FAQ FOR SELLERS
We write all the answers ourselves
ARE ON LINE EVALUATIONS RELIABLE ?
A few weeks after moving into a new property, a real estate agency offered me an online appraisal service. This is how my house, which was not quite finished, had already doubled in value! I like good news but this one was a little too good to believe!
After having had the opportunity to test other online assessment models, 9 questions arise.
1 / How do the algorithms work?
Each assessment is “confidential”; algorithms, i.e. those programs that process your data in order to give it financial value, are not explained so as not to be copied. Consequently, we do not know:
- What importance is assigned to each evaluation criterion?
- How is it decided if one criterion has more weight than another?
2 / Where do the comparison prices come from?
Is my property compared to advertised property or property that has been sold? Does the online system take into account the prices advertised on real estate advertising platforms or the prices signed at the notary? There are no published recorded prices for homes that are purchased off-plan so on what basis are the appraisals of these particular properties made?
How often are updates processed to incorporate new sales?
3 / How to trust the imputed information?
The running of the evaluation system generates many questions, but the use that the vendor makes of it generates just as many ... How to guarantee the veracity of the imputed data? At some point, does the user not have the opportunity to embellish a little their property from which they wish to generate maximum benefit?
What qualifies a property in good condition?
4 / How many prospects know how to measure accurately?
The distinction between habitable m2 and non-habitable m2 as well as the definition of measurable m2 are often poorly understood and m2 then poorly calculated. How to ensure the accuracy of the imputed m2? How to measure a terrace which offers you an “additional living space”?
5 / How to evaluate objectively the work to be done?
A great classic issue in any evaluation! How much does an owner-seller estimate for the work to be done knowing that he/she is used to his/her environment and that, by dint of seeing its defects, he/she does no longer notice them and therefore tends to minimize them.
6 / What about a decor that is not to everyone's taste?
Another great classic issue ! It is difficult for an owner-seller to accept that a buyer is not a fan of his/her interior, to which he/she places great yet often disproportionate value.
7 / Information not available / not shown?
What about data not filled in or incorrectly filled in? How do they affect the overall rating? Online systems prefer to give you an assessment at all costs rather than issuing reservations and conditions for breach.
8 / What are the expectations once the assessment has been calculated?
Difficult to make a lower counter-evaluation when the owner-seller has already received a 1st estimated sum and that it has visualised what can be achieved with it. The 2nd agent assessor therefore becomes the wrong one whatever he/she says.
9 / The valuation of a property is an important step before it is put on the market. Then what?
The establishment of a marketing strategy is just as important because it measures the potential competition that the property in question would face. Whether the property is in competition with 10 similar goods or only 1 or 2, is a game changer. The more competition your property has, the more complicated the sale can be and the more your business strategy must adapt, starting with the price. Although essential, this aspect is rarely filled in in an online assessment.
At Monde Avenir, we have tried to make precise evaluations without having to travel. Even with the photos of the property in hand, the work is difficult, the notion of volume is often distorted by photos that do not "render" correctly. And then we are not always shown all of the building.
We therefore prefer:
- To go and see for ourselves in situ,
- To use our evaluation method established from 26 criteria and from 3 different angles of perspective for an evaluation as meticulous as we are!
- To provide you with the details of our evaluations in writing so as to discuss them with you in complete transparency,
- To give you the opportunity to share them with your banks and your lawyers because we know that our evaluations are admissible with your partners.
Contact us now at firstname.lastname@example.org or +352 621 355 207 ; you will receive your written evaluation within 48 hours of our site visit.
EXCLUSIVE MANDATE VS SHARED / SIMPLE MANDATE
Exclusive mandate or shared / simple mandate: we discuss it again and yet, when it comes to residential real estate, the choice is simple ...
A real estate agent will take much more care of a transaction under an exclusive mandate. Because he does not take the risk of getting involved maybe for nothing, and because he/she will not be distracted by the actions of other agencies with which he is in competition,
he/she focuses entirely on the property and the service it provides.
- Ads are more polished, better written, better documented,
- The marketing strategy is more elaborate,
- The time granted to both parties is much more generous, the seller is informed more clearly, the prospects are better qualified,
- Negotiations with the buyer and the conclusion of the transaction go more smoothly.
First of all, since there is no competition within the framework of an exclusive mandate, the evaluation of your property is more objective. It is not biased by the agent's need to secure a commission at all costs and therefore by their need to position him/herself more advantageously than other agencies by announcing a higher but potentially less realistic selling price.
With an exclusive mandate and an estimate as close as possible to reality, your sale is therefore faster. It is also simpler: a single agent, a single person with whom to share technical data, a single interlocutor with whom to organize visits and negotiations. If the market forces you to revise the marketing strategy applied so far, the single agent can discuss it with the seller and they can quickly decide together on how the marketing campaign will evolve. In the case of a shared mandate, the seller more rarely listens to a single speech that he/she will, in any case, have difficulty imposing on the other agencies.
With an exclusive mandate, your property is better valued; by appearing through a single agency, it is offered in a single and unique way and it becomes rare. Prospects are much more sensitive to exclusive properties that are not found everywhere and on every agent’s portfolio. A property spotted far too often devalues naturally and gives potential buyers a good argument for a price negotiated downwards.
Indeed, we often overlook the image that the type of mandate sends to prospects. An exclusive mandate conveys an image of trust; a shared mandate suggests that the seller is desperate to sell very quickly, at a price negotiated downwards, that he/she is ready to take any offer from anyone and that in the end, he/she has very little respect for the work an agent can do. How can you believe that prospects will be more respectful of the work of an agent when the salesperson does not reflect this image him/herself? Prospects aren't naive, and most importantly, they don't want to be held hostage to an agent battle.
Being a professional real estate agent means respecting a code of ethics and rigorous know-how. You just need to choose the accompanying professional you will feel confident in.
To find out what we have implemented to earn your trust,
REALTOR VS ESTATE AGENT
A realtor is the American equivalent of the European estate agent.
The difference does not stop with the terminology as services also vary from one continent to the other one.
Many expatriates are used to appoint their own agent, middle person to work solely for the interests of their mandator, whether it is to sell, to buy or to rent a property. In any transaction you will find the listing agent appointed by the sellor/property owner and the one appointed by the prospect/buyer/tenant.
The 2 agents share the commission.
The legislation framing the estate agencies’ work here in Luxembourg may therefore come as a surprise :
· An estate agent can only be mandated by the vendor – in the case of a sale – or by the landlord – in the case of a rental property -.
· The buyer hunts for a property alone. So does the tenant who also pays the rental commission,
· There is only one acting estate agent for each transaction who also receives a full commission.
Does this guarantee the fairest of transaction ? Not really …
At Monde Avenir, we do restore the balance between parties by giving each of them the same degree of attention and service.
HOME STAGING : WHY AND HOW ?
The majority of people react to what they see and not what they do not see.
Non visible m3, an inadequate layout, an unpleasant smell will not only refrain your property from selling but it will help the others to sell.
Home Staging is not a decorating style, it is a tool … A tool which allows your property to be distinctive and to sell quicker at market price.
Here is the 4 R rule:
Declutter / recycle / re-allocate temporarily to storage: the time has come to get rid of what you have accumulated and that you do not need anymore. De-personalise your interior. Do no distract visitors with family portraits, personal mementos that are meaningful only to you. Play the following game: put away all clues about what you look like, what are all your hobbies, tidy up if you are not usually a tidy person. Lastly make sure that everything looks to be in the right place and that there is a place for everything.
It is the time to take on all the small repair jobs you have been putting on the long finger until now: replace blown bulbs, fixed loose electrical wires, redo shower and bath joints if necessary, trim hedges. You want to give the impression you have always taken care of the property, you need the visitors to trust that the property is generally in good working order.
Anything, which looks worn out, will look even worse in the eyes of the visitors that lack your indulgence. Repaint some walls, deep clean your spaces, your window dressings, your removable sofa covers. Power clean the outdoor spaces. Spring clean your property even though this may not be spring time.
It may be the time to remove the bulky furniture so that you can show space and volume. Too much clutter give the impression that you do not have enough space and the visitors will interpret it as the property being too small. Do not push all furniture against the walls, re-organise seating in a circle, place all dining chairs around the table. Do not block neither the openings nor the traffic paths. Let the natural light come in and make sure every room looks lived in.
To see a few examples, consult our dedicated page on our website: https://www.mondeavenir.lu/home-staging
WHAT DOCUMENTS TO PROVIDE WHEN PLACING A PROPERTY ON THE FOR SALE MARKET ?
Name & first name
Date & Place of birth
Certified copy of I.D. or passport
Social security number
Physical Identification Form
Description of the property
Minutes of General Assemblies (if applicable)
Details of charges
Original Acte de Vente
WHAT IS A CADASTRAL EXTRACT ?
The “Extrait Cadastral” shows the measurements of the property and, if the property is located in an apartment block, the percentage given to each of the private units (for the purpose of voting and allocating the communal charges).
The measurements indicated on this document are the official ones and they are the ones to mention in the selling advertisements and documents.
It also indicates the details of the owners.
WHAT IS AN ENERGY PASS ?
The Energy Pass is an energy report established upon the survey of the property by a certified assessor. A valid Pass is necessary to put a property on the market and it is valid 10 years. It rates the efficiency of the heating system and that of the thermal insulation. It also advises on the possible improvements, which could be considered in order to improve on the existing efficiency of the Energy Pass