Why Isn't That House Selling?

We hear this remakr all the time. "Something must be wrong with that house. It's been on the market for months."

In some cases, there are obvious reasons why a property has not sold- the list price started out too high, it needs things like a roof or is dated, or it is a unique property in need of a particular buyer like a home with an in-law set-up.

However, in the majority of cases at this time, houses are sitting on the market because there are fewer buyers looking to purchase a home. When the credit crisis hit and the nation saw banks and lending institutions closing left and right, the requirements for buying a house ie: good credit scores weeded out a vast majority of prospective buyers.

People with credit problems and insufficient cash to close found themselves locked out of the opportunity to get a mortgage. With banks having stricter policies to be approved for a mortgage the buyers that are able to get financing tend to be serious buyers. They are out looking at properties and they want to buy, especially to take advantage of the record low interest rates.

We have rebounded somewhat from the credit crisis. Prospective buyers from 2010 have been working on their credit and depending on how in depth their problems were, they may see resolve soon and will now be able to get financing.

But the lack of buyers is also due to the fact that people are nervous. They are anxious to make big purchases, upgrade for fear of job loss, the stock market, and other variables. We have seen an increase in activity in the Rochester market. This is a great sign not only for real estate but for the national economy. The status of the real estate market is a key indicator to our economy as a whole. If people are not purchasing properties (a very large investment) then they are probably not spending money on other things such as vacations, cars, home improvements.

There are many houses on the market right now. Buyers and sellers tend to get nervous about this. "Why are so many houses for sale?"

The answer is simple- despite a tough economy life goes on. People are downsizing due to age or personal finances, death, relocating, upgrading due to increase in family size. We are also in the "spring" market which tends to be busier because leases for apartments come up in late spring, people want to be settled in their new home for the upcoming school year, and in this part of the country we are unburied from our difficult winters.

Bottom line is that if you are looking to purchase, don't discredit a property simply because it has been for sale for what you deem a long time. Most often there is not a cut and dry explanation as to why a property has not sold. There is a buyer for every house. Maybe that cape-cod you've had your eye on for a few weeks is the one for you!

*image provided by Google images

Expectations When Listing Your Property

The housing market in Rochester has not seen the drastic dips in property values like other places of the country. However, our home values have dropped. If you purchased your home less than 7 or even 10 years ago, it may be very difficult to get much more than you paid for it.

There are a few reasons for this. Rochester values only increased on average 3% per year. The recession has stalled those numbers and given us a stagnent market. Purchasing a property that was dilapidated and in need of some serious overhauling and getting it for way under market value may be one of the few ways to see an increase in what the market will bear at this point. Even then you have to look at the money you put into the property and weigh what allows you to list the house at a certain price. For example, putting a new roof on a home does not necessarily add value but it allows the homeowner to sell their home with less hassle. Buyers do not want to take on a previous homeowners deferred maintenance.

Determining your list price with the help of a real estate agent is the number one way to get your house sold. More and more agents are having to tell homeowners that the list price or sale price they had in mind may not be possible. Buyers determine the value of a property and one of our biggest problems right now is the lack of buyers. Many listings and few buyers mean that if a buyer thinks your house is overpriced or needs too much "work," they will move on to plenty of other potential listings for them to buy.

What to expect when listing?

Have patience.

There are some homeowners who are selling their properties rather quickly (within 2-3 weeks). But that is not the truth for the majority. This does not necessarily reflect the condition of the home but the simple fact that it is taking longer to find a buyer.

Get your home in shape.

Now more than ever homeowners need to step it up with repairs and overall appearance of the property before putting in on the market. Don't wait to get the "feedback" from buyers that the carpet is worn, the rooms need to be painted, or there is too much clutter. In a fickle market with buyer's who do not have a sense of urgency, you may only get one shot to make that first impression.

Look at the comparable sales.

What the current market is showing in terms of home sale prices and days on market will be a reflection on selling your own home. Even though each property is different, the same rules apply. The buyer has the advantage. If you list your house properly from day one, you have a better chance of getting a price closer to what your "bottom line" is and selling in fewer days or months.

Condition and price. Condition and price. The 2 most important things when selling a property.

Spring Prep

Now more than ever it is important to have your property in top-knotch condition when putting it on the market. There are many inexpensive things a homeowner can do to get their property in shape before being viewed by prospective buyers.

• Clean the windows- for crystal clear glass sponge on then squeegee off soapy water. Use horizontal strokes on one side of the pane and vertical strokes on the other to make streaks easier to spot. Buff out small scratches with toothpaste. To remove paint specks or sticky lables, dampen and scrape off with a plastic razor blade

• Renail gutters- If your gutters are sagging, one of the spikes that secure them to the fascia board may have come loose.

• Deep clean the house-

Here are some surprisingly good cleaning agents: 1) Baby wipes- use fragrance free wips to eliminate dust and dirt from antique furniture without marring fine finishes 2) Ketchup- polish dusty or dull spots in a copper sink. Ketchup acts as a mild acid. Sponge clean. 3) Nail-polish remover- Erase everything from paint splotches to ink stains from laminate floors by adding a few drops of an acetone formula to a rage and spot cleaning 4) Oven cleaner- dissolve drain stains on a white enameled cast-iron tub witha coat of oven cleaner. Let sit for an hour or two and then scrub with steel wool.

• Add to your curb appeal

Make buyers want to come inside the house. Changing the color of shutters and the front door can create a whole new look for your property. Add a wreath and welcome mat to polish off the entry. Create more depth on the facade of your house by adding window boxes and shutters.

Liven up your landscaping- Prune and trim shrubbery, remove dead or unsighlty bushes. Add a splash of color to front gardens. Hanging baskets and planters at the entry or on a patio or deck make the home seem more inviting.

These are just some examples of simple ways to make your property stand out. With a large amount of houses on the market, you want buyers to keep your home on their list and potentially come back for a second look- and make an offer!

Calling Irondequoit Home

Rory and Tracey Fitzpatrick are like many Irondequoit couples. Both originally from Irondequoit, they met in high school, married and started a family. However, Rory’s career as a professional hockey player allowed them the opportunity to visit and live in many different cities throughout the U.S. and Canada. After having children they bought their first home in Irondequoit. As their family expanded they purchased a bigger home in Irondequoit and seven years later have made many improvements to make the home their own.

Rory played hockey for the Montreal Canadiens, Rochester Amerks, Buffalo Sabres, Vancouver Canuks, St. Louis Blues to name a few. Many people in their position may have considered moving their family from where they have always called home to make life easier. Rory and Tracey both agreed that while many of the places they have visited have nice features, there is nothing like Rochester, especially Irondequoit. They both commented that having family support was always very important to them. Allowing their 4 children to make a life in the same town where they group up was a conscious choice.

“There’s something about Irondequoit that makes it different. Being able to hop on your bike and ride forever on the side walked streets make our town unique,” said Rory.

Rory is enjoying his first year of retirement after a 15 year career playing hockey. Their children are ages 6, 8, 9, and 12. Rory and Tracey are both content to continue building their life in Irondequoit, creating new memories and traditions.

Maximize Selling Features During Winter

Every fall and winter we are questioned whether or not a seller should wait until the spring to list their house. The answer is no. Real estate transactions occur every day, every month of the year. In a climate with season change the perception is that the cold wintry months are a deterrent for buyers. The real estate market is cyclical. But season is not the only factor in this trend. The economy and interest rates are other contributing factors as to why a market may be slow at times. We always emphasize that while December can have less action than most months due to the holidays, prolonging the sale of you property or taking it off the market may, in fact be detrimental to your ability to sell your home.

Many sellers choose to list in the spring or take their home “off the market” after Thanksgiving. This reduces the inventory greatly. Take advantage of less competition by choosing to keep your home multiple listed during the holiday season and winter months you are increasing your chances of exposure because the inventory has shrunk. We have sold houses in snow storms, days before and after Christmas because if the house is for sale, there is always a potential buyer out their waiting to find the right home that suits there needs and situation. During the holidays we see many out of towners visiting family and friend who are looking to move back to the area. They are ready to buy and your home may be what they are looking for.
The following are some tips for staging your home during the holiday season and winter months to help maximize its value and showing potential. All at little to no cost!

Lighting-
Because most buyers will be viewing a property after sunset it is important to showcase the inside and the outside with proper lighting. Consider using a flood light to show off the architectural features of the home and enhance curb appeal. Add lamps to rooms and use higher wattage bulbs when necessary to brighten up interior rooms.

Seasonal Décor-
When selling during the holidays it is important to consider leaving some of your decorations tucked away. Less is always more when staging a home. You want to give a warm seasonal feel without inundating the buyer so that they cannot focus on the architectural features of the home. It is also important to have clear traffic patterns in the rooms and show off the space in the best possible way. Be choosey with your holiday decorations. You may have to stow away some of your bigger decorations while your house is on the market.

Show off exterior selling points-
Despite snow fall and cold temperatures highlight your deck, patio or outdoor sitting area. Remove the snow, set up outdoor tables and chairs, keep the grill out just like you would in warmer months. Help buyers envision themselves making your backyard part of their lifestyle. If you have a deck, make it an extension of your home. Staging the space with a table, chairs, and outdoor pillows that play off interior accents make the indoor space seem larger and more inviting.

Show off your spring and summer landscaping-
Display photos of your gardens and landscaping during warm months. A digital photo frame is an excellent tool for showing buyers what the exterior of the home and the yard are like when everything is in bloom. If the property has a garden(s), make a list of the perennials that are planted and where they are located. Landscaping can be very expensive and time consuming. Many potential buyers will be pleased to learned the seller has invested time and money on the yard.

Clear walkways and driveway-
Don’t’ forget to clear your front and rear walks; a snow-filled driveway is unappealing right from the start. A seller wants to make it easy and comfortable for a buyer to enter their home. Trudging up to an entrance in deep snow can be a turn off. Keep plenty of rugs at the entries so buyers can clean off and remove their shoes. Also, by clearing off driveway, decks, and patio you are giving a buyer the true sense of their size. A double wide driveway is a great selling feature but only if they know it is there.

D-D-Deflation

There are so many reports and articles about the state of our economy and the future of our economy. It is hard to keep up with the massive amounts of opinions regarding where we stand right now and what it means for the future.

As with all topics that run rampant through the media there are buzz words, new terminology, and down right scary statistics.

But what are the facts?

This information comes from DeflationAlert.com

What is deflation?

It is a general decline in prices, income, and credit. Right now our country is experiencing all three. Times have drastically changed and the shift is toward a time of less credit use- at least in the private sector.

Even though incomes did not increase, the amount of spending did and in order for this to happen consumers relied on credit. For twenty years this was how our economy thrived and not surprisingly, the bubble burst.

This harsh reality has changed the temperament of our country. We went from spend, spend, spend to penny pinching and frugal. I have never seen so many people returning cans and bottles at the grocery store or cutting out coupons to use when going out to eat for dinner. People are paying off debt such as vehicles, credit cards, etc. either by choice or because they must (foreclosure).

Allocating funds to pay off debt instead of pouring money into the marketplace is killing our economy. Therefore, the government is borrowing at a record pace, pouring funds into the economy as fast as it can.

"The action-the destruction of capital through the repayment of debt- is what is causing deflation."

"Over the past 2 years our debt outstanding as a nation has declined! Deflation is already occurring, and more is ahead. As banks continue to fail, and as lenders confront the reality of the loans on their books, more losses will be taken."

What Now?

The stimulus is over. We will now have to see how the real estate market weathers the economy. There is now less incentive for first time buyers to purchase a property. Without the $8000. tax credit many potential buyers may not want to risk purchasing a property in an unsteady economy. Many people are still unsure about their employment.

Sellers may be less inclined to make a move up without the $6500. tax credit. The interest rates continue to be low, but buying a pricier home may be have to wait until we see the economy stabilize more.

That being said real estate transactions will always take place. People have to buy and sell for many different reasons- relocation, death, downsizing for budgeting reasons, etc. There are many parts of Monroe County that continue to have very affordable housing in wonderful neighborhoods with great schools. As stated in the past Rochester has been noticed across the country as a very desirable place to live. Many people complain about the taxes in NYS but our home pricing and quality is unmatched compared to most parts of the country.

Currently there is high inventory of properties on the market. More for buyers to choose from but this can also create a greater number of days on market. Consult with a Realtor who specializes in your area because right now pricing your home properly from the beginning is key in getting a quicker sale for the most money.

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