Saturday, June 21, 2014
3
HOW TO MAKE BUYERS WANT YOUR HOME Written by Phoebe Chongchua
Your home is listed on the Multiple Listing Service (MLS) and the sign goes up in your front yard. Now what? Sit back and let the offers roll in. Of course, that’s what every seller wants but that’s not always what happens. So, let’s rewind a bit and see what can be done to make buyers want your home. The steps you take before you actually put your home on the market can help to ensure interest in your home. Start by creating a “buy-me-now” attitude. How’s that done? Several ways. Take a good look at your home and decide which, if any repairs, need to be made. Are you selling “as is” or do you want to put a little money into your home and fix some surface problems that could potentially distract or concern buyers? Next, clear away clutter. If you don’t have any place other than your home to put your boxes and extra furniture that you’re taking with you on the move, try storing them in the garage or on the side of the house. If you do this be sure that you don’t stack your boxes so high that you block views to the outside. When you block a view, buyers may think you’re hiding something bad about the property or they may have a very closed-in feeling when they enter that particular room. Buyers do understand that you’re moving and things may be a little out of order, but try to keep that to only one room or half of the garage. You want to make sure that buyers can see your entire home. Limiting them from viewing one or several rooms may discourage them. Tidy up and keep things packed away.
Always keep in mind that more room and more storage space are two things buyers really like. Create a feeling of openness and spaciousness by trading out, or removing entirely, bulky pieces of furniture that suck up square footage in a room. Instead find another piece of furniture that can fit into the room... maybe something from another area of your home. Even if it’s not an ideal placement for you, do it anyway. Remember, the idea is to show your home in its best light. More space is a huge plus. Another way to make a room look larger is to use mirrors. Strategically hanging a mirror on a wall can help open up the room. Your agent may elect to hold an open house and prior to that list your home on the MLS but not allow any showings until the weekend of the very first open house. This can be an excellent strategy because you may end up with lots of buyers passing through for that first open house since they couldn’t see your home sooner. You can then allow showings by appointment for a period of time. This strategy can generate a lot of interest and even start a bidding war. May the highest and best offer win. Do your work and clean up before you open the doors to buyers. You don’t always get another chance, so make buyers want your home by showing them that you’ve loved and cared for your home and now you’d like to see it go to buyers who will enjoy it like you did.
Saturday, June 21, 2014
THE CMA IS JUST ONE TOOL IN YOUR AGENT’S BASKET Written by Blanche Evans
The comparable market analysis, otherwise known as a CMA, is a popular tool real estate agents use to help consumers determine their listing prices when they’re selling a home. A CMA can tell you what other sellers are asking and what prices others accepted. A CMA can also tell you much more -- how similar your home is to ones on the market or that have recently sold. Are the homes you’re comparing of similar age and square footage? Are they close by? How many bedrooms and baths do they have? What size are the lots? Are the homes the same type as yours - single-family, townhome or condominium? A CMA can give an up-to-the-minute look at similar homes that have recently sold or are currently on the market. But that’s also why a CMA is useless almost as soon as its created -- the market changes constantly. All it takes is for one of the homes on your CMA to sell, drop in price, or be withdrawn from the market for the CMA to be out of date. Or, a new home can come on the market for a higher or lower price; that will also create the need for fresh information. That’s why agents can’t guarantee that your home will sell for what you list it for, nor can they guarantee that a buyer will offer what you think your home is worth. Every CMA is unique. Your agent inputs search perimeters into his or her multiple listing service database that are close to the size, location and features of your home. CMA software produces a report containing similar homes that have recently sold or are currently on the market. Another agent can input similar search perimeters and come up with different results, by changing one or two search features. There is much a CMA can’t tell you about your competition -- whether a home backs up to a highway, whether it’s in poor or good condition,
and if it’s been updated and how well. For those data, you have to go inside the homes and see for yourself which isn’t always possible. And that’s where your agent can be invaluable. With his market knowledge, or her neighborhood expertise, your agent can give you the house-by-house intelligence that you need to make a better-informed decision in pricing your home for sale. When your agent presents you with a CMA, ask questions. Why is this similar house more expensive than the one just like it? Why did this home sell in a few days while others languish on the market? Are homes selling for more or less than they were, and selling more quickly or slower than they were? Ask to see the other homes for sale on the CMA, so you can see the competition’s updates and floor-plans for yourself. That’s when a CMA is most useful -- by helping you choose the right listing price for a quick sale.
6
Saturday, June 21, 2014
YOUR HOME: PUTTING THE FIVE-YEAR PLAN TO WORK FOR YOU Written by Jaymi Naciri
Thinking of selling your house? Has it been under five years since you bought it? You might want to slow it down (unless you’re swimming in equity from a crazy smart purchase you made at the perfect time or have a flip you’re ready to unleash, of course). Same goes for those who are getting ready to buy - especially for the first time. It’s the five-year rule, and it’s touted by experts as an important real estate guideline to follow if you want to make a smart decision that meets your financial and lifestyle needs. “When you purchase a house, the general rule is that you want to be sure you’ll be in the same location for at least five years. Otherwise, you’re probably going to take a hit financially,” said Money Ning. “The first hit is your closing costs. Every time you go through closing - buying and selling - money hits the table. Depending on where your house happens to be, the buyers and sellers pay different amounts, but everyone pays something. This can easily add up to thousands of dollars, and limiting how often you have to pay that kind of money is always a good idea.” The second hit is in the interest/equity balance. “When you take out a 30-year mortgage, the vast majority of your monthly mortgage payment is going to go toward interest charges for the first few years of the loan,” said Mortgage Loan. “The portion of your mortgage payment that goes toward interest is shrinking all the time, and the five-year point is typically where you begin to get some real traction in building equity, which makes your interest payments fall even faster. So the five-year mark is generally considered the point where your accumulated equity begins to exceed what you might have saved by renting, though it may vary depending on the terms of your loan and the cost of renting vs. buying in your area.” It makes sense. But it also goes against many people’s real estate human nature. We aren’t necessarily conditioned to buy a home
with an expiration date in mind. Yes, there’s the buyer who’s already got his eye on the move-up prize with a two-year max when he’s buying his first home (and many of us have been that guy, and many of us have watched that two years turn into four or six when market conditions didn’t cooperate or life changes got in the way). But real estate is a largely emotional purchase, especially for first-time buyers. What we want today may not be practical a few years out, but thinking about future needs can be tough when we’re seduced by gleaming floors and a wood-burning fireplace. We don’t always put a “sell date” on the home we’re buying. But should we? Well, yes, if the goal is: • making a smart purchase that has the best chance of paying off financially • creating a longterm family plan • creating a comprehensive savings plan if you are looking to move up • developing a clearer vision on how to treat home repairs, updates and upgrades so you spend smart When it comes to fixing up your house, you’ll want to do a cost-benefit analysis. “Think about what you, the current homeowner, want from your home,” said US News. “Homeowners can get a lot of value out of renovations before they even put the home on the market. “If you have a dated
kitchen or the stove doesn’t work, you can invest money now to glean some enjoyment as well as make the home more appealing when you sell it.” If you know you’re going to live in the house for five years, you may opt to upgrade an older, marginally functional air conditioning unit when you move in, and not when you’re getting ready to sell, so you can enjoy it during your time in the house. Ditto those crusty old kitchen appliances. But you might not rip up your entire kitchen to the tune of 50k or renovate your attic for your sevenyear-old twins who “will need the space some day.” When they’re 12 and you move on to your bigger house at the end of your five-year plan, you’ll be happy you didn’t spend $100,000 to add a tween wing.
from the
Saturday, June 21, 2014
7
e u s s I l o o h c S Back to 1 t s u g u A y a d Fri e u s s I y a d i l o H 3 r e b o t c O y a d Fri