open house Archives - Real Estate News and Commentary

October 15, 2019October 15, 2019

How to Market a Home Sale

Some homes seem to sell themselves while others need help. If your home needs help, understand that effective use of marketing tools can increase your home’s appeal, as well as communicate your home’s value to sell it faster and for more money. Home sale marketing tools have been used ever since real estate brokerage began. Although marketing tools come and go, some have stood the test of time. So you might be wondering how to market a home sale…

How to market a home sale according to a Realtor

If you ask your Realtor how to market a home sale, they may tell you about open houses, print ads, and the internet.

Probably one of the most effective marketing tools an agent has is the open house. Unfortunately, the open house is under-used, as well as often misused for the agent’s personal gain. Although the open house routine has changed, brokers have been holding open houses for over one-hundred years. The open house is the ideal time to communicate directly with home buyers and their agents about your home’s appeal and value. Try to avoid the use of open house gimmicks (such as cook-outs and carnivals) because they detract from the home sale message. Furthermore, make sure your agent is focused on selling your home during the open house, instead of focusing on signing-up new clients.

Although not as prevalent today, print advertising was a home marketing staple for over a century. Today, the majority of home buyers search for homes online, so it’s not likely that a print ad will have a wide audience. However, agents will uses post cards and door hangers to announce their new listing. Nonetheless, print advertising is still used to market niche homes and agent self-promotion.

You might be wondering how to market a home sale online? Internet and digital marketing is the most widely used form of advertising today. Internet marketing is easy because the MLS syndicates your home listing across numerous websites automatically! Although the syndication is automatic, your agent still needs to check how the listing appears. If the listing has incorrect information, it needs to be fixed or can hamper results.

There are a variety of other internet advertising opportunities, including a dedicated webpage, pay-per-click, and video. However, results, if any, may be limited if not used effectively.

One of the most important marketing tools to relay your home’s appeal and value is the camera. Technological advances in MLS feeds and digital photography now allow home buyers to see many pictures of your home and its surroundings in crystal clear clarity. However, don’t solely rely on new photo technologies for virtual tours, as the viewing ability may be limited.

Virtual reality (VR) is a cutting-edge tech being touted for virtual tours. Let alone that most home buyers don’t own a VR device, many buyers are likely to search homes when wearing a VR device is not appropriate, such as at work or on the metro. Even though VR marketing sounds cool, it’s reach is still very limited.

Although VR is yet to be an effective tool, augmented reality such as 3D virtual tours are coming of age. Although there are still limitations, updated internet browsers, broadband, and new 5G allow home buyers to view your home as a 3D model.

The basics.

Regardless of what real estate agents will tell you, the best marketing tools for your home are the list price, your home’s condition, and its location. However, a high list price, poor condition and/or location can be helped by your agent’s marketing tools. Effective marketing tools can also help increase your home’s appeal and communicate the home’s value. But ultimately, the nitty-gritty of selling your home depends on your agent’s savvy, ability to facilitate an offer, and negotiate a price.

Original article is published at https://dankrell.com/blog/2019/10/15/how-to-market-a-home-sale/

By Dan Krell
Copyright© 2019

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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.

July 19, 2018November 23, 2021

Open house and carry on

Open House Still Part of Home Buying Process

The tradition of having an open house, like other real estate customs, has recently become a source of debate over its value and effectiveness. According to Rachel Stults, the tradition began over one hundred years ago when brokers allowed prospective buyers to “inspect” the house by having it open to the public (A Brief History of Opening Our Homes to Total Strangers; realtor.com; April 21^st, 2015). The house was advertised as “open for inspection.” Of course, it was a much different time. Home buyers were not represented, and there was no home inspection as we know it today. Hence, the “open house,” as first conceived, served an important function for the both the buyer and the seller.

As the housing industry evolved, visiting an open house morphed into a Sunday tradition. Open houses were not just for home buyers, as it also became a form of Sunday afternoon entertainment for the general public. The internet changed the tradition by virtually opening the house to the public through pictures and tours and allowing buyers to identify the specific homes they want to visit.

There is disagreement among real estate agents and other housing experts on the merit and effectiveness of the open house. Additionally, home buyers have significantly changed how they use the open house over the last two decades. According to the National Association of Realtors’ Profile of Home Buyers and Sellers (nar.realtor), twenty-eight percent of home buyers surveyed in 1999 indicated they found their home by visiting an open house, compared to only seven percent in 2017.

Adding doubt is a recent study that indicates having a public open house actually decreases the probability of selling a home by about 6.1 percent (Allen, Cadena, Rutherford & Rutherford; Effects of Real Estate Brokers’ Marketing Strategies: Public Open Houses, Broker Open Houses, MLS Virtual Tours, and MLS Photographs. Journal of Real Estate Research: 2015, 37:3, 343-369). The authors indicated that having a public open house can increase your home’s days on market up to twenty-five days.

Although the open house may have lost its clout as a selling tool, it is still a major aspect of the home buying process. Open house data from NAR’s 2015 Profile of Home Buyers and Sellers indicated:

-48 percent of all buyers surveyed used the open house as part of their home search process.
-Repeat home buyers are more likely to find their home from an open house compared to first-time buyers.
-The income bracket most likely to frequent an open house has a median income between $250,000 and $499,999.
-Home buyers below the age of 65 (but older than 24) are more likely to frequent an open.
-The Northeast and West regions of the US have more successful open houses.
-Buyers seeking a new home visit open houses more than those seeking a re-sale.
-Couples (married and unmarried) are more likely to visit open houses than single home buyers.
-And, ninety-two percent of home buyers surveyed indicated that open houses were at least “somewhat useful.”

If you decide to have an open house, put away your valuables and medications so as not to tempt thieves who may wander into your home. Have a discussion with your agent about focusing on selling your home, instead of trying to get more clients. And finally, don’t distract from your home by having an “event,” which employs food trucks, bounce houses, and other open house gimmicks.

By Dan Krell.
Copyright © 2018.

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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/

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August 12, 2016January 3, 2020

Sign ban or boosting Realtors?

Sign ban or free speech — Sign ban or Free speech? (infographic from newseum.org)

A special thanks to the Montgomery County Council whose proposed sign ban will undoubtedly help local real estate agents. Last week’s testimony about a zoning text amendment relating to signs and their location illuminated their place in the community as well as reminded us they are a form of free speech.

Of course the unintended consequences of a blanket sign ban in the right of way is yet to be determined. However, it would certainly make it more difficult for county residents to sell their home by owner (without an agent), as well as home buyers wanting to go it alone without an agent. The resulting lack of information that is currently provided by these signs would certainly compel consumers to hire a local Realtor®. Thank you.

Greater Capital Area Association of Realtors® (GCAAR) president Peg Mancuso testified: “From a real estate perspective, signs are an inevitable means of communicating with Montgomery County residents both new and existing. The proposed sign ban would be a tremendous inconvenience to community members who are in need of information for short term related events, such as open houses.” She mentioned a Realtor® best practice (which most agents adhere to) of placement of open house signs just prior to and removal immediately after the event. She also pointed out that many home owners are unaware how their properties relate to the right of way, as well as being uneducated about the permitting process of signs. These logistical and educational issues would make such a sign ban difficult for home owners to advertise their homes.

GCAAR vice president and COO Bill Highsmith, Jr reminded those at the hearing that GCAAR not only represents local real estate professionals, but is also a voice for home owners on property rights issues. He asserted that signs in the right of way have historically been a means of business advertisement, expression, and community engagement. He stated that “…publically visible signs are an important method of communication for county residents, Realtors® and the broader real estate market.”

Mr. Highsmith stated, “For Realtors® and the clients they serve, these signs are a particularly important way to communicate information about open houses and homes that are for sale. While you may believe the internet is the primary way folks learn about opportunities to purchase a home, real estate signs are vital to let the broader public know about the real estate market in surrounding neighborhoods.” He cited anecdotal evidence that many home buyers have bought the home they initially spotted from a sign. He asserted that many consumers begin the home buying process by visiting open houses (especially first time home buyers). And additionally suggested that these signs allow more county residents to become home buyers.

Allen Myers of the Maplewood Citizen Association (MCA) stated that these signs are useful to inform their residents of association meetings. Collection of permitting fees for temporary signs would be cost prohibitive, possibly adding additional financial burden to the members of the association. He asserted that the MCA believes that the signs are Constitutionally protected form of free speech.

It is reasonable to believe that many people agree seeing “shoe repair” signs are annoying. And it is also reasonable to surmise that improperly planted signs can become a hazard. Nonetheless, the takeaway for anyone attending last week’s hearing should be that these signs are beneficial to the community.

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November 24, 2015November 23, 2021

Home marketing may be limited due to agents’ personal wealth strategy

From stagingworkstoronto.ca

If you ask a real estate agent about their home sale strategy, you may get a sanctimonious presentation of the best way to sell a house. However, if you question why they advocate specific procedures over others, chances are they will answer “experience.” Even in the face of an abundance of research, many continue to hold on to old and outdated beliefs about how to sell a house. Furthermore, consider that a real estate agent’s strategy to sell your home may not necessarily benefit your bottom line.

The latest study by Allen, Cadena, Rutherford & Rutherford (2015. Effects of real estate brokers’ marketing strategies: Public open houses, broker open houses, MLS virtual tours, and MLS photographs. The Journal of Real Estate Research, 37(3), 343-369) is the most recent extension of home sale strategy research. The study reinforces the outcomes of some strategies, while shedding light on others; and asks a compelling question about agent motives.

The study looked at home sale price, time on market, and the likelihood of a sale in relation to: broker open houses, public open houses, MLS photos, and MLS virtual tours. The results indicated that all four tactics positively influence home sale price. Additionally, conducting public open houses and having MLS photos have a positive influence on time on market. However, there is little evidence that having more than six MLS photos increases that positive effect. Surprisingly, MLS virtual tours and conducting broker open houses have a negative influence on time on market. The authors conclude that as a package all four strategies may be worthwhile to consider when home sale price is the goal, even though the time on market may be slightly extended.

However, if your goal is a successful home sale, you may consider another strategy. The study concluded that the probability of your home sale success increases when you have broker open houses, MLS virtual tours, and eight or more MLS photographs. The study found that public open houses actually decrease the probability of a successful home sale.

In light of these findings about home sale price and success of sale, the authors rhetorically ask: “Why do all sellers/brokers not use these marketing strategies in every transaction effort?” They propose that, “Perhaps the answer is that brokers follow a wealth maximization strategy that may result in an agency problem with sellers.”

It should come as no surprise that there are agents who have a “wealth maximization strategy” for themselves, and place their own needs before their client’s. However, the authors’ suggestion about agent motives could be problematic with respect to the National Association of Realtors® Code of Ethics (realtor.org). For example, Standard of Practice 11-2 indicates that, “The obligations of the Code of Ethics… shall be interpreted and applied in accordance with the standards of competence and practice which clients and the public reasonably require to protect their rights and interests considering the complexity of the transaction, the availability of expert assistance, and, where the Realtor® is an agent or subagent, the obligations of a fiduciary.”

If you’re selling your home, one takeaway you might have from this study is that you should exercise due diligence when choosing your listing agent. Consider discussing the sales strategy, and getting it in writing. Additionally, protect yourself by ensuring that your listing agreement can be terminated without penalty and within a reasonable amount of time.

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