Home selling strategy Archives - Page 13 of 14 - Real Estate News and Commentary

November 4, 2009October 5, 2019

Get proactive to sell your home!

Proactive home selling

The 2008 edition of the National Association of Realtors “Profile of Home Buyers and Sellers” indicates that a home’s condition and environmental impact are important to many home buyers. In a market where home buyers are hard to come by, your home may stand out from the crowd if you can demonstrate that your home is solid and energy efficient.

Some believe home buying to be an emotional process that is rationalized by making decisions on perceived value. Conducting pre-sale inspections, such as a home inspection and a home energy audit, can not only provide home buyers with the rationale for choosing your home, the physical data may provide home buyers an additional boost of confidence that can make their decision process easier.

NAR surveys indicated that home buyers are more apt to compromise on the price than the condition of a home (NAR Profile of Home Buyers and Sellers 2008). Be prepared by conducting a pre-sale home inspection. The inspection can provide information on the general condition of the home by examining the age and functionality of the home’s major systems including (but not limited to) roof and gutters, heating and cooling, plumbing, electric, and possibly point out any visible structural defects that may need attention. Some home sellers may also decide to conduct additional environmental tests (such as radon and lead) to possibly alleviate further concerns.

As energy prices continue to rise, home buyers are increasingly aware of home energy efficiency. NAR surveys indicated that 43% of home buyers consider a home’s heating and cooling costs important factors in their home search (NAR Profile of Home Buyers and Sellers 2008). You may allay home buyer fears of purchasing an inefficient home by conducting a home energy audit. Besides revealing the energy efficiency of your home’s furnace, A/C, and major appliances, conducting a home energy audit will also provide information on the home’s efficiency of maintaining temperature. Professional home energy auditors use state of the art equipment (such as infrared cameras and blower doors) to identify often hard to detect air loss or penetration from walls, windows, and doors.

Although some home sellers have the financial resources to make major renovations to their homes to attract home buyers, most do not. The pre-sale inspections can provide you with useful information that may assist you in preparing your home prior to listing by allowing you prioritize the items that need attention. The pre-sale inspections can identify the strong and weak points of your home; you can be prepared for making repairs and/or updates of any unsatisfactory conditions that are identified. However, if you are selling your home “as-is,” the inspections can help you price your home by accounting for any necessary repairs or updates.

By proactively attending to necessary repairs, you can limit the amount of negotiating a home buyer may initiate from their home inspections; or avoid having a home buyer walk away from the deal due to an unsatisfactory home inspection. However, you must remember that although you may be enticing a home buyer by providing pre-sale inspection results, you are still required to disclose any known latent defects in your home (defects that would not reasonably be expected to be observed by a careful visual inspection and pose a health or safety threat).

This column is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of October 26, 2009. Copyright © 2009 Dan Krell

July 23, 2009October 5, 2019

What do FSBOs know that we don’t?

by Dan Krell © 2009
www.DanKrell.com

What do FSBOs know that we don’t?

Whether I drive by a “for sale by owner” sign or I come across an ad while perusing the Sunday real estate section, I often think that FSBOs (For Sale By Owner) are brave for going it alone. Is there something FSBOs know that others don’t?

Being a successful FSBO means taking your home sale seriously. Would you hire a part time real estate agent who is not genuine in marketing and showing your home? Probably not. Then why go half-way when doing it yourself? Having a serious attitude means doing the research, making a plan, and following through.

Research will help you avoid one of the biggest mistakes FSBOs make – pricing the home. If your home is not priced correctly, you’ll not only price yourself out of the market; but you’ll also waste valuable time. Therefore, using accurate and up to date neighborhood information is critical.

Online home sale resources, such as Zillow, Trulia, and tax records are helpful, however you may find that the information is not always accurate and does not tell the whole story. You can get valuable and up to date neighborhood sales information from local Realtors. Although not all Realtors may be open to helping you sell FSBO, some will! Don’t be afraid to explain that you are planning to sell FSBO and you would like a CMA for your home. Also, ask for their opinion and rationale for a list price.

Selling a home is much more than putting a sign in the yard. Having a marketing plan, even a basic one, can make a big difference in attracting home buyers. Write down the classified ads you plan to use, as well as where and when you will place them. Online ads should also be planned in advance; you will find that articulating an honest and exciting description of your home isn’t always easy.

Having an open house depends on your comfort level of having strangers traipsing through your home. When you consult a Realtor for a CMA, you might ask about open house information. You might want to consult with local police about open house safety.

Don’t forget the benefits of selling FSBO; well, there’s one major benefit- not paying a Realtor commission. But according to the 2003 National Association of Realtors Profile of Buyers and Sellers, FSBO sales net less for sellers compared to homes sold by agents. The profile reported that FSBO sales averaged $145,000 while real estate agent sales averaged $175,000 – giving the seller an average net of $19,500 more on the agent sale after a 6% commission (realtor.org).

Selling your home FSBO can have successful results; a FSBO sale can be a rewarding experience if well planned and handled properly. But before you decide to take on the sale on your own, do yourself a favor and visit a few FSBOs to get feedback about their experiences. You might find out that listing and selling real estate is not as easy as it seems; “they” will not come just because there is an ad in the paper or an internet listing; “they” will not buy at any price; “they” will not buy in any condition; “they” are not all qualified; and “they” will not always show up to settlement.

May 17, 2009October 5, 2019

Summer-ize your home to attract buyers

by Dan Krell © 2009.

www.DanKrell.com

You might think that the weather is warming up more than the real estate market, but lo-and-behold the spring market is experiencing increased activity! If you’re planning to put your home on the market, or if it is already listed for sale, you probably know that preparing your home to sell means de-cluttering and fixing those little items you’ve been putting off for some time. No matter how much preparation you do, don’t forget to summerize to make your home more appealing to home buyers.

Summerizing your home means paying attention to the items that are noticeable during the warmer months of the year; such as the curb appeal and the interior comfort. There is nothing worse than making excuses during your open house about the unkempt lawn or a broken air conditioning unit. Neglecting these items can be a deterrent to buyers or (worse yet) even make your home appear to buyers as if you are selling a distressed property.

There’s more to curb appeal than just keeping your lawn mowed! Basic curb appeal considerations include the home’s landscaping, grading, siding, deck, driveway and sidewalks.

Simple landscaping can make your lawn appear well manicured; but imagine what a professionally landscaped yard can do! Trees properly trimmed away from the home will allow your home to be seen from the street as well as not be “crowded” by overhanging limbs. Neatly trimmed and properly placed shrubs and flower beds will not only look beautiful, it will enhance your home’s façade!

Heavy summer storms can wreak havoc on poorly graded yards, which can allow water to seep into your basement. Ensure that the grading around your home diverts water away from the foundation.

Clean and properly painted siding (including facia boards and window trim) is often overlooked by home owners. If the entire exterior does not need painting, look for the areas that appear to be peeling or bare. Facia boards and window trim are often made of untreated wood and typically need more attention (even if your siding is made of artificial materials). If your home has algae or mold growing on the siding, consider having the siding power washed; power washing can not only clean the siding, but may return the new home “glow.”

Don’t let a faded or splintered deck turn away home buyers; consider adding it your power wash list. Power washing your deck and patio can give them a fresh look. You might consider staining or sealing your deck and patio to give the new home owner the possibility of a few years of care free use.

Cracked sidewalks and driveway are not only unsightly, they can also be a trip hazard. Repairing and/or sealing the walkways and driveway can not only increase safety – it can add to the appearance of your home. A newly sealed asphalt driveway can add contrast to accent the exterior of your home.

Let’s face it, air conditioning that does not keep your home cool is a buyer deterrent- especially in the hot summer months. If you don’t service your air conditioning system on a regular basis, you should consider doing so before listing your home.

Summerizing your home will not only attract home buyers, it shows pride of ownership providing incentive for home buyers bring you an offer.

This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of April 27, 2009. Copyright © 2009 Dan Krell

May 8, 2009August 5, 2019

Alternatives to a Traditional Home Sale

Home Selling Alternatives

Frustrated home sellers are searching for creative solutions to selling their homes in the face of one of the most difficult housing markets in recent memory. While some home sellers reluctantly take their homes off the market, others look to the creative methods that real estate investors have used for many years.

Two creative options that some sellers are considering are “seller financing” and the “lease with the option to purchase.” Seller financing is when the buyer signs a mortgage note that is held by the seller (rather than a bank). The buyer receives deed and title like a typical home purchase, but makes their payments directly to the seller. Seller financing is not for all home sellers as all mortgages and liens on the home must be paid off prior to closing.

Lease with the option to purchase (also known as a lease-purchase) is when the buyer rents the home and agrees to close on the sale at a future predetermined time (usually one or two years when they can qualify for a mortgage from a traditional lender). Besides forking over a large deposit (usually non-refundable), the buyer pays a monthly rent that includes an additional amount that is applied to the purchase.

Some benefits when offering seller financing and a lease-purchase include attracting a greater number of home buyers, selling in a shorter time and the potential to make more money on your sale. Qualifying for a mortgage these days is much more difficult (even for some buyers who have good income and credit); however by offering an alternative to bank qualifying, you’ll attract a larger number of home buyers! Logic follows that the greater number of serious home buyers interested in your home, the quicker your sale.

You can potentially make more money on your sale by selling for a higher amount. If there is seller financing, you don’t have to worry if the lender’s underwriter will limit the sale to the appraised value- because you are the lender. However with a lease purchase, your buyer will most likely be limited to a lender’s appraisal when they are ready to settle on the home.

Seller financing and lease-options are very risky. Besides the downside of being a landlord, your buyer could default on their payments to you. It is important that your mortgage note or lease-purchase should specify your rights in eviction and foreclosure. Eviction and foreclosure can sometimes be drawn-out and expensive. Additionally, you may have to spend money to fix up the home again after your home is vacated; you can potentially lose money while your home is vacant while you look for new buyers.

It is highly recommended to hire an attorney to assist you in these transactions because of the many legal and financial ramifications. The concepts of these transactions may be easy to understand, however writing contract clauses to ensure you’re covered in all circumstances is another thing entirely; there are many variables to consider. Many home sellers have been burned from improperly prepared contracts.

Some have used creative techniques in selling their homes with great results; but before you decide to sell using seller financing or a lease-purchase, consult an attorney. The seller financing and lease-option transactions are very risky and should not be undertaken without legal counsel.

By Dan Krell
© 2009

This article is not intended to provide nor should it be relied upon for legal and financial advice.

August 13, 2008November 23, 2021

De-mystifying Home Staging

by Dan Krell © 2008
Google+

Home staging is often thought of as a fancy name for decorating or cleaning a home prior to it being sold. In fact, “home staging” is a term that is used to describe the process of preparing your home for sale that goes beyond normal maintenance. The purpose for staging your home is to make your home as appealing as possible to potential home buyers so your home will sell quickly. Surveys conducted by the Accredited Staging Professionals a (StagedHomes.com) and Homegain (Homegain.com) indicate that staged homes sell faster than non-staged homes.

Although home staging has been around for over thirty years, it only gained wide acceptance this last decade. Many home staging techniques are derived from interior design; home stagers often sketch rooms to analyze the best use of space.

Staging your home’s exterior is just as important as staging the interior because a home buyer’s mood is set by their first impressions. You should consider the condition of your home’s landscape, façade, roof and gutters. Unkempt flower beds and cracked walkways can quickly give the impression that the home is in disarray. Additionally, missing shingles and misaligned gutters give the impression that the home has been poorly maintained.

The basics of home staging include decluttering, rearranging, and sometimes redecorating. Home sellers often have tunnel vision about their homes. Removing the clutter of your daily life from your home is the cornerstone to home staging. Decluttering goes beyond cleaning and storing unused items. Because home buyers can get distracted by the home seller’s lifestyle when viewing a home, home stagers talk about “depersonalizing” a home.

You may have spent years making your home personal to your lifestyle, however now that you are selling it you need to depersonalize it. Depersonalization means to neutralize your home by removing as much of your lifestyle as possible from the home so anyone can feel as if this could be their home. Personal items, such as family photos, can focus the home buyer’s attention on your lifestyle and away from the home.

Additionally, the layout of each room needs to be considered so it feels bright and roomy. Properly placed furniture can assist home buyers to feel at ease and “at home.” Too much furniture in any room tends to make a large room look small and feel cramped. Additionally, misplaced furniture can make a room feel awkward and unsettling.

Let’s face it, sometimes a room needs a makeover. However, redecorating does not have to be an expensive affair. Sometimes having an extra lamp or even painting a wall can make the difference between shabby and chic. If your furniture is out of date or in poor condition, furniture rentals can be a short term solution.

If the home you are selling is vacant, staging each room tastefully can facilitate your sale. An Appraisal Institute study indicated that a decorated home sells faster than an empty home.

Although many real estate agents have been certified in home staging, professional home stagers usually have a background in interior design. The International Association of Home Staging Professionals (IAHSP.com) is a source of information about home staging, including tips on staging your home and finding a home staging professional.