home sale Archives - Page 9 of 14 - Real Estate News and Commentary

April 21, 2016November 23, 2021

Coping with today’s market

It’s that time of year again; the real estate market is getting hot along with the temperature. And that’s about the only thing most are able to predict about this year’s real estate market. Since the Great Recession, early forecasts about home buying and selling trends have typically missed the mark; the trends have varied, sometimes significantly, from year to year. Notwithstanding a very active season, many will be in for a surprise; some will be pleased about their home sale, while others not so much. And if you are selling a home, I’ve provided some tips to help you cope with today’s market:

Home buyers in today’s market

The most important point to remember this year: many home buyers are looking to buy a home, but not necessarily yours. The notion that your home appeals to all home buyers is false. If your home isn’t selling as fast as you thought it would, consider stepping back for a moment to re-evaluate your home and marketing plan.

Most home buyers are looking for a “turn-key” home and won’t settle for just anything on the market. Additionally, most are not willing to spend time and money updating a home they just purchased. Know your home before marketing it and consider making repairs if your home has considerable deferred maintenance.

Prepare your home for today’s market

The next item to remember this year, is that no matter how well your home shows: be prepared for a less than complimentary home inspection. Because there are a number of systems and many components to your home; chances are that there are items that need attention, repairing, and/or replacement – which the home inspector will cheerfully point out. Home inspectors will visually inspect your home, probing structural components when necessary; a detailed report indicates their observations. Most home inspectors are not experts in all aspects of home construction; and commonly recommend other professionals to examine items more closely.

As a home seller, you should understand that buyers in today’s market are under pressure about the investment they are undertaking; and are willing to walk away based on the home inspection findings. Sometimes, it’s not what – but how it’s said that will rattle buyers. Regardless, an uncomplimentary report does not have to blow up the deal. Be prepared for extra rounds of negotiating after the home inspection. Every transaction is different, and your agent should provide guidance on what’s reasonable and appropriate.

A final thought: don’t get greedy, but don’t leave money on the table either. Although inventory remains an issue in a number of areas, don’t feel compelled to over price your home based on the lack of homes for sale. However, don’t be complacent with the “average” home sale price of the neighborhood either. When comparing recent neighborhood sales, you should make pricing adjustments (plus and minus) depending on differences in your home’s age, amenities, size and other factors.

A word of caution: There is a growing trend in the reliance on automated valuations by real estate agents. AVM (automated valuation models) are helpful, but not always accurate. These reports are based on public information about your home and may not include correct information. If your agent recommends a sale price based an automated valuation, you should review the report attentively. If the report confidence level is low to medium, be prepared to carefully review the report and comparables, making adjustments as needed.

Original located at https://dankrell.com/blog/2016/04/21/home-sale-tips-on-coping-with-todays-market/

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Copyright © Dan Krell

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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.

March 31, 2016September 17, 2019

Buyers and sellers – Mentally prepare to be in real estate market

Realtors® are guilty of romanticizing, if not glorifying, the idea of buying and selling a home. And it’s probably true for many, that initial thoughts of buying or selling a home (and everything that goes along with it) are sanguine. And yet, shortly after they are faced with details of the move, many are hit with the reality that the process is full of potential pitfalls and setbacks. Buying and selling a home can be a confusing endeavor, that can become overwhelming if you’re not mentally prepared.

Getting through the process of buying and selling requires organization and planning to seek the best outcome. As a home buyer you organize before viewing homes by having a mortgage approval in hand, as well as determining a price range and area in which you are looking. As a home seller you have a plan in place before the home is on the market; which includes a pricing and marketing plan, as well as having your home in its best possible condition so as to give the best impression.

Even though the process of buying or selling a home is straightforward (after all it’s not rocket science), being prepared for various stages can help you through potential issues. If you’re a first time buyer or seller, having a checklist helps you be aware of where you are in the process. Even if you’ve bought or sold a home before, you should be aware of changes to the process that have been made in the last eight years.

You should also be aware that every transaction is different; each transaction has a different set of personalities, conditions, and issues. You no doubt have heard your relatives’, friends’ or coworkers’ account of their buying or selling experience. But chances are that they may not remember the snags they endured. Reactions among buyers and sellers, as well as their real estate agents, vary depending on their personalities and life circumstances. So, your experience may be similar to others’; however, be prepared that it could also be very different.

Additionally, many never realize how many individuals are involved in getting their transaction to settlement. Besides the buyer, seller and real estate agents, there is a lender, a title company, and a home inspector, (among others); each increasing the number by a factor of their employees, and increasing the opportunity for Murphy’s Law to interrupt your smooth settlement.

Although the process of buying or selling a home appears to be task oriented, there is also an emotional component. Did you know that having a major change in living conditions and taking on a mortgage are rated in the Holmes and Rahe Stress Inventory? This acknowledges that buying and selling a home is an emotional investment that could impact your emotional wellbeing (positively and negatively). Chances are that at some point you may feel the added pressure of your sale/purchase.

Mental preparation for your home purchase or sale may include moderating expectations and anticipating how you may cope with various circumstances that may arise. Mental preparation can help maintain a feeling of control over your transaction. It can be helpful to work with an agent who can address your worries and fears about the transaction through listening and empathy. Most of all, hire an experienced real estate agent, who not only has the ability to problem solve and work through problems, but will help you organize and prepare.

by Dan Krell
Copyright © 2016

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March 4, 2016November 23, 2021

Decluttering for a home sale and mental health

Spring is around the corner, and for many it is the time to get a home ready for sale. Decluttering is a key component of preparing a home sale; while it is the core of “spring cleaning” for the rest of us.

Besides being the beginning of the path to selling your home, researcher and writer Deane Alban stated that decluttering is also the “gateway to taking better care of other aspects of life.” She asserted that the human brain is “wired to respond positively to order;” and there are health benefits to clutter-free spaces; which promotes feeling “calm and energized” (Declutter Your Life for Less Stress, Better Mental Health; bebrainfit.com).

When it comes to clutter, we are not the same. There are degrees to the amount and types of clutter we collect. And for many, getting motivated to declutter is a challenge; severe clutter collections could be considered hoarding by some. Dr. Robert London, a psychiatrist specializing in behavior modification, wrote about his professional contemplation of the relationship between clutter, hoarding and obsessive compulsive personality disorder. After consulting with a Professional Organizer, he concluded that many can benefit from their much needed service of guidance in “letting go” and getting organized (Decluttering — Is it Therapy?; Organization professionals perform a valuable and, yes, therapeutic service; psychologytoday.com; November 5, 2010.).

Besides the psychological aspects that make us hold-on to “stuff,” one roadblock to decluttering is a common misconception that the goal is to have an immaculate home; which can make some feel anxious and/or overwhelmed (especially if the home sale is due to a negative life event). Instead, an underlying principle to decluttering is about creating an organized and spacious feel to a room. Another misconception is that you throw out everything you don’t need or want in your home; however, you have control over what items get thrown out, recycled, donated, or kept in storage.

One strategy to encourage your decluttering efforts is to plan. Rather than trying to complete the job in one weekend, try decluttering one room (or even one part of a room) per day; and for some, it may be as little as removing one or two items per day.

When going through each room, decide which items are necessities and which items need to go. You will undoubtedly come across many items that you decide are not necessary to keep out for everyone to see, yet they are personal or sentimental – these items can be stored. The items you decide that you no longer need or want can be donated, disposed of, or you might even decide to have a yard sale!

Of course, we are all busy; and finding time to declutter can be another obstacle to overcome. To help relieve the pressure, consider delegating responsibilities to family members. Consulting with professionals to guide your planning could save time as well. Some professionals even recommend a “decluttering party” as a way to ease the time crunch while making it fun.

Decluttering a home may feel as if it an exhausting task, but it doesn’t have to be; especially if you have a realistic plan. If you need help with your decluttering, you can check with your Realtor® (if you are planning a home sale) and/or you can consult with a Professional Organizer. The National Association of Professional Organizers (napo.net) maintains a national directory of Professional Organizers.

By Dan Krell
Copyright © 2016

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January 22, 2016December 13, 2022

Selling your home is always about the price

Pricing a home for a sale is not always easy. There is an abundance of empirical research that has confirmed the many variables that affect sales price. Some influences are manageable and some are not. The top factors to consider when pricing your home to sell include location, condition, features, and timing.

Your home’s physical location is one of the top factors that will affect its sale price. Although home prices vary from neighborhood to neighborhood, your home’s location within the neighborhood could also impact the sale price. Homes located on commuter routes typically sell for less because of the traffic and noise. Even homes located just off of the thoroughfare can be impacted by the perception of traffic and noise; the sale price could be lower than a similar home situated further away from the main road.

A home can sell for more when located close to neighborhood amenities; however, the price could drop if perceived too close. Neil Metz’s research (Effect of Distance to Schooling on Home Prices. The Review of Regional Studies 45.2 (2015):151-171.) indicated that homes located close to schools tend to sell for more. However, the opposite was found with homes within 1,000 feet from schools; the home sale price decreased as the distance from the school closed in from 1,000 feet (probably due to congestion and noise). This effect is typically true for other neighborhood amenities such as shopping areas.

Repairing and upgrading your home prior to listing can increase the sale price. In contrast, deferred maintenance can not only deter home buyers – it could attract low offers; especially if the home has been on the market for a lengthy period. Many home buyers are looking for a “turn-key” home, where they don’t have to be concerned about immediate maintenance; while some are willing to put in the time and effort to personalize a home. If you’re making updates to your home, consider that the quality and installation of upgrades can impacts price as well; cheap fixtures and sloppy workmanship can have a similar affect as deferred maintenance.

Your home’s amenities can also impact the sale price. For example, features such as a finished basement or deck can be appealing and add value. Even green amenities can impact sales price. Research conducted by Cadena and Thomson (An Empirical Assessment of the Value of Green in Residential Real Estate. The Appraisal Journal 83.1 (Winter 2015): 32-40.) concluded that homes that were designated “green” increased sale price by 1%, while certified green homes increased sale price about 2%; however, energy efficient features increased sales price by about 6%!

Finally, your sales price can be affected by the timing of the sale. Miller, Sah, Sklarz, and Pampulov (Is there seasonality in home prices-evidence from CBSAs. Journal of Housing Research, 22(1) (2013), 1-15) conducted a comprehensive study of home sales that occurred in 138 Core Based Statistical Areas (CBSAs are geographic population centers set by the Office of Management and Budget for use by Federal agencies in collecting, and publishing statistics) from February 2000 to April 2011. They concluded that monthly price changes can vary through the year; and homes that sell during summer months (April through September) typically sell for more than homes that sell during the winter (October through March). However, they point out that the seasonality effect could be due to weather; there is less price variance in areas with less temperature variation.

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December 16, 2015November 23, 2021

Selling a home with when you have pets

How to sell a home fast — From FLRealtorMagazine

According to the American Veterinary Medical Association (avma.org), 36.5% of households own a dog and 30.4% of households own a cat, and many households have other types of pets. Of course having a dog or cat can fill many needs, such as companionship, security, socializing, and even fitness. However, selling a home where a pet lives can be tricky.

Pets often leave telltale signs they live in a home. Many people associate strong odors or dander on the floor with a home where a dog or cat lives. However, many pet owners keep clean homes; and odor or dander may not be the giveaway. Home buyers notice many things when wandering a home, and can associate water and food bowls, pet beds, cat litter boxes, and toys with pets. The psychological association could trigger an allergic reaction, even in the cleanest of homes.

Although an increasing number of households include dogs and cats, not all home buyers are keen on pets. And for some it’s a health matter, as many have sensitivities and allergies and such that they ask if a dog or cat lives in the home when scheduling a showing. And it’s not just allergies that can put off a home buyer: pets left inside the home (roaming or crated), pets left in the yard (free roaming or tied up), and pet odors are three of the top four home buyer turn offs, as ranked by Realtor®Mag’s Melissa Dittmann Tracey (Top 10 Worst Home-Showing Offenses; realtormag.realtor.org, October 2012).

Ask someone who is honest with you if your home has an odor; you may be surprised with the answer. It’s common to become used to odors in your home. Don’t make the common mistake of placing heavily scented air fresheners throughout the home, as it only adds another layer of odor; which, by the way, can also trigger a reaction in those with odor sensitivities. Instead, try to identify if the odor has a source and remove it if possible (it may not even be pet related). Consider using natural solutions such as baking soda to absorb light odors; however strong odors may require commercial cleaning.

And about those home buyers who visit your home…don’t assume they are pet friendly. Pet behavior can be misinterpreted. Even if you believe your pets are friendly and well behaved, buyers who are not familiar with dogs or cats can misperceive them as being aggressive and decide to leave. If the buyer does not know how to approach your pet, and they bring small children along, the dynamics can create an agitated pet.

Limit distractions and keep your pets and buyers at ease. Consider putting away your pet’s water bowl, toys, and other signs of your pet. If you have a cat, make sure the litter box is clean. Locking your pet in a room is not recommended by experts, as it can cause distractions and upset your pet. If you have a dog, take them for a walk while the buyer is visiting. At the very least, arrange for someone who is familiar with your pets to be home to manage them.

Selling a home where pets live can be challenging. Although you may think that the best scenario is to sell to another pet owner; nonetheless you should strategize with your agent about your home for sale and managing your pets during the listing.

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