How do I price my home correctly?

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  One of the biggest mistakes a home seller can make is pricing a property based on hope instead of market reality.  Every seller wants to maximize value, but pricing a home correctly from the beginning is  what creates the strongest results.

The first step in pricing a home properly is looking at comparable sales. These are homes that have recently sold that are similar in size, condition, age, location, and overall appeal. Active listings matter too, because those are the homes your property will compete against right now.

But pricing is not just about square footage or online estimates. Two homes that appear similar on paper can sell for very different prices depending on updates, layout, curb appeal, condition, lot characteristics, school district, or even the specific street location.

Many homeowners make the mistake of focusing on the highest sale in the neighborhood. Buyers, however, compare everything available in the current market. If a home is priced too aggressively, buyers may never even schedule a showing. The longer a property sits on the market, the more buyers begin wondering if something is wrong with it. Ironically, overpricing often leads to lower offers in the long run.

The strongest activity for most listings happens during the first few weeks on the market. That initial exposure is important. A correctly priced home tends to attract more attention, more showings, and sometimes even multiple offers. Competition between buyers is what pushes prices upward, not simply starting high and hoping for the best.

Pricing also depends on current market conditions. In a fast-moving seller’s market, pricing strategies may differ from those used in a slower or more balanced market.  At the end of the day, pricing a home correctly is both analytical and strategic. It requires understanding comparable sales, buyer psychology, competition, and local market trends. The goal is not simply to put a number on a property. The goal is to position the home where the market will respond most favorably.

As a Certified Appraiser, I study market trends and neighborhoods values daily.  Call me to set up a time to discuss how much your home could sell for in today's market.

 The answer is important because today’s buyers are more informed, more selective, and more value-conscious than they were just a few years ago.

The first thing most buyers are looking for is condition. That does not necessarily mean a home has to be fully renovated or look like something out of a design magazine.  Buyers simply want a home that feels clean, well maintained, and move-in ready.  Deferred maintenance stands out quickly.  Peeling paint, worn carpeting, outdated fixtures, or clutter can make buyers wonder what other problems may exist beneath the surface.

Buyers are also paying close attention to monthly affordability. With higher interest rates and increased costs overall, many buyers are looking for homes that will not immediately require major repairs or large renovation expenses after closing.  A newer roof, updated mechanicals, energy-efficient windows, or modern appliances can provide reassurance and make a property more attractive.

Layout and functionality matter too. Buyers continue to value flexible spaces that can serve multiple purposes, especially for remote work, hobbies, or multi-generational living. Storage space, usable basements, garages, and outdoor living areas remain popular features.

But beyond specific features, buyers are really looking for value. They are comparing homes carefully. If a property is priced too aggressively for its condition or location, buyers notice immediately.

Presentation also matters more than ever because most buyers begin their search online. Professional photography, good lighting, clean spaces, and strong first impressions can dramatically affect buyer interest before they ever walk through the front door.

The important thing for sellers to understand is that buyers are not necessarily expecting perfection. What they want is confidence. They want to feel that the home has been cared for, priced appropriately, and represented honestly. Homes that create that feeling are usually the ones that generate the strongest interest and the best offers. Call me anytime for a free consultation, I'm here to help.

 If you’re thinking about selling your home, you’ve probably heard people say, “Wait until interest rates come down.” But the relationship between interest rates and home values is not always as simple as the headlines make it sound.  Here’s the practical reality.

Interest rates mainly affect buyers more than sellers.  When rates rise, buyers’ monthly payments increase, which can reduce how much house they can comfortably afford.  That can soften demand in some price ranges and make buyers a little more cautious.  Homes may take longer to sell, negotiations can become tougher, and unrealistic pricing becomes more obvious very quickly. But higher rates do not automatically mean home values collapse.

In many markets, low inventory continues to support prices because there simply are not enough homes available. Even with higher borrowing costs, people still need to move. Life events don’t stop because mortgage rates change. People still relocate for jobs, downsize, upsize, retire, get married, or deal with family changes.

What interest rates really do is shift buyer behavior. When rates are low, buyers tend to stretch further and compete more aggressively. When rates rise, buyers become more selective and value-conscious.

That’s why pricing strategy matters more than ever in a higher-rate environment.  Buyers today are watching value carefully.  Homes that are priced realistically and presented well still attract attention. Homes that are overpriced often sit.

It is the nature of markets to change.   Serious buyers and serious sellers adapt to those changes. The homeowners who do best are the ones who make informed decisions based on their own goals instead of waiting for perfect conditions that may never arrive.  Call me anytime for a free, no hassle, no sales pitch, no obligation consultation. I'm here to help. 

The largest expense for most sellers is typically the real estate commission. Commission structures can vary depending on the services provided and the agreement between you and your broker.  Navigating buyer's agents fees is also worthy of an in person or over the phone discussion, ans there are options available that can be negotiated to save you money, but still incentivize buyer's agents to show your home.

In addition to commission, sellers have other modest closing costs. These can include attorney fees, transfer taxes ($4.00 per $1,000 in NYS), recording fees, and any outstanding property taxes or utility balances that need to be settled at closing.

If there is an existing mortgage on the property, the remaining loan balance will also need to be paid off from the proceeds of the sale.  Mortgage payoff amounts can differ slightly from regular monthly balances because of interest and other adjustments.

Preparation costs are another consideration.  Painting, landscaping, cleaning, staging, or small repairs before listing are other expenses to consider.  If you don't want to or can't make larger repairs that may come up, you can offer a seller concession to the buyer to help them pay for the repair after closing.

Understanding the full financial picture upfront will help you avoid surprises and make more informed decisions throughout the process.   Call me anytime for a free, no hassle, no sales pitch, no obligation consultation. I'm here to help. 

The answer depends on the condition of the home, the local market, and how much time and money a seller wants to invest before putting the property on the market.  In many cases, sellers do not need major renovations to successfully sell their home.  Large remodeling projects often cost more than homeowners expect, and they do not always produce a full return on investment.  Instead, focusing on smaller improvements that make the home feel clean, well maintained, and move-in ready is usually the better strategy.

Basic maintenance items should almost always be addressed.  Leaky faucets, peeling paint, damaged trim, loose railings, burned-out light bulbs, or stained carpeting can create the impression that the home has been neglected.  Buyers tend to notice deferred maintenance quickly, even when the issues are relatively minor.

Fresh paint, decluttering, deep cleaning, and improving curb appeal can make a significant difference without requiring a massive budget. Simple landscaping, mulching, pressure washing, and cleaning windows often improve first impressions immediately.

Kitchens and bathrooms are important, but full remodels are not always necessary.  Sometimes replacing outdated hardware, light fixtures, faucets, or countertops is enough to modernize the space without overspending.

It is also important to think strategically. Not every improvement adds value equally. In some cases, spending money on the wrong project may not increase the sale price at all.  The goal before listing is not perfection, but rather to present the home in the best possible light while maximizing return and minimizing unnecessary expenses.  For a Comprehensive Tips and Suggestions List, email or text me at matt @maloneyrealty.com or cell, 518-429-9227, I'm here to help. 

One question you may be asking yourself when considering a move is, "How long will it take to sell my home?"  The answer depends on several factors, and while some homes sell in days, others can take weeks.

The biggest factor affecting how quickly a home sells is pricing.  New listings typically attract the most attention during the first few weeks on the market, so homes that are priced correctly and competitively from the beginning will  sell for top dollar and in a timely fashion.  Buyers are constantly watching new listings, and the strongest activity often happens shortly after a property becomes available.  If a home is overpriced, buyers may ignore it entirely or assume there is something wrong with it.

Condition and presentation also play a major role. Homes that are clean, well maintained, properly staged, and professionally photographed sell faster than homes that feel cluttered, dated, or neglected. First impressions matter, especially online where buyers often decide within seconds whether they want to schedule a showing.

Market conditions also influence timing.  In a strong seller’s market with limited inventory, homes can move very quickly. In a slower or more balanced market, buyers tend to take more time, compare more options, and negotiate more carefully.  Currently there is less than a 2 month supply of housing oinventory in the Capital Region, so sellers still have an advantage. 

Location, price range, and property type matter as well.  A well-priced starter home in a desirable neighborhood may attract multiple offers quickly, while a unique luxury property may appeal to a smaller pool of buyers and therefore additional marketing time.

It is also important to remember that “selling” a home involves more than simply accepting an offer. Even after a contract is signed, there are inspections, financing, appraisals, attorney review, and closing timelines to work through. In many cases, the process from listing to closing can take anywhere from 30 to 60 days, sometimes longer depending on the circumstances.

The goal should not simply be to sell quickly. The goal is to sell for the best possible combination of price, terms, and timing. Every seller has their own, particular situation, and every home has its own story and market position. Understanding those factors upfront helps create a realistic strategy and reduces surprises throughout the process.  Feel free to call me anytime at 518-429-9227, I'm here to help. 

One of the biggest questions homeowners ask is, “Is now a good time to sell, or should I wait?” The honest answer is that there is no perfect time that fits everyone. The right time to sell depends on both the market and your personal situation.

Many homeowners spend months, or even years, waiting for the “ideal” moment. They hope interest rates will drop, prices will rise further, or market conditions will somehow become clearer. The reality is that the housing market is always changing, and trying to perfectly time it is extremely difficult.

What matters most is understanding your goals and evaluating current conditions realistically.

If inventory is low and buyer demand remains strong, sellers can still benefit from less competition, even if interest rates are higher than they were a few years ago. Buyers adjust to markets over time. Serious buyers are still purchasing homes because life events continue regardless of interest rates. Job changes, growing families, downsizing, retirement, and relocation all continue to drive the market.

At the same time, waiting can sometimes work against sellers. While values may continue to rise in some areas, increased competition from future listings could offset those gains. Deferred maintenance, rising property taxes, insurance costs, or changing market conditions can also impact the equation.

On the other hand, there are situations where waiting may make sense. If a homeowner needs time to prepare the property, complete improvements, improve curb appeal, or organize their next move, patience can be beneficial. A rushed listing often leads to unnecessary stress and weaker results.

The key is not trying to predict the market perfectly, but rather understanding the market today and developing a strategy around your specific goals. Every property and every seller’s situation is different. That’s why relying solely on headlines or national market reports can be misleading. Real estate is local. Conditions can vary dramatically from one town, neighborhood, or price range to another.

If you’re considering selling within the next few months, it’s worth having a conversation early. Even if you ultimately decide to wait, understanding your options and your home’s current market position can help you make a more informed decision. Feel free to call me anytime at 518-429-9227, I'm here to help. 

One of the most common questions homeowners ask is, “What’s my home worth?” The short answer is: it depends. The real answer is a little more nuanced than simply plugging your address into an online estimate tool.

Websites like Zillow and Realtor.com can provide a rough starting point, but they don’t walk through your home, evaluate upgrades, account for condition, or understand the subtle differences between neighborhoods, streets, and buyer demand. Two homes with similar square footage can sell for dramatically different prices depending on presentation, updates, layout, location, and timing.

A home’s value is ultimately determined by what a willing buyer is willing to pay in the current market. That’s why accurate pricing requires more than an algorithm. It requires analyzing recent comparable sales, active competition, market trends, and the overall appeal of the property.

Overpricing can cause a home to sit on the market and become stale. Underpricing can leave money on the table. Finding the right price is one of the most important parts of a successful sale.

As both a real estate broker and appraiser, I approach home valuation from both the marketing side and the analytical side.  My goal is to give you a realistic understanding of where your property stands in today’s market.

If you’re curious about what your home may be worth, call me for a no sales pitch, no hassle, obligation free consultation at 518-429-9227.

     What's the difference between an appraisal done for a bank lending money to a borrower for a house versus an appraisal done for non-lending purposes, such as for a divorce or to settle an estate?

An appraiser working for a bank has a target to hit, despite all the claims you here of unbiased, third party, independent values. It's so contrived. It's not a coincidence as many borrowers think that the appraised value came right in at, or a few thousand above, the contract price. The appraisers are defending a value, or justifying one, that being the price on the purchase contract.

    It's not all shenanigans however. Since market value is loosely defined as what a ready and able buyer is willing to pay a seller, neither being under undue stress (i.e. in foreclosure, forced sale, etc.), then market value is created when two parties have a meeting of the minds. Realtors don't set market value, nor do appraisers, buyers and sellers do, so appraiser are really just trying to defend for the purpose of collateral on a loan, the value established by the market, or pool of buyers and sellers.

     So what comparables are being chosen to hit the target number? Are we shopping for comparables by price? Non-lender appraisers do not have the target, and are truly developing an opinion of value based on the raw data, market trends, the property condition, the functionality of the lot, the design style, the age, as well as a host of other variables. 

     Idealistic organizations like the Appraisal Qualifications Board, the Appraisal Foundation, and documents like the Uniform Standards of Professional Appraisal Practice will have you believe that both bank appraisers and non-lender appraisers go through the same scope of work working independent of any outside influence whatsoever, and that the results would come back the same way.

     There's nothing wrong with trying to hit a target if the data supports it, and does not overlook better sales that otherwise do not support the value. But let's lead the public into believing both appraisers are doing the same scope of work. Non-lender appraisers do not have to find sales comparables that bracket the sale price on a purchase contract, and in fact don't even look at prices when gathering comparables. Conversely, their value is revealed by what the comparables selected point to rather selecting comparables based on a price given to them.    

On average houses have gone up over 50% in the last 5 years. The average age of a first time home buyer is now forty! Yes, people are living longer, but let's face it, 40 is middle age. Gone is the idea that twenty something year olds are fulfilling the American Dream of owning a home. Although we can spend all day wondering on how we got here, the more important thing is what are we going to do about it now.

My best advice for the younger generation who wish to purchase a home is to aggressively save money for down payments and closing costs. FHA financing should be closely looked at as well, since it only requires a 3.5% down payment as opposed to the typical 20% down. Closing costs can be wrapped into the mortgage in the form of seller concessions. Find a good Realtor who will aggressively negotiate for you, and not just bend to the whims of the perceived market. Two to four family homes should also be looked at as first time purchases since the income can be used in some instances to help offset your debt to income ratio. Fixer uppers should also be strongly considered. Yes, they take more work and the gratifying move in process is delayed or uncomfortable, but after renovations are made these buyers are typically ahead of the equity game if the process is done right.

Don't let the high prices get you down. Where's there's a will, there's a way. You just need someone on your team with experience and grit to help with process. Currently, in the Capital Region, there is about a 1.5 to 3 month inventory of homes, depending on which county or where neighborhood is located.        

Although prices have still continued to increase in certain locales, prices overall are stabilizing, and the seller market is softening as days on market grow longer. This combined with the lower interest rates should give encouragement to those looking to buy their first home. 

                                                        The Steps to a Successful Sale are:

-Hiring a Broker/Realtor (if choosing to not sell on own)

-Setting the List (Asking) Price. 

-Required paperwork: The Property Condition Disclosure.

-Preparing the house: decluttering, depersonalizing, and cleaning.

-Photographs/Internet Marketing.

-Showings-what to do.

-Buyer Feedback and Market Reaction.

-Offers - Negotiating & Choosing.

-Going under contract.

-Grace Period / Attorney Approval.

-Buyer applies for a mortgage (mortgage contingency).

-Home inspection-Negotiating any issues. 

-The Appraisal.

-Mortgage Approval-Commitment letter, clear to close.

-48 hour walk-through.

-Changing mail, utilities.

-Closing.

-Following Up.

Call me at 518-429-9227 or email matt@maloneyrealty.com  to discuss ANY of the above.......~Matt

This excerpt is part of my "Sell Your Home for Top Dollar"  series  where I cover the steps to successfully selling your home.  It is part of a soon to come video series and book later this fall. For now, let's delve into  tips for selecting an agent.

Hiring (or not) a Broker

     After committing to sell, the next step is deciding on whether you’re going to hire an agent or sell on your own as a for sale by owner (FSBO). I’m not going into great detail about which way to go on that. I obviously am biased as a real estate broker. 

     It has been my experience that a good broker, or agent (agent and broker are used interchangeably here) is well worth the investment when transactions start to go south, and that it takes a calm, cool collected, and  educated (real estate-wise) professional to fix. 

     Two of the biggest mistakes FSBO's make are incorrect pricing, and letting unqualified buyers into their homes. If you’re going it on your own, get an appraisal, as well as two to three Realtor’s opinions. If you are going to hire an agent, do a little homework on who they are. 

     Agents that have other jobs tend to let their clients slip through the cracks. It’s not intentional, it’s just not possible to provide silver platter service and be at another job when something important comes up, like competing offers that need urgent attention.

     People want to work with agents they like, know and trust, so it’s easy to see a family member or friend who is starting out, or trying it out as a part-time job as a good fit. You are better off interviewing several agents however, and reading their reviews and testimonials to see if they are a good fit. .

     You can often find agent reviews on Zillow or Google.  They should speak to the person’s character and integrity first and foremost.  You also want a competent agent who excels in their craft, knows how to read contracts, and negotiates effectively (and shrewdly) when necessary.

     Another thing to consider when choosing an agent  is their availability, willingness to go to bat for you, and if they are a ‘stay involved until closing’ kind of agent, which was mentioned above.

     Some of the forms you will be signing when listing with a broker include the listing agreement itself and a property condition disclosure. Both are required by New York State. Agreements must be in writing, 

     The Property Condition Disclosure (PCD) must be filled out and available to the buyer before they sign an offer to present to the seller. Estates where the owner of record is not the selling party (executor for instance) are excluded. If you do not know some of the answers to the questions on a PCD, there is an “unknown” option to check. 

     The listing agreement will discuss how the agent you hire is getting paid, and if you will offer any compensation to an agent outside of your listing agent's firm (cooperating broker) who procures a buyer.

One way appraisers look at value for residential income properties is the Income Approach. It's a simple formula that divides the sale price of a comparable rental property by its monthly gross income, resulting in Gross Rent Multiplier (GRM). 

The comparable rental properties used to derive the GRM should be recent sales (within 6 months if possible) that are as similar as can be in location, number of units, style, condition, and functionality (bedrooms) to the property being valued.

Market rents should be used. If the comparable rental property has below market rents (long term tenants, family, etc.) they should be adjusted to market rental rates. A rental market study may be necessary if you are not familiar with rents in the area you are looking at.

Use a minimum of 3 rental comparables. Older sales should have time adjustments made to them to bring their sale prices up to speed with any increasing values. If 4 unit sold for $400,000 and makes $4000 a month in gross rental income (before expenses & taxes), it has a GRM of 100.   

                                                                 ($400,000  / $4,000 = 100)  GRM=100

After looking at the 3 to 5 resulting GRM's from the comparables, hopefully a trend will emerge that can then be applied to the Subject Property by reversing the equation. 

If we find the GRM's trending at 105, we can then take the Subject Property's market rents, let's say $4200 in this case, and multiply that by the selected GRM. This gives us a proposed value based on the Income Approach.

                                                                 105 (GRM) x $4200  = $440k Value (r).

Despite this approach, the sales comparison approach is typically a more accurate indicator of value for smaller residential income properties (2 to 4 family homes). 

I just met a local man last month who has 96 rental units, all smaller residential type properties. If nothing is renting under $1,000 a month these days, that's pretty amazing income even if you remove half for taxes, insurance, maintenance, reserves and management.

 If you are looking to invest in, or divest from income property, and need a value, or any other assistance, fell free to contact me anytime, I'm here to help.

~Matt 

Many buyers became discouraged over the past four years after covid when inventory levels of decent, affordable housing shrank. It was already a crazy enough market before covid. I remember two years before going to an open house where removing shoes was mandatory, and literally having to walk on top of a sea of shoes in the hallway to get into the house. Cars were parked all over various side streets. Can you imagine being an agent with your buyer? How do you explain that they will get the winning Wonka gold ticket, don't worry. 

After the craziness of covid, and forward almost a half a decade later, our ears are getting exhausted of hearing the words lack of inventory and housing shortage. We're not going to take it anymore. If we want a house, we shall get you one, whatever the kind of challenges the market is presenting. For starters, we can scroll down in my blog here to get tips and pointers for getting the winning bid on a multiple offer situation. Secondly, we can take a look at off-market options, as well as For Sale By Owners.

Even though it is a seller's market, and no one knows what price they will actually fetch until their house is exposed to the open market for a reasonable amount of time, people still at times prefer to sell to a neighbor, friend, a friend of a friend. Why? The reasons can be many. To avoid paying a commission and save money. To avoid the hassle of going to market, the stress of dealing with showings, offers, time going by, etcetera. (Personally, those times aren't stressful for me, I thrive in them for the sake of my client's, but for a homeowner I know it can be stressful).

So be on the look out and keep your ears open. I was just asked recently by a client to help her buy her friend's house. I had shown her several houses previously, and she was being loyal. I told her she didn't need me, and to save her money. I was very happy for her, and she was over-joyed to have found something.  I had a friend in a different market write letters to home owners in the neighborhood where he wanted to raise his family, and sure enough, someone called him from one of his letters 7 months later and sold him their house.

Why For Sale By Owners?  Won't they receive the same competition as listed properties? Yes, if they are priced competitively. But if they are not, which is common with FSBO's, why not make an offer at market price? Most buyers won't make an offer on an over-priced home, especially to an owner with no agent. They think they are already too far apart, but you never know. The FSBO might realize it's the only offer they are getting. Brining comparables also helps with this.

Estates are another avenue to explore to find off market homes. Many times executors are satisfied with receiving the appraised value of an asset, and don't need or want it to go to market.  If you see a home that looks vacant, look up the owner and write them a nice hand written note card, not a "We buy houses" post card. Express how much you love the home, and you' may be surprised. Why not knock on the door of a fixer upper and ask the owner if they ever thought about moving. (Moving, not selling. If you solve their moving problem, you help yourself).

As you can see there are options other than traditional, MLS homes. If you want to explore off-market property opportunities, give me call, and we'll come up with a strategy to get you a place to call home. If it's an investment property you want, we can look at some of the same strategies or others...LET'S DO THIS!!   

~Matt

The dust has mostly settled from the National Assoc. of Realtor’s lawsuit, although more lawsuits are being brought as of this writing, including one by a Broker/Realtor who says they are forced by the organization to be a member in order to access the MLS. As far as the most recent settlement in August over the transparency of commissions, two main items have resulted.

Listing Brokers are no longer allowed to display or advertise their co-broke (cooperating commission, or what they are willing to share to a buyer’s agent for procuring a buyer for their listing) in the MLS. The second major change is that any buyer who is being represented by an agent needs to have a signed contract in place about how and how much the buyer’s agent will be paid before stepping foot into one home with the buyer. Otherwise, it seems business as usual as deals continue to happen after the previously dreaded August 17th date, when the change took place. 

A.       There are several factors that go into making a strong offer to help you be among the top candidates for sellers who are selling a house in a hot market. The first and most obvious is, of course, price. If the home has been on the market less than one week, and you know there are going to be multiple offers, you are going to want to offer over asking price. How much over is up to you and what you either can afford or be willing to pay. Whatever you decide, your monthly payment should be so it is comfortable for you, and not making you stretch your budget. Escalation clauses are another way to offer the highest price without getting beat out. They basically allow you to bid in increments a certain amount higher than the highest bid up to a cap. some sellers and their agents do not like these, and will not accept them, for whatever reason. One main reason could be so that offers come in higher rather than only a few thousand than the highest offer.

 
     Speaking of price, although many appraisers do their best to defend the purchase price of a home, they can only work with the available data, or sold comparables in the marketplace. Why defend a purchase price you may ask? Because market value is what a ready and able buyer is willing to pay. If you think an appraisal may come in short, you can agree to cover the difference between the appraised value and your over listing price offer. This assures the seller you won't be canceling the deal or asking them to take less if the appraised value comes in lower than the contract price.

 
     Although it's not something I would recommend, buyers can waive their home inspection. This puts a seller's mind at ease that they won't be re-negotiating the price if something comes up during a home inspection. This tactic is best used by someone who is already familiar with home construction, and is also willing to tolerate some extra costs after they close, such as a radon remediation system should radon be found after closing. (Radon is an odorless, colorless gas that comes out of the ground from decaying rock, and is one of the leading causes of lung cancer in the U.S.), replacing rotted wood in a hidden sill plate, or mold in the attic.. Some lenders may require a home inspection, although many still rely on their appraiser to be their "eyes and ears" to note troubled spots in a home.

 
     Being flexible with closing dates is also a good tactic. Some sellers may need to stay longer than usual, and being patient with them can go a long way. Finally, a strong earnest deposit, or good faith deposit is recommended. It shows sellers you have "skin in the deal", and are less likely to walk away should buyer's remorse occur. It's a lot easier to walk away from $1,000 than $10,000. 

 
     The above tactics are not for the faint of heart, but during a strong seller's market, and available "for sale" housing being so scarce, some of the above techniques may be the difference to getting into a home, or still being in "shopping mode, or worse having to keep renting.

~Matt

A.     Yes. Starting August 17th, 2024, buyers will no longer be able to tour homes without signing some type of Buyer Broker Agency agreement. Currently, a buyer can see a home on Zillow, call an agent listed on the website (which is generally a paid advertisement), and make an appointment to tour a home without having any type of formal agreement in place.

     This will all go away in August. The types of agreements that will be in place are yet to be seen, and will likely vary among Brokers. Some may opt to have a one time showing agreement, and others may have a more detailed agreement attempting to secure a buyer into a longer term contract. 

     One thing that will be mandatory on all of these agreements are the way the buyer's agent is to be compensated. It may state a flat fee for showing so many houses, an hourly rate, or a straight commission when a sale is made. It will be up to the individual agency.

     Will buyer's really pony up the money to pay thousands of dollars out of pocket to a buyer's agent? Probably not. It appears as though a concession will be built into contracts that the seller will reimburse the buyer's agent their fee, so essentially, the buyer is still financing the buyer's agent's commission. 

     Some seller's may agree, and just up their price equal to the concession. It's all really up in the air at this point, and only time will tell how it all plays out. It should be noted, this only affects buyers and sellers who work with Realtors, and not all NYS licensed real estate sales agents and Brokers.

Matt

A. The short answer is, no, not always. There are other terms in a real estate contract that may be more appealing to a home seller than just price, such as the earnest deposit, financing, home inspections, and closing dates. Let’s review these real quick.

     The earnest deposit, also known as a good faith deposit, is the amount that typically accompanies the offer, or is given shortly after an offer is accepted. This is meant to reassure the seller that the buyer has "skin in the game", and won’t walk away from the deal on a whim without consequence or financial penalty. This deposit is returned to the buyer when an item that came up in the inspection can’t be negotiated, or the buyer isn’t able to obtain financing as agreed upon in the contract. If the buyer does not have a legitimate reason however, the seller may be entitled to keep the deposit if the buyer tries to back out without good cause. If two offers are basically equal, the one with a higher deposit is better since it is easier for buyers to walk away from $1,000 than $10,000. This is especially true if the buyer waives their inspections, is paying cash, and has no other recourse to get their deposit back.

     Buyer financing also plays a role. The most common types of payment for a house are FHA or conventional financing, and cash. Although cash is perceived to be preferrable, a substantially higher offer that is being financed can still be better than cash, since the seller is getting a certified bank check at closing either way. When the price is close or similar however, cash may be the better option since there is no mortgage contingency to fall through. FHA mortgages benefit the buyer since they require less money down, but they can present problems during the appraisal if the home needs certain repairs such as painting.

     Home inspections are another term to consider. If you had an offer that was $5,000 less, but the waived inspections, would you take it over the higher offer? Sometimes it can be worth it to not have the hassle of haggling over items that are found during an inspection. One way to head off this problem is to get a pre-listing home inspection.

     Finally, closing dates can play a role. If a homeowner needs to stay in their home for a longer period of time for whatever reason, an offer of less money, but allows the seller to stay in their home for an extra month might be worth it since they would be laying out that expense somewhere else on a short term rental until their next home is ready.

     One more thing worth noting is the appraisal. During times of a seller’s market, when multiple offers can bid the price upwards, making an appraisal questionable, buyers who are willing to make up the difference between the appraised amount, and the price they agreed to pay can also be an important item to consider versus a buyer who won’t agree to doing so. 

     In conclusion, any one of these items, or a combination of them all, such as waived inspections and a cash offer with a strong earnest deposit may be a better offer than one with a higher price but with FHA financing, inspections, and a weak earnest deposit. Lean on your Realtor to help you decipher offers being presented to you to find the best one that suits your needs when selling your home.

Matt