Selling Your Home - Part 1

Selecting a Realtor®:

Getting your home ready for the market is something you can do well in advance of the sign going up in the yard. Regardless of your time frame for selling, the first and and most important task is to choose the right Realtor®
Remember when you were a kid in school and the teacher wanted the class to play a game and she would ask: "Who wants to be first?". Then hands would fly up all over the classroom with everyone yelling "Pick Me!" The same will happen when you begin your search for a Realtor®. You will be asking: "Who wants to list my house?" and many agents will asking you to "Pick Me!"
Finding the right Realtor® is not the easiest task to do. However, selecting your Realtor® early in the process allows you to develop a relationship with the person and, also, allows the Realtor® to understand your needs.  Asking the right questions allows us to make sure we are providing you with the best advice and service to get you on your way.

Below is a list of resources you can use to get the names of qualified Realtors® in your area:

Referral:

Word of mouth is the old proven way of finding out just about anything. No one is afraid to speak their mind when asked. Speak with your friends in the neighborhood, at work, church, etc. and ask them if they have had an exceptional experience with a Realtor®. Then get the names so you can begin your research.

The Neighborhood Expert:

If you are in a subdivision, there is probably one or two Realtors® that have built up a good business and reputation there. Observing the for sale signs will tell you who these agents are, should you not already know from living there. Doesn't mean they may be the right fit for you, but they need to be on the list of possibles.

The Internet:

In today's market, a very large number of people search for their next home (and Realtor®) online. Hand in hand with this, the internet is a good resource in your search. As a Realtor®,  we spend a good amount of our personal marketing dollars making sure our name and expertise is found by Sellers and Buyers when searching online. Websites such as Realtor.com, Zillow, and Google are great resources. Just remember to concentrate your search on agents that have direct experience in your area. An agent working two counties over may not be able to provide you with the best service.

There is one more way to find a Realtor® and that is we will find you. Its a small world and as soon as agents (me included) get wind that you are considering selling your home (and we will), you become fair game. So be prepared.

Now that you have got the names and background info on a few Realtors®, what to you do now? The best way to tackle this is to choose no more that three candidates that you want to interview. Once you have this, contact the finalists and begin the appointment process. You will find that the chosen will want to jockey for position in the pecking order, which is OK. Some want to be first so they can "close" the deal, others want to be last so they can overwhelm the competition, but you make the final decision on order.

So, which Realtor® do you choose? This may sound funny, but you choose the one that you feel will do the best job for you. However, there are ways to get you to a quality decision:

1. Did the Realtor® come across as a business professional?
2. Was she/he prepared for the appointment?
3. Did she/he present a quality and timed marketing plan for your home?
4. Did she/he show that your interest was the their top priority?
5. Was she/he honest and straightforward with you?

There is a caveat that needs to be discussed and that is working with a Realtor® that is also a good friend or family. Remember that the sale of your home is a business proposition. Not something to be taken casually and for granted. If you are going to use a good friend or family Realtor® make sure that all understand that there is a difference between the business and personal relationship. We have seen many friendships and families strained due to the mix of business and personal. Not forbidden, but be aware.

One last important note. In this series we use the term "Realtor®" vs "Real Estate Agent". The difference being that a Realtor® is a Real Estate Agent that is a member of the National Association of Realtors (NAR) and also participates in a local Board of Realtors®. A Realtor® operates under a defined Code of Ethics that is designed to make sure we always protect the best interest of our clients. As a member of NAR, a Realtor® has chosen real estate as a profession and maintains their real estate knowledge and personal integrity at the highest levels. Lawyers, CPA's and Engineers, to name a few, are all part of their respective professional organizations. It only makes sense that you would expect the same from your Real Estate Agent. So, maybe your first question when choosing a real estate agent would be to ask: Are you a Realtor®? Its a great way to start.

In the next installment we will start getting the house ready to sell for speed and top dollar. So here's some "homework" for you. The next time you pull into your driveway look at your home and ask yourself this question: "If I were home buyer, would I want to go inside?"

Stay Tuned!

Selling Your Home - Part 2

Curb Appeal

Curb Appeal is a critical component in getting your home sold for top dollar. A buyer driving through the neighborhood is going to be very critical of the outward appearance of your home. Of course the Buyer has a particular style in mind, whether it be Colonial, Craftsman, etc, but once the style is found, the exterior condition and presentation of the home will have strong bearing on the Buyer wanting to select your home as a possible buying candidate.

In this installment we will go over what a potential Buyer is looking at when they see your  home, either by driving by or looking at the pictures on the internet. We are not going to get into the details of the actual work to be done, but will provide you with a general overview of the components of Curb Appeal. With this information you should be able to look at your home objectively and then decide how, when and the cost of getting the exterior in order. So, let’s dig in.

The Walk About

Not to overstate the obvious, but most of you already know what needs to be done to the exterior of your home. Our objective here is to provide you an overview of the importance of Curb Appeal.

As we walk around the exterior of your home, let’s take notes:

The condition of the roof, for obvious reasons, will be one of the first observations of a Buyer. A damaged or dirty roof will stand out and beg for questions regarding the integrity of the roof. Sometimes a simple pressure washing will brighten up your roof. Check out vendors that do this and it will be money well spent. Don’t try this yourself. It is way too dangerous. Leave it to the professionals. If your roof is in bad condition, then we recommend you consider having a new roof put on before selling. It greatly enhances the appearance and a Buyer will not have any issues worrying about the roof.

Landscaping and yard maintenance is another area that we sometimes take for granted. A Buyer will look very carefully at this. Make sure you have a schedule for mowing and trimming. Spend time keeping the flower beds and shrubbery free of weeds. Fresh mulch is always a good addition. Keep the yard free of leaves and debris. Check for large limbs that hang close to the house. They may need to be pruned. Don’t overlook the backyard, deck, patio or fencing. All these need to be in good order. Pressure washing the driveway, sidewalk and walkways is always an easy project and really adds to the outward appearance of the house. Also, if you have pets, make sure you are cleaning up after them...for obvious reasons.

The condition of the house exterior is another critical area. You want your home to have a “clean” appearance. You may need only to pressure wash the exterior siding or brick (Hint: You can do this the same day you do the driveway.).  Renting a pressure washer is inexpensive. However, you may need to look at fresh coat of paint. Make sure your windows are also clean and the trim is in good shape. Again, pressure washing, fresh paint or both may be in order. Look at the overall condition of your front entrance. Flower pots, hanging baskets, a new welcome mat, all add to a fresh and clean appearance. Cleaning, re-staining or painting the Front Door is also recommended.

Conclusion

These are just some of the things that you should do in order to make your house “shine” and standout for the Buyer. Not to mention that your neighbors will be impressed and maybe will take your good work to heart and get their homes in order. It's a win/win for all.

One last recommendation would be to not wait until it is time to sell to start work on the Curb Appeal of your home. Curb Appeal is an ongoing part of any neighborhood. You may not be selling your home now, but maybe your neighbor is. When everyone pays attention and shows pride of ownership in their homes, then the whole neighborhood is rewarded. Your hard work in keeping up your home’s Curb Appeal will only enhance the values of your neighborhood. Wouldn’t you want them to do the same for you?

Next week we are going inside your house. Not literally, but if you need to do laundry, now would be a good time.

Stay Tuned

Selling Your Home - Part 3

Where No Buyer Has Gone Before

In the last post we looked at the importance of curb appeal to peak the buyer's interest in your home. Now we are going to address the things you can do to the interior of your home to get the buyer closer to making the offer.

The inside of the house is where the potential buyer is going to pick your house apart. Fair or not, they will be looking, with very critical eyes, to make every case they can to not buy your home. However, here's the rub. The more interest the buyer has in purchasing your home, the more critical they will be. In other words, they are not making a judgement of you, they are simply trying to talk themselves out of buying the house.  Your mission is to reduce the chances of criticism by making your home their first choice. As the saying goes: "First impressions are lasting impressions".  Let's dive in and go over the things that you can and, in most cases, should do to make your home stand out to the potential buyer.

Decor

A cluttered look is probably the biggest detractor when a potential buyer walks through
the front door. As we grow into our homes we accumulate stuff, furniture, collectibles, design pieces and pictures to name a few. It becomes invisible to us because we live with it every day. It won't be invisible to the buyer. So here are a few tips to make the invisible really invisible:

1. Probably the best way to get the home in showing condition is to have a professional designer or home staging service do it for you. There is a cost to this, but the results will be well worth the expense. There is some data that professional staged homes bring higher and more qualified offers than not. It is amazing the difference a few changes make in your decor when a professional is involved.
2. Many of us can't afford Joanna Gaines to come in a do the "Fixer Upper" magic on our homes. But, you do have an alternative. The Internet. Time to hit Pinterest. Create a home decor board and start searching for ideas and suggestions. You will be surprised (maybe not) of the amount of info, and help, you can get from the Internet. The key is to keep it simple. Don't get overwhelmed and don't try to make your home look "perfect" as they do in the pictures.
3. Closer to home, do you have anyone in your circle of friends that has a knack for decorating? If so, ask them to help with getting the house in order. You will be surprised that they will probably jump at the chance to try their design talents. You may even want to get a few of the "girls" together for wine and cheese and talk about design ideas.

The bottom line is to get the interior decor and flow of the home, especially in the living areas, a place that feels like home to the buyer.

Flooring & Carpets

When you are rearranging and removing clutter, now would be a good time to look at your walls. Could they use some attention, like a fresh coat of paint? Remember that all your stains, cracks, nail holes, etc that are invisible to you is going to noticed by the buyer. So lets get the walls fixed and painted. Selecting the color of paint is critical. Your best bet is to use a neutral color that accents your color scheme of your decor. If you are the DIY type, plan a painting project for a weekend. Get the family, and/or friends, involved. Just take your time and make sure the jobs is done right. Patience and planning goes along way.

After you have looked at the walls, now it is time to look down at the floor. Whether you have hardwood or carpet or both, take a critical look at them.

Carpet should be clean, spot and wear free. One of the best solutions for cleaning carpet is hiring a professional service. Get a list of reputable companies, then get bids and select the company. This is also a good time to check for any areas of carpeting that need stretching. The cleaning company should be able to fix these areas as part of the service.

The best time to deal with the carpet would be after any painting and before any rearranging of furniture. In fact, since you have to move the furniture in order to clean the floors, it will make it easier for you or the designer to place the furniture after the cleaning.

Hardwood floors should be cleaned well, also. You don't have to go as far as refinishing, but there are many good products on market today that will clean and refresh hardwood floors. Area rugs and runners are also a good addition to hardwood floors (check out your Pinterest board for ideas).

The Kitchen

The kitchen is where the buyer (especially the wife) will probably be most critical. It is absolutely imperative that the kitchen is in as pristine shape as possible. Counter tops should be spotless. Sinks, appliance and cabinet doors should also be shining clean. Put all small appliances, mixers, cans, jars, etc. that are out on the counters into storage or inside the cabinets (neatly). Keep out some of your necessities, but uncluttered counter tops will give your kitchen the feeling of space, especially if you have a small kitchen. This would also be a good time to straighten and organize the pantry. You want the buyer to get a feeling of space.

Bedrooms

So guess what I'm going to tell you do? That's right, get your kids to make their beds and keep their rooms clean and in order. This goes for the Master Bedroom as well. Pretty obvious, but you would be surprised at how many homes I have shown with the bedrooms looking like a tornado just went through. Bottom line, use your common sense and get the bedrooms in the same condition as the rest of the house. Just like the living areas, keep it simple and get rid of the "clutter".

Bathrooms

Like the kitchen, the baths will be intensely scrutinized. Clean, clean, clean. Mirrors should be spotless. Vanities clean and free of bottles, toothpaste, razors, you name it. Check the grout lines in the tile (floor and shower). You can get cleaning materials that will clean the grout lines and you will be surprised by the difference. Put in a new shower curtain liner. And, believe it or not, make sure the toilet is flushed. Yep, we have shown homes to buyers where you didn't want to go into the bathroom.

It's not your Home

We have just scratched the surface of getting the interior home ready for showing so you get that full price offer. We could have gone into a lot more detail, but most readers already know what needs to be done and how to get it done.

We will leave you with one last thought. When you make the decision to sell your home, just remember that the house is not your home anymore. It belongs to the next buyer. So, don't be afraid or emotional about putting personal and family stuff out of site and giving the next buyer a clean slate to make it their home.

Stay Tuned!

Selling Your Home - Part 4

My home is worth more than that...

We were scheduled to talk about the "hammer and nails" of putting your house in order to get it on the market and sold. However, we believe you have enough information in the previous 3 posts to get this done. Instead we are going to address what is probably most important and crucial decision to get your home sold...and that is pricing your home.

By far, as Realtors, the most discussed (and argued) point in the getting the home sold is the pricing. The sellers believe their home is worth "x", the buyers believe it is worth "y" and the Realtor says it worth "z". Who is correct? The answer is none of the above, because all of these are guesses.  The Realtor estimate is the best, since it is backed by market data. However, the final selling price of your home will not be determined by one person, it will be subject to that thing we call "The Market". The trick is to pick an asking price (listing price) that will allow you, the seller, and the buyer to negotiate a price acceptable to both parties.

Before moving forward we should separate the difference between price and value. One way to look at this is the use of your car. You paid a predetermined price for your car. The price being what you were willing to pay the dealer for the car. The car is now of value to you, since it provides you with dependable transportation. You could have gotten the same value from any car, but you chose to pay the price for this particular model. The same with your home.  It has functional and sentimental value and you also have a perceived monetary value. But, its not the value, its the price.

With this being said, let's go through the steps of how a Realtor determines the asking price of your home.

The Competitive Market Analysis

Your Realtor has access to a lot of market data. It is with this data that we (the Realtors) construct a Competitive Market Analysis (CMA) of your property. This analysis takes into consideration:

1. The sales of homes similar to yours in the same neighborhood within the last 30, 60, 90 and 180 days depending on sales activity.
2. The current asking prices of active listings in your neighborhood of similar homes.
3. The turn over rate in your neighborhood. How long, on average, does a similar home stay on the market before receiving an accepted offer.
4. The Listing Price to Sales Price ratio. What is the average difference between the asking price and the selling price of homes recently sold in your neighborhood.
5. What additional upgrades and features have you added to your home. Such as, finishing the basement, upgrading the kitchen and/or baths.
6. What is the current rate of appreciation or depreciation over the last year for overall home prices in your area.
7. Let's not forget Location, Location, Location. Access to good schools, shopping, worship centers, traffic patterns, noise...all factor into what a buyer is willing to pay for the home.

The Realtor takes all this into consideration and develops a likely range for pricing your home. The excellent Realtor (like us) will have this data digested into a very understandable and readable report (the CMA). You will now be equipped with the data you need to understand why the Realtor is recommending a certain listing price. If your Realtor has done the CMA report properly, using the most current data and knowledge of the market, this is by far your best indicator of the price your home will fetch in the market.

Market Conditions

You may have heard the terms "Buyer's Market" and "Seller's Market". These have to do with market conditions.  They are directly related to the pricing of your home with respect to the time it will take for it to sell. Here's how it works:

The Real Estate Market has an existing inventory of homes available to sell and the inventory turns over at a certain rate, either slow or fast. The kind of market you are in then depends on speed of the turnover.

In a Buyer's Market the amount of available inventory is high. Many homes are on the market. This results in:

1. Buyers can be very selective on which home they want to buy.
2. The selection process causes the time on the market to lengthen.
3. Home prices are driven down due to lack of competition.

The opposite happens in the Seller's Market. Inventories are low, which results in:

1. There are more buyers than available homes.
2. Sellers have upper hand in purchase negotiations. Thus prices increase.
3. Time on market is shortened, which adds to Seller's Market with fast inventory turnover.

There are several formulas (mostly depending on location) that tell you what market you are in. One rule of thumb is a Seller's Market will turnover 80% of the available inventory every 3 months. The Buyer's Market will turnover only 20% of the available inventory every 3 months. Regardless on how it is calculated, your Realtor (that's us) will be able give you the answer for your local market. Knowing which market you are in is going to have much to do with the pricing of your home.

Conclusion

We hope you are now able to understand the process and experience it takes to predict the price of your home. The market data rules the day and it is what it is.

As we said in a previous post. When you put your home on the market for sale it is no longer your home. It is hard, but you have to get emotion out of the way. If you try to let your emotion (and pride) choose the price of your home instead of listening to the professional, you are on the road to disappointment. Please always keep in mind that, as a Realtor, it is our duty to make sure you receive the highest and best price for your home. In Part 1 you chose the right Realtor. Let us do our job and it will be a Win/Win for all.

...and you can take that to the bank!