home seller Archives - Page 17 of 31 - Real Estate News and Commentary

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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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 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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December 11, 2015August 17, 2019

Short sale marketing strategy

According to the Corelogic Insights blog, the volume of distressed home sales is declining. Consider that during the peak of distressed sales, which occurred in January 2009, the volume of distressed sales nationally comprised 32.4% of total home sales. Compare those figures to Corelogic’s December 2^nd report, which indicated that nationwide distressed sales volume accounted for about 10% of all home sales during September 2015. However, distressed sales volume varies from state to state; Maryland recorded the highest volume of distressed sales (20.7%) among all states during September.

Distressed home sales include bank owned properties (REO) and short sales. It’s important to note that prior to the housing bust in 2007, nationwide REO sales were below 6.2% of all sales. September nationwide REO’s accounted for 6.4% of all sales; while short sales accounted for 3.3% of all sales, and have maintained below the 4% level for over a year.

The plateau of short sales may be due the many home owners who remain underwater. In a June 11^th press release, Zillow announced that the slow pace of increasing home prices are leaving many home owners underwater. The nationwide rate of negative equity among mortgaged home owners was 15.4% during the first quarter of 2015 (which is down from 18.8% a year ago); the negative equity rate in the D.C. metro area was reported to be 17.2%. For about half of all underwater home owners, home prices would need to increase 20% or more for them to break even (zillow.com/research).

If you are underwater on your mortgage, check with your lender, they may have some options to help you. However, if you are planning a move, a short sale may also be an option. Simply put, a short sale is asking your lender to take a lower payoff and “forgive” the difference.

If you decide to go through the short sale process, you should know that your sale will be subject to your lender’s approval. The lender will decide if they will accept the buyer’s offer based on the home’s “fair market value.” Many lenders use broker price opinions to assist them in determining a sale price; however some lenders may use other avenues.

You should be aware of a recent trend used by some lenders, which is bypassing the short sale process and forcing home sellers to list short sales on auction websites – even if there is an existing contract of sale! The given rationale is that the internet auction process provides a fair market value for the short sale. However, this stance by some lenders may lead some home sellers to breach of contract. In a recent conversation with several local (Maryland) state regulators, the present consensus is that “…they are aware of the situation, but there is nothing they can do about it;” however, they welcome consumer complaints: MD Commissioner of Financial Regualtion and Consumer Financial Protection Bureau.

Even though the concept is straightforward and the government has provided lenders guidance on short sales, the process can still be lengthy and full of surprises. The process does not guarantee a sale, and the lender could still foreclose if you stopped paying the mortgage. Additionally, the short sale may negatively affect your credit; and there may be legal liabilities to consider. So, before you embark on a short sale, you should consult an attorney about all of your options (which may include and is not limited to a loan modification, deed-in-lieu, or bankruptcy).

By Dan Krell
Copyright © 2015

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December 2, 2015August 27, 2019

Feng shui and your home sale

Staging a Home — From greenhomegnome.com

It didn’t seem that long ago when feng shui was important to almost every home buyer and seller. And if Google Trends is an indication of relevance, the diminishing number of searches for feng shui over the last decade indicates reduced interest. Perhaps the bursting housing bubble shifted everyone’s attention; buyers’ were determined to get distressed properties at a deal, while sellers were determined to get a model home look through staging. Although seemingly having lost significance in the housing market, feng shui is once again becoming a top concern for buyers and sellers.

If you’re not familiar with the concept, Merriam Webster (merriam-webster.com) defines feng shui as “…a Chinese system for positioning a building and the objects within a building in a way that is thought to agree with spiritual forces and to bring health and happiness.” The International Feng Shui Guild (ifsguild.org) adds that feng shui is derived from the Chinese philosophy of Taoism and has been practiced for aver 5,000 years. Furthermore, it is based in science and nature to help you live a healthy and prosperous life!

You may already be familiar with some feng shui principles, as a few basics of home staging share similar tasks. For example, de-cluttering, maximizing space and creating a “light filled home” are some of the preparations prescribed to stage a home for sale. And according to feng shui principles, these undertakings are vital in channeling a home’s energy flow. Although there may be some crossover, take caution not to confuse home staging with feng shui; staging a home is not the same as following feng shui principles.

From Realtor.org

One of the reasons for the surging focus in feng shui is the increase of home buyers from China. According to the National Association of Realtors® (realtor.org), buyers from China represented about 16% of international home buyers, while purchasing an estimated $28.6 billion of real estate in 2014.

Feng shui is also important to Chinese-Americans, according to a recent survey conducted by Better Homes and Gardens® Real Estate and the Asian Real Estate Association of America (Feng Shui a Driver of Home Selection and Investment for Chinese-Americans; bhgre.com; August 11, 2015). The survey revealed that 76% of respondents are familiar with the principles, and half of those respondents practice feng shui, which is “…considered to dictate spatial arrangement and building design to produce a harmonious flow of energy.” When it comes real estate, consider that 81% of respondents indicated that feng shui influenced their buying decisions; and that 79% of respondents indicated that they would pay more for a home that follows feng shui principles. And if you’re selling a home, you should take notice that 75% of respondents indicated that they experienced at least one “deal breaker” conflict of feng shui principles in a home.

If your home doesn’t exactly correspond with feng shui principles, consider offering a “Feng Shui Contingency.” Such a contingency was highlighted in a 2014 Realtor®Mag article about the Seattle housing market and the high concentration of buyers from China (Why You May Need the ‘Feng Shui Contingency; realtormag.realtor.org; September 22, 2014). Much like a home inspection contingency, many buyers are including a contingency to have a feng shui master approve the house. The good news is that some conflicting elements may be remedied (such as landscaping); however, others cannot (such as the home’s physical location and direction).

By Dan Krell
Copyright © 2015

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October 7, 2015November 23, 2021

Real estate agents getting back to basics and focus on relationships

Don’t be surprised when you’re getting more real estate agent phone calls, or seeing more agents at your doorstep. You may be surprised to know that in this increasingly tech dependent world, agents are getting back to business basics; which is founded in personal introductions, building relationships, and providing personal service.

You see, many real estate agents (like the rest of the population), are realizing the limitations of the internet. What was once the promise of a new market place for products and services has become a super-saturated arena of information, advice, and “content” clamoring for your attention; and is a growing disappointment for many due to the increasing irrelevance of information, not to mention the surge of fraud and hacking.

The National Association of Realtors® (realtor.org) has reported on the growth of internet use in real estate over the last fifteen years in their annual Profile of Home Buyers and Sellers (the 2014 Profile indicated that 92% of buyers “use the internet in some way in their home search process…”). And although the statistic is astounding, it is becoming clear that is still not wholly understood how home buyers and sellers use the internet.

You may not be surprised to know that home buyers and sellers don’t entirely rely on the internet for choosing their agent. In fact, many choose an agent through friend/family referrals, personal introductions, and even serendipitous meetings (such as visiting an open house). Furthermore, buyers and sellers are increasingly aware of the internet’s limitations as well; as one home buyer’s recent statement of “…this home is not what was advertised on the internet…” illustrates the type of misleading information that is often found.

Although many are just waking up to the fact that “point and click” does not sell homes, “big housing data” knows it generates online revenue by capturing your information and selling it to real estate agents, loan officers, movers, and others. Last year’s acquisition of Trulia by Zillow was thought by many analysts to be an industry game changer by merging two of the most visited real estate portals. However, many did not consider that the move was to increase traffic and revenue for two companies that were reportedly not “yet profitable” on their own, by “grabbing a bigger slice of the advertising market” (Logan, Tim. “Zillow Deal to Buy Trulia Creates Real Estate Digital Ad Juggernaut.” LA Times. 28 July 2014.<latimes.com>).

More recently, HousingWire’s Ben Lane reported on Zillow’s downgrade by Barclays (“Is Zillow in Trouble?” HousingWire. 20 July 2015. <housingwire.com>), referring to a slowdown of traffic due to saturation and competition. Months after the major acquisition, growth of the online real estate portal is “slowing significantly.”

Just as the growth of the internet created markets and changed how real estate agents conduct business; personal needs and attentions are changing how consumers view the internet, as well as producing voids left by agents and brokers who heavily relied on the internet for business.

The NAR’s recent DANGER Report misses the mark by highlighting perceived shortcomings in Realtor® ethics and competency. However, the real issue may be more about the lack of professional intimacy; which is necessary for commitment, integrity, and building trust. While some already know it, others are waking up to the notion that the quality of the professional relationship is vital to the consumer’s satisfaction – and it all begins with an introduction.

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