Home sale gimmicks?

Over the past fifteen or so years I’ve written a few articles about home sale gimmicks. And not surprisingly, it’s another year with a new real estate gimmick. In the past I’ve explained and debunked the effects on a home sale of various ploys such as under-pricing, creating buzz, throwing the block party open house, etc, etc, etc. And yet it just doesn’t seem to end. Instead of being honest and straight forward with a solid common-sense strategy, some real estate agents are just good at devising ploys to entice unsuspecting home sellers to list with them.

home sale gimmicks

This year’s shiny item is a nationwide “auction” site that is marketed to sell a home fast for more money. It is used in tandem with the MLS. This is how it works…

The home is listed as usual in the MLS with descriptions, photos and all the accoutrements. The home is simultaneously listed on the “auction” site. The MLS listing has the “list price.” Buyers and agents are redirected to the “auction” site for price and terms that are acceptable to the home seller. This gimmick strategy is sold as encouraging multiple offers on the home.  Agents make their offers on the site. The seller chooses an offer and goes under contract.

This sounds like the old tried and true MLS home sale listing with extra steps!

I get it though. The old tried and true home sales model is boring. Post the listing in the MLS with your price and terms. Post terrific photos. Maybe even add a floorplan and a video. Possibly have an open house. And this year (2023), with the average days on market being seven, select one of the multiple offers you’ve received and ratify the contract.

Do gimmicks get your attention? Do you utter some oohs and aahs? But does it really make sense?

In my experience, most home sellers want to sell their home quick and for top dollar. Research into some home sale gimmicks have concluded that it could actually harm your sale by either getting a lower net price, longer time on market, or worse – a lower net price and a long time on market!

For a solid result, stick with the tried-and-true home sale experience. Don’t rely on gimmicks that promise activity on your listing, higher sale prices, etc. Work with an experienced licensed real estate agent who can present a comprehensive and coherent home sale marketing plan.

By Dan Krell
Copyright © 2023

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

Home Selling during the Holidays

Home sales have been in a slump for several months. But the lackluster volume of homes being sold isn’t what most people are making of it. Of course, rising interest rates have curtailed some home buyers’ plans, but the historically low supply of homes for sale continues to drive the market.  If you’re home selling during the holidays, consider that supply will continue to dwindle as many homes will be removed from market.

Home Selling during the Holidays
Home Sale Prices

What does that mean if you’re a motivated home seller? Although the housing market normally slows down during the holiday season, it’s not entirely closed. Motivated home buyers are always looking for the perfect home. And with limited home seller competition, you could potentially do well with your sale.  The only obstacle to your sale would be severe winter weather.

Things to consider when selling a home during the holiday season:

If you’re selling your primary residence, consider how and when your home will be available for home buyer visits. Be proactive with your communication to your listing agent so there is no confusion about showing times. The idiom “strike while the iron is hot” holds true. If you make your home available to show, stick to the schedule. Buyers will get frustrated and turned off when their scheduled appointment is canceled at the last minute.

If you’re selling a vacant home, it will be easy to show. However, you should plan to visit the home regularly for cleaning and maintenance. Maintenance is especially important during the colder winter weather.

If your home is already on the market, maintaining a show quality home is still a must. However, if your home will be listed for sale during the holiday season, you have to take care in preparing your home for buyer visits during colder weather. Decluttering, repairs, and staging are the main staples of home preparation.

If you ask real estate agents about holiday decorations, you’ll get a variety of advice. Keep in mind how home buyers will see your home. If you decorate your home, keep it tasteful and uncluttered.

Keep in mind that selling a home means having strangers traipsing through your home. Plan ahead with a showing schedule if you’re having holiday celebrations and hosting family and other guests in your home.

Home Selling during the Holidays is not for everyone. If the holiday season is a hectic, then adding the stress of selling your home is probably not a good idea. Consult with your real estate agent about home selling during the holidays and if it is an appropriate choice for you.

By Dan Krell
Copyright © 2022

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

Home selling 2023

Memory is flawed and I believe that people forgot what the housing market was like prior to 2020. People were told that the housing market of 2019 was in a new normal, and, yes, signs were pointing to a balanced market. Then 2020 shocked the housing market, and everyone took a short break during the health crisis. After a short market shock, home buyers came back in droves and further stressed the already limited home sale inventory. And for almost two years, a crazy and sometimes irrational sellers’ market was the “new normal.” What will be the new normal for home selling 2023?

home selling 2023

Besides quick home sales, home sellers have also become accustomed to double-digit home sale price growth.  However, steep interest rate increases have seemingly cooled home buyer motivation. Home sales dropped to their lowest levels in a decade. The question that everyone seems to be trying to answer is how will the current conditions play out.

Supply and demand. The one aspect, in retrospect, that has driven the housing market since 2013 is home sale inventory. Home sale inventory never completely bounced back to equilibrium levels since then, and sparked the several sellers’ market mini-cycles in the past decade.

Chief economist for the National Association of Realtors, Lawrence Yun, agrees, saying in a recent NAR new release “For most parts of the country, home prices are holding steady since available inventory is extremely low. Some places are experiencing price gains, while some places, most notably in California, are seeing prices pull back.”

Yun commented that the sharp mortgage rate spike since January has definitely impacted the volume of home sales this year. However, talking about home sale inventory, he stated, “Housing inventory is about a quarter of what it was in 2008,” Yun said. “Distressed property sales are almost non-existent, at just 2%, and nowhere near the 30% mark seen during the housing crash. Short sales are almost impossible because of the significant price appreciation of the last two years.”

Yun anticipates home sales to continue to decline about 7 percent in 2023, however, national median home prices will modestly increase in the range of 1 percent.

Home selling 2023: If you’re planning a home sale in next year, make certain you have a reasonable home sale strategy. Make certain you prepare you home by decluttering and making necessary repairs. Pay close attention to neighborhood home sale trends. And don’t overprice your home when choosing a list price.

By Dan Krell
Copyright © 2022

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

Real estate agents have a role

real estate agents have a role
hire a professional

Last year, at the height of the latest sellers’ market, I talked to a friend about selling his property. He gleefully quipped “Haven’t you heard? Nobody uses a real estate agent anymore [to sell a home].” To be honest, I hear that every seller’s market…and it’s a false statement.  In fact, most home sellers hire a real estate agent to sell or buy a home. So, in response I asserted that Real estate agents have a role in the real estate transaction.

The National Association of Realtors’ 2021 Profile of Homebuyers and Sellers indicated that 90 percent of home sellers hired a real estate agent.  The reasons for hiring an agent to list your home apply in any market, and include assisting you to set the list price, to prepare the home, and to facilitate the sale process.

Setting the right sale price is important in any market. During a sellers’ market, it may be tempting to set a high sale price. But the fact is that you can still turn off home buyers with an unrealistic price.  A real-life example comes from a listing appointment I had last year.  The seller was disappointed in the price range I suggested for her home (her home was smaller than other homes in the neighborhood). She was clearly dissatisfied with what I shared and said, “In this market, all homes sell for more than the last one that sold.” This is also a false statement. In a market where homes sold on average 7 days, she wasted 30 days on the market only to sell for a price that was in the range I suggested based on comps and adjustments.

Home preparation is also a key factor in any market. Home preparation entails decluttering, staging and sometimes repairs.  Let’s face it, the better the home presents, the quicker it sells. In a seller’s market, a well-prepared home can elicit a bidding war, raising the sale price above list price. 

Hiring a real estate agent is not for everyone.  But the stats revealed by NAR’s 2021 Profile of Homebuyers and Sellers indicate that real estate agents have a role in the real estate transaction. Real estate agents are housing-market experts, recognizing and anticipating trends.  Agents can provide detailed market analyses to assist in formulating a home’s listing or sale price.

Furthermore, from the time your home is listed to the day of settlement, agents are facilitating the transaction. Starting with marketing your home, the agent will work to procure offers on your home and assist in negotiation. They will also assist in helping completing the sales contract and follow up on contingencies. They will also work alongside other professionals to ensure any bumps in the journey to settlement are worked out.

By Dan Krell
Copyright © 2022

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

Home Selling Strategy

home selling strategy
What’s a Seller’s Market?

There is an idiom that says that the “Map is not the territory.”  One interpretation is that you shouldn’t confuse theory with reality.  And in real estate, that means you shouldn’t confuse the strategy with the market cycle. And as this seller market cycle continue, some home sellers are confusing it as the implementation of a brilliant home selling strategy.

Low home sale inventory seems to be the new normal since the Great Recession.  Home owners are staying in their homes longer, and first-time home buyers are putting off buying a home to save money.  And the current market cycle highlights how pent-up home buyer demand can drive home prices.  In this market, appropriately priced homes sell fast, usually within a week.  Many times, homes will get multiple offers and sell over list price.  The truth is that current conditions are a manifestation of the market.  However, home sellers come to expect homes to sell in a week for over list price, even when the market changes.  The answer to a successful sale in any market is to create a home selling strategy. 

Regardless of the housing market conditions, you need a home selling strategy (also known as a marketing strategy) to sell your home.  The marketing strategy will determine the best way to position your home to get your home sold in an expedient way at the best price.  It’s a map that you create to get you to a successful closing. 

Your home selling strategy research should be focused on your neighborhood, as well as competing neighborhoods.  Many begin with a comparative market analysis (or CMA).  A CMA is a process of determining a potential home sale price by evaluating neighborhood sales of similar homes in style, size, and age.  In a buyer’s market, when homes are taking longer to sell, you should get a 30-60-90 day analysis to determine the trend of sale price and days on market.  In a seller’s market, the trend is usually where homes sell relatively quickly.  However, the CMA can assist in understanding pricing trends.

One of the interesting aspects of a detailed CMA is the comparisons of characteristics and features between your home and other homes that recently sold.  From the analysis you can begin to see what makes your home stand out from the others.  You may discover your home has more or less amenities than other neighborhood homes, which should be considered in your pricing strategy.

List price is everything.  Your home sale strategy hinges on pricing your home correctly.  Regardless of market conditions, if the house is prices too high it will likely take longer to sell (relative to the average time on market).  Homes that are prices correctly tend to sell faster than over priced homes.  Many home sellers trying to reap “top dollar” have made the mistake of setting the list price too high expecting a home buyer to make an offer.  The truth is that buyers are savvy and will likely skip the over priced homes.  Your strategy, no matter how clever, can’t overcome overpricing.

Preparing your home should also be part of your strategy.  Decluttering and deep cleaning is a must for all home sales.  Whether or not you live in the home, you should consider staging. “Home staging” is a term that is used to describe the process of making your home as appealing as possible to potential home buyers to sell the house quickly. This may include rearranging and/or removing furniture.  Some home sellers rent trendy furniture to replace their own items. 

By Dan Krell
Copyright © 2021

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.