DOWNSIZING 101 PRESENTED BY: JENNIFER HERRON UNDERWOOD, REALTOR HOWARD HANNA
WHO IS JENNIFER HERRON-UNDERWOOD? • 20 year veteran in the real estate industry • Local Grafton Township resident • Involved in the community & children attend Midview Schools • Howard Hanna Realtor
• Certified Negotiation Expert • Senior Real Estate Specialist (SRES)
WHAT IS AN SRES? • Senior Real Estate Specialist • Trained to help manage the financial as well as the emotional challenges of selling a family home • Create a customized plan to market your home • I can provide a vast network of movers, attorneys, home inspectors, and other experts to help in the process
Understanding Today’s Real Estate Market ·Prepping Your Home For Sale
TODAY’S AGENDA
· What A Home Inspector Looks For · How To Price Your Home How To Stay Safe & Show Your Home · Buyer’s Financing & Contracts · Questions & Answers
TODAY’S REAL ESTATE MARKET
IS IT A BUYERS’ MARKET, A SELLERS’ MARKET OR A BALANCED MARKET? • The type of market it is driven by how many months of housing inventory is available.
• Housing inventory is the number of houses for sale vs how many are selling a month.
WHICH MARKET IS IT? • What is a seller’s market? • A seller’s market is when there is 0-3 months of housing inventory • What is a balanced market? • A balanced market is when there are 4-6 months of housing inventory available. • What is a buyer’s market? • A buyer’s market is 6.5 + months of housing inventory.
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It’s an aggressive market.
We have a shortage of inventory.
Interest rates are still some of the lowest rates we have experienced.
In most areas homes are selling in 7-21 days.
It is common to receive more than one offer on a home.
THE DO’S & DO NOTS OF PREPPING YOUR HOME Do
Don’t
Paint
Overspend on costly updates
Update your hardware
Try to fix things yourself
Service your major mechanicals
Have a smelly house
Spruce up the exterior Declutter & Depersonalize
CONSIDER PRE-INSPECTIONS
PRE-INSPECTIONS WILL HELP YOU AVOID SURPRISES LATER ON IN THE TRANSACTION AND WILL HELP CREATE A MORE SOLID REAL ESTATE DEAL.
WHAT TYPE OF PRE-INSPECTIONS TO CONSIDER?
RADON TEST
ADDITIONAL PRE-INSPECTIONS TO CONSIDER
SEPTIC INSPECTIONS
GENERAL HOME INSPECTION
GENERAL HOME INSPECTION TIPS General: ✔ Display any repair receipts or notes on the kitchen counter for the inspector to view. ✔ Make sure nothing is blocking areas that the inspector will need access to. Exterior: ✔ Make sure all the dirt and landscaping material is away from the siding of the house. There should be 46 inches of clearance beneath the siding of the house. Plant growth should be cut back away from the house at least 10-12 inches. ✔ Check the siding and trim for any damages and repair as needed. ✔ Repair missing caulking around doors, windows and over nail heads. ✔ All exterior doors and door knobs/deadbolts should be operating properly and repair any damaged weather stripping. Roofing & Gutters: ✔ Repair any damaged or missing roofing.
Clean out gutters and repair any damages to the gutters such as rust through or sagging. All downspouts should diverted away from the house, either with elbows or splash blocks or drain lines. Garage: ✔ Check the garage door opener and adjust it as needed so it properly reverses against pressure or with safety eyes. ✔ Make sure the garage door itself is operating properly. Interior & Attic: ✔ Check interior doors and windows to make sure they are operating properly. ✔ Make sure smoke and/or CO2 detectors are in place and functional. ✔ Remove any stored items from the attic space. Check to be sure all fan ducts are properly connected and venting outside the attic space. ✔ Ensure that there is nothing blocking access to the attic entrance.
PLUMBING: ✔ CHECK YOUR WATER HEATER FOR ANY LEAKING OR DAMAGE. ✔ MAKE SURE THE WATER HEATER PILOT LIGHT IS ON. ✔ LOOK FOR ANY LEAKS THROUGHOUT THE HOUSE. HEATING & COOLING: ✔ INSPECT YOUR FURNACE FILTER AND CHANGE, OR CLEAN, IF DIRTY. ✔ REGARDING AIR CONDITIONING, MAKE SURE ALL DEBRIS IS CLEANED AWAY FROM THE EXTERIOR COMPRESSOR. ✔ REGARDING A GAS-FIRED APPLIANCE, WHICH UTILIZES A PILOT LIGHT, SUCH AS A GAS LOG FIREPLACE OR OLDER FURNACE, MAKE SURE THE PILOT LIGHT IS ON. CRAWL SPACE: ✔ REMOVE ANY DEBRIS. ✔ REMOVE OR REPLACE ANY DAMAGED, FALLEN FLOOR INSULATION. ✔ RECONNECT ANY DISCONNECTED HEAT DUCTS. ✔ REPAIR ANY DAMAGED FOUNDATION VENT SCREENS AND MAKE SURE ALL FOUNDATION VENTS ARE CLEAR.
Kitchen, Utility & Bathrooms: ✔ Check for leaks under the sinks and around the faucets. ✔ Look for possible floor damage around toilets and adjacent to tubs and showers. ✔ Make sure that all grout and caulking is in good repair. This includes tub and shower surrounds along the floor in front of the tubs and showers. ✔ Check to be sure all fixtures, fans and appliances are working properly. Electrical: ✔ Make sure all light switches are functional and any burned out lights are replaced. ✔ Make sure all outlets, junction boxes, and receptacles have cover plates.
WHAT IS OVERPRICING IN TODAY’S MARKET WHAT IS A STRATEGIC WAY TO PRICE YOUR HOME TODAY
THE DANGERS OF OVERPRICING
PRICING STRATEGIES
Marketing Factors
Who Controls
Marketing Plan
Your Howard Hanna Realtor
Home Condition
Seller
Price
Seller
Value
Buyers
THE FLOOD OF BUYERS HAPPENS IN THE FIRST 21 DAYS
SAFETY PRECAUTIONS JENNIFER IS TAKING TO PROTECT HER SELLERS
I am providing 3d virtual tours on all homes I am listing.
https://my.matterport.com/sh ow/?m=kJaJP5hZQya
I am encouraging all sellers to require a preapproval before showing their home to a potential buyer.
I am limiting the amount of time a buyer can spend inside the home. If they need more time they can finish on the exterior.
I am asking all sellers to turn on lights and open closet doors prior to leaving.
I am asking buyers and realtors to wear masks and either sanitize or wear gloves to the showings.
SAFETY PRECAUTIONS JENNIFER IS TAKING TO PROTECT HER SELLERS
I am asking a lot more questions about buyer, type of financing, job, and credit scores
I am calling loan officers prior to accepting an offer to confirm they have actually reviewed buyer documentation
BUYER’S FINANCING • Conventional Mortgage • Buyer has typically 5% or more for a down payment.
• FHA Mortgage • Buyer typically has 3.5% or more for a down payment.
• VA Mortgage • Buyer can buy with $0 money down
• USDA Mortgage • $) money down program driven by location
CONTRACTS & CONTINGENCIES WHAT’S THE MEAT & POTATOES • Most contracts will have a contingency. What are the common contingencies? • Home Inspection Contingencies • Financing or Appraisal Contingencies • Completion of a successful sale • Home sale contingency?
CONTRACTS & CONTINGENCIES WHAT’S THE MEAT & POTATOES • ·What is a concurrency and why would I consider it as a seller?