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Get the Best Agent for Your Sale

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | March 27th, 2013

In many neighborhoods, the backlog of foreclosed properties is now clearing, and home-selling activity is picking up dramatically. Meanwhile, buyers who've been waiting on the sidelines for several years are finally jumping in the fray.

"We're hearing about appreciation for the first time since 2008. That's causing a lot of people to hurry up and make a purchase before they're priced out of the market," says Karen Rittenhouse, author of "The Essential Handbook for Selling a Home."

Rittenhouse, an investor who heads her own realty firm, says buyer eagerness is prompting more wannabe sellers to plan a springtime sale this year. That, in turn, means leading real estate agents are juggling more listings.

But Rittenhouse urges sellers to exercise extra caution when selecting an agent during this busy spring season, to make doubly sure their listing commands the personal attention it deserves.

"You need to ask for referrals, check references and interview every agent you're considering. Like hiring a cancer specialist, you don't want to just pick someone out of the phone book," she says.

Many successful agents hire assistants to handle much of their routine work, and Rittenhouse doesn't necessarily disapprove of this practice. But she says it's important that your primary agent handle such core functions as negotiating on your behalf when an offer comes in.

Eric Tyson, a personal finance expert and co-author of "House Selling for Dummies," says it isn't always easy to determine in advance whether an agent will give your listing the attention it deserves.

Here are a few pointers for home sellers:

-- Review a potential listing agent's track record.

Maybe the agent you're thinking of hiring is a superstar, having won numerous awards for sales volume. Even so, this could be the wrong one for you, Tyson says.

"Just because the agent is a big producer in sales volume doesn't mean (he or she has) expertise selling in your specific area or your type of house," he says.

Tyson and his co-author of "House Selling for Dummies," Ray Brown, urge would-be sellers to get an "activity list" from any agent they're considering. This should itemize all sales closed in the previous 12 months and show the property locations, as well as list and sale prices.

"You can't beat this raw data when you're sizing up an agent," says Tyson, who says an activity list is more revealing than all the awards an agent has won in the past. That's because it tells you how the agent is now performing on a day-to-day basis.

Agents don't just specialize in particular areas, they also specialize in certain price categories, and you should find someone whose focus aligns with your needs.

-- Ask the agents you interview about their vacation plans.

Obviously, agents like to pull away for vacations from time to time. But real estate experts caution against hiring one who plans to head for vacation during the early weeks of your listing period. That could hinder your sale at the time when buyer excitement about your place is high.

Often agents rely on backups when they're away. But Tyson says this is a poor option for clients, especially if the agent is gone for more than a couple of days during the period when offers are most likely to come in.

He says it's unreasonable to ask agents to forecast their travel plans a full year ahead. But a couple of months in advance, it's fair to ask about any lengthy absence that will occur shortly after your property goes on the market.

-- Seek out a responsive listing agent.

Starting the day that your property goes up for sale, you need to start getting a regular stream of feedback from your listing agent.

For example, if your agent stages an open house for real estate professionals in the area -- known as a "broker's open" -- you'll want to receive their comments about the price and condition of your home. Also, you'll want timely feedback from potential buyers who come through your place for showings.

Why is timely feedback essential to a successful sale? Because it allows you to correct course quickly. For instance, immediate feedback that your home is overpriced would let you adjust your price before it's stigmatized.

Your listing agent should be the one giving you feedback on a regular basis. To ensure this happens, you need an agent who is meticulous about collecting comments and passing them on.

You can increase your chances of finding a conscientious communicator by asking the references that your agent gives you whether they got regular feedback. Plus, you can insist that your listing agreement specify how often, and whether by phone, email or text, your agent will contact you.

"When it comes to selling your home, good communication with your listing agent isn't a luxury. It's crucial," Tyson says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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Selling With Sizzle

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | March 20th, 2013

In many neighborhoods, the home sale market is stronger than at any point in the last five years. Still, some houses that should sell easily continue to languish unsold for a lengthy period.

What's the problem? Mark Nash, a real estate broker and author of "1001 Tips For Buying and Selling a Home," says too few sellers grasp the need to fully prepare their property for market.

Through his more than 20 years in real estate, Nash says he's observed that many homeowners object to the hard work needed to put their property in excellent condition.

Nash says most homebuyers will rule out any property that appears crowded or poorly kept. Everything must be in pristine condition.

"Buyers are fussier than ever, and with good reason. With memories of a tough real estate market still fresh in their minds, they don't want to take any chances," Nash says.

Here are five essential steps for a better property sale:

-- No. 1: Buy a paintbrush and get busy.

To show well, most properties need a cosmetic redo that involves extensive painting.

Of course, you can always hire professional painters. But Nash says many homeowners are fully capable of doing interior painting themselves.

"The secret is in the prep work. If you're a good painter and have the time and inclination to do all the necessary preparations, you can save a lot of money," he says.

Nash recommends that do-it-yourself painters seek guidance from a local paint or home store, which can help with color selection.

When it comes to technique, the websites of major paint companies, such as Benjamin Moore, Duron and Sherwin-Williams, can also be helpful.

-- No. 2: Find others who'd appreciate your superfluous belongings.

As real estate agents know, a cluttered home shows poorly. But many homeowners have difficulty dispensing with serviceable items they no longer use. However, they're more willing to let go of excess belongings if they know someone else will use them.

You can give your extra items directly to a charity such as Goodwill or the Salvation Army. Or you can find willing recipients through online recycling services. One such program is The Freecycle Network (www.freecycle.org), which helps people "gift" items to others in the same area. (Membership is free and also allows you to pick up items from others who live nearby.)

Of course, to clear out a property it's inevitable that some items that can't be given away must be tossed out.

-- No. 3: Place excess furniture in storage.

Sid Davis, a real estate broker and author of "A Survival Guide to Selling a Home,' says nearly all sellers have much more furniture than they should to present their property well.

To make a dining room seem larger, he counsels sellers to remove extra leaves from their dining table and to leave only four chairs. Also, remove any bulky china cabinets.

In addition, remove all but a few pieces of furniture from your living room or den. Davis recommends you pare down to a single sofa, a couple of end tables and lighting. If possible, you should also remove a large-screen TV.

Ideally, you'll place any huge pieces of furniture into a storage unit until your sale goes through. One alternative is to store these in your garage until you move.

"Buyers are more forgiving of a garage that's crowded than any other area of the house," Davis says.

-- No. 4: Review the track record of any agent you're considering.

Davis urges sellers to take the time necessary to find the best possible listing agent. And he says statistical measures are often helpful as you seek to determine if a listing agent performs well for clients.

Ask the agent for a printout on his or her sales performance over the past six to 12 months. For each sale listed, make sure the printout shows how many days it took to sell the property ("days on market") and how well the owners did at closing ("list-to-sale price").

But Davis says statistics alone don't give you the whole story.

"You also need to check references, a step most sellers don't take because they're afraid of calling up perfect strangers," he says.

-- No. 5: Make sure other agents in your area know about your place.

Davis says open houses help the agents who run them to find new clients. But he believes they're less valuable to the homeowners whose property is on display.

"Most people who come to open houses are curious neighbors who just want to compare their house with the one up for sale," he says.

Fred Meyer, a veteran real estate broker who sells property near Harvard University, says that what's known as a "broker's open" is more useful to sellers. This is an event designed to draw in real estate professionals from the surrounding area.

Meyer says the big plus of a broker's open is that it increases the exposure given to market-worthy properties.

"If the other agents visit your house and like it, they'll influence their clients to also come by and take a look. Remember, agents have a lot of pull in deciding which properties are seen by serious buyers," he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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How to Rent Without Headaches

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | March 13th, 2013

Many homeowners resist the idea of renting out their property. They fear that the place they've nurtured for years will be badly damaged. Plus, they worry the tenants will default on rent -- forcing them to court to collect what's due.

But Sid Davis, a veteran real estate broker who's owned many rental properties, says the positives of a temporary rental can sometimes outweigh the negatives, especially for homeowners who are unsure whether a move they're making will work out.

"With rising real estate prices in most areas, the costs of moving back could be a lot higher than the costs of keeping that home until your plans gel," Davis, the author of "A Survival Guide to Buying a Home," says.

Retirees who'd like to try out a new location before making a permanent move could also benefit from renting.

"Lots of folks like the concept of moving to a balmy area for retirement. But as enticing as that sounds, they're not certain they'll like leaving friends in their old neighborhood. In that case, they could be better off renting out the old house and also renting an apartment in the new area until their plans are less fuzzy," says Leo Berard, a real estate broker and charter president of the National Association of Exclusive Buyer Agents (www.naeba.org)

"Renting lets you keep your options open about when and where you'll settle down," says Mark Nash, a real estate broker and author of "1001 Tips for Buying & Selling a Home."

Nash urges homeowners to exercise caution before renting out their home. Here are a few pointers for would-be landlords:

-- Investigate the realities of your local rental market.

If the stock of available rentals in your neighborhood outstrips demand, depressing the rental income you could collect, renting instead of selling might not be the best option, Berard says.

As he notes, most large realty firms have rental departments that can help you assess the relative strength of your local market. Agents who list many rentals on the Multiple Listing Service can quickly estimate how much rental income your property could command.

Advertising (online or in print) can also help, Berard says. Survey the ads to see how numerous they are for your type of property (single family, townhouse or condo-apartment) and to gauge the going rents.

-- Factor in the financial implications of renting your home.

When assessing the financial impact of converting your place to a rental, even a temporary one, Nash says you should be sure to factor in home maintenance expenses.

"Upkeep can be a big item. Suppose, for example that your tenants have a major plumbing problem at 3 a.m. At that hour, calling in a plumber could be really pricey," he says.

You'll also want to consider the tax implications of renting out your home. To do so, Nash recommends you call an accountant for advice.

-- Anticipate the need to empty your home of renters before you sell.

Do you intend to rent out your place temporarily with the expectation that you'll probably sell in the future? If so, Davis says you should be aware that it can be tricky trying to sell a home when it's occupied by tenants.

To avoid this problem, Davis recommends you plan to have your property vacated for at least a month before it hits the market. That way you'll have time to paint, clean and do repairs before it's available for showings.

-- Look into professional management for your rental property.

If you're moving far away, you may worry about managing your rental. In such cases, Nash says it could be sensible to consider engaging a professional manager to oversee the property, which would spare you the onerous tasks that come with being a landlord.

He says the sole downside of hiring a good rental manager, who's best found through personal referrals, is that it will cut into your rental income. That could pinch your budget if you're operating with a narrow profit margin.

-- Try to damage-proof your property before your tenants move in.

"Psychologically, as well as financially, people still have an umbilical cord attached to a property they own while tenants are living there," Davis says.

No one can guarantee that your home won't sustain serious damage while a rental. But you can minimize the risk with what Davis calls "preventive decorating."

"Before your tenants move in, repaint your walls with easy-to-clean semi-gloss paint. Seal your hardwood floors with two or more coats of protective coating. And replace valuable light fixtures with less expensive ones," he says.

Davis urges you to be selective in hopes of finding tenants who are tidy.

"One way to screen is to glance into the renters' car to see if it's clean and free of junk. That can tell you a lot about their lifestyle," he says.

As one predictor for whether the tenants will pay their rent as promised, he recommends that landlords seek to rent to those who've held jobs for a lengthy period.

"People who are protective of their jobs won't risk getting dragged to court over lost rent. They know that employers take a dim view of people whose wages are garnished for bad debts," Davis says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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