Buyers / Sellers Tool Kit

Listed below are useful tools that may  be helpful in the purchase or sale of your home.  We encourage you to contact Moore Properties for additional information or answers to any questions that you may have.  We are here to help. 

Buyers

Why Choose a Realtor?

The purchase of a home is the largest investment most Americans will ever make in their lifetime. Today however, disclosure laws, environmental regulations, and a proliferation of financing options also make it the most complex investment most people will ever negotiate. A local Realtor will be the most familiar with the housing market and best prepared to answer your questions in a most detailed way.

Soon, you will discover that Rhode Island has enacted some strict environmental laws.  Legal stipulations regarding zoning, fair housing, property disclosure, consumer protection, and building codes require buyers to be more knowledgeable than ever before. Today's buyers need the professional assistance and advice that only a professional Realtor can provide.

Significantly, you should be aware that not all real estate brokers and agents are Realtors. Only those licensed real estate professionals who have joined the National Association of Realtors, and are members of their respective state and local Realtor associations, may use the registered trademark term 'Realtor'. Realtors must adhere to a strict national code of ethics.

Tips on Choosing a Realtor

Make a thorough search, as you would before hiring a contractor or attorney.

• Use directories and the Internet, or visit the Rhode Island Living Web site at www.riliving.com to locate area Realtors.
• Do not be afraid to ask a prospective agent or broker how long they have been licensed, how long they have been working in the local market, or how many sales they have closed in recent months.
• Always ask if they are a Realtor member.
• And, as with any important hiring decision, check references, ask friends and family about their experiences with a Realtor you are considering.

Major Mistakes Buyers Make When Buying a Home

1.  Feeling obligated to work with the first Realtor that comes along:  Interview Realtors and choose one that meets your needs.  Remember, you are in control.  Do not let someone make you feel obligated.  If your choice does not work out, change your Realtor.

2.  Making an offer without knowing what you can afford:  You may have a solid income, but it is not wise to make assumptions.  Pre-approved for a specific level of mortgage helps avoid problems.

3.  Taking advice from the sellers’ agent as gospel:  Be aware of whom the real estate agent is representing.  Take the seller’s agent’s advice with a grain of salt

4.  Being pre-qualified instead of pre-approved for a mortgage:  Being pre-qualified may put your offer at a major disadvantage. Pre-approval means you are qualified for a specific loan and puts you in a stronger position.

5.  Accepting Verbal Agreements or Extensions:  An agent may say that the seller accepts your price and terms, but a seller may accept a better offer, without resource, until they actually sign your offer.  

6.  Starting without having a clear picture of what and who are involved:  Many players are involved in the purchase of a house, including Realtors, sellers, lenders, underwriters, appraisers, attorneys, home inspectors, insurance agents, movers, etc.  Understand everyone's role before starting.

7.  Not discovering hidden defects before buying the house:  A qualified building inspector is a key member your team.  Good inspectors look for hidden defects.  Do not make your decisions based on the least expensive inspector.

8.  Allowing emotions to rule:  Keep emotions in check when buying a house. Sellers may be difficult or unreasonable.  You may have second thoughts or get discouraged.   Seek out people you trust to help maintain perspective.

9.  Agreeing to the wrong mortgage:  Remember mortgage representatives are salespeople.  Beware and be educated.  Do not focus only on the rate or look at a 30-year fixed rate as forever.  Look at where you want to be in five to ten years.  Find the loan that fits.

10.  Believing you can do it all on your own:  Accept the fact that most people need help. Look for those with a consultant's mind set to help you keep a realistic perspective.  Recognize that salespeople often limit choices to generate sales.  Do not limit your information sources to just salespeople.  

Sellers

Valuing Your Property

As part of the early stages of deciding to sell, sellers need to understand the current real estate market.  Housing is a commodity and fluctuates according to many factors, including supply and demand, interest rates, and the general  economy.  Your home is only worth what a qualified buyer is willing to pay for it at the time it is put up for sale. 

Sellers should consider a professionally prepared comparative market analysis (CMA) which allows a seller to see what similar properties in the same market have sold for in the recent past and what the competion is in the current market.

Preparing Your Home for Sale

Sellers should take a fresh, impartial look at their property prior to putting it on the market.  You have one chance to make a good impression so improving your home's curb appeal is very important.  Don't under-estimate the importance of a fresh coat of paint and a well-tended yard.  Be sure to eliminate clutter. 

Although sellers often concede that new carpeting or wall paint is warranted, they are sometimes too willing to let prospective buyers worry about such improvements.  In reality, buyers tend to make mental deductions from the sale price for each new 'job' they will have to complete, and they are inclined to inflate the cost of new carpeting or simple repairs.  Your listing broker will give you specific advice, but here are several suggestions to consider:

Do:

- Cut the lawn, clip shrubs, fertilize, seed
- Clean, wash indoor carpets and floors
- Consider applying fresh paint to indoor walls
- Thoroughly scrub the inside of appliances
- Use accents, clean towels, and decorative soaps
- Make sure all closets and cabinets are clean
- Consider repairing or replacing loose roof shingles
- Reseal asphalt driveway

 Don't:

- Plant new shrubs or trees.
- Select vivid colors for new paint or carpeting-stay neutral
- Purchase new wall paper of light fixtures
- Purchase new appliances
- Clutter shelf tops with personal photos
- Fill closets with items removed from the rooms
- Replace entire windows
- Pave a gravel driveway.

Dealing with Offers to Purchase

Real estate agents are required by law to present all offers to a seller.  When answering questions about their property, every seller has the duty to respond fully and accurately to any request for information about the property.  This is true whether the information is requested directly by a prospective buyer, or by a real estate agent, who, in turn, may pass along the information to a prospective buyer.  Answers that are misleading or are half-truths are improper and the seller may be liable for them.  If the seller doesn't know the answer, he or she should not guess, but should qualify the answer with the acknowledgment.

Once a seller receives an offer to purchase, he or she may counter the offer by accepting the offer with additional stipulations, including, but not limited, to a renegotiation of the price.  For example, the seller may accept the offer to purchase price, but require 30 days to find suitable housing.  Buyers and sellers should be careful when making offers and counter offers to ensure that they understand all the terms and   conditions and any contingencies included in the fine print of the contract. 

The seller's agent will usually assist in finalizing the terms of the sale between the buyer and seller in the form of a written purchase and sale agreement.  This agreement once signed is a binding contract to which the seller and buyer are obligated.

Major Mistakes to Avoid When Pricing Your Home

1.  Build in bargaining room:  If your property is properly priced, buyers will recognize that fact and be willing to offer what you ask.  They may try to buy it for less, but they will not risk losing it.  Every buyer wants to feel that they made a great deal, but a big spread between asking and selling price is a false perception.

2.  Paid too much:    If you pruchased your house at the peak, this may happen and you may have to move before appreciation catches up to your purchase price.  Overpricing your property will not solve the problem.  Compare your home's value to the cost of the homes in the market you are moving into and you might find you could afford more home for less.

3.  Need more money: This almost never works on its own.  Buyers have become better educated and have access to new technology that makes learning about market value easier than ever before.  A property will only sell for what the market will bear.

4.  Deciding you are not in a rush:  If not, then do not put your property on the market.  The longer it is on the market, the less someone will ultimately pay for it.

5.  Making improvements:  What you perceive as having value may not add much value when you sell.  In fact, some improvements may actually reduce value if they are perceived only to meet a particular owner's lifestyle.  Seek advice from your Realtor when making major improvements.

6.  Using a family Realtor: As in most areas, family and money don't mix.  Selling property is no different.  Seek assistance from a Realtor outside the family.