Gene Francis & Associates

Gene Francis and Associates would love to help you understand the buying and selling processes. We've assembled this tutorial to help you understand the basics of buying and/or selling a home. If you would like more information, you can email us with questions, or you can setup an appointment by calling (316) 524 8345.








Tools: 

      Amortization Schedule

      Financing Tutorial

      FYI: Buying & Selling

 

GeneFrancis.com
Presents
"A Tutorial to Buying and/or Selling Your Home"
Do I need an Agent?

Can a real estate agent really help me in buying and selling property? The answer is YES!
When you're ready to think about buying or selling your property, you need to ask yourself the following questions: 
Do you have the time, energy, sources of information, and contacts to do the job yourself?
If you are a "do it yourself " person, would the results be as good or better as they would be if you had a dedicated agent working for you?
Would it have gone smoother? Would it have given you more personal time?
Would you have purchased for less or sold for more with professional assistance?
Read the information available here and learn how a real estate agent can help you understand everything you need to know about a real estate transaction.

BUYERS

The buying process...
The process of buying a home or investment generally starts with determining your buying power: that is, your financial reserve  plus your buying capacity. If you give your real estate agent some basic information about your available savings, income and current debt, they can assist or refer you to qualified lenders than can help you.

Finding...
Once you know how much you can and want to invest, the next step is to find the properties that most clearly fit your needs. This is the time to choose a real estate agent. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.

Selecting...
Your job is to make the final selection of the right property for you. This is when excitement and emotion run high.Your real estate agent can assist you in the selection process by providing objective information about each property. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

Negotiating...
There are a great deal of factors in play when you are negotiating for price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings etc. Your agent can also advise you as to which investigations or inspections are recommended or required.

Due Diligence
With a negotiated agreement in hand, it is time to complete the evaluation of the property. Your agent can assist you in finding qualified responsible professionals to check for termites, dry rot, asbestos, faulty structure etc. Your agent, title company, or attorney can help you resolve issues that might cause problems at a later date.

Financing
As soon as you are reasonably sure the property is right for you, the process of obtaining financing begins. Your agent can help you in understanding different financing options and in identifying qualifying lenders.

Closing
Finally, there is the closing. The title or escrow company will handle this process. Again, your real estate agent can guide you through this process and make sure everything flows together smoothly.

SELLERS

Pricing
This process generally begins with a determination for a reasonable asking price. Your real estate agent can give you a Market Valuation Report which compares property in your area and gives you a good idea if your price is a fair asking price. No two properties are alike so your agent can determine variables that affect price.  Your agent can also give you up-to-date information on what is happening in the marketplace and the price, financing, terms, and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.

Marketing
The next step is a marketing plan. Often, your agent can recommend repairs or cosmetic work that will significantly enhance the salability of the property. Marketing includes the exposure of your property to other real estate agents and the public. Advertising is part of marketing. The choice of media and frequency of advertising depends a lot on the property and specific market. In some areas, newspaper advertising generates phone calls but statistically has minimum effectiveness in selling specific property. Overexposure of a property in any media may give the potential buyer the impression the property is distressed or the seller is desperate. Your real estate agent knows how, when and where to advertise your property. There is a misconception that advertising sells real estate. The National Association of Realtors studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends and family, and personal contacts.

Security
When the property is marketed with the agent, you do not have to allow strangers into your home. Agents will generally pre-screen and accompany qualified prospects through your property.

Negotiating
The negotiating process deals with much the same issues for both buyers and sellers as noted in the Buyer information. Your agent can help you objectively evaluate every buyer's proposal without compromising your marketing position. Between the initial sales agreement and closing, questions may arise. Unexpected repairs, cloud on title, etc. The required paperwork alone is overwhelming for most sellers. Your agent is the best person to help you resolve these possible issues and move the transaction to closing.

How Do Real Estate Agents Get Paid?
Real estate agents or brokers are generally paid through the sales commission paid by the seller when a transaction closes. Agents have expenses in marketing your property not to mention the time and energy required to adequately promote your interest. A good agent is committed to the sale of your property and will work to that end.

You Be The Judge
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider to deal in real estate without professional assistance.

TIPS FOR SELLING YOUR HOME

Make the most of that first impression.....
A well-manicured lawn, neatly trimmed shrubs and a clutter-free porch welcome prospects. So does a freshly painted-or at least freshly scrubbed-front door. If it is autumn, rake the leaves, if winter, shovel the walkways. The fewer obstacles between the prospect and the true appeal of your home, the better.

Invest a few hours for future dividends
Here is your chance to "clean up" in real estate. Clean up the living room, the bathroom, the kitchen. If your woodwork is scuffed or the paint is fading, consider some minor redecorating. Fresh wallpaper adds charm and value to your property. Prospects would rather see how great your home really looks than hear how great it could look "with a little work".

Check faucets and bulbs
Dripping water rattles the nerves, discolors sinks and suggests faulty or worn-out plumbing. Burned out bulbs leave prospects in the dark. Don't let minor problems distract from what is right with your home.

Don't "shut-out" a sale
If cabinets or closed doors stick in your home you can be sure they will "stick" in the prospects mind as well. Don't explain away sticky situations when you can easily fix them before your home is viewed. Just a little effort on your part can go a long way.

Think Safety
If your home is occupied, be sure you have removed all booby traps such as clutter on the stairway, slippery throw rugs, etc.  Make your residence as non-perilous as possible for visitors.

Make room for space
Remember, potential buyers are looking for more than just comfortable living space, they are needing storage space also. Make sure your basement, attic and garage space are at least "organized clutter". Consider your closets. The better organized these spaces are the larger they appear. Now is the time to get rid of anything you don't need.

Make your bathrooms sparkle
Bathrooms sell homes so let them shine. Check and repair damaged or unsightly caulking in the tubs and showers. For added alure, display your best towels, mats, shower curtains.

Create dream bedrooms
Wake up prospects to the cozy comfort of your bedrooms. For the spacious look, rid your room of excess furniture, colorful bedspreads and fresh curtains are a must.

Open up in the daytime
Let the sun shine in! Pull back your curtains and drapes so prospects can see how nice and cheery your home is. When your home is to be shown at night, light up your home. Lights add color and warmth, and make prospects feel welcome.

Watch your pets
Dogs and cats are great companions, but not when your home is being shown. Pets have a talent for getting underfoot. So do everyone a favor and make arrangements for Spot outside or out of the way.

Defer to experience
If a prospect contacts you to discuss price, terms or other real estate matters, advise them to contact your agent. Your agent will appreciate your loyalty and you will appreciate the results!


---Ron Sthmeadick

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