Tag Archive for: Home Selling

Things That Can Affect The Value Of Your Home

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Homeownership isn’t for everyone! I know that can sound downright strange coming from a real estate firm. Yes, we are in the business of selling homes. We’re in the business of connecting buyers and sellers. We’re a company that’s predicated upon building and nurturing relationships with our clients, our agents, lenders, appraisers, inspectors and other professionals. Yet, while owning a home is typically seen as a sound investment, there are situations when it may not be financially advantageous to buy one.

For example, you might not want to own a home if there’s uncertainty about your future or your job security, as committing to a mortgage could prove burdensome, if income becomes unstable. Another factor to consider is if you’re carrying high levels of debt. If you’re in a financial deficit, it may be more feasible to rent and focus on paying off obligations before taking on the additional financial responsibility of a home. Paying down/off higher-interest debts can raise your credit score as well, which will help you achieve a better mortgage rate for your next home purchase. Additionally, if you plan to relocate frequently due to work or personal reasons, the costs associated with buying, selling and moving can make renting a more favorable option as well. Ultimately, the decision to buy a home should be carefully weighed against all personal satisfaction with your current residence, financial position and job situation.

On the other hand, if you are a property owner, welcome to the wonderful world of ownership (and maybe lower taxable income too). With that being said, did you know, there are ways that you can increase or likewise decrease the value of your home? And this can happen even over short timeframes.

Increase Your Home’s Value

Increasing the value of your home in less than one year can be achieved through different ways. One effective method is to focus on curb appeal by enhancing the aesthetics of the exterior. This can be done by maintaining a well-manicured lawn, planting flowers and shrubs, and adding a fresh coat of paint to the front door (choose that color wisely!). Upgrades to your home’s exterior can be relatively affordable. This is the one area where sellers can give themselves a boost when debuting their home for sale. Another approach is to update key areas in the house such as the kitchen or bathroom, as these rooms often have a significant impact on the overall value of the home. Maybe it’s time that your kitchen finally got a face-lift. The condition of the kitchen and the bathrooms are often the hinge on what buyers tend to gravitate towards or away from when engaged in their search. The kitchen, like the main living area, is a frequently visited room, and as such, potential buyers are looking for modern beauty and convenience here, when possible. Additionally, improving energy efficiency by installing energy-saving appliances/lighting, improving insulation and opting for eco-friendly materials can boost the value of your home too. Smart home technology has been one of the safest investments in recent years. The ability to adjust the temperature, security or lighting in your home from a distance is a real game-changer. There’s a certain peace-of-mind in this sector of home improvement and unfortunately for some sellers, this is a must-have for a handful of buyers.

If you have other questions about valuation or selling, in general, click here.

Negatively Impacting Your Home’s Value

On the flip side, there are several actions that can quickly diminish the value of your home. For one, neglecting maintenance and repairs is one of the easiest ways to decrease value. This includes ignoring necessary fixes like leaking roofs, faulty plumbing or electrical issues. If homeowners avoid addressing a major issue, it could balloon into something intolerable. Water is a good example of this. A water dilemma, left to its own devices, could become a big financial headache for owners of a property. Another pitfall you might want to evade is engaging in excessive customization that may not appeal to the general public, such as unconventional color choices or highly specific themed rooms. Lime green or Pepto-Bismol pink, anyone? Or think solarium or home theater. While you might love those colors or while these might be intriguing rooms, a real hub for excitement in a home, they’re not for everyone. In fact, there’s a segment of homebuyers who would never have a use for either color or room. Lastly, failing to maintain an overall clean and tidy household, including proper hygiene and cleanliness, can also reduce the overall value of your home or at least its perceived value. Many of the buyers we work with are thankful for their ability to rely on their five senses during their home search. Sight and smell are as important as any and they can single-handedly make buyers do an about-face upon entering a residence.

There are also some pretty strange elements which can impact your home’s worth. Some of them might catch you off guard.

 

As you examine your property, probing the aspects you can – remember, you’re probably not a licensed home inspector. Take note of what requires your attention and make a plan based upon that, calling upon professionals when needed. Pinpoint areas where updating will raise the value of your home. Maintenance, repairs and upgrades will positively affect the valuation of your property as well as your confidence as a homeowner.

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4 Tips For Stress-Free Moving

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Packing your whole life up into a large truck might be one of the most exhilarating experiences you can have in your lifetime. I mean after you’ve put all that effort into getting your home ready to market, dealt with your fair share of stress while your REALTOR® worked their magic, isn’t the “delight of moving” the next logical step towards sanity? Gearing up for the task of shipping some of your priceless belongings with a group of total strangers is completely normal.

All kidding aside, moving from one residence to another is daunting and has been known to rattle some sellers as they seek to begin a new chapter of their lives. It could be the mental energy we commit to those things, such as moving, which tends to drain us and in some cases, leave us feeling a little desperate. Quite honestly, this is why it’s critical whenever we’re faced with such a task as this, we unplug from our negative past experiences and truly take time to prepare for the move.

You can also find a helpful moving checklist on page eight of our homebuyer’s guide. In this post, we’re covering four ways moving is made easier. Having said that, we in no way want to make light of the experience. I, for one, don’t love the idea of packing up a room into boxes and then unpacking them on the other side, but I’ve always been able to deal with it in a healthy manner. We hope you can too and we feel confident these four tips as well as our checklist will help you navigate your way into your new home with minimal anxiety.

Give Yourself Time

Preparation is important whether you’re buying or selling a home. In fact, we advise many of our clients to give themselves extra time when they’re thinking about a life change. Big decisions can take time, especially getting used to them. Sellers who need to make repairs to their house, should factor in more time than they think to complete those jobs. Heck, even if a professional is making the repairs/updates, you’ll want to pack in additional time. The same can be said for those who are confronted with the challenge of moving.

Moving for some is excruciating, like on the level of public speaking bad. Yet, if you give yourself extra time in anticipation of unforeseen issues arising in the process, you’ll be much better equipped to handle them and stay calm. Our advice is you don’t procrastinate throughout the moving process. Whether you’re moving out of an apartment or a home, whether you’re the buyer or seller, once that switch is activated and your life is headed in another direction, act.

Gather Intel

For some, changing scenery is welcomed, for others there’s apprehension. Whatever flavor the move provides, it’s important you eliminate as much of the unknown as possible. Chances are you’ll erase some of that stress, if you gather information on your new town or neighborhood before setting down new roots. What is your new city/neighborhood like? What places would you like to visit after your move? What are some of the activities you’d like to do once you get settled? The more comfortable you are with your new surroundings ahead of time, the easier this transition will be. Those who put the effort in from day one, are better suited to handle the curveballs which may come their way. Learn all aspects of your particular process – mentally prep yourself.

Moving apps, like Sortly and Updater, have helped others organize their thoughts and well as their possessions. They could potentially aid you as well.

Hire A Reputable Mover

Not in all situations, but many moving endeavors do require the assistance of a moving company. Someone once said: “you never know how much you accumulate until you move” [author unknown]. Boy, isn’t that the truth! If you do need to choose a professional moving company, do your due diligence and research which options are best for you and your circumstances as well as your timetable. Prior to contacting movers on the phone, it’s important to make a list of five or more and read testimonials from other buyers and sellers who faced a similar task of having to hire one. What are the good and bad stories people are sharing? Make sure to do your homework and investigate registries like Angi, NextDoor, Yelp, Google, Facebook and others.

After you whittle your list down, make sure to compile a list of questions you’ll want to ask each of the moving companies. Need help creating your own? This is a great place to start. And there may be other factors you’ll need to consider such as special services required like packing/storage services or budgetary concerns or how you want your valuables transported. For starters, you’ll want to ask each company stuff like if they have a Federal Motor Carrier Safety Administration (FMCSA) registration number and how do they estimate costs for a particular job (binding estimates are usually better) and what fees are added on (hidden fees?) and what type of insurance they offer their customers.

Based upon this research and the responses to your questions, you’ll have a better idea of who you’d hire. Let’s face it, in real estate, banking, heck even cuisine, there are many choices… narrowing it down isn’t necessarily a bad thing. If one’s required, finding a reliable moving company should be at the top of your list. We hope these pointers provided you insight into making the right decision.

Soothe Thyself

Throughout the process of packing your life away and dealing with a real estate transaction, it’s vital to take care of yourself. This might sound puffed-up and maybe also a tad holistic, but stepping away from this process when it’s happening is healthy too. The self-care aspects shouldn’t be forgotten at this time. If you love to read first thing in the morning, then continue to do that even if you need to cut back slightly. If taking a walk in the evening in a park or on a trail is your thing, then keep walking. If working out a few times a week makes you feel better, gives you energy and relaxes your nerves, then by all means, do those burpees. If enjoying a glass of wine on your porch helps pacify your mind, then don’t let moving oust you from outdoor happiness.

If you have an area of your home where you and your family really take in life and the room acts like a sanctuary for you, don’t box that up until the last possible day.

Also, it’s important to keep ties to those you might be leaving behind, such as family, friends and neighbors. Set aside time to get together with neighbors and those in the community you’ve enjoyed getting to know, who you might not see again (depending on the distance of your move). Schedule your next return trip with family and friends, which will give you and them something to look forward to.

 

Moving is a trying time, yes, but there are methods we can take, which will help us deal with the challenges ahead. Stay focused on what matters, sure, but give yourself time and try not to beat yourself up when things go sideways. We’re here to help you throughout this process. Call one of our professionals should you want any assistance along the way.

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Why Your Home Sits On The Market

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Don’t let your home sit, let it stand above the rest of the competition and be noticed. If there’s one thing we counsel our clientele on today, it’s making a distinction between their home and others “on the market, not selling.” What are the unique selling points of their home? What is the state of the market, even as granular as their neighborhood? What are comparable properties selling for now? Putting together a vivid picture of the subject property and how to elevate it above other similar homes could mean the difference between less time on the market and maybe even a multiple offer situation.

But before you get carried away, here are five ways to position your home for a quicker sale:

Pricing

This is the obvious. The elephant in the room. We’d be deceiving ourselves if we didn’t mention this one first, because it’s the most important and for good reason. Remember, the whole process for a buyer begins (or should begin) with an honest assessment of what they can afford and tailoring their search around that benchmark. The buyer consults a mortgage lender, discovers how much they’re pre-approved for, compares that to their financial situation, determines their must-haves when previewing homes and investigates the market. Homebuyers, especially if they’ve been searching for some time, have an eye for present circumstances and how compatible properties have fared.

Sellers, who better understand what buyers are witnessing in terms of pricing, will be better able to estimate and position their property for its initial release. This is why having a REALTOR® generate a competitive market analysis (CMA) specifically tailored to the seller’s home is ideal for understanding how they should be pricing it. Although we might be in a period of correction, the market still favors sellers. Because of this, real estate professionals are advising some homeowners to set their list price toward the higher end of its range of value.

Repairs

When an owner anticipates selling their home, they should review all aspects of their property to conclude what’s in need of repair and what could benefit from an upgrade. Ideally, this should be done months ahead of when they plan to sell. They should consult their REALTOR® in order to judge which repairs/updates would help sell their home and which ones should be evaded. Soon-to-be sellers want to avoid alterations that buyers, for the most part, could care less about – repairs or updates that won’t add value, and in some cases might even have a negative impact.

It’s worth mentioning, some homeowners pursue a “pre-listing” inspection, where a professional home inspector evaluates their home and pinpoint areas they might want to address, making the proper repairs, before listing their home for sale. Though this approach isn’t as common as one might think, it can be extremely beneficial to owners in certain instances.

Curb Appeal

It seems like we overemphasize this point time and time again (because we do!), but we believe it’s that important. Do you want increased engagement and more prospective buyers to see your home? Of course! One of the quickest ways to get more eyeballs on your home, both online in addition to in person showings, is to create an inviting atmosphere that draws buyers in. The exterior facade of your home will either captivate or deter onlookers. It’s that simple. A fresh coat of paint on the front door and front porch, fresh landscaping, cut grass, trimmed shrubbery, new garage door, replacing that weathered mailbox, etc. make a statement and appeal to buyers.

There’s certainly a lot to say about curb appeal as it’s a very effective tool for selling, but homeowners shouldn’t go overboard either. They should refrain from changes, which won’t appeal to a majority of buyers. Sellers might want to consider taking a more simplistic approach to the peripheral of their home in hopes that potential buyers won’t see a yard that requires too much upkeep. As with any upgrade, sellers need to be cautious not to dump money into aspects of the home that have little to no return on investment (ROI).

Buyer Incentives

One way to really make your home stand out is to offer buyers and their agents perks that will truly differentiate your home from the rest. An incentive some deploy is offering would-be buyers a home warranty. In fact, there’s relatively affordable coverage available that will protect the home for the seller while it’s listed in addition to a year from its closing date. Thus, this coverage benefits both the owner and the buyer.

Another incentive to entertain is concessions or a closing credit giving a boost to those looking to purchase the seller’s property. Seller concessions are a portion of the costs the seller has agreed to pay in order to lower the amount the buyer needs to close on the property. This assist or contribution is typically rolled into the buyer’s mortgage. A closing credit can be a great way to attract buyers as well. Usually a percentage of the purchase price or a flat credit is presented to consumers in hopes that it will attract more parties to put forth an offer.

A rare, though effective means of reducing those days on market can also be achieved by incentivizing agents to bring their clients into the seller’s abode through offering a buyer’s agent bonus. Agents make money beyond their portion of their agency’s commission, and thus will be much more eager to bring buyers into that seller’s home.

Marketing

Finally, investing in a real estate professional, who understands the current conditions and can effectively position a seller’s home for maximum exposure, will reduce market time. Experienced agents know the state of the market and know how to best approach it. How will current trends affect market time? Sellers need to rely on their agent to sift through the data to discover what’s selling, what’s not selling and why it isn’t selling.

Sellers would also be wise to team up with a REALTOR® and brand, who are well versed in exposing their home to the largest pool of buyers. Their agent should be aggressive, regardless of the conditions that exist, willing to go the extra mile for their clients. Their agent should have a drive to succeed, despite the challenges which may exist. Their agent should have a plan on how to elevate their client’s listing to get noticed and shown.

 

As a homeowner, there are things you can’t change like location or maybe even costly upgrades to a home, but the above five are within your control. Sitting down with your agent and creating a strategy corresponding to these tips, among others, may ultimately reduce the number of days your home is on the market. There’s a lot on the mind of today’s sellers, but having a meeting with your agent will help ease your mind too!

If you’re thinking about listing your home, even many months from now, it’s never too early to create a plan for when the time comes to sell. Contact one of our professionals today to get started right away.

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In The Mind Of Today’s Seller

Considering selling? What can today’s homeowner be thinking? There are a mix of variables in today’s market, which add an element of mystery to forecasting, similar to a meteorologist’s predictions you might say. But the storm of buyers, at least in our region, remains. They cover the area, a dense fog destined to stick around until there’s a sudden boost in inventory and/or perhaps a series of half-percentage-point rate increases from the Fed. The concerns are real. On the other hand, the hope for a surge in listings to our market might be in the cards, but those are based upon a survey’s findings, they’re only another tool for speculation. Nonetheless, it’s a valid approach to entering the minds of home sellers.

Nowadays, the mind of a seller is certainly a mess, one could argue so too a buyer’s. It’s a seller’s market though, no? While that’s true, there’s an anxiety for many prospective sellers in prepping or listing their home for sale. Some also need to buy after they sell, a cause for hesitation and some Pepcid AC. “Sellers in the northeastern part of Pennsylvania, believe it or not, are still a little apprehensive about our market,” underscores Christina M. Keller, REALTOR® with Realty Network Group. “While inventory is low, very low in fact, making life much easier for my clients, who are thinking of putting their home on the market; some feel rushed attempting to get all their ducks in a row.”

Despite the jitters for some sellers, most are in a great position to move forward and with frugality. “Sellers are opting to save their money by not doing some of the basic upgrades we normally would see them do only a couple years ago,” indicates Mrs. Keller. “They don’t sense the need to replace worn flooring, repaint interior rooms or update their kitchens and baths. My sellers are smart and they understand this is the furthest thing we’ve had to a buyer’s market in quite some time. Armed with the knowledge there are fewer homes for buyers to choose from, they’re counting their savings and are letting the new owners do the work themselves post settlement. It’s been my experience that many home shoppers in the Greater Scranton area have come to expect this and are willing to take on the challenge to make their own updates. Unless of course, there are structural defects in the home, then they need to address and resolve said issues before getting to the closing table.”

“I don’t see buyers asking for the simple repairs to be done nearly as much as I experienced in the past. Buyers are simply happy to be chosen as so often there are multiple offers on the table for a single listing. Buyers who are willing to accept the property ‘as is’ are often the deciding factor and make the difference between the sellers accepting their offer or moving on to another. This can happen even when another offer comes in higher than the winning bid. Good news for sellers, not so much for buyers. The end result of this is we simply can’t negotiate a price reduction as easily as we did in the past.”

If you’re a seller who’s looking for a slight edge, listing your home mid or during the latter part of April might be the ticket.  According to realtor.com, April 10-16th is the best time to list.  “Sellers…can expect to find relatively high buyer interest, coupled with limited competition from other sellers, that equates to fast-selling homes at top dollar,” says Danielle Hale, the chief economist for realtor.com. Likewise, in looking back at 2021 home sales, Zillow has determined the end of April (21st through 28th) is “the most opportune time” to list.

It appears the next few weeks could be the sweet spot for sellers in 2022!

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Why Would I Need A Real Estate Appraiser?

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As a homeowner, why would I need the services of a real estate appraiser? And is one needed if I already have a business relationship with a REALTOR®? These are great questions, but before we dive in and answer them, let’s establish what we mean when we say “appraisal.”

For our purposes here, we’re not concerned with commercial real estate appraisals. These are a whole different animal and are sought after less than residential ones in our region. By appraisals, we’re referring to an accurate estimate of a home’s current/fair market value (emphasis added). We’ll break down the difference between this and how we understand a comparable market analysis, but it’s safe to say appraisals hold much more weight. Furthermore, an appraisal, which is required by a homebuyer’s lender, for instance, is completed by a licensed appraiser and not solely a real estate agent.

While some homeowners, who are looking to sell their home, might request from a REALTOR® what’s called a comparable market analysis (CMA), it’s critical to recognize the distinction between it and an appraisal. While agents might use methods of comparison similar to appraisers, they aren’t licensed appraisers with no motivation for the sale of the property. Generally speaking, CMAs are for agent purposes (listing a home for sale, data to support a buyer’s offer) and appraisals are for lending purposes. Read more about their differences here.

Regardless of the business relationship you have with a real estate professional, unless he/she has a license to appraise property in that state, his/her assessment on what a property is worth won’t hold water with the mortgage lender actually making the investment on the home on your behalf (whether you’re the homeowner or mortgagor). Not all appraisals involve banks though. “There are many reasons someone would hire an appraiser,” exclaims Maria Muchal Berta, Owner/Certified Real Estate Appraiser for Chiave Appraisal Group and Associate Broker with Realty Network Group. “One reason is if a buyer is using cash to purchase a property, meaning there are no banks involved in the transaction. It gives the buyer a piece of mind knowing they’re not overpaying for a property. Other common reasons for hiring an appraiser include divorces, settling estates, refinancing, applying for home equity loans, appealing tax assessments or they’re just curious about their home’s worth.”

We hope this elucidates why someone might need the services of a real estate appraiser. It’s a complicated market out there! Make sure you have the right people and tools at your fingertips. If you need further clarification regarding homebuying, look into this resource.

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