How much should you negotiate on your home?

This may seem initially vague,  but that answer will be different for everyone. Four factors play a major part in the ultimate selling price of your home, and those four factors together will determine the negotiating guidelines that are right for you.

• what is the market value is on your home

• how much is your home listed for

• how much structural or cosmetic work is needed

• how badly you want to sell.

1. What is the market value of your home? If your home's value is estimated from your Realtor  to be at  $600,000, for example, and you have an offer on the table that is substantially less, there may not be any room to negotiate, or any need to , for that matter. If your offer comes in at $620,000 for example, you may just want to accept it right then and there, or just try for a little more. (It never hurts!)

2. How much is your home listed for? Let's say that your home that is valued at $600,000 is actually listed for $650,000, because you wanted to leave room for negotiations. If someone came in with an offer under $600,000 does it mean that they are trying to lowball you? Absolutely not. They just want to get you to accept an offer on your home that is much more in line with market value.  Optimally, you should never put in "negotiating room" on your asking price. Your home  will end up  being labeled as overpriced, and you will not be able to compete properly with the homes in your expanded price range.  Buyers buy on emotion. If they really want your home, they will pay your price, as long as its within market reason, and they have the financial wherewithal to buy it.

3. Does your home need any structural repairs or obvious cosmetic updates? If a repair costs $2,500, subconsciously most buyers will end up doubling that and reduce their offering price by the doubled amount. It might fare better that you acknowledge that the home needs some structural or cosmetic repairs, and state clearly that you have already accounted for that in the price, do you don't get hit in the wallet  twice for one repair.

4. How badly do you want to sell? If you are not getting a lot of offers, or getting very few, that saying "A bird in the hand is worth two in the bush", is much more relevant to you. Just for one quick example, think about each monthly mortgage payment you make, and how much it costs you to maintain your home while it is on the market. If you are sure that the risk of not selling is less than the perceived financial loss of selling, then hang on and wait for another buyer.  But remember to look at your actual bottom line- that is your net proceeds after your expenses.

If the bottom line in your mind is that you won't selll for a dime less than $600,000, your mortgage is $4,000 per month and you have already waited four months to get an offer of $585,000, you have actually spent $16,000 to get to that point (four months worth of mortgage) for a net of $584,000.  If you end up waiting yet another four months and settle for $595,000, you have spent $32,000 to get to that point.
That $595,000 is worth less than the $585,000 just 120 days ago. So it is important to look at your actual net, after you take into account all of your expenses.

But truly, the answer to how much you should negotiate falls squarely on your shoulders, taking into account  these four items, and it is your decision. Let no one talk you into or out of anything. What is best is that you have someone experienced (like me!) give you the best advice  possible. Contact me anytime. I am ready to assist you with all of your real estate needs.

Tweet

Best Fairfield County Connecticut Towns and Cities - Trumbull CT

 

 

Trumbull, Connecticut - The real estate market here is outperforming many of its neighbors, and now is a great time to either buy or sell in this well priced community. Here are some facts, trivia and demographics about Trumbull.

******

Incorporated in 1797
23 Square Miles
35,500 Residents
12,300 Households
89% Owner occupied
17.2% homes built prior to 1950

The town of Trumbull is located just a few miles inland off the coast of Long Island Sound in the mid-eastern section of Fairfield County. One of the many fine qualities the town of Trumbull has to offer is a very well planned mix of old and new, of residential and commercial, and of town and city.

Historic Nichols is a lovely enclave in town, and you'll hear townsfolk give directions based on the Bunny Fountain.  Play golf at Tashua Knolls, or go shopping at the mall. You'll be pleasantly surprised at how this comfortable town has many amenities that only larger cities generally offer.

Trumbull was named after Connecticut Governor Jonathan Trumbull, who was a widely respected figure during the revolutionary war.His second son, Jonathan Trumbull, Jr., also resided as Governor of CT. Brother John was one of our nations most noteworthy early American artists. Famous works include The Declaration of Independence, and other scenes form the American Revolution.Trumbull has two well known historic districts, Nichols and Tashua, and its Historical society is an active one. When you go into town hall you will see many photographs of the older homes in town.

Trumbull's great pride in its parks is evident as you drive through town. Over 1300 acres of preserved land include eight major parks in town, and each has its own claim to fame. You can go swimming or hiking, listen to a concert at the amphitheater, enjoy the BMX racetrack or go fishing, skating or picnicking-and the list just goes on and on.

Trumbull is also home to a vocational agriculture program where students learn to tend animals and plants. You can drive by the school's farm area and maybe catch a glimpse of a couple of cows or sheep, but don't let that fool you into thinking that Trumbull is a rural community. Trumbull is home to the immediate region's shopping plaza with over 200 stores. You will really find whatever you're looking for here, and that means whether you're shopping for a home or shopping for something for your home. . One of the greatest things about Trumbull is that you can feel like you're in the country, but everything is really only five minutes away!

TRIVIA: Trumbull has hosted the state's largest single day fair; The town is named for Jonathan Trumbull, a supporter of the American Revolution; A painting of Jonathan Trumbull hangs in the State Capitol building.

 View an interactive map of Trumbull and search the MLS for listings

Tweet

Main   Trumbull Blog  Property Search

Why a Home's Market Time is Crucial for BOTH Buyers and Sellers

Short and simple. Market time usually translates into money saved or money lost, depending on which side of the transaction you are on. It can also give you a clue to urgency.

The definition of "Market Time" (MT) or "Days on Market" (DOM)  is the length of time that a home is available for sale or the amount of time a particular home takes to sell, and is measured in days.

Market time is always on Realtor's listings, however some Realtors opt to remove that field from the public handout they give to buyers. You can find it on most any MLS sheet by looking for "MT" or "DOM", but only if it has not been removed from your data sheet. The one small glitch is that if you do see it on your MLS handout (if you can find it) is that the market time that is listed is only for that listing. If the home was on the market previously, you won't see an accumulated market time for that home, which is very important.

Some Realtors will cancel a listing, and put it back on the market immediately to hopefully attract buyers. It is against our MLS regulations, but agents do it anyway. The market time would not be accurate in that instance. Then again, some homeowners switch Realtors after their home failed to sell. That listing would come up as "new", and with a short market time which would also not be accurate.

Realtor.com shows Market Time  information on listings as "Days on Site", which can be a few days off, but you still get the general idea. Zillow also shows this figure as "On Zillow" which is also approximate, and "Yahoo Real Estate" shows you the listing date, but none of these sites accumulate market time for prior listings on the same property. Your Realtor must do the research on this. Incidentally, you won't find Market Time information at all on Trulia.

The Money Factor and The Bottom Line:

The newer the listing, the less likely it is that the seller will negotiate on price and/or terms. Remember to have your agent perform a Property Listing History report so that the information on DOM or MT is accurate. The longer the home has been listed for sale, the more probability there is for increased negotiations. Sellers- this is one VERY good reason to price your home properly right from the start!
.
Tweet

Having a Difficult Time Selling Your CT Home? What About Offering Incentives?

There are still plenty of options for you consider if your home has languished on the market for longer than you would like. First, it's time to review your pricing and marketing strategies, and if all looks appropriate on those fronts, you might also want to consider offering incentives.

First, review your home's pricing. Is it in line with what it should be? If your agent has not given you an up to date market analysis in the last month, it should be done now, whether or not you decide to implement any kind of incentive. You may be able to roll the cost of your incentive into the price, and no one would be the wiser. It is important that if you decide on an incentive rather than a price reduction that your home's pricing is still in "the reasonable range".
So before you implement any incentive strategies, make sure you are not "giving your home away".

Next, review your marketing from day one. Is your home everywhere it is supposed to be, and can be on the internet, and is it presented accurately and properly? Do you have quality  marketing handouts?  It's time to fix anything that needs it, before you offer any type of incentive.

The reason that these two  things are so important  is that if they are not what the market dictates that you need, the outcome  for an incentive is  wasted, and so is the time and energy that was put into it. That being said, here are a few ideas:

1. Offer to pay closing costs ( or a portion of them) If your buyer is obtaining an FHA loan, the limit for a seller concession for closing costs is four percent.

2. Offer to buy down the buyer's interest rate.

3. Offer to pay the home taxes for one year, or even 6 months.

4. Offer a One year Home Warrantee

5. Offer to pay one year's worth of Homeowner Association fees.

6. Offer to have a room (or rooms) painted, the carpeting replaced, or some other cosmetic of their choice completed  prior to closing.

7. Offer to pay the first month's mortgage payment.

8. Offer a higher commission to the Buyer's Broker

There are many incentives to choose from, and each home is different. Not so long ago, I had a listing at that backed up to the thruway. It was noisy, as I can assume you could imagine. It was a nice home, but the buyers could just not get over the noise. We offered a parking pass to the train station with the sale of the home as an incentive. ( Parking Pass permits had a two year waiting list at the time, and believe it or not, that helped to sell the home! You just never know.

So don't be afraid to try an incentive, and don't be afraid to try a unique incentive. They do work!

Tweet

The Connecticut Real Estate Market is Not Entirely Out of Your Control.

True, you cannot change the local or national economy. You cannot change the fact that home prices have fallen over the last few years. And, as you know, you cannot change the location of your home.... but you can control  Four very important aspects of the sale of your home.

The Realtor You Choose: The Realtor that you hire makes ALL the difference. We are all in the same industry, however all agents do not treat their seller clients and listings in the same way. What is standard operating procedure for service from one agent is  not even offered by another. Each agent has their own marketing plan, and  you would be very surprised at the variations. We all have our own style of communication and negotiating, and  it is important that you choose the agent that you feel will work the best for you, given all of these factors. Experience and reputation is key, too.

The  Marketing of Your Home: Your home WILL sell faster if it is marketed correctly. Make sure you get a good feel for how your agent will market your home. There are NO if's, and's, or but's about it. I cannot tell you how many poorly presented homes are on our MLS and those listings are not doing the sellers any favors.  In fact, a poorly presented listing HURTS the homeowner financially. There are  many homes that go without  brochures, as well as additional  and/or enhanced internet marketing, ...and that includes social media, too. Make sure your home doesn't go without any of these very important pieces to the overall marketing plan.

Condition: You can control the condition of your home. If there is clutter, remove it. If something needs to be cleaned, clean it. And if something needs repair and its within reason and your budget, repair it.

Pricing: Only you can set the asking price of your home. The agent cannot. A Realtor can guide you to what they think is the best listing price for your home, but only YOU can set the asking price. In the end, it is You and Your Buyer that technically determine the sales price, because without a buyer, you have no sale.

Remember, you are the seller. You are the ultimate boss. After all, it is your home and your money at stake. Give it the attention it needs to effect a sale, and hire The Right Realtor  that knows how to price your home, market your home, negotiate the best sale price possible, and see you through to closing. That's me!

I am in the business of selling homes, and I'd like to be in business with you. Contact me today to get your home IN the Market, and I WILL get your home sold.

Tweet