The "KW Stimulus"
The "KW Stimulus" is simply a suggestion to the "very motivated" seller to offer to pay for mortgage interest rate "buy-down" points for a potential Buyer. So, after the Seller offers closing cost assistance (maybe 2% of price) , a home warranty ($400), and the whatever else, the "KW Stimulus" reminds us all "giving never gets old", and suggests an up-front cash outlay by the Seller to cover "points".
1) Leverage, baby ! You, the "motivated seller" can honestly say you are saving the Buyers BIG BUCKS. Like possibly thousands or tens of thousands over the life of their mortgage. And you are. That 1/2 % reduction of interest on a $200,000 home is worth a monthly payment reduction of $60, but this amounts to a total interest paid savings of over $20,000 over the life of a 30 year, fixed rate mortgage.
2) And if the home is sold VA or FHA, that killer mortgage is assumable. The rate becomes a marketable asset. You are giving them something that will help them sell when it comes time to do so !
Brilliant.
Honestly, you have to hand it to the leaders at Keller Williams. They have taken existing information and gift wrapped it to help both Buyers and Sellers alike. While, of course, continuing to grow the most educated, skilled force of agents anywhere. I am truly glad to be part of that team.
In closure, a word of warning. Panic is expensive. So is impatience. Any fool can give something away. When the only option offered is "drop price", be concerned. While that may indeed be necessary to meet whatever goals YOU have set, there are always multiple options you must be both aware of and pursuing.
For instance, before slabbing $10,000 off the asking price, does your home ALWAYS look stellar from the curb? This probably costs much, much less to accomplish than $10,000.
Have you considered partnering with your agent to fund an "over the top" marketing plan for the home? Billboard advertisement ($700), color newspaper ads($250), use your home to sponsor the neighborhood yard sale / local charity event ($500) ? Postcard mailers with a color picture of your home mailed to 2000 people selected using detailed demographic information ($1,000). ***Costs are estimates. But - you get the picture.
In these difficult times, it is natural to see the glass as half empty. Natural, but wrong. Where there exists great challenges (for Sellers), there exists great opportunities (for Buyers). And in realizing that, Sellers become aware of what they need to do to reach their goals as well !
And that piece of wisdom is what best describes "KW Stimulus ". Understand what is attracting the Buyer, AUGMENT IT to differentiate yourself from everyone else - but do so in a way your contribution is leveraged to deliver maximum value.
That is what you should expect from your agent. And if your agent is with Keller Williams, I like your chances of getting just that.
Wednesday, April 13, 2011
Wednesday, April 6, 2011
The Edinburgh Move – Trade in program
The Edinburgh Move – Trade in program
By Eric Kistner
Introducing the “Edinburgh Move.” This program allows qualified homes to be “traded” for a new Maverick Home! You as the client have the luxury of not having to move twice; your new home is built while you still live in your existing home. It is now simpler than ever to buy a new home in Kingsport!
With historically low mortgage rates, this program further enhances the clients’ opportunity to purchase now and take advantage of these awesome rates, and lower building costs.
It’s simple. You work with Edinburgh Homes’ professional home designer to create your dream home. Once your new home is complete, Edinburgh Homes buys your existing home for a pre-agreed price, and you close on your dream home the same day.
Edinburgh Homes has three communities to choose from, or will work with you to find just the lot to suit your needs. An extraordinary opportunity exists in the marketplace. Low mortgage rates, low building costs and the opportunity to sell your existing home is why we created the Edinburgh Move Program.
Visit us today to determine if your home and home purchase criteria qualify for the “Edinburgh Move” trade program.
Check out our website at edinburghcommunity.com or give me a call at 423-366-0431
By Eric Kistner
Introducing the “Edinburgh Move.” This program allows qualified homes to be “traded” for a new Maverick Home! You as the client have the luxury of not having to move twice; your new home is built while you still live in your existing home. It is now simpler than ever to buy a new home in Kingsport!
With historically low mortgage rates, this program further enhances the clients’ opportunity to purchase now and take advantage of these awesome rates, and lower building costs.
It’s simple. You work with Edinburgh Homes’ professional home designer to create your dream home. Once your new home is complete, Edinburgh Homes buys your existing home for a pre-agreed price, and you close on your dream home the same day.
Edinburgh Homes has three communities to choose from, or will work with you to find just the lot to suit your needs. An extraordinary opportunity exists in the marketplace. Low mortgage rates, low building costs and the opportunity to sell your existing home is why we created the Edinburgh Move Program.
Visit us today to determine if your home and home purchase criteria qualify for the “Edinburgh Move” trade program.
Check out our website at edinburghcommunity.com or give me a call at 423-366-0431
Tuesday, April 5, 2011
Six Selling Myths Uncovered
Six Selling Myths Uncovered
Myth #1: You should always price your home high and negotiate down.
Truth: Pricing homes in Kingsport too high can be as bad as pricing too low. If you list too high, you’ll miss out on buyers looking in the price range where your home should be. Offers may not even come in, because buyers who are interested in your home are scared off by the price and won’t even take the time to look at it. By the time you correct the price and list your home at its fair market value, you will have lost that window of opportunity when your home draws the most attention from the public and real estate agents; i.e. the first 30 days that it is on the market. A well-trained real estate agent who looks out for your best interests will consult with you on your home’s fair market value and different pricing strategies for the current market.
Myth #2: Minor repairs can wait until later. There are more important things to be done.
Truth: Minor repairs make your house more marketable, allowing you to maximize your return (or minimize loss) on the sale. Most buyers are looking for homes that are ready for them to move into. If your home happens to attract a buyer who is willing to make repairs, he/she will begin asking for repair allowances that come out of your asking price. The amount of an allowance that you have to offer a buyer is usually more than what it would cost for you to make the repair (or hire someone to make the repair). Remember, buyers are comparing your home to other homes that are currently on the market. Your home should be inviting so that everyone who looks at it can see themselves living there.
Myth #3: Once a potential buyer sees the inside of your home, curb appeal won’t matter.
Truth: Buyers probably won’t make it to the inside of the home if the outside of your home does not appeal to them. Buyers and their agents often do drive-bys before deciding whether a home is worth their time to look inside. Your home’s exterior must make a good first impression so that buyers are compelled to stop and come inside. All it takes is keeping the lawn mowed, shrubs and trees trimmed, gardens weeded and edged, and clutter put away.
Myth #4: Your home must be every home buyer’s dream home.
Truth: If you get carried away with repairs and replacements to your home, you may end up over-improving the house. There is a point where improving your home doesn’t pay off. The key is to consider what competing properties feature and look like. A highly-motivated real estate agent will consult with you on what competing properties have to offer – he/she can even show you competing properties so that you can make sound home improvement decisions.
Myth #5: You are better off selling your home on your own and saving money on the commission you would have paid to a real estate agent.
Truth: Statistically, many sellers who attempt to sell their homes on their own cannot consummate the sale without the service of a real estate agent. Homeowners who succeed in selling their home by themselves usually net less than if they had a real estate agent working for them. The National Association of REALTORSâ surveys consumers every year, including homeowners who succeeded in selling their home without a real estate agent. Over 70% of these homeowners say that they would never do it again.
Myth #6: When you receive an offer, you should make the buyer wait. This gives you a better negotiating position.
Truth: You should reply immediately to an offer! When a buyer makes an offer, that buyer is, at that moment in time, ready to buy your home. Moods can change, and you don’t want to lose the sale because you have stalled in replying.
Call me to buy or sell ... TODAY... Eric Kistner with Keller Williams 247-5510 or my cell at 366-0431
Myth #1: You should always price your home high and negotiate down.
Truth: Pricing homes in Kingsport too high can be as bad as pricing too low. If you list too high, you’ll miss out on buyers looking in the price range where your home should be. Offers may not even come in, because buyers who are interested in your home are scared off by the price and won’t even take the time to look at it. By the time you correct the price and list your home at its fair market value, you will have lost that window of opportunity when your home draws the most attention from the public and real estate agents; i.e. the first 30 days that it is on the market. A well-trained real estate agent who looks out for your best interests will consult with you on your home’s fair market value and different pricing strategies for the current market.
Myth #2: Minor repairs can wait until later. There are more important things to be done.
Truth: Minor repairs make your house more marketable, allowing you to maximize your return (or minimize loss) on the sale. Most buyers are looking for homes that are ready for them to move into. If your home happens to attract a buyer who is willing to make repairs, he/she will begin asking for repair allowances that come out of your asking price. The amount of an allowance that you have to offer a buyer is usually more than what it would cost for you to make the repair (or hire someone to make the repair). Remember, buyers are comparing your home to other homes that are currently on the market. Your home should be inviting so that everyone who looks at it can see themselves living there.
Myth #3: Once a potential buyer sees the inside of your home, curb appeal won’t matter.
Truth: Buyers probably won’t make it to the inside of the home if the outside of your home does not appeal to them. Buyers and their agents often do drive-bys before deciding whether a home is worth their time to look inside. Your home’s exterior must make a good first impression so that buyers are compelled to stop and come inside. All it takes is keeping the lawn mowed, shrubs and trees trimmed, gardens weeded and edged, and clutter put away.
Myth #4: Your home must be every home buyer’s dream home.
Truth: If you get carried away with repairs and replacements to your home, you may end up over-improving the house. There is a point where improving your home doesn’t pay off. The key is to consider what competing properties feature and look like. A highly-motivated real estate agent will consult with you on what competing properties have to offer – he/she can even show you competing properties so that you can make sound home improvement decisions.
Myth #5: You are better off selling your home on your own and saving money on the commission you would have paid to a real estate agent.
Truth: Statistically, many sellers who attempt to sell their homes on their own cannot consummate the sale without the service of a real estate agent. Homeowners who succeed in selling their home by themselves usually net less than if they had a real estate agent working for them. The National Association of REALTORSâ surveys consumers every year, including homeowners who succeeded in selling their home without a real estate agent. Over 70% of these homeowners say that they would never do it again.
Myth #6: When you receive an offer, you should make the buyer wait. This gives you a better negotiating position.
Truth: You should reply immediately to an offer! When a buyer makes an offer, that buyer is, at that moment in time, ready to buy your home. Moods can change, and you don’t want to lose the sale because you have stalled in replying.
Call me to buy or sell ... TODAY... Eric Kistner with Keller Williams 247-5510 or my cell at 366-0431
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