home seller tips Archives - Page 3 of 5 - Real Estate News and Commentary

May 12, 2017

Real estate auction home buying and selling

As the housing market continues to grow, buying and selling homes through the real estate auction is becoming more popular. Contrary to popular belief, real estate auctions are not just for distressed properties. Being part of a real estate auction can be exciting, but it’s not for everyone. There are pros and cons for both the home buyer and seller.

A real estate auction is traditionally a “live” auction performed at a designated place where the bidders and auctioneer meet to conduct the auction. You must be present, or have a proxy present, to make your bid. You must register to bid at the auction, usually presenting proof of funds for your deposit. The pace of the live auction can be very quick, so you have to pay close attention to the action.

Another form of real estate auction that has blossomed out of the foreclosure crisis, is the online auction. The online real estate auction allows many homes to be auctioned simultaneously. The atmosphere and pace of an online auction is different from a live auction. Of course, buyers can make their bid from virtually anywhere, and the bidding can take place over days or weeks.

If you want to sell your home via real estate auction, the benefits include: decreasing your homes time on market; you know when the home will sell; the home sells “as-is;” home buyer contingencies are typically few or none. The National Association of Realtors (nar.realtor) auction information describes homes that are good prospects (What Properties are Suited for Auction?) , which include: homes with a lot of equity; unique homes; vacant homes; and homes that are difficult to appraise.

However, real estate auctions are not for all sellers. The downside to the auction is that your home may not sell, especially if you place a reserve (seller reserves the right to accept or reject highest bid) on the auction. There are also costs that typically include the auctioneer’s commission and advertising costs, which could be due even if the home does not sell.

If you’re a home buyer, a real estate auction offers benefits for you too. Real estate auctions offer another avenue to purchase homes other than those listed in the MLS. This can be attractive especially when there is limited inventory of homes for sale. Buyers guide the sale price through their bidding. Unless it’s a blind bid auction (where bids are not disclosed to other bidders), you can decide if you want to increase your bid based on others’ bids.

If you want to buy a home at auction, do your due diligence. Read the terms of sale, there may be a minimum bid, minimum deposit, and even a buyer’s premium (which can be as high as 5 percent of sale price) and other fees that may be due at closing. Check the auction schedule frequently because the date and time may change, or the auction can be cancelled. Understand the type of auction you’re bidding in, because you may not get the home even if you’re the highest bidder (especially online auctions). Inspecting the property may be a challenge as you may have limited access.

Hire a Realtor to help you buy a home at a real estate auction

Hire a Realtor to assist and guide you through the details of buying a home via real estate auction. Your agent can help you get the terms of sale and any due diligence material the auctioneer provides. Additionally, they can also provide comps for the property to help you decide on your bidding strategy. If you have the winning bid, your agent can help you with the details of getting you to settlement by assisting with contracts, financing, and other aspects of the sale.

From the National Association of Realtors auction section:

BENEFITS TO THE SELLER:
-Buyers come prepared to buy
-Quick disposal reduces long-term carrying costs, including taxes & maintenance
-Assurance that property will be sold at true market value
-Exposes the property to a large number of pre-qualified prospects
-Accelerates the sale
-Creates competition among buyers—auction price can exceed the price of a negotiated sale
-Requires potential buyers to pre-qualify for financing
-The seller knows exactly when the property will sell
-Eliminates numerous and unscheduled showings
-Takes the seller out of the negotiation process
-Ensures an aggressive marketing program that increases interest and visibility

BENEFITS TO THE BUYER:

Smart investments are made as properties are usually purchased at fair market value through competitive bidding
-The buyer knows the seller is committed to sell
-In multi-property auctions the buyer sees many offerings in the same place at the same time
-Buyers determine the purchase price
-Auctions eliminate long negotiation periods
-Auctions reduce time to purchase property
-Purchasing and closing dates are known
-Buyers know they are competing fairly and on the same terms as all other buyers
-Buyers receive comprehensive information on property via due diligence packet

If you like this post, do not copy; instead please:
link to the article,
like it at facebook
or re-tweet.

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.

April 28, 2017July 14, 2019

Gonzo home sales and prices

Everyone seems to be excited about this week’s Case-Shiller home price numbers reported for February. Even the title of the April 25^th press release sounded a little giddy: “The S&P Corelogic Case-Shiller National Home Price NSA Index Sets Fourth Consecutive All-Time High” (spindices.com). Yes, the Case-Shiller 10-city and 20-city composite indices are close to the 2007 level. But before you become intoxicated by reports of gonzo home sales and prices and run off to sell your home, here’s more to the story.

Gonzo home sales and prices

Gonzo home sales and prices depend on the market. According to the recent Case-Shiller release, Seattle, Portland, and Dallas topped the charts with annual index gains of 12.2 percent, 9.7 percent, and 8.8 percent respectively. Not surprisingly, Seattle and Portland have been the hottest real estate markets over the past year. Tampa’s and Cleveland’s housing markets are at the opposite end of the spectrum with decreases of -0.5 percent, -0.3 percent during February; while Miami’s home price index was unchanged. Washington DC reported an annual gain of 4.1 percent, with a 0.2% gain reported in February.

David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices stated:

“There are still relatively few existing homes listed for sale and the small 3.8 month supply is supporting the recent price increases. Housing affordability has declined since 2012 as the pressure of higher prices has been a larger factor than stable to lower mortgage rates.
Housing’s strength and home building are important contributors to the economic recovery. Housing starts bottomed in March 2009 and, with a few bumps, have advanced over the last eight years. New home construction is now close to a normal pace of about 1.2 million units annually, of which around 800,000 are single family homes. Most housing rebounds following a recession only last for a year or so. The notable exception was the boom that set the stage for the bubble. Housing starts bottomed in 1991, drove through the 2000-2001 recession, and peaked in 2005 after a 14-year run.”

Gonzo home sales and prices are dependent on local real estate. It’s true, housing inventory is lacking. At a time when homes should be coming to market for the spring season, the Greater Capital Area Association of Realtors Montgomery County single family statistics for March 2017 indicated that there were -1.8 percent less new listings compared to the same time last year. And the total number of active homes for sale are -16.4 percent less than the same time last year. Although June is usually the peak time for home sales and prices in our area, home sales increased 17.9 percent month over month, and is 11.7 percent higher than the same time last year; while average home sale prices increased less than 1 percent (gcaar.com)!

Holy shades of 2005, Batman!

Housing stats sound eerily like those before the housing bubble crash. But this market is different in many respects. Consider that housing speculation is not as prevalent as it was at that time; homes are not being flipped in a matter of days in most areas. And home buyers are more sophisticated and savvy than they were in 2005; home buyers are more demanding, as well as sensitive to home condition and price.

Yes, it’s true that house values are increasing. Yes, home sales are breaking records. But not all homes sell. You should realize that that home sale stats includes data of homes that sell. Homes that don’t sell are not included in the numbers of closings, nor are they included in home sale prices.

Homes that don’t sell tend to be overpriced for the home’s condition, or neighborhood. Sometimes, the physical location of the house is not ideal; for example, situated next to train tracks. If you’re selling your home this year, don’t get greedy. Get a professional opinion on pricing your home correctly; over priced homes tend to not sell quickly, or not at all.

Pricing your home may not be as easy as you think. Empirical research has confirmed that there are many variables that affect sales price. Factors that impact home sale price include the home’s location, condition, amenities, and market timing.

If you want to sell your home quickly and capitalize on home sale trends: consider repairing deferred maintenance issues, making updates, and don’t take home buyers for granted. When making repairs and updates, don’t go for the cheapest quote because it will likely show. Also, make sure your contractors are licensed.

Home buyers are just as savvy as you, so any attempt to deceive will backfire and hurt your sale. Focus on broadening your home’s appeal. Consider making your home turnkey, since most home buyers are looking for a home they can move right in and without making immediate repairs and updates.

For a guide on a successful home sale, take a look at “The magic of 4 to sell a home“

By Dan Krell
Copyright© 2017

Original post at https://dankrell.com/blog/2017/04/28/gonzo-home-sales-prices/

If you like this post, do not copy; instead please:
link to the article,
like it at facebook
or re-tweet.

Protected by Copyscape Web Plagiarism Detector

April 21, 2017December 13, 2022

Curb appeal can boost home sale price

If you want to increase the sale price of your home this spring, you will no doubt focus on the interior. But how does the home’s exterior look? You’d be surprised about the amount of necessary cleaning, decluttering and repairing around the exterior of your home. But don’t skimp on the exterior home preparations before your sale – research conclusively shows that improving your home’s curb appeal can increase the sale price by as much as 8 percent!

An empirical study conducted by Chen, Evans-Cowley, Rutherford, and Stanley (An Empirical Analysis of Effect of Housing Curb Appeal on Sales Price of Newer Houses. International Research Journal of Applied Finance. 2013, Vol. 4 No 11, p1407-1419) was the first to demonstrate the relationship between a home’s sale price and curb appeal. The authors also discussed how home buyers’ preferences in a home’s exterior influence the home’s sale price. Besides curb appeal, they suggest that the home’s architectural elements could also be important in the final sale price. The idea that today’s modern designs are more desirable, and likewise costs more money, is only transitory; such that today’s designs could become trite and tired in twenty years.

The study used a seven-point “attractiveness” scale to determine how respondents viewed the attractiveness of a home’s exterior. They concluded that there is a relationship between a home’s exterior attractiveness and the home’s sale price. In fact, they reported that a one-point increase in their scale corresponded to an 8 percent increase in the home’s value!

Home buyers make assumptions about your home’s interior based on the appearance of the exterior. An unattractive exterior can repel home buyers before they even see the beautiful and updated interior. Attract home buyers and boost your home sale price by focusing on cleaning, repairing, and “finishing” your home’s exterior.

Basic landscaping can make a huge difference in your home’s attractiveness. Having too many plants, or letting them grow too much can make the home’s exterior appear crowded and unkempt. Make sure your lawn is full but manicured throughout your listing. Properly trimmed trees not only look tidy, but allow home buyers to see your home from the street. Appropriately placed and trimmed shrubs and flower beds can accent the home’s architectural design.

Check your home’s siding. Replace and repair any missing or broken siding pieces. Freshen up siding by power cleaning, or painting. Even if your home has artificial materials as siding, inspect window frames and fascia boards; these areas are often neglected and may need urgent repair.

How does the deck look? Unless you maintain the deck regularly, chances are it may seem dull and tired, and may need to be re-treated. Even if your deck is made of artificial decking, check the railings. Hire a licensed contractor to repair and secure the deck as necessary.

How about the sidewalks and patio? The sidewalk and patio can be easily cleaned by power washing. Cracks in the sidewalk and patio are not only unsightly, but can be a trip hazard. Cracks are typically caused by rain and water runoff, but can be repaired. Consider also sealing the sidewalk and patio to prevent further water damage.

Finally, consider finishing the exterior to make your home more appealing and cordial. Much like staging the home’s interior, you can use similar principles to increase the exterior’s attractiveness; such as placing appropriate chair(s) and potted plant(s) on the porch, deck or patio.

By Dan Krell
Copyright© 2017

If you like this post, do not copy; instead please:
link to the article,
like it at facebook
or re-tweet.

April 6, 2017July 14, 2019

Listing agent secrets

Listing agent secrets.

There are a number of topics that your listing agent probably won’t discuss with you, or can’t properly explain. Here are several listing agent secrets that you need to know:

Your agent won’t sell your home

listing agent secrets — Agent secrets (infographic from nar.realtor)

Your home will likely sell to a home buyer who is represented by a buyer agent. This notion is supported the 2016 National Association of REALTORS® Profile of Home Buyers and Sellers (nar.realtor), which reported that 88 percent of home buyers used an agent to buy a home. The remaining 12 percent of home buyers purchased through other means, including with the help of the listing agent, or even a FSBO. Although your listing agent may claim to have sold the most homes in the neighborhood, the truth may actually be that they are only facilitators. The listing agent secret is that the buyer agent who actually “sells” the home is labelled the “selling agent” by the industry.

Buyers are not finding homes in print

Print advertising no longer is the means of selling a home. More information from the 2016 National Association of REALTORS® Profile of Home Buyers and Sellers indicate that having a nice spread in a magazine, or posting open houses in the local paper is probably a sales ploy to get your listing. The Profile reported that home buyers reported how they found their home as follows (nar.realtor):

Internet: 51%
Real estate agent: 34%
Yard sign/open house sign: 8%
Friend, relative or neighbor: 4%
Home builder or their agent: 2%
Directly from sellers/Knew the sellers: 1%
Print newspaper advertisement: 1%

Bigger is not better

Another one of your listing agent secrets is that the larger your agent’s brokerage or team, and having a high number of homes actively listed may actually be detrimental to your home sale! An empirical study by Shiawee X. Yang and Abdullah Yavaş (Bigger is Not Better: Brokerage and Time on the Market; The Journal of Real Estate Research; 1995, Vol. 10, No. 1, pp. 23-33) reported the following results:

The amount of agent’s commission is not indicative of your home’s time on market;
The size of the listing firm does not affect your home’s time on market;
Homes listed and sold by the same firm (i.e., dual agency) does not reduce time on market;
The more active listings your agent has, the longer your home may sit on the market because they do not devote to the time to your sale.

Yang and Yavaş suggest that the larger the listing firm, the more incentive to “cheat” days on market by circulating new listings within the firm before entering it in the MLS, which also increases the chances of a dual agency situation. “Private placement,” or pocket listings can have similar dual agency results.

Dual agency could cost you

One of the biggest listing agent secrets is dual agency. Chances are that your listing agent doesn’t totally understand dual agency, and therefor may not be able to explain how it affects your sale and potentially your sale price. The Maryland Real Estate Commission’s “Understanding Whom Real Estate Agents Represent” disclosure states:

“The possibility of dual agency arises when the buyer’s agent and the seller’s agent both work for the same real estate company…The real estate broker or the broker’s designee, is called the “dual agent.” Dual agents do not act exclusively in the interests of either the seller or buyer, and therefore cannot give undivided loyalty to either party. There may be a conflict of interest because the interests of the seller and buyer may be different or adverse.”

One of the listing agent secrets is that dual agency may not be beneficial to you, and can even lower your home sale price. There are a number of empirical studies that indicate conflicts of interest and other issues that arise out of dual agency. But a study by Joachim Zietz and Bobby Newsome (Agency Representation and the Sale Price of Houses; Journal of Real Estate Research; 2002, Vol 24, No 2 pp. 165-91) found that a home’s sale price drops about 3.7 percent when the listing and buyer agents are from the same firm. They stated:

“…the fact that buyers may obtain a lower price by engaging a buyer’s agent from the same ﬁrm as the listing agent raises the issue of whether or not the listing ﬁrm is shortchanging the seller. The evidence appears to suggest that the agency relationship between seller and listing agent may be compromised.”

By Dan Krell
Copyright © 2017

Original published at https://dankrell.com/blog/2017/04/06/listing-agent-secrets/

If you like this post, do not copy; instead please:
link to the article,
like it at facebook
or re-tweet.

February 25, 2017June 3, 2020

Protect your valuables when selling your home

Preparing your home sale is more than just deep cleaning, decluttering, and minor repairs. Prepare and plan how to protect your valuables during the sale.

I often write about preparing your home for a sale. Of course, that preparation is to make your home sell quicker and get the best price. However, preparing your home is more than just deep cleaning, decluttering, and minor repairs. Preparing and planning how to protect your valuables will not only keep the prying eyes of nosey home buyers focused on your home’s spaces – it can also thwart would-be criminals.

Homes for sale are prime targets for thieves, and your home is not an exemption. Don’t make it easy for them. It may sound obvious – use common sense. However, you’d be surprised how many home sellers don’t lock up their valuables. In my many years of selling homes, I have seen how home sellers can be careless by leaving credit cards, cash, medications, and financial statements on counters and desks. There was one instance where the owner left their gun cabinet open!

And theft doesn’t only occur during open houses. Your possessions can go missing at any time. Anyone can have “sticky fingers,” even rogue real estate agents (agents have been arrested for stealing from a listed home). A Washington State agent was caught stealing prescription medications last year. Another agent faced criminal charges for stealing jewelry.

Additionally, criminals take the opportunity of an open house (and even virtual tours) to stake out your home; only to strike at a later time. So think about laying out your expensive china just to stage your home.

Yes, thieves are looking for anything of value in your home. Besides jewelry and cash, they will take anything they think they can personally use or sell. Medications are a commodity to thieves; and anything with personal identification can be used in ID theft.

I am often asked, “Should I install surveillance cameras?” A few years ago, a home with surveillance cameras was not typical. Seeing the cameras often turned off home buyers because they felt “creeped out” and didn’t like the idea of being watched. However, in today’s cyber-world, where surveillance cameras are nearly everywhere, surveillance cameras have become increasingly commonplace. Before you go out and install cameras in your home, you need to understand the legal implications by consulting with an attorney or privacy legal expert.

Don’t just put away your jewelry and other items of importance, lock them up! If you’re not one of the millions of home owners who has a safe or strongbox, there are other options such as storing items in other locations (safe deposit boxes; someone else’s home; and even a rented storage unit).

Burglar alarms are a mixed blessing. Besides deterring crime, real estate agents often set them off; which can be a nuisance and possibly result in a fine for you (more info on false alarms and fines can be obtained from the Montgomery County Police False Alarm Reduction Section).

If you haven’t already deployed crime deterrents in and around your home, consider using interior and exterior lighting. Exterior lights can help identify night time visitors, as well as possibly deterring would-be thieves. Consider using timers or motion sensing lights. Motion sensing lights will activate the light when people approach your home.

Would-be thieves casing your home look for easy entry points. Lock up your ladders and secure your shed so as not giving criminals the tools to get inside.

And although you may be told that lockboxes are fool proof, only allowing agents in your home – it’s the user that is the weak link. Careless agents sometimes leave doors unlocked or open, or do not fully close the lockbox, leaving the key free to be used by any passerby.

Your agent can be part of your protection plan. Consider having your agent accompany all showings. Additionally, have more than one person during an open house. This can not only help protect your valuables, but the direct agent contact may be influential in your home sale.

For more information on protecting your valuables, check out Montgomery County Police’s brochure “Home Security, Safety Tips to Keep Your Home and Valuables Safe.”

Original published at https://dankrell.com/blog/2017/02/25/protect-your-valuables-home-sale/

If you like this post, do not copy; instead please:
link to the article,
like it at facebook
or re-tweet.