also open to finding another home. Your agent might know of homes for sale that have the size, features and finishes you're wanting. After you view a few homes, you should have a better idea of what you want and what you like.

You and your agent will also discuss selling your home. He or she will create a comparative market analysis of similar homes to yours that have sold recently and are currently for sale so you'll know what you can reasonably expect to net from the sale of your home. From these homes, you'll learn how long homes are staying on the market and if other sellers are getting their asking prices. Together you and your real estate professional can discuss a price range for your home, based on its location and condition.

Keep in mind that all markets have ups and downs so what your agent can show you is only a snapshot of what's true today. If you're happy with where your home ranks amid the competition, then it should be a good time to list your home for sale.

Change is an evolution, and will bring some upheaval to your life. You'll either have to open your home to workers or to buyers. But if you come out on the other side with what you and your household desire, it will all be worth it.

You're Not Just Selling a House: How to Promote the Local Community and Lifestyle to Potential Buyers

11/20/2014

Have you listed your home up for sale? If so, you've likely spent a lot of time crafting your listing and highlighting the many features of your home and property – but have you focused on the community around your home as well? Let's take a look at a few ways that you can promote the qualities of your local neighborhood as you're working to convince a buyer that purchasing your home is a great decision.

Give Your Buyers The A Tour Of The Neighborhood

 

After your listing goes live it won't be long before potential buyers and their agents are calling to set up viewings so they can see what your home looks like in person. When a buyer tours your home, offer to spend a few minutes giving them a quick tour of the local community as well. Have a quick route determined beforehand which takes you past schools, medical facilities and other amenities that will help to reinforce that your area is a great one to live in.

 

Highlight Local Community Centers And Parks

 

Do you have a community center, fitness center or large park nearby? If so you'll definitely want to ensure that your buyer knows about these – especially if you're selling your home to a family with children. Modern buyers are very appreciative of green space and local cultural amenities as in many areas they're becoming a bit harder to find. Point out just how close those local running trails are or how the recreation center is just a short jog away.

 

Have A List Of Local Restaurants And Shops Handy

Whether you live in the suburbs or the downtown core of your city, it's likely that you have a number of restaurants, cafés and shops nearby. Consider making a quick list of these, highlighting any favorites or popular spots that are well-known to everyone who lives in the area. Virtually everyone likes to dine out on occasion, and many buyers will prefer to live in a community that has what they need within a short drive.

If you're unsure of what community features you should be telling potential buyers about, be sure to ask your real estate agent as they have been through the selling process numerous times before and will know how to market the community around your home.

Selling Your House? Three Ways You Can Easily Scare Buyers off - and How to Avoid These Mistakes

11/20/2014

Are you selling your house or condo? Once you place your home up for sale you'll start to receive interest from prospective buyers, many of whom you'll meet in person and invite in to take a look around. In order to ensure your sale goes smoothly you'll want to avoid making any slip-ups that can spook the buyer and cause them to drop their interest in your listing. Let's take a quick look at three ways that you can scare buyers off and how to avoid finding yourself in these circumstances.

Pricing Your Home Too High

 

One of the biggest mistakes made by home sellers is setting the initial listing price too high. If your price is significantly higher than those of similar homes in the local area, you'll find that buyers will be hesitant to make an offer as they are worried about a lengthy negotiation process. Instead, aim to have your home priced fairly from day one and you'll find that you receive far more interest.

 

Being Pushy Or Overbearing During The Sale

 

Selling a home will require a lot of personal interaction between you and the home buyer, and it's important to make them feel welcome and to build a rapport with them. The last thing you'll want to do is to come off as pushy or overbearing, which can sour your negotiations and cause the buyer to decide they may want to work with someone a little more friendly.

 

Neglecting Important Maintenance Or Renovations

Finally, if you've neglected any sort of major home maintenance or if your home has significant damage in an area you may end up scaring the buyer off if these issues are uncovered during a home inspection. As part of the final due diligence process, your buyer will have the home inspected at least once from top to bottom looking for any possible issues that they may inherit after buying the home. If the inspection was to uncover a structural problem like a crack in the foundation, at best you can expect that the buyer will expect a significant discount on the home and at worst they'll walk away from the deal.

If you're serious about selling your home, one of the best ways to ensure that your relations with buyers go well is to have a professional real estate agent represent you during the selling process. When you're ready to sell your home, contact your local real estate agent to arrange consultation where they can explain how home selling works and what you can expect.

What If You Don't Own Your House For Two Years?

11/20/2014

What If You Don't Own Your House For Two Years?

If you owned and lived in your home for at least two years before it is sold, the law -- today at least -- is clear: you can exclude from profit up to $250,000 if you are single or $500,000 if you are married and file a joint return.

But what if you have made a profit on your house, but sell it before the magic two years spelled out in the tax law?

In l997, when Congress enacted this favorable legislation, it had absolutely no inkling that the real estate market in the early 2000's would be so hot, and that so many homeowners would make such large profits on their home sales -- even if they did not own their property for the full two years. However, Congress did provide reduced exclusions if prior to holding the property for the full two years, the homeowner had to sell due to a change in employment, health reasons or "unforseen circumstances".

The IRS has established certain "safe harbors". If the taxpayer falls within one of these safety zones, they will automatically be entitled to the appropriate exclusion of gain.

Here are some of the "safe harbors":

Employment: If your new place of employment is at least 50 miles father from the residence sold than was the former place of employment, the homeowner who sells his/her home in order to be closer to the job can take a proportionate exclusion of gain. For example, if the homeowner owned the home for only one year, that homeowner would be entitled to exclude half of either the $250,000 or the $500,000 exclusion, depending on the marital and tax filing status of the taxpayer. According to the regulations, employment is defined as "the commencement of employment with a new employer, the continuation of employment with the same employer, or the commencement or continuation of self-employment."

Health: if a doctor recommends a change of residence for reasons of health, this will be a safe harbor. What determines "health"? According to the IRS, "if the taxpayer's primary reason for the sale is (l) to obtain, provide, or facilitate the diagnosis, cure, mitigation, or treatment of disease, illness, or injury... or (2) to obtain or provide medical or personal care for a qualified individual suffering from a disease, illness or injury." It should be noted that "qualified individuals" includes family members who are in need of medical assistance away from the principal residence.

The IRS made it clear, however, that a sale of the family home merely because it is beneficial to the general health or well-being of the taxpayer will not fall within the safe harbor.

Unforseen Circumstances: Congress passed the buck to the IRS to come up with definitions -- safe harbors -- under this amorphous category. The IRS rose to the challenge, by providing that the following events would be considered "safe harbors", on the condition that these events involve the taxpayer, his/her spouse, co-owner or a member of the taxpayer's household:

  1. death;
  2. being terminated from employment and thus eligible for unemployment compensation;
  3. a change in job status that results in the taxpayer being unable to pay the mortgage and reasonable basic living expenses for the taxpayer's household;
  4. divorce or legal separation;
  5. multiple births resulting from the same pregnancy;
  6. Involuntary conversion of the property -- such as a condemnation by a governmental authority, and
  7. destruction of the property because of a man-made disaster, an act or war or terrorism.

Additionally, the IRS kept the safe harbor door open by allowing the IRS Commissioner the right to expand these seven items should the need arise - either generally or in response to a particular situation involving a specific taxpayer.

Taxpayers who believe that they are entitled to claim an exemption because they fall into one of these safe harbors should immediately consult their tax advisors -- and preferably before you sell.

Determining the safe harbor is the easy part; calculating the applicable exclusion may require a graduate degree in mathematics. According to the IRS, "to figure the portion of the gain allocated to the period of non-qualified use, multiply the gain by the following fraction:

Total nonqualified use during the period of ownership (after 2008 for 2013 tax returns) / Total period of ownership

For more information, check out IRS Publication 523, "Selling Your Home", available free from irs.gov/publications.


Written by Benny L. Kass

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