If you are planning on putting your home on the market this spring, you might want to thing about doing it now! Get a jump on the majority of home sellers that are considering doing the same thing.
It happens every year. I hear sellers say it year after year, "we want to wait until spring" to sell our home. This is a common thought process, as sales tend to spike in the spring. However, this is not a common market. In my area, we are still in a strong buyers market. Your home will not only be competing against short sale properties, and foreclosures which are currently on the market, but there will be an increase in inventory come spring time. It is inevitable.
I know, your home is much better than the competition, you have a bigger, better, badder ...doesn't really matter what. Everyone thinks the same way about their home. It's natural, you have an emotional attachment which is often difficult to detach from. That is why your Realtor® will offer you advice and guidance with preparing and pricing your home strategically so you shine above the competition. You need a professional and objective opinion on what is happening today in your local real estate market. This is not 2005!
If you still want to wait until spring, you better start preparing now. Focus on the indoor projects since the weather (here) is not going to allow you to accomplish much on the exterior in the winter. Here are some indoor projects that will help get your home in showing condition:
- Paint will go a long way to improving your homes appeal. Lighter more neutral colors are a safer choice, the brighter, bolder colors do not appeal to the masses.
- Don't forget to look up and paint the ceilings if needed.
- Clean your rugs, or replace them if they are in bad condition.
- Clean everything, and de-clutter as much as possible.
- Make space in your closets by removing any clothing that will not be needed until you move.
- Pack anything you do not need and label the boxes. When It comes time to move, you will be one step ahead of the packing process.
- General repairs like dripping faucets, cracked molding, squeaky doors, anything that is broken or loose should be fixed.
Get the picture? Now, lets go back to the "my house is bigger, better, badder ...doesn't really matter what" thought process. Have you done any major repairs within the last few years to improve the value of your home? Not just roof replacement, or painting, or general upkeep and maintenance. I am referring to new kitchen, new bathroom, finished basement or something that increased or improved the living space.
I ask because this is where some home sellers get stuck in relation to setting a realistic price for their home. Major renovations, or home improvements add value, but you will not recoupe 100% of the job cost in the dollar-for-dollar category. For insance, every year Remodeling Magazine publishes a national cost vs value report and below are a few excerpts from the report for more common projects. These figures reflect the New England Region, for mid-range projects. For the complete report and more detailed information please visit www.costvsvalue.com.
| Job Cost 2009 | Resale Value | Cost Recouped | Project | Job Cost 2008 | Resale Value | Cost Recouped |
| $41,201 | $24,040 | 58.30% | Bathroom Addition | $39,046 | $23,233 | 59.50% |
| $17,018 | $11,677 | 68.60% | Bathroom Remodel | $16,142 | $11,454 | 71.00% |
| $15,724 | $11,236 | 71.50% | Deck Addition (composite) | $15,373 | $10,904 | 70.90% |
| $11,207 | $9,426 | 84.10% | Deck Addition (wood) | $10,634 | $8,573 | 80.60% |
| $60,364 | $36,870 | 61.10% | Garage Addition | $58,432 | $36,361 | 62.20% |
| $58,996 | $42,995 | 72.90% | Major Kitchen Remodel | $57,215 | $41,260 | 72.10% |
| $21,951 | $17,896 | 81.50% | Minor Kitchen Remodel | $21,411 | $16,773 | 78.30% |
| $22,463 | $15,148 | 67.40% | Roofing Replacement | $19,731 | $13,133 | 66.60% |
| $10,969 | $9,432 | 86.00% | Siding Replacement (vinyl) | $10,607 | $8,476 | 79.90% |
| $11,155 | $9,182 | 82.30% | Window Replacement (vinyl) | $10,728 | $8,217 | 76.60% |
| $12,199 | $9,653 | 79.10% | Window Replacement (wood) | $11,700 | $9,044 | 77.30% |
© 2008 Hanley Wood, LLC. Reproduced by permission. Complete regional and city data from the Remodeling 2008 Cost vs. Value Report can be downloaded for free at www.costvsvalue.com.
Now that you have some information to get you thinking about selling sooner rather than later. Here are a few more incentives on listing your home now, rather than in the spring.
- There are predictions that foreclosures will rise in 2010. Some of the modified loans will still default, plus there are many more homes that are already in the foreclosure process (and rising).
- Interest rates will inevitably rise as they can not stay at historic lows indefinately.
- The first time homebuyer and long time resident tax credit. (Read more here: The Home Buying Trifecta!) There is a deadline on the program that the home must be under contract by April 30, 2010 in order to qualify for the program. Note: an average closing takes a minimum of 30 days, but 45-60 days is more realistic and does not include the time spent searching.... tick, tick, tick
The choice is yours, but why not be ahead of the crowd and list your home today? This might be your sign! Be a leader, not a follower and list your home today!
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