42 years in business.

Monday, July 25, 2011

The Property Must Sell

Sellers have different reasons for listing their property. Often times the situation is not dire, they simply want to be in a different neighborhood, area of town, or would like more space. If their house does not sell, they may be disappointed, but not necessarily in a bad spot.

However, there are many scenarios where the property must sell and owner's are feeling the pressure. For example, relocation, estate sales, medical issues, and job loss.

There are a few things to understand when selling under pressure. The sale price of the home years ago has no relevance today. Improvements that have been made will not bring back a dollar for dollar return. And improvements such as a roof, driveway, new furnace will make the property easier to sell but will not ensure a higher sale price.

It is important to keep in mind that a buyer will not pay a premium price simply because the seller feels their home is worth a certain amount.

If you are facing a deadline to sell, the Comparative Market Analysis (CMA) provided by your agent is the key to determining the initial list price because it reflects the average sale price - not list price. To sell quickly and stay ahead of the competition a seller should list the property below the average sale price or market value. Market value is what the buyer is willing to pay for a house. It is important to look at recent sales because a house that sold even a year ago may not reflect current market value.

If you need a quick sale, the best approach is to list under market value. An under priced home will seem like a bargain and attract more attention. It is always better to sell low sooner than to reduce the price and sell low later.

*image provided by google images

Wednesday, July 13, 2011

Cost v. Return

What improvements give you the biggest return on investment? This can be a tough question to answer and quantify, however there are some definite ways to improve a property that will get a seller a better sale price.

HomeGain did their annual home improvement and staging survey. The marketing company surveyed nearly 600 real estate professionals to find out which DIY home improvement projects give sellers the biggest return on investment

The following are six projects under $1000 (amounts estimated) that made their list:

1) Cleaning and de-cluttering - Remove any personal items, clear off counter tops, organize closets and shelves, and make home sparkling clean

Cost $50-300
Return- $ 1,990

2) Brightening- Clean all windows inside and out, replace old curtains/blinds, update lighting fixtures, and remove any thing that blocks light from the windows (ie: china cabinet, bed frame)

Cost- $375
Return- $ 1,550

3) Smart staging- rearrange furniture, remove furniture to make room seem bigger and create a good flow, bring in new accessories and furnishings (could be from other rooms in the house) to enhance rooms.

Cost- FREE
Return- $2194

4) Landscaping enhancements- To create curb appeal and freshen up back yard add mulch, bushes and flowers. Maintain lawn and current plantings well.

Cost- $540
Return- $1,932

5) Repairing electrical or plumbing- Fix leaks under sinks, remove any mildew stains, and ensure all plumbing is in good working condition. Update the home's electrical with new wiring for modern appliances, fix any lights or outlets that do not work, and replace old plug points with new safety features.

Cost- $535
Return- $1,505

6) Replacing or shampooing dirty carpets- steam clean carpets, replace worn carpets, and repair any floor creaks.

Cost- $647
Return - $1,739

Other ideas for simple staging:
1) fresh flowers
2) sheer curtains
3) area rugs
4) outdoor furniture on decks and patios (even in winter)
5) bowl of fresh fruit in kitchen or dining room
6) new house numbers
7) new mailbox
8) wreath on front door

*image provided by google images