Margaret Rome's Blog

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Make sure the seller can afford to sell.

 

When it comes to pricing a house we need to look at comps.  How many are on the market, how many are under contract and how many have sold in the last 6 months.  

That's in the ideal world where there is a lot of activity.

When it comes to listing a home and determining the right listing price...there are few more things that come into play.

What is the reason for the move?

Are they right sizing? 

When do they want to settle?

Are they financially able to afford their home?

How much do they need for the next move?

Never price a home without knowing what is owed and what owners "need" to move forward. Find out the bottom line... in their pocket number.

Can they afford to sell and move on?

Some cannot.

Whether you are the first, second or third agent, it is a must to find out their expected dollar amount. If no one has explained the cost of selling or they don't understand the fees,  even with a  full price offer, they may not be able to afford to sell.

What the seller needs, has no bearing on the price.

It is a place to start the discussion. 

Make sure the seller can afford to sell.

 

Margaret Rome

 

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Broker-Owner HomeRome Realty 

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Author of Real Estate the Rome Way

mrome@HomeRome.com

410.530.2400

 

 
Comment balloon 22 commentsMargaret Rome, Baltimore Maryland • March 17 2019 03:15PM

Comments

Margaret- excellent advice!  I can remember many many years ago when a friend was thinking of selling his first home. He had no clue about the other expenses he would incur when he sold. 

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) about 1 month ago

That's good advice, Margaret.  There have been cycles when little equity has created a challenge to seller's being able to sell without short-sale status, etc.

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) about 1 month ago

Good morning Margaret. Always did a net sheet based on the listing price and then explained a range based on the sales price to list price ratio for the area. Some could not afford to make the move! Excellent advice. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) about 1 month ago

Great advice, Margaret. We had so many issues when the market went sideways with homes being sold and sellers being short, that the State of NC included the requirement for mortgage(s) information in our listing contract. That helps start the conversation as to what the seller will net.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage ) about 1 month ago

"What the seller needs has no bearing on the price". No truer words can be spoken and so many think it does. 

I once inherited a listing and when I interviewed the sellers I discovered if they did sell, they would probably be left homeless.  Their credit was horrible and they had hardly any equity in the home.  I don't think they would have even been able to rent a place.  They talked to a lender, at my urging, and discovered I was right.  They took the home off the market and stayed put. 

Posted by Carol Williams, Retired Agent / Broker / Property Manager (Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals.) about 1 month ago

Carol Williams. I respect what you did. I will never ever use my licence "un-house" anybody. Some agents will think nothing of doing that in the name of a commission. What goes around comes around.

Posted by Willliam Ramdass 29 days ago

Carol Williams That's exactly what I was talking about. They can't afford to sell and did not even realize it.  Their needs are no bearing on the price!

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 28 days ago

That's the first thing I learned when I first got in real estate.  One of the potential sellers that I met with discovered they would need to bring in about $10,000 to sell their home.  They had too many children and not enough bedrooms.

Posted by Susan McCall, Independent Listing and Buyer Agent, Bringing buyers and sellers together! (Compass Realty Solutions) 26 days ago

Susan McCall, Listing and Buyer Agent Great thing to learn early in your career. 

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 26 days ago

This is interesting - I don't think I've seen anyone address this issue before.

Posted by Marte Cliff, Your real estate writer (Marte Cliff Copywriting) 26 days ago

Marte Cliff Spoke to an agent some time ago who told me she never asked for the seller's bottom line. She would always try to get the most she could. SCARY..huh!

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 26 days ago

Margaret, it amazes me how many buyers and sellers are surprised of all the additional cost... in my market I give them a ballpark figure and tell them if they would like we could do a Net sheet before we  do anything and they are so grateful for it, Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) 26 days ago

In this better economy, it's easy to lose sight of what's owed on a home when listing and selling.  Smart advice, as always!

Posted by Jan Green, HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN (Value Added Service, 602-620-2699) 25 days ago

Endre Barath, Jr. How could you NOT give the bottom line when listing a property.

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 25 days ago

Thanks Jan Green Seeing a big listing price on your home is far from what goes into your pocket.

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 25 days ago

Margaret I see so many who do not and they price it so ambitiously, just to get the listing, keep in mind the sellers all want top dollar.... I just explained it to  a foreign national seller what the Fed & State will withhold... it was the 'profit' they had in mind....Endre

p.s: no listing:)

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) 25 days ago

Same here Endre Barath, Jr. We have to explain that to someone who has their home in another state. Six months and one day get them 'out of state residency' for Maryland tax. Until they are ready to sell. Then they have to pay Maryland out of state tax.

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 25 days ago

Hi Margaret

This is such wise advice, for agents to think carefully  about early on for potential clients, but in particular for sellers, too. I have had a couple of homeowners who were interested in selling but it was clear that while they could sell they did not have resources to move on to something else. The right decision was made to not sell.

 

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) 24 days ago

Jeff Dowler, CRS There are times, as you mentioned, that  homeowners can not afford to move forward. We need to find this BEFORE they go on the market.

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 24 days ago

Great read right here. I learned this lesson the hard way many years ago.

Posted by Robert Hicks (United Country River City Realty) 24 days ago

Very interesting topic and comments, yet, something that all agents should know and illustrate when consulting with their clients, shouldn't they? 

Posted by Kimo Jarrett, Pro Lifestyle Solutions (WikiWiki Realty) 24 days ago

This part of the conversation can be difficult. The annoying phrase I often hear is "I have to get X amount out of this house"  Sometimes it is a realistic number, sometimes to achieve it, a lot of work must be done to the house to get it market ready.

Posted by Mary Hutchison, SRES, ABR, Experienced Agent in Kansas City Metro area (Better Homes and Gardens Real Estate-Kansas City Homes) 24 days ago

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