Realtor – Page 3

Why Are Zillow Zestimates So Far Off Sometimes?

October 27, 2021 By Deborah Ward

You’ve seen the commercials, you know, the ones where people find their dream home and just know they can afford that house in the neighborhood they can’t afford to buy in because the Zillow Zestimate said so. It’s a nice commercial, but it’s not telling you the truth.

Automated valuation models

Zillow, and others, use something called automated valuation models or AVMs to figure out the value of a property. They use it to help buyers make a buying decision, given that 90% of buyers start their search for a new home on the internet.

The technology works something like this. They amass tons of information that are publicly available sources and put them through a sophisticated algorithm to predict value. It seems like it should work like a charm, but Zillow’s Zestimates are rather inconsistent.

Several factors that will affect pricing

A Realtor will tell you that the market can change from week to week and neighborhood to neighborhood. No algorithm, however sophisticated, can do things like quantify the value of a kitchen that was recently updated or a poorly maintained home.

That means that there are several factors that will affect pricing that aren’t part of the AVM. What it really can only do is look at closed sales in a particular zip code and get the average.

That is certainly not going to give you the right figure of either a sales or a buying price. If that neighborhood is out of reach it’s a pretty good bet that the AVM estimate that says you can buy in is most likely off. If you want to know for sure, call a Realtor.

We are always here to help! Give us a call today 727-410-0336

How Are Real Estate Agents Paid When You Sell Your Home

October 27, 2021 By Deborah Ward

You’ve decided to sell your home but aren’t sure how it all works for a seller. After all your current home was your first home purchase. So you have a lot of questions, the least of which is how your Realtor gets paid.

I mean, who has hundreds of dollars laying around to pay an hourly fee to a professional? Relax, that’s not how this works.

Commissions

Unlike many other kinds of professionals such as lawyers or accountants, Realtors do not bill their clients by the hour. They are paid when, and only when, your home sells. But what if the house sells, but the contract falls through? That happens all the time! Am I supposed to pay them then? And how do I know how much to pay them?

Again, relax, “when it sells” means they collect a check when the deed is signed and money changes hands.

So how do they get paid and how do we know what to pay them, you’re thinking

Well a Realtor works with you, the seller, for however long it takes to sell your home, or until the listing contract you have with them expires. If the home doesn’t sell, they aren’t paid for their time.

Realtors are paid a commission. This commission is based on the sales price of the home and the percentage of that sales price is spelled out in the listing agreement you have with them. The average commission percentage is 6%.

As the seller, you pay the commission

How that works is pretty simple. When you go to settlement to sign all those papers the lawyer or title company will know ahead of time what the percentage is for the commission.

They will prepare a statement that both buyer and seller sign. This statement has all of the financial information surrounding the sale on it: sales price, taxes due, money due from the buyer to the mortgage company, money due from the seller for fees, etc.

One of those line items is the Realtor’s commission. It is taken from the proceeds of sale and a check is cut right then for the Realtor. So technically no money directly out of your pocket, but paid from the lump you are getting at the settlement table.

Things To Do At A Real Estate Open House

October 27, 2021 By Deborah Ward

You’re going to an open house for this great house you saw online. Of course the pictures online were flawless and you fell in love with the house. You also know that the Realtor will have the home looking in tip top shape. So what kinds of things should you also look at or do at a real estate open house.

First, don’t go directly to the house

Check out all the information you can find on the house and neighborhood. Local land records can tell you about who the neighbors are. Crime stats can tell you about it’s safety. The state school board can tell you about the local schools. Even assuming you did your homework and the neighborhood “checks out” you want to drive through or even walk around.

Take the time to really go through the neighborhood and see how it feels to you. Remember, the home is on it’s “best behavior” but the neighborhood is just being itself. If you don’t get the right vibe, move on. If you do, keep heading to the home.

During the drive around, eye up the local schools

During your homework phase you found out about the stats, now go see what they look like. Neat and tidy, with safe playground equipment or not well taken care of? Numbers can be misleading, or not, but how a community cares for its schools can scream volumes about the community. It can tell you whether you want your children to attend it or not.

Lastly, concentrate on the house

Not specifically how it looks, but on the changes made to it, and what will need to be changed. If there were changes, were they “legal” as in were the proper permits pulled and inspections done? If the need to be done, how extensive are they?

Don’t just fall for the picture the open house presents, do your own homework and make sure it’s really the home for you.

How Real Estate Agents Are Paid When You Buy Your Home

October 27, 2021 By Deborah Ward

You want to buy your first home, but don’t want to use part of your hard earned deposit to pay a Realtor to help you find one. Set that worry aside because as a buyer you are usually not required to pay any of the Realtors, buyer or seller. No, seriously, it’s true. Here is the rundown on how it works.

Real estate commissions

Real estate commissions, the money paid to Realtors for their services, always sound high, but they are typically shared among several people. Depending on whether your agent works for a broker or not, the commission paid is typically split between the listing agent, the agent who took the listing from a seller, the listing broker, the company employing the listing agent, then your agent, and the company who employs your agent. It may involve less people if one or the other (or both) are independent agents or if the listing agent finds the buyer.

Seller pays

Despite how many agents are involved, the commissions are paid from the proceeds of the sale, from the money that will be due to the seller. That means the seller is responsible for paying any and all agents. That doesn’t mean they pay a higher percentage of the sale if there are multiple agents. The agents share the commission in the listing agreement. For instance, if the listing agreement has a 6% commission, which is pretty typical, then the seller’s agent gets 3% and buyer’s agent gets 3%. If there are brokers involved, the percentage the agent/broker gets depends on the agreement between them.

So as a buyer, you aren’t responsible for payment to the agents, yours or theirs. So start your search and jump into the home ownership fray!

5 Tips For Buying A St Pete Home – Keller Williams St Pete

October 27, 2021 By Deborah Ward

So you want to buy a St. Pete home. It’s a great area, but you know that home buying can be stressful. Here are some tips to make your home shopping easy breezy.

Check your finances

Before you ever walk through a home or talk to a Realtor, check your finances. Know your credit score, check all credit reports with the big three (Experian, TransUnion and Equifax). If you find mistakes or misreports, work to correct them. If you have a lower score or issues on your credit report such as late payments, charge offs or bankruptcies, take a few months to work to improve your score and report. Also work with a lender to get pre-approved for a mortgage. A pre-approval will be a huge plus when you are ready to make an offer on a home.

Know how much home you can afford

Of course, be sure that you know how much home you can afford before you look. One thing a Realtor will ask is a price range to start a search. A good rule of thumb is that your home should cost about 2½ times your annual salary (or combined annual salary if you are buying as a couple. BUT, keep in mind other factors like your current expenses, utilities and taxes for the new home. Be sure that you can afford the home you want. Don’t pollyanna yourself into thinking you COULD BE making enough, be sure it IS what you will be making.

Using a buyer’s agent

Hire your own agent to help you search. Using a buyer’s agent will protect you. Don’t fall into the trap of thinking a seller’s agent will have your best interests at heart. As nice as they will be, their loyalty is to their client, the seller.

Do your homework about the area

Check into different neighborhoods, school districts and such. Check on sales from the last few months for homes in those areas. That way you know the fair pricing and have an idea of how you should bid on homes you see and want to purchase.

Think long term

Also keep in mind that you should be thinking long term. If you are newly married, or planning to be married, chances are you will be in this home when you start your family. So schools are important. Also pay attention to whether a seller has done a pre-sale inspection and ask to see a copy of one for homes you are very interested in. That way you have an idea of any expensive repairs that might become necessary.

If you are looking for a great St. Pete Realtor, give Deborah Ward a call today! 727-410-0336

Should You “Test The Market” With A High Price To Start

October 27, 2021 By Deborah Ward

It sounds like a good strategy, “test the market” by asking a high price for your home. I mean, what harm could it do and you could even luck out and get asking right? Well, not so fast. It’s not a good strategy and here’s why.

Who will and won’t see your home?

For one thing, when you “test the market” the people who can actually afford your home at the right price won’t even see it. Most people start searches online but even if they start with a Realtor, the searches the Realtor does won’t include your home. Those that do see it won’t be interested. Your home will be too small or not what their price range usually offers. Of course, that means you won’t be getting any offers. Unfortunately, your neighbor who is also selling will. Your overpriced home makes their correctly priced one look good. Not to mention that the first few days your home will be on the market are the golden ones. Most deals are made then.

Remember today’s buyers are very savvy

People know what a home is generally worth. They do their homework. They also will be less likely to want to try and negotiate a deal. If they even see the listing. That means your home is sitting and a stale house doesn’t sell for asking, or even for less than the true market price. It’s true. When you lower a price because you asked too much to begin with, those who are interested will demand a bigger discount and more concessions.

What if you do get an offer?

So let’s say you actually get a bite at your first price. Guess what? The house won’t appraise at the high price and the buyer won’t get a mortgage. No mortgage, no sale.
Oh, and if you find a Realtor who thinks it’s a good idea, find a different one!