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Staging Tips for a Quality Sale

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | August 15th, 2018

The house was a bland, 1980s McMansion in the suburbs with nothing special to make it stand out. Even so, its owners, both senior-level financial consultants in their early 60s, wanted to sell quickly to take job offers overseas. Hence, they accepted their real estate agent’s advice and hired a home stager to make their place show-worthy.

“A professional stager can hand-over-fist get sellers more money than they could get for an unstaged home,” says Stacy Berman, the seasoned real estate agent who represented the couple.

Berman, who’s been selling property since 2002, says talented stagers can give a nondescript, older home “that wow factor” -- making it more appealing to younger buyers.

In the case of the financial consultants’ home, all the rooms had been painted in a hodgepodge of different colors, including one bedroom in purple. Wall-to-wall carpet was hiding handsome hardwood floors. And the entire property was crammed with excess furniture.

The whole staging process -- painting, ripping up the carpet, etc. -- was completed in a few weeks for a couple of thousand dollars. Once done, the property sold quickly and for $50,000 over list. Indeed, it fetched the highest price ever recorded for a house in the couple’s neighborhood.

Sid Davis, a real estate broker and author of “A Survival Guide to Selling a Home,” says savvy sellers realize that even in hot markets where demand is very strong, sellers are very picky.

Of course, not all sellers can afford the services of a professional stager beyond a single one- or two-hour consultation. Here are a few tactics for sellers to keep their presale expenses under control:

-- Grasp the power of a paint brush in your hand.

Davis says home sellers can recoup at least three dollars for every dollar spent on paint and supplies for an interior redo. What’s more, a freshly painted property will change hands more quickly than one without such a cosmetic uplift.

Obviously, you can always hire a painting firm to do the work. But Davis contends that most homeowners can become competent painters with a little effort.

Davis recommends that novice painters seek out guidance from a local home center store or paint company retailer. Also, the websites of major paint companies can be helpful.

-- Donate excess belongings to charity.

“Decluttering is absolutely vital because buyers can’t picture themselves living in a crowded house, and most will automatically reject such a place,” Davis says.

But the reality is that many homeowners have great difficulty ridding themselves of items they no longer use. For such sellers, the clearing-out process is easier if they’re assured their surplus items will be put to good use.

Besides giving your extra belongings to charities, you can find willing recipients through The Freecycle Network (freecycle.org), a service for those seeking to “gift” items to others in the same area. (Membership is free and it also allows you to pick up items from others who live nearby.)

-- Place large pieces of furniture in a neighbor’s garage or a storage unit.

“If you’re still living in the house you’re selling, make sure you take away as much furniture as possible so people can see how large your rooms are. Big furniture distorts the look and scale of any house,” Davis says.

To make a dining room seem larger, he suggests that sellers remove china cabinets, along with extra leaves from the dining room table. Also, eliminate all but four dining room chairs.

In the living room, a few basics are sufficient for home showings: one sofa, one loveseat, a couple of end tables and lighting. Ideally, you’ll also remove a television with an exceptionally large screen -- at least temporarily.

“One of those huge TVs can really overwhelm a living room or den. The same goes for a giant bedroom suite that can dwarf your master bedroom,” Davis says.

Keeping furniture to a minimum makes it easier for would-be buyers to picture how their own furnishings would look in your space.

-- Ask your listing agent to conduct open houses for other local agents.

Davis believes traditional open houses offer few advantages for sellers.

“Honestly, the big winners from most classic open houses are the agents who hold them. That’s because they often pick up new clients during open houses,” he says.

A real estate broker since 1984, Davis recalls just two cases in which he found a buyer for a property through a traditional open house.

“Usually it’s just curiosity seekers and unqualified buyers who come through the average public open house,” he says.

Davis says a better way for your agent to promote your property is through special events designed solely for real estate pros, not the general public. Such “brokers' opens” can be very helpful in spreading the word about your property.

“The more agents who troop through your property, the better. If your home shows beautifully, they’ll spread the word and bring in their own home-buying clients,” he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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Tips for Selling a High-End Property

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | August 8th, 2018

After her husband died three years ago, an engineer vowed to hang on to the lakeside house the couple had custom-built two decades earlier. But since then, the costs in money and energy for upkeep have mounted -- giving the widow a compelling reason to sell, and sell quickly.

There’s much to reassure the woman. Property values in her area have risen sharply, and lakeside homes are especially coveted. Still, the widow is nervous about the current market. That’s because the gradual rise of mortgage rates -- coupled with lagging income growth -- mean fewer prospects can now afford a place like hers.

Skylar Olsen, a senior economist for Zillow, which tracks real estate throughout the country, understands the anxieties of the woman in this true story. But as long as demand for property in prime areas continues to outstrip supply and the overall economy stays strong, she says the engineer’s prospects are excellent.

“For people who are downsizing, I don’t see any reason to be in a crazy rush to sell,” Olsen says.

Even so, she says all sellers of high-end properties need to be especially careful to create a reasonable pricing strategy.

“In the current market, if you price right, multiple bids are likely. But if you overprice, people will think you’re a little delusional, and that won’t work out well for you in the end,” she says.

Here are a few pointers for sellers:

-- Understand that those who ask too much often get too little.

Kathy Zimmermann, the broker-owner of a Re/Max real estate office, says accurate pricing can be complicated in a neighborhood like the engineer’s, where properties vary widely in style and size.

“Buyers aren’t going to waste their time trying to negotiate with someone asking way too much,” she says.

Accurate pricing is complicated, especially in areas where property valuations are in flux. In such neighborhoods, an examination of recent sales for similar homes -- known as “comps” -- may not give you obvious answers about how much to ask.

But accurate pricing is all the more important at a time when buyers are increasingly fearful they’ll overpay.

-- Realize that open houses don’t always guarantee results.

Many sellers of high-end homes that show well think of open houses as a panacea for any marketing woes they face.

But real estate specialists, such as Dorcas Helfant, a former president of the National Association of Realtors (realtor.org), says public open houses provide little utility to owners trying to gain momentum toward a sale.

She says open houses rarely attract serious, well-qualified purchasers. Many who attend open houses are neighbors or people seeking decorating ideas for their own homes, while others are mere wannabe buyers.

Rather than pressing your agent to hold more open houses, Helfant says you should consider asking for an “office caravan” to gain pointers on making your property more saleable. During such an event, many members of the sales force at the listing agent’s office come over to critique the home and offer suggestions for upgrades.

“The more eyes you put on the house, the better,” she says.

-- Use your nervous energy to power a cleaning campaign.

Zimmermann, a veteran in the real estate field, says that in recent years she’s observed a gradual decline in the cleanliness of properties shown for sale. All too often, she says, dual-income couples with busy schedules lack the time to keep a home as clean as their parents’ generation did.

Ironically, contemporary buyers hanker more than ever to own a spotless, well-kept place where they can get a fresh start.

Anxious owners who fear their homes won’t sell would do well to channel some of their nervous energy into an old-fashioned cleaning blitz that covers every inch of their place.

Showing a home in sparkling condition can give you a competitive edge over less tidy people trying to sell in the same neighborhood.

“Anyone who puts an immaculate house on the market should come out ahead,” Zimmermann says.

-- Resist the urge to pressure your listing agent.

Putting a lot of pressure on your listing agent may seem to help, but it can easily backfire if the agent begins to resent your persistent inquiries. Some agents may even drop clients who deal with their frustration by making excessive demands in an overly aggressive way.

“It’s not unusual to hear about agents terminating listing agreements if the homeowners fail to cooperate. You’re entitled to regular updates, but pestering your agent makes no sense,” Zimmermann says.

-- Fear not that your house will languish unsold.

Sellers who become caught in a web of worry only make it tougher to achieve a winning result from their sale.

“For sellers, the overall picture of the market is still an incredibly positive one. Yes, market conditions are changing and mortgage rates are rising -- which reduces buying power. But I still counsel my clients to stay calm and avoid needless fretting so they don’t sabotage their sale or suffer needless angst,” Helfant says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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Bidding for a House, on a Serious Tip

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | August 1st, 2018

It’s a time of conflicting signals for homebuyers. A decade after the nation’s real estate crash, property prices in popular areas are still rising and home loan rates are ascendant.

“The positive forces of faster growth and steady hiring are being met by the negative forces of higher home prices and mortgage rates,” says Lawrence Yun, chief economist for the National Association of Realtors (realtor.org).

Still, Yun and other housing economists say the skies are very gradually brightening for those motivated to buy a property in the coming months.

“It’s possible the worst of the supply crunch affecting most of the country has passed,” says Yun, noting that in June the level of housing inventory was up slightly for the first time in three years. Plus, several major metro areas are now witnessing jumps in supply.

At this point in the real estate cycle, overall demand for homes is slipping. But as always, there are some diehard buyers who are undaunted by rising mortgage rates, which are still very low. These determined buyers include millennial couples who wish to own for the first time and families with an urge to trade up to larger quarters.

“We Americans are pretty terrible at delayed gratification. ... If we want better housing, we don’t take kindly to a long wait to make those dreams come true,” says Mark Nash, a longtime real estate broker and author of “1001 Tips for Buying and Selling a Home.”

But he says buyers who prevail are those who stay focused on their goals in the home selection process and also take a strategic approach to bidding.

Here are a few pointers for buyers:

-- Seek to assess the sellers’ equity position.

Eve Alexander, a broker who deals exclusively with buyers, says it’s critical for buyers to gather as much information on the sellers as is readily available before bidding on any home.

“What you’re looking for are insights into the mindset of the sellers,” Alexander says.

One source of clues on the owners’ equity position can be found by searching local government land records. These records (usually available online) should tell you when the current owners purchased the place and the original price they paid.

“If the sellers brought the house a couple of decades ago and haven’t refinanced, they should have a lot more equity than if they bought it in a strong market just a few years ago,” Alexander says.

-- Ask your agent to query the listing agent.

When owners have an urgent need to sell, it’s normally against their interest for that information to be broadcast to the world. Even so, Alexander says many listing agents will readily disclose such client information in response to questions.

“You’d be amazed how much listing agents will divulge to a buyer’s agent. For example, they might blab about how the seller must move due to divorce or a job transfer,” she says.

-- Identify and rule out sellers who are simply testing the market.

Eric Tyson, co-author of “Home Buying for Dummies,” says that in all markets, including the current one, there are sellers who won’t budge from an unrealistically high price because they’re in no rush to move.

“Right now, there are surprisingly many indifferent sellers out there,” he says.

How can you tell which sellers are merely testing the market and will never negotiate seriously with anyone who bids less than their lofty list price?

Tyson recommends you ask your agent to find out if previous offers have come in on the property you want. If the owners have already rebuffed one or more fair offers without so much as a counterbid, this indicates they’ll probably resist reason with you, too.

The good news for buyers is that information on past offers is often readily available through the listing agent.

“Agents are inherently outgoing people. Some have very loose lips and will talk candidly about their clients’ negotiating position and whether it’s worth your while to make a bid that’s well under an excessive asking price,” he says.

While there’s no harm in trying to reason with market testers, Tyson says you can waste a lot of time and energy trying to budge people who won’t even entertain a fair offer. Better to look for someone who’s eager to sell.

“Finding the hungry home seller is the key to getting an extraordinary price,” Tyson says.

If you’re planning to buy in a neighborhood with widely varied properties, it’s helpful to compare the homes on your list on a price-per-square-foot basis. Then adjust for differences in size and home features, such as a larger garage.

“Start with 10 comparable homes and then work your way down to the five most similar ones,” Alexander says.

After estimating the current market value of the place you wish to buy, it’s time to decide how aggressive an offer to make. Alexander says that will depend on how enamored you are with the home.

“You won’t want to push the limits if you’ve fallen in love with the property and feel it’s a ‘do or die’ situation,” she says.

On the other hand, you might choose to make a lower offer if there are other available homes in the neighborhood that would meet your needs equally well.

“It’s always easier to negotiate without emotion if you can find second and third choice houses you also like,” Alexander says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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