selling strategy Archives - Real Estate News and Commentary

November 28, 2019November 28, 2019

Holiday Home Selling

Conventional real estate wisdom used to be that timing the market was the key to listing your home for sale. Most home sellers tried to aim for the spring and early summer months to sell their homes. In fact, June continues to be when most settlements occur. However, selling strategies have changed over the last few years such that home sellers are confidently listing in the fall. Many also hold nothing back to sell during the winter months. But how about holiday home selling?

The holiday season is typically when the real estate industry slows to a crawl. But it doesn’t mean that the housing market is closed! Consider that there were 658 Montgomery County MLS listed homes that went under contract since the beginning of November. This confirms that active home buyers are constantly searching for homes, and will certainly visit houses that are available during the holiday season. The only obstacle for home buyers (and your home sale) is severe weather.

Holiday home selling is not for everyone. If you have not yet listed your home for sale, you may consider waiting to list after Thanksgiving. Or you may just decide to wait until the new year. Your listing strategy should be based on your lifestyle. Although the holiday season is often synonymous with joy and good cheer, many experience increased stress during this time. If the holidays are a hectic time for you, the thought of the additional stress of selling your home may sway you to waiting the holidays out. Keep in mind that, like any other time of the year, you still have to prepare your home for sale (which includes decluttering, repairs and staging).

If your home is already listed for sale, you have some choices. It used to be the rule that if your home was still on the market approaching Thanksgiving that the listing would be pulled from the MLS until spring. And as of the November 1^st, 181 county homes have been pulled off the MLS. You may decide to do the same.

But keeping your home on the market during the holiday season is no longer taboo. As I mentioned earlier, conventional wisdom is passé. Some home sellers see an opportunity to sell during the holiday season as many homes come of the market. Consider that since November 1^st, there were 444 new MLS listings. There are also another 46 homes currently listed as “coming soon.”

Obviously, if your home is vacant it’s easy to show. However, you should still visit the home weekly to make sure it is clean and shows well. But if you’re selling the home where you reside during the holiday season, you may want to think about showings and staging. Talk to your agent about requiring home buyer appointments to view the home so you don’t have inopportune surprise visitors. This will give you the flexibility and emotional space to have your home show its best while you enjoy the holidays.

What about holiday decorations and holiday home selling staging? According to Melissa Dittmann Tracey, writing for the NAR blog (Should You Stage Homes for the Holidays?; nar.realtor; December 19, 2011), most real estate professionals tell their clients to stage with “holiday-spirit and glow.” Although thirty-seven percent of professionals indicated that they advised holiday staging without religious decorations, twenty-eight percent advised their clients to also include their religious decorations. Only eight percent of professionals surveyed advised to do generic staging without any holiday decorations.

Original article is published at https://dankrell.com/blog/2019/11/28/holiday-home-selling/

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.

September 15, 2019October 15, 2019

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

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March 21, 2019May 3, 2019

Creating home staging vision

Although home staging has become entrenched in the home sale process, it doesn’t have to be a pricey way to prepare your home sale. Not only has it become part of the home seller experience, the home staging vision is now expected by buyers and their agents when they visit homes.

The spring home sale season is the perfect time for the National Association of Realtors to roll out the results of their 2019 Profile of Home Staging survey (nar.realtor). In a March 14^th press release, NAR President John Smaby summed up this year’s profile by stating, “Realtors understand the importance of making a residential property as welcoming and appealing as possible to potential buyers. While every Realtor doesn’t use staging in every situation, the potential value it brings is clear to both homebuyers and sellers.”

Staging may affect a home’s time on market, and it’s likely due to visual cues. Meaning that home staging vision helps the home buyer picture themselves living in the home. More than half of the agents who responded to the survey indicated that home staging reduces time on market. Forty percent of buyer agents said that home staging effects most buyers’ perceptions of a home. Eighty-three percent of buyer agents believe that home staging vision makes it easier to visualize living in the home.

It’s not surprising that agents agree that the most staging attention goes to the living room, kitchen, master bedroom, and the dining room. It’s not that these rooms have special significance, but rather it’s because it’s where people spend most of their time in the home.

The NAR survey also found that real estate TV shows has impacted home buyers’ views and expectations. Thirty-nine percent of buyers indicated that they experienced a more difficult home buying process than what they expected. Twenty percent of buyers reported being disappointed that homes they visited didn’t look like the ones portrayed on TV. While ten percent believe that homes should look staged as they are depicted in TV shows.

Not all agents stage the homes they list for sale. Only twenty-eight percent of listing agents said they staged all sellers’ homes prior to listing them for sale. Compared to the thirteen percent of agents who confessed that they only stage homes that they deem difficult to sell.

Does home staging affect sale price? It was noted that all agents surveyed indicated that home staging affected their home sale positively. Twenty-two percent of the agents reported an increase of up to five percent in buyers’ offers, while seventeen percent reported offer increases up to ten percent. Only two percent of the agents responded that it increased offers up to twenty percent.

But the idea of staging your home to get top dollar may just be traditional wisdom, as evidenced by NAR’s survey. One of the few studies on staging revealed that indeed, staging does not have a significant impact on sale price. Lane, Seiler & Seiler’s 2015 study (The Impact of Staging Conditions on Residential Real Estate Demand. Journal of Housing Research, 24,1. 21-35) concluded that although staging affects the home buying process and the buyer’s opinion and perception of livability, it’s not enough to result in a higher sales price. The authors stated, “These results stand in stark contrast to the conscious (stated) opinion of both buyers and real estate agents that staging conditions significantly impact willingness to pay for a home. As such, the findings are new and useful to a large group of stakeholders (sellers and agents).”

Original published at https://dankrell.com/blog/2019/03/21/creating-home-staging-vision/

By Dan Krell
Copyright © 2019.

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January 19, 2019April 22, 2019

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

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January 12, 2019July 23, 2019

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/

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