Buying or Selling a Home This Summer? - Here's What You Need to Know

Buying or Selling a Home This Summer? - Here's What You Need to Know

The summer months are traditionally a busy time for real estate. The school year has finally come to an end, giving families a perfect opportunity to relocate and start anew. This summer, however, promises different challenges than those of the recent past. With individual markets in a state of flux, the status of interest rates in question, and a bevy of loan products to choose from, the paradigm of how to buy or sell a home has definitely changed.

Regardless of which side of the transaction you may soon be facing, the staff at YOU Magazine thought that some expert advice would be helpful. So we went out and found two top real estate agents to share their insights. Agent one is representing the interest of the buyer. Agent two is acting on behalf of the seller. Together, they will give you a clear idea of what to expect this summer, as well as a game plan to make your real estate experience a positive one.

Home Buyer's Forecast
When it came to finding an agent to represent the buyer, one name kept popping up. Several real estate experts, as well as loan originators, suggested that we contact Chris Heller. He‘s an agent with Keller Williams in San Diego, California, and an 18-year veteran of the real estate industry.

Our first question to Mr. Heller was regarding the condition of this summer's market. Heller stated that he foresees a greater number of homes to choose from than ever before. From the perspective of a buyer's agent, this excites him for one reason – leverage during negotiations. He went on to say that a common misconception among buyers is that a market based on excess inventory means lower prices for homes. Heller claims that a house generally sells for what it's worth, despite the condition of the market at the time of the sale, although there are periodic bargains out there.

When it comes to interest rates, Mr. Heller expects them to be as good as, if not better than, they are right now. He claims the potential downside of purchasing a home this summer is that it could drop slightly in price when the New Year rolls around and sales tend to slow down. He advises that much of a consumer's decision as to whether to buy should hinge on how long they plan to stay in the home. In other words, if you see yourself in the home for a few years or more, there's no need to worry about a home's value 6 months from now.

Practical Tips for Buying
A positive real estate transaction starts with finding the right agent. Heller goes one step further by saying that it's very important to find an agent with experience, not just in the real estate industry, but also in negotiating within the type of market that you're looking to buy.

Speaking of negotiations, Heller says strength in this capacity is one of the most important attributes of a good agent. When obtaining referrals, be sure to ask about this facet of the agent's performance.

Look for an agent who is not only proactive, but also has the time and resources to give you what you need. When interviewing a buyer's agent, Heller suggests asking the following four questions:

1. How do you like working with homebuyers?

2. What do you do that's different from other agents?

3. What is your philosophy on negotiating?

4. Do you have references from recent transactions?


When talking to the agent's references, Heller suggests asking two questions:

1. Did the agent do what they said they would?

2. If you were buying again, would you choose the same agent?

Once you've decided on an agent, Mr. Heller says it's important to listen to what they have to say. You've hired them for a reason, now it's time to let them do their job. In turn, it's also important to be specific, telling your agent what you liked or didn't like about a home. Both of these practices will enable an agent to help narrow your search for the right home.

Mr. Heller also advises all of his clients to get pre-approved for a loan. This allows him to act from a position of strength during negotiations. He says that if obtaining pre-approval is a problem, then there's a good chance the buyer needs to focus on improving their credit. A good agent should be able to point you in the right direction for making that happen.

As we wrapped up our interview with Chris Heller, he offered a few closing tips. Prior to negotiating on a purchase, you'll want to decide the price you're willing to pay as well as the price that would cause you to walk away from a specific home. Heller also suggests, "If there's a house you really love, don't penny pinch." He says that settling on your second choice in order to save a few bucks will only lead to regrets.

The Seller's Forecast
Taking on the role of listing agent is long-time friend of YOU Magazine, Terry Moerler. With 27 years of experience in real estate, Moerler is a recognized international speaker as well as a bona fide expert on the subject of how to get homes to sell quickly.

We began Moerler's interview with the same question we posed to Chris Heller; what could sellers expect during this summer's real estate market? Moerler agrees with Heller's claim that more homes will be available than ever before. Ms. Moerler added that many of these homes will be sold due to some type of need and, unfortunately for the sellers, they could stay on the market longer than in years past.

When asked about these longer durations, Moerler says that aside from surplus inventory, this year's buyers are more cautious than ever before. She says, "Buyers are confused," and much of the confusion comes from media inundation regarding issues such as subprime foreclosures. That angle, she claims, is being blown somewhat out of proportion.

Moerler believes that longer selling times are part of a backlash from the recent seller's market. She claims that many sellers got caught up in the hype and subsequently overpriced their homes. While the majority of these homes eventually reduced in price, the result was a longer wait to sell.

Practical Tips for Selling
When looking for a quality listing agent, Moerler says there are three areas of importance. First and foremost is the agent's ability to properly price the home. Second, and in accordance with Heller's assertion, Moerler claims that the ability to negotiate is crucial. Lastly, she says that a good agent will correctly oversee the transaction, safeguarding the client from worry as well as unprotected risk.

Moerler says if you are truly serious about selling your home, then you need to prepare accordingly. She suggests that you begin by obtaining an early home inspection. This step is normally handled during the sales transaction but, by taking a proactive approach, sellers give themselves an advantage. Decisions can be made about whether to fix any problems prior to listing the home, or the seller may choose to simply disclose them to the buyer up front. Either way, it sends a positive message to the buyer and their agent.

For any homes that Moerler lists, she creates something known as a "House Book". Kept in a 3-ring binder, it is a collection of information about the home for sale as well as its surrounding community. Inspection papers, disclosures, HOA information, samples of utility bills, details about local schools and businesses, as well as a list of local attractions are all part of the information inside. This book is made available to any prospective buyers for viewing and is eventually given to the person who buys the home.

Another technique Moerler employs is to create a special finance package for the home. One such package is known as the "2-1 Buydown". This is where the sellers agree to use a small portion of the sale proceeds from their home to reduce the interest rate on the buyer's loan. The money in question can also be used to pay the buyer's closing costs. Moerler says this is an incredible way to set your home apart from other homes that are for sale at the same time.

When it comes to making a home's appearance more attractive, Moerler has no shortage of great advice. She suggests increasing your home's curb appeal by having a well-manicured front yard. Ms. Moerler also says that a fresh coat of paint, a clean front door, and pristine walkways and driveways are super-important. As she puts it, "A buyer decides if they like your home the second they step out of their car."

Stepping inside the home, Moerler says a cost-efficient way to increase its appeal is through the practice of staging. She defines staging as a de-personalization of a home, allowing prospective buyers to see it as their own. Moerler suggests starting with a reduction in your home's clutter. Aside from removing objects from countertops, she says a good rule of thumb is to remove one quarter of the belongings inside the home and storing them somewhere else. This will automatically make the home seem more open and airy.

Once the home has been de-cluttered, Moerler advises her clients to have their home professionally cleaned, including any carpets. The home not only needs to look clean but needs to smell clean as well. She says if the carpets are in bad shape, have them replaced as opposed to offering an allowance to the buyer. The appearance of new carpet far outweighs any monetary offer.

In terms of improvements that cost a little more money but provide more bang for the buck, Moerler likes the idea of painting the home's interior. She suggests sticking to neutral colors like beige or taupe. Also at the top of her list is the removal of acoustic (popcorn) ceilings, the addition of recessed lighting, and the replacement of old windows. Moerler says that sellers underestimate the importance of windows and reminds us that they are the only view to the outside of your home.

Like Mr. Heller, Moerler advises sellers to adopt the proper mindset. Simply speaking, your home could take longer to sell than you initially thought, despite what anyone has told you. That's not to say, however, that feedback as to why it may not be selling isn't important. Moerler likes prospective buyers to fill out questionnaires as to what they liked and didn't like about a specific home. She shows the unfiltered information to the seller so that the proper adjustments, if any, can be made. Moerler also reminds her sellers not to take any negative information too personally.

Lastly, Ms. Moerler likes to revisit her selling strategy with a homeowner on a monthly basis. In between those sessions, she advises the seller to look at other homes for sale in their neighborhood and find out what people are saying. Then ask yourself one question. Are these houses more or less attractive than yours? The goal here is to make your home the most attractive one on the market.

Chris Heller has been ranked as one of the top ten Keller Williams agents (among over 77,000 agents nationally) for the last 3 years. He can be reached at Chris@HellertheHomeSeller.com.

Terry Moerler ranks in the top 1% of real estate agents in the nation. She is currently a broker and consultant, as well as the operating principal at Keller Williams in Westlake Village, California. She can be contacted at Terry@TheMoerlerTeam.com.