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By Sean and Blanca | Agent in Maple Grove, MN
  • Are you a Piranha or a Great White Shark?

    Posted Under: Market Conditions in Maple Grove, Home Buying in Maple Grove, How To... in Maple Grove  |  July 6, 2011 12:10 PM  |  438 views  |  No comments


    In the current real estate market there is alot of Blood in the Water.  That makes for some chaotic times in real estate.

    The point of this blog is to explain how to properly make an offer on a home and and get your asking price and avoid creating more chaos in the real estate market. Enjoy.

    (Disclosure) If you are a seasoned buyer/investor this blog is not intended for you. (you have experience) In this blog I'm speaking to 1st time home buyers (or very emotional people) that might need some "advice and guidance".    

    Part 1:  Relax and accept that you're not an expert. 

    These days every buyer wants a killer-deal on buying a house.  The problem we see is, it seems the more uneducated the buyer, the more ridiculous the offer.  It also seems, the more broke the buyer, the more ridiculous the offer.  Yes it is frightening buying a home for the 1st time but there has to be more "agent oversight" when fear strikes. Fear creates chaos and in some cases it looks more like a panic-induced feeding friendzy than real estate.  Stress levels are high, couples start fighting, time is wasted over fighting over price (it feels like slow death from being eaten by piranhas) then the buyer gets mad at the agent. Eventually after 3 days of hell, the seller stops responding or a better offer comes in...  Then the buyer's gets delusional... "everyone is against me... even my spouse!"  Sound crazy?  Believe me it can be intense. 

    Can we all just be honest with each other?  Short sales and Bank Owned homes are for buyers/investors that have cash to fix them immediately. ($10,000-70,000)  If you have cash, we can find you some great prices.  If you don't have cash to make immediate upgrades you won't be able to buy a picture-perfect home 30-40% under asking price.  CAN WE ALL AGREE ON THAT?!   OK.


    First off, agents who are surviving and succeeding in this market are pricing the homes correctly without much cushion.  We have to in order to attract enough showings and offers.  Plus we all know that the buyer will ask for closing costs. (3%)

    Second, sellers don't have 30-40% negotiating room.  And God forbid an investor should buy a distressed property and put $70,000 dollars into it, not to mention months of work and time on the market..  Should they be able to make a profit?  I think so as long as the home is still comping out close to other sold properties in the area.  

    We're not asking buyers to lay over and accept asking price, that wouldn't be any fun!  What I'm telling you is to FIND A GOOD AGENT WHO YOU TRUST AND LET THEM ADVISE YOU.  If you do this, the process will be smoother, less stressful and you'll still buy the home for a fair price. Trust in the professionals, that's why you hired your agent right?  ("Oh yay, that makes sense.")

    Part 2:  Are you a Piranha or a Great White Shark?



    Both species get excited when there is blood in the water but their actions are completely different. 

    When the Great White decides to strike, he is unstoppable. He takes ONE calculated bite. (the initial best and highest offer)  But here is the key..  If he doesn't like what he gets..(Counter offer). He moves on without hesitation.  He is willing to swim away and allow the victim (seller) to bleed to death.  So the seller fears two things from a Great White. 

    1. His bite
    2. His willingness to move on


    We all know what piranhas do.  They take 5,000 bites and the poor animal slowly bleeds to death in agony.  No one wants to deal with piranhas.  If you nit-pick a seller to death, you will waste so much energy that the seller will turn you down because you seem unreasonable.  Or you'll waste so much time that another "bite" (better offer) will come in and you'll ending up loosing the house.

    So which one will you be? 

                 A Piranha or a Great White Shark?

  • #1 Seller Expense - Period.

    Posted Under: General Area in Maple Grove, Market Conditions in Maple Grove, Home Selling in Maple Grove  |  April 28, 2011 1:30 PM  |  406 views  |  3 comments
          

    If you really want to talk about price, and what actually costs the most.. here is the truth.  

    As a seller, what costs you the most money is not Realtor commissions, although they are expensive, no doubt.  it's over pricing.  Here is an explanation of the chain-reaction of over pricing.  

     

    • Over pricing will result in 4 to 8 months (or more) on the market which leads to...
    • Having to lower your price which encourages low offers.
    • Buyers that see that number of days on the market (120 days!) encourages low offers.  
    • Over pricing results in less exposure, activity or clicks. (or zero clicks) When buyers are searching online, if your home doesn't catch their eye compared to the other homes in their search, they will not see or click-on your home.  We can track how many clicks a listing recieves on zillow or trulia for example.  An over priced home often has zero clicks in it's 1st week on the market.  That CANNOT happen!
    • The 1st 14 days on the market is when you have the most views, clicks, showings, calls and exposure.  If you're overpriced, you can kiss all of that momentum goodbye.  Do you think that has a cost?
    • Have you factored in how much your monthly expenses are?  $3500, $5000, $7500 per month?  Mortgage payment, taxes, utilities??  Especially if you're not living in the home? How long are you willing to "sit" on the market and how much will that cost you?  
    • As a smart investor that you are, you could be buying your next investment (home) much sooner than if your house was sitting on the market. Buying your next home with low rates, in a down market and with a ton of selection will make you money! 

                               

      These statements are proven facts and everyone knows them be true but it's so difficult to accept the reality when it is your house that's on the line. Our mind always tries to trick us into thinking...

           "Let's just price it at $xxx,xxx  ($20,000 above what it should be) and see what happens.. Then if we don't get any offers, we can always lower the price in a couple weeks."  

      Why do we fall into that kind of thinking when we know the facts?  I'd say it has to be denial and not trusting our real estate professional.  Please don't get tricked into that thinking.  Now you know the truth.

      SmartHomeAgents




    • Real Estate Tactics - The Preemptive Strike

      Posted Under: Market Conditions in Plymouth, Home Buying in Plymouth, Foreclosure in Plymouth  |  October 25, 2010 12:38 PM  |  374 views  |  No comments



      Real Estate is not meant for the “Minnesota Nice” Realtors.  Especially now days!  If you work with us, the Smart Home Agents, you will learn how to make a “Preemptive Strike offer.”  Let me explain.  

      Let’s say you’re looking for houses in Maple Grove MN.  You only want to spend about $350,000.  You find a home that went on the market 16 days ago - it’s a short sale.  It’s in good condition, but needs new carpet, paint, and the deck needs repair.  But his house is perfect for you and your family.  This is the one you have always wanted!  It’s listed at $410,000 and you say to yourself “this is over priced, I”LL WAIT UNTIL THE PRICE COMES DOWN.”   NO YOU WON”T WAIT!  Wait for what?  Wait for all of the other passive buyers and “Minnesota Nice” Agents to make an offer at the same time you do?  Wait for multiple offers so you have toUP your offer or YOU LOSE the house and your time?   Don’t be a passive buyer.  

      Be a Preemptive Strike Buyer!  Like we advise our clients.  You want to be the only offer coming into the bank.  Your offer will be well organized, very thorough, and the terms will be in your favor.  The asking price will be low, but not a ridiculously low.  For this example, we would offer about $355,000 with the seller paying your closing costs.  If they counter, that is fine.  If they reject your offer, at least you tried.  And guess what?  There will be no other offers because everyone else is “Waiting-for-the-price-to-come-down.”  And after they accept your offer, all other offers will be back-up offers.  

      You win!  And you did it with stealth from 50,000 feet.  Together we dropped a precision - Lazar-guided bomb (offer).  No collateral damage (hurt feelings) because we did it before the competition was willing to make a move.  Are you ready you start your Real Estate Preemptive Strike?

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    • Our Client got pulled over for speeding while we explained her offer was accepted!

      Posted Under: Home Buying in Maple Grove, Home Selling in Maple Grove, Foreclosure in Maple Grove  |  October 4, 2010 12:59 PM  |  307 views  |  No comments
      Be careful about giving extremely good news to your clients as they are driving.  Apparently our client began to stomp her accelerator as her emotions grew higher as we explained her offer was excepted.  She was pulled over right then - thankfully the cop gave her a warning because she explained what had just happened.  Her new home is a $75,000 home and has everything her family needs.  The monthly payments will be so low that this purchase will change their financial picture forever!  Even though there were multiple offers, we built rapport with the seller's agent and submitted an air-tight offer immediately.  It pays to have great agents working for you, the only question is, "how much does it really pay?"


      Sean & Blanca Schellsmidt
      Realtor / CTO Chief Technology Officer
      RE/MAX Results
      612-356-2386
       the Real Estate business; but what we DO is help you find & create your own "Smart Home" ~ Free.

     
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