Tricks of the Real Estate Trade

Tricks of the Real Estate Trade

Why would a home seller choose your offer above others? What truly makes the sale of a home successful? Some believe it comes down to price, but it's not that simple. It’s actually the overall offer on the deal. In this market with homes receiving multiple offers, you have to be strategic and creative in order to come out ahead. There are many tricks of the trade that realtors use to put their home buyer’s offer above others.?

Here are tips that can help bring in a strong offer on a home:?

  1. Competitive price
  2. Flexible closing date for sellers
  3. As-Is offer, waiving the inspection?
  4. No appraisal contingency
  5. Free rent-back option for sellers
  6. Pay seller’s closing costs
  7. Strong down payment

Even though all cash offers speak loudly, they’re not always king. If you have a 20% down payment and are flexible on the overall terms of the deal, your offer could supersede a cash offer. As you can see, a deal is not always cut and dry. There are a lot of trade strategies that a knowledgeable real estate broker can use to help solidify the deal.?

Are Zillow Zestimates Accurate?

With house hunters willing to up their offers and bring more to the table, it may be a tempting time to sell your home. The real estate market has been unlike any time in recent history. The pandemic had a lot to do with it, as it created a shortage of housing for sale. Couple that with low interest rates, and we saw a mad frenzy of multiple offers on homes, which drove up housing prices. As a real estate agent, I’ve had to be very creative in putting deals together to make sure I do my best for my home buyers and sellers. Real estate strategy is what I love to do!

So how do you know the value of your home? What does Zillow have to say about the housing market? Leonard Steinberg of Compass recently wrote about his experience with Zillow …

“In a recent survey, respondents said they would trust information from Zillow as much as from a real estate agent, and 27% said they would trust Zillow more. Only 18% said they would trust an agent more than Zillow. To test this, I personally went on to ZILLOW to see how they valued the home I bought earlier this year in Greenwich.....it showed that I paid ONE MILLION DOLLARS more than I actually paid and that I closed 4 days after I actually closed.....ZILLOW also showed that my next-door neighbor just sold for 1/77th (ONE SEVENTY-SEVENTH!) of the actual sales price.......hmmmm....I truly loved the part where the ZESTIMATE said my home was worth almost 38% more than what I had paid for it just 6 months ago. Have prices gone up 38% in 6 months in Greenwich???? PS: I was not included in this survey.”

That’s alarming! Most people trust a Zillow algorithm as much or more than a local real estate agent?

If you really want to get an accurate home value estimate, and find out what’s going on with the real estate market, talk to a real estate broker. And even then, it’s good to dig a little deeper to find out how they are getting the information. A lot of brokers will generate an automated report from the MLS based on a zip code search. This report may include property sales that are already six to twelve months old and may be comparing single family homes to condos. On any given street of the dense, urban landscape in Chicago, properties can vary drastically from new construction to homes that are over 100 years old. This can make the price difference extremely different.?

With our diverse neighborhoods and hectic pace of market trends, the Chicago real estate market is complex. Because of this, I not only rely on what I’m seeing in the market, but I also share information that goes beyond a basic MLS report. When I create a custom market analysis for a client, I take the following details into consideration:

  • Current market trends - how in demand is your type of property?
  • Historical trends - what real estate cycle is Chicago currently in?
  • Current news - what local and state government news is affecting the market?
  • Location - what are the neighborhood trends, public schools and transportation?
  • Type of property - what is the size of your home in relation to other properties in the neighborhood?
  • Property condition - what is the condition of your heating, air, plumbing, electrical, roof, ventilation, appliances, etc?
  • Overall style - what is the style of the kitchen cabinets, countertops, bathroom fixtures and flooring?
  • Floorplan - what are the room sizes, storage spaces and general layout?
  • Update and upgrades - what types of improvements have been made to the property since the purchase?
  • Building materials - what type of construction is the home’s interior and exterior?
  • Comparable properties - what have similar properties in close proximity sold for in the past six months?
  • Current homes - what’s the price of current comparable properties on the market right now?

If you want an accurate and up-to-date property value analysis or if you’re wondering if a rehab project will add value to your property, please contact me. I’m always here to help!

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