Sellers Area
Know Why You are Selling
If you know exactly why you are selling then it is easier for you to follow the right plan of action for getting what you want.
If you are a seller who needs to close a sale as quickly as possible, then you should know that getting the highest price possible is not one of your priorities. It does not mean that you won’t or cannot get the highest price, but it means that the price is not the deciding factor.
A buyer who can give you a quick closing time will appeal much more to you than a buyer who can offer you more money but the negotiation and closing time drag on.
It’s always good to know how low you will go, in terms of selling price. This will help to eliminate some of the offers that you find simply offensive or ridiculous. Even though you should consider all offers seriously and take into consideration the terms of each offer, sometimes, if you know the bottom line and are strict about it, you can save yourself time.
Once you know what your limits and reasons are, discuss them with your broker so that they can help you set your goals realistically. If you decide to list your home on your own, make sure you do research on the current market, and you get the proper advice you need in terms of legal issues, etc. The key is to be realistic and to know what your goals are so they can be met.
Questions About This Property
Plan of Action
Analyze why you are selling – If you understand your motives, you will be able to better negotiate and to get what it is that you want, whether it be a quick sale, high price, or somewhere in the middle.
Prepare your home for the buyer – Maximize the strengths of your property and fix up its weaknesses. You want the buyer to walk away from your home with a lasting good impression.
Find a good real estate broker that understands your needs – Make sure that your broker is loyal to you, and can negotiate to help you achieve your goals. In addition, they should be assertive and honest with both you and the buyer.
Be prepared for negotiation – Learn and understand your buyer’s situation; what are their motives? Can you demand a big deposit from them? Try to lock in the buyer so that the deal goes through.
Negotiate for the best price and the best terms – Learn how to counteroffer to get maximum value from every offer.
Make sure the contract is accurate and complete – Be honest with your disclosures; you do not want to lose the deal because you were lying or diminishing your home’s defects. Insist the buyers get a professional inspection. This will protect both you and the buyer.
Finding the Right Broker
Not all brokers work the same way. The most important attribute of an broker is that he/she is well connected to the real estate industry. He/she should know the market and provide information on past sales, current listings, his or her marketing plan, and at least 4 solid references. In addition, you also want to look for a broker that is honest, assertive, and one that best understands your needs.
Try to go with a local broker. They can better serve your needs because they should be more familiar with the local market conditions, local prices, and what’s hot or not in your community.
Considering Offers
When reading an offer, keep in mind that you are out to get the best price AND the best terms for you. If you focus solely on the price, you may overlook terms that could be favorable to you as a buyer.
Some terms that may work in your favor:
higher-than-market-interest in a second mortgage for your home
the buyer will pay for most or all of the closing costs
the buyer will take care of any repairs
quick close – the buyer is pre-approved , ready to close in a timeframe that best suits you
all-cash deal
When reading through offers, remember to look at the whole package. Take the time that you need to assess what is being offered and if it meets your needs.
SEARCH FOR HOMES
THE FED’S BALANCING ACT
THE FED’S BALANCING ACT: HOUSING SLOWDOWN, INFLATION FEARS, AND RIPPLE EFFECTS IN REAL ESTATE
INTRODUCTION: WHY THIS MATTERS
The housing market is once again at the center of the economic conversation. According to Reuters (Aug 20, 2025) and The Wall Street Journal, the Federal Reserve is walking a tightrope between lowering interest rates to help housing or holding them steady to avoid fueling inflation.
This is not an abstract debate. Already this week, ripple effects have shaken major players tied to housing:
Home Depot reported sales down 4% as homeowners cut back on renovations.
James Hardie Industries saw its stock plunge nearly 30%—its sharpest decline in 50 years—after warning that demand for repairs and new construction in North America is weakening.
So what does this mean for the housing market—and for everyday buyers, sellers, and investors?
THE FED’S ROLE IN HOUSING
The Federal Reserve sets short-term interest rates, which directly influence mortgage rates. When the Fed raises rates, borrowing becomes more expensive. When it cuts rates, borrowing becomes cheaper.
Lower rates = cheaper mortgages, more buyers entering the market, more refinancing, and often more activity in homebuilding.
Higher rates = more expensive mortgages, fewer buyers, slower sales, and builders pulling back.
But the Fed’s job isn’t just about housing—it’s about balancing the entire U.S. economy. And right now, that means juggling two competing forces:
Housing slowdown. Builder confidence has fallen, permits are down, and affordability remains at crisis levels.
AI boom. Investment dollars are flooding into artificial intelligence and tech, creating fears that if rates fall too quickly, the economy could overheat.
This balancing act is what’s keeping rates stuck in the “mid-sixes,” frustrating buyers, sellers, and builders alike.
RIPPLE EFFECT #1: HOME DEPOT
On August 19, 2025, Home Depot announced its summer sales were down 4%. That’s a big deal because Home Depot isn’t just a hardware store—it’s a window into the renovation economy.
When homeowners feel confident, they remodel kitchens, redo bathrooms, add decks, and invest in upgrades. When they’re worried—or when mortgage rates are eating up their budgets—they hold back.
That slowdown shows up in Home Depot’s numbers, and it’s a direct reflection of today’s affordability crisis.
RIPPLE EFFECT #2: JAMES HARDIE INDUSTRIES
Just one day later, Yahoo Finance reported (Aug 20, 2025) that James Hardie Industries—the world’s largest producer of fiber cement siding and a major supplier of building materials—warned about weakening U.S. demand for both repairs and new construction.
The result? Its stock crashed nearly 30%, the sharpest decline since 1973.
This is a red flag because James Hardie supplies builders across North America. When a company like this says demand is slipping, it means builders are either delaying projects or scaling back expectations.
HOW THESE STORIES CONNECT
These two stories—Home Depot’s sales dip and James Hardie’s stock plunge—aren’t random. They’re part of the same chain reaction:
High mortgage rates → buyers hesitate → sellers hold back → builders slow down.
Slower building and fewer renovations → less demand at Home Depot and Lowe’s → weaker orders for James Hardie and other suppliers.
Investor reaction → stocks drop → confidence in housing weakens further.
And looming over all of this is the Fed’s decision. Cut rates, and housing could see relief—but inflation may reignite. Hold rates steady, and housing pain deepens.
WHAT THIS MEANS FOR BUYERS
If you’re a buyer, today’s housing market feels stuck. Rates are still in the mid-sixes, and prices remain high. You might be asking: Is it better to wait, or jump in now?
Here’s what matters:
Inventory is slowly rising, but not enough to tip the market fully into a buyer’s favor.
Builders are offering the highest incentives in five years, including rate buydowns, upgraded features, and even price cuts.
If rates drop, competition could surge. Waiting might mean you face more bidding wars later.
WHAT THIS MEANS FOR SELLERS
For sellers, the challenge is standing out in a cautious market. Buyers want move-in ready homes because they can’t afford big renovations on top of high mortgage payments.
That means:
Homes that are upgraded and priced right still sell quickly.
Homes needing work may linger, or sell only with concessions.
Even “perfect” homes sometimes require seller incentives to move.
WHAT THIS MEANS FOR INVESTORS
For investors, the signals are mixed. On one hand, retail and supplier stocks tied to housing (like Home Depot and James Hardie) are feeling the pain. On the other, demand for rental housing remains strong, and markets outside high-cost cities are still seeing activity.
Investors should watch the Fed closely: a shift in rates could create new opportunities—but also new risks if inflation surges again.
LOCAL ANGLE: LOS ANGELES & BURBANK
Here in the Los Angeles area, the ripple effects are visible:
New apartment buildings are popping up, but rents are still sky-high, leaving affordability unresolved.
Many sellers are hesitant to list, worried they won’t get their price.
Buyers are frustrated—either priced out or facing homes that need upgrades they can’t afford.
The Fed’s decisions in the coming months will directly impact whether L.A. stays frozen—or starts moving again.
CONCLUSION: THE BIG QUESTION
The Fed is at a crossroads. Lower rates could spark housing activity but risk reigniting inflation. Higher rates keep inflation in check but deepen the housing slowdown.
Meanwhile, the ripple effects are undeniable: from Home Depot to James Hardie, to local builders and everyday homeowners.
So what do you think?
👉 Should the Fed cut rates to give housing a boost?
👉 Or keep rates high to protect the broader economy?
Referenced Articles & Sources
Fed’s Dilemma: Housing vs AI
Source: Reuters
Headline: "Fed’s dilemma between AI and housing"
Summary: The Fed is torn between supporting the cooling housing market and not overheating the economy amid surging AI investment.
Home Depot Sales Slow
Source: Reuters
Headline: Home Depot sales down 4% (as part of housing slowdown coverage)
Summary: Indicates weakening homeowner renovation activity.
Yahoo Finance+11Barron's+11Axios+11 (same broad report)
James Hardie Stock Plunges
Source: Yahoo Finance
Headline: "James Hardie shares sink 30%"
Summary: A major building materials company sees its stock fall sharply amid weakening US housing demand.
Housing Starts in July
Source: Reuters
Headline: "U.S. housing starts tick higher in July, led by apartment construction"
Summary: Indicates multifamily construction is up, but overall permits are down.
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For Sale By Owner – A Good Idea?
FSBO (pronounced fizz-bo), or For Sale By Owner, is a way of selling your home without the use of a professional real estate broker. The idea behind FSBO is that by selling your home yourself, you save the approximate 6% that would be the agents’ commission.
6% may not sound like a lot, but it can add up, especially on more expensive homes. But before you run off and decide to sell your home FSBO, you must remember that to get savings like that, there must be a cost. So what’s the catch? Selling FSBO is hard. A lot harder.
Only about 10% of sellers that decide to do FSBO are successful at it. And not all of them end up saving themselves money. FSBO sellers often end up accepting a lower price for their home than they would with a broker.
There are of course other issues as well. Can you afford to make selling your home your full time job? Because for a lot of FSBO sellers, that’s exactly what it is. Do you have the time and capital to spend on the marketing, advertising, inspections, paperwork, phone calls, showings, and problems that come up when any home is sold?
Selling with a professional broker also has other advantages. A broker can get your home listed on the MLS (Multiple Listing Service) and other popular websites where not only homebuyers but also other brokers can easily find it. Professional real estate broker also have an extensive network
that allows them to more easily find a buyer.
So before you decide to sell your home yourself, thoughtfully consider just how much time and effort you can spare for selling your home, as well as how important it is that your home sell sooner rather than later.
Setting the Price
The price is the first thing buyers notice about your property. If you set your price too high, then the chance of alienating buyers is higher. You want your house to be taken seriously, and the asking price reflects how serious you are about selling your home.
Several factors will contribute to your final decision. First, you should compare your house to others that are in the market. If you use a broker, he/she will provide you with a CMA (Comparative Market Analysis). The CMA will reflect the following:
houses in your price range and area that were sold within the last half-year
asking and selling prices of houses
current inventory of houses on the market
features of each house on the market
From the CMA, you will learn the difference between the asking price and selling price for all homes sold, the condition of the market, and other houses comparable to yours.
Also, try to find out what types of houses are selling and see if it applies to your area. Buyers follow trends, and these trends can help you set your price.
Always be realistic. Understand and set your price to reflect the current market situation.
Getting the Highest Price in the Shortest Time
In order to get the highest price in the shortest time, you need to know how to market your home. The better you market your home, the more offers you will get. And the more offers you get, the more choices you have to get the price and terms you want.
The most important factor of marketing your home is pricing it right. Your price should be adjusted to reflect the market and your property’s worth. The key is to get as many people as possible checking out your fairly priced property. If your property is not priced fairly, there are
no buyers because your price is set too high.
Another important factor is the condition of your home. Make sure that your home looks ready to be sold. Fix any defects (peeling or faded paint, cracks, stains, etc.) Condition alone can sometimes prompt fast buying decisions. Not only should you fix any defects, but consider
upgrading your home by making major repairs and cosmetic improvements before selling. A nice looking home triggers the emotional response that can lead to a financial response.
Learn how to negotiate the best terms for all parties involved. Terms are another factor that may be adjusted to attract buyers. If you insist on getting your asking price, think of what you can offer to the buyers. For example, improvements you’ve made or even offering seller financing at
a lower than market interest rate on a portion of the sale price. Convince them why they should be paying the price you have set.
Lastly, get the buzz out about your home. List your house with a hot broker that ensures your house is listed on the MLS and on the Internet. On your own, get the word out. It should always be visible to passersby that your house is for sale, whether it is through signs, local advertisements or you telling friends, family, and acquaintances.
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