Feb 28, 2023 | Real Estate
Selling your home is one of the most stressful things you’ll ever go through and one of the most important decisions you’ll ever make. However, there’s a lot more to selling your home than just sticking a sign out in the front yard. Most likely, your home will need a little work before it is perfect.
Therefore, you’ll have to decide whether you need to take care of home improvement issues yourself or, to sell with the expectation that the buyer will be the one to do so. We put together a few pros and cons to doing it each way to make your decision a little easier.
Do The Improvements Yourself
Choosing to complete needed improvements yourself means that you will likely get a higher sales price for your home. In addition, with less work to do, it opens up your home to more buyers than one that is a fixer-upper does. Selling will usually be faster and closing more likely to go smoothly.
On the other hand, chances are good that you will not get the full value you put into those improvements at the closing table. In addition, when you are moving, money may be tight making this an even more difficult proposition.
Sell It As A Fixer Upper
The main benefit of selling your home as a fixer-upper is that you will not have to put that money in up front. If you are in a difficult financial situation or selling your home at a loss, this may be necessary. Additionally, you aren’t the one that has to deal with the contractors and calling around to get quotes on all of the work.
One of the downfalls to selling your home as a fixer-upper is that you’ll likely get a lower price and some buyers won’t even come out and check out your house if they think there is too much work that needs to be done. Plus, depending on the type of work that needs to be done, you may wind up in a pickle during the inspection process. Certain problems can prevent lenders from closing on the deal. You often find the closing process is slower and fraught with more concerns.
The reality is, it really depends on whether doing the improvement yourself or selling it as a fixer-upper is the right choice. Discuss your concerns and speak honestly about your financial picture with your trusted real estate professional and perhaps you will have a better idea of which of these options is the smart choice for your situation.
Nov 25, 2020 | Real Estate Tips
If you are thinking about selling your home, then you want to make sure that you get as much money for your home as possible. Therefore, there is a solid chance that you are thinking about all of the places that you watched your kids grow up, the numerous parties that you hosted, and the countless holidays that you celebrated. To you, those memories are priceless.
Therefore, you should put these factors aside when you are selling your home. You aren’t selling your memories. Instead, you are trying to sell a home. If you want your home to sell quickly, there are a few tips that you should follow.
Do Not Price Your Home High Immediately
You probably think that your house is wonderful. After all, that is why you decided to move in all those years ago. The problem is that if you price your home too high at the beginning, then it might sit on the market for a long time. The longer a home sits on the market, the harder it is going to be to sell. Therefore, do not miss that window of opportunity. Instead, try to price your home to sell. Generate plenty of interest in your home so that you receive multiple offers. That is how you can get the most money possible for your home while still selling it quickly.
Don’t Assume Recent Renovations Are Going To Provide You With A Higher Price
If you have watched a lot of TV shows, then you might assume that renovations are going to drive up the listing price. This is not necessarily the case. You need to assess the market value of the renovations that you completed in the context of your home. That way, you can make sure that you recoup as much money as possible.
Price Your Home To Sell
These are just a few of the most important tips that you need to keep in mind if you want to make sure that you price your home to sell. If you want your home to sell quickly, then you need to ensure that you get plenty of interest in it. Pricing your home to sell will help to make this happen.
May 15, 2020 | Real Estate
A “buyer’s market” happens when people looking to buy a home have a stronger bargaining position than the sellers have. In a classic economic sense, a buyer’s market occurs when the supply of homes available for sale exceeds the demand for them. However, other things in real estate create a buyer’s market.
Causes Of A Buyer’s Market
Besides having too many homes for sale and too few buyers, a buyer’s market in real estate may come from widespread credit market problems. There may be plenty of buyers interested in homes that are for sale, yet they may not be able to get a loan to buy the home. This may be caused not only by the credit history and qualifications of the buyers but also by the lending institutions’ available funding to make loans.
Another thing that can cause a buyer’s market for homes to suddenly emerge is a major relocation or closing of a large employer in an area. If the jobs disappear for many people, then they may have to move to find work.
Ways to determine if a specific area is a buyer’s market include tracking the median number of days that homes stay for sale on the market listings. Another strong indicator is the number of homes that lower their listing price.
Selling A Home In A Buyer’s Market
In a buyer’s market, trying to sell a home may be much more challenging. Here are our tips to sell a home in a buyer’s market:
- Price: To be competitive, price the home at a very compelling level that is up to 5% less than the market value of comparable properties.
- Staging: Stage the home to be in a perfect immaculate condition with extremely attractive interior design elements. Remove everything from the home, repaint, and then rent brand-new furniture. Use the services of a professional interior designer to make the home aesthetically stunning.
- Paint: Paint the home inside and out. Use contemporary colors in a trending color scheme that is attractive for the most potential buyers. Avoid brash colors. Color choices should be neutral but not boring.
- Home Inspection: Conduct a professional pre-inspection of the home, fix all the items that need repair, and show the inspection report and the receipts for the work done to any potential buyers.
- Home Warranty: Offer a one-year home warranty included in the sale price, which covers the major appliances and home systems.
- Energy-Efficiency: Install energy-efficient windows, seal around windows and doors to prevent leaks, and upgrade insulation to make the monthly utility bills as low as possible.
- Use a Top Real Estate Agent: Work with an agent that has a track record of selling homes recently, who is a “closer” when it comes to making a sale.
Summary
If possible, try to avoid selling a home in a buyer’s market and wait for a better time. If that is not possible, or the market is permanently damaged and will be a buyer’s market for a long time, then take these steps to give your home advantages when compared to other homes that are for sale.
Jan 9, 2019 | Real Estate
If you’re already a homeowner and you’re getting ready to buy a new home, you know it’s tricky to buy and sell a home at the same time. There are lots of questions about how to handle this scenario. What if your old home doesn’t sell quickly?
Will you have to make two mortgage payments? What if you sell and the new owners want to move in before you close on your new home?
Depending on your situation, here are some strategies available to you.
Get A Bridge Loan
If you find yourself facing more than one mortgage payment – one on your old house and one on your new house – consider taking out a bridge loan to pay the monthly mortgage on the old house. Bridge loans are a solution to a temporary problem. When your old house sells, you pay off your bridge loan and you’re left with just the one mortgage payment.
Move Into A Short-Term Rental
If your old house has sold and the owners want to close before you can close on your new house, you could move into a short-term rental. This could be an apartment with a short-term lease. Or it could be a long-term hotel accommodation. You’d likely have to move your furnishings into storage; again, only for the short-term until your new house is available.
Ask If You Can Lease Back Your Home
You could ask the buyers of your current home to allow you to rent your home until you’re able to move into your new house. This is called a lease-back. It’s not ideal to pay rent on your own house, but it saves you from having to move twice.
This strategy usually only works if you already have a new house deal, so the owners of your old house have a known estimated time-frame when you’ll be moving out.
It’s definitely tricky trying to figure out the arrangements when you’re buying and selling a house at the same time. But one of the strategies mentioned above will likely work out for you.
Your trusted real estate agent is a valuable resource and can help you negotiate with your new buyers. They may even be able to help you find a short-term rental if that’s what you decide to do.
Mar 7, 2018 | Real Estate
Selling your home is one of the most stressful things you’ll ever go through and one of the most important decisions you’ll ever make. However, there’s a lot more to selling your home than just sticking a sign out in the front yard. Most likely, your home will need a little work before it is perfect.
Therefore, you’ll have to decide whether you need to take care of home improvement issues yourself or, to sell with the expectation that the buyer will be the one to do so. We put together a few pros and cons to doing it each way to make your decision a little easier.
Do The Improvements Yourself
Choosing to complete needed improvements yourself means that you will likely get a higher sales price for your home. In addition, with less work to do, it opens up your home to more buyers than one that is a fixer-upper does. Selling will usually be faster and closing more likely to go smoothly.
On the other hand, chances are good that you will not get the full value you put into those improvements at the closing table. In addition, when you are moving, money may be tight making this an even more difficult proposition.
Sell It As A Fixer Upper
The main benefit of selling your home as a fixer-upper is that you will not have to put that money in up front. If you are in a difficult financial situation or selling your home at a loss, this may be necessary. Additionally, you aren’t the one that has to deal with the contractors and calling around to get quotes on all of the work.
One of the downfalls to selling your home as a fixer-upper is that you’ll likely get a lower price and some buyers won’t even come out and check out your house if they think there is too much work that needs to be done. Plus, depending on the type of work that needs to be done, you may wind up in a pickle during the inspection process. Certain problems can prevent lenders from closing on the deal. You often find the closing process is slower and fraught with more concerns.
The reality is, it really depends on whether doing the improvement yourself or selling it as a fixer-upper is the right choice. Discuss your concerns and speak honestly about your financial picture with your trusted real estate professional and perhaps you will have a better idea of which of these options is the smart choice for your situation.
