Even though it's more of a seller’s market than a buyer’s,
sellers must prepare their homes before listing them in order to appeal to
buyers who are value-sensitive following the recession. The best way to sell
your home is to hire a professional Realtor like myself, who is an expert on
the market and has experience selling homes. Contact me to hear how I help my
clients successfully and quickly sell their Central Ohio homes. The below tips
will also help your home sell in a timely fashion:
Enhance
curb appeal. This can be as simple as mowing the grass, planting flowers,
repainting the garage door, and removing lawn décor. Curb appeal is a potential
buyer’s first impression of your home, so it is critical to maintain.
Depersonalize.
Remove pictures of you and your family, but feel free to keep neutral art on
display or swap out photos with stock images. The point here is that buyers
should be able to picture themselves living in your home—and starring at
pictures of your children will not help them do so.
Declutter.
This goes beyond cleaning up and making the beds. Decluttering entails putting
things in closets, the garage, and out-of-sight locations such as storage
units. For instance, put away (or throw away) the pile of books or magazines on
your coffee table. You want surfaces (and floors!) to be as clear as possible.
This is especially important for smaller homes, which can benefit the most from
maximizing their space. Take the kitchen, for example. Put some decorations and
appliances away: buyers do not want to see your toaster, blender, George
Foreman Grill, microwave, Keurig machine, and butter dish—they want to see your
counter space. The same holds true with furniture. It you have any
non-essential furniture pieces that do not complement the rest of the house,
remove them during showings. Good examples are children’s art tables or chairs.
Make
minor upgrades. Granite kitchen countertops are increasingly common in new
builds but were rare for homes built in the 1990s. Upgrading to granite
countertops and stainless steel appliances will help put your home on a more
level playing field with new builds. Buyers also like to see updated bathrooms.
New front doors and garage doors offer some of the highest returns on
investment. Check for and fix cracks in your foundation, stucco, or any other
structural areas. You can likely fix them now for less money than you could
when a home inspector points them out to potential buyers. Sealing cracks ahead
of time can reduce the time your homes spends on the market since less work
will be required during the selling process itself.
Keep it
comfortable. Don’t overheat your home or blast the AC. Be mindful that,
when buyers are arriving in coats, they won’t appreciate an unusually warm
house.If you have pets, keep them in
the garage or backyard—somewhere where they will not interrupt potential
buyers.
Preparing your home to sell is no easy task, and prospective buyers often have many questions when viewing a home. One of your first tasks is to find a Realtor. Contact me if you are interested in buying or selling a home in Central Ohio! After you've secured a Realtor, help keep track of important information by using the following lists:
Basic information. This list should include facts such as square footage, year built, number of bedrooms & bathrooms, property taxes and school district. Most of this information will accompany your online listing; however, it's good to keep this information on hand.
Best features. One good way to develop this list is to name what you will miss most about your old home and neighborhood, such as the nearby walking and bike paths, sun room, private backyard or eat-in kitchen. Best features go beyond basic information and really "sell" your home.
Updates and improvements. Not only are updates and improvements important to buyers, but also they affect your home's appraisal value. Make sure to keep track of home improvements and replacements, including when they occurred and how much they cost, for at least the previous three years. If you haven't made upgrades for a little while, considering revamping your kitchen and/or bathrooms. Other projects with a high ROI include replacing your front door and garage doors to enhance curb appeal and adding a back deck.
Things to do before you sell. This list is more for you than for prospective buyers. Have you been meaning to repaint a wall? Call a cleaning or landscape service? Research moving companies and change your address? Perhaps your biggest task will be de-cluttering and depersonalizing your home--both of which make your home more attractive to buyers. Whatever it is, right it down here before you forget! For a more comprehensive checklist to prepare your home to sell, see the image below:
So, you've received an offer on your home. What now? Your REALTOR can help you evaluate any offers you have. One concern is the buyer's ability to financially fulfill the contract terms. Your RELATOR can check for the pre-approval letter that should accompany an offer. Also consider the following points:
How does it compare to asking price?
Will your home appraise for the contract price?
How large is the earnest money deposit?
Have the buyers asked for assistance with closing costs or for you to make repairs or provide home improvement credit?
Is the requested settlement date appropriate?
If you're not satisfied, you can reject the offer or draft a counteroffer than lists different terms. Be prepared to compromise to some extent. Keep in mind that buyers will likely conduct home inspections, and be prepared to addess any resulting concerns. Before you close, you'll also want to get your home appraised, if you have not done so already. The buyer and seller must agree on a settlement day. Sellers can enter into a "rent-back"agreement with the buyer if they wish to continue to live in the home after the settlement date by paying rent to the buyer. Finally, title to the home is transferred at closing. Payment is closely examined and distributed by the closing agent and the buyer provides funds to buy the home. For more information on what the seller must pay upon closing, click here.
Now you can go home, open a bottle of champaign, and cheers to the next page in your life. Oh, and you should probably get packing!!
Before you list your home for sale, you should prepare your home so that it shows well to potential buyers. This includes improving your home in ways that do not involve capital investments (which you are unlikely to recover). Cosmetic improvements (painting your home, landscaping, etc) are a good place to start. You'll also want to de-clutter your home, which involves cleaning your home and putting away things that sit out and make a space look busier. If you have kitchen items that you store on top of the counter, for example, you can put them in cabinets or drawers instead. This will make the countertop appear larger and neater. It's okay to leave out a few pictures here and there, but it's best to put photos away too. Aside from taking up space, pictures inhibit buyers from imagining your home as their own.
Next, you should hire a REALTOR, which is a real estate agent who belongs to the National Association of Relators (N.A.R.). REALTORS abide by a code of ethics, have access to a broad range of learning and certification opportunities, and serve as community experts. Feel free to meet with multiple REALTORS to see who you feel most comfortable listing with. Ask important questions, such as "what services do you offer? What experience do you have with the area I live in? How will you price and market my home? What is your fee?" If you are selling a home in Central Ohio, contact me to set up an initial meeting! I have experience in many communities, including but not limited to Dublin, Hilliard, Powell, Upper Arlington, Westerville and Worthington. You can also find a REALTOR on Realtor.com Once you've chosen a REALTOR, she or he will work with you to set the list price. Naturally, sellers want to get the most money they can for their home. However, an overpriced home is the number one reason that home doesn't sell. The listing price should reflect many factors, including location, competitiveness of the housing market, economic conditions, and owner needs (do you need to sell your house in a month because you are moving, or can you afford to wait a bit longer until a more attractive offer comes in?).
Your RELATOR may suggest further improvements or repairs that will help your home sell faster. Your REALTOR will then market your home, which entails listing it on the MLS, hosting open houses, sending out direct mailings, reaching out to other real estate agents who have potential buyers, taking photos and videos, etc. Ask your REALTOR to show you his or her marketing plan upon an initial meeting. How can you help? Provide your REALTOR with community information (amenities or sports leagues, for example) so he or she can better know the area. Keeping your home clean and tidy at all times is very important, since showings can occur last minute. Finally, leave the home during showings and open houses. Potential buyers stay longer in homes when the current owners are not present.
Read "How to Sell Your Home: Part 2" next week to find out how to evaluate offers and make it to the closing table! Click on the video below for more details on how to prepare your home to sell.
Some sellers try to save on commission by listing their home "for sale by owner." Instead of the listing being entered in the MLS, which requires an agent and feeds to more than 900 internet sites such as Realtor.com, for-sale-by-owners (FSBO) market their home using yard signs, alternative websites, and word of mouth through friends, relatives, and neighbors. 31% of FSBOs don't actively market their home at all. Because 90% of homebuyers search the internet for potential homes, and 87% use a real estate agent to gain information, FSBOs are at a severe disadvantage.
The result? The average FSBO home sold for $174,900 in 2012, while the average agent-assisted home sold for $215,000. The for-sale-by-owner thus would likely have gained more money using an agent, even after commission. Perhaps this is why FSBOs accounted for only 9% of home sales in 2012. After all, why would a buyer be willing to take the time and effort to buy a house directly from a seller when the buyer could get much more help from a licensee?
FSBOs usually don't sell their homes for many reasons. It's difficult for FSBOs to show the property. Homes with nicer interiors than exteriors will miss out on home buyers who drive by the home and are not told of the home's great interior features. If someone does come to the door and ask to see the home, the owner takes a great security risk. Agents accompany buyers in all home showings. Moreover, any time the seller is not home, the house is off the market and cannot be showed. When you work with an agent, the property is constantly on the market, because the buyer will have a licensee to provide requested information at any time.
FSBOs face financing issues. Buyers may want help in deciding where to go for a home mortgage and may not understand the process. Oral negotiation is also a problem. A licensee will put an offer in writing and ask for a good faith deposit so that the seller only needs to sign an offer if the offered price is acceptable. FSBOs, and even general attorneys, often cannot properly and promptly fill out a contract form. Agents are expert negotiators, and written contracts ensure the buyer doesn't back out or try to buy the house for a lower-than-agreed-upon price. An agent's educational training allows him or her to draft a valid contract that will not end up in court.
Real estate agents ensure that enough time is devoted to a seller's home. Agents can help sellers fix up their home for sale, attract potential buyers, understand and preform paperwork, help buyers obtain financing, and, most importantly, get the right price within the planned length of time. Looking for an agent? Contact me to see how I can help. I've lived in Central Ohio all my life so I know today's market very well, and as a full-time agent, I'm 100% dedicated to my clients. Visit my website here.
According
to Jim Weiker’s article in The Columbus Dispatch, experts claim that carrying a
home loan into retirement is not all the bad. An increasing number of people
are keeping a mortgage longer than a job, and the amount of retirees holding a
mortgage has skyrocketed from 26.4% in 1989 to 65.7% in 2012 for homeowners
64+. Likewise, the average mortgage debt held by people between 65 to 74 of age
nearly tripled from 25,900 in 1989 to $70,000 in 2010, according to the federal
Survey of Consumer Finances. Theories on the topic vary. Some claim that these
statistics reflect “people living beyond their means and failing to save for
retirement.” Others argue that debt is “simply a fact of life, not something
they expect to end.” The survey revealed additional noteworthy statistics: 36%
of those surveyed expect their debts to succeed their assets following
retirement. Recently low interest rates support peoples’ decisions to purchase
home they may be unable to finance. Senior analyst with Bankrate, Greg McBride,
mentions that there is no incentive for retirees to pay off their mortgage.
Paying off a low-rate, often tax deductible debt is not most people’s top
priority (whereas credit card, for example, is).
The
bottom line: if you have enough cash flow to support the mortgage payment, it’s
perfectly fine to hold a mortgage after you stop working. But if you don’t have
the necessary income to support the mortgage during retirement, it’s probably a
good idea to sell your home. If you’re in this position, please consider
letting me be your real estate agent. I’m very experienced with senior homeowners,
and would be glad to help you sell your home.
Curious about what happens once you list your home for sale? It's always best to be prepared. Below please find some quick facts about the process that comes between listing your home and selling it.
After you list your home, your Realtor with enter it into the Multiple Listing Service (MLS), which feeds to hundreds of websites such as Realtor.com. You can expect to see a "for sale" sign in your yard and a lockbox on your door, which grants Realtors access to your home when showing it to potential buyers.
During open houses and scheduled showings, its best to be out of the house. This way, the people looking at it can better picture it as their own. Also, it allows them to make open comments about the home. Your agent may hold an open house for Realtors right away, followed by one for the public on the weekend. Thus, it's important that your house is show-ready when you list. This means clean, uncluttered, depersonalized, and photogenic. For ideas on how to stage your home, read my previous blog post, here.
Most people who view your home will do so in the first two weeks. Still, in a normal market, you can expect a home to sit on the market for 60-90 days. In today's housing market, this number is lower. Ideally, you should see interest in the first six weeks. If not, work with your Realtor to discuss strategy, pricing, and home improvements that will help market your home. If a buyer requests to see your home multiple times, that's a great sign!
Ready to list? Contact me. ... and congratulations!
Selling your home should be a stress free, exciting time of your life. But often, homeowners find the process overwhelming. One critical aspect of the home selling process is choosing the right Realtor. Knowing some key mistakes many sellers make when choosing a Realtor can help you avoid the same issues when selling your own home. Five common mistakes are:
Not hiring a Realtor. Some people try to list their homes "For Sale By Owner" in order to save on commission. However, there are many downsides to this practice. You can only "show" your home when you are there, you cannot market your home on the MLS, and paperwork and negotiations will be dificult without understanding the legalities behind real estate. In the end, the commission fees are well worth preventing the trouble and headache that result from tackling such a complicated endeavor alone.
Hiring a Realtor because s/he is a family member or friend. Look into ANY Realtor's history of selling homes in your area. If you and your Realtor are friends and you disagree on selling tactics, it could put a strain on your relationship.
Not trusting your instincts when selecting a Realtor. You know your home better than anyone; trust your gut when it comes to personal decisions. If your Realtor advises you to do something (for example, add another bathroom, or update your kitchen), know that you don't have to do so. Find a Realtor who understands your style, beliefs, and needs.
Following these guidelines will help you find the most suitable Realtor for you. Once hired, that Realtor can take care of many other common mistakes when selling your home, such as pricing your home based on desired profit and letting emotions interfere with negotiations with buyers. Looking for a Realtor in the Central Ohio area? Contact me. My knowledge of today's unique market and my competitive pricing and marketing plans ensure clients are in the best possible hands. I work to get sellers the best price in the shortest time without being pushy or demanding.
For more information on how to select a REALTOR, click here.
One great way to attract potential buyers to your home is by hosting an open house. Your agent is responsible for hosting the event; however, there's a number of responsibilities that fall to you as the homeowner. Read these three tips below to have a more successful open house.
1)Declutter. Put away kitchen appliances that take up counter space, heaps of books on end tables, and excessive personal mementos such as pictures. This will make the space look cleaner and bigger. It will also help potential buyers picture the home as their own. Consider storing extra furniture where it can't be seen, but don't stop there. It's best if you are out of sight during the open house. This will make potential buyers feel more comfortable and more willing to ask questions and spend time in your home.
2) Spend some money. It doesn't have to be a fortune, but hiring a cleaning service, buying new towels for your kitchen and bathrooms, and making minor repairs (fix leaky facets and replace burnt out lightbulbs) will show potential buyers that your home is well maintained.
3) Set the stage. You want potential buyers to get the best impression of your home. Take a few minutes to set the table, bathe pets and shampoo carpets to neutralize odors, and mow the lawn and pull the weeds in your front yard to enhance curb appeal. Curb appeal is incredibly important, as it informs a potential buyer's first impression.
Looking for a Realtor who is experienced with open houses and other home-selling techniques? Contact me.
Central Ohio home sales for summer 2013 stand at their highest point on record. Chris Pedon, Columbus board of REALTORS president, states that "home sales over the summer were off the charts." He notes that only one summer (2005--the height of the housing boom) even came close to seeing the same volume of home sales. Homes sold from January-August of this year exceed those that sold during the same time in 2012 by 23%, and also surpass those of any prior year. The 2,729 home sales in August of this year marks another record high, exceeding August 2012 home sales by 11%. School systems are noticing this trend, indicated by increased student enrollment in many major school systems such as Dublin, Olentangy, Hilliard and Westerville. While inventory is slowly increasing and home sales are slightly declining from earlier summer months such as July, demand still outnumbers supply. Pedon advises homeowners who have considered moving to move now, before demand further declines. Read the full housing report here.
Looking for an agent? Contact me to see what I can do for you.
Title insurance (a one-time fee that insures the policyholder forever) is a contact that protects your
ownership of real estate by making good losses from defects in title as a
result of liens and encumbrances. Whereas most forms of insurance (i.e. car
insurance) cover people for future events, title insurance protects you from
past events. Multiple
people can have different types of claims on a piece of property, such as
mortgages and leasehold rights (ex: liens due to unpaid taxes). Those who have
claims on the property own a portion of that property; however, the property
can be sold without their consultation. Because the lien stays with the
property until it is released or satisfied, the new owner may have no knowledge
about the claims on the property he/she is purchasing. Title insurance aims to
ensure you have a clear title and full rights of ownership. Still, some claims,
such as easements, will continue to remain with the land.
Title insurance companies check pubic records for
anything that may affect your ownership. They may uncover judgments against
previous owners and unpaid taxes and mortgages. The company reports these
defects so they can be corrected. Because
the title company insures your property, it’s in the company’s best interest to
clear all possible liens or encumbrances to the property before closing.
In addition to clearing risks prior to closing, title
insurance companies seek to resolve “hidden risks”—claims which may arise after
you have purchased your home, for example a forged will or deed. To protect you
against these damages, title insurance 1) defends your title, in court if
necessary, at no personal cost, and 2) bears the cost of settling the claim if
it proves valid, thus perfecting your title.
Finally, title insurance helps you to sell your home. The seller must present evidence that he/she holds valid title to the property, which can be satisfied by providing a title insurance policy covering the interests of the seller.
Click on the video below for a brief, visual explanation of title insurance.
Lawrence Yun, chief economist of the National Association of Realtors, writes in Realtor Magazine that the housing recovery is surpassing expectations. Increased demand and minimal new-home construction have increased home prices at a near double-digit pace. 1.5 million new houses are needed each year to keep home-price gains at the ideal level of 3-5 percent annually. As of March, this number finally exceeded the 1 million mark for the first time in five years, but still failed to reach 1.5 million. Home prices are expected to continue to rise even more over the next couple of years, as many buyers chase after too few sellers. While increasing home values are good for sellers, price increases often exceed income growth and thus put buyers at a disadvantage. This situation hinders the economy and leads to inflated price increases in some parts of the nation.
Those considering selling your home, you may want to take advantage of the excess housing demand. Contact me to see what I can do for you.
When
prospective buyers tour a home for sale, they often see some of the owner’s
personal belongings, such as furniture, that they would like to keep with the
home when purchased. However, there are quite a few limitations on what
personal property can legally be conveyed. Personal
property is a type of property that includes any asset other than real estate. Personal
property is movable, while real estate is not. In other words, personal property is not fixed permanently to one location as is real property such as
land or buildings. Imagine you turn your house upside down. Those items that
fall to the ground are personal property (chattel). Those items that remain
attached to house are fixtures, and can be included in a purchase and sale
contract. If you are not sure whether something is considered personal
property, I can help.
Here’s
a list of some items that a seller can and cannot convey to home buyers:
Acceptable
to Convey
Not
Acceptable to Convey
Built in appliances such as stoves
Appliances not built in, for example, blenders
Above ground pools
Patio furniture such as picnic benches
Window treatments
Lawn mowers and other lawn care tools
& equipment
Sheds
Artwork
Secured swing sets and built-in
sandboxes
Stereo systems and wall-mounted speaker
systems
Speaker systems embedded in the drywall
Televisions and projectors
Projection screens (not projectors)
Loose and free-standing shelving
Boat docks and slips that aren't real
property
Free standing microwaves and grills
Spa/hot tub and pool/spa care equipment
Pianos
Built in shelving
Furniture of any kind (bar stools,
couches, etc.).
