Ok, here's a quick list of things to do when prepping to sell. I will pretty much always tell you to do these things so go ahead and do them if you are going to call me!!
1) Take down the wallpaper--all of it--almost always. There are very, very rare occasions I would say to keep it. Very rare.
2) Panelling--Specifically talking about the thin plywood panelling that looks like wood--75% of people hate panelling, 20% will tolerate it and 5% like it. The real pine tongue and grove stuff is a bit different, but only a bit. Consider painting or just plain removing and drywalling.
3) De-personalize--this is more than just taking down pictures. Return your home to a point where it looks more like a model home. That said, in a Pinterest world, a little bit of creativity is ok. The thing is, if you have somehow integrated something into the home (attached it to the walls), that buyer may ask you to leave it!! I had a client one time that had a very special mantle piece made from her granddad's barn and did not want to leave it. My advice was go ahead and take it down and replace it. I've seen the same with specific light fixtures. Don't let something sentimental like that ruin a sale.
4) Flooring--Carpet is cheap. If yours is stained or smelly, have it replaced. It will make a HUGE difference. If you have animals and have it replaced, try REALLY hard not to let the animals back on it.
5) Consider the kitchen--Number 1 money room in the home--will absolutely make or break a sale. Let's talk about this one.
6) Outdoor spaces--huge for people right now. Got a deck or patio, don't forget to dress it up.
7) Go ahead and make a list of things you love about your house--why did you buy it? Help me help you!!
8) Clean out your closets!!!! Make a few Goodwill trips, pack away the stuff that is out of season (cautiously in TN!), get your shoes off the floor, throw away old shoe boxes! Make these spaces feel spacious!
9) Be prepared to keep it clean and show ready. I know this sounds dumb but it is so important. Change the filters regularly, make your beds, open blinds, put your undies in the hamper. Make these habits so that last minute showings can be accommodated.
These are just a few suggestions to get started. Taylore and I can help with your specific situation when the time comes. If you are thinking about spending money to prepare to sell, lets put the numbers together first to see if that is a wise decision. Sometimes you will do more than you really need to!!
Showing posts with label selling a home. Show all posts
Showing posts with label selling a home. Show all posts
Thursday, February 6, 2014
Thursday, November 29, 2012
How's the Market?
Probably the most common question I get is, "So, how's the real estate market these days?" Many people ask because they are curious in regards to their own situation. They may be cautiously optimistic that things are looking up a bit and their real estate investment is perhaps improving. Well, I have good news. In our particular area (most of Rutherford County and southern Davidson), the market has, at the very least, stabilized. Prices have stopped plummeting, inventory is drying up and sellers are not nearly as vulnerable as they were 2 years ago. There are still pockets where the recovery hasn't really started but almost everywhere has at least leveled off.
To make matters better, some sub-markets are actually starting to recover quite nicely. For example, the traditional "first time buyer house", if in good shape and priced correctly, will sell very quickly. The best part is that "priced correctly" does not mean that it is deeply discounted. This sub-market has made somewhat of an improvement and resurgence in the last 10 months to 1 year. The best part for these sellers is that their most likely target to purchase is still somewhat on sale and interest rates are still spectacular.
So, for example, let's say you have a 1300 square foot house in Westfork in Smyrna and it is in pretty good shape. You can probably get around $100/square foot (or maybe even a little more) and sell it in 2-3 months TOPS. I've sold 4 in that neighborhood this year in less than 10 days each. The average family in that neighborhood is looking to move up to a home in the $175k-$250k range. That price range in the Smyrna/North Murfreesboro area is still fairly ripe with inventory and still somewhat on sale. So, the seller in Westfork can get a great deal on a move up home and basically "win" on the sale and the purchase side!
Obviously this is all hypothetical and your situation is always unique but the point is, most first time sellers/first time move up buyers are in a really good position right now if they look at the big picture.
Does this mean that folks in the $175k-$250k range should not sell? NO WAY! There is more inventory in this range than the lower range, for sure. The thing is, there is a lot of diverse inventory--short sales, foreclosures, "As-Is" traditional sales, estate sales, etc. A normal, no weird stipulation, great condition home in this range, price correctly, will still sell. It may not sell in 10 days, but it definitely will sell. The log jam has been broken free (a little) and the water is starting to flow.
If you are curious about your situation and just want a snapshot of the market, as it pertains to YOU, give me a call. Information is always free. If you want to sell or buy but are unsure of the steps, give me a call. If you are currently working with another Realtor and don't like the service you are getting, definitely give me a call. I know you will be pleasantly surprised. 615-668-2353 www.harmonworksharder.com
To make matters better, some sub-markets are actually starting to recover quite nicely. For example, the traditional "first time buyer house", if in good shape and priced correctly, will sell very quickly. The best part is that "priced correctly" does not mean that it is deeply discounted. This sub-market has made somewhat of an improvement and resurgence in the last 10 months to 1 year. The best part for these sellers is that their most likely target to purchase is still somewhat on sale and interest rates are still spectacular.
So, for example, let's say you have a 1300 square foot house in Westfork in Smyrna and it is in pretty good shape. You can probably get around $100/square foot (or maybe even a little more) and sell it in 2-3 months TOPS. I've sold 4 in that neighborhood this year in less than 10 days each. The average family in that neighborhood is looking to move up to a home in the $175k-$250k range. That price range in the Smyrna/North Murfreesboro area is still fairly ripe with inventory and still somewhat on sale. So, the seller in Westfork can get a great deal on a move up home and basically "win" on the sale and the purchase side!
Obviously this is all hypothetical and your situation is always unique but the point is, most first time sellers/first time move up buyers are in a really good position right now if they look at the big picture.
Does this mean that folks in the $175k-$250k range should not sell? NO WAY! There is more inventory in this range than the lower range, for sure. The thing is, there is a lot of diverse inventory--short sales, foreclosures, "As-Is" traditional sales, estate sales, etc. A normal, no weird stipulation, great condition home in this range, price correctly, will still sell. It may not sell in 10 days, but it definitely will sell. The log jam has been broken free (a little) and the water is starting to flow.
If you are curious about your situation and just want a snapshot of the market, as it pertains to YOU, give me a call. Information is always free. If you want to sell or buy but are unsure of the steps, give me a call. If you are currently working with another Realtor and don't like the service you are getting, definitely give me a call. I know you will be pleasantly surprised. 615-668-2353 www.harmonworksharder.com
Wednesday, February 22, 2012
Disconnect in Housing
Yesterday at the sales meeting a new agent brought up a really, really important topic that I feel compelled to write about. It is an age old problem anytime someone is selling just about anything. It has been compounded in the housing industry, however, with the volatility and the tremendous swings we have had in the last 10-15 years. The problem is, of course, pricing what you have for sale and, conversely, figuring out what to pay for what you are buying.
Real estate, at its core, is actually very simple. People have a need for housing. Other people build houses. The first people find one that fits their personal tastes, needs, etc. They agree on a price and the home transfers ownership.
Of course it is not that simple. There are legal requirements for registering ownership, lender requirements, laws to follow when marketing, etc, etc, etc. The main complication I want to focus on today is in pricing. How does the seller offer at a price a buyer is willing to pay? I specifically want to look at the current climate we are in.
Let's rewind about 15 years. In the late 90s, we saw growth, lots of it. Government started telling people to buy homes. Lenders starting making that more possible. Lots and lots of people wanted to buy and lenders said "yes". This flooded the market with buyers. That means that sellers could get basically what they asked for. Life was good if you were a seller. Agreeing on price was a fairly simple process. Seller asked for $----- and buyer, if he liked the home, said ok. They did this because there was a shortage of homes available. Now move forward a few years. The feeding frenzy escalates beyond anyone's imagination. Literally anyone who wanted a loan could find SOMEONE to give them one. This means we basically have an infinite supply of buyers and sellers are making tons of money. If the seller did not want to sell, they could still make money by taking out the equity in their home. This volatility (and yes, it was volatile--just volatile upwards) made it somewhat more difficult to agree on a price because sellers started trying to sell at what the house could be worth at some unknown time in the future. Buyers still were buying because they thought it was their right to own a home. Lenders were still lending because it was their paycheck (and lots of big ones at that!). Plus, if they didn't lend, someone else would. Then it got really complicated.
Depending on where you lived, the crash started in 2007, 2008 or even 2009. Basically, a few lenders realized people were not paying their bills. Then a whole bunch of people weren't paying their bills, then a WHOLE bunch of people weren't paying their bills. Lenders were in hot water and so they retracted--big time. It became harder and harder and harder to borrow. This meant the infinite supply of buyers that were driving prices up and up and up dried up--AND FAST. The momentum swung way more quickly than we could stomach and thus prices dropped big time. This meant that you could have literally had your house appraised at $200k one day and $175k the next--or sometimes worse. The media compounded the problem by using fear tactics and a sort of "self fulfilling prophecy". In other words, they started talking about how awful the housing market was, buyers pulled out and the market became worse.
Normally there are a handful of people that can't pay their bills. The market absorbs those issues with no problem. When the market becomes flooded with those issues, prices drop further. This compounds the problem that we started talking about--agreeing on a price. Lets look at a hypothetical that I deal with on a regular basis.
Homeowner wants to sell his home. First step is to figure out how much it is worth. They had the home appraised in 2008 when they refinanced and took out $20,000 to buy a new car and pay off some other debts. They now owe $175,000 on the house. They paid $185,000 in 2005. They have $10,000 in equity still, right? When they invite the Realtor over to evaluate the home and price it for them, they find out that their neighborhood has had 10 homes sold in the last year. 3 of those were foreclosures, 4 were short sales and 3 were "normal" sales. Based on comparables, the home should sell for around $170,000. This causes an array of emotions--anger--at the market, at the Realtor that sold them the house, at the Realtor that is in front of them, at themselves, Sadness and hoplessness--like they are stuck, and of course, defiance. They are determined to sell the house and, further, to sell the house at their price--$190,000 because it is silly to think they could actually LOSE money on their home. So they interview a few Realtors. Most of them tell them the same story. Then they find one that is willing to list it at $190,000. That Realtor works hard with good pictures, a well crafted marketing plan, open houses, etc. Surprisingly, they get no activity. So the homeowners fire the Realtor and get another. This time they agree to $185,000. This time they also get a buyer. The buyer wants the home for... $170,000. They disagree because of what they paid and what they owe. Negotiations ensue. Finally, they settle on $180,000. Then the home appraises for $170,000. This seller did not have an accurate perception of the market.
On the flip side--there is a buyer that watches all the "experts" on TV talk about how bad the market is. They watch the late night infomercials about buying homes for pennies on the dollar. They know everything there is to know about real estate except how to get into the homes. They call a Realtor to open doors for them. They only want to see homes that are "great deals." They look at 30-40 homes. Some of those homes are great deals based on condition, price compared to the market, location, potential, etc. They aren't good enough because they aren't "pennies on the dollar." What they don't realize is that the media shows a national picture and we live in an ultra local market for housing. What happens in Smyrna is not the case in LaVergne or Antioch or Nolensville. They get discouraged and angry that the Realtor is not showing them the best deals. Then, as humans are prone to do, they fall in love with a home. They want to offer 30% less than asking price. The Realtor tells them that the home is priced pretty close to right and it should only be about a 5% reduction. They make the offer anyway and the seller doesn't even acknowledge them. 2 weeks later it sells for 3% above asking price with closing costs.
The point is this, both sides have misconceptions about the market right now. Both are selective in the information they retain. Both are wrong. Obviously it is not always this way. Deals are still going on. I am as busy now as I have been so far in my career. Bottom line, if you are on one side or the other, find a Realtor you can trust, one who knows their local market. One who will explain the position to you. Also, take in all types of media but do so with a critical mind. Verify facts and pay attention to the scope of the report. If they talk about "national housing trends," pay very little attention to them because, just like "averages" they include all the extremes. In our area, in particular, we are a solid upper middle. We took some hits but nowhere near as bad as many other places. Even then, some areas were hit harder than others. There are some parts of Nashville, at some price points, that NEVER really lost value. Find an expert and trust him or her.
Real estate, at its core, is actually very simple. People have a need for housing. Other people build houses. The first people find one that fits their personal tastes, needs, etc. They agree on a price and the home transfers ownership.
Of course it is not that simple. There are legal requirements for registering ownership, lender requirements, laws to follow when marketing, etc, etc, etc. The main complication I want to focus on today is in pricing. How does the seller offer at a price a buyer is willing to pay? I specifically want to look at the current climate we are in.
Let's rewind about 15 years. In the late 90s, we saw growth, lots of it. Government started telling people to buy homes. Lenders starting making that more possible. Lots and lots of people wanted to buy and lenders said "yes". This flooded the market with buyers. That means that sellers could get basically what they asked for. Life was good if you were a seller. Agreeing on price was a fairly simple process. Seller asked for $----- and buyer, if he liked the home, said ok. They did this because there was a shortage of homes available. Now move forward a few years. The feeding frenzy escalates beyond anyone's imagination. Literally anyone who wanted a loan could find SOMEONE to give them one. This means we basically have an infinite supply of buyers and sellers are making tons of money. If the seller did not want to sell, they could still make money by taking out the equity in their home. This volatility (and yes, it was volatile--just volatile upwards) made it somewhat more difficult to agree on a price because sellers started trying to sell at what the house could be worth at some unknown time in the future. Buyers still were buying because they thought it was their right to own a home. Lenders were still lending because it was their paycheck (and lots of big ones at that!). Plus, if they didn't lend, someone else would. Then it got really complicated.
Depending on where you lived, the crash started in 2007, 2008 or even 2009. Basically, a few lenders realized people were not paying their bills. Then a whole bunch of people weren't paying their bills, then a WHOLE bunch of people weren't paying their bills. Lenders were in hot water and so they retracted--big time. It became harder and harder and harder to borrow. This meant the infinite supply of buyers that were driving prices up and up and up dried up--AND FAST. The momentum swung way more quickly than we could stomach and thus prices dropped big time. This meant that you could have literally had your house appraised at $200k one day and $175k the next--or sometimes worse. The media compounded the problem by using fear tactics and a sort of "self fulfilling prophecy". In other words, they started talking about how awful the housing market was, buyers pulled out and the market became worse.
Normally there are a handful of people that can't pay their bills. The market absorbs those issues with no problem. When the market becomes flooded with those issues, prices drop further. This compounds the problem that we started talking about--agreeing on a price. Lets look at a hypothetical that I deal with on a regular basis.
Homeowner wants to sell his home. First step is to figure out how much it is worth. They had the home appraised in 2008 when they refinanced and took out $20,000 to buy a new car and pay off some other debts. They now owe $175,000 on the house. They paid $185,000 in 2005. They have $10,000 in equity still, right? When they invite the Realtor over to evaluate the home and price it for them, they find out that their neighborhood has had 10 homes sold in the last year. 3 of those were foreclosures, 4 were short sales and 3 were "normal" sales. Based on comparables, the home should sell for around $170,000. This causes an array of emotions--anger--at the market, at the Realtor that sold them the house, at the Realtor that is in front of them, at themselves, Sadness and hoplessness--like they are stuck, and of course, defiance. They are determined to sell the house and, further, to sell the house at their price--$190,000 because it is silly to think they could actually LOSE money on their home. So they interview a few Realtors. Most of them tell them the same story. Then they find one that is willing to list it at $190,000. That Realtor works hard with good pictures, a well crafted marketing plan, open houses, etc. Surprisingly, they get no activity. So the homeowners fire the Realtor and get another. This time they agree to $185,000. This time they also get a buyer. The buyer wants the home for... $170,000. They disagree because of what they paid and what they owe. Negotiations ensue. Finally, they settle on $180,000. Then the home appraises for $170,000. This seller did not have an accurate perception of the market.
On the flip side--there is a buyer that watches all the "experts" on TV talk about how bad the market is. They watch the late night infomercials about buying homes for pennies on the dollar. They know everything there is to know about real estate except how to get into the homes. They call a Realtor to open doors for them. They only want to see homes that are "great deals." They look at 30-40 homes. Some of those homes are great deals based on condition, price compared to the market, location, potential, etc. They aren't good enough because they aren't "pennies on the dollar." What they don't realize is that the media shows a national picture and we live in an ultra local market for housing. What happens in Smyrna is not the case in LaVergne or Antioch or Nolensville. They get discouraged and angry that the Realtor is not showing them the best deals. Then, as humans are prone to do, they fall in love with a home. They want to offer 30% less than asking price. The Realtor tells them that the home is priced pretty close to right and it should only be about a 5% reduction. They make the offer anyway and the seller doesn't even acknowledge them. 2 weeks later it sells for 3% above asking price with closing costs.
The point is this, both sides have misconceptions about the market right now. Both are selective in the information they retain. Both are wrong. Obviously it is not always this way. Deals are still going on. I am as busy now as I have been so far in my career. Bottom line, if you are on one side or the other, find a Realtor you can trust, one who knows their local market. One who will explain the position to you. Also, take in all types of media but do so with a critical mind. Verify facts and pay attention to the scope of the report. If they talk about "national housing trends," pay very little attention to them because, just like "averages" they include all the extremes. In our area, in particular, we are a solid upper middle. We took some hits but nowhere near as bad as many other places. Even then, some areas were hit harder than others. There are some parts of Nashville, at some price points, that NEVER really lost value. Find an expert and trust him or her.
Thursday, December 29, 2011
Special Edition! New Year's Resolution
It's been a while since I have written an overtly Real Estate related blog. This is only sort of one.
I have been doing a lot of thinking lately about my job, my work, my source of income. This is the time of year to evaluate performance over the last year and to plan and strategize for next year. I've done some of that, identifying markets I want to be in, planning some new marketing strategies, etc. One thing has been bugging me though and I finally made a little headway (so to speak) today in pinpointing it. The phrase, "work as ministry" has been in my head. After several days of this thought, I've decided to work it out by writing it down. I also decided to share that writing with you in hopes that you can implement the same kind of strategy.
Work as Ministry
For most of my more mature Christian life I have heard various people espouse the virtues of treating your work as ministry. Be a witness wherever you go. Treat people as you want to be treated. What would Jesus do. All those phrases that we all know and have used to the point that they are almost cliche. The problem is that they are not very specific and don't give a guy like me some concrete things to DO to accomplish those noble goals. What I am writing now is my gameplan on how to put those cliches into practice as a Realtor. I hope that you will read these and be inspired to do the same wherever you work. I believe God expects it of us and I know that our coworkers/clients/customers/employees/employers (Christian and non-Christian) need it from us. So here goes:
How can I make my job as a Realtor into ministry?
I have been doing a lot of thinking lately about my job, my work, my source of income. This is the time of year to evaluate performance over the last year and to plan and strategize for next year. I've done some of that, identifying markets I want to be in, planning some new marketing strategies, etc. One thing has been bugging me though and I finally made a little headway (so to speak) today in pinpointing it. The phrase, "work as ministry" has been in my head. After several days of this thought, I've decided to work it out by writing it down. I also decided to share that writing with you in hopes that you can implement the same kind of strategy.
Work as Ministry
For most of my more mature Christian life I have heard various people espouse the virtues of treating your work as ministry. Be a witness wherever you go. Treat people as you want to be treated. What would Jesus do. All those phrases that we all know and have used to the point that they are almost cliche. The problem is that they are not very specific and don't give a guy like me some concrete things to DO to accomplish those noble goals. What I am writing now is my gameplan on how to put those cliches into practice as a Realtor. I hope that you will read these and be inspired to do the same wherever you work. I believe God expects it of us and I know that our coworkers/clients/customers/employees/employers (Christian and non-Christian) need it from us. So here goes:
How can I make my job as a Realtor into ministry?
- Implement the golden rule--I know it is one of the cliches but it is a good one. I truly need to treat others as I would want to be treated. Even more, I need to treat people as God would want me to treat them. This means I just naturally go the extra mile. I provide more than they expect, all the time, without them asking. EVEN moreso, I need to do it with a really joyous, thankful, genuine disposition. Do it because I love them as people.
- Understand that I am helping them with something far more important and noble than just buying some product. A house is (for the VAST majority of people) the largest single investment they will ever make. A house is something they dream about, somewhere to raise their family, somewhere to build memories and somewhere to turn into HOME--a concept almost everyone longs for. It can be a complicated task and I am honored when someone trusts me to help.
- Delight in the small points of this process. People make decisions about their home based on ALL KINDS of reasons. For some it is simply the schools, the square footage, the condition and the overall layout of the house. Others go by "the feeling" the home gives. I need to be open to all of those deciding factors. I need to tune into those factors. I need to fight the urge to become frustrated when someone takes a long time to decide and seems to be too picky. I need to delight in the meticulousness some people exercise--after all, this is where they will call home.
- I need to be 100% honest and up front with people. I am an honest person but even so, I will sometimes sugar coat things. No one benefits from that in the long run. This policy may cost me some listings but in the long run, it will help. More Realtors need to do this. You help no one if you have a listing for 6 months with no showings. If the house smells, tell them. If the house needs work, tell them. If their price is WAY out of line, tell them. Set the expectations. I know there are some reasons for listing an overpriced property but don't give false hope that it will actually sell
- Humility, honor, integrity and thankfulness--These are the words that should govern my actions.
- I can only do so much and God does the rest--this gives humility.
- Honor is a 2 way street--I am honored that my clients trust me and I honor them, my family and my God by treating people well
- Integrity--goes without saying
- Thankfulness--again, thankful for my clients' trust and thankful for God's blessings. Also thankful that I live in a place where I can help people in this fashion.
- NEVER give less than my full effort. Again, this is someone's home that I am being trusted with. Less than 100% is not acceptable--even if I am tired or grouchy or whatever. Remember that this is a SERVICE job. It is my opportunity to serve my fellow man. This is a super important point of emphasis for me.
- Focus on the family--including my own. I cannot do this without my family and I need to keep telling myself that, no matter how busy I am, I owe it to Cindy, Jonas and Maggie to put them first. When I do this and still get the "job" done with efficiency, I set a great example for my clients.
- Value the relationship that is being forged. When people step into my path and we work on their largest asset, there is a natural relationship planted. There are no accidents and I HAVE to put value on the relationship that results from helping with a business transaction. It is an emotional process to buy and sell the home. Don't be closed off and just get to know people on a superficial level. If they are open to it, take the opportunity to actually build a relationship--even if the person is a little weird.
- Finally, to really see this as ministry, I need to keep God in it. So many people are afraid to talk about God because it might offend someone. I don't need to preach but I don't see any reason why it can't be woven into the conversation. If that conversation is rejected, then leave it alone but I should always try.
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