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5 Simple Ways to Increase Your Odds of Selling Your Home Faster
5 Simple Ways to Increase Your Odds of Selling Your Home Faster
Even when the market is slow, there are ways to make sure that your home sells as fast as possible. Most people think that to make a fast sale you have to take a loss or less money than you really want to for the house. That isn’t the case at all. In fact, you have a good chance of getting exactly what you want for it. Just implement a few simple concepts.
Offer Accurate Details
Most buyers today are looking online before they go anywhere else. That means you have a prime opportunity to find the perfect buyer for your house just by offering accurate details. Take a look at some of the suggestions below for accuracy and transparency.
- Feature multiple clear images. Let the buyer see exactly what you have. Don’t skimp on the photos. Your buyer shouldn’t have to ask for more images, but should be able to daydream using the existing ones.
- Present a realistic price. If you want to sell your home fast, don’t plan on haggling. Many buyers assume that you won’t come down on the price, so they keep browsing if yours is too high. Set the price for the amount that you really want.
- Share information about the area, including nearby shopping areas, transportation services, and so forth.
De-Personalize the Home
When someone comes to look at the house, they shouldn’t be able to tell that you have pets or love crafting. Instead, let them imagine their own life in your house by decluttering it and removing most of the décor. Empty space makes a home look bigger, but it also allows them to imagine how they might use it.
Be Flexible about Showing
Keep an open schedule so that you can show your house at the convenience of the buyer rather than your own convenience. Sacrificing some of your free time is a small price to pay for a quick sale.
Use Social Media
One source reported as many home sales from Facebook as any of their other resources. Make sure your home is listed on all the right sites and promote it yourself in social media. After all, the people in your circle are likely to be in your area, and most likely to share with those interested in living there.
Make Improvements
Tend to those little issues that have been driving your nuts for years. Potential buyers should be impressed from the minute they pull into the driveway. Paint walls, clean the carpets, and maybe even install some new landscaping and modern fixtures.
Advertising Your Real Estate Listing: What Your Agent Does
Advertising Your Real Estate Listing: What Your Agent Does
You interview a few agents. They each give you their ideas on what needs to be done within your home to sell it. You make a ton of changes, paint the walls, and completely declutter. You sign a contract and your house is magically on the market. So what does your agent do next to make sure it is actually seen? While no two agents are alike, here are some of the things that often happen.
MLS Listings
The first thing your agent will do is take photographs of your home’s interior and exterior. This is quite a process and is a task you need to allow to happen. The agent will either do it himself or have a professional photographer working with his agency participate. The more the better. Showing your home from a myriad of angles will help those viewing your listings decide if they want to see it in person.
After the pictures are taken, your agent will set up an MLS (Multiple Listing Service) ad for your home. All of the details describing your home are listed online and this information is what feeds out to all of the home listing websites you love to browse. If you see your home on a website, the information is being pulled from the MLS.
Virtual Home Tours and Social Media
A virtual tour of your home, in the form of a video, may also be made. This video will be posted to YouTube and other video sharing sites to provide visitors with a more interactive view of your home. The listing will, of course, contain links back to your online home listings and your agent’s contact information.
Your agent should, hopefully, have a strong social media presence where he is also sharing links to your home, videos, pictures, and other pertinent information.
Agent Home Tour
While a lot of people are familiar with the concept of the open house and individual showings, not many are as familiar with the concept of the agent tour. An agent tour happens when your real estate agent invites other real estate agents to see your home. This increases exposure by allowing agents to see the home in person so that they have a fresh idea of what it’s like before recommending it to their potential buyers.
Real estate agents today have a lot of very creative options available to them when selling your home. Print ads, mailers, pamphlets for passers-by to take, and a little bit of old-fashioned scrutiny can go a very long way. Talk to us if you have concerns about where your home is being listed, or how. We’d love to help.
Should I Buy an Investment Property?
Should I Buy an Investment Property?
When people think of investment properties, many automatically assume a second home, vacation home, or rental property. An investment property may also be a lower-valued home, whether because of foreclosure or needed repairs, that you invest into bringing up to market value. No matter what the scenario, your net worth and the value of your portfolio increases. The real question is whether or not you’re ready to add an investment property to your real estate portfolio. For the purposes of this article, we’ll assume you’re looking at a rental property. Here are some things you’ll need to consider.
Calculate Your Expenses
There are quite a number of online calculators you can use to determine whether or not an investment property will be profitable to you. They consider the purchase price, down payment, interest, homeowners insurance needs, municipal taxes, potential maintenance (whether you perform it or you have to hire someone), and more. You then look at the monthly rental value, potential rent increases, and inflation.
Consider the Demographics
Be realistic. If you’re looking at a low-value investment property because you know you can fix it up, you also need to consider whether or not the work is worth the effort. Why was the home left to get to fixer-upper status? Are the people who live in the area where you hope to rent capable of paying a rent level that will make your investment a profitable part of your portfolio? You definitely need to find balance.
People Skills
If you don’t like dealing with people, dealing with tenants may not be your cup of tea. It’s not just about collecting your rent check every month. It’s about dealing with late payments, communicating when repairs need to be made, and enforcing the terms of your lease. You do have options, though. You can do this yourself or you can hire an outside service or agent to handle the vetting and rental process for you, though the latter will end up costing you more money.
At the end of the day, an investment property can turn into a really great addition to your portfolio. Albeit sometimes problematic, the need for real estate and – right now – rentals, is relatively high. Talk to your lawyer and financial adviser to be sure you’re ready and then talk to your real estate agent about potential properties. The right one is out there!
Understanding the Millennial Home Buyer
Understanding the Millennial Home Buyer
As a real estate agent, it is important to understand the individuals you’ll be working with. Different generations have different needs. The Millennial generation (those currently between the ages of 18 and 34), haven’t been quick to jump on home buying opportunities. In today’s market, they make up a very specific subset. Here’s what you need to understand.
Generation Y: The Millennial
Generation Y, or the Millennials, is made up of individuals born between 1980 and 1995. According to realtor.org, this group currently makes up 31% of the buying market and 12% of the selling market. Closer looks at the characteristics of the group show that only 6% initially buy a multi-generational home, which means a great portion of those buyers are repeat home buyers who are looking to upsize. All are motivated to own a home.
Challenges to Consider
Here is where things begin to get interesting. According to Bankrate.com, your Generation Y (and Generation X) buyers tend to fall into two distinct categories. You’ll find yourself working with a motivated young professional with a busy schedule – someone who wants a home that doesn’t really need any work. On the other hand, you may find yourself working with someone who is super creative and who wants to spend a lot of time creating a personalized home. Knowing exactly who you are working with will help you to determine which homes are better for showing, and whether or not you have any room to sway a person to something in the middle or in the other direction altogether.
Some researchers believe Millennials are completely changing the home buying process. The reality is that it is a big group and, as such, will have a lot of life demands and challenges that we haven’t seen before. The average member of Gen Y has an incredible amount of student loan debt. Young unmarried couples are more willing to purchase homes together than older after-marriage traditionalists. They like to move a lot and aren’t afraid of flipping.
Working hard to better connect with your real estate clients? Contact us today to talk about establishing a relationship with Century 21. We’re here to help you grow.
What is Real Estate Leverage?
What is Real Estate Leverage?
When it comes to real estate, finance, and investing, the language used can be a bit confusing and overwhelming. Today we want to take a closer look at real estate leverage and what it means to you, as a buyer and investor.
What is Leverage?
Leverage, by definition, is when you use borrowed money (or capital) or some other financial tool to increase the return you receive on a particular investment. It’s not an uncommon at all. As a matter of fact, most people purchasing homes with mortgages are using leverage.
Take a closer look at the example in this Investopedia article and you’ll see how it works. The example provided is that you are putting 20% of your own money, or $100,000, down as a deposit on a $500,000 asset or home. The other 80% of the purchase price is borrowed money. If the value of the property appreciates 5% over the course of a year, the net worth of the borrower, as the owner of the property, is now $525,000.
If that same borrower had said, “I only have $100,000 and I don’t want to borrow any money,” and thus purchased a $100,000 home outright, that same 5% appreciation would only be worth $5,000 instead of $25,000.
So if an individual is in a position to borrow, the end return on the investment stands to be much higher.
Accessing Leverage
It takes money to make money, and that is especially true when it comes to real estate. While a mortgage company is the most traditional route, many investors will seek private capital or other means of investment. No matter what you choose, you’ll want to make sure you understand the numbers and negotiate the least amount of interest possible – something that will also help you to maximize your ROI.
There are Drawbacks
There are, of course, drawbacks. You need to have a strong understanding of the home you’re buying, the real estate market in general, and the area in which you are purchasing. While in the scenario above the individual’s net worth was increased by $25,000, a simple deflation in the value of the home could result in a negative impact and a decrease in the net worth.
Talk to your financial advisor or lawyer if you need help understanding your own financial position and whether or not leveraging the money you have to purchase a higher valued property is right for you. Once you’re ready, your real estate agent will be happy to help you find a property that fits the mold.
Is It Possible to Sell a Home in the Winter?
Is It Possible to Sell a Home in the Winter?
A lot of people look at the winter season as an absolutely horrific time of year to purchase a home. Truth be told, it’s not always the most pleasant time of the year, but it’s still possible to sell.
What are the Drawbacks?
You’re fighting a lot in the winter months. First, you have to compete with the holiday season, during which everyone tends to focus on each day and generally not on moving. Then you have the deepest part of the winter to contend with, including bitter cold, ice, and snow. People just don’t want to go out in the dark, especially in dreary conditions.
The Benefits of a Winter Sale
The benefits are, of course, that any buyer you do meet is very likely moving quickly and with purpose. Many winter buyers do so for a reason – a job relocation, a divorce – some sort of need. They don’t tend to have a ton of time to shop around and aren’t interested in prolonging the process.
Believe it or not, the numbers support not waiting until the Spring to put your home on the market. According to the Redfin Research Center, winter listings are 9% more likely to sell, are likely to sell a week faster than other homes, and generally sell for 1.2% more than home sold during other times of the year. That’s huge!
How to Sell Faster in the Winter
You will, of course, need to make some effort to make your home appealing during the winter months. Make sure your home is always well-list, especially since people looking to buy may be visiting after work, when it’s colder. Make sure your driveway and walkways are cleared of snow and are salted to prevent dangerous ice accumulation.
Make sure the inside of your home is warm and inviting as well, and ensure your holiday clutter is carefully put away. A warm, clean home will allow potential visitors to envision themselves living in your space, no matter how dreary it is outside.
Not sure if winter is right for you? Talk to your real estate agent. We can help you decide when and how to list your home and what price points are best.
7 Simple Secrets for First-Time Home Buyers
7 Simple Secrets for First-Time Home Buyers
Psst! Hey, you! Buying your first house? We know a few things we think you should know. Things that will ensure you end up in a house you can afford in a neighborhood you love – without having to shell out a ton of money later on to make avoidable repairs. Ready? Here we go…
Counseling is Available – for Free
There are a lot of non-profit organizations who provide housing counselors. Talk to one. These individuals can help you to assess your finances, life situation, and other considerations and help you determine if it’s really the right time for you to buy.
You Need to Understand Your Lifestyle
We’d like nothing better than to sell you the house of your dreams, but the realist inside knows that not everyone has a lifestyle that makes homeownership feasible. Take a close look at your field of work, the current economy, and recent trends. Does buying a home make financial sense?
Assess Your Finances
A lot of people look at homes before looking at their finances and this is a HUGE mistake. You need to consider your credit history, capital for a down payment, capacity to pay your bills, and the collateral (condition of the house you want to buy). There are a lot of online estimators you can use to assess your finances. Try one.
Have a Bottom Line
Walk into every situation using your head, not your heart. You may be in love with a home, but if the seller won’t budge on the price, you have to know when to walk away. Just because you’re approved for a certain mortgage amount doesn’t mean you should buy a house for that same high price.
Shopping for Necessities
A lot of people look at the home but forget about the rest. Make sure you consider the amount of money you’ll need to spend on renovations. Oh, and appliances – the fridge, washer, dryer, and oven are important. If this is truly your first home, you’ll need furniture, too. Shop around and consider the prices as you calculate the total you’ll really need.
You’re Allowed to Make a Low Offer
That house you’re interested in has been sitting empty for a very, very long time. No one seems particularly interested and it’s still there despite you spending weeks looking at other homes. You want to make an offer, but you want to make a low offer. Do it. The worst that can happen is that the seller says no. And you never know; he might just say yes.
Have a Home Inspection
You’ve made your choice. Great! Now make sure you get a professional home inspection. Your offer should be contingent upon the results of the home inspection so that you can back out if the inspector finds something wrong with the home that can’t be handled reasonably. Make sure your offer includes this condition. It’s important.
Your real estate agent is here to help, no matter what. Give us a call and we’ll walk you through the process from start to finish. We can’t wait to see you settle into your first home!
Buying a Home: What Type of Insurance Do I Need?
Buying a Home: What Type of Insurance Do I Need?
Congratulations on your decision to buy a home! No matter where you end up, you’re going to need some sort of insurance to protect your new investment. Here’s what you need to know.
Buying a Condo
If you’re buying a condo, you’re going to need what is referred to as an HO-6 policy. Condominiums are interesting because while you own the inside of your unit (everything “from the walls in”), your association owns everything from the studs out. This includes common areas, the roof, and any other area not in your unit. Your insurance will specifically state that it only covers the area inside your unit, including permanent fixtures. You’ll also receive coverage for your personal property, loss of use if you need to rent a place to live after a covered cause of loss, and liability coverage to protect you if someone is hurt on your property.
Buying a House You’ll Live In
The most commonly known type of homeowner’s insurance policy, for a house in which you’ll live, is the HO-3, though there are now other variations. The traditional homeowner’s policy includes coverage for the house itself, coverage for additional structures (like a detached shed or garage), personal property coverage for your belongings, loss of use coverage, and personal liability coverage.
Buying a House As an Investment Property
Are you buying a home as an investment property or to rent to others? In this case you’ll need a HO-2 policy, or a dwelling policy. This type of policy protects your interest in the building and the detached structures, and also includes personal liability coverage. If you rent the home to someone else, he’ll need to buy his own renter’s insurance policy to protect her personal property and his personal liability. Talk to your insurance agent if you’re renting your home to ensure you get the exact coverage you need.
A lot of mortgage companies will require you to purchase insurance upfront for the first year while others will include the cost in the mortgage payments. Ask your real estate agent if you need help finding someone to write your insurance policy, or if you aren’t sure what you need to satisfy closing requirements.
7 Tips for Negotiating the Purchase of Your Next Home
7 Tips for Negotiating the Purchase of Your Next Home
You’ve been pre-approved for a mortgage. You’ve done your homework and you know what you can realistically fit into your budget. You’ve found your dream house bit it’s just slightly out of range. What can you do? Negotiate, of course.
Don’t Be Afraid of a Low Offer
Don’t be afraid of a low offer – ever. It doesn’t take a lot of work for your real estate agent to share your bid with a potential seller, so start low (lower even than you think they might take) and work your way back up. Just make sure you know where your stop point is.
Don’t Plan on Reopening Negotiations
If you do place an offer, make sure it is contingent upon a home inspection. If you do find something wrong with the house, don’t assume the seller will renegotiate. You may be eligible for a credit at closing to pay for the repairs yourself, but don’t assume you’ll be able to drop the price of the house significantly. Be prepared to walk away.
Ask for Repairs
That said, don’t be afraid to ask for repairs. If you don’t ask, you’ll ever know, and you certainly won’t receive. Wait until your inspection is finished and then ask for all of your repairs at once.
Do Your Homework
Find out why the seller is moving. This info will help you determine how quickly the seller may want to go to closing, or even if he may want or need to rent the house back for a short period of time. You should also find out if the house is in foreclosure, how long it’s been on the market, and what neighboring homes have gone for.
Move Quickly
Don’t assume you’re the only buyer placing an offer. If you receive a counteroffer, respond to it very quickly. The longer you wait, the more time other buyers may have to make a better deal with the seller. Once your offer is accepted, you’re in!
Never Bypass Your Agent
You have a quick question about the house? Never, ever go to the seller directly. It sounds complicated, but going through your agent and allowing her to ask the seller’s agent is the safer route. It protects you from misunderstanding legal jargon and, to be honest, it’s part of what you’re paying for.
Communicate with Your Lender
Keep tabs on your offer numbers and ask your mortgage broker to recalculate your monthly payment as you make changes. This will help you to avoid surprises if your offer ends up being higher than you anticipated (or lower, for that matter).
At the end of the day, your real estate agent is there to help you with negotiations. Never be afraid to ask questions or request negotiations. Doing so could land you in your dream home!
Staging 101: Autumn Home Maintenance and Staging Tips
Staging 101: Autumn Home Maintenance and Staging Tips
Fall is here and let’s be honest – people are excited about it. They love the cooler weather and the fall atmosphere. They’re also not as busy with vacations and once the kids are settled back into school they have more time to look at homes again. So what do you need to do to slant your home staging techniques towards the autumn season? Here are some ideas.
Brush Up Your Curb Appeal
The season for mowing may be over, but make sure you give the lawn one last going over if it needs it. Now your focus will be on making sure the lawn is raked regularly, so that it isn’t completely overtaken by leaves. A few here and there are ok – it’s natural. A lawn that looks like an entire tree fell overnight definitely won’t look as nice.
Consider picking up a few big potted mums to accent your front entryway, too. They’re a common fall plant, are relatively inexpensive, and will add a nice pop of color to your entryway.
Keep your outside décor simple. A nice fall wreath on the front door is great. As much as it may pain you, you’ll want to avoid going all-out to decorate for Halloween. Stick to the “fall” theme alone.
Accent Your Fireplace
Does your home have a fireplace? If so, make sure it’s accented. Clean the area around it. Have it ready to go so that a fire can be lit if needed. Don’t light a fire if it’s not really cool enough, though, or the house will be too warm. Just make sure the fireplace area is free of clutter so that your visitors can imagine themselves cozied up by a nice fall fire.
Warm Accents
Don’t go overboard, but make sure the accents in your home speak of fall. Use autumn colors to decorate your kitchen and look for some throw blankets and accent pillows for your living areas.
Again, less is more. Keep your autumn décor simple, with just a few carefully placed decorations and/or candles. Put the Halloween decorations away and stick to more generic, seasonal accessories.
If you’re home’s already on the market, you’ve probably already worked with your real estate agent on decluttering and staging basics. A few simple changes will help you to transition your home from summer to fall – and hopefully to a sale!
