IN MAY’S ISSUE 5 Pricing Myths Sellers Probably Believe Tropical White Elephant 3 Tips for Spring Cleaning
COMMUNITY PROPERTY
FEATURE
IN YOUR CORNER
LIVING LARGE
IN YOUR CORNER
M AY 2 0 2 1
3 TIPS FOR SPRING CLEANING
COMMUNITY PROPERTY TROPICAL WHITE ELEPHANT
FEATURE STORY 5 PRICING MYTHS SELLERS PROBABLY BELIEVE
LIVING LARGE 5 HOME FEATURES THAT COULD IMPACT YOUR INSURANCE RATE (AND UPGRADES THAT CAN LOWER IT)
MARKET UPDATE CURIOUS IF PRICES ARE UP? WHAT’S THE MARKET DOING? WE’VE GOT ANSWERS!
©2021 Coldwell Banker Real Estate LLC. A Realogy Company. All Rights Reserved. Coldwell Banker Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each Office Is Independently Owned and Operated. Coldwell Banker, the Coldwell Banker Logo and “We Never Stop Moving” are registered service marks owned by Coldwell Banker Real Estate LLC. All information deemed reliable but not guaranteed.
The cover image was photographed by HEATHER FORD.
3
Tips for a Trendy
Cleaning
The following is a guest post by KAITLIN ONG originally published on Blue Matter, Coldwell Banker’s Blog.
Ready to get tidied up? Here are some tips for making the most out of this year’s Spring cleaning! A
B
With the arrival of warm weather and sunshine comes spring cleaning! While the idea of cleaning may seem mundane, we’ve broken down the gargantuan home task into three main areas to focus on. If you are preparing for virtual showings or just tidying up but just aren’t motivated to get started, check out these tips and tricks!
1
Tidy Up Those Bathrooms
It may be the one place everyone dreads cleaning, but make sure you don’t skip cleaning the bathrooms – especially when getting ready for virtual showings! Agent Roger Willcut of the Coldwell Banker King Thompson Metro Office found that while most sellers focus on cleaning up the focal points of the home (kitchen and living areas especially), dirty sinks, toilets, showers, and tubs are often forgotten about. Make your bathrooms shine and let potential buyers imagine themselves unwinding in a clean, spa-like master bath. Simple things like a fresh set of towels and clearing the vanity space are also easy ways to refresh your bathroom. While you are emptying drawers and clearing off countertops, take the time to do a deep clean and declutter any old/ expired products. C
2
Get Organized!
Spring cleaning isn’t just window cleaning and vacuuming. You’ll also want to organize! Take a page from organizing experts like Marie Kondo and think about the things that spark joy – and the items that you use every day. Agents Laurie and David Turner of Coldwell Banker Pasadena recommend editing, urging sellers to “begin the decluttering process way before you put the home on the market. You’ll be rewarded in the end with an easier move! Design trends come and go, but a clean, bright and fresh home goes a long way.” Tackle organization little by little to avoid getting overwhelmed. For example, instead of focusing on an entire room, work through one set of drawers at a time. Setting realistic goals for yourself can also make organization and decluttering less daunting. One great way to tie in current trends is with convertible furniture pieces. “I’ve seen a lot of cool things that can really help with organization and tidiness, whether it be built-in closet systems or coffee tables that feature hidden storage compartments,” said Roger. “Sometimes in smaller urban spaces, we’ll see cabinetry that can double as a desk, entertainment stand and sometimes even have a murphy bed.”
3
Head Outdoors
Don’t neglect your outdoor spaces, especially when listing your home! “[In Ohio], as the weather continues to improve, we see buyers putting more and more emphasis on outdoor space,” explained Roger. “Some sort of outdoor space is generally important to people whether it be shared or private, but as spring approaches, it begins to be something that buyers are more focused on.” Here in Florida, where the weather is often sunny, outdoor upkeep is a must. With the trend of indoor/outdoor living on the rise, it is even more important to ensure that the backyard matches your immaculate interior living areas. Dust off any outdoor furniture and consider investing in some outdoor storage like a shed or deck box to hide clutter and seasonal items. Laurie, David, and Roger also encourage sellers to think about what instantly catches the eye of potential buyers – the curb appeal of the home! “The one thing in real estate that has NOT changed is that everything begins with a good first impression, and that starts at the curb not, the front door,” Laurie explains. “Make sure your yard and garden look fresh and up to date.” Consider mowing the lawn or trimming back the hedges and clearing off the front porch. And don’t forget to take care of the windows so you can enjoy the views without dirt getting in the way!
Whether you are getting ready to list your home or just trying to tidy up and stay organized, these steps will help you get your abode squeaky clean! Photography provided by the following in order of appearance: Crema Joe (A), Taylor Beach (B), and Sanibell BV (C).
Tropical White ELEPHANT It is May, and in Florida, that means the sunny weather is in full force, and let’s face it, summer is almost here. If you are looking for a quick day trip from Mount Dora, why not explore Honeymoon Island, State Park. It is the perfect little oasis off the Gulf of Mexico. While you ponder your day trip to the state park, let’s take a look at Honeymoon Island’s history. The island was originally inhabited by the Tocobago tribe, but by the 16th century, there were a variety of settlers, from early European settlers to pirates and even pig farmers. Until the Hurricane of 1921, the island and nearby Caladesia Island were one. The Hurricane of 1921 ripped through the larger island splitting it in two and created what is called Hurricane Pass. Honeymoon Island at that time was named Hog Island for the hog farm that resided there until Clinton Washburn purchased it in the late 1930s.
Clinton Washburn was a real estate developer
who purchased the 291-acre island originally to flip quickly. Unfortunately for him, the country was still in the midst of the Great Depression, and not many people were in the market for islands reachable only by boat. B
Lucky for him, an offhand comment to his good friend, the Editor of Life Magazine, changed his investment and coined the island’s name. At lunch one day, while being teased for not selling his “tropical white elephant,” he retorted how the island would be a great place for a honeymoon.
That offhand comment sparked a gimmick the two men hatched to get tourists to the island- a contest “Florida Developer Offers Free Honeymoons on Tropical Island” in Life Magazine and a 1940 Paramount newsreel. The contest searched for newlyweds married for a short time to win a free week-long stay in one of their Honeymoon Cottages. Apparently, newlyweds Ronald Reagan and Jane Wyman applied to the
A
contest but were regrettably rejected because they were married longer than the three-month marriage requirement, a mere four months. Thousands responded with letters to Life Magazine, and 164 couples were selected as contest winners for their trips throughout the first year.
C
H
Fifty honeymoon bungalows were built and were essentially thatched-roof huts with no electricity and a Butane stove. The cottages featured adorable names like “Lovey Dovey” and “Love Nest.” The island also housed a chapel, pier, and “King Palace.” The newlyweds enjoyed fishing, sunshine, and married life during the day and at night had campfires F complete with sing-a-longs and King & Queen of the Island winners. After the contest winners’ visits were done, D Washburn started charging couples $25 a week. Washburn’s honeymoon paradise would last until the US entered World War II. The island was leased by a defense contractor from Ohio who turned it into an R&R facility for his defense plant workers. Part of the island was used to test vehicles built for the war effort by the defense contractor. Following the war, the island fell into disrepair, and Washburn was ready to sell the island again. This time he found a buyer in Arthur Vining Davis for over half a million in 1957. Davis’s attempts to develop the land would eventually fail, and he sold 113 acres of Honeymoon Island to the state of Florida in 1974, and by 1981 they would purchase the rest of the island.
The bungalows are long gone, but the Honeymoon Island State Park still has thousands of visitors (including nostalgic lovebirds) every year to enjoy over 500 species E of plants and animals, and picturesque sandy beaches.
Photography provided by the following in order of appearance: Anita Denunzio (A), Edited display image from Honeymoon Island display, original image from Life Magazine, Florida State Parks (B), Florida State Parks (C), Florida State Parks (D), Florida Department of Tourism postcard (E), and Honeymoon Island State Park Hidden Gems, FLorida State Parks (F), Florida Department of Tourism (G), and Honeymoon Island State Park One with Natu, Florida State Parks (H.)
G
A
FIVE Sellers Probably Believe The following is a guest post by CARA AMEER originally published on Inman News.
Pricing a home is most definitely an art versus a science. Although market data can provide good intelligence about how a home should be priced, there are a variety of factors that go into determining the actual listing price, what the data says, what an agent recommends, and what the seller wants are often completely different things. Here are the top five myths that sellers believe about pricing:
1
The higher a home is priced, the better chance the seller has of getting close to their asking price. This is one of the single largest myths in real estate and one that sellers love to latch onto. It can also be one of the biggest myths for a real estate professional to overcome. Usually, the opposite is true. Sellers are often disappointed when the initial activity is soft, and showings seem few and far between. Overpriced results in a loss of valuable marketing that the seller cannont back. Subsequently, if a seller relents and agrees to lower the price to what it should have been in the first place, showings do start to happen; but by this time, the property is starting to season, and agents and buyers are taking notice of the days on the market.
2
If I give a buyer the closing date they want, I will get my price. Not necessarily. Figuring out an agreeable closing date can often be a dicey issue in a negotiation. Although it would seem rather straight forward, in today’s uber busy world, everyone seems to have a ton of stuff going on including international travel. If the closing date the buyer wants is when the seller has planned to be out of the country and there is no way they could possibly vacate in time or alternatively, the buyer won’t be available to close when the seller wants.
3
If I include a lot of extras with the sale, that will help me negotiate a higher sale price. This one is a huge wildcard. Everyone already has “stuff” — and too much of it at that. A seller who assumes that a buyer is going to see a lot of value in including furniture, televisions, the barbecue, Green Eggs and Ham, or the patio and pool furniture might be in for a rude awakening. If it is really nice, in exceptional condition and very much on trend, then maybe. I’m talking about Restoration Hardware, AirHaus, Frontgate, Pottery Barn and Brown Jordan. Not things from 10 years ago or outdoor furniture that is starting to look worn, corroded or rusted out. A seller who attempts to push their belongings onto a buyer with a counteroffer risks being highly disappointed on a number of levels. Doing so assumes the buyer sees value in what the seller has and that the buyer will be agreeable to going up in price for the items being included. Often, there is a huge disparity between what the seller thinks furniture items are worth and how a buyer sees it. Never mind that the seller paid “x” amount for them, or they were custom made or special order. The word custom only means more to the current owner than another person. After all, one person’s tastes are not another. Many buyers don’t think it is worth paying significantly more for a home to have a bunch of used stuff. The technology with televisions, for example, changes so rapidly that a buyer might not be interested in televisions that are already 2-3 years old. A buyer will likely counter back at a lower price and might only want one or two things, to which the seller feels the counter offer is still too low. Leave furniture and other items out of the equation until after you’ve reached agreement on price. If a buyer really wants something, they will ask for it as part of the offer.
4
Selling ‘as is’ means the buyer won’t try to lower the price after the inspections. Unfortunately, that might not be the case. Although a seller can stipulate that they wish to sell “as is” upfront, a buyer will still want to conduct their own due diligence. It’s possible that they’ll get cold feet after inspections, and they might feel that they’re overpaying at the agreed upon contract sales price. There is always a fear with “as is” purchases that a buyer is taking on far more than what meets the eye. Usually what you can’t see can hurt you the most, and you won’t find out about that until you are well into the renovation project. So a renegotiation can and does happen. Putting an “as is” on the listing does not protect a seller’s asking or agreed upon price, no matter how low or under market value it may appear to be.
5
If I come down ‘X amount’ in a negotiation, the buyer needs to come up proportionately to my price reduction. No one said real estate was fair. As many attorneys have said, “Justice is what you get in the next life,”and so is the case with selling a home. A seller may come down $20,000 in a negotiation and the buyer only comes up $10,000 and won’t budge any more than that. Should the buyer come up more? Perhaps, but the proverbial question always ensues: What is the property worth in the eyes of the buyer or seller? This is where the disconnect comes in, and agreement cannot be reached. The harsh reality about selling a home is that the market rarely thinks as highly of it as a seller does, no matter how nice or well-maintained it is.
B
B
The buyer often has a surface level view, and the things that a seller thinks a buyer would zone in on about the house couldn’t be further from the buyer’s mind. This is the glass half-full versus half-empty phenomenon. Even when a home appears to be well-priced, it is rare that any agent will actually state that in showing feedback in case their customer wants to make an offer. Besides understanding the data, pricing a property properly requires finesse, innate market knowledge that a comparable market analysis and the internet cannot provide, along with sheer gut instinct. That voice in agents’ minds that speaks to them as they walk through the home is always spot on. If only sellers could hear that voice, they might see pricing differently.
Photography provided by the following in order of appearance. Neonbrand (A), Giorgio Trovato (B), and Jana Sabeth (C).
C
5
Home Features that could impact your
B
Rate
(and upgrades that can lower it )
The following is a guest post written by PAUL MARTIN posted by SAM SHALOM originally published on Blue Matter, Coldwell Banker’s Blog. Edited by Chelsea Cornelius.
The way home insurance rates are calculated can seem like a mystery. However, once you understand the mindset of the insurance company, it becomes easier to figure out. To lower your home insurance rate, you’ll need to honestly review some key features of your home that could be costing you big bucks. Take these upgrades that commonly impact rates into consideration, and you may start writing smaller checks.
1 2 3
The condition of your plumbing
One of the biggest concerns an insurance company has is a home’s plumbing system. Damage from water leaks is among the most common home insurance claims, and it can cost both you and your insurance company big time. Older homes (built in the ’80s or before) are at higher risk and might require you to pay higher premiums. Updating your home’s plumbing system is very attractive to an insurance company, and they’ll reward you for it. However, updating the entire house at once can be costly. Making changes to the water system one room at a time, such as the kitchen or bathroom, can still help.
The condition of your wiring Another big concern for insurance companies, particularly in older houses, is the wiring system. Older buildings may have had aluminum wiring installed, making the home more susceptible to fire, and therefore, expensive premiums. Also, older homes may have wiring that is no longer up to state code, which could negatively impact your rate. Insurance companies take note of homeowners who put in the effort to update their wiring system. Decreasing the risk of fire damage, as well as bringing any aspect of your home up to the current state code, can have a dramatically positive impact on your insurance rate.
The condition of your roof An older, weathered, and the weak roof is one of the biggest features that can cause your rate to skyrocket. Especially in regions of the country prone to hail, replacement costs can be huge for insurance companies, as roof damage commonly extends beyond what a deductible covers (often reaching between $9,000—$20,000).
Depending on where in the country you live, upgrading your roof to hail-resistant or dent-proof shingles will eliminate a major risk factor for both you and your insurance company. Homes with these upgraded roofs installed most likely won’t need a replacement for decades, and insurance companies will reward the homeowner for it.
A
D
4 5
The addition of fire-suppression features
Fire damage is another one of the biggest home insurance claims in both frequency and cost. Fires may be caused by accidents within the home, natural disasters, or any number of incidents. No matter where someone lives, the risk of fire damage is always present. Any installation of fire-suppression features, such as sprinkler systems, is highly attractive to insurance companies. Though installing a sprinkler system can be costly (typically between $8,000—$10,000), it can save you in the long run, with both peace of mind and a much lower insurance rate.
C E
The addition of a security system Theft losses are another frequent and pricey home insurance claim. A burglar may not only steal from your home, but they may damage it upon their intrusion. A lack of security features for the home is frowned upon by insurance companies.
Installing a burglar alarm and displaying the signage that your home is equipped with such a system can significantly reduce your risk of break-ins and theft. The less attractive your home becomes to burglars, the more attractive it becomes to your insurance company. Spending money on a security system upfront can save you on insurance in the long run. There are also Smart Home systems that combine security and technology to make your home efficient and secure.
If you do upgrade any of your home’s features, reconnect with your insurance agent. Your insurance company will, ultimately, set you up with a rate that matches your home’s updated condition. Paul Martin, CPCU, is an insurance professional for Trusted Choice with over 30 years’ experience in the field. Throughout his career, his mission has been to advance the insurance industry through education to be better equipped to serve the public.
F
Making your home more energy efficient and improving its security are often primary concerns for people considering integrating smart technology into their homes. Peace of mind and knowing your family is safe are far more powerful reasons than just being able to adjust your “smart” thermostat and lower your insurance rate. A Smart Home uses internet-connected devices to enable the remote monitoring and management of appliances and systems, such as lighting, heating or security. Ask your
Coldwell Banker Vanguard Agent
about the seven “smart” home devices that could pay off if you ever decide to sell your house. Or if you’re interested in learing more about home insurance savings possible with Smart Home devices.
Photography provided by the following in order of appearance. Sebastian Scholz Nuki (A), Adrien Olichon (B), Robin Joshua (C), Sieuwert Otterloo (D), Ave Calvar (E), Ralph Ravi Kayden (F).
MARKET UPDATE FEBRUARY 2021
MARKET BREAKDOWN What does this mean for BUYERS?
If you are looking to buy be prepared for some serious competition and slim pickings. The days of twenty or more options are no more. Your agent needs to be a fierce negotiator and consider being a bit more flexible than you might be in a buyer’s market or even a normal market. If you find a house you love don’t hesitate, it may not be available tomorrow.
What does this mean for SELLERS?
Seller’s Market seems like it is here to stay for the forseeable future. The low inventory means sellers have more control over pricing but while buyers might be willing to make some concessions. If you’ve been considering selling this might be the time to contact your Coldwell Banker Vanguard Agent. They will provide a complimentary market analysis on your home.
Want the latest market data when its available? Ask your agent if they are a part of the MLS MARKET UPDATE program. www.CBVHomesearch.com
GUIDING
YOU HOME Since 1906
Coldwell Banker Vanguard Realty 1898 N Donnelly St Mount Dora, FL 32757 www.CBVHomesearch.com