Real Estate

Selling a Property and Some Traps People Fall Into

dianahill
Diana Hill
Professional Real Estate Investor Instructor

1)     The market is what it is today – not yesterday or tomorrow.

The timing of selling a property has to be based on your needs today and ability to time the market.  Many people are waiting to sell their property because they are waiting for prices to return to pre-recession levels.  There are no BIG booms on the immediate horizon.  Will there be big booms again, inevitably yes, but waiting for that time can keep you from moving forward. Also when a boom materializes who knows what other factors there will be to consider (for example higher interest rates).  What you do know is where the market and your goals are at this moment.

2)     Why and how to use professionals

We often forget to listen to professionals that we have hired.  We can’t all be experts in every field – most of us would never think about preforming surgery on ourselves, just because we read an article about the procedure.  Many of us however, think if we read an article on real estate we must be an expert and in no need of professional guidance.  One example would be thinking we could value a property. Real Estate professionals are trained to analyze real estate data so they can assist their clients in arriving at the correct market value of a property.  This really is a skill. You want to take the guess work out and price the property to get the best offer. Pricing the property incorrectly can make it sit on the market too long and this can be very detrimental.  A successful CA residential broker says that an optimal window for getting good offers on a property is 3 weeks.  A real estate professional should also guide you through the very legal and litigious process of contracts and disclosures.

3)     Getting hung up on the “Selling Price” as opposed to the “Bottom Line” 

Don’t get me wrong, selling price is important, but there are many elements in an offer of value to the seller.  1) Closing date – sooner rather than later can translate into substantial dollars for the seller. 2) Asking for no repairs – the buyer purchasing the property in an “as is” condition. 3) Offer made without contingencies – such as waving the appraisal.  This is why the term “best” and “highest” offer is used – because price is simply not the only consideration.

4)     Being “in love” or emotionally attached to the property  

We often see this when a home is sold.  It is important that a seller see it as a business transaction.  A professional can help guide a seller into making the best possible decision given their long term goals.  I believe the seller is much better served by not being present when the property is being shown to prospective buyers. This way some of the emotion can be removed from the transaction.   On the west coast, we can complete a real estate transaction without ever meeting the buyer/seller – as opposed to the east coast where the closing includes all parties and their attorneys at a table together.

OTA Real Estate offers wholesale, multi-family, commercial and fix-n-flip real estate investing courses.

Great Fortune,

Diana D. Hill – dhill@tradingacademy.com

Disclaimer
This newsletter is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results. Reprints allowed for private reading only, for all else, please obtain permission.