The Value Of Market Reports...

Advantages of Selling Your Home in the Winter

This time of year I always start to get the same question. Should I sell my house now or just wait until the spring when everyone else sells their houses? This seems like an obvious answer until you see a few key points. 

1. It is too cold, no one wants to look at houses in the snow? In Knoxville, Tennessee, where I am from, we really do not get a lot of snow. As a matter of fact, we are lucky if we see any snow at all. Therefore this common hesitation doesn't apply to this area. 

2. No one is looking for houses in the winter time. This is plainly not true. There may be less people looking to buy. However, the ones who are looking are more serious. There may be less property visits during the cold months but the ones who are willing to drag their realtor out in the winter must be pretty serious. Wouldn't you rather have less traffic if they are more serious buyers? 

Another point is that with less inventory during this time of year means less competition. During the spring there are going to be a lot more homes to compete against. I would rather be a big fish in a smaller pond, than a small fish in a big pond full of other fish. 

3. I can't decorate my house for Christmas. I disagree. I say, don't just put out your Christmas decorations, go all out. Make your home the best decorated house on the block. A house can look truly beautiful, warm, and inviting during the holidays. One very strong buyer desire is to be in the new home by Christmas. Last year I had four sales in December specifically for this reason. One of them actually closed on Christmas Eve to make good on my promise to get them in by Christmas.

Another idea would be to put some lights around the realtor's "for sale" sign too. Please make sure that your realtor replaces the holiday pictures in their marketing after the holidays. It looks nice while it is in season, but after that it just looks dated. More on that on point #5.

4. I like to invite friends over for holiday parties. I can't do that if my house is for sale. Are you kidding? This is the perfect opportunity to show off your home to a large group of people. Don't just invite a few people over, host the Christmas party. Your friends might not be in the market to buy a home, but you don't know who they know who might be in the market. It is estimated that most people know at least 150 people very well at any given time. 

5. If we don't sell the house over the winter, it will appear stale in the spring. This might be true but there are tricks you can do to lessen the impact. The most effective change you can make is to adjust the price. If the house was listed all winter and it didn't sell, the chances are the price is too high. Have a price adjustment, even if it is just a small one. Also, update the pictures. Most likely the original pictures were taken with leafless trees and plants without flowers. Your house will look drastically different with some fresh blossoms and updated landscaping. Be sure to take the picture of the house from a different angle as well. Someone who saw your house a thousand times on the internet will be forced to pause and look at the house again in a fresh light. 

6. That tax credit expired, it won't help me sell my house. Actually, congress decided to extend the tax credit through April. Not only did they extend it, but they opened it up to more people. If you wait until the spring you will miss this large group of buyers.  

7. I'm still not convinced. I really need to sell but think we should wait until the spring. My final point is best illustrated with a story. In my past life I worked at a computer retail store. One day our general manager made a surprise visit to our store. He looked around our sales floor and then looked in our stock room. He proceeded to bring out boxes and boxes of inventory that we had in our stockroom that was not on the sales floor. "You can't sell, what your customers can't see!" If someone is not actively trying to sell your home, no one will know it is for sale, and no one will buy it. 

These are just a few points to ponder as we head unto the winter months.

 

 

Chris Brown, Keller Williams Realty, Knoxville, TN - 865-694-5904
http://www.ChrisBrownRealty.com

You Think Your House is Worth WHAT?? Pricing Your Home to Sell

You Think Your House is Worth WHAT? Pricing Your Home to Sell

O.k., so you've looked on the Internet, you've checked the Real Estate Weekly - and you've talked to your Neighbors.  You're pretty sure you know what you WANT your home to be worth.  Next step?  You call the Realtors in.

Everyone says you should interview 3 Realtors - so that's what you do!  And sceptically you await their Verdicts!  Does the highest Bid (because that's what it often is)  win your Vote?  Well it shouldn't and let me tell you why.

 

 

                                                      

                                                              

                                                  BUT Your neighbor's house just sold for XXXXX!

 

First of all, Realtors have access to the same information Online.  By doing a CMA (Comparative Market Analysis) they should be able to come very close to the Range of Your Home's Value.  They will see which homes are currently Listed, those that will be in direct competition with Your Home; they will see which comparable homes have Sold recently; and they will ALSO see which homes have 'Expired'....(Listed But Not Sold). That's the Starting Point!

If you use a Local Realtor - which is what I Recommend- they'll also be able to take into consideration different factors about your neighborhood - like development, schools, safety, proximity to transport etc.     

                                                            BUT Your House has been upgraded!

                                                                 

Now where no 2 homes are exactly alike - chances are we've seen most of the homes for sale in your area and have an inside view that you may not have seen.  Even online photos won't give you a complete view of how these homes compare. 

In many ways - it's the Buyer that ultimately determines the value of your home. A house is worth what somebody will pay for it.  It's important to try and anticipate what MOST buyers will pay for it. If the price is too high - you may just end up remaining THAT Buyer!  If your home should by some chance sell for more then the estimated value, remember the home still needs to be Appraised for the Buyer's Bank, and if it's overpriced it just may not!

                                      BUT That's What INEEEEEEEED to Get for My Home!

There is the odd time that a home is unusual and there are not direct comparables, sometimes this requires a trial and error strategy where we have to gage potential buyer responses in order to fine tune the price. 

Another factor is the current 'Real Estate market'.  Is it a  Buyer's market or a Seller's market - or is it balanced? What kind of standing inventory is in the market in your price range. These will all factor in to your pricing.

The value of a home can also be estimated in part by using the price per square foot calculation.  But you do have to use a sliding scale of adjustment.  The 'core' of the home is worth more then the peripheral square footage. ie. the price per sq. foot for a 1000 sq. foot rancher will be higher then that of a 3000 sq. ft. basement home. 

Should you start higher - after all - you can always come down??? No! If you do that you should be charging your competitor a fee for helping them sell THEIR home!

Remember the most critical time for selling your home is in the first 30 days.  Longer then that you can bet your bottom dollar, (and unfortunately that's probably what it will end up being) that the Buyer will be paying attention to your 'days on market' when making both their buying decision and price point! 

How do you know if your house is priced right?  Feedback! Your Realtor will be calling to get feedback on showings from both the Buyer and their Realtor.  If you've had over 6 showings and have been on the market for 3 or so weeks  that should give you some idea of what the market thinks.  Unusual or high end homes could be the exception here though. 

Sometimes the most important factor is YOUR motivation. How motivated are you to sell?   I know a lot of Seller's like to tell us that 'they don't HAVE to sell'.......and in most cases that's true - you don't!  But if you do want to sell your home call a Realtor that knows your market and will be honest with you - because that's what a professional does - they Help you Price Your Home to Sell!  

 

                         

  

                                             

 

If you or someone you know is thinking of Buying or Selling property in Cultus Lake, Chilliwack, Hope, Abbotsford, Langley or anywhere in the Fraser Valley Area of B.C. - or if you would like more information please give Liz  Moras of Landmark Realty Chilliwack a call at- 604-799-0459 or e-mail at lizmoras@gmail.com.     

Copyright © 2009 By Liz Moras, All Rights Reserved. All photos by Liz Moras ( except the one's I'm in!). All information provided by this author is only an opinion, it is not guaranteed, may be based on information collected from several sources, and may be time sensitive.  It is not necessarily representative of the opinions of Landmark Realty Chwk. Ltd..   

                               

 

 

Middlebury, CT Property for Sale

REO Urban Legends

It seems like everybody has a story about a cousin or brother in law or long lost Uncle who offered half of the asking price on a foreclosure and got it. It has almost reached urban legend status in this market. I have bad news for people that believe this story. There are no giant alligators in the sewer. If you say Bloody Mary three times in front of a mirror, she will not appear. Even more terrifying, there are no bank owned properties in Big Bear that you can buy for half of the list price.

As a matter of fact, writing lowball offers is a sure way of losing out on a property you might really like. When an asset manager sees an offer that is over 10-15% low, they automatically put that offer into the crank file. Usually, they don't even bother countering an offer that low. When they do counter, it is usually for $100.00 off of the listing price. The only thing that happens when you write a really low offer is you lose all your credibility. Instead of coming off as a serious, viable buyer who is looking for a good deal, you come off as a shyster trying pick the bones of an unfortunate soul.

When a bank prices an REO property, they don't just pick a random number. They don't price it off of what the remaining loan is. They actually have Realtors give them price opinions on current market value. Then, they price the home at a fair market price. Usually, this a very good deal. Just because there is only $50,000 owed on $200,000 property, does not mean the bank will take $100,000 for it. They will sell you the property for a good, fair price. If you come in at $125,000, they will not even acknowledge you. If you come in at $150,000, they will counter at $199,000. If you come in at $175,000, they will probably give you a real counter to work with.

I am not saying that it is impossible to get a great deal. It is highly possible. You just have to reevaluate what a great deal is. If a home last sold for $350,000, and you buy it for $250,000, you are getting a great deal. You just need to be realistic. Plus, while you are dickering around with lowball offers, the odds are very good that someone who understands what is going on will come in with a respectable offer, and you will lose out. If you think it is a good deal, it is certain that somebody else will too. I feel the best strategy is too give the bank the opportunity to say " Yes."

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