Fab Real Estate Blog

When I take new buyer clients out to view homes, while we're driving around in my car and getting to know each other, I tell them that among other things, there is one very, very important rule that I have:  They must be honest with me!

I tell my buyers right up front that I will not be offended if they don't like a home's floorplan, or the wall-after-wall of wallpaper, or the Pepto-Bismol-pink bathroom.  (I had one of those in my first house...)  After all, I'm not the one who chose those pink bath tiles.

By telling me all they like or dislike about each home we view, I then learn more about their wants and needs in a new home - and what issues they can and cannot accept in a home - and I am then better able to choose and decide which other houses might be a good fit for them.  It saves us all a lot of time if I know they can't fathom the thought of removing wallpaper (I hate doing so myself) and I can then eliminate those homes where wallpaper is in use as if it were going out of style (and it did!).

Communication is key between buyers and their real estate agents.  Talk openly.  Be honest.  Be blunt.  I won't be offended, but I will be better able to find your new home!

I've always wondered how people can enter the real estate business, help people buy and sell homes, but have never bought or sold their own home.  I call them the "renter-real-estate-agents."

Can a renter be a good real estate agent? Perhaps.  But if they're not a homeowner themselves, they lack the true experience and knowledge of homeownership as a whole.  They lack the first-hand experience of all that homeownership entails - maintenance, property tax issues, tax deductions, the emotional attachments, and so on.

Most importantly, a renter-real-estate-agent has never experienced, personally, for themselves what it is truly like to be a home buyer and a home seller.  They don't have that up-close-and-personal knowledge that can only be gained by personal experience of the stresses involved in buying their home.  And, they don't have that up-close-and-personal knowledge that can only be gained by personal experience of the stresses involved in selling their home, either.

Buying and selling a home is an amazing, wonderful, stress-filled, anxiety-laden, expensive, (did I mention stress-filled?) and life-changing experience.  An agent who has been through it all themselves can understand, explain and prepare their clients for what to expect, thus lessening the stress.  They can better prepare a buyer for the home inspection, give personal examples of how to handle maintenance issues of homes, and share names of contractors they themselves have used.  They can share their personal war stories with sellers who quickly grow tired of keeping their home in model-condition and of having strangers traipse through their home.

It's important for real estate agents and their clients to connect on many levels, otherwise the relationship just won't work.  Working with an agent who has been through it all themselves should be a top priority on who a client chooses to have represent them.

And, yes, I have bought and sold several personal residences.  I've learned more each time, and it makes me not only more compassionate towards my clients, but it also makes me a better and smarter agent.

I've discussed common mistakes that homeowners make when selling their home.  Among these mistakes I have included Overpricing and Negligent Housekeeping.

Sellers should rely upon, and expect from, their real estate agents information, direction and advice on how to make their home stand out from the competition, attract more buyers, and sell quicker and for top dollar.  What some sellers may not realize is that the condition of their home plays a huge, huge role in buyers' perceptions of the home in general.  A few minor broken items may cause buyers to wonder what else may be wrong with the house that they cannot see.

So, this brings us to the latest Top Seller Mistake:

Failing to Fix-It
Consider that most buyers are happiest when moving into a home that is in near-perfect condition. When scanning real estate ads, you will often see homes listed as being in "move-in condition," and this statement tends to resonate with buyers.  If buyers look at a home and see that they will have to fix the roof, replace the garage door, remove peeling wallpaper or just about anything, this may give them pause about buying. At the least, it will lower the perceived value of your home in the buyers' eyes.

For best results and most profitable sales, sellers should perform all needed work on the home and the landscaping prior to going on the market. A model-perfect home is going to attract the highest price.

Sellers should have pre-sale inspections performed on their home prior to the marketing of the home.  This will allow the homeowners to find out what, if anything, is defective about their home.  It will avoid any costly surprises that can arise from buyers' inspections.  And, it allows the sellers the time and convenience of being able to shop around for the best contractors and the best prices to fix these items now.  Then, if and when the buyers have their own inspections performed, the sellers can relax knowing their home has already been checked out by a competent inspector, repairs have been made, and the buyers' inspector should not turn up anything of concern.

As a seller, allow yourself the luxury of selling a well-cared for and maintained home.  Don't allow any surprises to sour the negotiation between you and the buyers. Take care of things up front, and avoid potentially costly negotiations during the contract period.  And, you'll be allowing the buyers to move into your home with the trust that the home has been cared for and attended to.  That's a good thing!

A few weeks ago, I received a call from a prospective client who wanted to buy his first home.  We talked about his needs and wants.  Where he wants to live.  The basics.  We also discussed his price range.  When I talked about helping him get pre-approved for a mortgage, he refused.  He wanted to see what's out there in his price range first.

Well, if you need a mortgage to buy a home, and you won't get pre-approved for that mortgage by a mortgage broker, then how do we know for sure what price range to be looking at? 

Say we find you the perfect home.  You fall in love with it.  It has everything you want and more.  It's listed at $600,000, and that looks to be about the right price for that home, based on comparable sales we've looked at. 

What if, after finding this dream house, we then go through the mortgage pre-approval process, and it turns out you can only afford up to $450,000?  Can we find you a home in this new price range?  Of course.  But, in your mind, it will never compare to that $600,000 home you've already fallen in love with.  It will never compare to that $600,000 home you've already mentally arranged your furniture in, and already envisioned how much you'll enjoy taking long, hot baths in that beautifully remodeled master suite.

Basically, the buyer in this scenario has set himself up for doom and gloom.  It's my job to help my clients avoid this.  It's my job to guide you through the entire process, from start to finish, and in the correct order.

Let's find your new home.  Let's find that perfect home for you.  But, let's find it in your price range.  Whether you're just starting out, moving up or downsizing, there's a home out there for you, and together we will find it.  But, let's do things properly and in the correct order.  Let's get your financing set up with a mortgage broker first.  Let's discuss those numbers and your monthly payments.  Let's determine what kind of mortgage and payments you will be comfortable with.  Then let's look at homes in that correct, pre-approved price range. 

This way, we'll not only find your new home of your dreams, but it will also be one you can afford.

I haven't helped the above-mentioned buyer find a home yet.  I'm waiting until he decides to get pre-approved for financing first.  Hopefully it will be soon, as helping first-time buyers find their new home is one of the joys of my job.  I love the look on their faces when I hand them the keys to their new home!

In an effort to reduce the stress of selling your home, and to make the process fun, enjoyable and profitable for home owners, we need to discuss the common mistakes made by some sellers.  Previously, we discussed overpricing, which can certainly turn off prospective buyers and their agents.

As we continue our discussion of mistakes sellers make when selling their home, the presentation of the house itself must be discussed.

Negligent Housekeeping
Take a good, objective look at the condition of the interior and exterior of your home. Is the paint fresh on the walls and trim? Is the carpet clean? Are windows sparkling? Are yards and walkways free of trip hazards and surrounded by bright, cheerful plantings? Clean, well-kept homes with an updated appearance always have an advantage, and a little decorating appeal can go a long way. Be sure to remove any clutter.  Allow buyers to be able to envision themselves living in the home.

You don't have to buy new furniture to create charm, but you can put toys and knick-knacks away, freshen up paint and carpets, make the most of window coverings, add a few key accessories, and trim back and replace landscaping plants as needed.  Blooming, flowering plants near the walkway and front door always add to a beautiful ambience.  Open those curtains and turn on those lights! You want your home to appear clean and comfortable.  Work with your real estate agent to determine what items need your attention.

Prior to your home going on the market, start packing for your move.  Rent a storage space if needed, and

• Store that excess furniture
• Thin out your closets and remove the excess clothing
• Put some kids' toys away (then they'll be new toys again when you move into your new home!)
• Remove unneeded cookware and gadgets from the kitchen cabinets
• Eliminate everything from kitchen and bathroom counters that you don't need to use every day
• Clear out tools and your workbench from the garage or basement
• Hide away unneeded garden and lawn equipment
• Remove any expensive or sentimental items that you do not want damaged
• Hide all prescription medications
• Remove any guns or other weaponry that could upset potential buyers

And, of course, don't forget to clean every day, or at least prior to every showing of your home.  Vacuum and/or mop the floors.  Wipe down all kitchen and bathroom counters and sinks.  Take out the garbage - every day.  Don't allow dirty laundry to accumulate.  Sweep up leaves and dirt from the driveway and walkways.  Keep the lawn neat and mowed. 

Most of these items can be done before your home goes on the market.  Then, set up a daily morning routine for regular maintenance of cleaning issues.  Once you begin, it becomes a lot less work than you imagine.  Keep in mind that selling your home is not the same as living in your home.  With a little concerted effort, you can maintain your home as a shiny, sparkling show place that buyers will put at the top of their list, generating a sale quicker.  And remember, the faster your home sells, the less cleaning and upkeep you will have to do in the long run!

Selling your home can be a stressful experience.  But it doesn't need to be that way.  Most home-selling pitfalls are easily avoided with up-front preparation and teamwork between you and your real estate agent.  I have determined the most common mistakes home sellers make, along with how to avoid them in order to get the best price for your home, in the shortest amount of time, with the least amount of stress.

Today we'll focus on an unfortunately very common Seller Mistake:

Over-pricing
Based on an emotional assessment, it is easy to think your house is worth more than the current market may support. After all, it's not just your house, but it is your home, and your home is special to you and your family.  To determine a reasonable listing price, work with a real estate professional familiar with your area. Your agent will provide a comparable market analysis of your home, including recent listing and sales prices of homes in your area, along with how long it took for the homes to sell.

Even when homes sales are brisk, and homes are flying off the market, it is still important to consider "Competitive Pricing" of your home.  Listing at a price competitive with - not higher than -- recent sales prices will create additional interest in your home, generating much interest from the pool of buyers in the market for a new home.  Pricing your home higher than the competition, or higher than recent comparable sales prices, will result in buyers and other real estate agents avoiding your home and focusing their interest on other, well-priced homes in your area.

An over-priced home can also be used by buyers and their agents to show the inherent value of another, competitively-priced home.  What does this mean to you, as the seller?  It means that your home just succeeded in being the cause of your neighbor's home to sell. This should not be your intention when putting your home on the market.

Proper and competitive pricing is just one aspect of the home sale that your real estate agent will assist you with.  But it is one of the first and most important issues to be dealt with up front.

Everyone wants to know what the real estate market is like today.  Is it a bubble?  Is it going to burst?  Did it burst already?  I don't have a crystal ball, so I can't claim to know all the answers.  But, as a real estate agent, I can make some educated guesses based on experience.

I don't believe my market area (Western Connecticut/Greater Danbury area) is experiencing a bubble, nor are there any signs of an impending bubble burst.  Prices have stabilized.  Some areas have seen slight price reductions, other areas continue to see slight appreciation rates.  Normalcy has returned to the home sale market.

The available inventory of homes for sale on the market has increased during the course of 2006, while at the same time some buyers have taken a step back, thinking prices will drop.  More homes for sale mean greater choices for buyers, and fewer multiple offer situations.  However, some smart sellers with homes priced right for their condition and location are still enjoying multiple offers from multiple buyers.

Interest rates remain near all-time lows.  If interest rates shoot up dramatically, then might that mean a reduction in area home values?  Possibly.  But, with higher interest rates, that also means that that possibly-lower-priced home may actually cost you more due to the increased interest payments.

I've met many "buyers" over the years who have refused to buy, demanding that they will wait until the bubble bursts and prices drop.  Many of them are still waiting 5 or 6 years later.  They've missed years of extreme price appreciation, equity build-up, mortgage interest tax deductions, property tax deductions, and perhaps most importantly, the personal joys and pride of home ownership.

I closed on my own current personal residence in September, 2005.  Many consider that to have been the peak of our area's prices, and the end of our "sellers' market."  But, since then, in this new and different market, I have still enjoyed about a 7% value appreciation on my home.  That is equity that those sitting on the sidelines and renting did not earn.

I believe that home ownership offers so many advantages - both tangible and intangible.  Buyers and sellers need to take some of the national headlines they read about the "bubble" with a grain of salt and talk to their local real estate agents about their immediate area's market conditions.  Make informed decisions about your real estate needs and wants and enjoy them for years to come.