Jul 8, 2014 | Home Seller Tips
For most people, their home is their largest asset, so they want to maximize that asset by getting top dollar when they sell. Here are a few reasons you might not get top dollar when you sell – and how to avoid them!
Selling At The Wrong Time
From early spring to late summer is home-buying season for most people, especially those with children. Putting your house on the market during this period is when you are likely to get top dollar for it. Early fall is also a good time to list your home. Winter – especially December – is the worst time to list. If you list your home outside of prime selling season, you are likely to get less for it than you could have otherwise.
Not Staging Your Home Properly
Many people think of staging as simply rearranging the furniture or changing curtains, but there is so much more to it, and not doing it properly can mean less money for your home. To stage your home properly, you must declutter, putting knick-knacks and family pictures away. You also want to make sure your home is as clean as possible and that you correct any defects such as holes in the wall or cracked window panes. Another thing you should do as part of your staging routine is to paint your walls in neutral colors and update cabinet hardware and light fixtures that are out of date. These little changes can make a big difference.
Not Paying Attention To Curb Appeal
You can spend all the time and money necessary to spruce up the inside of your home, but if your lawn is a patch of dirt and your gutters are falling down, all that work and money can go for naught. To get top dollar for your home, you need to improve your curb appeal. This includes seeding or sodding bare spots in your lawn, trimming trees and shrubbery and fixing up home-related items such as broken concrete and sagging gutters.
Not Getting The Price Right
You might think that to get the highest price out of your house, you have to price it high. However, that’s not necessarily always the case. If you price your house too high, it can make other similar houses that are priced lower look like better deals. You should make sure to pay close attention to what comparable homes are selling for in the area and price your home accordingly.
Not Working With A Real Estate Agent
Many people think they can save a bundle selling their home by not working with a real estate agent. While you do save on the real estate commission, you can lose more than that amount by making mistakes in pricing and marketing. A real estate agent will have access to resources you don’t, such as information on buyers looking in your neighborhood. An agent will market your home, make sure it is priced accordingly and set up showings. It is worth your time and money to call an agent experienced in selling homes in your neighborhood who can give you a market evaluation.
Jul 7, 2014 | Market Outlook
Last week’s economic news was mixed, but economic reports for Non-Farm Payrolls and the National Unemployment rate suggest a strengthening labor sector. Pending Home Sales surpassed expectations in May and conversely, construction spending was lower than expected. Here are the details.
Pending Home Sales Reach Highest Level in Eight Months
The National Association of REALTORS® reported that pending home sales in May rose by 6.10 percent over April’s reading. May’s reading was 5.20 percent lower than for May 2013. The index reading for May reached 103.9 as compared to April’s index reading of 97.9. Results for all regions were positive for May:
– Northeast: 8.80%
– West 7.60%
– Midwest 6.30%
– South 4.40%
An index reading of 100 for pending home sales is equal to average contract activity in 2001; pending home sales are a gauge of upcoming closings and mortgage activity.
CoreLogic Home Price Index Reflects Slower Price Gains
National home prices rose by 1.40 percent in May and 10 states posted new month-to-month highs, while year-over-year reading slipped from 10.00 percent in April to 8.80 percent in May. Home prices remain about 13.50 percent lower than their 2006 peak.
The overall rate of construction spending slowed in May to an increase of 0.10 percent from April’s reading of 0.80 percent and against expectations of 0.70 percent. Residential construction spending dropped by 1.50 percent in May.
Freddie Mac’s weekly survey of average mortgage rates brought good news as the rate for a 30-year fixed rate mortgage dropped by two basis points to 4.12 percent. The average rate for a 15-year fixed rate mortgage was unchanged at 3.22 percent, as was the average rate for a 5/1 adjustable rate mortgage at 2.98 percent. Discount points were unchanged at 0.50 percent for a 30-year fixed rate mortgage and 15-year fixed rate mortgages. Discount rates rose from 0.30 to 0.40 percent for 5/1 adjustable rate mortgages.
Jobs Up, Unemployment Rate Lower
ADP payrolls, which measures private-sector job growth, reported 281,000 new jobs in June as compared to a reading of 179,000 new private-sector jobs in May. The Bureau of Labor Statistics’ Non-Farm Payrolls report for June surpassed expectations of 215,000 jobs added with an increase of 288,000 jobs against May’s reading of 224,000 jobs added.
The national unemployment rate fell to 6.10 percent against predictions of 6.30 percent and May’s reading of 6.30 percent.
No news was released on Friday, which was a national holiday.
What’s Ahead
This week’s scheduled economic is lean with no events set for Monday. Job Openings, the minutes from the most recent FOMC meeting, along with regularly scheduled weekly reports on mortgage rates and new jobless claims round out the week’s economic news.
Jul 3, 2014 | Home Seller Tips
It’s a buyer’s market, making home selling a challenge that can range from relatively simple to downright frustrating. Boosting ones’ chances of selling their home can be done in a number of ways. One simple way is to utilize the art of Feng Shui – an ancient Chinese practice, used to manipulate the flow of energy in your home.
Feng Shui can be as inexpensive or as costly as you would like. Using what is already on hand is one way to keep it free, but sometimes a simple coating of paint on the front door or a few decorative pieces can make a big difference in the room.
The Entry Way
First impressions are everything, so one of the most important rooms in the home is the one that potential buyers see first. If the entryway is followed by a hallway, making the hallway look as wide as possible is important, as open, spacious rooms have better energy flows. Using a long runner rug is one way to achieve this look, as well as brighter paint colors on the walls.
The Main Living Area
The living area will be one of the main draws to potential buyers. They should be able to envision themselves spending time there, reading a good book or entertaining guests. Upon entering the room, buyers should not be looking at the backside of furniture. The furniture should be outward facing, in an inviting way. A simple table in the middle of the furniture arrangement keeps the flow going, while also allowing for utility and style. A few simple art pieces on the walls or on shelves are a nice addition, as long as the space does not look cluttered or ill-kept.
The Bedrooms
Electronics have a negative effect on energy flows, so keeping electronics out of the bedroom during the staging process is important. The bed should be in full view of the door, but the headboard should not be against the wall that is directly in front of the door. Allow as much natural light into the room as possible.
The Bathroom
In Feng Shui, drains are seen as energetically negative, so toilet seats and shower curtains or doors should remain closed. Again, natural light is important, as well as uncluttered counters. Mirrors should be easily accessible and have a good source of light, preferably natural.
The Kitchen
Many counters and tables are magnets for junk – keeping these spaces clear and free of clutter is essential to a nice energy flow, as well as successful staging. Fresh flowers add a nice touch to the room, and make it seem more open. Yellow is considered good for digestion, so painting the room a nice shade of yellow, or adding touches of yellow here and there can be beneficial.
Home staging is a vital, but sometimes overlooked aspect of house selling. Feng Shui can be a great way to interest more buyers, and sell a home quicker. Energy flow is the basis of Feng Shui, and both natural lighting and arrangement of furniture make a difference in the energy levels of a home. For more information about buying or selling a home, be sure to contact your real estate agent.
Jul 2, 2014 | Home Buyer Tips
Once you have found that perfect home with the right price and every little feature you were hoping for, it’s important to keep in mind that the home has been presented in a way that accentuates its highlights and shadows any flaws. For this reason, it is crucial that you get a home inspection before completing a purchase.
Many sellers also have inspectors investigate the home in order to determine its sale value. As such, they should be aware that a prospective buyer will want to request an independent inspection to verify the findings.
Reasons For Home Inspections
If you are the one purchasing the home, getting an inspection is likely to be the most important investigation you need to perform to ensure you are getting the best value. It can also help to know what reasons each party has for requiring a home inspection.
Buyers, for example, feel peace of mind knowing the home in question is safe. They also gain the ability to negotiate in the event a problem arises from inspection, or they can request repairs first. They can also opt out if the problems that arise are too overwhelming to deal with prior to or after the purchase. Finally, buyers can learn about the kind of maintenance and upkeep will be required for the home in the long run.
Sellers, on the other hand, want to make the transaction as smooth a process as possible to prevent issues that could slow down the sale. They can also learn about any problems they need to repair before putting the house on the market, and they can determine the sale price for the transaction. Lastly, this allows the seller to prove their transparency by having an inspection report available, even though he or she should expect that the buyer should be requesting an independent home inspection regardless.
It should be evident, having an inspection conducted is vital for buyers and sellers alike; though the price might seem costly at first, it is merely a small fee that is well worth the effort to solidify a home purchase.
Finding A Home Inspector
The first thing to keep in mind is that most states lack a licensing process for those who inspect homes. If your state does not have such criteria, finding an inspector in good standing with a nationally recognized organization can help as well.
It is very important not to take a seller’s inspection report at face value, no matter what kind of reputation they may have as a person. You might not even want to accept an inspector that someone else hires since they may have a vested interest that can influence the report.
Keep in mind that a general inspector is not typically licensed to check for specific issues like gas or pests. As such, you will need to either seek someone who is licensed for a full inspection or specificaly request inspection for pests, especially for those in high risk areas. For more information and for additional guidance on the process of buying a house or a condo, contact your real estate agent.
Jul 1, 2014 | Around The Home
Value is defined as the importance, worth or usefulness of something; to estimate the monetary worth of something. When the subject is a home, and what adds value to it, then breaking it down into its most common denominator is necessary.
A family looking for a home decides that it has enough space, that there is room to expand perhaps, and that the home would be handy for entertaining guests. Adding a pool to the mix greatly improves the form and functionality of a home. Below, we’ll explain why there are few home renovations or additions that add more value than a swimming pool.
Pay Attention To The Area
Both HGTV and Better Homes and Gardens agree that homeowners make an error in adding a pool when the area or region is not supportive of pools. Homeowners living in hot humid climates and with pools all around them will benefit from the addition of a pool – but would you install a swimming pool in Alaska? In warmer climates not only will a pool be cool and fun on a hot summer day, but it will be worth something to the next buyer.
Those living in areas not so warm and muggy would only benefit from the addition of a pool if the neighbors had one – a phenomenon known as the ‘social proof’ effect. Regardless, the National Association of Realtors, or NAR, reports that pools add 7.7 percent to the average property value. The figure jumps to 11 percent for hot humid areas, so if you’re in a humid area, installing a pool might be a worthwhile expenditure.
Outdoor Renovations Are A Hot Trend
The outdoors has made a comeback whose scope is unbelievable. The popularity of outdoor rooms, cascading decks, patios with pergolas and landscaped walks bears this out. Homeowners are adding trendy outdoor rooms in addition to lush landscape, hardscape and water innovations for many reasons:
– Enjoying nature reduces stress
– Families are spending more time together
– Networking is more fun over a burger than over a phone
– Many outdoor rooms are sustainable
Few will argue that these points are important. A high-quality pool can serve as the focal point for a yard or greenscape. Many homeowners build pools to highlight the architecture, for example, with stones and waterfalls to complement the landscape. The object is to make the whole package useful and worthy to the next buyer.
In Short: A Pool Will Lead To An Increase In Value
Factors vary in calculating the pool’s effect on property values. The size, a diving pool vs. a play pool, the configuration, (i.e. square, oval, kidney-shaped, etc.) and the extent of the landscaping and decking are such factors. Appraisers reflect that a pool will add between 10 and 30 percent to the home’s resale value.
Folks love a pool for swimming any time they wish, in the privacy of their home. For some, that alone is the only impetus they need to add a pool. Other buyers appreciate a pool because of the enjoyment it brings their children. Thus, value and applicability are much the same.
A qualified real estate agent can help you determine how much value a new pool will add to your home. Contact your agent before making this investment to ensure it will prove worthy.
