Tag: Home Seller Tips

Is it a buyer’s market?

When it is time to buy or sell an important question to answer is who holds the power in the market. Today, after years of a strong sellers market with sellers calling the shots and getting what they want, the tide is turning. Homes for sale are staying on the market longer and price reductions are more common. Sometimes sellers are even offering incentives, like help buying down the interest rate for the buyer on their loan. That would have been unthinkable just a couple of years ago.

Still if you are a buyer or a seller do not expect a full reversal when you step into the market today. Certainly price points are leaning more in favor of the buyers than other price ranges. It is important to talk to your agent about the market in your price range.

What is a buyer’s market?

In simple terms, a buyer’s market occurs when the number of homes for sale exceeds the number of active buyers. It is a simple shift in supply and demand. When supply exceeds demand buyers have more choices, more room to negotiate and more time to make a decision. Another way to describe this is there is a high inventory of homes for sale.

What are other indicators of a buyer’s market?

Another sign of a buyers market is slower sales. The number of days on the market is increasing for sellers. The average days on the market now is a median of 51 days. That is longer than one year ago. This is advantageous for buyers because they have time to look and consider their choices.

Price drops are another indicator of a buyers market. With more competition and slower sales, sellers are starting to cut prices to stay in the game. Nearly one in five homes had a price reduction last month. The highest rate since at least 2016.

More motivated sellers can also provide concessions. These concessions can be for a rate buy down, closing costs or because the seller did not replace the carpet and is offering a carpet allowance. All of these indicators show that sellers are no longer in complete control of the market. Most agents working in today’s market would describe our market in Northern Colorado as a buyer friendly market. Buyers that are patient, strategic and ready to negotiate just might get a deal.

Whether you are a buyer or a seller it is important that you are informed. Do not rely on the headlines. Consult with an experienced agent to educate you on what to expect. Then you will know how to best navigate today’s market.

Should Sellers Pre-inspect?

In a typical real estate transaction it is the buyer that orders and pays for the home inspection. However, sellers can have their property inspected before the house ever hits the market. A pre-inspection provides the seller with information regarding the condition of their home. But is it a good idea for a seller to do an inspection before their home goes on the market? Before you schedule your pre-inspection, here are three things to consider.

Disclose, disclose, disclose

  1. Once you know about it you have disclose it. The old real estate proverb is “when in doubt, disclose, disclose, disclose.” A pre-inspection can expand what you know and what you have to disclose. Let’s say you have a water stain on your ceiling. You have never been in your attic and will not go there. But your inspector does go in your attic and discovers that your stain on the ceiling is due to a roof leak. Now you need to disclose a stain your ceiling and a roof leak. Do you wish you did not know, or are you happy that you know you need to have work done on the roof?
  2. The buyer will more than likely get their own inspection. Just because you have had an inspection, does not mean that the buyer will not hire their own inspector. That means another inspector who may see something that your inspector did not see. The buyers inspector may not interpret the same information differently. So a pre-inspection may reduce surprises. However, the buyer’s inspection may uncover other issues.
  3. Once you have received the inspection report you may feel some pressure to start fixing things and do more than you need. With a pre-inspection in hand there is the temptation to fix all of the issues that the inspector found before your home hits the market. That is certainly not necessary and probably not wise. Most buyers are fine with cosmetic flaws or aging systems if they are reflected in the price or covered by a home warranty. Most of the time it is in your best interest to disclose and let the buyer do their own inspection. Then determine what the buyer feels needs to be addressed.

Consult with your agent before making a decision

There is no one size fits all answer about whether you should or should not do a pre-inspection. It really depends on your home and your personal situation. Before you schedule any inspections or completely skip them, have a candid conversation with your real estate agent on what is best given your situation. Your agent can help you weigh the pros and cons based on market conditions and your home. If you decide to get an inspection have your agent recommend an inspector. Not all inspectors are good. Your agent more than likely has experience working with the good ones. Remember to follow your agents lead on what makes sense in todays market.

Curb Appeal Secrets for Sellers

Curb appeal is very important when selling a home. It is the first impression that the buyer has of your home. A well maintained exterior suggests that you care about your home and that you have maintained the home both inside and out. Good curb appeal can increase the perceived value of your home and your home’s desirability.

Fresh cut grass

What should you focus on when you are ready to put your home on the market? The first thing is to make sure that your lawn is mowed to perfection. That means not just the grass mowed, but edged and trimmed too. Another thing to make sure you do is to fertilize so that your grass is a healthy, vibrant green. Try to make your lawn look better than the neighbors.

Add some color

If you have flower beds, stick some blooming flowers in those beds. This can also mean a pot of flowers by the front door or hanging plants off the patio. Some plants in the beds and scattered around is the second most important thing you can do to add curb appeal.

Welcoming porch

Nothing says welcome home like an appealing front porch. Perk up your porch to add to the curb appeal of your home. Add a rug or at least a new welcome mat. Add a cozy place to sit if you have room. Those potted plants are important and a wreath added to the front door can also add a feeling of welcome!

Mulch

Another thing to look at and consider sprucing up is the mulch in your yard. Fresh mulch smells great and instantly makes everything look polished and put together without too much effort. An added bonus is this will help to keep weeds down.

Outdoor lighting

Does your yard have outdoor lighting? It is not just for safety. Outdoor lighting can inexpensively add to curb appeal. Thirty nine percent of homeowners say attractive outdoor lighting matters to them. Consider some pathway lights or even some hanging lights for extra charm. Don’t go over board. Remember tasteful.

Curb appeal matters. Homes with strong curb appeal tend to sell faster and for higher prices. Curb appeal is a powerful marketing tool. By investing a little bit of money and time into some simple improvements you can crate a welcoming first impression that can lead to your home selling quickly

First time home seller

Congratulations, you have decided to sell your first home. When you were a first time home buyer, you may have noticed that there was no storage of people wanting to offer you advice. As a first time home seller, you may be feeling like things are a bit quiet with no one offering any advice. People may be acting like you should know what to do. Selling a home is not like buying like in reverse. The process comes with its own set of challenges.

One important thing to remember when selling your home is what it felt like to be a buyer. What turned you off when you were house hunting? What caused you to fall in love with the home that you purchased? Was it the view or the fresh paint and new carpet? Perhaps it has been so long that you do not remember. Let’s take a look at some of the things that can make your home as appealing to a buyer.

Price it right from the start

Price it right from the start. Overpriced homes do not sell. They sit on the market and buyers start to wonder what is wrong with them. There is probably nothing but that they are overpriced. Set a competitive price from the beginning to avoid unnecessary price drops.

Make your property easy to show

Make your property easy to show. It is frustrating when you want to see a property and the seller limits you to certain times on certain days or require you to provide 24 hour notice. The more flexible you are with showings, the more potential buyers will get to see your home. More showings can lead to more and better offers.

Declutter and depersonalize

Declutter and depersonalize. It is hard for buyer to picture themselves in a property if it has family photos scattered around. They feel like they are visiting your house, not looking at home that they might be able to make their own. Buyers can also get very distracted by clutter. They are there to look at the home, not your stuff. Create a clean, blank slate that buyer can imagine as theirs.

Smell matters

Smell matters more than you think. I have told sellers to bake cookies before an open house so that the smell lingers in the home. Make sure that your home does not smell like your pet or have other bad smells. Sometimes we become nose blind to smells. Ask a friend to stop by and give their honest opinion. Even if a home looks great, bad odors can be a turnoff. Make sure the house smells clean and neutral, creating an inviting atmosphere.

Listen to feedback

Listen to feedback. Remember when you were the buyer and you had opinions about every house? You may have had nicknames for the houses. The cat house, the yard mess etc. Your agent more than likely shared your feedback with the seller’s agent. Now that you are the seller you expect the same from buyers. Remember to not take feedback personally. If multiple agents mention the outdated bathroom or the worn carpet, consider making adjustments to improve your chances of selling your home.

Selling your home can be a bit overwhelming. Think like a buyer and this will set you up for success. Be sure to price your home right and make it easy to show. Don’t forget to take the time to prepare it for sale. Do all of this while working with a great agent. You will get your home SOLD!

The Price is Right?

You are ready to put your home on the market to sell. One of the most important decisions that you will be making is the list price for your home.

Your real estate agent should be able to give you expert advice on setting the price. Agents work in the market and should know of recent sales and the current market. Be sure that your agent does a market analysis for you so you have the most up to date information. The goal is to set the right price from the start so buyers will move quickly and make an offer on your home.

Three reason why setting the right price is important

  1. The right price can help your home sell faster and for more money. The National Association of Realtors (NAR) has found that the longer a home stays on the market, without selling, the more likely the sale price is lower than the original list price. NAR found that a third of homes on the market for at least three to four weeks had their price reduced at least once. Pricing your home correctly in the beginning will decrease the odds that you will set on the market without any offers.
  2. You affect how the buyers view your home from the start. The price that you set on your home is your “price tag.” Pricing your home too high in the beginning may cause buyers to dismiss your home. They may dismiss it because they feel it is over priced. Buyers could also dismiss it because your home is out of their price range. But if a home is priced too low, buyer may shy away fearing there is something wrong with the house. If you are able to be like Goldilocks and set the price just right the buyer will be ready and willing to submit an offer to buy your home.
  3. The right price just might start a bidding war. When your home is priced comparatively with other homes in your market, it increases your chances of having multiple buyers interested in your home. If that happens those buyers may compete for your property. Competing buyers can drive up the price of your home. Even if you don’t have a bidding war, your home can still sell for list price.

It is easy to see why pricing your home correctly is important. By understanding market conditions and following the guidance of your agent, you can increase your chances of a successful sale. When selling a home, making informed decisions will help you to achieve your goals.

Moving with Kids

Selling your home can be an emotional decision. Even if you are selling for all of the “right” reasons. Some of those “right” reasons could be to purchase a larger home that you need for your growing family. You might be selling to shorten your commute or move to a better school district. Moving, even for all of the “right” reasons can impact your child. Adults can feel the stress of a move and navigate the process. But kids may not ever have experience a move and may feel like their whole world is about to be turned upside down. How is a parent to deal with these emotions and help kids make the adjustment? Here are some helpful tips to make the process as smooth as possible.

Helpful tips

  1. Don’t assume that they will not care. Even if your child is not particularly sentimental, they can have strong feelings about selling the family home. They may have concerns about leaving the home that they have made great memories in. It may be the only home they have ever known. Your child may just not like change. Let your child voice their feelings about moving. Your child’s feelings matter.
  2. Be sure to talk openly about the move. Involve your kids in the process. Talk to them about what they would like in a new home. While kids will not have the final decision, remember to take into account their feelings. Explain your reasons for moving, in age appropriate terms. Share with them the benefits of moving. Be transparent but firm to help manage expectations.
  3. Don’t spring the final decision on your child at the last minute. Talking about the move is great, but make sure that you have help your child sort through their feelings before the sign goes in the yard. While it is important to have empathy and understand, at the end of the day it is your decision. It is okay to prioritize your needs as well as the needs of your family as a whole.
  4. Seek professional support if necessary. If your child is particularly anxious or resistant, consider involving a family therapist. Sometimes having a third part to talk to can make things easier.

Let your agent know

It is a good idea to make your real estate agent aware of how your child is feeling. An experienced agent can often help smooth the way forward. They know how to get young children involved in fun ways. Your agent may also be able to offer helpful hints for helping older kids feel heard and ease their concerns. Lestel has a pamphlet available: Smooth Moves. Real Estate for Your Kid’s World. It is helpful tips on moving with kids of all ages. Ask her and she can provide you with a copy.

Selling your home when children are involved can be challenging. It is wise to talk to your child as soon as possible and involve them in the process. The more your child feelings included the more likely they are to be on board with moving!

How to sell your home and buy another one

Buying a home as a first time home buyer is not easy. You have to pull together the money for the down payment. Then there is the process of trying to find a house in your price range that you actually like. Once you find the house you want to buy, hoping that you will not be competing with other buyers for the home. Going through what first time home buyers go through is not easy. When you are having to sell a a home before you can buy another one, you may be wishing for the simpler times when you just were buying a home.

So, you need to sell your home before you buy another one. Good news is your are not alone. Plenty of people navigate the process of moving up, buying and selling, just like you. Here are some common concerns people like you have and some tips on how to deal with them.

What if I don’t find a house I want to buy?

The first concern is: What if I Don’t Find a House I Want to Buy? This is certainly a legitimate concern. But waiting until you find your next home, before you put yours on the market isn’t necessary the best way to be successful in this process. Waiting to put your home on the market can lead to rush decisions that can cost you money. You also run the risk of the dream home being purchased by a buyer that doesn’t have a home to sell, before you are ready to buy.

What if the house I want to buy sells before I am ready?

A second concern is: What if the House I Want to Buy Sells Before I am Ready? You have found the house you want to buy. You do not want anything to get in the way of purchasing that home. If you wait, hoping your home will go under contract before you write an offer on the new one, you may lose out. You can write an offer that is contingent upon the sale of your home. But what if the seller does not want to accept an offer that is contingent upon a home selling? There are strategies that can be implemented in this situation so you don’t miss out!

What if I get stuck with two mortgages?

Another question that you may have is: What if I Get Stuck With Two Mortgages? You have decided to move forward with a contract on your new home before your old home sells. You know that you qualify for both mortgages, but certainly do not want to be paying a mortgage on your old home and your new one. This is something most everyone would like to avoid. The best way to avoid this is to not go under contract on the new home before all of the contingencies have been met with the contract on your existing home. Make sure that your agent puts language in your contract, on the new home, that gives you an out if you do not close on your existing home. This will keep you safe.

Could I end up homeless?

A fourth concern that you may have is: Where Will I Live if my House Sells and I have not Found the House I Want to Buy? This question can be easier to answer than most of the other questions. You will not be left living in your car. You have options. Some of those options can be as easy as family, or a temporary rental, or even a short term rental. There can also be a change in the closing date of the contract so that the dates of both contract match up and you are not without a place to live. You can also do a rent back of your existing home after you close, until the new home closing occurs.

These concerns are common concerns of people buying and selling. The process of buying and selling a home can be challenging. Work with an experience agent that knows the strategies that work so you can be successful. Then all you will have to worry about is packing and moving into your new home.

Preparing for a Smooth Final Walk Through When Selling

You put your home on the market and you received a pleasing offer. You are under contract and headed to closing. Congratulations. You know what it was like to keep the house clean and clutter free for showings. You know how to create a great first impression. But what about a last impression? The last impression occurs at the final walk through before closing. This is the last time that the buyers see the house, before they make it their home at closing.

What the buyer sees

At walk through the buyer sees the home without all of your furniture and decor and sees the home for what it is. They see every nook and cranny and all of the details. Of course you want them to still love the home. What can you as the seller do to make sure that this is the case?

Broom Clean?

Many real estate contracts state that the home must be broom clean. But what does that really mean? That is such a subjective term. Most sellers think that they left the home in pristine condition, while buyers think that it looks like the aftermath of a party. The real picture is somewhere in between. What is the worst thing that could happen if you leave your home less than pristine? There are some things that could happen.

  1. The buyer could simply refuse to close until the house is clean.
  2. The Buyer could require that you credit them the cost of having the house professionally cleaned.

Avoid Problems

The easiest way to avoid losing time, money and stress, is to make sure that you leave the house like you would want it to be if you were moving in. Here are some suggestions on things you might overlook in cleaning your home in preparation for final walk through.

  1. Door frames
  2. Baseboards
  3. Ceiling fans
  4. Grout
  5. Tops of cabinets
  6. Stove tops and the inside of the oven
  7. Refrigerator
  8. Removal of all trash
  9. Garage swept

Cleaning these items can help to ensure that you are leaving the right impression at the final walk through. Another thing to make sure is done is all of the inspection items that you agreed to repair are completed and receipts of work are to the agents. This will help avoid any last minute hiccups. Put yourself in the buyers’ shoes and try to leave the home in better condition that you might expect if you were the buyer. A home that is clean and ready to move into, sends a message that you have taken care of the home and that the buyers can enjoy it.

The Fed cut rates. Why are they still high?

If you are like most buyers, sellers and even some real estate agents, you get excited when the Federal Reserve cuts benchmark interest rates. After all, shouldn’t lower rates from the Fed mean lower interest rates for mortgages? It is understandable that so many people believe that a fed rate cut leads directly to lower mortgage rates. It is a common misconception. Media outlets fuel this assumption, highlighting potential benefits to home buyers and sellers.

What are rates based on?

So, what does a rate cut really mean for buyers and sellers? When the Fed cuts rates they are typically trying to stir the economy by making borrowing cheaper in the short term. Mortgage rates, don’t always move in lockstep. The Federal Reserve controls short-term interest rates. But the 30 year fixed rate mortgage rate follows long-term rates. The long term rates are primarily influenced by the bond market-specifically the yield on the 10 year U.S. Treasury Bond. Since mortgage lenders tend to set their rates based on what’s happening with these long-term bond yields this is the key thing to watch. But, even watching the 10 year U.S. Treasury Bond doesn’t give you a clear picture of what to expect regarding mortgage interest rates and where they are going. There is so much more that goes into whether interest rates go up or down. It is hard to predict even for a mortgage expert or economist.

How it affects you

Of course mortgage interest rates matter somewhat when you are deciding to buy or sell a home. The current interest rate will make a difference in your monthly payment and what you can afford. Remember, if you can afford the payment, whether you buy or sell a house should be based on if it makes sense for you personally. For example, if you need to sell a home because you are getting a divorce or because you just had a new baby, you should make the change in your housing because it is important to you personally. Interest rates, whether they go up or down this week, should not really matter.

Home Buyers

So what do the Fed’s interest rate changes mean for home buyers and sellers? It is important to understand that mortgage interest rates are influenced by complex factors. This includes, but is not limited to, the Federal Reserve. As a buyer you should stay informed about what is happening in the economy. You should work closely with your lender to get a feel for what mortgage rates likely will do and how that could affect you. Don’t want to time the market perfectly. There is no perfect. Lock your rates when the numbers work for you.

Home Sellers

As a home seller, it is easy to get caught up in the belief that the lowering of rates will mean that home buyers will be flocking to your home. Lower rates may mean more buyers in the market. The most important thing for you to focus on when selling your home is pricing your home competitively and making sure it looks its best.

Time for photography

You have contacted an agent to sell your home. You have met with them and signed all of the necessary documents. One of the next steps is having your home photographed. Preparing your home for real estate photography is crucial for attracting potential buyers. Preparing for the photos means making sure that your home looks its best, so that you can sell for top dollar. Here are some instructions for preparing your home for your photo session.

Make sure your home looks its best

One thing to keep in mind as you prepare for your photo session is that your home will photograph just the way it is. That means if a comforter on your bed is not straight, if will photograph just that way. If the dog bowl is in kitchen, it will be in the kitchen and in the picture. It is important to make sure your home looks its best in each area of your home. Here are some tips for you to make sure your home looks its best.

Remove clutter

It is important that you remove clutter from your home. Remove the clutter from the counter tops in the kitchen, living areas and throughout the house. Wipe down surfaces, including counter tops, appliances and cabinets. Make sure that magnets and photos are off the fridge. Put all of the dishes away and make sure the sink is empty.

In living areas, of your home, again, remove clutter. Arrange your furniture to create an open and inviting space. Fluff your cushions, and pillows. Make sure that lights are on and curtains are open to let as much light in as possible. Turn off the TV and hide remotes.

Clean, clean, clean

In bathrooms of your home, clear all surfaces of toiletries including toothbrushes, soap and razors. Remove extra towels, and bathmats. Wipe down all surfaces, including sinks, showers the toilet. Make sure that the toilet seat is down. Also make sure that glass shower doors and mirrors are streak free. Keep the shower curtain open, but remove shampoo, conditioner and soaps.

It is important that your bedroom also be clutter free. Make your bed and fluff pillows. Remove anything under the bed that might be seen in pictures. Clear away any items from your closet floors and shelves. Less is better in your closet. Removing some items will make your closet appear more spacious.

Don’t forget the exterior

The exterior of your home should also look its best. You want to give a good first impression. Time any overgrown plants and trees. Make sure the lawn has been recently mowed. Remove toys from the yard and clean up any pet waste. Be sure to remove any dead or dying potted plants and replace with new. Uncover pools and hot tubs so they look inviting.

Remember being prepared is the best way to get the best photos. According to a study done by Zillow, homes with clutter-free, clean photos sold 32% faster than homes with cluttered photos. By following these instructions, you can help ensure that your home looks its best for your photographer. This also increases your chances of selling your property for the highest possible price.