Houlihan Lawrence 3rd Quarter Market Report

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3rd Quarter Market Report

This is extremely informative and very relevant and timely.

WHY HASN'T MY HOUSE SOLD?????

WHY HASN’T MY HOUSE SOLD?

I can’t begin to tell you how many times I have heard that question. Time and time again people list their properties with Realtors^® or licensees (licensed real estate agents/brokers who have no affiliation with the National Association of Realtors^®) because they liked the higher price that the agent told them the property was worth.  In many cases the agent may have truly believed the property was worth more, and naturally the seller did, and therefore went with the higher asking price and did not reduce enough or fast enough or both, and now sit with a property that has gone “stale” (like a loaf of bread on a market shelf that has not sold) making it doubly difficult to sell. Just as often, however, agents try and “buy” a listing by over-inflating the value to a seller and then trying to reduce as soon as possible leaving the seller dumbfounded, thinking “but you told me it was worth $X.”

Undoubtedly we have all heard the real estate battle cry “LOCATION, LOCATION, LOCATION.”  Well, that is only partly true…a better way to say it is “PRICE, PRICE, PRICE.”  Yes, location will dictate price (up OR down,) as will condition of property, and condition of the local real estate market.  In real estate, there are actually 5 key factors in selling property, both primary residences and investment grade properties. Price. Location. Market conditions. Realtor^®. Property condition.  I will endeavor to expand on all 5 for you here:

PROPERTY CONDITION: Let’s face it, if the property looks disheveled, in need of paint, has an overgrown lawn, a roof missing shingles, and a kitchen that only Cro-Magnon man would appreciate, it will dictate a lower price. I ask people, generally before I even arrive at a property to valuate it, to please go outside to the street and look at the house as if they were looking at it for the first time.  Then, stop at the front door and look around and write down what you see.  Chipped paint, misaligned storm/screen door, loose stones on the stoop, cobwebs, dirt, etc., all leave a bad impression and there is only one chance to make a good first impression. This same approach should be used all around the house; these minor cosmetic repairs will make a HUGE difference in the ultimate sale price of the house; what would cost you $100.00 to repair translates in the buyer’s mind as $1,000.00 and they will subtract that off of any offer they were considering making. Conversely, that $100.00 repair in advance could gain you $1,000.00 in your sales price! Make the house shine! A fresh perspective from your Realtor^® (ME!) can help put your house in top showing condition both with cosmetic repairs and proper staging.

MARKET CONDITIONS: Well, unfortunately this is something that simply cannot be changed, it is what it is.  Pricing according to the market is of paramount importance; you don’t want to undersell (or as seller’s like to say “give it away”) and you also never want to overprice as this will scare buyers from even looking at the property, let alone placing offers. Price the property right and let the market drive it!

REALTOR^®: This is definitely something you can change, very often even after you have listed your property. Choosing the right realtor is crucial. Not only should you be able to get along and talk comfortably with your agent, you should be very confident in his or her abilities as a broker. Years in the business, amount of deals successfully completed, market knowledge, drive, energy level, and congenial demeanor are all things you want to look out for.  Interview at least three Realtors before you make your decision unless you meet “the one” before other interviews. Try to listen to what the agent has to say and look at the evidence they present; don’t just look at want you want to see and listen to what you want to hear. Do you want your agent to lie to you or level with you? I suggest level honest answers rather than hype, smoke, and mirrors. No amount of marketing is going to sell an overpriced listing and agents with access to the MLS (Multiple Listing Service,) and experience have all of the evidence they need to price your property correctly.

LOCATION: Well, here is another aspect of your property that cannot be changed. The property is where it is! Whether it is on an estate lined street or a two lane highway, the location is not changing. Double yellow lines, metered parking, trucks making deliveries, and honking horns all take away value for a prospective buyer.  Tree lined streets, quiet venues, and other attractive houses conversely add value to a prospective buyer. Price accordingly.

PRICE: OK, well, this is the ultimate issue that most seller’s cringe at talking about. I cannot stress enough how important the right price, from the onset, is to the highest possible sales price.  This unfortunately, can sometimes be arbitrary and take some finesse to properly hone, but it is the very first thing a buyer finds out about a property.  In most property searches PRICE RANGE, after general area, is the first thing that has to be keyed in, then # of bedrooms, bathrooms, etc. By creating competitive market analyses (CMA’s is the industry term) we can narrow down to a “range” in which the property should be priced, the rest is up to the seller to decide with the agent’s guidance and knowledge, all the while factoring in motivation and time frame of the seller.  The time of year is also a factor here.  Many people think waiting until the spring market is the right time to sell. That is often true, but just as often false.  The spring is when many homeowners put their houses on the market making you, the seller, a small fish in a big pond so to speak.  Buyers are now out and looking year round and if there are more houses to choose from, the sale price could be substantially lower.  When is the right time to sell? When YOU are ready.

Being ready also means being serious. If you are serious you will price your house properly.  Listen to your Realtor^® and do the recommended repairs and cosmetic upgrades; this will increase your home’s value tremendously. Conversely, you can decide to listen and not do the repairs but be realistic and understand that those repairs you choose to ignore will detract from the house’s value and you need to price with that in mind.  Overpricing an under-improved house can cost you much more in the long run than you realize. 

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CHOOSING THE RIGHT REALTOR

CHOOSING THE RIGHT REALTOR

Although this can seem like quite the daunting task, it needn’t be.  There are several factors that should be taken into consideration when choosing the right agent to represent you:

EXPERIENCE: How long has the agent been in the business? Although length in the business is a good determining factor for your choice, very often some people take to the business like ducks to water, so as long as they have several transactions under their belt, use the other factors to make a final determination.

Do they have enough experience to represent your needs? An agent should be knowledgeable of the local area and market place, recent sales, listings, and activity in the area are of paramount importance.

AGENCY: When listing a house for sale, generally a larger agency with good market share is the way to go. However, some people do, indeed, prefer smaller agencies for what is perceived as a more personal touch.  The bottom line is getting the property sold; the more exposure the better.  In this day and age of instant information and communication, however, making sure your agency is a member of the local multiple listing service is the place to start, though most are. A lot of your choice will depend on personal preference.

ATTITUDE/DEMEANOR:  Let’s face it, whether listing or buying real estate, you and your agent are going to have LOTS of interaction! Make sure you can, at the very least, tolerate their personality and demeanor. A “take no hostages” approach to all negotiations, delivered however, in a velvet glove is a good trait for an agent to exhibit. A sense of humor, PARTICULARLY if you are house hunting (you’re going to be spending lots of time together in cars, alone, trapped!) is also a good trait. For all intents and purposes, you’re going to be “married” to your agent until the transaction closes! Then after that, friends!

These are just some guidelines to think about when choosing.  Not unlike finding the right house, when you find the right agent, YOU’LL KNOW IT! Interview agents until the right one comes along; a primary home is generally the largest single investment anyone has or acquires and it’s sale or purchase needs to be taken seriously and put in the hands of someone you can trust! “WOULD YOU BUY A HOUSE FROM THIS PERSON?”

How Do I Get My House Ready For Sale?

This is a question I don’t hear enough! Where do I start? Well, let’s start with the first thing a potential buyer sees: the outside.

THE OUTSIDE: From the street, your house should look like something you might see on the cover of HOUSE BEAUTIFUL. A neatly manicured lawn is usually the first thing a buyer notices. MOW MOW MOW! Secondly, any flower beds or shrubbery should be clean, mulched (weather permitting,) trimmed, and flowering. Next, does your house look like it needs a painting? A freshly painted house adds thousands to your “saleability" profile. Yes, it also costs thousands to do it of course, but well worth the effort. Shutters should be well mounted, level, and freshly painted as well.  Go across the street from your house and keep your back to it, turn around with a fresh perspective…what do YOU see? The front door, entry, portico (whatever you want to call it) should be pristine! Swept, painted, cleaned, shined, etc., these are all of paramount importance as well; after all, this is where buyers usually spend their first few minutes looking around. The “curb appeal” of your home should be something that YOU would buy, not just live in! You only have one chance to make a great first impression.

THE INSIDE: I have been through thousands of houses over the decades and cannot begin to tell you how many times the first thing a buyer does when walking into a new house is look up.  What are they looking for? Generally they’re looking for leaks and cracks. As with the outside, I highly suggest a fresh painting on the inside as well.  This removes any blemishes or fading the years have added as well as just adding brightness and freshness to what otherwise might be a tired house. Additionally, the sanding and spot spackling will eliminate settling cracks and stains from old leaks. That accent wall you painted with the contrasting color is probably beautiful, but does it make the room look smaller? 

Leaky faucets, tubs, showers, pipes, and radiators should all be repaired and receipts kept handy. Properly repaired leaks should be able to be easily documented in the event an inspector or buyer notices some old damage.  Never try and hide defects to the house as inevitably they will be noticed and can be more costly in the long run to repair and document than just doing it properly in the first place.

Knickknacks should be thinned out and pictures should be in groups of 3 or 5.  Remember, you’re selling a home but a potential buyer is buying a house.  Your memories are wonderful and should be treasured, but too much personal memorabilia around will distract a buyer from seeing the house because they’ll be focused in on your personal stuff. Cull the herd!

Clean out the closets! If you haven’t worn it or haven’t been able to get it above the thighs for over 6 months, weather permitting, donate it! Neat and orderly closets not only show better and allow someone to see what the closet can actually hold; it also makes a buyer feel that you have taken good care of your home. This is also a good way to be ready to pack because you will already have gotten rid of the stuff you’re not going to bring with you to your new digs!

Make the beds daily! “Do I have to?” YES! If a home has unmade beds or messy rooms, this, too, distracts a buyer from seeing the house; all that the potential buyer will be able to focus on is the messiness. Clear and clean bureau tops, nightstands, and other furniture as this will allow a buyer to focus, again, on the house, not its contents or mess.

Empty the garage and the basement!  Standard rule of thumb is, as above, if you haven’t used it in six months or longer and it holds minimal sentimental value, toss it! If you have a great deal of memories you would like to save, please pack it in boxes and stack it neatly in a corner or against a wall. If it becomes overpowering to the room, consider renting a small self storage unit until the house sells. LESS IS MORE! A fresh coat of paint in the basement (and the floors) will do a world of good and brighten up what is normally a dingy place to be making it seem like useable space. Get out the Electrolux and vacuum up all those pesky cobwebs that have accumulated in between the ceiling beams, floor joists, and corners.

Make sure there are no bulbs burned out anywhere and that lamps are functioning properly.  Imagine if you were looking at a house and went to turn on a lamp and the bulb blew out or there was a spark on the wall switch! Go through your house with an objective eye, or have someone else do it (your Realtor is an ideal choice) and don’t take anything personal! Remember, you’re selling a home but the buyer is buying a house, pack up your memories, gently and lovingly, and take them with you, let the buyers make new memories. For more staging tips, call Jay 914.729.4700 for a no cost, no obligation, no hassle evaluation of your home.

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