Sellers

Why Should Sellers Still Offer Buyer Broker Compensation?

August 26, 2024 By ctaylor Leave a Comment

Sellers listing their homes have a lot of questions around the recent law changes to how agents are compensated. First of all, not much has changed- commissions have always been negotiable, and offering buyer broker compensation is still the best strategy to fetch the most offers. The main change now is that compensation offered must be communicated between agents off the MLS.

What hasn’t changed is that offering buyer broker compensation can significantly enhance the appeal of a home on the market. Buyers now have legal agreements with their agents that state how much they are willing to pay their agents, should the seller not offer compensation. If no compensation is offered, anyone buying their home with an agent will have to come up with their own buyer broker compensation out of pocket at closing, and with buyers already having to come up with down payment and closing costs, this is very difficult for many buyers. Sellers increase the likelihood of attracting a wider pool of potential buyers, as buyers are now more motivated to see homes that offer compensation to their brokers. Offering compensation to buyers’ agents can lead to a quicker sale and potentially higher offers, as increased competition among buyers often drives up the price.

If you do not offer buyer broker compensation, you could be losing out on most financed potential buyers. VA buyers are not able to pay any commissions if they use a VA loan, so you will likely lose out on any potential VA buyers if you do not offer commission to their agent. If a buyer makes an offer on a home and knows that they are going to have to pay their agent out of their own pocket, they will most likely write whatever offer they were planning to write, less the cost of commissions.

If you offer no commission to the buyer’s agent, you will lose out on so many interested buyers that your sale will take much longer. More days on the market will cost you more money while you are paying the holding costs of mortgage, utilities, insurance, maintenance, and taxes on the home that you are trying to sell. When you do get offers after a home sits on the market for a while, they will tend to be lower.

This is why, historically, the seller pays buyer broker commissions. If you do offer them, your home will be more attractive to buyers, and you will be more likely to sell quicker and higher!

What You Need to Know About the New NAR Settlement Law Changes

August 2, 2024 By ctaylor Leave a Comment

As of August 1, 2024, significant changes have taken effect in the real estate industry due to the recent NAR Settlement lawsuit, and I’m here to keep you informed about how these updates will impact you.

Key Changes:

Buyer Broker Commissions No Longer Advertised on MLS: One of the most notable changes is that buyer broker commissions will no longer be displayed on the Multiple Listing Service (MLS). Commissions offered from the seller’s side will now be communicated between agents off the MLS.
Buyer Brokerage Agreement: Buyers will now be required to fill out a Buyer Brokerage Agreement with their agents regarding the agent’s commission before going out on showings. This ensures that all parties are fully aware of and agree to the compensation arrangement before starting the home search process.
Commissions Still Negotiable: It’s important to remember that commissions have always been negotiable and continue to be so. This flexibility allows for tailored agreements that best meet the needs of both buyers and sellers.
Seller’s Strategy: Sellers are still encouraged to offer the buyer broker’s commission. Doing so can attract more offers and attention from potential buyers, ultimately benefiting the sale process.

Whether you’re buying or selling, understanding these updates will help you make more informed decisions.

Have Questions? Contact Me!

If you have any questions about these new regulations or how they may affect your real estate journey, please don’t hesitate to reach out. I’m here to help you navigate these changes and ensure a smooth, successful transaction.

Contact me today for more information!

Stage Your Home and Sell for More

July 3, 2024 By ctaylor Leave a Comment

In the competitive real estate market, every detail counts when it comes to selling a home. As a seasoned realtor, I’ve witnessed firsthand how the presentation of a property can significantly impact its selling price. One of the most effective strategies to enhance a property’s appeal is home staging. Homes that are staged with tasteful furniture and art consistently sell for higher prices compared to their empty, vacant counterparts. Here’s why staging can make such a difference.

Creating a Vision

When potential buyers walk into an empty house, they often struggle to visualize its potential. Empty rooms can appear smaller and less inviting, making it difficult for buyers to imagine themselves living there. On the other hand, a well-staged home creates a warm, inviting atmosphere that allows buyers to envision their future lifestyle. By showcasing the home’s possibilities, staging helps buyers connect emotionally with the property, making them more likely to make a higher offer.

Highlighting the Home’s Best Features

Staging is an art that accentuates a home’s strengths while downplaying its weaknesses. Thoughtfully chosen furniture and decor can draw attention to architectural details, maximize the sense of space, and create focal points that leave a lasting impression. For instance, a cozy reading nook by the window or a beautifully set dining table can highlight the charm and functionality of these spaces, making the home more appealing.

Demonstrating Functionality

Every home has unique spaces that can sometimes leave buyers wondering how to utilize them effectively. Staging provides a clear demonstration of each room’s purpose and potential. For example, a small, awkwardly shaped room can be transformed into a charming home office or a serene meditation space. By offering practical and aesthetically pleasing solutions, staging helps buyers see how they can make the most of the home’s layout.

Increasing Perceived Value

Staging not only makes a home look more attractive but also increases its perceived value. A well-staged home conveys a sense of care and attention to detail, suggesting to buyers that the property has been well-maintained. This perception can lead to higher offers, as buyers are often willing to pay a premium for a home that appears move-in ready and requires minimal effort to settle into.

Faster Sales, Higher Offers

Statistics consistently show that staged homes sell faster and for higher prices than vacant homes. According to the National Association of Realtors (NAR), staged homes typically sell for 1-5% more than unstaged homes and spend 73% less time on the market. This is because staging creates a compelling first impression that attracts more interest and generates competitive offers, ultimately driving up the sale price.

Making an Emotional Connection

Buying a home is as much an emotional decision as it is a financial one. Staging helps create an emotional connection between the buyer and the property. When buyers walk into a beautifully staged home, they can imagine themselves living there, hosting family gatherings, and creating lasting memories. This emotional attachment can be a powerful motivator, encouraging buyers to act quickly and make higher offers.

In today’s real estate market, staging is a powerful tool that can significantly impact a home’s selling price. By creating a vision, highlighting the best features, demonstrating functionality, increasing perceived value, and fostering an emotional connection, staging sets sellers up for higher offers and faster sales. As a realtor, I’ve seen the transformative power of staging and its ability to turn a house into a dream home that buyers can’t resist. If you’re looking to sell your home, investing in professional staging can be one of the best decisions you make to maximize your return.

Ready to sell your home? Contact me today to learn more about how staging can help you achieve the best possible outcome in your real estate journey.

Fed Holds Rates Steady: A Moment of Stability and Hope for Phoenix Metro Real Estate

June 13, 2024 By ctaylor Leave a Comment

Yesterday’s Federal Reserve meeting brought some welcome news for the Phoenix metro area: interest rates will remain unchanged. While it’s true that current rates are higher than we’ve seen in recent years, and affordability remains a challenge for many, this decision offers a glimmer of stability in an otherwise uncertain market.

Stability Amidst High Rates

The decision to keep rates steady is a positive sign for those hesitant about buying or selling. For buyers, this means no immediate increase in mortgage rates, allowing for more predictable financial planning. Sellers, on the other hand, can take comfort in the fact that the cost of borrowing isn’t escalating, which helps maintain buyer interest.

Affordability Challenges Remain

We acknowledge that high rates continue to impact affordability, making it difficult for many potential buyers to enter the market. However, the Fed’s decision provides a pause, giving both buyers and sellers a moment to reassess and strategize without the pressure of rising rates.

A Cautiously Optimistic Outlook

While we’re not out of the woods yet, the Fed’s choice to keep rates stable allows the Phoenix real estate market to catch its breath. It’s a chance for buyers and sellers to move forward with a bit more confidence and for the market to adjust to the current economic conditions.

Looking Ahead: Rate Drops on the Horizon

In addition to holding rates steady, the Federal Reserve has signaled plans for a rate drop later this year and four more next year. This is encouraging news for the real estate market, as lower rates can significantly improve affordability and stimulate activity. Buyers who have been waiting for a more favorable borrowing environment may find the coming months a better time to make their move, however they should keep in mind that a lot of buyers will be waiting for the rates to go down. When the rates do drop, competition and prices will rise, so some buyers may consider buying now and refinancing later a better option. Sellers can look forward to increased buyer interest as lower rates make home purchases more accessible.

Navigating the Market Together

As always, we’re here to help you navigate these challenging times. Whether you’re considering buying or selling, we can provide the guidance and support you need to make informed decisions. Let’s take this opportunity to explore your options and find the best path forward in the Phoenix metro area’s dynamic real estate landscape.

Stay optimistic, stay informed, and let’s work together to make the most of this period of stability and the promising outlook ahead.

Putting Off These Home Repairs Could Be Dangerous – Have You Addressed Them?

May 23, 2017 By ctaylor 1 Comment

For all homeowners, adhering to a regular maintenance schedule and making repairs as soon as they are needed are effective ways to avoid costly disasters. When your home is on the market, however, it is particularly important to resolve problems before they escalate. Damage to the appearance or structural integrity of the property is every home seller’s worst nightmare.

Although there are some fixes – like updating appliances or adding a fresh coat of paint – that are not urgent, other maintenance issues could become dangerous if not addressed. Here are a few home repairs that you need to deal with as soon as possible:

- A leaky roof. If you’ve noticed your ceiling leaking when it rains, your roof is most likely in need of repair. Not only is a leaky roof a nuisance, but it can cause mold growth and structural damage, and could even start a fire if water makes contact with electrical wiring. At the very least, you could face water stains on the ceiling or walls when trying to show your house – a glaring red flag for buyers. Even if your roof is not yet leaking, it may be a good idea to have it inspected for problems like damaged or missing shingles. Storms and wind can compromise shingles, causing leaks and other problems in the future.

- Faulty electrical wiring. Seemingly harmless problems like flickering lights or outlets that are warm to the touch may indicate serious threats to your home. If you notice these signs, it may mean that your electrical system is overtaxed or the home is wired improperly – which could cause an electrical fire. Call an electrician immediately.

- Clogged gutters. Keeping your gutters clean may seem overwhelming, particularly if your home is surrounded by trees. However, if the gutters become full of leaves and other debris, they will be unable to serve their intended purpose of directing rainwater away from the home and preventing damage to the walls and foundation. In addition, prospective buyers may notice the clogged gutters and assume that your home is not properly maintained. Avoid these problems by cleaning out gutters twice a year, and then using a hose to ensure that water properly flows down the drainpipes and away from your home.

- Pest invasions. Common insects and other pests can cause significant damage to your home. For example, insects like termites can devour wood framing, while rodents can chew through insulation or even wires, creating a risk of fire. Furthermore, the waste left behind by pests may be hazardous to the health of the home’s occupants. If you see, hear, or find damage from critters, assume that you may have an infestation and contact a pest control company.
- Gas leaks. A gas leak is an imminent emergency, since it could lead to fire or an explosion. If you notice a rotten egg-like odor – particularly in the lowest level of your home – get out of the house and call your gas company immediately.