home sale Archives - Page 12 of 15 - Real Estate News and Commentary

April 2, 2015

Home seller expectations are high for 2015 market

Have you ever waited to be seated in the new trendy restaurant? You’re anticipating the menu, and thinking about what you might eat. If the wait is too long, your patience wears thin; you begin to calculate the time to the next open table. You might even scan the dining room trying to determine how much longer individual diners intend to stay at their table. If your wait is too long, you might even decide to leave. If you do get seated, you might be disappointed with an over-priced and limited choice menu.

Today’s housing market is much like the visit to that restaurant. Home buyers are motivated to jump into the market and eagerly await the next home listing; and like the restaurant menu, are often disappointed with limited choice and high prices. Additionally, low housing inventory, much like the restaurant’s long table turnover, may leave many to look for other options; some would-be home buyers are putting off their purchases and renewing leases for another year.

One of the factors that contribute to low housing inventory is the velocity of home ownership (how often a home gets sold). And indeed, home owners are staying in their homes longer before selling, according to a special study conducted by the National Association of Home Builders (nahb.org). Dr. Paul Emrath, of NAHB’s Economics and Housing Policy, provides details in a follow up study showing a decline in home owner mobility since 2007. Single family home owners stayed in their homes for an average of 12 years between 1987 and 2007. However, since 2007 the average time the home owner stayed in their home increased to 16 years. And since 2001, first time home buyers stayed in their homes 4 to 7 years less than move-up buyers.

If you’re one of those who feel that your stay in your home has been long enough, it may seem as if the market would favor a home sale. You might believe that the low inventory environment should make your sale quick, and possibly resulting in multiple offers. After all, the low number of homes listed for sale was cited for price growth by National Association of Realtors® Chief Economist Lawrence Yun in the NAR March 23^rd press release (realtor.org). And it makes sense to think that that first time home buyers should be motivated by relatively low interest rates and higher rents.

But before you set your expectations too high, consider that not all homes sell quickly – even in today’s low inventory environment. The Montgomery County average days on market during February exceeded 70 days. And even though the NAR reported a 7.5% increase in the average home prices across the country during February; the Montgomery County average sale price during February decreased 5.4% compared to the previous February and decreased 2.1% compared to January, according to RealEstate Business Intelligence (getsmartcharts.com).

If you’re putting your home on the market, don’t take home buyers for granted. Just like diners at the restaurant, home buyers have high expectations and want choices. Home buyers typically look for a combination of location, quality, and value. And just because inventory is low, buyers are not compelled to purchase your home – especially if the home is perceived to be over-priced.

For best results this spring – work with your listing agent to prepare your home, and price it according to neighborhood trends.

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.

December 4, 2014November 23, 2021

Overcoming challenges of a winter home sale

Some might say that selling a home during the winter is advantageous because of limited seller competition. Although it may be true that there is less competition, there is typically less home buyer traffic during winter months as well. Additionally, many home buyers who look during the winter months expect home sellers to be more flexible about pricing, and may subsequently make a lowball offer. However, if you’re having your home on the market during the winter, preparation and marketing can increase your success.

Ideally, you have your furnace checked and cleaned annually by a licensed HVAC professional. But if you don’t, this might be at the top of your list to ensure your home is comfortably heated to warmly greet home buyers from the cold.

Checking the condition of the home’s roof, gutters and downspouts can lessen the impact of severe weather, including heavy snow and ice. Ice dams resulting from melted and frozen snow are known to lift roof shingles and siding – which can allow water to make its way into your home. Water penetration from ice dams can damage ceilings, walls and window casings. Left unrepaired, mold and possible structural issues may develop; which is obviously an issue when selling a home.

Snow and ice removal/treatment from sidewalks and steps is essential when selling your home, so as to lessen the possibility of someone slipping and getting hurt from a fall. Additionally, downspouts should also be cleared of snow to reduce drainage blockages, which can be a source of water buildup around the home’s foundation.

Another winter concern is plumbing maintenance. Problems with pipes can arise anytime the temperature falls below the freezing point. There is a misconception that frozen water inside pipes cause pipe ruptures; however, pressure that builds up from trapped air within frozen pipes is typically the culprit. A licensed plumber can advise you on preventing freezing pipes.

If you’re selling a vacant home, you might consider winterizing it. “Winterizing” is a term that describes the draining of the plumbing system. Winterizing may reduce the risk of bursting pipes and damaging plumbing fixtures. Hiring a licensed plumber to winterize/de-winterize may decrease the probability of damage to the plumbing system from any high pressure build-up. If you are out of town, you might consider having a trusted person regularly check on the home (even if you are listed with a real estate agent). This person can take care of any house related issues that may arise while you are away.

Decluttering your home can sometimes be a challenge; and during winter months, it can be even be more challenging to keep the home clutter-free. Winter is when we spend time indoors, creating comfort areas where we may accumulate “stuff.” Organization can help limit accumulation of winter clutter, but a daily tidy up may also be necessary to be ready for any buyer viewing.

Just because it is winter does not mean you should stop actively marketing your home sale. Having a winter pricing and marketing strategy can prepare for showings and negotiating with lowball offers. Weather permitting, winter open houses are a great way to allow potential home buyers to view your home in a controlled concentrated time period. Communicate with your agent about showing times and instructions; you may need additional notice for any last minute tidying as well as changing your availability due to the holiday season.

October 24, 2014July 5, 2019

Trendy is not for home staging

Departing from the safety of natural materials and earth tones, big and bold interior design has become popular this year. Many designers have talked about 2014 as the year of using bright colors, brass and other yellow metals throughout the house. But if you’re selling your home, tread cautiously– because trendy may not be the best choices for staging your listed home.

Kelly Walters of HGTV (Color Trends: What’s New, What’s Next?; hgtv.com) talked about color use in the home, over the last ten years, being a reflection of our need for safety after 9/11 and the Great Recession. However, this is the year for change, and it’s reflected in the colors we choose for our interiors. A palette of gray hues is replacing the use of browns as the favorite neutral color; while reds, pinks, and violets are trending in popularity.

Using brass throughout the house has been the buzz during 2014. Kate Watson-Smyth reported the popularity of brass (Why brass is back as the new must-have metal for home décor; Financial Times, January 24, 2014; ft.com) as being a trend moving away from shine towards warmer tones. The use of brass and similar metals has also expanded from stylish bathroom finishes and hardware to fixtures as well as furniture.

Remember wallpaper? It’s back! Realtor® Magazine’s Barbara Ballinger wrote about how wallpaper has made a comeback. Relegated to accents, wallpaper is once again acceptable as wall covers (Wallpaper: Back in the Game; Realtor® Magazine, October 2014; realtormag.realtor.org). The new generation of wallpapers are eco-friendly and easier to use; inks are typically water based, while many papers are designed as “peel and stick” to be easily removed and reused.

Kitchens are important to many of us, and what could be better for the home chef than their own hydroponic garden. On her blog The Entertaining House, Jessica Ryan (jessicagordonryan.com) describes the Chef’s Garden Wall hydroponic system, “Fresh is the new green.” Because some kitchen hydroponic systems are low maintenance, you don’t necessarily have to be a gardener to have fresh greens at your finger tips all year.

Although trendy interior design may seem modern and stylish, it may not be the best choices when selling your home. Melissa Tracey wrote in her Home Trends Blog (5 Design Trends You May Want to Avoid in Staging; August 11, 2014; blogs.realtor.org), “Staging in trendy fabrics, colors, and finishes may offer up buyers a feeling that the home is up-to-date and move-in-ready. But getting too trendy can also backfire, particularly if it’s too personalized.”

And about those interior design trends I listed above? Tracey says to “steer clear.” Although wallpaper may be a tempting and easy way to brighten up a room, she says to stick with paint because wallpaper may interfere with a buyers’ vision of living in the room. And when painting, she says that trendy colors may be “too bold” for buyers; sellers should stick with neutral colors, using bolder colors as accents (such as pillows, rugs, and lamps). And although many designers are going all in on brass, it’s best to use it sparingly as accents when staging your home. The trend toward doorless kitchen cabinets is to be avoided, because buyers will undoubtedly ask “Where are the doors?” And finally, Tracey points out that the highly popular Tuscan and French Provincial themes are giving way to transitional and contemporary styles.

By Dan Krell
©2014

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September 12, 2014November 23, 2021

Getting home buyers into your listing – sellers and agents take note

Some economists have discussed how consumers are increasingly “shopping” rather than buying. And this is evident in the housing market, where home buyers have become overly discerning about their purchases. After what seemed to be a brief seller’s market, we find ourselves slipping back into a buyer’s market; and an old dilemma is reemerging: how are you going to get more buyer traffic and more offers on your home?

If your home has been on the market for while, check with your agent to review feedback from those who visited your home. Typical responses focus on price, home condition, and how the home shows. If you’re about to list your home, have some neighbors and friends tour the home (as if they were home buyers) to provide an alternate perspective of your home’s selling points and shortcomings.

Pricing your home correctly is critical to selling in a reasonable time frame. Your agent should keep you up to date with neighborhood sales activity, so you can remain competitive with other relevant listings. Recent neighborhood sales trends (1-3-6 months) can indicate where your price range should fall, as well as understanding the types of homes that are selling.

One of the main objections you may have heard from home buyers, is that your home “needs work,” which has a number of meanings. Of course, it may mean your home does need updating and/or repairing; in which case you should discuss with your agent about the possibility of making updates/repairs, and/or adjusting the price to reflect any needed updates/repairs. Before you decide to go all out on a renovation, consider making updates that are equivalent to your neighborhood and price range; over spending may not significantly increase your home value. If your home is updated and shows well, another meaning of “needing work” comes from the buyer wanting a turn-key home; and your updates/renovations do match their tastes and preferences.

Another issue to consider is that although your home may be updated and clean, you just may have too much stuff! Lots of furniture, wall hangings, and other stuff can make large rooms feel cramped and small, as well as give a busy and unsettling vibe. If this sounds like your home, consider removing items that can distract and detract from your home’s true elegance and style.

If your home is not getting many showings, another factor to address (independent of price, condition and clutter) is how your home is marketed. If you haven’t done so, look at your MLS listing; are you satisfied with the pictures, and remarks? Keep in mind that about 96% of home buyers search online and make decisions based on what they see and read. Home sellers, like you, are savvy and know that solely hanging a sign and posting a MLS listing is no longer acceptable to market a home. Ask your agent to update you on active marketing efforts, as well as other resources that may be used to market your home, including: local and global networks of agents and buyers; as well as using the internet and SEO (search engine optimization) to get buyers interested in your home.

If you’re home has been on the market for a while, you might consider addressing any of these issues to boost home buyer activity. If you’re considering a sale in the near future; have a plan of action before you list, so your sale does not languish.

July 25, 2013July 1, 2019

When is best time to sell a home

Buyers aren’t the only ones looking for a deal. Home sellers are also looking for a good deal – which means they want to sell their home for the most money. As it seemed as if the housing market had strong sales this year, some sellers are still trying to decide the best time to sell. But unfortunately, timing the market may not be as easy as it seems.

Some say that spring is the best time of year to list and sell a home, while others believe that summer is better. Old time real estate agents will tell you about a time when there was a traditional selling season, which basically started in March and ran through June. In recent history, it seems as if the boom/bust market from 2005-2008 rewrote those rules. During the “go-go” market, the spring selling season couldn’t start early enough; home buyers made their New Year’s resolutions and shook off the winter fog in early January to begin their home search. For several years, it seemed as if home buyers started their real estate searching earlier each year to stake their claims on real estate before other buyers got wind of the listing.

However, once the bubble busted, home buyer activity significantly slowed, those who wanted to buy a home became increasingly methodical about their purchase as well as starting their search later in the year. It seemed as if the best time to list and sell shifted from the spring time to summer months.

Since the downturn of the housing market, sales activity peaked in the summer months. June has been a consistent contender for year high sale totals – until this year. The July 22^nd news release from the National Association of Realtors® (realtor.org) indicated that June sales “slipped” about 1.9% from May. Granted, June’s sales are significantly higher than June of 2012, but the slowdown may just be a fluke or an indication of something else.

Maybe the combination of increased inventory (NAR reported that housing inventory was slightly elevated from May to about a 5.2 month supply) along with rising mortgage rates (Freddie Mac’s June national average commitment rate for a 30-year fixed rate mortgage rose to 4.07%) is making home buyers pause.

And surely home prices are making buyers have second thoughts; bargain hunters are having difficulty finding bargains. June’s national median existing home sale price increased 13.5% compared to last June. Distressed home sales, foreclosures and short sales that typically sell at lower prices, accounted for 15% of June’s figures (compared to last June’s 26%) and are at the lowest levels since 2008. And although it may sound like great news, the double-digit jumps in the average home sale price may be a statistical artifact due to declining distressed home sales.

If you’re waiting to list your home for sale this year, you may have mistimed this year’s market.

Research has demonstrated that attempting to time the market may not always yield the best results – timing the market is much easier in hind sight. Market timing appears to be much more than looking at selling activity cycles. You should rely on the expertise of your real estate professional for neighborhood sales data and trends to assist you in deciding the price and the timing of listing and selling your home.

This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws.