When it comes to selling a house, there will be a point where you’ll need to prepare for a home inspection. But what is a home inspection?

What tasks need to be undertaken before the home inspector arrives? 

And what do you need to do to prepare for this?

Let’s look at some of the basics first.

HomeAdvisor says the average home inspection will cost between $280 – $401. 

The variation in cost is determined by location in the country, size of the property, and how easy it is to inspect. If your heaters and furnaces are in hard-to-reach places, you could be served a more extensive bill. 

As an FYI, home inspections are optional, but if there are any undisclosed issues, you could be liable in some states.

This means it’s in your best interest to hire a professional to inspect your home to avoid future liabilities.  

So when should you start preparing for a home inspection? 

When Does a Home Inspection Take Place?

A home inspection should occur before an appraiser arrives from a potential buyer’s financial institution. An appraiser will verify that the property’s listing price and agreed-upon offer are equal to at least market value. 

The timing around when you call in a home inspection isn’t stipulated into law, but we’d suggest doing it as soon as possible. 

Your inspector will go through your home and generate a report on what they think is required to meet an independent appraiser’s standards. 

Bear in mind that an appraiser will conduct research into the home and will be armed with a comparative market analysis (CMA) to generate their report for the bank. So they will be well informed.

The CMA will list the prices of homes that have sold in the area over the last nine months and information gathered on the surrounding properties that have sold within a three-mile radius.

This information will give them just a general idea of pricing. For the appraiser to get a better picture, they will also need to investigate: 

• The state of the home in regards to cracks, damage, and leaks 
• Size of the house and the property lot
• Quality of the landscaping
• Condition of the foundation and roofing
• Number of rooms
• Lighting and plumbing
• Number of fireplaces
• State of swimming pool or sprinkler systems
• Basement 
• And finishing details around the home. 

While this may seem like a comprehensive list of elements to investigate, your home inspector will be looking for issues buried out of sight and mind.

So, what is a home inspector’s checklist comprised of? 

What Is on a Home Inspector’s Checklist? 

When wondering, “How to prepare for a home inspection as a seller?” You need to know what elements of the home the inspector will analyze. 

These include the following:

Exterior and More

The curbside appeal of your home can increase the perceived home value by up to 11%. While this has more to do with paint and landscaping, your home inspector will look closely at every detail. Such as:

• Exterior siding 
• Roofing (includes chimney and other elements on the roof)
• Garage doors and carports
• Doors
• Drainage system
• Driveway and walkways
• Balconies, decking, porches, and railings
• Eaves and fascias
• And any crawl spaces beneath the home

And that’s just the outside. So what’s next on their checklist? 

What’s in the Basement

If your home has a basement, your inspector will be keen to take a closer look at it. In the basement, the home inspector can gauge the foundations of a building and more. But they will also be reviewing:

• Condition of the ground floor
• Windows
• Sump pump 
• Insulation
• Electrical 
• And plumbing

As this is the base of the home, the home inspector will want to ensure that everything is above board here. Issues with foundations can automatically end any ideas you have of selling your home unless you find a cash buyer.

What’s the next room on the home inspector’s checklist? 

Looking Around the Attic

After completing the groundwork, it’s time to investigate the roof and more. The attic is the first line of defense from potential leaks in the roof. Other elements a home inspector will want to view are: 

• Exhaust ducts
• Insulation and ventilation
• Soffit vents
• End Louvers
• And electrical splices (ceiling lights)

Now it’s time to investigate the rooms, starting with the heart of the home. 

What’s Cooking in the Kitchen

The kitchen is one of the rooms in a home that can turn a potential buyer into a person with an offer. The home inspector will be looking at:

• Built-in appliances
• Exhaust fans 
• Sink and faucets
• Plumbing under the sink
• Shut-off valves
• And sprayers

If you live with a smoke detector, they will test whether it works, which means one of the most straightforward tasks when preparing for a home inspection is checking its batteries. 

Next up is the bathroom. 

Taking Care of Business in the Bathroom

One of the essential rooms in the home is the bathroom. It’s where you take care of your business, after all. But what are home inspectors looking for? Well, they’re concerned with:

• Plumbing under the sink
• All wall fixtures
• Shower and tub
• Faucets
• Shower head and caulking
• Ceiling (mold build-up)
• Extraction fan
• Toilet

Now it’s time to review the other rooms of the home. 

The Other Interior Rooms 

This is a blanket term for all rooms in the home, including the living room, bedrooms, lounge, and dining room, to name just a few. 

In all these separate spaces, the home inspector will be viewing:

• Doors and windows
• Garage door operation
• Walls, floors, and ceilings
• Ductwork 
• Cupboards and countertops
• Fireplaces

While your home inspector has investigated all the plumbing and electrical systems in each room, they will review the entire system again. 

Electrical And Plumbing

Out of all the tasks the home inspector will be investigating, electrical and plumbing is one of the most important. 

If there is an issue with either of these elements, it will affect the entire home. This can be expensive. So, what are the most important plumbing areas? 

• Sewage lines and injectors
• Drains, vents, and waste systems
• Sump pumps
• Water heater
• Fixture and faucets

With electrical systems, they will be reviewing:

• Light fixtures
• Overcurrent protection devices
• Circuit interrupters
• Service cables 
• Service equipment like grounding and main disconnects

While this is an extensive list, there are bound to be others that are unique to your property. This will mean the home inspector is going to want to investigate them, too. 

Some spaces and elements aren’t a concern to home inspectors. They include:

• Rodents and pests
• Landscaping
• Low-wattage electrical systems like phone lines
• And areas that aren’t accessible

So, now that you know what they’re looking at, here’s how to prepare your house for a home inspection.

How to Prepare Your House for a Home Inspection

When welcoming a home inspector to your house, you need to ensure some essential elements have been taken care of, which include the following:

Do a Deep Clean

It’s essential that the inspector can see all the corners of your home. Dirty walls and floors can mask problems. 

Clear Away Clutter

No one is amused by having to climb over odd ends around the home. Make sure to declutter spaces. And as the realtor will want to stage your home after this, you might as well. 

Keep Furnaces and Water Heaters Obstacle Free

When clearing away clutter around the home, easy access to spaces storing furnaces and water heaters. 

The same goes for crawl spaces. As the seller, it is in your best interest that the home inspector can identify issues. 

Do Basic Landscaping

Your home inspector will want to view the guttering and exterior of your roof. This might mean doing some trimming of trees and shrubs. 

If other utility points are covered with foliage, you will want to make it easy for them to access. This leads us to the next job. 

Make Sure Utilities Are On 

You might have switched off the utilities if you are not currently living on the property. When the inspector does arrive, these need to be on to prove they are functional. 

Also, check all your safety shut-off valves and switches as this can be an easy issue to highlight when they arrive. 

Other general maintenance jobs should also be completed to help the inspector identify issues. 

And if you have a record of maintenance work being carried out, sharing this with the inspector will help immensely. 

Be Generally Decent 

Making sure problematic pets are taken for a walk and children are out of the way will always be a benefit. Also, schedule the inspection with enough time to take care of the list above. 

You will probably need to walk through the property with the inspector to point out the issues to the contractors who are resolving the problems. 

But what if this is all too much to handle? You could sell your home as-is to an iBuyer. 

Avoid Home Inspection Costs and Sell to iBuyers

When contacting iBuyer.com, you get an instant offer without having to show the home, make repairs, and there’s no need to hire home inspectors. 

So, don’t worry about learning how to prepare for a home inspection when you could just let us match you with the buyer of your dreams, us! Submit your address today and create an account to get no-obligation cash offers. 

The post How To Prepare For a Home Inspection appeared first on iBuyer Blog.

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Many people would argue that real estate isn’t that hard to learn. If you want to sell a house, there are plenty of resources online or at your local library that you can use to learn the trade. 

There is a catch, though. Learning real estate involves learning a lot of terms and definitions. Here’s an exhaustive list of phrases you’ll want to know if you intend to dabble in real estate. 

An important term you’ll want to familiarize yourself with is “seller’s market.” Seller’s market definition, in a nutshell, is when there are not many homes on the market, which drives up demand. 

Another vital aspect of real estate is trends. Real estate trends help determine if you’re in a seller’s market. If you’re unfamiliar with real estate, real estate terms, and real estate trends, read on to learn more. 

Why You Should Know Real Estate Trends

Understanding real estate is primarily a lot of research. One thing you should keep on top of is learning real estate trends and predictions before you step out onto the market. 

As mentioned earlier, the internet is your friend. You can use many sites to learn what’s popular in real estate for the year and beyond. You’re probably wondering how real estate trends affect a seller’s market. 

If you know what’s popular in real estate, you’ll see if you’re in a position to put your home on the market. Following trends will help you tailor your listing to people looking to buy. 

Current Real Estate Trend Examples

We’ll give you examples of current trends in real estate. It might interest you that there are few houses on the market now. More people are looking to buy than there are selling. So, yes, we are in a seller’s market.

By the end of 2021, the average DOM (days on market) for homes was 47 days. “Days on market” is the number of days a home stays listed on local MLS (multiple listing services).

Remember what DOM is and how it impacts selling or buying a home, because it comes back later in the article.

Another trend is that home prices keep rising. Considering the cost of everything keeps increasing, this may not surprise many readers. While prices rose quicker in 2021, they show no signs of slowing down this year.

What is a Seller’s Market? 

Understanding real estate trends is imperative if you want to take advantage of the seller’s market. But what all does a seller’s market entail? 

Earlier, the article mentioned that the seller’s market definition is when there’s low availability of homes for people to buy. The fewer houses there are for people to buy, the more demand there is for homes. 

While a seller’s market is problematic for buyers, sellers thrive in these markets. The seller is primarily in control because they have what the buyer wants – a house. 

You know you’re in a seller’s market when:

• Homes sell quickly
• Prices increase
• Sellers don’t accommodate buyer’s demands
• Fewer choices for homes
• Buyers are less likely to get discounts
• Multiple buyers make bids on the same property
• Buyers are generally unhappy

Below are two seller’s market examples. The first example happened two years ago during the beginning of the pandemic.   

Demonstrating a Seller’s Market

In March 2020, the housing market stopped like most businesses and services. When the country reopened, the housing market – like many services and companies, couldn’t keep up with consumer demand.

30-year mortgage rates were also at an all-time low during the time. People didn’t have to worry about pricey mortgages putting them off homeownership.

The lack of housing and low-interest rates created a strong seller’s market. If that example doesn’t help demonstrate a seller’s market, here’s another example.

You live in a city with 10,000 homes, and 3,500 are for sale. Many new jobs have come to your city, making it a prime location for people looking to fill job vacancies. 

People from out of town and local citizens will look to fill those homes. Locals will want new homes as first-time homeowners or are looking to upgrade from their old, smaller homes. 

But the new jobs will eventually require people from out of town. Not everyone in your city will need or want a new occupation.

The competition for houses will create a seller’s market because demand for homes increases faster than supply. Eventually, selling prices will rise due to house rarity value. 

What is a Buyer’s Market? 

The simplest way to describe a buyer’s market is the opposite of the seller’s market definition. A buyer’s market is when there’s an abundance of homes for consumers to purchase.

The more houses there are for people to buy, the less control a seller has on the market. You could opt to post a pricy listing, but buyers can always pick a less expensive house to buy. 

A buyer’s market is one where sellers have significantly less control. You can’t heavily dictate a need where consumers have more options. It’s also a good rule of thumb to remember that your home will need to stand out. 

You know you’re in a buyer’s market when: 

• Buyers control the market
• Houses take longer to sell
• Prices decrease
• Sellers accommodate buyers’ demands
• There are plenty of choices for homes
• Buyers often get discounts
• Sellers are generally unhappy

The adage “dress to impress” applies to a buyer’s market. But instead of dusting off your best clothes, you’ve got to dress your house up, so it appeals to buyers. 

Example of a Buyer’s Market

You live in a town where 50,000 homes and 8,000 are currently on sale. Your town’s most significant source of jobs has shut down, and many people are out of work. 

Many citizens want to sell their homes and move somewhere with better economic opportunities. These people put their homes on the market, and suddenly there are 12,000 homes for sale. 

There aren’t many people that want to move to your town because there aren’t many jobs. The people still there either don’t want to or can’t afford to purchase a new home right now. 

The few who can afford a home have an overwhelming advantage because there are many more houses than buyers. 

Tips to Sell in a Buyer’s Market

The first thing you should do is stage to impress the buyer. In theory, it sounds easy to stage your home, so people want to purchase it, but every small thing matters. 

Take care to remove personal effects from view—photos of your family, children’s toys, embroidered items, and electronics. Make the house feel homey but not like you live there. 

Remember to clean the house from top to bottom before people come to look. Showing your home at its best will make people more inclined to buy (or at least consider buying). 

Clean carpets, floors, countertops, and windows. Don’t forget the outside, either. Break out the power washer for the siding and driveway if needed. Apply a new coat of paint to worn doors, trim, and the mailbox. 

Keep in mind the landscaping as well. Make sure the grass and other fauna are neat and trim.

The most important thing to do is offer realistic pricing. Remember, just because you can provide exorbitant prices doesn’t mean you should. Talk to a real estate professional if you’re unsure what the best listing price is.

Why Days on Market Matters

Remember earlier we talked about days on market. DOM is the length of time a house is listed (or market time), but why does that matter? Market time helps buyers determine whether a home is worth their time. 

If you’re looking for a listing, pay close attention to the DOM to see other buyers’ reactions to the property. Homes with short DOMs can sell at or above the asking price. 

For example, we’ll say there’s a house with a DOM of 190 days. Odds are the home is overpriced or impaired in some way. The seller either misread the market or is selling “damaged goods.”

Houses with long DOMs are “stale,” which means they’ve been on the market for too long. Stale homes aren’t likely to sell unless the seller changes their approach. 

How Long DOMs Benefit You

Sellers don’t want their homes to become stale because stale homes look unappealing to buyers. If you come across a home that’s been listed for a while, you may have found a discount. 

DOM can tell you if a seller is unwilling to budge on their asking price, but it can also lead to people getting no offers.

For many sellers, a low offer is better than nothing; these people may lower their prices to move their houses off the market. One important thing to remember is that homes with high DOMs aren’t necessarily bad options. 

A home may appear a terrible choice because it’s not moving but could be beautiful in reality. That’s why it’s essential to keep an eye out for all DOMs. 

Understanding the Seller’s Market Definition

The seller’s market definition is a low supply and high demand. “What is a seller’s market?” It’s a market where the seller has primary control. The seller dictates how things go because they have what the buyer wants. 

A buyer’s market is the exact opposite. In a buyer’s market, consumers control the flow of home sales. Homes are abundant, so buyers don’t have to settle for a specific seller’s price if they don’t want.

If you’re interested in selling your home, reach out to iBuyer. We’re in the business of selling homes fast, while putting our customers first. Enter your home address and create an account to see what your home is worth. 

The post How To Know If It’s a Seller’s Market appeared first on iBuyer Blog.

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If you have just discovered that you’ve inherited a house you can’t afford, or need to address a large bill, or you just have a life-changing opportunity in a new city, you may need to sell your home – really quickly.

According to an article published on Zillow, average homes across the USA spend 25 days on the market before coming under offer. This, however, was at the housing market peak in 2020, and under offer is not sold.  

This means you’ll want to find the best listing agent to get this ball rolling as soon as possible. But what is a listing agent? 

You probably have loads of questions about finding a listing agent, like:

• What does a listing agent do? 
• What are the benefits of recruiting listing agents?
• How have they evolved in selling houses?

Let’s answer the biggest question first. 

What Is a Listing Agent?

Also known as a “seller’s agent,” a listing agent is a licensed real estate agent contracted to represent the seller.  

Because they are contracted for the seller, their role is pretty comprehensive and includes the following responsibilities: 

A Listing Agent Helps Set the Asking Price

As a professional in the real estate game, a listing agent will know the ins and outs of the realtor landscape. With this said, they will need to compile a comparative market analysis (CMA) report. 

A CMA will factor in several elements to determine the actual value of your home. According to Investopedia, the criteria included in a CMA are:

• An evaluation of the neighborhood
• Details about the property
• Comparison of similar homes being listed and adjusting the price accordingly
• Comparison of actual selling prices in the area for the past nine months

This is a pretty comprehensive report, and as a seller, you should insist on receiving one from your listing agent. 

Listing Agent Will Advise About Repairs

Your listing agent will recommend getting a complete home inspection. This will assist the agent in determining what repairs need to be completed before listing the property. 

These home inspections are usually made for safety reasons and won’t recommend additional renovations. 

When all the repair work is completed, the listing agent will need to perform their next role. 

Assisting With Staging Your Home

When staging a home for viewing, the selling agent will want to ensure that the furnishings show off the house’s features. 

According to the Real Estate Staging Association, when homes are appropriately staged, they spend 86% less time on the market. 

Also, a home properly staged for photographs and 3D tours assists the agent in marketing the property. We honestly see the many benefits of home staging.

Listing Agents Market Your Home

Marketing a home and managing communications is a full-time role that needs a special touch. 

The first step in marketing a home requires photos and an accurate write-up. Another element of selling a home is that the listing agent could have contacts in the industry who might want to purchase your home. 

Photos taken during the staging will also be used and uploaded to a multiple listing service (MLS). This is usually a service they subscribe to and which will distribute your listing far and wide. 

If this is all completed correctly, you will likely become a part of the “average offer timeline” of 25 days. By this time, your listing agent should have an offer on the table. 

Negotiate on Your Behalf

With any real estate deal, there are a million moving parts. Miss any of them, and you, as the seller, can be liable for a fine. 

You will need a professional to review the contracts and complete the walk-through of your property. Negotiating a price for your home is a highly emotional experience that can go south if not appropriately handled. 

First, the listing agent will need to determine if there are any contingencies on the sale. This will likely include an appraisal from a financial institution to determine if the asking price is fair.

The next step is searching for the title deed and checking if it is clear of liens or encumbrances. While it is unlikely that someone has filed this against your title deed without your knowledge, it’s not a guarantee. 

Although a listing agent does a lot of work, is it still worth hiring one? After all, it is common knowledge that most agents will be entitled to 2,5% – 3% commission of the total home selling price. 

For example, if your home sells for $200,000, you could owe your selling agent $15,000. 

However, your can owe your listing agent up to 6%-7%. 

Is It Worth It to Hire a Listing Agent? 

If you are planning to forgo the assistance of a listing agent, you will have to sell your home yourself or take the for sale by owner (FSBO) route. 

This will mean carrying all the jobs the agent would have handled – and more. After all, you don’t have connections in the real estate sector. Selling a home is a layered process. 

This will mean finding professionals such as photographers, professional stagers, appraisers, home inspectors, and so on, and lastly, locating an MLS. 

If this isn’t an issue and saving every cent matters, also keep in mind that FSBO sales are usually made below the rate of homes sold professionally.

The National Association of Realtors (NAR) found that, on average, FSBOs sell for 26% less than homes represented by an agent.

Taking the same example as earlier, if your home is listed on the market for $200,000, your FSBO take home will only be $156,880. That’s a loss of $55,120 and your time. 

Another issue is that only 11% of FSBO sales are successful, according to NAR.

So listing agents are very much worth it. 

What Is the Difference Between a Listing Agent and a Selling Agent?

Something you might not know is that your listing agent might need to split their commission with a selling agent, but who are they, and what is the role of a selling agent?

In a house sale, the seller is represented by a listing agent. The selling agent represents the buyer. 

A selling agent assists the buyer in locating a property. The two roles are usually performed by the same person/agency. But why the name change? It’s for legal reasons. They have different legal responsibilities.

For those now interested in selecting a listing agent, you will want to interview a few candidates. But what traits and qualities make the best selling agent for you? 

How to Select the Best Listing Agent

As you can imagine, selecting the right listing agent goes a long way to getting the right buyer for your property. Whether you need a cash buyer or are okay with a financed deal, it’s their job to find that buyer. 

So, what should you look for in a listing agent? 

Career Length

Nothing is more valuable in the real estate game than experience and connections. Agents who have been in the industry for several years have made valuable connections. 

These connections include contractors, photographers, and more. In some cases, they have a list of buyers they can call who will want to buy your home. 

We recommend someone who has been in the game for at least two to five years. 

How Many Clients Are They Working With?

You want a listing agent in demand, but one that’s too busy is going to miss opportunities. Slow responses to emails, missed calls, and texts can happen when agents are overworked.

As the real estate game is all about commissions, you will encounter agents juggling as many clients as possible. Make sure that they can manage their workload efficiently. 

What’s Their Experience Selling Homes in Your Price Range? 

It’s a question many forget to ask, but it is essential when your property is at the higher or lower end of the market. 

A listing agent who is well acquainted with the demographic you want to sell to will be able to link you with the buyer you need. 

What’s Their Knowledge of the Neighborhood?

A listing agent needs to have local knowledge. Selling a home is more than just about the structure but also the lifestyle the area will offer the new potential owner. 

Local listing agents will also be talking from experience and not reading cue cards. Buyers will appreciate the local insights, and if they do purchase the property, new owners might contact them in the future for information. 

How Many Properties Did They Sell Last Year?

As they say, the proof is in the pudding. You need to make sure that listing agent you’ve chosen can move stock. 

As the market lacks stock in many areas around the country, their closing rate should be relatively high. 

A simple Google search will reveal the average amount of homes sold in your area. Depending on the figures, you will have to decide what number of homes constitutes success to you.

Preferred Method of Communication

An agent that’s a poor communicator is a lousy realtor. Establish which method of communication works the best for them, and be aware they will have other clients. 

Again, if they are slow to respond with more than 24 hours between turnaround times, you’ll want to select a different agent. 

Another question to ask, which is related to communication, is their working hours. While we might be obsessed with the status of the sales process, they are human and have lives. 

What’s Their Strategy?

Not planning is planning to fail. Asking about their strategy for marketing your home is essential. 

While the USA is experiencing a buyer’s surge, it’s still crucial that their strategy attracts the clients you want. 

Do They Have Referrals?

Making sure that past customers are happy with the service the listing agent delivers is essential.

While we’d love to say that by asking all these questions, you’ll be guaranteed to have the perfect listing agent, the truth is, sometimes you will hire a lemon. 

So, can you end a contract with a listing agent? 

Can You End a Listing Agent’s Contract?

Generally speaking, when you sign a contract with a listing agent, you’ve agreed to work with them exclusively for at least 90 days. Depending on the terms and conditions, it’s best to wait out the entire period.

If, after that allotted time, they haven’t met your expectations, you can reach out to new listing agents to assist with your property. You can officially hire as many agents as you wish to sell your property. 

But there’s nothing worse than having to manage multiple realtors. Also, a property with numerous realtor signs on the lawn will signal to potential buyers that you are, in fact, desperate to sell. 

If you’ve been through the 90-day waiting period already and are looking for alternative methods to sell your home, why not sell it to an iBuyer service? 

What is Involved With iBuying Services?

iBuyer companies eliminate the biggest hurdle in the real estate industry – finding the right buyer. With cash on hand, almost all iBuying services are ready to take your property as is. 

That means no repairs, no marketing, and no hassle of dealing with bad listing agents. 

So what is an iBuying service? Well, we think our website says it best:

“An iBuyer is an Instant Buyer in the real estate industry who uses data-driven, online, home value assessment tools to determine what your house is worth and then makes you an instant cash offer to buy your house.”

This means an instant, fair market value valuation, supplied with a market report to ensure that all is above board and includes a cash offer. If you have any other questions, refer to our FAQ section.

Don’t Worry About Finding a Good Listing Agent

No need to struggle with finding the right listing agent for your property. With iBuyer.com, you can find qualified buyers for your home without going through the hassles of finding a good listing agent.

You just have to submit your address and create an account to find out the value what our pool of buyer would pay for your home. We’ll contact you in no time with no-obligation cash offers.

The post What Is a Listing Agent? appeared first on iBuyer Blog.

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Did you know that over 6 million homes were sold in the United States over the last year?

With Americans moving all around the country, the property market has never been more active. However, property prices have steadily been on the rise as well. This offers the perfect opportunity for wholesale in real estate. 

Wholesale real estate investments are incredibly beneficial for both the seller and property investor. For sellers, it’s a quick way to sell your home. For investors, it’s a brilliant way to flip a home for a profit. 

Interested in learning more about real estate wholesaling? You’re in the right place. Here’s everything you need to know about wholesale real estate. 

What Is Wholesale Real Estate?

In a traditional home sale, a seller will put their home on the market and wait for an offer to come in. This can take a long time depending on the property market at the time. Even though modern platforms now exist to help you sell your home, the entire process can take months and end up costing you money.

Selling your home can end up costing you money as you would have to complete cosmetic repairs before listing the property online. In addition to this, you may want to pay for professional real estate photography. This can further increase the total cost of selling your home.

Real estate wholesaling takes a completely different approach. Wholesaling in real estate is a specific business venture in which you sign a contract with a trusted wholesaler to sell your home on your behalf. This contract basically allows the external company to advertise and sell your home for you.

Part of this contract will be the agreed-upon amount that you want to get for your home. While the wholesaler does not buy the home for you or pay you that sum upfront, when the sale does go through, you are entitled to the contractual amount.

If the wholesaler manages to do some repairs, increase the property’s value, and sell the home for more than the contractual price, they get to keep the profit. This incentivizes the company to sell the property for as much as possible, maximizing their profit in the process.

How Does Wholesale in Real Estate Work?

Wholesaling is a very simple process. A wholesaler enters a contract with the seller of a property to gain permission to sell the home for them. This is similar to the relationship a real estate agent has with homeowners.

While real estate agents will charge a percentage of the sales price, wholesalers will pay you the full amount as stipulated in the initial contract. This means that there are no hidden fees or scaled incentives. The wholesaler knows that the extra margin that they manage to sell the home for is their profit. This transparency is important as it strengthens the partnership between the wholesaler and the seller of the home.

Wholesalers are experienced real estate companies that know the property market like the back of their hands. This enables them to access a larger network of prospective buyers for your home. This means that they are the ones in the best position to sell your home fast.

At the end of the day, you know what price you want for your home. By agreeing on this price with a wholesaler, you’re just taking stress and pressure off your shoulders. This effectively hands over responsibility for the home’s sale to an industry professional.

Unlike other services that require you to pay out of pocket for assistance, wholesalers will tell you that they are taking the profits. This means once the home is sold, you’ll be happy with the sales price, and they will be happy with the profit margin they were able to pull off.

How Real Estate Wholesalers Make Their Money

The first thing that wholesalers do is find a property that they think is undervalued. Once they find a property like this, they will independently evaluate the home and list all the necessary repairs that need to be done.

They will then take these repairs into account and calculate a more accurate valuation for the home. This price is important as they will then come to an agreement with the seller of the home based on this price. The agreement will give permission to the wholesaler to sell the home while also stipulating the price the seller wants to receive once the home is sold.

Wholesale real estate companies will try to get this price as low as possible so that they can extend their own personal profit margins. This is because the agreement will state anything received above the asking price listed is deemed a profit. This profit is not split or shared in any way but is held completely by the wholesaler.

Real estate wholesalers will do everything they can to boost the sales price of your home. This includes doing essential repairs on the property itself. In most cases, they will do a pre-listing inspection on the property. This inspection highlights all the issues in the home and ranks them in order of impertinence.

Real estate wholesalers are real estate professionals that understand how these little things can affect the final sales price of the home. To help boost the property value, they may opt to make these improvements themselves.

Once these repairs are done, they will go all out to find a buyer for your home. This includes paying for professional real estate photography for your home. This will then be used to publish marketing materials about your home.

How Long Do Negotiations Take?

After a buyer is located, they will negotiate with them to get the best possible sales price for the home. This process may take longer if you were doing it individually but is much quicker with professionals that have experience in negotiation.

Negotiations can vary from property to property but are generally quite quick. At the end of this process, a final sales price is confirmed for the property. This will enable the sale to go through at the negotiated price.

Real estate wholesalers make their money by trying to get the final sales price higher than the contracted amount that they agree on with the client. The difference is their profit margin, so they are incentivized to sell the home for the highest possible price.

Real Estate Wholesaler vs Real Estate Agent

As mentioned above, real estate agents offer a similar service but differ in a few crucial ways. Real estate agents and real estate wholesalers both help you sell your home. However, they operate in very different ways.

Real estate agents help you sell your home rather than sell it for you. This means that they will help find buyers and even showcase your home for you. While this is a major help, wholesalers do much more for sellers. Wholesalers do repairs, stage homes, host an open house, and even market your home for you.

Wholesalers are far more invested in your home’s sales price as their entire profit margin relies on them selling your home for the highest possible price. Real estate agents are generally paid according to a fixed percentage of the sales price.

While many may think this is fair, it also means that they are not incentivized to get you the price you want for your home. Regardless of what price your home sells for, they get their fixed percentage. This is why wholesalers may be a better option for you.

At the beginning of the process, wholesalers come to an agreed-upon price for your home. They are then incentivized to sell your home for more than what you want so that they can benefit from receiving a profit. If they can’t sell your home for more than the price you want for it, they won’t make any money from the sale. Either way, you’re more likely to get the money you want for your home from a wholesaler.

Who Should Consider Wholesale Real Estate?

Wholesale real estate is perfect for people who want to sell their homes but don’t have the time to do it themselves. Since wholesalers do most of the heavy lifting for you, it’s a much simpler option for individuals or families that don’t have time to spend on finding a buyer.

This is also perfect for individuals that want to sell their home as is. If there are things in your home that you know you have to fix before selling, handing the sale over to a wholesaler may be the best option. This is because the wholesaler will take everything into account and still try to get your target price for you. 

Benefits of Wholesale Real Estate

As mentioned throughout this article, there are tons of benefits to partnering with a real estate wholesaler. These benefits apply to both homeowners wanting to sell and property investors that wish to flip homes for a profit. Here’s a quick guide to the benefits of wholesale in real estate.

For Homeowners

Homeowners can benefit from partnering with a property wholesaler. Here are a few of the most noteworthy benefits.Have Professionals Value Your Home

Valuating your home can be a stressful and expensive process. By working with a real estate wholesaler, the entire process is much more streamlined. They will value your home for you and factor in the repairs that need to be done as well. This gives you an accurate view of what your property is worth.Get Professional Marketing

Property wholesalers often come with the tools they need to sell your home fast. This includes professional photography to help market your home all over the internet. These companies flex their network to help sell your home in a fraction of the time. 

For Property Investors

If you’re looking to flip homes, consider becoming a real estate wholesaler. This is a low-risk way to flip homes for a profit. Here are a few benefits of entering the real estate industry.Simple To Learn

While you may think wholesaling real estate is difficult to learn, it’s actually very simple. The entire business model is simple, allowing you to master it in no time. This makes it the perfect way to enter the real estate industry as a beginner.No Credit Required

If you wanted to flip a property traditionally, you would have to buy it first. This often requires you to have access to credit facilities. By signing a wholesale agreement, you can repair the home and sell it without having to purchase it. This also helps reduce the risk of the overall investment as you’re just selling the home on behalf of the owner.

How To Wholesale Real Estate

Thinking of entering the wholesale real estate market? Here’s a quick guide on how the entire process works.

Step 1: Find a Property with a Motivated Seller

Step 2: Determine the Value of the Property

Step 3: Sign a Contract with the Seller

Step 4: Locate an Interested Buyer

Step 5: Negotiate for the Best Rate

Thinking of Selling Your Home?

If you’re thinking of selling your home, there are benefits to signing a contract with a wholesaler. While it may not be very common, wholesale in real estate is a win-win situation for everyone involved. As a seller, you’ll have experienced real estate professionals handling your home’s sale for you. This can save you time and money, keeping you focused on your move.

At iBuyer, we have years of experience in the property market. This enables us to buy and sell homes in the blink of an eye. Want to learn more? Submit your address and create an account to get multiple cash offers on your home.

The post What Is Wholesale in Real Estate? appeared first on iBuyer Blog.

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After the last few years of rampant house sales, the American real estate market is cooling to the extent that 25% of home sellers cut their asking prices this year.

That makes things a little more difficult for keen sellers who want a fast sale but also need to profit from the deal. Now, pricing your home right is more important than ever.

Selling a home is an emotional decision, and it’s easy to allow sentiment to cloud your objectivity when pricing your home. 

House comps can help you get the balance right. Keep reading to discover more about this pricing factor and how to find ”comps for my house.”

What Are House Comps?

House comps, also known as ‘closed comparable sales’, refer to completed home sales for homes with similar characteristics. 

Real estate agents, appraisers, attorneys, lenders, and estate planners all use home comps to determine home values.

Home values are primarily affected by individual market conditions, and these prices can vary widely depending on demand in the area around the location of the home. 

Active sales aren’t a good reflection of current market values, as owners can list their houses for any price they like, but they won’t necessarily achieve a sale any time soon.

Likewise, reviewing historic home sales isn’t much use in a rapidly fluctuating market. So, it’s best to restrict your search to the last three months. 

Although this method isn’t foolproof, due to the number of variables that can impact home sales, it’s a good starting point for pricing your house or setting up a budget for buying your next home.  

In this way, home comps help you get a fair price, whether you’re buying or selling.

Where to Find ”Comps for My House’ 

Unlike most things today, you can’t find a quick online solution when looking for “comps in my area.” Working with house comparables takes a lot of research. 

Here’s where to start your investigations:

View Home Comps on a Real Estate Website

Real estate listing websites like Zillow, Trulia, and Redfin, take information from the MLS to assist home buyers in their search. They also have data regarding past home sales.

The best websites let you filter this information to match your home closely. Use the following steps to find houses that compare to yours:

1. Search for homes in your neighborhood
2. Adjust the filter to include only sold homes
3. Select a time frame within three to six months
4. Specify more details that match your home

Most of these top websites will have very similar search functionality. Plus, if you know of a home like yours that’s sold recently, you can type in the address to discover its sale price.

You can also search for more homes nearby to compare prices.  

Use Online Valuation Tools to Find Home Value

Free online valuation tools use information gathered by experienced real estate agents to compile valuation reports for homes anywhere in the country.

They’re easy to use and will provide you with a good starting point for determining fair market value. Many of these tools use data from the MLS to calculate valuations.

Some of the best websites for online valuation tools include:

• HomeLight
• Ownerly
• Redfin
• Trulia.
• Zillow

While they’re no substitute for a professional appraisal, they’ll give you a good idea of what you can expect to get for your home. 

Working With a Real Estate Agent

Local real estate agents are your first port of call for expert property advice in your area. They can provide boundless advice on how to best price your property, compile a cost comparison report for you, or refer you to a reputable, licensed appraiser.

Only licensed real estate agents have unfettered access to the MLS, where they can find up-to-the-minute information on homes for sale in your neighborhood. In this way, they can tell you at the outset whether your expected price is realistic or not. 

A good realtor is aware of which neighborhoods are gaining popularity. They can also advise you on whether to sell now or hold out for the rush. 

Investigate Public Property Records

Your county’s public property records are accessible to everyone, and you might find much useful information contained in these documents.

These records only display the last recorded sales price, which can sometimes date back too far for your needs, especially if you live in an area with sparse real estate transactions. 

You can search these records online for free in most states and only pay if you require printed copies.

It’s easy to find them by visiting your city or county website and searching for property records. You can also visit your county deeds office to search through the archives.

These websites commonly have information about individual properties’ taxes and the last price they sold for. 

Request a Comparative Market Analysis

A real estate agent may provide a free comparative market analysis to help you navigate the home comps process. They do these reports in the hopes of attracting more sellers.

These reports usually include a comparison between three to five properties in your area and may list:

• The property addresses
• Detailed property descriptions
• Square footage of each property
• The sales price for each one
• Adjustments for any differences
• An adjusted sold price per square foot

Although a CMA isn’t comparable to a professional home valuation, it provides a reasonably accurate reflection of your home’s current value. It has several important uses, depending on your circumstances. 

Home buyers can use a CMA to submit a more competitive offer on a sought-after property. It’s also a useful tool for setting up a home-buying budget according to their wish lists.

Most homebuyers compare prices as a matter of course while shopping for a home, so it’s worth making the extra effort involved in comparing the finer details. This prevents buyers from looking at homes worth more than they can afford, or from over-paying for a property.

With house-flipping profits at their lowest ebb in a decade, a CMA is invaluable for fix-and-flippers juggling the costs involved in buying and refurbishing a home vs. the expected sale price. 

CMAs help homeowners calculate if they have the required 25% equity to refinance their homes.

Real estate agents look at specific aspects when they compile a comparative market analysis. You can use the same real estate comparables to craft a DIY CMA for your home using a reliable real estate website:Location

Real estate value can vary widely in different locations, so start looking for houses sold within a mile from your home. If you don’t have any success, you can expand your search to a maximum five-mile radius.Neighborhood

Neighborhood features and amenities have a significant impact on home prices. Conveniences like schools, stores, public transportation, and hospitals drive prices up, along with variables like proximity to lakes, rivers, oceans, and parks.

A study by the University of Florida indicates buyers will pay as much as 46.2% more for waterfront properties.

Comparing a home with others in the same neighborhood helps you identify unique selling points that can add to its value.The Age of the Home

Buyers assume that older homes will need more work. That means a more recently built home will always have a higher price initially. 

Homes in disrepair are cheaper, as the buyer must spend money on improvements before they can move in. Likewise, homes with an awkward layout and small rooms will fetch lower prices. 

Age aside, a well-maintained older home stands its ground among more recently built properties. If you’ve inherited a home, and have little knowledge about its maintenance history, a house comp can help you value it more accurately. 

Keep these things in mind when comparing prices in your area. Look deeper into homes with unusually low prices to see if they share similarities with your house. Square Footage

The size of a home plays a major role in its market value. It only makes sense to pay more for a larger home.

Always compare homes with square footage that nearly matches that of your home. You can calculate the price per square foot by dividing the sale price by square footage.

This figure helps you determine an approximate value for your home when comparing it to larger or smaller properties.  Bedrooms and Bathrooms

Usually, the more bedrooms and bathrooms the house has, the higher the price. Remember, a home with small square footage and more rooms isn’t an attractive option and should have a lower value.  Upgrades and Improvements

Upgrading a kitchen or bathroom usually increases the value of a home. If your home has outdated bathrooms or an ugly kitchen, it will affect its value negatively. 

Look closely at the photos of your selected properties. Do they feature high-interior finishes or superior appliances?

These aspects can add to the home’s value. Unless you’ve furnished and equipped your home in a similar or better style, the other one is worth slightly more.Timeframe

Pay attention to homes sold within the last six months or less. Last year, houses sold at all-time-high prices, representing unrealistic market values. 

The Drawbacks of House Comparables

While there’s no denying that house comps offer many benefits for pricing your home, you should guard against information you receive online. 

Some of the things that can go wrong on this platform include:

Inaccurate Sale Prices

Real estate agents use ‘for sale’ listings as marketing tools to attract buyers and sellers. So, they’re very dedicated to uploading prices, targeting their listings, and updating the prices.

Once a home sells, they’re not as quick to make the relevant changes to the selling price. It’s easier to update the home’s status to ‘sold’ than adjust the price manually.  

Sold prices don’t usually take seller concessions into account either, so they aren’t an accurate reflection of how much the seller received for their home. 

Incorrect Listing Information

The data represented online comes from the MLS. While the MLS always has the most up-to-date information on available properties, real estate websites only update this information occasionally. 

Depending on the website, this may occur weekly, daily, or hourly.

Some listings, known as pocket listings, aren’t featured on the MLS. These are private sales that agents sell to a private network of buyers.

Although you won’t find prices for these homes published anywhere, they can affect your home’s current market value. 

Outdated Information

It’s common practice for sellers to complete remodeling projects or upgrades to attract more interest from buyers. They don’t often update these details on their original listing.

That means you might end up comparing your home with one that now has additional features not mentioned in the original listing. 

Avoiding the Pitfalls of Online Comps

The above factors don’t mean you should avoid using online sites for house comps. Here are a few things you can take note of to help ensure you’re comparing apples to apples:

• View only sold homes
• Pay attention to listing descriptions
• Study the photos closely
• If possible, visit the properties you’re comparing
• Take different home styles into account
• Adjust your price according to seasonality

Asking a local real estate agent for help when comparing prices can keep you on the right track when working with real estate comps. 

Get a Reliable Offer Online

House comps are an excellent tool for determining home values, but the right price is no guarantee of a fast sale. You also can’t account for the inevitable haggling that occurs once you attract interest from a buyer.

iBuyer.com connects you with qualified, serious cash investors and helps you avoid the drawn-out negotiating process. With us, you’ll save on most of the costs associated with conventional home sales. 

Enter your home address on our website to receive a reasonable, firm cash offer and enjoy a fast, hassle-free home sale.

The post Comps For My House: How To Find Comparables appeared first on iBuyer Blog.

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