home

The Post-COVID Home Sale: How to Help Your Relatives

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | March 3rd, 2021

To the great frustration of would-be homebuyers, popular neighborhoods everywhere are now extremely short of available properties.

“This constitutes a significant housing crisis,” says Merrill Ottwein, a realty company owner who’s long focused his business on buyers.

Through much of 2020, one major factor constraining inventories was that many potential sellers were sitting on the sidelines, fearing COVID exposure during public showings of their homes.

But as the nation starts to enter the post-COVID period, housing analysts foresee gradual improvement on the supply side.

“We expect that the vaccine rollout will likely boost inventory as sellers become increasingly willing to move despite COVID-19, resulting in greater numbers of new listings beginning this spring,” says Chris Glynn, the principal economist at Zillow, the national real estate firm.

Yet many owners who’ve long resided in their property face a daunting challenge to prep their place for sale.

Joan Doyle, a real estate agent for Berkshire Hathaway Home Services, has worked with numerous sellers making major housing transitions. And she’s consulted with many relatives who want to pitch in.

“The most important thing relatives can do for the sale is to help clear the house of clutter,” Doyle says.

Granted, in inventory-tight markets many buyers continue to face multiple bidding situations. Yet they’ll still pay less for a property that’s crowded with accumulations, or they’ll rule it out altogether.

“If your stuff is everywhere, some buyers will never be interested. When they walk in and see all that clutter, they’ll just turn around and walk out immediately,” Doyle says.

The problem is that buyers who see a home in chaotic shape can’t picture themselves living there. Also, they assume the untidy owners have neglected upkeep and that the place is in bad condition.

“Today’s buyers are more sensitive to everything. They’re hesitant about the economy and their financial situation,” Doyle says.

For sellers who’ve long struggled with organizational challenges, the prospect of getting their property cleared out and ready for sale can seem overwhelming.

“I’ve worked with people who are crying and shaking when I come in,” says Susan Pinsky, a professional organizer who specializes in helping disorganized people get through difficult transitions, like the involuntary sale of their property.

Pinsky, author of “The Fast and Furious 5 Step Organizing Solution,” says that when a financial or medical problem necessitates a home sale, owners often need relatives to help them mobilize.

Here are a few tips for family members who wish to assist:

-- Consider hiring a professional organizer.

Many longtime owners resist the notion of paying for help from an organizer, believing it’s a waste of money for work that shouldn’t require outside assistance. But Pinsky says a professional can sometimes mean the difference between success and failure in the residential decluttering process.

“Too often, family members are very subjective about all the stuff in the house and fail to see the big picture the way a professional can,” she says.

Of course, not everyone can afford a professional to slog step-by-step through decluttering. If funds are limited, one possibility is to pay solely for the organizer’s services at the front end in order to create a roadmap that relatives can then follow.

To locate a professional organizer in your local area, Pinsky cites the website of the National Association of Productivity & Organizing Professionals (napo.net) as one source of names. Or sellers can ask trusted friends, neighbors or colleagues for this type of help. Alternatively, real estate agents can be a good source of referrals.

-- Break up the tasks among several family members.

What if no funds are available to pay a professional organizer? In that case, Pinsky recommends the relatives choose a project manager within the family who can then delegate tasks on a room-by-room basis.

“Divvy up the activities. One family member could help the homeowner go through all the dishware and china in the kitchen. Another could help with clothes in the bedrooms. And a third could tackle tools in the garage,” she says.

However, Pinsky cautions that no purging project goes forward smoothly unless the homeowners are consulted when decisions are made about which items will be kept, sold, thrown out or donated.

“If the owners aren’t the decision-makers, you’re just wasting your time trying to help. You can’t make decisions about other people’s things without meeting major resistance,” Pinsky says.

-- Ease your way through the disposal process.

All too often, Pinsky arrives at the home of clients who want organizational help but aren’t set up to make the process flow efficiently.

“The pathways in and out of the house are crowded, and there are just a few tiny wastebaskets for the collection of discards,” she says.

Pinsky arranges for the use of large trash bins, along with trash bags of different colors to make sure, for example, that items for charity don’t mingle with those destined for the landfill. Then she clears pathways to the doors to make sure it’s easy to remove anything that won’t be kept.

“The idea is to make the removal system as streamlined as possible,” Pinsky says.

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

home

Home Sellers: Must You Update in a Frothy Market?

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | February 24th, 2021

A retired federal employee in his 70s was highly motivated to sell the brick ranch house he’d inherited from his parents. By quickly downsizing to a small condo, he could liberate himself from nagging money problems. Hence, a few days ago he called his friend Sid Davis to list his place for sale.

Davis, a veteran real estate broker, told the owner that to maximize his proceeds, he’d need to update the house. Cosmetic improvements alone could net him an extra $20,000.

“Walking into this house was like going into a time warp. This was a true ‘fixer-upper.’ The kitchen had old linoleum countertops in sick gray. The badly worn carpets were original to the 1960s, as was the dated wallpaper throughout,” Davis says.

In a typical real estate market, the owner’s "fixer" would have languished unsold for a lengthy time, attracting only deeply discounted offers. But Davis told the owner that the current market -- with a severe shortage of available homes -- was far from typical.

“Sellers today are in the catbird seat. For the time being, Lady Luck is smiling down on them. Almost any decent house, so long as it has a roof and four walls, is very marketable,” Davis says.

Short on cash and in a hurry to liquidate, the retiree opted against upgrades that would have yielded him a higher price. Even so, the same day his place hit the market, it produced 20 showings and sold for the full asking price within hours. It was purchased by a couple in their 20s who vowed to renovate it themselves.

What’s the moral of this true tale? Davis, who’s sold homes since 1984, says this is one of the rare periods when housing demand so greatly exceeds supply that even fixer-uppers are attracting multiple offers.

“In my experience this has only happened a few times in recent decades. There are several reasons why it’s happening now. One is that mortgage rates are rock bottom. Another is that COVID is causing countless folks to seek better dwellings,” says Davis, the author of “A Survival Guide to Selling a Home.”

Of course, many sellers are willing to spend the energy and money needed to maximize their profits, assuming they can afford to do so.

Here are a few pointers:

-- Choose an experienced agent who offers sage guidance.

Eric Tyson, a personal finance expert and co-author of “House Selling for Dummies,” says agents vary widely in their skills and abilities.

“You want someone who will help you develop a strategic, step-by-step plan that works within your budget, however limited. Then you have to be open-minded about the necessary changes,” Tyson says.

Some agents will even step into the role of project manager, helping you find contractors willing to take on small jobs for reasonable prices.

“It could be a waste to pour your limited funds into a full kitchen renovation, including expensive new cabinets. But it might be worth the cash to paint your cabinets high-gloss white,” Tyson says.

As the first step in the agent-selection process, interview three candidates, asking each to critique your home and itemize cost-effective steps to make it more saleable, says Ashley Richardson, a long-time agent for the Long & Foster realty company.

“Find an experienced person who is personable and knows your neighborhood backwards and forwards,” she says.

-- Go on a junk-busting mission.

Many sellers feel overwhelmed by the magnitude of the tasks facing them. Richardson says those who can't handle all the projects can ask family members and friends to assist. If no volunteers step forward, she suggests they hire students or others looking for part-time work.

Delegate to the person you hire a series of manageable tasks.

“Tell them, for instance, to pack up the contents of your kitchen cabinets, a heavily loaded bookshelf or your bathroom countertops. All the items, most of which you won’t miss, can be packed in boxes and placed in neat stacks in your garage,” Richardson says.

Some people think it’s pointless for the owners of a home that’s sold “as is” to bother with the removal of clutter. But Richardson strongly disagrees.

“People simply can’t see how large your rooms are if they’re crowded with junk,” she says.

-- Give buyers a vision of your home’s potential.

If the house you’re selling is run-down, the odds are you don’t have enough money for major improvements. Even so, it’s important to make your place as attractive as possible.

“You won’t get buyers out to see your home in person unless it can pass the ‘online photo test.’ Everyone is now pre-screening property on their smartphone or computer,” Richardson says.

In addition to packing away clutter, you’ll want to cart out any furnishings or window coverings that seem drab or tired. These could be replaced with items borrowed from your agent.

“Realtors sometimes keep a stock of a few good furnishings -- including lamps, area rugs and paintings --that you can use during the showing period,” Richardson says.

In addition, the owners of an “as is” home should give visitors contractors’ estimates for necessary fixes -- like the replacement of a worn-out deck or the renovation of tile work in your master bath.

“Buyers routinely overestimate the cost of home improvement projects. You can help them to calculate the likely costs they’d face if they bought your fixer-upper,” Richardson says.

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

home

Tips for Navigating a Hot Market

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | February 17th, 2021

In neighborhoods everywhere, would-be homebuyers are wrestling with a question key to their financial future. Should they join the frantic race to buy this spring or delay their purchase plans in hopes of a potentially less frenzied housing market?

On this thorny question, COVID-era buyers are of two minds. On the one hand, they now have access to phenomenally low mortgage rates. They’re also experiencing a burning desire to leave cramped quarters. Their urge is for a residence with ample space for a commodious home office and perhaps a dedicated room for exercise.

But on the other hand, a severe shortage of available properties means home prices are high. In popular areas where listings are scarce and competitive bidding is rampant, buyers who attempt to play are facing sticker shock. Yet given the uncertain economy, potential purchasers are pondering the prospect that prices could moderate or even decline slightly later this year or in 2022.

Take the case of a 30-something architect married to a therapist of the same age. Working remotely for the better part of a year, the couple are now feeling squeezed in their slender two-bedroom city townhouse built more than a century ago. They’re longing for a newly constructed suburban place with larger rooms and at least one acre of land where they can grow vegetables. But every time they’ve attempted to bid, they’ve been aced out by other millennials.

Ryan Fitzgerald, the broker-owner of two North Carolina realty companies, doesn’t know the couple in this true story. Yet he’s well aware that would-be buyers all over the country are now greatly troubled by rising prices and scarce supply.

One advantage of acting immediately is the certainty of capturing a low-rate mortgage, which enhances buying power. Obviously, you can obtain more house for the money if your financing costs are lower. Buying promptly also allows you to actualize your lifestyle plans more quickly.

No one knows for sure whether mortgage rates will rise significantly by 2022. But real estate specialists expect prices will continue to rise in coming months, given the strong demand from many millennial-age buyers.

“This spring market will be the most competitive market of all time. Supply is the lowest ever. Demand is at an all-time high,” Fitzgerald says.

One factor in favor of delaying involves the potential expiration of the federal moratorium on foreclosures. After this occurs, likely later this year, numerous homeowners who are delinquent on their payments may sell rather than face foreclosure. That could increase the supply of available homes.

Though many wannabe homeowners are now struggling with the issue of timing their purchase plans, most ultimately opt for immediacy rather than delay.

“As all we humans know -- and especially so in the midst of a pandemic -- life is not a dress rehearsal. Therefore, the idea of postponing seems very unappealing,” says Tom Early, a veteran Ohio real estate broker.

Rather than delaying a home purchase, he advises clients in ultra-competitive markets to use other strategies to find a property they could plausibly afford.

“Resourceful buyers sometimes find opportunities -- even in the most torrid market,” says Early, a past president of the National Association of Exclusive Buyer Agents (naeba.org).

Here are a couple of pointers for those plotting a near-term purchase:

-- Search for eager sellers.

The loss of a job is one common reason homeowners must sell; divorce is another. Also, an increasing number of older baby boomers would like to sell and downsize as they head into retirement.

As a potential buyer, you might feel awkward seeking out owners who are under pressure to sell or who simply want to do so to move on with their plans. But there’s nothing unethical about doing this, according to Early.

“Owners whose houses have long been languishing on the market, usually due to overpricing, might be extremely ready to negotiate,” he says.

How can you identify those who are highly motivated to sell? Early suggests you ask your real estate agent to draw up a list of properties in your favored area that have been on the market for an extended period. Also, he recommends you go to the neighborhood where you’d like to buy and talk informally to residents.

“Tell the local residents how much you appreciate their neighborhood and they’ll be more likely to open up with you as to which houses could soon hit the Multiple Listing Service,” Early says.

-- Research any neighborhood you’re considering.

Early says many novice homebuyers let emotion dominate their thinking about where to live. But he strongly recommends that you also factor in some statistical measures before finalizing your neighborhood choice. This should increase your odds of choosing an area where prices are likely to rise in the future.

One way to help identify highly motivated sellers is by crunching numbers. Ask your real estate agent to determine the average “days on market” (from list to sale) for properties in the area you’ve chosen. Then look for homes in that price range that have been sitting unsold for a longer-than-average period.

“In this head-spinning market of high demand, you’re not going to get a steep discount on any property in any popular neighborhood. But at least you can hope to be competitive with other bidders and stand a chance of success in fulfilling your dreams,” Early says.

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

Next up: More trusted advice from...

  • How Confident Are You About Retiring?
  • How To Find a Retirement Investment Adviser
  • Volatile Markets Put Personal Planning to the Test
  • Balance Begins To Decline as Early as Age 50
  • Researchers Studying Adenovirus and Pediatric Hepatitis Link
  • New Booster Guidelines for Adults Over 50
  • Your Stars This Week for May 22, 2022
  • Your Stars This Week for May 15, 2022
  • Your Stars This Week for May 08, 2022
UExpressLifeParentingHomePetsHealthAstrologyOdditiesA-Z
AboutContactSubmissionsTerms of ServicePrivacy Policy
©2022 Andrews McMeel Universal