Naples Florida Real Estate

The Key To Success

Let's assume it's in exceptional shape. Let's say your terms are competitive; your timing's clearly set.

Now, what about your asking price? Without question, price is your most important sales tool. Here's why:

The period of best opportunity for selling a home at a reasonable price is the first four weeks after it is put on the market. Buyers who have seen most available listings are waiting for just the right house to come on the market. If your house is priced right from the first, you are in the best position to attract the maximum number of buyers able to pay the price your home is worth - and to sell your home within your timetable.

If your house is underpriced, you may be swamped with lookers and perhaps get many offers. But you could lose thousands on one of your family's largest investments.

If your house is overpriced, lookers are apt to be few and far between, with little chance of any offers to pay your unrealistic price later, but by that time you will have missed many of the most interested buyers.

How do you set the right price?

Arriving at an asking price involves up-to-the-minute research and experienced judgment. Besides enlisting our help in checking out the current real estate market conditions and financing trends, the basic steps include:

• Measuring your home against similar neighbourhood homes that have recently been sold or are currently on the market.
• Determining what features make your house stand out among others currently on the market. After all, buyers are comparison shoppers.
• Weighing the spending of a reasonable amount of money on cosmetic fix-ups that might enhance the marketability of your house and earn the highest possible sale price.

The right price is usually within 5% of market value (a constantly changing factor) and usually results in a fair-dollar sale within a reasonable amount of time. As we say, "Price Sells."

Why is overpricing risky?

A price more than 5% over market value may have these results:

• Buyers may resist inspecting your home because they can find better values elsewhere. (Overpriced houses tend to sell the competition first.)
• Potential buyers who can't afford the price don't bother to look - or to make offers.
• A buyer willing to pay an over-market price may have difficulty getting financing. Lenders may not approve a loan if the appraisal is lower than the contract price. (The delay from a failed sale can mean missing out on the critical first 30-day marketing period.)
• Your unsold home will begin to get "stale," as the marketplace assumes there is "something wrong" with the house.
• To make up for lost time you might be inclined to lower the price below competing houses in order to move it.

Is it ever smart to underprice?

Setting a price below market value usually isn't preferable because you may be losing money. If time is more important than money and you need a faster-than-average sale, you may consider setting a bargain price, to attract the greatest number of prospects. From experience, we know market value delivers the optimum number of prospects at the best price for a quick sale.

When you're ready to sell your home, take advantage of our real estate expertise to help you price your home to sell.

How A Market Analysis Helps Price It Right

Only a professional market analysis can give you the accurate, reliable foundation you need to price your home right. When you ask for a fair-market analysis of your home, here is what we do:

• Evaluate your home's location and lot size; your homes age, size and condition; the number of bedrooms, baths, total rooms; the kinds of extra features you have (such as improvements, built-ins, garage, toolshed, spa).
• Examine the condition and appearance of your home's exterior and interior. Help you determine what repairs or refurbishing may be needed to sell your home at it's best price.
• Review the assessed value of your home, it's previous sale prices, your maintenance and utility costs and your local taxes.
• Compare your home with similar area properties currently for sale or recently sold.
• Note current real estate market conditions with a practiced eye; also current interest rates and lenders' criteria.

The value of home inspections

Home Inspections provide a definite value by giving a level of objectivity in evaluating a home. When a home owner determines the value or condition of a home, it is very difficult to separate the emotional aspects of the home from the objective inventory of features and condition. It is part of our nature to invoke the emotional value in a home from our personal perspective, which can cause conflict in the sale process. A deal for buying a home can fall apart over old appliances or home improvement work that has sentimental but not intrinsic value.

Home inspectors play the role of objective third party. Typically, home inspectors evaluate a property five to 10 days after negotiation of a contract is complete in order to secure mortgage approval. This inspection only checks the condition of the home at the time of inspection and is no guarantee of condition beyond that point. Home inspectors need no special equipment beyond flashlight, ladder, simple tools and documentation. Some special features on a home may not be included in the inspection such as swimming pools, in-ground sprinklers, gazeboes, etc.

A good inspector will check for radon and other harmful gases. It is important that buyers of a home go on the inspection with the inspector and observe. A good inspector will freely describe what they are looking at, how to check for problems and what condition they believe the area is in. Often they can show you useful things like a shut off for water, where to light a pilot light on a furnace and other bits of information.

Do not settle for a verbal confirmation of condition on a property — get a report in writing. Some inspectors will fill out a standard inspection checklist, but detailed reports are far more helpful. This is not to say that inspectors will catch every possible problem in a home, but a thorough inspection will give a much greater piece of mind to a purchaser.

A typical inspection will cost about $250 to $350 and take a few hours. It is recommended that any home, even a new home, be inspected. Often in a rush to develop a subdivision corners may be cut that can present problems in the near future. The new home delivered to you may not be as flawless as the model you tour. Inspection allows buyers and sellers to resolve problems prior to closing and makes it less likely to the buyer that some defect has not been disclosed about the property.

Home inspection is largely an unregulated industry so do not neglect making sure you get a qualified inspector. Home inspectors should not recommend or bid on repair work, as this is a conflict of interest. When selecting your inspector, get a few references from the inspector and do contact them. Get a referral for an inspector from a source other than a real estate company (such as your mortgage lender).

Quality Check

Check to see how long the company has been doing inspection. Does the company have Error and Omissions insurance? Will the company give a written and signed report? Does a company stand behind its report (give a guarantee)? How many real estate companies does the company give service too?

Real estate agency relationships

In real estate, there are different forms of agency relationships. Before an agency is established in writing, an agency relationship may be established by the actions of the individual parties. If it walks like a duck and talks like a duck it might be legally defined as a duck, but usually, any relationship before a signed agreement is more likely to be classed a “customer relationship.” A customer relationship is generally defined as the agent owing a duty of honesty and reasonable performance, but is not under contract to perform as an agent. All agency agreements define the specific performance required of the agent, how the agent is to be compensated for that performance and the responsibilities of all parties.

The different kinds of written agency that are available are:

1. Seller's Agent
When a real estate company is a “seller's agent,” it must do what is best for the seller of a property. A written contract, called a listing agreement, establishes seller agency. It also explains services the company will provide, establishes a fee arrangement for the Realtor's services and specifies what obligations a seller may have. A seller that enters into a non MLS Exclusive Listing Agreement has great flexibility in the terms and conditions of the contract. A seller entering into a MLS Listing Agreement has somewhat more limited flexibility being required to conform to the standardized rules and regulations of the MLS system.

A seller's agent must tell the seller anything known about a buyer. For instance, if a seller's agent knows a buyer is willing to offer more for a property, that information must be shared with the seller. Confidences a seller shares with a seller's agent must be kept confidential from potential buyers and others. Although confidential information about the seller cannot be discussed, a buyer working with a seller's agent can expect fair and honest service from the seller's agent and disclosure of pertinent information about the property.   

2. Buyer's Agent
A real estate company acting as a "buyer's agent" must do what is best for the buyer. A written contract, called a Buyer Agency Agreement, establishes buyer agency. It explains services the company will provide, establishes a fee arrangement for the Realtor's services and specifies what obligations a buyer may have. Typically, buyers will be obliged to work exclusively with that company for a period of time. The buyer agency contract is a contract between an agent and a client and is usually based on the Ontario Real Estate Association’s Buyer Agency Agreement. This contract can be modified by written agreement of both parties to their satisfaction. There are no MLS requirements for buyer contracts as there is no Buyer MLS system in place at this time. Confidences a buyer shares with the buyer's agent must be kept confidential. Although confidential information about the buyer cannot be disclosed, a seller working with a buyer's agent can expect to be treated fairly and honestly.

3. Dual Agent
While Dual Agency is widely accepted in many parts of the country, it is actually against the law in the State of Florida.  Agents are only allowed to act as a Transactional Broker if either the Buyer or Seller are not represented by another Real Estate Agent.

Who's working for you?
It is important that you understand who the Realtor is working for. For example, both the seller and the buyer may have their own agent which means they each have a Realtor who is working for them. Or, some buyers choose to contact the seller's agent directly. Under this arrangement the Realtor is working for the seller, and must do what is best for the seller, but still may provide valuable services to the buyer. If the seller and the buyer have the same agent, this is dual agency and the Realtor is working for both the seller and the buyer.

A Realtor working with a buyer may even be a "sub-agent" of the seller. Under sub-agency, both the listing agent and the co-operating agent must do what is best for the seller even though the sub-agent may provide many valuable services to the buyer. Sub agency is created when a buyer chooses not to make a contract with a buyer’s agent and indicates in writing that they would prefer the agent they are dealing with to be the agent of the vendor and for them (the buyer) to have ‘customer status” only with the agent they are dealing with.

Code of Ethics
Realtors believe it is important that the people they work with understand their agency relationship. That's why agency disclosure is included in a self-imposed Code of Ethics which is administered by the Real Estate Council of Ontario. The Code requires Realtors to disclose in writing the nature of the services they are providing, and encourages Realtors to obtain written acknowledgement of that disclosure. The Code also requires Realtors to enter into a written agency agreement with any sellers or buyers they are representing.

Realtors are governed by the legal concept of "agency." An agent is legally obligated to look after the best interests of the person he or she is working for. The agent must be loyal to that person. A real estate company may be your agent – if you have clearly established an agency relationship with that Realtor. But often, you may assume such an obligation exists when it does not. Realtors believe it is important that the people they work with understand when an agency relationship exists and when it does not -- and understand what it means.