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Ron Wynn

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Knowing 1 Key Fact Can Make You a Fortune In Real Estate

It doesn’t take a rocket scientist to know a buyer is searching for motivation and trying to guess if a home’s selling price might be flexible, or if the seller may be hungry for a low offer.

Searching for motivation is always a factor for both a seller and a buyer. Let’s examine motivation and how to play it out.

First, let’s position ourselves as a buyer in today’s market. A buyer who spots a new listing these days needs to focus now on how to appeal to the seller.

Does a buyer reveal he is desperate to buy a home; show that he has a more than enough cash, has a preapproval letter exceeding the price he has offered; and say he will reduce the contingency period significantly after making an offer $100,000 above the listing price?

We now even see buyer offers written to state, “Escrow period can be the seller’s choice, of 30 days to 6 months.” An offer might give a seller a 30- to 45-day rent back for $1 total rent.

I’ve even received an offer (as the listing agent) that said, “Price to be $20,000 above seller’s highest offer (limited to $200,000 above the asking price as an outside limit).”

Is this crazy? This is a buyer’s motivation in full color and without any hesitancy.

Now, what if a property has been on the market for 90 days, its listing price has been reduced three times, and the MLS and Zillow history shows the property has fallen out of escrow three times?

Do you think a buyer would jump at this listing the same way he would for a new listing in mint condition priced to attract multiple offers?

Of course not.

When a home is a new listing and a hot property, a seller is completely in the driver’s seat.

Now let’s look at a property with a not so favorable history. This scenario is entirely another story.

Perhaps there are several buyers who see a property but recognize it is way overpriced.

In the beginning, the seller may have appropriately said to their agent, “These people can’t afford my property, so find me a buyer who can appreciate and pay for all of the amazing improvements I have made.”

Sometime after 180 days, the house remains unsold, and the seller may come to realize the home is overpriced.

Now it is up to the seller whether to chase buyers with a price reduction; to lease the home out, rather than sell it; to remain on the market without a price reduction; or to remove the home from the market.

In some cases, a seller may need to sell, eliminating several options that allow buyers the leverage they have been waiting for.

Some buyers look specifically for homes that have been on the market for a long period of time and whose seller they can eventually wear down to a very attractive selling price.

Such scenarios include the following: a seller who has purchased another home noncontingent on the sale of their home; a seller who has already moved out, leaving their home vacant; a seller in financial stress or default; a seller who has accepted an out-of-state job; a seller who has health issues forcing him or her to relocate; or a family selling the home of a parent who recently passed away.

These cases still exist.

There are far more cases of motivated buyers than distressed and desperate sellers, but both certainly exist.

My advice to a buyer is to offer your best and stop trying to get a bargain.

My advice to a seller is to price your home competitively and expose it to the market with the guidance of a good real estate agent who is professional, ethical, knowledgeable and prioritizes your best interest.

Be sure to discuss a variety of strategies before making a commitment to an agent or a price.

Author: Ron Wynn

Source: Fox Business: Why understanding ‘motivation’ can land you a real estate bargain

We secretly hope that moving into our new home will start a new chapter of good times

It’s become almost an expectation that when entering a home or condo on the market, you will see the dining room table set with candlesticks, placemats and wine glasses; and the kitchen set with stylish canisters, dried pasta displayed in glass flasks and a colorful fruit basket. I’m being a bit facetious because, in fact, those are not at all the true elements of current professional home staging, but you get my drift.

Staging starts with an emotional direction or theme. Stagers are not realtors, and realtors are not stagers. With that said, there should be a meeting between the real estate professionals before the showings begin to establish the theme and how to best stage each room.

They should know in advance who the target buyer is and what any particular buyer’s needs are, i.e. sleep, work, play, entertainment or maximum usage of the floor space. There are certain ground rules to work with from the beginning regardless of whether it is a home or a condo geared to appeal to someone young, middle-aged or older; to someone single, a couple or a family.

The current trend is Zen-like, minimalist and clutter-free. The goal is to set a soothing and functional vibe. Everyone aspires for a good life: stress-free, calm and without drama. A home that is painless, easy to care for and nondemanding after we plunk down our big down payment is what we crave. We just want to move in and let the good times roll.

Even though life always has its ups and downs, we secretly hope that moving into our new home will start a new chapter of good times, prosperity, friendships, new experiences, financial growth and security.

HERE’S WHAT YOU CAN GET FOR $800,000 IN CHARLOTTE, NORTH CAROLINA

For some people, it might be one of these things, and for others, it might be all of them. The staging needs to remind a buyer of how close he or she is to living the dream.

It all starts with a good plan. Start by thinking “clutter-free.” Remove unnecessary stuff; either donate it or toss it. The complete transformation of space includes all your senses. The subtle use of color probably evokes the most emotion over your entire canvas. All the organic colors that come from nature make an area look soothing and comforting. Organic materials, soft colors and avoiding clutter will best enable you to show your beautiful place.

The current trend is Zen-like, minimalist and clutter-free. The goal is to set a soothing and functional vibe. Everyone aspires for a good life: stress-free, calm and without drama. A home that is painless, easy to care for and nondemanding after we plunk down our big down payment is what we crave.

Whether you have a large or small space, it’s about opening it up and making it fitting and functional. Concentrate on “less is more.” No chatchkes. If you use a prop, it should have significance and offer a lifestyle suggestion. Concentrate on clean lines and simple shapes, and always focus on making your rooms feel welcoming and relaxing. For example, the warmth of real wood under your feet gives an incredible organic tactile feeling.

Lighting is also an important consideration. The best lighting is a combination of natural sunlight, overhead can light and accent lamps. Mood lighting can be adjusted at night, and natural light will make a cheerful statement in the daytime. Installed lighting is a needed backup to sunlight.

In conclusion, think Zen: clean lines, minimalism and soft colors all focused on easy living. Decide in advance the function of each room. Will it be an office or a playroom? A gym or a studio? The rest is about making your home meet potential buyers’ expectations and making them say, “I could live here … quite happily!”

Author: Ron Wynn

Source: Fox Business: After coronavirus, here’s how to stage your home to sell it fast

Real estate expert Ron Wynn answers reader questions about when to sell and the current market environment.

What is the best time of the year to sell my house?

There may not be a best time of the year, but we always tell people to avoid the holiday season. Perhaps August would be slow because many people travel.

My advice is to watch interest rates and inventory. When interest rates and inventory are low, there are plenty of buyers. The less inventory and the more buyers, the more likely you are to get top dollar.

Looking at the most recent sales, you will see that homes are selling for the listing price and above.

Should we wait until there is a stepped-up cost basis before we sell?

This is a difficult question. When a spouse passes away, a stepped-up cost basis will, in most cases, allow the surviving spouse to sell without paying taxes. Also, if a blood-related relative inherits the property, in most cases, the property is inherited without the relative paying taxes.

That said, there are always reasons why someone would sell the property and pay the taxes. Check with your CPA and attorney before committing to sell.

Is the current real estate market here long term or just a bubble?

It is always difficult to forecast the future, and the market can change on a dime. We have seen this many times in the aftermath of earthquakes and terrorist acts, for example.

Normally, the market runs in seven- to 10-year cycles. We are well into this cycle, so it is only natural to experience a leveling off period soon.

Since interest rates are still very low and it looks very promising for the future, there does not appear to be a bubble. When employment stays high, inventory is low. Demand will stay high with low interest rates.

No one can forecast where we are heading, but it does not appear to be a bubble.

What is the biggest reason homes fall out of escrow?

Every situation is different; however, contrary to the thought that it is failure to qualify for financing, it is much more often issues that cannot be adequately negotiated from home inspections or simply buyer’s remorse. Runner-up issues are appraisals not meeting the agreed-upon selling price and disclosure issues not being reported.

Can I sell my home for all cash, or will I need to worry about a loan?

Today, all sales seem to be all cash. A buyer will either pay all cash or come to you with a loan preapproved and in place.

If a buyer has a loan in place and a preapproval letter, you do not need to worry about it. You will receive all cash and can usually close escrow in less than 45 days.

Author: Ron Wynn

Source: Fox Business: Real estate expert Ron Wynn: Best time to sell your house? Here’s my advice

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