Jim Valentine on Real Estate
Residential real estate is a series of processes. It begins with sellers contemplating selling. They usually have a reason to sell that contributes to their decisions on marketing and pricing. Are they moving to another state? Moving up or down in the market?
Liquidating an estate, or changing their investment portfolio? There are many reasons why a seller sells, and each has a different way of impacting the decisions of the seller. Some circumstances force a lower price for a quick sale.
Some are just testing the market so they are priced ambitiously and seeing what they might catch. Most situations afford sellers the opportunity to enter the market at a prevailing market price with reasonable expectations as to results.
It is incumbent on the buyer to determine the seller’s motivation and how that may have impacted pricing. Don’t take every price situation at face value. Buyers, too, have different circumstances. A property next to a relative or friend will create a greater sense of urgency than one without the emotional attachment.
A unique property can also generate greater urgency, i.e. — lakefront, or near-lakefront property. Features can also hasten action, i.e. — nice shop building, pond or swimming pool, view, location. Unique properties generate their own market as opposed to something in a large subdivision of like properties.
Once the decision to buy or sell has been made, the shopping and marketing begins. Both require work by the parties and their agents. The successful conclusion of this phase is the offer stage, the stage where the buyer is trying to get the most for the least, and the seller is looking to not “give it away.”
Many factors influence this part of the process. Agents must work hard to provide perspective to their client, so they see how their position and circumstances being afforded them stand up in the overall market. We’ve written about this many times. It isn’t always price that drives the deal.
When there is a meeting of the minds an escrow is opened, and the escrow process commences. This includes getting loan approval, title report, inspections and investigations, and more. A lot of work occurs during the escrow process. Reports come in and must be reviewed.
There may be renewed negotiating due to the content of the reports. Both parties are readying to move, thinking of such details as turning on/off utilities, hiring movers, etc. Everything is on a timing pattern in escrow so everyone must be diligent in their efforts. Stay in close touch with your agent during this process.
The closing process includes funding the loan, moving the buyer’s money, signing the escrow documents, seller signing the deed with a wet signature, etc. The sellers move out and the home is ready. Are you painting, replacing flooring, etc. before you move in? Get it done, move in, and enjoy the fruits of your labor, your new home.
There is a lot of work involved to navigate through the processes of a residential real estate transaction. Your agent is there to help you find your way and understand the whys and wherefores of the process.
You don’t move that often so make the best of it when you do. There is much to understand and consider along the way. Most of it is time and money – choose wisely. Focus on the process you are in, but make sure you are ready for the next one.
Your agent can help you avoid problems ahead when things occur in the moment that can adversely affect you later.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, License No. BS-03481, RE/MAX Gold Carson Valley 775-781-3704. dpwtigers@hotmail.com.