Blog

The most important aspect of listing your home for sales is the asking price.
Unlike many other items we purchase, home prices are based on what a
willing and able buyer would pay for the property.

Sounds complicated, right? This is why real estate agents bring comps ( short for comparable
properties) information with them to the discussion. Yet are you using the
right comps to successfully sell your home?

The idea is to gather information about comparable properties that have
sold recently that are similar to your own. The goal is to compare apples to
apples. In other words, the properties should be as close to the subject
home as possible. This includes things like:

· Location – how far is the property from yours.
· Size – square footage is an important aspect of value.
· Number of bedrooms/bathrooms – even if the square footage is
close, the number of bedrooms and bathrooms can have a large effect on
price.
· Style, view, street, yard – even the exact same floorplan can have
vastly different value based on the street it’s on or the view. Size of the yard
and privacy are also critical components of value.
· Amenities – private or community pools and other amenities can
affect value as well.

Your agent will bring recent sales for homes that compare to yours. As you
look through these listings, you can add or subtract values based on the
differences.

This is the same process an appraiser will use to approve the
loan.

While this is more of an art than a science, the right comps can help
you properly price your home for a smooth sale.

It’s no secret that most of the country is currently experiencing a strong seller’s market. Yet even in this competitive environment, almost 25% of all escrows fall through before closing. Home inspections, appraisal surprises, and loan approvals are just a few of the issues which can arise, causing the buyer to pull out of the deal.

An essential component of any listing strategy should be a good backup offer, meaning that another buyer is willing to step in and close if escrow falls through. As you consider a backup offer, here are 4 things you need to know:

1. A Backup Offer Is Legally Binding – A backup offer is a fully executed offer, just like the original, so make sure the terms are acceptable. Typically, the buyer will include a contingency in the event they find another home.
2. Multiple Backup Offers – In a strong seller’s market, it is not unusual to accept multiple backup offers. Always clarify the position of each backup offer and whether you will continue to accept backup offers.
3. Leverage – Backup offers provide leverage during the escrow period as well as security for the seller. Use backup offers to discourage unreasonable requests for repairs or concessions during escrow.
4. Earnest Money – Backup offers do require the buyer to submit earnest money, just like the primary offer. This stays in an escrow account. Often this is smaller than a typical deposit with the condition to increase the amount if the offer becomes the primary one.

Backup offers should be an important consideration in any home sale. Not only do they protect the seller if an escrow fails to close, but the buyer can also have another opportunity to close on a home they love.

A well-equipped home tool kit is not just for weekend warriors and do-it-yourself types. Hanging a picture, tightening a cabinet door, or assembling a Swedish-built cabinet are all moments when one might reach for a tool kit. If your toolbox consists of duct tape and a hammer, a quick, inexpensive trip to the local hardware store can save you lots of time and headache later when you need your tool kit.

Essential Components of the Home Tool Kit

• Hammer – The hammer is the most used tool in any home. Choose one that feels comfortable in your hand and is light enough that you can use easily.
• Screwdrivers – While fancy ratcheting screwdrivers are comfortable, the plain old inexpensive ones work just fine. Make sure you have at least one flat head and one Philips head on hand.
• Nails and Screws – Of course, you’ll need these to go with the first two items on the list. Since these are inexpensive, choose a few sizes to have on hand for various projects.
• Measuring Tape – Alongside the hammer, you’d be surprised how often you’ll use this tool.
• Drill – Drills are versatile tools and useful to hang pictures or tighten screws. Decide whether your preference is cordless or corded.
• Duct Tape – Yes, duct tape does have a role in a well-stocked tool kit.
• Utility Knife – This will not substitute for a saw but small cuts and simple adjustments can be performed easily with this small tool. A box cutter would also work well here.
• Protection – Safety goggles and work gloves offer essential protection from flying debris and hand or eye injuries.

Feel free to add other fun items you find during your stroll through the hardware store. You may never be ready to remodel your entire kitchen, but the right tools will provide you what you need to keep your home in great condition.