Important Things Nick Vertucci Says Every Home Seller Should Know
Real estate expert and entrepreneur Nick Vertucci says that home sellers often find themselves facing lots of mostly unpleasant surprises. But it does not need to be this way.
Vertucci, who is the host of a radio show called "The Real Estate Investing Hour," as well as a well known real estate investor himself, believes that in the real estate business there are a wide collection of misconceptions and myths that can unduly influence sellers and buyers without having any real basis in reality. One of his main responsibilities, he says, has always been to help home sellers separate fact from fiction when it comes to selling their home. That is to say, to let them know what they should expect to happen during the course of the sale and what is entirely fiction.
Vertucci goes on to say that a large number of home sellers are simply unaware of the many things that they themselves can do to make a sale happen in a more efficient manner. These things include making certain improvements to their homes and being more flexible as to when to show their property.
In this article, Nick Vertucci will provide a breakdown of all the things that often surprise home sellers. Things he believes sellers need to know before they put their homes on the market.
The Costs of Renovating a Home According to Nick Vertucci
These days, Vertucci says, renovating a home in preparation for its sale is pretty much a standard part of the home selling process. It is not as optional as home sellers would like to believe. Unfortunately, he says many sellers are overwhelmed by everything that is involved in the process, especially as the costs relating to remodeling a property can be unclear from the outset. Home sellers, he also says, are troubled by the hassles of hiring the right contractors for the job and by the fact that the renovation can be both disruptive and time consuming.
But Vertucci emphasizes that home sellers should understand that the lack of renovations can prevent sales, and can also prevent sellers from receiving the full market value of their properties. So, they must overcome their anxieties about renovation and get into action.
The Actual Value of a Home Versus Perceived Value
Vertucci says that most home sellers over-appreciate the value of their properties. He says that this happens for the same reason that parents all think that their baby is cuter than all others: they simply lack objectivity. They believe that just because they love their home that so will everyone else, and that this will result in it being more valuable than other homes similar to it.
But this is just not true, Vertucci insists. He says that the value of a home is based purely on one thing: its market value, which strictly follows the unerring laws of supply and demand. He further says that — despite what many home sellers think — home values are not influenced at all by how much a seller originally paid for the property or by how the home has been decorated. The value of a home is also not influenced at all by how much money the seller needs.
Sentiments Can Cloud Judgement
Nick Vertucci says that, in his experience, home sellers can often develop sentimental attachments to their property and that this can lead them to making a variety of big mistakes. For example, it could lead them to believe that they do not really need to make renovations that they really do need to make, and it can lead them to think that the renovations that they do need to make will be less expensive than it actually will be.
Vertucci says that sentimentality could also make home sellers believe that their home is more valuable than it actually is. He further says that home sellers need to understand that there is just one thing that determines the value of their home: the market.
Knowing Their Home's Appraised Value
According to Vertucci, in his experience many home sellers are surprised by the amount of square footage listed in the appraisal of their home that was calculated by the county in which they reside. He says that, since a sales price is determined by multiplying the price per square foot by the area of the property in question, it is important for home sellers to know exactly how many square feet their property contains. Knowing this, Vertucci says, can actually lead to an increased sales price and more money for the seller.
Understanding the Difficulty of Financing a Condominium
Vertucci says that often sellers and buyers are surprised by the financing problems that are typically associated with condo purchases. He further says that the problem is that condos are fundamentally different than houses. The sale of them depends not just on the property in question, but also the condominium complex as a whole, which can be constructed and maintained in many different ways.
Vertucci goes on to say that — for condos — there are many items on a conforming loan checklist, and that if even one is not in order, it can kill a deal. Furthermore, while sometimes an alternative form of financing can be found when purchasing a condo, these forms of financing can be very expensive.
The point Vertucci wants sellers and buyers of condos to understand is this: do no mistake a condo for a house. They are not the same.
The Importance of Staging
Vertucci points out that many home sellers are not willing to pay for proper and professional staging of their properties, and that they lose out on money because of this. He says that the following factors can make a home less attractive to a potential buyer: a cluttered home, and one that has too many outdated or unattractive fixtures.
Vertucci says that staging requires only a small cost, and that it can not only lead to a higher sales price, it can also lead to a home selling much sooner than otherwise. He further says that home sellers should look at staging as not an expense, but as an investment.
Alloting Sufficient Time To Properly Prepare for the Sale
Nick Vertucci likes to tell home sellers that, if they are not preparing early for the sale of their home, they are preparing way too late for it. He says that sellers need to start preparing at least 3 months before they put their property on the market, so that they have sufficient time to do everything that is necessary. This initially includes shopping for an agent and coming up with a listing price after an agent has been selected. Once this has been completed, the seller — with input from the agent — has to decide what renovations need to be done and figure out how much it will cost. Finally, time is needed to find the right contractors, and to complete the renovations correctly.
The Value of a Home Pre-Inspection
While it may sound counterintuitive, Vertucci always advises home sellers to get a home inspection prior to putting their home on sale. This way the seller can know ahead of time if there is a serious issue that needs addressing now. He says that it is far better for the seller to find and fix a issue than for a buyer to find about it out later and perhaps even walk out of the deal because of it. He further says that providing potential home buyers with proof of both a home inspection and the completion of repairs can even be a valuable sales tool, as it can make the buyer feel more confident about the purchase. Vertucci says that often, when buyers see that the home has already been inspected and repaired, they forgo their own inspection, which could speed up the process of selling the home.
The Limitations of Open Houses
Vertucci believes that sometimes home sellers place too much emphasis on how many people visited their property during an open house. He says that this number is largely irrelevant and that, in general, well qualified buyers are more likely to visit a home outside the framework of an open house. In his experience, they tend to visit homes privately, and accompanied with agents, while those attending open houses are more often than not neighbors and those just taking a look around. Vertucci believes that those who attend open houses are rarely serious buyers.
Nick also says that home sellers who follow the guidelines listed in this article will be far better equipped for successfully selling their homes. They will also be far less inclined to be surprised or even shocked during the process.
In addition to his radio show, Vertucci is the CEO of The Nick Vertucci Real Estate Academy, which has locations throughout the United States, including in California and Nevada. Vertucci's academy is now one of the biggest growing sources for both real estate education and consulting in the entire country. Nick has developed a real passion for real estate that comes from his own dealings, and he loves to teach this passion to others.
For more information on Nick Flipping events, check out the man himself on Twitter.
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