Margaret Rome's Blog

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Three ActiveRain Members Quoted


 
 

Lew Sichelman

In most real estate transactions, the focus is on the purchaser and whether he or she can afford to buy the property. But there is another, equally important question: Can the seller afford to sell? 

Many sellers become riveted on the gross selling price and fail to consider how much money they need to net in order to move to their next residence. That can be a serious mistake, especially if they havent built up much equity in their current homes. 

The commission they are paying the listing agent is sometimes overlooked, as is the share of their buyers closing costs theyll be expected to pay, what they owe on their current mortgage and the costs of the actual move. 

Agents Should Warn Sellers 

If the seller doesnt take those and other costs into consideration, his or her agent should, said Margaret Rome, the broker-owner at HomeRome Realty in Baltimore. Its part of the agents job. 

What the seller needs has no bearing on the price. It is the place to start the discussion, Rome wrote recently on real estate site ActiveRain. It is a must to find out [the sellers] expected dollar amount. If no one has explained the cost of selling, or they dont understand the fees, even with a full-price offer, [the seller] may not be able to afford to sell. 

Her advice to colleagues: Never price a home without knowing what is owed and what the owners need to move forward. Find out the bottom line, their in-their-pocket number. 

More than a handful of deals have fallen through because a seller didnt do the math  or an agent didnt urge them to. 

It amazes me how many sellers are surprised by all the additional costs, said Endre Barath of Berkshire Hathaway Home Services in Beverly Hills, California. 

Carol Williams of Wenatchee, Washington, once inherited a listing in which she figured out that if the owners did move forward, they would probably be left homeless. The sellers credit was in bad shape and they had hardly any equity. Fortunately, at her suggestion, they spoke with a lender and discovered the harsh reality of their situation.  

They took the home off the market and stayed put, she said.''

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  Endre Barath, Jr. Carol Williams and yours truly were all quoted in the above article.

 

 

                                                                Margaret Rome

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Comment balloon 20 commentsMargaret Rome, Baltimore Maryland • June 16 2019 10:56PM

Comments

Hello Margaret- - -congratulations to you, Carol and Endre for keeping ActiveRain at the forefront of relevant real estate information. 

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 7 months ago

Michael Jacobs It was a nice article to read after a busy Sunday. Thanks for stopping by.

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 7 months ago

Awesome. Thanks for the heads up, Margaret! 

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.) 7 months ago

Carol Williams This would be good for SCS. Congratulations to all of us!

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 7 months ago

Margaret, wow how interesting that we got quoted, even more interesting I did get pinged about this but do not see how it happened Thank you for bringing me into the conversation, Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) 7 months ago

 

marti garaughty, composer, pianist, soundscapes, abstract art

 

Posted by marti garaughty, a highly caffeinated creative type... (garaughty.com) 7 months ago

Good mornng Margaret. A treaure trove of knowledge here in the Rain! Congrats to you, Endre and Carol for inclusion in Lew's article. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) 7 months ago

 

Wayne Martin It was nice to see all of quoted in the same article.

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 7 months ago

Very cool to see the Activerainers mentioned in this article... and very good information too.

Posted by Georgie Hunter R(S) 58089, Maui Real Estate sales and lifestyle info (Hawai'i Life Real Estate Brokers) 7 months ago

No one should be amazed...everyone should be educated.

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) 7 months ago

Great information here Margaret Rome, Baltimore Maryland  it has not been the first time our members have been quoted . Congrats to all of you Great job  Endre Barath, Jr. and Carol Williams  and of course you Margaret . I am so proud of all of you . Makes my heart feel good.

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) 7 months ago

We provide a net sheet to all of our sellers. There should be "no" surprises.  Always so happy to see fellow Rainers mentioned in an article. Congrats. D 

Posted by Debb Janes EcoBroker and Bernie Stea JD, REALTORS® in Clark County, WA (ViewHomes of Clark County - Nature As Neighbors) 7 months ago

Good morning, Margaret Rome, Baltimore Maryland hard cold facts about costs to the seller.... it's an eyeopener when this topic has not been discussed....and it's the job of the listing agent to get that accomplished at the onset.... fine tune it before the seller signs the offer to purchase....

Posted by Barbara Todaro, Marketing Agent for The Todaro Team (RE/MAX Executive Realty ) 7 months ago

Barbara Todaro It is surprising how many times sellers are NOT informed about their net proceeds. This comes up when a seller has been previously listed and tells me what they will accept. I take their old listing and tell them what their bottom line would be at that list price. They had no idea! 

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 7 months ago

Good afternoon Margaret Rome, Baltimore Maryland,

How cool is this...you are right more should be discussed with sellers about the real closing costs involved in selling a home.  So many sellers  always say I need this amount to buy my next house.  Buyers do not care! Congrats to you Carol Williams and Endre Barath, Jr. for some great quotes!! Way to go!!

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.750.6899) 7 months ago

Dorie Dillard CRS GRI ABR  So true. Buyers do not need to care about what the seller needs.

 

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 7 months ago

Hi Margaret

How nice to be quoted, along with Endre Barath, Jr. and Carol Williams on such an important topic. Sellers deserve to know early on what their selling costs are, as well as what they need if buying another home. But the market value is not based on what their needs and wants are!

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) 7 months ago

Jeff Dowler, CRS Always good to see you. Just sat with a seller today and had this same discussion. Buyers don't care what you NEED!

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 7 months ago

Great quotes (all spot-on) from 3 of my absolute favorites in the Rain! Congratulations to you, Endre & Carol!

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 7 months ago

Debe Maxwell, CRS And you are one of my absolute favorites in the Rain. Time for a chat...been to long. Love to you and Ray.

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 7 months ago

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