Autumn Home Selling

autumn home selling
Autumn home selling

What was once considered a winding down period for the year’s home sales, has become housing’s second wind.  Autumn is not only a time when the leaves start falling, but it also has become a target selling season for home sellers who miss the spring market.  Autumn home selling is also a second chance for those who could not sell their home earlier in the year.  In fact, the fall has become an active home selling season.

The general consensus for the autumn home selling phenomenon is that home sale inventory is low.  But the truth is that the fall tends to be when home sale inventory begins to decrease anyway.  Many home sellers who didn’t sell their home during the spring or summer will be pulling their homes off the market.  Sure, new listings are available during the fall, but not as many as there were in the spring.  Fall is a time for home buyers and sellers to strike while the iron is hot.  The combination of fewer listings along with serious home buyers and sellers makes the fall housing market a brisk selling time. 

This year, autumn home selling may be different.  Existing home sales have declined year-to-date (compared to last year).  The National Association of Realtors reported that as of June, existing home sales are about 2.2 percent behind last year’s sales.  Year-to-date Montgomery County home sales are 2.1 percent below last year’s sales.  This decline actually started last fall.  The home sale drop-off stifled what could have been a record year for 2018 home sales.

Autumn home selling

If you’re selling a home this fall keep an eye on neighborhood home sales.  Setting a reasonable list price will be key to getting your home sold.  Keep in mind that although home sale prices continue to climb, monthly appreciation is slowing.  The S&P CoreLogic Case-Shiller Home Price Index (spindices.com) reported a year-to-date nationwide 2.29 percent increase.  You get a sense of the magnitude of decelerating appreciation when compared to 2018’s increase of 4.55 percent, and 2017’s increase of 6.24 percent nationwide.  The year-to-date Montgomery County average home sale price is about $554,932, which is only an increase of 1.2 percent from the same time last year (MarketStats by ShowingTime). 

Over pricing your home can be a disastrous mistake during the fall market.  Don’t be greedy, and be prepared to adjust your pricing strategy.  There are many storms brewing that can easily scare home buyers.  If the list price is too high, you may end up with low ball offers because of a protracted time in the MLS. 

Although having less competition makes it a good time to sell your home, it can also be challenging.  Fall weather can be significantly different day to day.  Be prepared to adjust the thermostat.  Make sure your HVAC system gets a fall service so it will be ready for colder temps.   

Don’t forget to keep up with your home’s curb appeal.  Although you may want to get lazy about maintaining your lawn, don’t let it grow too high.  Also, remove excessive leaves from the ground too, as this can also diminish your home’s curb appeal.

Make accommodations for home buyers to visit your home.  Many home buyers will probably schedule tours after work, when it will be getting dark.  Open houses are still a good option for a fall home sale.  Turnout may be scant, but fall open house visitors are more likely to buy.

Original article is located at https://dankrell.com/blog/2019/09/15/autumn-home-selling/

By Dan Krell
Copyright© 2019

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

Protected by Copyscape Web Plagiarism Detector


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.

Short sale is still relevant

short sale
Market conditions makes the short sale relevant (infographic from nar.realtor)

Believe it or not it’s been over ten years since the financial crises and Great Recession, and the short sale is still relevant! And this is why…

Coming on the heels of a dismal January, the National Association of Realtors March 22nd data release announced good news declaring a home sales “surge” during February (nar.realtor).  February’s closings increased 11.8 percent, compared to January!  But the bad news is that the number of sales also decreased 1.8 percent from last year. If you follow real estate news, you know that homes sales stats were disappointing during the winter. (Consider that 2018’s total existing home sales were lower than the previous year’s total, according to NAR’s statistics).  February’s adjusted annual home sale rate of 5.51 million is lower than the same time last year, and pales in comparison to the 6.48 million home sales in 2006.    

Although February was indeed a busy month, NAR’s March 28th data release of the Pending Home Sale Index predicts a slow start to the spring market.  Homes that went under contract during February decreased 1 percent from the previous month and decreased 4.9 percent from the previous year.  This “forward looking index” indicates that next month’s home sales may disappoint. 

But there is a silver lining.  Home sale prices continue to rise, meaning that home owner equity is not eroding. February’s median existing home sale price increased 3.6 percent from the same time last year.  And according to NAR’s statistics, home sale prices have risen for 84 consecutive months (which equates to 7 years of continued gains)!

There are many reasons for a short sale

Although home sale prices are rising, there are still many home owners who are underwater. According to Attom Data (attomdata.com), distressed home sales still account for 12.4 percent of all home sales.  Of course, this is far from the 38.6 percent in 2011.  And the percentage of distressed sale continues to decrease.  However, the number is still significant. 

It’s estimated there are millions of underwater home owners.  There are a number of reasons why home owners may be underwater, including (but not limited to) years of deferred maintenance, or a negative equity mortgage.  Many short sales today include investment properties.  Some home owners don’t know they are underwater until they list the home for sale. 

Although not as prevalent as in 2011, the short sale is still relevant!  Many underwater home owners don’t have to sell, as they are not financially distressed, and are happy to stay put for many years. However, some are compelled to sell for a number of reasons (such as divorce, bankruptcy, etc.).  Some underwater home owners may have a desire to move, but can’t because they are underwater (such as empty nesters and retirees). 

If you think your home sale may result in a short sale, get the facts.  Question what you hear from others and what you find on the internet.  There is a lot of information circulating about short sales.  A majority of the information is either misleading, erroneous, and/or outdated.  Consult with an attorney who negotiates sales to help you understand the legal aspects.  Also consult your accountant for the financial implications.

There is much to consider, and a lot at stake!  Be careful when considering your listing agent.  Due your due diligence and hire an experienced short sales agent that knows the process and is savvy about appealing lender values.  Many listing agents will give up on a short sale, mostly because it’s hard work. So most important, make sure your agent has a track record of getting the short sale to settlement.

Original published at https://dankrell.com/blog/2019/04/18/short-sale-is-still-relevant

By Dan Krell
Copyright © 2019.

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

Protected by Copyscape Web Plagiarism Detector

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.

Winter home sale prep

winter home prep
Winter home prep (infographic from cdc.gov)

The winter holidays are over, so there shouldn’t be any more disruption to your winter home sale, right?  A winter home sale may not have much competition during the winter months, but the weather could potentially put a stopper on buyer visits.  And in the aftermath of this week’s snow storm, you might have second thoughts about your winter home sale.  But since you’re one of the savvy home sellers, you know that weather is fleeting and winter home buyers are serious. You know to focus on the winter home sale prep.

Selling during the winter is not much different than selling during any other time of year.  In other words, home sale prep is required.  And just as you would during the summer, you should prepare for home buyers to visit your home during a winter home sale.  Instead of the heat and thunderstorms of summer, you should prepare for the cold and snow of winter.  Your home should be warm enough to make visitors comfortable to help them envision living in your home.  Also, consider having a large mat in the entrance where visitors can wipe their shoes or remove them, so as to help keep your home clean.

Decluttering and maintaining a clutter-free home during a home sale is a challenge.  But during the winter, when we tend to retreat inside and “nest,” maintaining a home ready to view can be a test of your will.  Give yourself more time for home sale prep before a home buyer comes knocking.  Consider a daily quick onceover through the house to help maintain order.  Limiting buyer visits to specific times of day can help you feel in control, as well as designate a daily private time when you can relax.

Weather permitting, winter open houses are still appealing for home buyers.  And during the winter when there are few homes listed for sale, there are even fewer open houses making your open house a destination.  Summer or Winter, an open house is an ideal way to have many home buyers visit your home in a concentrated time period.  You should coordinate visiting times and open houses with your agent to eliminate surprises.

Regardless of how well you care for your home, maintenance issues are always a concern during a home sale.  More so during the winter.  If your HVAC system is not working efficiently, it may not be heating your home evenly and consistently.  Aging shingles can cause of ice dams, and allow water penetration into the home.  Blocked gutters and downspouts can cause safety issues by causing standing water and ice on walkways.  Poorly insulated doors and windows cause drafts and cold spots in the home. 

Prepare your home for a winter sale and address maintenance issues before the house goes on the market.  Have your HVAC system serviced and cleaned.  Have a licensed roofer check your roof for missing or damaged shingles.  Consider having a pre-listing home inspection to spot concerns. 

Recent inventory shortages and buyer demand has made winter a great time to sell your home.  However, some home buyers still believe that they can lowball a winter home sale.  And there is a good chance that you will a receive a lowball offer.  You prepare for these buyers by strategizing with your agent on negotiating tactics.  If you receive a lowball offer, don’t get offended.  Instead, take the opportunity to start a dialogue with the buyer.  If the home buyer is serious, they will negotiate in good faith. 

Original published at https://dankrell.com/blog/2019/01/19/winter-home-sale-prep

By Dan Krell. Copyright © 2019.

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

Protected by Copyscape Web Plagiarism Detector


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.

Occam’s razor home selling

Occam's razor and selling a home
Staging is one of the four basics of home selling. (infographic from nar.realtor)

Many home owners are preparing to sell their homes this year.  And in doing so, home sellers are looking for new and exciting ways to sell their homes fast and for top dollar.  But the reality is that selling a home is not rocket science.  There really isn’t a secret trick or approach to selling a home.  Rather, it’s more like magic, where properly performed fundamental tasks can set the stage for a satisfying experience. If you don’t know how Occam’s razor (or what it is) can help you get the most from your home sale, pay close attention.

Unfortunately, it’s a human trait seek a complex solution to a simple question.  In other words, applying Occam’s razer to your home sale can save you time and allow you to get out of your own way.  Occam’s razer is a tool that is often used to figure out solutions and devise scientific theories.  It has become popularized as the “keep it simple stupid” method.  However, Susan Borowski’s history and explanation of Occam’s razor, written for the American Association for the Advancement of Science, gives it teeth (The Origin and Popular Use of Occam’s Razor; aaas.org; June 12, 2012).  Borowski states, “Occam’s razor doesn’t necessarily go with the simplest theory, whether it’s right or wrong; it is not an example of simplicity for simplicity’s sake. It merely tries to cut through the clutter to find the best theory based on the best scientific principles and knowledge at the time.”

In other words, focus on the tried and true fundamentals of selling a home.  Anything above and beyond may not necessarily help to sell the home faster or for more money, but could help make the process more enjoyable.  That in mind, let’s consider these four basic concepts:

First, consider the condition of your home.  Do you have deferred maintenance issues?  Does your home need a makeover?  Homes that get top dollar are “turnkey.”  Many home buyers are willing to compete and pay more for recently upgraded and renovated homes.  Selling a home with deferred maintenance or lacking recent updates can not only turn off many home buyers, but can encourage low-ball offers.  A pre-listing home inspection can help you identify maintenance issues.  Also, consider consulting with a design professional to help you understand which updates (if any) are necessary to help your home sale.

Next, work on the home’s presentation to give it a clean and spacious feel.  Decluttering is one of those tasks that can be overwhelming, but it’s importance cannot be overstated.  Decluttering will force you to decide which items to keep in the home.  Additionally, staging your home can help balance space, furniture and décor.  This can help home buyers envision living in the home.

Deciding on a list price is often a conundrum.  Although enticing, don’t be seduced by the agent who tells you the highest sales price without understanding their rationale.  The housing market can turn on a dime.  If your home isn’t priced correctly, it can languish on the market.  There are many aspects that go into deciding a price, so work with a respected seasoned agent to go through the market details and scenarios. 

Finally, when the home is ready to list, how is it to be marketed?  Today’s MLS listing syndication takes advantage of the fact that most home buyers actively search homes on the internet. Don’t rely on gimmicks that promise activity on your listing.  A complete marketing plan will take into account the factors we discussed here, and apply strategies to attract motivated home buyers.

Original published at https://dankrell.com/blog/2019/01/12/occams-razor-home-selling/

By Dan Krell. Copyright © 2019.

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

Protected by Copyscape Web Plagiarism Detector


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.

Home market value

home market value
Home Market Value (infographic from keepingcurrentmatters.com)

It’s normal for homeowners to wonder about their home market value. After all, home sales and prices have been making headlines for well over a decade.  But you certainly can’t get a home market value from a headline, nor can you assume it from a neighbor’s sale.  The reality is that your home market value could vary depending on whom and when you ask.

A timely and important review article by Michael Sanders recently published in the Appraisal Journal asks the question “what does Market Value Mean?”  (Market Value: What Does It Really Mean?; Appraisal Journal. Summer2018, 86:3, p206-218).  The article correctly points out that determining “market value” can realize different results depending on the scope and purpose of the appraisal.  You can see how this might be problematic if you’re trying to determine a home’s value when divorcing or trying to sell an estate property.  Some mortgage lenders even have different value criteria depending on the loan product and purpose.

Sanders suggests that “market value” undergoes scrutiny when valuations are difficult and appraisals are questioned (e.g., during a recession).  However, having a discussion about the meaning of “market value” now, when there is relative market stability, is probably meaningful for the industry and consumers.  Interestingly, the semantics of “market value” have changed through the years, and ultimately depends on the application.  He points out at least twelve similar but different legal definitions of “market value.”

Sanders suggests that Richard Radcliff, an appraisal pioneer of the 1960’s, was ahead of his time by advocated for most probable price valuations.  An ongoing debate in appraisal circles is whether “market value” is the highest price or probable price.  However, it wasn’t until the 1980’s when appraisal articles academically contemplated the association of “probable sale price” and “market value.”

Sanders quotes Richard Ratcliff saying, “appraisal is largely the predicting of human behavior under given market conditions.”  Sanders quips about an “ideal world”, where “appraisers would apply market value definitions using a relatively consistent and objective standard, and reflect conditions in the market as they exist, rather than how others might wish them to be.

Although the accepted dictionary definition of “market value” is the price a buyer is willing to pay for your home, market value and sale price could be different (and often is).  And according to Sanders, an appraised “market value” isn’t necessarily the price for which your home may sell.

At this point you may be asking yourself, “how much is my home really worth?”  For the answer, you may have to ask a Realtor.

Realtors use market data to prepare comparative market analyses (CMA) that can help buyers and sellers decide on a sale price.  Although a CMA is not an appraisal, it is a technical and methodical professional analysis that provides a snapshot of the market.  The CMA is typically more refined in scope than an appraisal, such that it is usually limited to a neighborhood and home criteria.  Additionally, depending on the location and availability of comparable sales, it can provide a 30, 60, and 90-day probable sale price range based on market trends.

If you’re planning a home sale, a Realtor’s CMA may be your best source of information to decide on a listing price.  Even mortgage lenders have relied on Realtor CMA’s, in the form of Broker Price Opinions, to help decide on sale prices for short sales and bank owned homes.

Original published at https://dankrell.com/blog/2018/12/13/home-market-value/(opens in a new tab)

By Dan Krell. Copyright © 2018.

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

Protected by Copyscape Web Plagiarism Detector
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.