7 Pricing Myths to Stop Believing If You Ever Hope to Sell Your House
Pricing your own home is hard. Of course, you want to make a profit. Of course, all that money you spent installing a swimming pool or a half-bath will be recouped, because you’re leaving your digs in better shape than when you bought it, right?
Well, not necessarily. Too many home sellers fall prey to myths about home pricing that seem to make sense at first, but don’t jive with the reality of real estate markets today. To make sure you haven’t bought into any of this—since the buyers you’re trying to woo sure haven’t—here are some common pricing myths you’ll want to rinse from your brain so you kick off your home-selling venture with realistic expectations.
1. You always make money when you sell a home
Sure, real estate tends to appreciate over time: Home prices increased by approximately 5% by the end of 2017 and continue rising 3.5% in 2018. But selling your home for more than you paid is by no means a given, and your return on investment can vary greatly based on where you live.
2. Price your house high to make big bucks
We know what you’re thinking: “Hey, it’s worth a shot!” But if you start with some sky-high asking price, you’ll soon come back to Earth when you realize that an overpriced home just won’t sell.
While the payday might sound appealing, you’re actually sacrificing your best marketing time in exchange for the remote possibility that someone will overpay for your home.
RELATED: Home Won’t Sell? Check The Price
While certain buyers might be suckered in, this becomes far less likely if they’re working with a buyer’s agent who will know all too well when a home is overpriced, and advise their client to steer clear. And this can lead to problems down the road (as our next myth indicates).
3. If your home’s overpriced, it’s no big deal to lower it later
Sorry, but overpricing your home isn’t easily fixed just by lowering it later on. The reason: Homes that have lingered on the market for months make buyers presume that something must be wrong. As such, they might still steer clear, or offer even less than the price you’re now asking.
Bottom line: Price your home appropriately from the beginning for your best shot at having a quick and easy sale.
RELATED: The Importance of Proper Pricing
4. Pricing your home low means you won’t make as much money
Similarly, sellers are often leery of pricing their home on the low end. But as counterintuitive as this seems, this strategy can often pay off big-time. Here’s why: Low-priced homes drum up tons of interest, which could result in a bidding war that could drive your home’s price past your wildest dreams.
5. You can add the cost of any renovations you’ve made
Let’s say you overhauled your kitchen or added a deck. It stands to reason that whatever money you paid for these improvements will be recouped in full once you sell—after all, your home’s new owners are inheriting all your hard work.
The reality: While your renovations might see some return on investment, you’ll rarely recoup the whole amount. On average, you can expect to get back 64% of every dollar you spend on home improvements. Plus that profit can vary greatly based on which renovation you do.
6. A past appraisal will help you pinpoint the right price
If you have an appraisal in hand, from when you bought or refinanced your house, you might think that’s a logical place to start to price your home. It’s not!
An appraisal assigns your home a value based on market conditions at a specific date, so it becomes old news very quickly. In fact, lenders typically won’t accept appraisals that are more than 60 days old because lenders know markets can change quickly.
7. Your agent might overprice the house to make a bigger commission
Don’t even go there.
While it’s true that an agent’s commission is based on the selling price of a house, the disparity will end up being negligible. For example, the difference in commission between a $300,000 house and one that’s $310,000 is about $150.
No real estate agent is going to lose a sale for the sake of a couple hundred dollars.
Do you have any home selling myths to add to our list? Sound off on The Patrick Parker Realty Facebook Page or our Twitter feeds. And don’t forget to subscribe to our monthly HOME ADVICEtm email newsletter for articles like this delivered straight to your inbox. You may unsubscribe at any time.
10 Top Secrets To Selling Your Home
So you’ve decided to put your house up for sale. Now what? Aside from hiring a real estate agent, there are a few other important matters to address before your home is listed and potential buyers start coming through the door. Some of these items, more important than others.
FREE DOWNLOAD: Home Selling Essentials
Everything You Need To Know To Sell Your Home
It’s important to remember that while you may look around your abode and see your dream home, not everyone will agree. After all, potential buyers aren’t buying your aesthetic. They’re after square footage, closet space, great light, and up-to-date—maybe even brand-new—appliances and fixtures. Thinking like a buyer, we uncover the Top 10 Secrets to selling your home fast for top-dollar.
Selling Secret #10: Pricing it right
Pricing is the most important aspect of selling your home and you need an experienced Listing Agent with extensive market knowledge. Your Agent will consider up-to-date information on what is happening in the marketplace and the price, and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and smoothly.
RELATED: The Importance of Proper Pricing
Selling Secret #9: Half-empty closets
Storage is something every buyer is looking for and can never have enough of. Take half the stuff out of your closets then neatly organize what’s left in there. Buyers will snoop, so be sure to keep all your closets and cabinets clean and tidy.
Selling Secret #8: Light it up
Maximize the light in your home. After location, good light is the one thing that every buyer cites that they want in a home. Take down the drapes, clean the windows, change the lampshades, increase the wattage of your light bulbs and cut the bushes outside to let in sunshine. Do what you have to do make your house bright and cheery – it will make it more sellable.
Selling Secret #7: Play the agent field
A secret sale killer is hiring the wrong broker. Make sure you have a broker who is totally informed. They must constantly monitor the multiple listing service (MLS), know your marketplace and understand the latest available marketing methods.
Look for a Real Estate Agent who embraces technology – a tech-savvy one has many tools to get your house sold.
Selling Secret #6: Conceal the critters
You might think a cuddly dog would warm the hearts of potential buyers, but you’d be wrong. Not everybody is a dog- or cat-lover. Buyers don’t want to walk in your home and see a bowl full of dog food, smell the kitty litter box or have tufts of pet hair stuck to their clothes. It will give buyers the impression that your house is not clean. If you’re planning an open house, send the critters to a pet hotel for the day.
Selling Secret #5: Don’t over-upgrade
Quick fixes before selling always pay off. Mammoth makeovers, not so much. You probably won’t get your money back if you do a huge improvement project before you put your house on the market. Instead, do updates that will pay off and get you top dollar. Get a new fresh coat of paint on the walls. Clean the curtains or go buy some inexpensive new ones. Replace door handles, cabinet hardware, make sure closet doors are on track, fix leaky faucets and clean the grout.
Selling Secret #4: Take the home out of your house
One of the most important things to do when selling your house is to de-personalize it. The more personal stuff in your house, the less potential buyers can imagine themselves living there. Get rid of a third of your stuff – put it in storage. This includes family photos, memorabilia collections and personal keepsakes. Consider hiring a home stager to maximize the full potential of your home. Staging simply means arranging your furniture to best showcase the floor plan and maximize the use of space.
Selling Secret #3: The kitchen comes first
You’re not actually selling your house, you’re selling your kitchen – that’s how important it is. The benefits of remodeling your kitchen are endless, and the best part of it is that you’ll probably get 85% of your money back. It may be a few thousand dollars to replace countertops where a buyer may knock $10,000 off the asking price if your kitchen looks dated.
The fastest, most inexpensive kitchen updates include painting and new cabinet hardware. Use a neutral-color paint so you can present buyers with a blank canvas where they can start envisioning their own style. If you have a little money to spend, buy one fancy stainless steel appliance. Why one? Because when people see one high-end appliance they think all the rest are expensive too and it updates the kitchen.
Selling Secret #2: Always be ready to show
Your house needs to be “show-ready” at all times – you never know when your buyer is going to walk through the door. You have to be available whenever they want to come see the place and it has to be in tip-top shape. Don’t leave dishes in the sink, keep the dishwasher cleaned out, the bathrooms sparkling and make sure there are no dust bunnies in the corners. It’s a little inconvenient, but it will get your house sold.
Selling Secret #1: The first impression is the only impression
No matter how good the interior of your home looks, buyers have already judged your home before they walk through the door. You never have a second chance to make a first impression. It’s important to make people feel warm, welcome and safe as they approach the house. Spruce up your home’s exterior with inexpensive shrubs and brightly colored flowers. You can typically get a 100-percent return on the money you put into your home’s curb appeal. Entryways are also important. You use it as a utility space for your coat and keys. But, when you’re selling, make it welcoming by putting in a small bench, a vase of fresh-cut flowers or even some cookies.
What home selling secrets do you have to add to our list? We want to hear from you! Sound of on our Facebook Page, Twitter or Instagram feeds or connect with us on LinkedIn. And don’t forget to subscribe to our monthly HOME ADVICEtm email newsletter for great tips for homeowners and sellers delivered straight to your inbox. You may unsubscribe at any time.
5 Reasons You Should Never Buy or Sell a Home Without a Real Estate Agent
You’re DIY’ing this real estate thing, and you think you’re doing pretty well—after all, any info you might need is at your fingertips online, right? That and your own judgment.
Oh, dear home buyer (or seller!)—we know you can do it on your own. But you really, really shouldn’t. This is likely the biggest financial decision of your entire life, and you need Real Estate Agent if you want to do it right.
1. They have loads of expertise
Want to check the MLS for a 4B/2B with an EIK and a W/D? Real estate has its own language, full of acronyms and semi-arcane jargon, and your Real Estate Agent is trained to speak that language fluently.
Plus, buying or selling a home usually requires dozens of forms, reports, disclosures, and other technical documents. Real Estate Agents have the expertise to help you prepare a killer deal—while avoiding delays or costly mistakes that can seriously mess you up.
FREE DOWNLOAD: The Complete Home Buyer Guide
2. They have turbocharged searching power
The Internet is awesome. You can find almost anything—anything! And with online real estate listing sites such as yours truly, you can find up-to-date home listings on your own, any time you want. But guess what? Real Estate Agents have access to even more listings. Sometimes properties are available but not actively advertised. A Real Estate Agent can help you find those hidden gems.
Plus, a good local Real Estate Agent is going to know the search area way better than you ever could. Have your eye on a particular neighborhood, but it’s just out of your price range? Your Real Estate Agent is equipped to know the ins and outs of every neighborhood, so she can direct you toward a home in your price range that you may have overlooked.
3. They have bullish negotiating chops
Any time you buy or sell a home, you’re going to encounter negotiations—and as today’s housing market heats up, those negotiations are more likely than ever to get a little heated.
You can expect lots of competition, cutthroat tactics, all-cash offers, and bidding wars. Don’t you want a savvy and professional negotiator on your side to seal the best deal for you?
And it’s not just about how much money you end up spending or netting. A Real Estate Agent will help draw up a purchase agreement that allows enough time for inspections, contingencies, and anything else that’s crucial to your particular needs.
4. They’re connected to everyone
Real Estate Agents might not know everything, but they make it their mission to know just about everyone who can possibly help in the process of buying or selling a home. Mortgage brokers, real estate attorneys, home inspectors, home stagers, interior designers—the list goes on—and they’re all in your Real Estate Agent’s network. Use them.
FREE DOWNLOAD: The Complete Home Sellers Guide
5. They’re your sage parent/data analyst/therapist—all rolled into one
The thing about Real Estate Agents: They wear a lot of different hats. Sure, they’re salespeople, but they actually do a whole heck of a lot to earn their commission. They’re constantly driving around, checking out listings for you. They spend their own money on marketing your home (if you’re selling). They’re researching comps to make sure you’re getting the best deal.
And, of course, they’re working for you at nearly all hours of the day and night—whether you need more info on a home or just someone to talk to in order to feel at ease with the offer you just put in. This is the biggest financial (and possibly emotional) decision of your life, and guiding you through it isn’t a responsibility Real Estate Agents take lightly.
Did you try the DIY route and the go Agent? Tell us about your experience. Sound of on the Patrick Parker Realty Facebook Page, our Twitter or LinkedIn Feeds or on our Instagram account. And don’t forget to subscribe to our monthly HOME ADVICE email newsletter for articles like this delivered straight to your inbox. You may unsubscribe at any time.
6 Bad Habits to Avoid If You Hope to Sell Your Home in 2017
Everyone has a few flaws. But if you plan to sell your New Jersey home in 2017, these foibles can literally cost you—we’re talking tens of thousands of dollars. What’s more, many homeowners may not even be aware that certain actions can hurt their odds of selling their home (that is, until it sits on the market with no takers).
To help clue you in, here’s a list of regrettable blunders to kick to the curb starting now, even if you plan to put your home on the market next year:
Bad Habit No. 1: Overimproving your home
Dying to install new kitchen cabinets or retile your master bath? Home sellers often assume any upgrades they make to their home will pay them back in full once they sell, but that’s rarely the case. On average you will recoup just about 64% of the money you spend on renovations once you sell—and certain improvements can actually work against you if they’re unusual or undesirable in your market.
For instance, as much as you may be dying for a bidet in your bathroom, many others may not. Likewise, even if you consider a new swimming pool a plus, many homeowners don’t want the hassle of maintaining it (or the dangers if they have young kids).
Do this instead: Check out blog post on Home Improvements that offer the Biggest Return on Investment to see which upgrades provide the best value – and ask your Agent for advice on which amenities are hot (or not) on the Jersey Shore.
Bad Habit No. 2: Renovating without permits
We know it’s a pain to apply for permits before you knock down that wall or add a deck, but this corner-cutting will come back and bite you when you decide to sell. Without proper permits, buyers may worry whether the work done on your place is up to code—and as a result refrain from making an offer.
Do this instead: Don’t be a scofflaw; pull necessary permits. Usually, building permits are required for any renovation that involves opening/building walls, electrical, and plumbing changes.
Bad Habit No. 3: Limiting showing hours
Sure, no one wants to leave their home at dinnertime. But buyers are busy juggling work, family, and looking for a new home. If you limit showings to a few hours on weekends, you might miss a potential sale.
Do this instead: Stay flexible and cooperate with buyer’s agents who want to show your house, even if it’s inconvenient.
Plus, limiting showing times gives buyers the impression that the you may be a “difficult” seller. That can turn them off even more.
Bad Habit No. 4. Overlooking curb appeal
Even if you lavish tons of attention on prepping the inside of your home for buyers, it’s easy to overlook the outside. But keep in mind, your curb appeal is the very first impression buyers have of your home, so it pays to put some elbow grease into prettying up the exterior, too.
Do this instead: Make sure your paint job is pristine and your lawn is tidy and mowed. Also replace dead shrubs, prune trees, put out some potted plants, mulch garden beds, and freshen mailboxes.
Bad Habit No. 5: Relying heavily on open houses
Open houses were a great way to sell a house in, like, 1975. These days, the vast majority of houses are sold through the Internet.
Do this instead: While you can and should hold open houses, don’t depend on them too much. Look for Agents who mine for buyers by using the Internet and Social Media.
Bad Habit No. 6: Not following your Agent’s advice
Sure, you no doubt know more about your home than anyone else. But your Real Estate Agent knows more about how to sell it. And your Agent may make some suggestions you might not like to hear, like that you need a new paint job or that the asking price you had in mind needs to be lowered a bit. It’s tempting to take offense or just ignore this advice, but if you do, you could risk seeing your house sit on the market and grow stale.
Do this instead: Listen to your Agent. That doesn’t mean blindly following all advice. But when it comes to pricing, consider the comps your agent presents, not your gut feeling or wishful thinking. Agents buy and sell hundreds of houses in their career; you’ll probably buy and sell a handful in your lifetime. You’re paying for their experience, so follow their advice.
Want advice about selling your home? Contact us today for a free consultation or visit us on Facebook, Twitter, or LinkedIn. And don’t forget to subscribe to our monthly HOME ADVICE™ email newsletter for articles and tips like these delivered straight to your inbox.
Zillow’s 6 Housing Market Predictions for 2017
Well, as many had been wishing for, 2016 is officially behind us. And as the year came to a close, predictions for the 2017 housing market came pouring in.
It’s hard to say what the new year will bring with the newly-elected President-elect Donald Trump. Zillow points out in its predictions how some of his policies could affect housing next year.
Here are Zillow’s six predictions for 2017:
1. Cities will focus on denser development of smaller homes close to public transit and urban centers.
2. More millennials will become homeowners, driving up the homeownership rate. Millennials are also more racially diverse, so more homeowners will be people of color, reflecting the changing demographics of the United States.
3. Rental affordability will improve as incomes rise and growth in rents slows.
4. Buyers of new homes will have to spend more as builders cover the cost of rising construction wages, driven even higher in 2017 by continued labor shortages (this could be worsened by tougher immigration policies under President-elect Trump).
5. The percentage of people who drive to work will rise for the first time in a decade as homeowners move further into the suburbs seeking affordable housing – putting them further from adequate public transit options.
6. Home values will grow 3.6 percent in 2017, according to more than 100 economic and housing experts surveyed in the latest Zillow Home Price Expectations Survey. National home values have risen 4.8 percent so far in 2016.
Other predictions for next year include this one from Redfin, predicting the fastest real estate market ever, this one from Kroll Bond Rating Agency, this one from Realtor.com and this one from Bank of America.
Like Patrick Parker Realty on Facebook, follow us on Twitter and LinkedIn. And don’t forget to subscribe to the monthly Patrick Parker Realty HOME ADVICE eNewsletter for articles like this one delivered straight to your inbox.
How Do You Find a Real Estate Agent?
There are NO standards for Real Estate Agents. GOOGLE every Agent considered and verify everything they say
Hiring a Real Estate Agent is a job interview – someone is going to be responsible for one of the largest transactions in your life. Incredibly, studies consistently show that the majority of buyers and sellers fail to treat Agent selection seriously.
In a field with few to no established performance standards, ridiculous self-aggrandizement and bogus production reporting, how are the qualified and high producing Agents found? In about 15 minutes with Google search and seven direct questions.
Before anything, GOOGLE every New Jersey Real Estate Agent that you are considering. Real Estate has exploded with the internet; any productive Agent understands and embraces this. Examine reviews, their website, articles, social media…they will be your representative. After that, a few simple and very direct questions will narrow the pool. It’s possible Uncle Jack or Aunt Cathy won’t make the cut.
1. Are you a full-time Agent?
This question must be asked because so many Agents are not, Real Estate is a second, third or fourth job. It is impossible to effectively work part time; the speed of transactions, increased legal requirements and fluid market mandate full attention. Society has been conditioned to expect answers quickly, at all times. Agents that can’t or won’t pay attention cost clients money and opportunity.
2. How long have you been actively selling Real Estate and for whom?
Two years of full time work or about 20 personal transactions is a recommended minimum. The skills required for contracts, data collection, negotiation etc., cannot be taught in a class room. Many “discount” firms exist often housing Agents that want to hang their license at a place that doesn’t charge full fees. Research into the firm is as important as that for the Agent.
3. What are your personal production levels over the last three years?
If an Agent can’t live off their earnings, they are not producers. A full-time Agent should have at least 10-12 transactions per year personally completed, not as part of a team, an office or some other entity. Some Agents tie into office or team production – focus on their production only and be certain to verify this.
4. Verify the figure you are provided and request a copy of their report.
Personal stats must be for the Agent only – not a team or office. Request a copy of their personal production; this can be pulled off the MLS or from their Brokerage firm.
5. Is your managing Broker on site at your office and responsible for it?
Many discount firms have “Broker pools” – not specific managing Brokers that guide Agents. When things go bad and that Agent is clueless, will the Broker step up?
6. Please provide five references over the last year that I can call.
This will verify experience with past clients and by keeping the date within a year; it will demonstrate experience in the current market. Call the references and ask questions.
Also understand the difference between Real Estate Agent references and testimonials vs. reviews. References and testimonials you receive from your prospective next Agent will always present that Agent in the most positive light. Unsolicited reviews, however, are more honest. Websites like Zillow and Trulia are great resources for Jersey Shore Real Estate Agent reviews.
7. Please provide a copy of your resume.
Every Agent likely has an alphabet of nonsensical designations; most are obtained by writing a check. Many Real Estate designations were invented during the crash as a way of generating income for various associations – don’t fall for the nonsense.
These are reasonable, direct questions; others can be added as needed. This type of pre-screening should be completed ahead of any listing appointments or before meaningful meetings begin. Obviously, there are a plethora of additional, more specific questions depending on the circumstances, but a few minutes spent ahead of time will save time and money down the road.
Selection of a Real Estate Agent is arguably the single most important decision a buyer or seller makes. Until consumers demand high standards, the problem of inept and incompetent Real Estate Agents will remain.
How did you successfully interview your last Agent? Or, did you fall just short of all due diligence an end up in a nightmare scenario? Sound of on the Patrick Parker Realty Facebook Page, on our Twitter or LinkedIn feeds, and don’t forget to subscribe to our monthly email newsletter for articles like this one delivered straight to your inbox.
4 Common (but Terrible) Reasons for Overpricing Your Home
We know, we know—you love your house. The kitchen is the perfect size, your weekly summer barbecues give your neighbors patio envy, and your ’70s-style conversation pit is totally coming back into vogue—as you knew it would.
You’ve seen the comps for your neighborhood, but you just know your home is worth more, so you’re going to list it at a higher price.
HAVEN’T SEEN YOUR COMPS? Request A Free Comparable Market Analysis
This is one of a few reasons why sellers overprice their home, and none are smart. If you price your home too high, it’ll take longer to sell, raising doubts in buyers’ minds about whether there’s something wrong with it, and you’ll probably have to drop the price eventually anyway.
So don’t fall for any of these five common justifications sellers use to inflate the price of their beloved property:
1. You have the Midas touch in decor (you think)
The reason that interiors are often painted white or neutral colors before a sale is that that allows potential buyers to envision what colors would make it their home. Your colorful touches might not be for everyone, and can actually devalue your house.
RELATED: To Sell Your Home Think Like A Buyer
Recently an Agent listed a home for a client whose bathrooms were all sorts of strange colors—olive-green toilets, a purple bathtub, and a pink sink. Agents need to be honest with you at all costs – pun intended. But when it was recommended to the seller a price that factored in the cost of necessary updates, things got a little heated.
The owner was upset and argued that the colorful fixtures added value, because people are tired of the all-white, stale hospital look.
So we tried the seller’s way first, listing it for his desired price. It didn’t sell, and buyers gave feedback that the home was overpriced. After weeks on the market, the seller finally agreed to lower the price. It sold within 2 weeks.
2. You’re nitpicking comps
Comps (or comparable market analysis) are valuable reference points that allow you to compare your home to similar nearby homes in order to price it right. But some sellers place too much value on ultimately negligible differences between their home and the comps.
Recently an Agent received the following feedback from a seller; “My home has a 60-gallon hot water heater; every other home has 40. My deck is 60 feet larger. My den has real barn wood paneling.”
While small features like this might be worth pointing out to potential buyers, they are not going to make or break a deal – and trying to price your home based on the size of your deck is a setup for disappointment. Plus, you might not see the flaws in your home – your deck might be big, but it might also need work.
We don’t want to be a downer; by nature, we see life through rose-colored glasses. Sadly, it can cost you when it comes to selling your home.
3. You’re too focused on your ROI
A house is an investment, and everyone wants a return on their investment. Couple that with emotional attachment, and you’re primed to mark up your home’s value.
We often find Sellers think that their house is worth what they want or need to sell it for, but the harsh reality is that a home is worth whatever a buyer is ready, willing, and able to pay for it.
FREE DOWNLOAD: Your Ultimate Home Sellers Guide
Even in a seller’s market, there’s no guarantee that you’ll make money on your house. And just because you need $500,000 to buy that house in Shark River Hills doesn’t mean you can sell your house for the same amount.
4. You’re imagining you’ll haggle
Perhaps the most common reason people overprice their home is because they’re looking to negotiate.
On paper, it sounds like something you’d see on “Pawn Stars.” You offer up a vintage silver tea set at an inflated price. Rick Harrison offers you 25% of that, but he eventually goes up to 30%.
OK, maybe “Pawn Stars” is a bad example, but you get the idea: You price your house 10% higher, fully expecting a buyer to try to lowball you, netting you the price you wanted all along while the buyer walks away thinking he got a bargain.
It doesn’t work like that in real estate.
It’s much better to price it right and create such interest and demand where buyers are chasing you, versus you chasing the market backward [and] searching for the demand.
RELATED: The Importance of Proper Pricing
So don’t be afraid to price your home fairly, or price it based on your Agent’s advice. This is what will attract buyers and boost the price to where it should be.
Ultimately, everything sells when it’s priced right.
FREE DOWNLOAD: Your Ultimate Home Sellers Guide
Did you recently sell your home? What experience did you have when it came to proper pricing? Are you currently selling? What are your proper pricing observations?
Back in the Real Estate Market: Navigating the New Tech-Centered World
What if someone awakened from a long slumber — and decided to sell their home and buy a new one? That’s sort of what many empty nesters and other long-term homeowners face today. Many have paid little or no attention to the dramatically altered real estate market.
It’s not just that prices have changed: The entire buying and selling process has been transformed.
It’s a brave new tech-centered world
Perhaps the biggest change over the past 20 years is that technology has revolutionized the market. Now, consumers can effortlessly access all sorts of information that used to be mostly proprietary; it was hidden until revealed by industry insiders. Today, information is everywhere and the Internet is the first stop for most potential home buyers.
Buyer’s are capable of knowing everything about the homes they’re interested before they buy. Information is out there and Buyer’s can come in armed with all sorts of information about prices, taxes, the community and more.
Take one of the thorniest questions that both buyers and sellers used to face; How much should they offer/ask for homes? Uncovering home value used to involve intricate, bespoke examinations of recent sales within a community. Today, buyers and sellers can get a rough estimate with a few keystrokes.
In addition, Broker websites – like Patrick Parker Realty – add to the wealth of information online about the properties. They also provide advice and explanations on all different aspects of buying and selling; examples:
FREE DOWNLOAD: The Ultimate Buyers Guide
FREE DOWNLOAD: The Ultimate Sellers Guide
Buyers can… get a good sense of the market before you begin to shop. Then, take all that knowledge and work with an agent who has an intimate understanding of the local market.
Sellers can… use real estate sites to come to a better idea of how much their homes are worth, what they’re likely to be worth in the future, and what they need to do to maximize their sale price.
Real estate websites have become increasingly content rich, the Patrick Parker Realty Blog being just one example.
Just a few recent developments; videos shot from drones for aerial looks at how homes fit into the landscape and community; 3-D walk-throughs that enable users to take virtual home tours where they can poke around corners and see what’s behind the sofas; and apps that provide real-time access to activity anywhere within a community.
Buyers can… access price or tax history and inspection information, find out what the local schools are like, neighborhood crime rates, and the home’s proximity to parks, shops, restaurants, and cultural amenities.
Sellers can… access their listing pages and update home facts. They can go online to find out the best time to sell their property in their area. After its listed they can learn how many buyers have looked at their property and how that compares to other, similar homes.
All-told, consumers are much more empowered, much more in charge of the buying and selling experience. They have information at their fingertips that can make them much more prepared and discerning sellers and buyers.
Are you back in the market? What are your favorite online destinations to research and find information?
All Signs A Go For A Strong Selling Season
The number of homes that in April went under contract to be sold climbed to the highest level in over a decade, a sign the housing market is gaining traction and supported by steady job creation and historically low interest rates.
Pending sales of previously owned homes, reflecting contract signings, rose 5.1% last month from March said the National Association of Realtors, handily exceeding the 0.7% rise expected by economists surveyed by The Wall Street Journal.
FREE DOWNLOAD: How to Put Your Home on The Market and Attract Buyers Today
In addition, Pending sales in April rose 4.6% compared with a year earlier, marking the 20th consecutive month of year-over-year gains. Pending sales provide a more up-to-date assessment of the housing market than other measures because they are based on contract signings, the earliest stage of the sales process.
Home Sales Climb to Highest Level in a Decade!
The sales index climbed to 116.3, the highest level since February 2006. An index of 100 is equal to the average level of contract activity during 2001, which the NAR considers a “normal,” or balanced, market for the current U.S. population.
The U.S. housing-market activity continues to improve, and all indications thus far point to a strong spring selling season.
Steady demand for housing has tightened supply and pushed up, but simultaneous low mortgage rates are not deterring buyers.
FREE DOWNLOAD: Your Ultimate Home Selling Guide
Thinking of selling this season? Ask us why now is the perfect time!
Five Renovations that Increase the Value of Your Home
According to HGTV, “Home improvement projects cost about 20 to 25 cents on the dollar. The other 75 to 80 cents spent go directly back into the home through increased value.”
There are some projects, however, that deliver the greatest return on investment.
Here are five renovations that add the greatest value to your home:
Because the kitchen is still considered the heart of the home, it’s the primary area where people seek value in a remodel. When a buyer is walking through a prospective home, the kitchen is generally the first destination on their agenda because families still spend a lot of their time there. A variety of renovation opportunities can increase the home’s value, with projects that work for any budget.
The easiest and most apparent upgrades in kitchens are for countertops and appliances; buyers almost always expect granite countertops in today’s housing market, and there are a number of alternatives to granite slab, such as granite tiles or soapstone, if slab simply isn’t an option. Likewise, stainless-steel appliances add instant value because they won’t ever go out of style due to the neutral nature of their finished look.
A larger project to consider is custom-built, solid-wood cabinetry. If the current cabinets in your kitchen are outdated and made from materials such as melamine, buyers will likely see a project they will need to take on in the future. Determine your budget and decide if extra features, such as glass cut-outs and soft-close hinges, are necessary for your renovation.
In addition, if you have a half or whole wall that breaks up the continuity of the floor plan, consider removing it to open up the space to the living area. Open floor plans are always in style, and they can make the space appear bigger.
The second most important area for buyers is the bathrooms. Bathrooms are often an obvious target for renovations because they provide value easily without requiring extensive costs. Simply cleaning the space or updating it with a fresh coat of semi-gloss paint and some new grout can make a difference, so there you really have no reason not to consider customizing it.
For more involved renovations, buyers want to see updated vanities, tile or stone features and flooring, and floating glass or walk-in showers if the space can accommodate them. Be sure to keep at least one bathtub in the house; families with children require them for bath time. If a shower–bath combo fixture is the only thing that fits, accent it with unique shower curtains that fit the style of the home.
The floors of a house are another area that catch the buyers’ eye because they take up most of the space. Outdated tiles or dingy carpeting, wood that needs refinishing, or noticeable vinyl flooring are likely to be noticed – and red-flagged in a buyer’s mind – as something they’ll have to update after purchasing the home. Simple updates to important rooms can make a big difference in creating a sense of value.
Depending on your budget and style, you can choose from multiple ways to renovate floors. If wood flooring is the best fit for an area, options range from new or refurbished solid wood to engineered hardwood, which looks similar to solid wood but holds up better with time. The same goes for carpet, the pricing for which varies depending on the materials and thickness of padding you choose.
TIP: If you already have solid wood floors but they’re scratched or look lackluster, try refinishing them before you consider a total replacement.
If the structural components of your home aren’t in good condition, your value will plummet. An appraiser will mark off major value points if anything is out of order, and buyers are likely to be scared off by a house that isn’t in certified working order. It’s a potential hazard to their health and safety, and the renovation project will be their responsibility after they purchase the home. In addition, if the inspector marks these areas on their checklist, you may have to fix the issues before the buyer agrees to close or risk legally disclosing the issues publicly in the future.
Because it’s still a buyer’s market, anything that’s not in the best isn’t likely to garner the same attention. For resale purposes, it’s critical that you have everything in working order. Realistically, everything already should be; you shouldn’t be living somewhere with faulty structuring, and neither should a future owner.
RELATED: To Sell Your Home Think Like A Buyer
TIP: If you find issues with the home and have to replace structural pieces, consider going with an eco-friendly option; buyers are becoming conscious of the trend, and it saves money and reduces waste in the long run. Check out New Home Source’s review of green building features to determine which ones will add the most value to your home.
A real estate book is always judged by its cover; before a buyer can see any of the high-value upgrades you’ve made to the interior of your home, they have to like its exterior. If the outside space isn’t updated and clean, potential buyers may not ever step inside. Simply put, if it looks like you don’t care about the outside of the home, it’s going to seem like you don’t care about the inside, either.
Updating your home’s curb appeal can as simple as cleaning things up a bit and keeping vegetation from getting overgrown and unkempt, or it can be as large and dramatic as replacing the lawn and xeriscaping with native, drought-ready plants.
Your home’s exterior is equally as important as your yard; fresh paint and clean windows can go a long way, and installing a new statement door is a guaranteed booster. If the outside looks organized and taken care of, buyers will have a sense of care and value – even if you invested minimal amounts of time and money.
If you have the space for a deck or porch, adding one is almost a guarantee that you will get your money back in the form of increased value. It’s important to have some sort of shaded structure that protects the front door – especially in areas with heavy weather and sun – so adding anything to a bare front will help. Manicured backyards are always a plus for buyers, even if they won’t use them. Regardless of your climate or the style of your home, decks and porches are features worth adding.
Realtors are often split on lighting renovation projects in terms of their added value; some say buyers love seeing built-in recess lighting and updated fixtures, but others claim that doing anything more than adding a dimmer to current lights is a wasted effort because buyers will probably customize the features anyway.
In the current real estate market, open floor plans are hot; if you want to sell soon, look for areas in your home where you can remove walls that aren’t load-bearing or take out clunky kitchen islands that don’t add to the room’s appeal. Buyers want a wide-open floor plan, and doing some of the work yourself isn’t likely to set you back too much.
Additional Tip for Today’s Sellers
Do your best to keep the value of the home in the same range as the other homes in the neighborhood; at first glance, it might seem like a good thing to out-value surrounding homes, but buyers are often wary of a house that’s too valuable to match its surroundings because it seems out of place.
FREE DOWNLOAD: How to Put Your Home on The Market and Attract Buyers Today
If the resell value is the only reason you’re renovating, it’s a good idea to conform to certain guidelines for each area of your home. If the changes are just for you and you’re only thinking about your selling ability in the future, have some fun and do it your way. Styles will always change, and if you love the updates now, they won’t represent wasted effort.
Did you recently sell? What improvements to your home did you find yield the best return on investment?
Photos source: HGTV
Warning: Invalid argument supplied for foreach() in /home/patri034/public_html/wp-content/themes/parker/category.php on line 36