Posted by Daniel Beer on Wednesday, March 31, 2021 at 2:11 PMBy Daniel Beer / March 31, 2021Comment
So what do you look for when you're getting ready to sell a home? Sometimes there's so much to do and it's such a big deal selling your home, so a lot of people are going to ask us, "What do we do to sell it? Where do we need to focus our attention specifically so that we get the biggest return for the dollar?"
In my mind, the place you always start is with any kind of deferred maintenance. You have to understand that any home improvements that you make to the home are really to give the strongest and best opportunity to the property to have the least amount of objections and the best showing experience for the visitors that are going to come and view your property.
You want to start with anything that could appear to be out of order or out of function, broken, ripped, or anything like that. You could have a home that's in awesome shape, but if, for example, your door knob is completely worn out and it's just corroded, and that's the one problem area, think about psychologically what's happening. Your buyer is literally making physical contact with that door knob, and immediately has an idea that you know what, if this is not in great shape there must be something else in the property and there very well could not be.
So anything like that, any kind of ripped window screen or any kind of light fixture that's off center or just not hanging on its axis correctly and especially soiled carpet. With soiled carpet, the good news is you can most often get it cleaned through a professional cleaner, and we can give you great recommendations for that. It comes out looking awesome. But sometimes it does need to be changed. One of the biggest mistakes that we see sellers make is saying to themselves,...
Posted by Daniel Beer on Tuesday, March 9, 2021 at 3:47 PMBy Daniel Beer / March 9, 2021Comment
How does a smart seller handle multiple offers on their property? How do you deal with them and how do you secure the best possible price while not scaring away your best buyers? There's a lot that goes into it. I think most people just focus their energy on “how do I get the number to the highest number I can possibly get?” Forgetting that it has to be “how do I get the number to the highest it can go with the buyer who will actually close and perform?”
There's a lot that goes into it, but here's step number one. Recently we've had a number of homes where we have upwards of 8 to 15 offers on multiple different properties. The way you handle it at first is going to determine the success. Most people's instinct is to just start shooting off big numbers and rejecting the smaller ones. That is not the right strategy. That first step, strategically thinking isn't that you're going to figure out the sales price. The first step in responding to the offers is simply to keep everybody engaged and to allow that floor to float up because what you want to know is what is your downside.
If you lose this offer, what's the offer then going to be? You want to understand what cards you're playing with so that you also understand what kind of aggressiveness you have in your control. So the first step is really just to encourage all offers and when someone calls and they say, "Hey, here's where my buyer's going to come in” and it's not quite the asking price, some people will say to them, "Oh no. If you don't come in at that price, forget it. We're not selling to you." Our response is different. It's just, hey, write the best you can, send it over, and let us do our work. Let's see what we can do.
Posted by Daniel Beer on Thursday, February 25, 2021 at 1:41 PMBy Daniel Beer / February 25, 2021Comment
Why is it that real estate agents will list your home, even when they know it's overpriced and will not sell? Here's the truth about how our industry operates. We are taught to take the listing no matter what, even if the agent believes that it is overpriced and will not sell, because we're told to do two things. One, is to build a relationship with you over time and slowly get that price down until it finally sells. Two, is we're taught that we can use your property as a place to play so we can put that billboard in your yard, the for sale sign to generate leads from other buyers, the open houses, so that all the people that end up coming to your property will see it. Even if they don't buy your home, we can still use it to find leads that will buy other properties. We literally are told you could do two or three sales just from having a listing.
If you're ever wondering why would a business person take a listing? And if they don't believe in the price, why will they still accept it? And why do agents do this? That's why. I'm sharing this with you because not everybody operates that way, but you do have to understand who you're doing business with. You have to ask the right questions and we have to take a look at the data. If there's absolutely no support for what's being proposed to be done, then at least raise an eyebrow and make sure that person has the track record. I want a more transparent industry. I want to expose the truth.
Letting the public know what's really going on and how real estate operates and what agents are taught is a really good way for you as a seller and consumer to make decisions around how you're going to do business and who you're going to do it with.
Posted by Daniel Beer on Wednesday, February 24, 2021 at 4:12 PMBy Daniel Beer / February 24, 2021Comment
There are a lot of factors in what determines your home value, but there are only three things that really make the most impact on the value of your home and how much equity you're going to be taking out of it.
There's always competition for property, but typically the competition is between buyer and seller; the two of them fighting it out amongst each other. The buyer is focused on what the seller wants, what's the best price I could get, what offers should I make to get the best value?
Well, the number one factor here is you have to take the attention of the buyer, away from you as a seller, and instead pin buyer versus buyer. Creating a buyer versus buyer environment where you take control of the sale and have them fight it out amongst each other is the number one thing.
#2: Eliminate Deferred Maintenance
These are things that are broken, torn, and obvious. Don't think about things like the oven, for example. The oven may not function, but you don't have to place that much focus or attention on it in terms of preparing for the sale because nobody's coming to your house and baking cookies during the showings. Of course, you'll want to disclose this and it will have to get addressed, but it's not going to impact what buyers will offer. However, when there's something that's just clearly out of place and distracting people's visual experience, it gets them into a place where they're thinking to themselves, “how much will it cost to fix this?” Plus, it starts to get worse from there because of course, they start to wonder what else in the house doesn't work. What else hasn't been taken care of. Ultimately ends up costing you a lot more, than had...
Posted by Daniel Beer on Wednesday, February 24, 2021 at 4:04 PMBy Daniel Beer / February 24, 2021Comment
A lot of homeowners are facing that decision, "Do I hang onto my current property, and turn it into an investment while buying my next home?"
Here's what you need to think about when you're making that decision. You have a home that has appreciated and you are purchasing a new home. You might be in a position where you can purchase without having to sell. That’s an awesome spot to be in, but is it the right thing? A lot of people will tend to want to do that because if they do that, they feel like, "Hey, I'm building a real estate portfolio."
The thing is, you also have to think about how long you're going to be committed to that home that you're holding onto, because you currently have a tax-free gain (or at least the first $500,000 if you're married, $250,000 if you're single) of appreciated value that is tax-free. If you were to move it from your current property that you've lived in for at least two out of the last five years to the new home that you're now purchasing, you now have this tax-free gain you can move over.
That down payment that has already been taxed, that you would have been purchasing the new home with had you held onto this one, well, those are dollars that have already been taxed. You can go ahead and purchase an investment property with those dollars instead. Again, think about if you're going to purchase a home and you own a home now, that's your primary residence, you're moving up to a different property and are you going to hold onto your current property as an investment?
What you're doing is effectively turning this tax-free gain into a taxable event in the future versus moving that tax-free money...
Posted by Daniel Beer on Wednesday, February 24, 2021 at 2:35 PMBy Daniel Beer / February 24, 2021Comment
Everybody knows that inventory right now is extremely low, but nobody is answering the question “why?”
I think it's extremely important that we take the time to answer why inventory is low, not just tell people that it is. The reason for that is that by understanding the workings behind it and what's driving it also helps us understand when things might change and what might be coming down the road so that we can look for those changes. First of all, there are thousands of homeowners that are really unmotivated to sell their property because they don't have to pay their mortgage. Remember that the forbearance programs are still in place.
Also, it looks like more stimulus is actually coming down the pike here so it's hard to say exactly when that's going to change, but make no mistake about it… when we finally see those mortgages come due and people have to step up and pay, motivation will naturally change. Until then we could expect to see suppressed inventory. Secondly, the home is now so much more than a home. We are all experiencing this, whether the home is now also the office or whether it's also now a school or it's entertainment, the home is doing so much more for us. Because of that, two things happen. One, is demand is driven way up so everything that does come to market tends to get absorbed. This also makes it harder to show your property.
There's people that don't want to necessarily get their home on the market, except for, it's hard to do. So if it's also literally where your children are studying and you know, doing their schoolwork and if it's also your gym and if it's also your, your only refuge then it makes it hard to have the public come in and take a look at your property. Now, of course,...
Posted by Daniel Beer on Tuesday, August 4, 2020 at 11:33 AMBy Daniel Beer / August 4, 2020Comment
I am amazed still at how much we see people leasing solar.
If you have a solar lease right now, don't worry because you are not alone. We come across homeowners that choose this option all of the time because they just didn't know...
Here's why I encourage you to purchase solar instead of leasing it whenever possible:
The payment on a lease is typically the same as financing the purchase payment. I understand that not everybody can purchase the solar upfront with cash, but the financing on solar versus a lease payment can pretty much be the exact same thing.
You receive tax credits when you purchase.
It makes it easier to sell the home. When you go to sell the home, you’re not asking your buyer to qualify for the mortgage payment AND a separate lease payment.
Reputable solar companies offer excellent warranty programs. One of the main reasons people opt for leasing, is because the solar leasing agent convinced them it was way more convenient not to own it because then they are responsible for the maintenance and blah blah... DO NOT GO THERE. Purchase solar from a reputable company with a warranty program.
So when you’re faced with the option of purchasing versus leasing solar, make sure you buy.
I’m Dan Beer with the Beer Home Team at eXp Realty and these are the kinds of things that we'd like to expose to homeowners. We'd like to expose the truth…
In fact, that's why I wrote the book, Real Estate Exposed, which was reviewed by New York Times bestselling author, Harv Eker. If you'd like a copy of the book, just go to www.REExposedBook.com and reserve your free copy.
So, picture this: You’re getting ready to sell your home and you’ve got this incredible chandelier in your dining room that you want to use to wow your buyers. The catch is that you aren’t leaving it behind. This is a common problem faced by today’s sellers and, in truth, you really shouldn’t show off any fixtures you don’t intend to include with the home. Doing so could make buyers feel misled and cause tension during negotiations. A buyer would never otherwise ask for such a fixture, so don’t cause undue stress and ill will by giving them the idea in that it could be theirs, to begin with.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
Contingent offers have been popping up a lot in our market, so I want to clear up a few myths and misconceptions you shouldn’t believe about this type of offer if you’re a seller and you receive one.
First of all, they’re not always bad. Sometimes, they can even work to your advantage, although each situation is different.
Obviously, a contingent offer that’s dependent on the sale of another home can be a disadvantage because it involves something that’s out of your control. That offer, for example, could depend on a home that’s not even on the market yet, or one that’s located in a neighborhood that doesn’t support its price point.
When you get an offer on your home, how can you make sure the buyer is qualified to close on it?
It’s important to check their finances and make sure they’re pre-approved, but you also need to understand who that buyer is. Where do they live? What do they do for a living? What kind of person are they? Are they easygoing or will they be really nitpicky when it’s time to do the inspections?
When we look at deals that fall out of escrow, it’s usually because of some kind of discrepancy involved—especially in a competitive environment. When inventory is low, buyers are more apt to squeeze themselves into a home that doesn’t really fit them. In this case, there’s a much greater probability of them eventually realizing that they’re not buying the right house and canceling escrow.
We’d only have to worry about a buyer’s finances if that was the...
After selling over 1,000 homes, I want to share some of my thoughts and experience regarding how we think about a home inspection when representing sellers and what to expect throughout the process. This will ensure that you aren’t disappointed, you don’t let value erode, and you don’t make a short-sided decision at the expense of long-term value.
When a buyer is doing their inspection, we don’t want to allow them to negotiate what was already visible to them when they first came to the property. In other words, your agent needs to protect you from the other party trying to negotiate extra money to paint the home or change the carpet after the inspection. If the carpet was damaged in an area that wasn't visible during the showing or the paint was, that’s a different situation. ...
Our big movie night is just around the corner. We’re giving you two free tickets to one of the biggest films of the year, Rocket Man, on its opening Saturday night, June 1, at 7:00 p.m. This movie, starring Taron Egerton, is based on the story of Elton John, and it’s going to be one of the best films of the year.
If you want two free tickets, popcorn, soda, giveaways, and more, all you have to do is register here.
Right now, the real estate landscape is ideal for those looking to downsize. Meanwhile, the market we expect to see in the near future will be great for upsizing.
Depending on your goals, timing your move to correlate with current conditions may allow you to leverage our market to your advantage. Allow me to explain:
Leading experts believe there will be a 6% to 8% correction each year for the next three years, meaning the total correction at the end of that period will likely be between 18% and 24%. If you’re in a $1.2 million home, a market correction of even just 10% over three years would equate to a $120,000 equity loss over that time. In other words, downsizing soon is something you may want to consider.
"Timing your move to correlate with current conditions may allow you to leverage our market to your advantage."
We know that the majority of home sellers out there are looking to go through the traditional selling process in order to maximize their sale.
What about those who need a quick, convenient, all-cash sale, though? The majority of people in this situation aren’t under any kind of financial hardship. Rather, they oftentimes have an opportunity they need to take advantage of that requires them to bypass the traditional home selling model.
That quick cash, of course, comes at a bit of a market discount. But if you’re wondering why someone would accept this market discount, the truth is, you’ve probably done the same thing yourself—just not with a home.
For example, think about anyone who’s ever sold their car to Carmax instead of, say, listing it on Kelly Blue Book. Even though they probably would’ve gotten more money by selling it the traditional way, they opted for a quick, easy transaction. I’ve even done this myself.
In truth, there are so many moving parts that go into taking a real estate transaction from start to finish that having an entire team of professionals working on your behalf is essential.
We at the Beer Home Team are always hard at work helping buyers and sellers like you reach their goals, and today we wanted to give you a behind-the-scenes look at our office life to show you where the magic happens. You can follow along in the video above to see for yourself.
Teamwork is everywhere you look in today’s world. Whether it’s at the dentist’s office or on the golf course, teams of people working together are proven to be more effective than individuals working on their own. Even solo activities will often require support. Professional golfers may play alone, for example, but they have coaches, caddies, and many other people on their side at every step of the way.
So many home sellers are conditioned to think that VA buyers are somehow inferior because they’re buying with 0% down, but you shouldn’t adopt this same attitude. While other home sellers continue to ignore these buyers, you can sell quickly and with minimal hassle by dealing with them.
There are three reasons, in particular, you should consider doing business with a VA buyer.
First, they are very real and very motivated. A VA buyer moving to San Diego because they’ve been stationed here is moving here and moving now. They’re literally ordered to live here, so they’re not messing around about buying a home.
Second, their pre-approval is rock solid. Their job isn’t disappearing and their income isn’t changing, so you don’t have to worry about either of these pitfalls potentially putting the transaction in jeopardy once you’re in escrow. A VA loan that gets pre-approved is genuinely pre-approved and ready to go.
Now that we’re at the top of our real estate cycle, you may want to unlock the equity in your real estate investments.
We’ve recently learned about using a deferred sales trust in order to sell your property, unlock your equity, and even create a cash flow, all without having to reinvest in another asset (unlike what is required with a 1031).
"We’ve decided to host an upcoming workshop to delve deeper into using a deferred sales trust."
After hearing about this fantastic option for investors, we’ve decided to host an upcoming workshop to delve deeper into using a deferred sales trust. We’ll be at UTC, Seasons 52 to learn more from the experts in the business. Space is limited, so RSVP as soon as you can by clicking this link.
If you have any questions or need more information,...
Recently, I had a very eye-opening conversation with a local lender regarding the changes going on in our market right now. So as we enter this new market cycle, I thought now would be the perfect time to share some of what I learned from that conversation.
This update will be particularly useful for first-time homebuyers, because recent rate changes could very well disqualify them from being able to secure a home. Why? First-time homebuyers often need to stretch their borrowing potential to its maximum limit. When interest rates rise, as they recently have, their ability to afford a property can easily be nullified.
Thankfully, the market has responded to this. Many starter homes have been discounted by 6% to 9% to compensate for this rate change—making it possible for first-time homebuyers to re-qualify. However, this trend alone isn’t enough.
When it comes down to it, who should you trust to guide you through your real estate goals: an individual agent or a team? This has been a hotly disputed issue for some time now, which is why I’d like to offer some insight into it today.
For as long as residential real estate, as we know it, has existed, there have been individual agents. But now, real estate teams have become increasingly common in our modern market. This is putting tremendous pressure on the individual agents out there—especially those who have clung to traditional models and avoided innovation
In an attempt to retain relevance in the market, individual agents will try to scare you into thinking that big teams aren’t as personable. They claim that with so many people working for a single client, buyers and sellers will lose out on having an individualized experience. This isn’t actually the case.