When Should You Accept A Low Bid?

If you are selling your home and are motivated to get the deal done quickly, you may be tempted to accept a low bid. Whether you need to sell because you are being relocated or need to downsize to save your financial investment, there are several things you should consider before accepting a bid that is below your asking price. Here are a few tips on making that decision a bit easier.

How Motivated Are You?

The decision to accept a low bid should always be influenced by your actual financial position rather than simply wanting a quick sale. If you are in a situation in which you may lose your home due to foreclosure, accepting a low bid may be your only option. If, on the other hand, you are simply tempted to take a low bid because it is more than you originally paid for the home, you may want to reconsider. For most people, the motivation will lie somewhere in the middle, and balancing your motivation to sell and the potential financial loss of accepting a low bid should be carefully evaluated.

Avoid Becoming A Motivated Seller

The best way to sidestep having to take a low bid is by avoiding the position of being a truly motivated seller in the first place. If you are having trouble paying your mortgage, be sure you have exhausted any refinancing options that may exist. Another common reason people feel obligated to accept a low bid is that they have already purchased a new home and do not want to be in the position of paying two mortgages at once. So before purchasing a new home, first sell your existing home.

No matter your reason for considering accepting a low bid for your home, be sure you get the advice of both a REALTOR® and a financial advisor to ensure you are making the right decision. 

Have more tips? As always, I look forward to hearing your thoughts!

Be well,

Rhonda

PS. Thinking of buying a home or selling yours? I'd love to sit down and talk with you about the process and the market. You can reach me anytime at 401-326-2928. 

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Bring your “A” Game to your next Open House

An open house is a win win win! It is a great way to bring attention to your seller's home on the market, and gain some feedback about its perceived strengths and weaknesses. For potential buyers, it's a great no-pressure way to get in and see a listing that peaks your interest, especially if you are just casually looking. And for agents, it can be an opportunity to meet potential buyers. If that particular home does not fit their needs, you may be able to find them their perfect match if they are not already working with an agent. If you are a new agent or a buyers' agent who typically does not list properties, consider asking others in your office if you can host an open house for them.

Place Open House signs strategically at the main road, at the street entrance, and in front of the house. Always arrive 20-30 minutes early to your open house. It will be awkward if you are unloading your car as someone arrives, or worse yet, someone is waiting for you. It's nice to be able to take your time getting settled so you appear relaxed. Turn the lights on in every room, including the basement and garage. Turn on overhead lights and any lamps for added ambiance and warmth. Light some candles so a pleasant aroma fills the home. Choose candles with a scent that fits the season, or go for ones that smell like freshly baked cookies. If the weather is nice, or if the home has been vacant and has a musty smell, open some windows to let the fresh air inside, even just for a few minutes to clear the air.

Consider bringing some light refreshments. Individually wrapped chocolates or candies, apples, and cookies are easy and do not require much in the way of clean up. Though I love the idea of coffee, juices, etc., stick with water bottles since there is no harm done if a spill occurs.

Having some light music playing in the background can set a great tone! There are some really cool speakers out there, enabling you to play music right from your handheld device. They are available in many styles and configurations and range in price to fit any budget.

Treat everyone who walks through the door as if they are a guest entering your own home. If you make everyone feel comfortable the moment they walk in the door, they will remember the home fondly afterwards, even if it wasn't right for them. Give them your undivided attention, welcome them with a smile, and thank them for coming. Ask them to sign in. There is a great app for your iPad or Android device called Open Home Pro, that allows guests to sign in right through the application. Besides name and email, they will be asked a few questions (customizable by you). If you rather, use a paper sign in sheet. Consider using a comment card so you can obtain some feedback for your sellers.

Have information packets assembled, and present them in a professional looking folder. Besides the home's information sheet and disclosures, consider adding financing information, and a Homebuyer Guide. Consult with an area mortgage broker; they will be pleased to give you some information on financing options. Other items you may want to add to the folder include a Buyer's Questionnaire, complimentary magazine, other listings in the neighborhood they may like to see with you. Lastly, don't forget to include your business card!

Once the open house concludes, be sure you leave the home as you found it. Turn off lights, blow out the candles, close and lock windows, remove any trash. It's a great idea to leave a small box of cleaning supplies in your car (paper towels, spray cleaner, trash bags) in case the home is currently vacant and there are no supplies readily available. If the sellers do not arrive back home before you leave, you can consider leaving them a quick note to thank them for their hospitality and give them a brief synopsis of the turnout. If it is not your listing, let them know their listing agent with contact them with the specifics. I would not suggest leaving your business card in that case. Compile guests' comments and discuss with your seller. If you are hosting the Open House for another agent in the your office, discuss the comments with them so they can discuss with the sellers.

I would like to end with some thoughts on Realtor Safety. Above all else, and as with any showing you attend, stay alert and be aware of your surroundings. Know where the doors leading outside are located. Leave the driveway open and park your car in the street. Keep your keys in your pocket. Have your phone with you at all times, be sure someone knows where you are and calls to check on you periodically either via text or phone call. Have a system in place that if you don't respond after two tries within a 10-minute span, they will come to the house or call the police to take a ride by and check on you. Turn the auto-lock on your phone off; have it poised to dial 911 so you only have to hit the call button to connect. Just be careful to don't call by mistake! During the Open House, make it a point to walk behind guests as they tour the home. Even if someone suggests you go first or asks you to the lead the way, politely decline. Offer to let them explore and stay sightly behind, so you can answer questions as they arise, keep your eye on them (especially if sellers have valuables in the home), keep an ear tuned to the door if others arrive, and be in a position to have an advantage of escape if needed. I recently attended a self-defense seminar that provided a few basics. We learned a few defense techniques that I hope I'll never need, but will be invaluable if I do. I highly suggest contacting your local martial arts studio, I'm sure they would be happy to put something together for your office.

An Open House is a great marketing tool throughout the year. Get inspired, create a plan, and have fun with them! 

As always, I would love to hear your additional thoughts, ideas, and comments. 
Be well,

Rhonda

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