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Courtesy of Carra Riley; of Carra Rielly, Inc. Real Estate
There are four varibles that sell a house.
1. Price
2. Terms
3. Condition
4. Location
All four of the variables go together to create the "perfect sale." Each aspect must be taken into consideration if you want a property to sell.
1. Price fixes everything! Don't let anyone tell you different. When the buyer perceives there is a value because of the price, they will buy the home.
The other three varibles always can effect the price.
There are circumstances where a buyer has lost the ability to qualify for a traditional loan because of a foreclosure or bankruptcy and the buyer needs owner financing. With Owner carry Terms that particular buyer may be willing to pay more because they have ownership with possibly a small down payment.
Conversely, if the Condition is bad the price will have to be reduced to reflect a value in the home where a buyer will have to come in and do repairs or cosmetic updates.
Location is the toughest variable in the sale to compensate for. Most people have heard about in Real Estate the terms Location, Location, Location. If the location is bad.. ONLY price will sell the property possibly combined with terms so exciting that a buyer will not be able to pass up the deal.
2. Terms. If the Terms are attractive, sometimes a seller can get more money for the home. For example: a home with a value of $325,000 listed with owner carry terms of $25,000 down and no bank qualifing might be able to sell at $350,000 because of the terms.
Under any owner carry situation, it is important the seller speak with their accountant and attorney before accepting any contract and agreement to finance. The seller should be completely aware of the liability and consequences in owner financing. This is just an example how price can increase with the right terms.
3. Condition is a key factor in selling a home. When the property is in top condition, looking like a show home the seller may get top market value for the property. In times where homes are selling at a slow pace, in order to procur a sale, the home should be the BEST property at the Lowest price to get to the closing table.
Taking a seller on a preview tour of the homes in the area similar to their property can save months of discouragement with a home not selling. When a seller can see the competition and accepts the fact their home needs to be the Best house at the lowest price to sell, the home will sell and the seller will see what they are up against in comparison.
Carpet or paint allowance does NOT work in selling a home. If the home needs carpet, put it in. If the home needs painting, get it painted. Many times this can cost a seller $5,000 to $8,000 to do those upgrades. Investing, yes, investing is the correct term, for getting the house sold. The money invested will come back in the form or a quick sale at full market value.
A picture is worth a thousand words so think about how the property looks and even take some pictures to see what a buyer is looking at. Sellers should look at the pictures like they were a buyer and ask, "would I buy this house in this condition for this price?" Are the kitchen counters cluttered? Are the closets a mess? What does the front door look like and the yard when people drive up to the house?
A seller has 8 seconds for a buyer looking at a home to decide if they really like the house and if it will go on the A list. The buyer starts the decision making process when driving up to the home while looking at the surrounding properties and the entrance to the home.
There are many agents are trained in "staging" a home and there are "staging services" which help a seller to understand what needs to be done to create a "marketable product." Listen to these people if you want to get the house sold.
The seller needs to separate from the house and see it as an investment or product that needs to be sold. The seller needs to take all the emotions out of the happy memories in the home if they are serious about selling.
4. Location is the only variable which cannot be changed. A bad location, is a bad location so only price and terms are going to help this situation.
It does not matter that the same model home across the street sold for thousands more, because it was ACROSS THE STREET and did not back to the highway. A seller needs to get a reality check on location and think about when they purchased. If the seller got a good deal when they bought because it had a bad location then they have to give the new buyer the same good deal to sell.
Sellers should take all the emotion out of the business of selling a home and treat the transaction as an investment decision.
If the goal is to get the home sold then listen to the professionals and let them do their job.
As Donald Trump would say, "It's only business."
Provided courtesy of CNN/Money 9/28/2009
The month Jennifer Galdes moved into her condo in the Albany Park section of Chicago, the local paper suggested that the area was up and coming. Six years later, she's still waiting for a Whole Foods.
Galdes, a self-employed publicist, longs to trade up to a similar-size (2,000-square-foot) apartment in a tonier neighborhood. With area condo prices down 16% since their peak, according to S&P/Case-Shiller, she sees her chance.
The catch: She'll have to unload her current place first.
So is now really the right time to make this move, she wonders? Wheaton, Ill., financial planner Kristopher Johnson says yes.
Galdes, 43, may have to sell her condo -- bought in 2003 for $287,000 -- for less than she'd hoped. But the discount on a better place will more than offset the reduction on hers. And she'll net $86,000 after closing even if she breaks even.
Still, she's got to be strategic in selling and buying.
The solution
1. Nail down a value. Galdes should talk to agents to get an idea of what her place might sell for. If that price is acceptable to her, she should list it ASAP, as she may need six months to sell, says local realtor David Hanna. (And she should sell before buying, Johnson adds.)
2. Set a budget. Because Galdes is debt-averse, Johnson wants her to keep her mortgage the same ($175,000). He says she can use up to $100,000 from nonretirement savings toward a down payment. If she nets $86,000 on her condo, she can afford to spend about $360,000.
3. Shop like a shark. Area condos are selling 5% to 10% below list price, says Hanna. So Galdes can shop that much above her budget.
Spending $300 to $500 to offer buyers a warranty with your home is a sound investment that's likely to pay off big. Among the major concerns buyers have about resale homes is whether their systems--heating/cooling, electrical, appliances--are in good working order. Offering a home warranty assures buyers they'll be protected from large cash outlays should a malfunction occur after they take ownership.
The payoff? You're likely to receive more purchase offers. The more buyers there are competing for your home, the higher your final contract price will be.
A year after the financial collapse of 2008, the housing market is very different than it was before the foreclosure crisis.
Here are seven bits of wisdom from economists and financial planners for anyone contemplating a home purchase today:
(Source: REALTOR® Magazine and The New York Times, Ron Lieber)
1. Paint your house! This may be an obvious one, so I have to get it out of the way first. Even so, not enough people do it. Most houses need it anyway. Go crazy, do what you have always wanted. Many tones of the same hue can really add dimension to the house. And remember, decorative moldings on older houses give license to use more than one color. Good prep work, like sanding off worn and chipping areas and priming, can make an exterior paint job last a lot longer and look better.
2. Change out-dated light fixtures -- or add lights if you don't have some already. Light up your doorways and walkways. Better to have more lights at lower wattages than one, very bright one.
3. Add landscaping. Consult your local nursery for plants and shrubs that work best in your area. If you're an urban dweller, don't let cement stop you -- add potted planters. The right landscaping around a property will make all the difference in the world.
4. Replace a worn-out garage door with a new, decorative model. This will have a big impact especially if you have a front-facing garage. Manufacturers offer many designs and decorative accessories so it’s easy to find a door that will complement the architecture of your home.
5. Illuminate your landscape. This will completely change the look of your property at night. Angle low lights to point up at trees and bushes and point down along a pathway for safety. Keep it simple. Use solar lights that charge during the day and you wont have to run wires.
6. Resurface your driveway. Instead of a tarred or cement driveway, consider installing one with a woven stone and grass pattern. This can do wonders for curb appeal.
7. Add details such as shutters, decorative moldings and fun elements like weathervanes to the outside of your house. Make bland windows come alive and define the architecture of your house with mullions, moldings, decorative eaves, fixed shutters or iron scrollwork.
8. Add a stone walkway or path going to the house instead of grass or a wide berth of cement.
9. Replace a chain-link fence with a wood one. Be unpredictable. Instead of a picket fence - put in one that has slanted multiple-height wood slats - like the kind found commonly in Carmel, Calif.
10. Plant a tree. Nothing will appreciate more in value than what this tree will look like 10 years from now.
As professionals who specialize in real estate, we complete the home-shopping puzzle. We can help open up the possibilities for your next home with a variety of services:
Call us now or send an e-mail to take advantage of our years of experience helping people find the home they want and can afford. We'd love to help you, too!
1. Paint your house! This may be an obvious one, so I have to get it out of the way first. Even so, not enough people do it. Most houses need it anyway. Go crazy, do what you have always wanted. Many tones of the same hue can really add dimension to the house. And remember, decorative moldings on older houses give license to use more than one color. Good prep work, like sanding off worn and chipping areas and priming, can make an exterior paint job last a lot longer and look better.
2. Change out-dated light fixtures -- or add lights if you don't have some already. Light up your doorways and walkways. Better to have more lights at lower wattages than one, very bright one.
3. Add landscaping. Consult your local nursery for plants and shrubs that work best in your area. If you're an urban dweller, don't let cement stop you -- add potted planters. The right landscaping around a property will make all the difference in the world.
4. Replace a worn-out garage door with a new, decorative model. This will have a big impact especially if you have a front-facing garage. Manufacturers offer many designs and decorative accessories so it's easy to find a door that will complement the architecture of your home.
5. Illuminate your landscape. This will completely change the look of your property at night. Angle low lights to point up at trees and bushes and point down along a pathway for safety. Keep it simple. Use solar lights that charge during the day and you won’t have to run wires.
6. Resurface your driveway. Instead of a tarred or cement driveway, consider installing one with a woven stone and grass pattern. This can do wonders for curb appeal.
7. Add details such as shutters, decorative moldings and fun elements like weathervanes to the outside of your house. Make bland windows come alive and define the architecture of your house with mullions, moldings, decorative eaves, fixed shutters or iron scrollwork.
8. Add a stone walkway or path going to the house instead of grass or a wide berth of cement.
9. Replace a chain-link fence with a wood one. Be unpredictable. Instead of a picket fence - put in one that has slanted multiple-height wood slats - like the kind found commonly in Carmel, Calif.
10. Plant a tree. Nothing will appreciate more in value than what this tree will look like 10 years from now.
Sydney Alexander has made good money in the past 10 years buying ugly dumps around Wilmington then turning up their charm for a profit.
The kitchen and the bathrooms are the first to go, but Alexander also gets maximum mileage out of a list of exterior improvements that are so easy she wonders why others don't do them. Powerwashing, putting up a picket fence and painting the front door are the kind of small steps that make the difference between someone slowing down or driving on.
The mother of a Marine, she also puts up an American flag on her homes, which is patriotic and adds to the appeal, she said.
"People don't do the simplest things," she said. "The front yard is very important. If someone's driving by at 45 mph, something has to catch their eye."
It's professional advice that less frequent sellers might do well to heed as the market comes off the boil. While the median price has continued to grow, existing homes sales were down nearly 27 percent last month compared to July 2005, the sixth month in a row of declining volume from last year, according to the Wilmington Regional Association of Realtors.
"Twelve months ago people were buying everything," said Matt Field, a Realtor with Cape Fear Sotheby's International Realty. "Now it's back to selling real estate. It's competitive to find buyers out there."
In slower conditions, "curb appeal" becomes important even before the buyer gets to the real curb, Field said. Many potential buyers form their first impression online so sellers need to be sure their home looks its best for the Multiple Listing Service.
"You've got half a second to get it right when people are pouring through the MLS and Realtor.com," said Field, who uses a professional photographer for the job.
To some, taking care of the house is as obvious as can be, but experts say they are amazed to drive around and see homes on the market with faux pas like dead bushes, weedy yards and uprooted mailboxes.
The financial benefits of looking good became clear to gardening designer Sarah Anderson several years ago when she was selling her own home, one of four identical models for sale at the same time in NorthChase. Hers was first to go, the buyers telling her they liked her landscaping, she said.
The sky is the limit with landscaping budgets. But rookies can do a lot just by sharpening things up, removing clutter, weeding, edging and pruning, she said. As a general rule, shrubs shouldn't grow over the windows.
"It looks like you're trying to hide something," Anderson said.
And like many gardeners and landscapers, she sings the praises of putting down fresh mulch. It's inexpensive, easy to apply and makes everything look brand new, she said.
"Just by weeding and putting down fresh mulch is like putting on a fresh coat of paint," said Beth Sheppard, owner of The Secret Gardener. She also recommends durable plants like lantana and India Hawthorn, evergreen shrubs that will last if the home doesn't sell quickly.
You don't have to go out and buy tons of different types of plants, which can be distracting, Alexander said. She plants several of the same kind to create "flow," she said.
Homeowners can also often add to the appeal by taking away, said Chris Lindley, a landscape designer, who advises cleanliness, orderliness and throwing away things like excess plants. Cleaning the windows and screens are often ignored basics - that also makes a big difference, she said.
Much of a homeowner's enjoyment from a year comes from looking at it from inside the house, she said, a perspective she recommends taking to see what stands out. And people should pay special attention to entrances, areas of scrutiny when people first arrive.
"Pay a lot of attention to where you come and go," said Lindley, who is writing a book called Making An Entrance. "It should be a welcome, clean space that is very inviting."
Flowers help. But too many little pots by the entrances look cluttered and confusing, Anderson said. One or two large ones to the side of the front door bring color and warmth to an entrance, she said. And while azaleas might be Wilmington's bloom, she doesn't recommend planting one near the door.
"They go through an ugly spell," she said.
Alexander recommends painting the door because that is also a focal point.
It can pay when buyers come looking, said Deb Quaranta, president of the Wilmington Regional Association of Realtors.
"If everything looks neat and trim, they walk into the house with a very good feeling," she said.
If it's not, "they will start picking it apart," she said. "They will have that very, very critical eye because that house doesn't look well-cared for."