There's no doubt that a buyer's market can be challenging for sellers. Yet it does not mean that sellers cannot enter the market - or that they cannot garner a fair price for their homes. Home sales in a buyer's market may take longer. But a little creativity can go a long way toward help sellers move homes, without having to significantly drop the price.
Price Your Home According to the Current Market.
Just because a house comparable to yours sold for a very high price last year does not mean you will be able to realize the same price when selling your home now. Work with a full-service real estate professional to determine the appropriate, competitive listing price for your home. Remember that in this market, your sales associate may encourage a list price in accordance with others currently on the market, rather than those previously sold. Visit the Home Value Estimator to get a sense of comparative sales prior to meeting with your sales associate.
Be Realistic About Appreciation.
Since the housing market began to slow significantly in late 2007, home prices have fallen all over the country. Yet understanding trends in your specific market is critical - as not all areas have experienced the same drops. Some regions of the country have remained more steady relative to prices, and are even back to experiencing modest appreciations. And if you bought your home many years ago, the gains you made in the decades before the downturn may still be far more than recent drops. So speak with your real estate professional to get a realistic view on how your home has gained or lost, relative to its value and potential price.
Make Your Home More Marketable.
When a buyer sees your house for the first time, a critical first impression is made. If applicable, maximize curb appeal by trimming trees and planting flowers. A fresh exterior coat of paint might also prove valuable. Consider neutral colors for interior walls and carpets. Dark colors on walls, along with unnecessary clutter, make rooms look smaller.
Conduct a Full Home Inspection.
If repairs are required, it is a good idea to go ahead and fix the problems. Potential buyers will cast an extremely critical eye over your home and, in a situation when more houses are available on the market, they may take a pass on a home that needs too many repairs. Be sure to have the home inspection report available for prospective buyers itemizing all of the repairs that have been made and the associated cost for each.
Offer a "Seller's Contribution."
A seller can sweeten the deal by offering assistance to the buyer in ways that do not require lowering the asking price. These tactics can help your home to stand out from the crowd. For example:
· Offer to buy down the interest rate on the buyer's mortgage.
Offer to pay a portion of the closing costs.
· Cover the buyer's mortgage payments for up to the first six months. Depending upon the size of the mortgage, the buyer can save several thousand dollars and the seller still gets the original asking price for the home. It is generally more financially advantageous to do this than dropping the asking price by $30-, $20- or even just $10,000.
· Many condos and houses across the country belong to homeowners' associations that require annual dues. Paying the first year's fees could be a big incentive to a buyer nearing the limit of his or her liquid assets.
· Offer to pay off a buyer's bills. According to Realty Times, some loan programs allow sellers to pay off the credit card debt or auto loans of the buyer which will help him or her qualify for a better mortgage and prevent the need to buy a smaller, less expensive house.
Don't Worry.
Properly priced homes that stand out from the competition are likely to sell. Speak to your Realtor to find out how long an appropriately priced home is expected to remain on the market in your area.
Showing the House
Your house should always be available for show, even though it may occasionally be inconvenient for you. Let your listing agent put a lock box in a convenient place to make it easy for other agents to show your home to homebuyers. Otherwise, agents will have to schedule appointments, which is an inconvenience. Most will just skip your home to show the house of someone else who is more cooperative.
Most agents will call and give you at least a couple of hours notice before showing your property. If you refuse to let them show it at that time, they will just skip your house. Even if they come back another time, it will probably be with different buyers and you may have just lost a chance to sell your home.
Try Not to be Home
Homebuyers will feel like intruders if you are home when they visit, and they might not be as receptive toward viewing your home. Visit the local coffee house, yogurt shop, or take the kids to the local park. If you absolutely cannot leave, try to remain in an out of they way area of the house and do not move from room to room. Do not volunteer any information, but answer any questions the agent may ask.
Lighting
When you know someone is coming by to tour your home, turn on all the indoor and outdoor lights – even during the day. At night, a lit house gives a "homey" impression when viewed from the street. During the daytime, turning on the lights prevents harsh shadows from sunlight and it brightens up any dim areas. Your house looks more homey and cheerful with the lights on.
Fragrances
Do not use scented sprays to prepare for visitors. It is too obvious and many people find the smells of those sprays offensive, not to mention that some may be allergic. If you want to have a pleasant aroma in your house, have a potpourri pot or something natural. Or turn on a stove burner (or the oven) for a moment and put a drop of vanilla extract on it. It will smell like you have been cooking.
Pet Control
If you have pets, make sure your listing agent puts a notice with your listing in the multiple listing service. The last thing you want is to have your pet running out the front door and getting lost. If you know someone is coming, it would be best to try to take the pets with you while the homebuyers tour your home. If you cannot do that, It is best to keep dogs in a penned area in the back yard. Try to keep indoor cats in a specific room when you expect visitors, and put a sign on the door. Most of the time, an indoor cat will hide when buyers come to view your property, but they may panic and try to escape.
The Kitchen Trash
Especially if your kitchen trash can does not have a lid, make sure you empty it every time someone comes to look at your home – even if your trash can is kept under the kitchen sink. Remember that you want to send a positive image about every aspect of your home. Kitchen trash does not send a positive message. You may go through more plastic bags than usual, but it will be worth it.
Keep the House Tidy
Not everyone makes his or her bed every day, but when selling a home it is recommended that you develop the habit. Pick up papers, do not leave empty glasses in the family room, keep everything freshly dusted and vacuumed. Try your best to have it look like a model home – a home with furniture but nobody really lives there.
Open Houses
An open house when your property is first placed on the market can be very important, but not for the reasons most homeowners think. Just like with advertising, most visitors to open houses rarely buy the house they come to look at. They may not even know the price of your home when they stop by to visit – they probably just followed an "Open House" sign to your door.
An open house performs a similar function to the neighborhood announcements – it lets all of your neighbors know that your house is for sale, and it practically invites them to come "take a look." Being generally nosy, a lot of your neighbors will take advantage of the invitation.
And they may tell their friends about your house, creating more "word of mouth" advertising.
Of course, there are other reasons for holding open houses, too. Listing agents who "farm" a particular neighborhood use them as an opportunity to meet with other local homeowners who will someday be selling their home. Your agent may hope to list their homes in the future.
Open houses held after your home has been on the market awhile do not usually serve a useful purpose in selling your home. Most of the neighbors already know your house is for sale and open house visitors rarely buy the homes they visit.
However, if you really want more open houses, your listing agent may allow other agents to hold it open. Open houses attract prospective homebuyers and agents hope to convince some of those homebuyers to become their clients.
Getting the House Ready to Sell
Disconnect Your Emotions
When conversing with real estate agents, you will often find that when they talk to you about buying real estate, they will refer to your purchase as a "home." Yet if you are selling property, they will often refer to it as a "house." There is a reason for this. Buying real estate is often an emotional decision, but when selling real estate you need to remove emotion from the equation.
You need to think of your house as a marketable commodity. Property. Real estate. Your goal is to get others to see it as their potential home, not yours. If you do not consciously make this decision, you can inadvertently create a situation where it takes longer to sell your property.
The first step in getting your home ready to sell is to "de-personalize" it.
Make Your Home "Anonymous"
If there is a new home sales tract near your home, go visit. It doesn't matter what size the homes are. What you will find are some wonderfully (but sparsely) furnished homes that anyone could live in -- with the emphasis on "anyone." They are anonymous. There may be a baseball glove in the boy's room, but no family photos on the walls.
There may be "personality" - but no person.
The reason you want to make your home "anonymous" is because you want buyers to view it as their potential home. When a potential homebuyer sees your family photos hanging on the wall, it puts your own brand on the home and momentarily shatters their illusions about living in the house themselves.
Put away family photos, sports trophies, collectible items, knick-knacks, and souvenirs. Put them in a box. Rent a storage area for a few months and put the box in the storage unit.
Do not just put the box in the attic, basement, garage or a closet. Part of preparing a house for sale is to remove "clutter," and that is the next step in preparing your house for sale.
The "For Sale" Sign
It seems fairly obvious that when you put your house up for sale that your agent will put a "for sale" sign in the front yard. The sign will identify the agent’s company, the agent, and have a phone number so prospective buyers can call and get information.
Signs are great at generating phone calls, even if very few actually purchase the home they call about. However, you might be one of the lucky ones. For that reason, you should determine what happens when someone calls the number on the sign. Does a live person answer the phone or does the call go to a voicemail or recorder?
You want someone to answer the phone while the caller is "hot." When buyers call the number on the sign, the call should go to a live person who can answer questions immediately. A potential buyer may be on the street outside your home, placing the call using a cell phone.
Also, take a look at the sign and see if it seems more interested in generating calls from buyers, or if it seems more oriented toward advertising your agent’s listing services to your neighbors.
Flyers and a Brochure Box
Your agent should prepare a flyer that displays a photo and provides details about your house. There should also be a phone number so buyers can contact your agent to get additional information. The flyers should be displayed in a prominent location in your home and also in a brochure box attached to the "for sale" sign.
The brochure box is convenient for those buyers who drive by and just happen to see the "for sale" sign in front of your house. It provides enough information so they can determine if they want to follow up with a phone call or inform their own agent they are interested in your house. (It should not have information on the occupants, the fact that the home is or is not not occupied, the lock box location or any other "showing information"! If I am out showing homes I can access the secure showing information from my Blackberry.)
Uncluttering the House
This is the hardest thing for most people to do because they are emotionally attached to everything in the house. After years of living in the same home, clutter collects in such a way that may not be evident to the homeowner. However, it does affect the way buyers see the home, even if you do not realize it.
Clutter collects on shelves, counter tops, drawers, closets, garages, attics, and basements. You want as much open clear space as possible, so every extra little thing needs to be cleared away.
Take a step back and pretend you are a buyer. Let a friend help point out areas of clutter, as long as you can accept their views without getting defensive. Let your agent help you, too.
Kitchen Clutter
The kitchen is a good place to start removing clutter, because it is an easy place to start.
First, get everything off the counters. Everything. Even the toaster. Put the toaster in a cabinet and take it out when you use it. Find a place where you can store everything in cabinets and drawers. Of course, you may notice that you do not have cabinet space to put everything. Clean them out. The dishes, pots and pans that rarely get used? Put them in a box and put that box in storage.
You see, homebuyers will open all your cabinets and drawers, especially in the kitchen. They want to be sure there is enough room for their "stuff." If your kitchen cabinets, pantries, and drawers look jammed full, it sends a negative message to the buyer and does not promote an image of plentiful storage space. The best way to do that is to have as much "empty space" as possible.
For that reason, if you have a "junk drawer," get rid of the junk. If you have a rarely used crock pot, put it in storage. Do this with every cabinet and drawer. Create open space.
If you have a large amount of foodstuffs crammed into the shelves or pantry, begin using them – especially canned goods. Canned goods are heavy and you don’t want to be lugging them to a new house, anyway – or paying a mover to do so. Let what you have on the shelves determine your menus and use up as much as you can.
Beneath the sink is very critical, too. Make sure the area beneath the sink is as empty as possible, removing all extra cleaning supplies. You should scrub the area down as well, and determine if there are any tell-tale signs of water leaks that may cause a homebuyer to hesitate in buying your home.
Closet Clutter
Closets are great for accumulating clutter, though you may not think of it as clutter. We are talking about extra clothes and shoes – things you rarely wear but cannot bear to be without. Do without these items for a couple of months by putting them in a box, because these items can make your closets look "crammed full." Sometimes there are shoeboxes full of "stuff" or other accumulated personal items, too.
Furniture Clutter
Many people have too much furniture in certain rooms – not too much for your own personal living needs – but too much to give the illusion of space that a homebuyer would like to see. You may want to tour some builders’ models to see how they place furniture in the model homes. Observe how they place furniture in the models so you get some ideas on what to remove and what to leave in your house.
Storage Area Clutter
Basements, garages, attics, and sheds accumulate not only clutter, but junk. These areas should be as empty as possible so that buyers can imagine what they would do with the space. Remove anything that is not essential and take it to the storage area.
Or have a garage sale.
The Exterior of the House
Most real estate advice tells you to work on the outside of the house first, but unless there is a major project involved, it is probably best to save it for last. There are two main reasons for this. First, the first steps in preparing the interior of the house are easier. They also help develop the proper mind set required for selling - beginning to think of your "home" as a marketable commodity. Second, the exterior is the most important.
A homebuyer’s first impression is based on his or her view of the house from the real estate agent’s car. They call that first impression "curb appeal."
So take a walk across the street and take a good look at your house. Look at nearby houses, too, and see how yours compares. Then it may be time to go to work.
Landscaping
Is your landscaping at least average for the neighborhood? If it is not, buy a few bushes and plant them. Do not put in trees. Mature trees are expensive, and you will not get back your investment. Also, immature trees do not really add much to the appearance value of the home.
If you have an area for flowers, buy mature colorful flowers and plant them. They add a splash of vibrancy and color, creating a favorable first impression. Do not buy bulbs or seeds and plant them. They will not mature fast enough to create the desired effect and you certainly don’t want a patch of brown earth for homebuyers to view.
Your lawn should be evenly cut, freshly edged, well watered, and free of brown spots. If there are problems with your lawn, you should probably take care of them before working on the inside of your home. This is because certain areas may need to be re-sod, and you want to give it a chance to grow so that re-sod areas are not immediately apparent. Plus, you might want to give fertilizer enough time to be effective.
Always rake up loose leaves and grass cuttings.
The Back Yard
The back yard should be tidy. If you have a pool or spa, keep it freshly maintained and constantly cleaned. For those that have dogs, be sure to constantly keep the area clear of "debris." If you have swing sets or anything elaborate for your kids, it probably makes more sense to remove them than to leave them in place. They take up room, and you want your back yard to appear as spacious as possible, especially in newer homes where the yards are not as large.
The Front Door & Entryway
The front door should be especially sharp, since it is the entryway into the house. Polish the door fixture so it gleams. If the door needs refinishing or repainting, make sure to get that done.
If you have a cute little plaque or shingle with your family name on it, remove it. Even if it is just on the mailbox. You can always put it up again once you move.
Get a new plush door mat, too. This is something else you can take with you once you move.
Make sure the lock works easily and the key fits properly. When a homebuyer comes to visit your home, the agent uses the key from the lock box to unlock the door. If there is trouble working the lock while everyone else stands around twiddling their thumbs, this sends a negative first impression to prospective homebuyers.
Got a few grand and a few days?
Get a perfect home
By Les Christie, staff writer
NEW YORK (CNNMoney.com) -- Hate the mess your home has deteriorated into but you don't have the time or means to do a comprehensive redecorating job? Or maybe it's time to sell your place, but you don't know how to show it off to best effect?
Take Christopher Micaud, for example. The fashion photographer needed to spruce up his Lower Manhattan loft with soaring ceilings and cityscape views in order to sell it.He soon, realized, however, that he faced a daunting task.
For one thing, his home has only two tall windows, both on a living room wall. And when guests walk in the door, they're confronted with a staircase, looking spindly and forlorn.
"We started to fix it up ourselves and came to a dead stop," said Micaud, who bought the 1,800-square-foot loft two years ago for $1.5 million.
Instead, he called in Jill Vegas, author of the new book "Speed Decorating," who focuses on redecorating at a minimum cost and warp speed. Ideally, she makes the most of what you have, showing you how to arrange it, what colors to paint, where to hang your artwork -- and what flourishes to add.
"It's about having a home you love right away," she said. "Speed decorating is not about calling in contractors; it's about looking at a room and thinking about what you can do in a couple of hours, a week, to make it better."
When she first arrived at Micaud's loft, she was not pleased. The entry opens onto windowless space facing the staircase. And to the left is a foyer with a sofa that has seen better days pushed against a blank wall.
"We need to have an amazing first impression," Vegas said. "You've already lost your sale. We want somebody to be curious enough to look further."
She also criticized the kitchen as tired and dingy. Plus, the traffic flow to the living/dining area was obstructed by two poorly arranged chairs. And overall, she found the decor to be too empty, too cold.
Vegas did find a few strengths, including the windows: "This is an amazing view. A giant city view. This is what people want," she explained.
To build on that, she had a few suggestions of where she and Micaud should start.
First, move those poorly arranged chairs to the side to make the seating area more welcoming. Second, paint. Third, Micaud should take photos from his collection, have them framed, and adorn the mostly-bare walls.
"We're creating a lifestyle, but we need some of your personality to sell it," she said.
Vegas worked mostly with what the Micauds already owned. She loved a modern floor lamp with a long neck that was lost in a corner. It now makes a more dramatic statement dangling over the dining table.
A vase of tree branches, which she pruned, took its place by a window, adding an outdoor echo to the urban streetscape beyond the glass.
The sectional sofa was pushed against the wall between the views and flanked by striking new lamps with silver shades. Paintings came out of storage to provide splashes of color for the otherwise monotone walls.
She also suggested painting the closet doors, replacing bathroom faucets and getting new electrical switch plates as quick, easy solutions with big impact. Finally, she added several pieces of furniture and accessories.
Vegas said she believes people can improve their living spaces following seven simple principles.
Create a sense of calm. Clear out clutter and organize what's left.
Shape up your rooms. Homes get out of condition. Getting them back in trim first requires a good cleaning during which you can note what needs to be repaired, replaced or repainted.
Incorporate personal style. Try to make rooms reflect you, whether that means warm tones and plush upholstery or stark lines and spare features.
Work out arrangements. Define the functions of different parts of the room. Once you know that, it's easy to figure out where your furniture and accessories belong.
Work with light. Kitchens and baths want bright "task" lighting, while in bedrooms and dining areas need softer, more romantic lighting.
Embrace color and texture. Look to nature for inspiration. Think of some of the colors you liked on recent vacations and reproduce them.
Find the devil in the details. The heart of speed decorating is using art and accessories to give your home uniqueness and attraction.
What it costs
A consultation with Vegas costs $500 to start. Often, that's all the homeowners need. Others do the actual work themselves but have Vegas consult, paying $2,000 to $6,000 for those services.
A job like she did for the Micauds, where Jill and her team did all the work, can cost from $5,000 to $25,000.
Micaud thinks he'll make back the money he spent when he sells his home.
He might. The results of the redecorating, which took a couple of weeks, mostly to prep and paint, were dramatic. The tone and feeling of the loft had changed -- for the better. The lighting was more stylish. The kitchen had become a sleekly seductive asset rather than a liability.
The foyer area looks so much better with a curvy modern table replacing the old tired sofa. The look is completed with a tall vase of flowers reflecting in an ornately framed mirror.
The living room seems larger and more welcoming even as it retains its simplicity of cool lines and minimal clutter.
The loft is now being marketed through Sotheby's International Realty with a price tag of $1.895 million.
Micaud might not get that much in today's down market, but he now has a much better chance.
Home security for less
With the economy down, burglary is up. But you can get solid protection at a reasonable price.
By Josh Garskof, Money Magazine contributing writer
(Money Magazine) -- The combination of a deep recession and widespread law-enforcement funding cuts will most likely spell a banner summer for burglars. If your house makes a good target - it's upscale, off the beaten path, and in or near a city - an alarm system is your best defense, according to Temple University economics professor Simon Hakim, who studies security and policing. Installing one will reduce your risk of a break-in by two-thirds. To determine what you really need, follow the guidelines below.
Don't overequip
A top-shelf security system that includes a detector on every door and two on every window could set you back thousands. But unless you have Picassos hanging on your walls, it isn't necessary, says Stan Martin, executive director of the Security Industry Alarm Coalition, a trade association dedicated to reducing false alarms.
For the most part, a basic package that secures all exterior doors and includes a handful of well-placed motion detectors will stop the average thief. Also get smoke, carbon monoxide, and flood-alert devices (about $250 each), which operate even when the burglar alarm is disarmed.
Vet the companies
Alarm installers will drill holes in your walls and woodwork - and will know how to bypass your security system - so you need them to be honest as well as skilled. Collect referrals from friends, neighbors, and trusted tradesmen, and verify that the companies are members of the National Burglar and Fire Alarm Association.
Compare long-term costs
Get price quotes from at least three companies. A basic system should cost $1,500 to $2,000, says Martin. You'll also need a monitoring service, which will send the cops to your door when an alarm is tripped. Monitoring ranges from $20 to $50 a month, plus $10 to $30 more if you get cellular backup, which ensures a distress signal will come through even if your phone line is cut. Since alarm companies make the bulk of their profit from monitoring, some offer discounted or free installation of a basic system when you sign a contract.
Consider a few extras
Make sure to get keypads with digital readouts (about $100) that clearly identify which detector has tripped, so that you and the monitoring center know immediately if the problem is carbon monoxide or an open dining room window.
If you have plaster walls, consider wireless detectors, which require no drilling or snaking of lines (the cost is about the same as for the standard models - and battery replacement comes at no extra charge).
Compare long-term costs
Get price quotes from at least three companies. A basic system should cost $1,500 to $2,000, says Martin. You'll also need a monitoring service, which will send the cops to your door when an alarm is tripped. Monitoring ranges from $20 to $50 a month, plus $10 to $30 more if you get cellular backup, which ensures a distress signal will come through even if your phone line is cut. Since alarm companies make the bulk of their profit from monitoring, some offer discounted or free installation of a basic system when you sign a contract.
Consider a few extras
Make sure to get keypads with digital readouts (about $100) that clearly identify which detector has tripped, so that you and the monitoring center know immediately if the problem is carbon monoxide or an open dining room window.
If you have plaster walls, consider wireless detectors, which require no drilling or snaking of lines (the cost is about the same as for the standard models - and battery replacement comes at no extra charge). And if you have or would ever get a dog or cat, ask for pet-immune motion detectors (an extra $50 to $100 each).
Of course, a canine can make a pretty good alarm of its own, with no battery replacement necessary. Just daily walks - and a treat every time he barks at a passerby.