Thursday, August 27, 2015

90 Ways to Sell Your Home Faster and for More Money!

The following pages will guide you step by step through the process of preparing your home for sale to achieve the highest possible sale price in the least amount of time.


Repairs

1. The rule of thumb is, if something needs repair, fix it! There are probably many things in your home that you have simply become used to over time . . . things that you have been promising yourself that you will attend to. 


Well, now is the time. The buyer will mentally add up the cost of repairing all those minor flaws and end up with an amount that is generally much higher than what it would cost you to do the repairs.

You might be saying to yourself, “These repairs aren’t any big deal.” But the buyer is thinking, “If the owners didn’t care for these little items, then what about the roof and the furnace?” Needed small repairs and perceived owner neglect will either lower the purchase price or lengthen the time required to sell.

2. Check all walls for peeling paint and loose wall paper.

3. Large repairs: In today’s climate of open disclosure and vigilant professional home inspections, the rule is “Treat a buyer as you would yourself.” Repair any problems with major systems or offer an allowance for the buyer to make repairs after closing. Always disclose anything that you know about the property. Having been a consumer yourself, you know that buyers will more readily make a purchase decision with someone whom they can trust.

Cleaning

4. Every area of the home must sparkle and shine! Each hour spent will be well worth it. Would you rather buy a clean car, or a dirty one? Would you hurry to buy a pair of shoes with mud on them?

5. Clean all windows, inside and out. This helps make the house sparkle.

6. Clean all wall-to-wall carpeting and area rugs. Clean and polish linoleum, tile and

wooden floors.

7. Clean and polish all woodwork if necessary. Pay particular attention to the kitchen and bath cabinets.

8. Clean and polish all light fixtures.

Neutralizing

9. Be cautious about selecting colors when painting or replacing carpeting. Your objective here is to make your home appeal to the largest possible buying segment. Ask yourself, “How many of the available buyers would be able to move into your house with their furniture and not have to replace the carpeting?” Position your home on the market to be as livable to as many people as possible, and allow the buyer to mentally picture the home as theirs.

10. Forget your personal taste . . . the “market” is always demand driven! The average buyer will have a hard time looking beyond blue carpeting and bold wallpaper. Consider replacing unusual or bold colors with neutral tones. Two coats of white paint may be the best investment you ever made.

Space Management

This involves creating the illusion of more space.

11. Arrange furniture to give the rooms as spacious a feeling as possible. Consider removing furniture from rooms that are crowded. If necessary, store large items.

12. Pack up collectibles . . . both to protect them, and to give the room a more spacious feel. Leave just enough accessories to give the home a personal touch. Dispose of unneeded items.

13. Remove all clutter and make it a habit to pick up clothing, shoes, and personal possessions each day for possible showings.

14. Empty closets of off-season clothing and pack for the move. Organize them to demonstrate the most efficient use of space. Leave as few items on the floor or shelves as possible.

15. Use light to create a sense of space. All drapes should be open. Turn on all of the lights throughout the home before a showing, and be sure to replace any burned out light bulbs.

Atmosphere

When placing yourself in the potential buyer’s shoes, you will want to consider the overall atmosphere of your home. Keep in mind your sense of smell as you go through the check list. Create the atmosphere of your home as a shelter, a place that is safe and warm, and in good condition.

16. A clean smelling house creates a positive image in the buyer’s mind. Be aware of any odors from cooking, cigarettes, pets, etc., that may have adverse effects on potential buyers. Remember that some people are much more sensitive to odors than others. Smokers rarely notice the odor of tobacco that fills their homes, and pet owners may be oblivious to objectionable doggy odor.

17. You can use products like carpet deodorizers, air fresheners, and room deodorizers; but the best strategy is to remove the source of the smell rather than cover it up.

18. Unfortunately, often the only way to remove the smell of pet urine from flooring is to rip up the carpeting and padding and replace them. If this is preventing the sale of your home, don’t hesitate to make this investment.

19. If smoking and cooking odors have permeated your home, have your carpets and furniture cleaned, and air out or dry-clean your drapes.

20. Mildew odors are another no-no. Don’t allow wet towels to accumulate in hampers or dirty laundry to pile up in closets.

21. Once offensive odors are removed, consider adding delightful ones. Recent studies have shown that humans have strong, positive responses to certain smells. Cinnamon, fresh flowers, breads baking in the oven are all excellent ways to enhance your property for sale.

Staging

This part of preparing your home for sale is the most fun and involves the use of color, lighting, and accessories to emphasize the best features of your home.

22. Study magazine ads or furniture showrooms to see how small details can make rooms more attractive and appealing. The effect of a vase of flowers, an open book on the coffee table, a basket of birch logs by the fireplace, etc., can make the difference in a room.

23. The use of a brightly colored pillow in a wing chair or a throw blanket on a couch can add dimension to a sterile room.

24. Soften potentially offending views, but always let light into your rooms. Replace heavy curtains with sheer white panels. Never apologize for things you cannot change. The buyer will either decide to accept or reject the property regardless of the words you say. Just present the home in the best way possible with complete honesty.

25. Go through your photo albums and select pictures of your house and yard during all seasons. If hung at eye level in a well-lighted area, the pictures will speak for themselves and give you yet another selling edge.

26. Take advantage of natural light as much as possible by cleaning windows, opening shades and drapes, etc. Add lamps and lighting where necessary. Be sure that all fixtures are clean and have functioning bulbs.

The Exterior: Check your home for any needed maintenance just as a buyer would. Repaint or touch up as necessary. You can’t make a better investment when you are selling your house! Don’t let the outside turn buyers off before the inside turns them on.

27. Color has the power to attract. A tub of geraniums, a pot of petunias, or a basket of impatiens on the front steps is a welcoming touch.

28. If you are selling during the winter months, consider using a wreath of dried flowers on the front door.

29. If you have a porch or deck, set the stage with pots of flowers and attractively arranged furniture.

30. Check to see that all doors and windows are in good working order. Give special attention to your home’s exterior doors and front entry. Clean and paint doors if necessary. Remember, first impressions are likely to color the remainder of the house tour.

31. Wash all windows and replace any broken or cracked window panes.

32. Screens should be free of any tears or holes.

33. Inspect all locks to ensure that they are functioning properly

34. Check for loose or missing shingles.

35. Invest in a new doormat that says “Welcome.”

The Yard

36. Make sure the yard is neatly mowed, raked and edged.

37. Prune and shape shrubbery and trees to compliment your house.

38. Consider adding seasonal flowers along the walks or in the planting areas. Plop the plants into a well-placed wheelbarrow, an old-fashioned washtub, or what have you. Such standbys as nasturtiums, petunias, impatiens, and verbena are easy to maintain if you only remember to water them regularly. Try a row of sweet smelling alyssum to line a short sidewalk or pop in some perky dwarf marigolds to form a cheerful oasis of color in your yard.

39. It is important to devote at least one area of your yard to outdoor living. Buyers will still recognize a scene set with picnic table and chairs and respond positively to it. Cover your picnic table with a fringed, red-and-white checked cloth, set out some plastic plates and glasses, bring out the barbecuing equipment, and buyers will almost smell the hot dogs cooking!

The Driveway

40. The driveway is no place for children’s toys. Not only are such things dangerous, but the clutter is unsightly.

41. The surface of your driveway should be beyond reproach; after all, it’s one of the first things a buyer will see when he drives up. Sweep and wash the driveway and walks to remove debris, dirt and stains. Repair and patch any cracks, edge the sides and pull up any weeds.

Room-by-Room Analysis

The Front Entry: Whether a gracious proportioned center-hall or a small space just large enough for a coat rack and a tiny table, this part of your home deserves your particular attention.

42. Study your entry hall and ask yourself what kind of impression it makes of your home. Dried flowers or a small plant can make a striking focal point on a hall table any time of the year.

43. Virtually any entry hall will benefit from a well-placed mirror to enlarge the area.

44. Your entry hall’s flooring will be observed carefully by the prospective buyer. Make sure the surface is spotless and add a small rug to protect the area during showings.

45. The entry hall closet is the first one inspected. Make it appear roomy. Add a few extra hangers. Hang a bag of cedar chips or a pomander ball to give a pleasant, fresh scent. Remove all off-season clothing.

Living Areas: Think of these areas as if they were furniture showrooms. Your job is to make each room generate a positive response. Add touches that make a room look truly inviting.

46. Sweep and clean the fireplace. Place a few logs on the grate to create an attractive appearance. You are welcome to have a fire going for showings during the winter months. . . it creates a great atmosphere.

47. Place something colorful on the mantel, but don’t make it look like

48. Improve the traffic flow by removing excess furniture. Have easy traffic flow patterns. Be sure that all doors open fully and easily.

49. Draw attention to exposed beams or a cathedral ceiling with special lighting. Be sure to remove any cobwebs and dust.

50. Remove oversized television sets if they dominate the room. If necessary, substitute with a smaller one until you move.

The Dining Room: Avoid going overboard. To be effective, any stage setting that you create should reflect the character of your entire home appropriately.

51. Set the scene by setting the table with an attractive arrangement. Add fresh or silk flowers as a centerpiece.

52. Visually enlarge a small dining area. If your dining table has extra leaves, take one or two out. Consider placing your dining table against the wall. Remove any extra “company” chairs. Consider putting oversized pieces in storage until your house is sold.

The Kitchen: Pay particular attention to your kitchen. This room continues to be the “heart of the home.” A pleasant, working kitchen is near the top of most buyers’ list of priorities and is a room that buyers always scrutinize closely.

53. Avoid clutter! Clean counters of small appliances and store whenever possible to maximize the appearance of work space.

54. Check the counter top around your sink, and remove any detergent or cleanser, etc., that may be cluttering the area.

55. Sinks, cabinets, and counter tops should be clean and fresh.

56. All appliances should be absolutely clean, bright, sparkling and shiny!

57. Clean off the top of the refrigerator! If you must use that space for storage, use baskets and bowls to camouflage the items kept there.

58. Set the scene with an open cookbook, a basket filled with fruit, a basket of silk flowers, or a ceramic mixing bowl and wire whisk.

59. Create the aromas associated with happy homes! Bake some cookies from premixed, refrigerated cookie dough, start baking a loaf of refrigerated bread dough, or pop a frozen apple pie in the oven.

60. In the heat of summer, place a bowl of lemons or limes on the counter to provide a fresh and pleasant aroma.

61. Clean and organize all storage space. lf your cabinets, drawers, and closets are crowded and overflowing, buyers assume that your storage space is inadequate. Give away items you don’t use, storing seldom-used items elsewhere, and reorganize the shelves. Neat, organized shelves and drawers look larger and more adequate for prospective buyer’s needs.

62. Large, cheerful kitchen windows are an advantage and should be highlighted as a special feature of your home. Take a critical look at the window treatment . . . is it clean, sharp and up-to-date? Do the curtains need washing or the blinds need cleaning? Would the window area look better without any window treatment?

63. If you have a counter top eating area, set two attractive place settings with coordinating napkins and placemats, and place cushions on the stools.

64. Set the table for an informal meal with bright placemats and a generous bowl of fruit as a centerpiece.

Laundry Room: A separate laundry room is a true asset and is one of the most frequent requests that buyers make during a home search. Don’t hide this treasure behind closed doors. Spruce up the room and open the door proudly for inspection.

65. Add a fresh coat of paint or put up a cheerful wallpaper.

66. Organize all closets and storage space.

67. Remove all dirty laundry. Keep current with your laundry or store all dirty laundry in a closed container (maybe even hermetically sealed and welded shut).

68. Clean and polish the washer and dryer.

69. Consider adding an attractive, coordinated throw rug.

Stairways: Stairways should provide an attractive transition from one level of your home to another.

70. Make certain the stairs are safe! Stair lighting should be more than adequate, stairs must be clutter free, stair railings tight and secure, and runners or carpeting tacked securely. Remove any items from the surface of the stairs and store elsewhere. Check the condition of the walls, and paint or re-wallpaper if necessary.

71. If the stairs are a focal point of the main living areas, carefully choose accents to improve the visual appeal. If you have a wide, gracious staircase, emphasize this feature by hanging a few pictures along the wall. Draw attention to a handsome lighting fixture by polishing the brass and dusting each small light bulb or crystal prism.

Bedrooms: Imagine for a moment that you’re in the “bed-and-breakfast” business. How would you change your home’s bedrooms to appeal to a paying lodger? Naturally, you’d make up the beds with your prettiest sheets and comforters. Maybe you’d add a vase of flowers on the dressing table or a cozy armchair in the corner. Every bedroom in your home should invite prospective buyers to settle right in.

72. Large master bedrooms are particularly popular among today’s home buyers. Make your bedroom larger. Paint the room a light color, remove one of the bureaus if the room is crowded, and minimize clutter to maximize spaciousness. Aim for a restful, subdued look.

73. A private bathroom off the master bedroom is a real sales plus. Decorate to coordinate with the color scheme of your bedroom, creating the “suite” effect.

74. Virtually all buyers are looking for a house with plenty of closet space. Try to make what you have appear generous and well planned. Remove and store all out of season clothing. Remove any items from the floor area. This will make a closet seem more spacious. Arrange all shelves to maximize the use of space.

75. Make sure all articles in the closet are fresh and clean smelling. When prospective buyers open your closet door, they should be greeted with a whiff of fresh smelling air.

76. Make sure all closet lights have adequate wattage and are operating. Add battery operated lights to those closets that lack them. Lighted closets look bigger, are more attractive, and allow buyers to inspect the interiors easily.

77. Take the time to explain the importance of marketing to your children. Encourage them to participate in preparing your home for showing, particularly the principle of appealing to the widest possible market segment. Ask your children’s cooperation in making their beds and picking up their rooms prior to showings. Consider promising a special reward if they willingly participate in your house selling goals.

78. Have them pack up any items that are not currently in use and dispose of unused possessions.

79. Remove any crowded, unusual, or personal wall hangings such as posters and store them until your home is sold.

Bathrooms: Wise sellers take special pains with preparing their bathrooms for scrutiny by strangers. The bathroom is a room after all, and a very personal one. Prospects will inspect yours carefully, so be sure it is immaculate. Cleanliness is the key! Make sure that all surfaces are spotless.

80. Replace worn or dirty shower curtains, clean and repair caulking, and remove non-skid bath decals that are in poor condition.

81. Clear off countertops and store all personal care products out of sight.

82. Repair any faucets that leak or do not function properly. Clean off mineral deposits with vinegar or commercial products.

83. Clean and organize all cabinets and drawers. Don’t forget the medicine cabinet: dispose of old prescriptions, and polish the shelves. The same goes for the storage cabinet under the sink.

84. Remember to appeal to a wide range of buyers. Play down dominant colors with contrasting neutral colored towels and accessories. If your bathroom is mostly white or neutral, add a few cheerful accents of color: use towels in the popular new shades. Don’t hesitate to buy a few new towels and a rug . . . you’ll be taking them with you to your new home.

85. Scrub and wax an old floor. Cover the largest area you can with a freshly washed scatter rug.

86. Decorate and personalize to create a pleasing, individual look. Consider bringing out your best towels and perfumed guest soaps. Add a plant for color and freshness.

87. A gentle hint of fragrance in the air is fine, but keep it subtle.

Garage

88. Sweep and wash the floor to remove dirt and stains. Organize tools, garden equipment, bicycles, etc. A clean, organized garage appears larger.

89. If the area is dark, add more light. If it is small and accommodates only one car, remove your car before buyers visit. An empty garage always looks larger. If you have a two car garage with very little extra room, remove one of your cars so that buyers can make their inspection in comfort.

90. Get rid of anything that you don’t plan to move to your new home. Place remaining stored material neatly in boxes, and position away from walls.



Thursday, August 13, 2015

The Renovations That Up Your Home's Value (and the Ones That Don't)

Is digging up the backyard to put in a pool worth it? What about upgrading a tired-looking kitchen with gleaming marble countertops? And what about installing high-tech speakers—throughout the house? If you’re planning to renovate your home, you may already be asking yourself these questions. But when it comes to increasing your home’s appraisal value, the answer to them isn’t always a resounding yes.
To help ensure that your reno dollars are well spent, the team at LearnVest asked real estate experts across the country to weigh in on the top five home improvement dos that can boost resale value—and five don'ts that just aren't worth the extra expense.

Reno Do #1: Upgrade Your Kitchen

All of our experts agree that a kitchen renovation should be at the top of your list, since it's the heart of a home—the room where families spend most of their time. But where to start? A couple of givens include upgrading to stainless steel appliances and installing countertops made from engineered stone or granite, because these fairly easy changes will improve the aesthetic appeal of the space. Details can also make a difference, like putting shiny knobs on cabinets and purchasing a sparkling new faucet for the sink.
Another wise kitchen upgrade? Knocking down a full or half wall, so you can connect the kitchen to a den or living room. “It makes the kitchen feel more spacious," says Phyllis Rockower, owner of the Real Estate Investors Club of Los Angeles in California. "If you’re cooking, you can still hear what people are saying during a party, or keep an eye on your kids while they’re playing.”

Reno Do #2: Revamp Your Bathroom

The Renovations That Up Your Home's Value (and the Ones That Don't)
A toilet that looks old, cracked or dirty (or doesn’t flush properly) is a turn-off—and the same goes for a vanity, which should be eye-catching and practical. “Install a vanity that recesses into the wall, so it saves space,” advises Alen Moshkovich, a broker for Douglas Elliman in New York City.
Proper lighting can also be a great value booster, such as adding a window in the bathroom, so natural light can illuminate the space. There's one other more simple fix that homeowners tend to overlook: Reglazing a tub, rather than getting a new one, will save you money and upgrade the look of your bathroom.

Reno Do #3: Go Greener

“In the last four to five years, there’s been a growing demand for green housing,” says Tom Ferstl, a commercial and residential real estate appraiser at Ferstl Valuation Services in Little Rock, Arkansas. “Making your home more energy efficient is a plus—anything that helps keep heat in during the colder months and out during the warmer months will help.”
The changes can be small, such as adding storm doors or a ceiling fan in each room. Or they can be large, like double- or triple-paning your windows. Want more ideas on how to renovate your home in a green way? Check out Regreen, a site created by the American Society of Interior Designers Foundation and the U.S. Green Building Council.

Reno Do #4: Invest in a Sprinkler System

The Renovations That Up Your Home's Value (and the Ones That Don't)Many homeowners don’t want to be bothered with maintaining a stunning, landscaped garden, so planting tons of tress, bushes or flowers isn’t necessarily going to elevate your home’s value. But everyone wants green grass, so adding a sprinkler system that automatically turns on and off is a good investment, says Ferstl, because it allows a buyer to keep a lawn looking good without much work.

Reno Do #5: Install Built-In Speakers

High-tech homes stand out and will impress buyers. Your best bet is to centrally wire a sound system in your home, and put a speaker in every room, so you can control music from anywhere in the house with one remote. Rockower also suggests installing surround sound in the den or living room (basically wherever you watch TV), which makes watching movies or sporting events more exciting.

Reno Don't #1: Put in a Pool

The Renovations That Up Your Home's Value (and the Ones That Don't)You may think that a beautiful backyard pool will make buyers flock to your home, but many families don’t want to deal with the maintenance or the liability of an accidental drowning. “It’s an especially bad investment in the northeast and the northwest, where you have few hot months to actually use a pool,” says realtor Brendon DeSimone, a member of the National Association of Realtors and an expert contributor to Good Morning America and HGTV.

Reno Don't #2: Convert a Bedroom

Turning a bedroom into a room that’s specific to your interests—such as a wine cellar or a library—is a risk. Once you start embedding wine refrigerators or bookshelves and customizing the space's structure, the room becomes less valuable, because the next owner may not want to spend money renovating that room. “If you insist on doing it, at least make it easy to ‘un-do’ later when you want to sell,” says DeSimone.

Reno Don't #3: Lay Down Carpet

Don’t bother carpeting any room in the house. “Natural hardwood flooring is what everyone wants these days,” says Moshkovich. Plus, wood floors tend to be easier to clean, they don’t show as much dirt and they’re better for family members who suffer from allergies. “If you're looking to save, engineered wood is cheaper than 100% natural wood—and it still looks good,” suggests Moshkovich.

Reno Don't #4: Install Ornate Lighting

Buyers like bright lighting, but if you empty your wallet buying an over-the-top chandelier, you probably won’t get most of your money back, notes Ferstl. “Some people go all out when decorating a dining room, but the next owner may want to turn the dining room into a bedroom, so it’s often a waste," Rockower says. Her recommendation: Opt for subtle high hat or recessed lighting or get a basic chandelier or hanging fixture from Home Depot—you can find a bunch that look good for under $100.

Reno Don't #5: Redo Your Garage

The Renovations That Up Your Home's Value (and the Ones That Don't)“I’ve seen some people turn garages into family rooms or play rooms—and then have a hard time selling their house,” says DeSimone. “Most people want a garage to stay a garage.” Not only do buyers want to protect their cars from rain and snow, but they also need a place to put dirty outdoor stuff, like lawnmowers, leaf blowers, shovels and garbage cans. Bottom line: Don't go glam with your garage!



Friday, August 7, 2015

Explaining Escrow: The Escrow Process in California

What are the escrow steps? The California escrow process has 10 steps:

1. Prepare Escrow Instructions. These are done on the escrow holder’s printed forms. All principals – the buyer and seller -- sign the instructions, which set forth the parties’ understanding of the transaction. An initial deposit usually accompanies the instructions. For a home purchase, the instructions must include:

Purchase price and terms;

Agreement as to mortgages;

How buyer’s title is to appear (called “vesting”);

Matters of record subject to which buyer is to acquire title;

Inspection reports to be delivered into escrow;

Proration adjustments (involves taxes and insurance);

Date of buyer’s possession of the property;

Documents to be signed by the parties, delivered into escrow, and recorded;

Disbursements to be made, costs and charges and who pays for them; and

Date of closing.

2. Order Title SearchThis title search is performed on the subject property, resulting in a “Preliminary Report” from a title company. The escrow holder examines this report for items not contemplated in the instructions. For example, is there a lien (or additional loan) on the property that wasn’t reported? The seller must clear any such item or it must be brought to the attention of the buyer.

3. Request Demands and/or Beneficiary Statements. This request for information goes to any lenders of record. The document will be either:


a “Demand for Pay-off,” if the seller’s existing loan is to be paid in full through escrow; or

a “Beneficiary Statement,” if buyer is purchasing the property “subject to” or assuming a loan.

4. Accept Structural Pest Control Report and Other Reports. These reports might include plumbing or roofing reports. They all pertain to the property’s condition, and are kept in escrow. The escrow holder might also obtain any necessary approvals from the seller or buyer due to information in a report. For example, whether the home needs to be sprayed for insects. The reports are delivered at close of escrow.

5. Accept New Loan Instructions and Documents. This happens if the buyer is obtaining new financing for the home. The escrow holder also obtains the buyer’s approval/execution of the documents. The escrow agent must also satisfy all lender’s instructions before using the lender’s funds to complete the transaction.

6. Accept Fire Insurance Policies and Complete Settlement. By this step, it’s almost time to close the transaction. Here, following the buyer’s and seller’s instructions, the escrow holder:


accepts and delivers any fire insurance policy and transfers the insurance;

makes all payments on property taxes and insurance (called “prorations”);

completes the accounting (settlement) details; and

informs the principals that escrow is ready to proceed.

7. Request Closing Funds. The escrow holder cannot disburse any funds until all items, such as checks or drafts, have cleared and become available for withdrawal.

8. Audit File in Preparation for Closing. In this step, the escrow holder:


accounts for all funds and documents; and

determines that the parties have complied with all escrow instructions.

9. Order Recording. At this point, the escrow holder authorizes the title company to run the seller’s title and to record the necessary documents. This can happen provided no change has occurred in the seller’s title since the preliminary title report was issued.

10. Close Escrow. This is what you’ve been waiting for! Closing the deal. The escrow holder can “close escrow” after confirming recording, by:


preparing settlement statements for buyer and seller;

disbursing all funds; and

delivering documents to the party or parties involved.






Thursday, July 30, 2015

10 things that could harm your home's value

1. A pool. Forget what you might have heard. An in-ground pool in most parts of the country doesn't automatically raise the value of your home. "I would stay away from pools if you can at all avoid it," says Irwin.

Having a swimming pool will automatically limit your market when it comes time to sell, he says. "It's constant upkeep, they get cracks, the equipment goes down and it's expensive to replace, and the liability is high."
Others consider it a mixed blessing. "For the people who want the pool, they're willing to pay for it," says Austin. "But there are an awful lot of people who don't want a pool."
Consider your home value and location. In a million-dollar house, not having a pool is a detraction, says Irwin. "But they won't give you much more" if you do have one.

 2. No garage or small garage. Unless you're living in a condo, retirement community or historical or in-town neighborhood, most buyers will look for at least a two-car garage. "If you don't have a garage, it's a real negative," says Austin. "If you have a one-car garage, that's a problem, too."

3. Garbled floor plan. Small rooms and bathrooms, an inconvenient floor plan or a layout that requires you to access bedrooms or bathrooms through other rooms will detract value from your home.

4. Outmoded appliances or systems. Who wants an electrical system or plumbing system incapable of handling modern conveniences? Would you buy a home if the appliances were worn or broken?
Phipps remembers walking into one house with clients who casually opened the oven door -- and it fell off.

5. Stale or overly personal decor. Sure, red is the hot wall color right now, "but for how long?" says Hummel.
"We've gone into houses where they've had purple walls or electric green," says Austin. "It's a turn-off to many people."

 6. A bad roof. Roofs are expensive to replace and a good roof is considered standard equipment in a house. If your roof has problems, expect to take a hit in the price.

 7. Bad location. Phipps remembers one neighborhood with a significant difference in value between the even- and odd-numbered houses. The reason? The odd numbered ones backed on an interstate highway, as well as some ugly utility lines.
As a result, "the even-numbered houses were worth about 10 percent more than the odd-numbered homes," he says.

8. Poor maintenance. "If you've got an old roof and outdated paint, I don't care if you've updated the kitchen, you won't even get the buyer out of the car," says Bredemeyer.
"If you know you've got to have something fixed, fix it," says Zollinger. Otherwise, people "will subtract the cost or not make an offer on the house. And if people think the house hasn't been taken care of, they will wonder what else they're not seeing."

9. Environmental hazards. Besides being a danger to human health, lead, mold or asbestos can kill home value. 

10. A laundry list of needed improvements. "It detracts if you have to do work," says Gaylord. "A house that you can move in today -- and it's livable -- is fine."
But a list of must-dos just to conduct everyday life will scare off a lot of potential home buyers. "Especially with first-time buyers," he says. "Most of them are [already] scraping just to get in."



Monday, July 27, 2015

Staging your home for a faster sale, and higher price!

Fran Freedman took down the family photos and most of her artwork. She had the fence in the front yard ripped out, and she got rid of half the clothes in her closet. And that was just for starters. She wasn't redecorating. Rather, she was "staging" her house for a potential home buyer.
With 3.75 million homes on the market — a 7.3-month supply — sellers must work harder these days to attract buyers. Yet oddly enough, the trick to making your home stand out is often to make both the interior and exterior look generic, almost bland. And that's where home staging comes in.
"The philosophy is the buyer must be able to picture themselves living in your home," says Freedman, 65, a lawyer in Philadelphia. "They don't want to see your family photos and your artwork. The décor should be understated so they can say, 'This would be the perfect place for my...' "
Does it work? When Coldwell Banker Residential Brokerage in Los Altos, Calif., looked at nearly 2,800 properties in eight U.S. cities in 2004, they found that the staged homes, on average, sold in half the time that the non-staged homes did. The sellers with staged homes ended up with 6.3% more than their asking price, on average, while sellers with non-staged homes sold for 1.6% more than the asking price.
The cost of hiring a company to stage your home tends to range from $1,800 to $3,800 but can go much higher, depending on the size of the house and the amount of work involved.
Freedman says Tailored Transitions, the company she used, "had a hard time convincing me and my husband to spend the money. People don't spend money on this kind of thing. I'd never heard of staging."
In the end, they spent $2,500 for the interior, $4,000 for the exterior, $500 to rent "props" like less eye-catching artwork and decorative pillows and $500 to move their excess furniture and boxes into storage. In hindsight, she says, it was worth every dime.
They listed their home this month for $949,000, and Freedman says, "I don't know if we would have priced it that high when it wasn't so attractive."
Judee von Seldeneck put her staged home in Philadelphia on the market this month; it sold in one day, for $700,000.
From moving shrubs to planting flowers, to replacing the knobs on kitchen cabinets and ripping up the carpet on the stairs, every change was made to accentuate the house's best features. There were even pumpkins on the porch to lend a homey, inviting look.
Inside, the stagers "put furniture that looked comfortable but not too heavy, not cluttered," says von Seldeneck, CEO of an executive search firm, who's "in my 60s." The books on shelves, colors of the rug, the furniture — all were "geared more toward younger people."
She spent $8,000 on the job and says, "It was the best money I ever spent."

Short of hiring a company to do the work, there are some simple steps any seller can take to stage a home:
•Cleaning. The house should be Q-tip clean. Every surface should sparkle; every groove should be dirt-free. And above all, wash the windows.
•Clutter. Pack up family photos, stacks of paper, medicines on the bathroom counter, the books overflowing the bookcase. Hide trash cans, ashtrays, the laundry hamper, the kitchen sponge, the cat's litter box and food dishes.
"Clutter eats equity," says Barb Schwarz, the self-proclaimed inventor of home staging and author of Home Staging: The Winning Way to Sell Your House for More Money.
•Color. Dark walls make the house look smaller. Walls should be off-white, or have earthy tones if the room has lots of light. Ideally, the carpet would be "real estate beige." Open or take down the curtains, so the rooms will have as much light as possible. Leave on the lights in darker areas.
•Focal point. To think like a professional stager, stand at the doorway of each room. What features do you want to accentuate? Where's the focal point? (A room should have only one.) So if you have a fireplace and a big-screen TV, take out the TV. Arrange the furniture so the eye is drawn to the focal point.
•Furniture. Most rooms have too much furniture, which makes rooms look smaller. Reduce the number of pillows on the couch to zero, or have an odd number like three. Remove afghans and blankets. Reduce the number of paintings on the walls.
•Dining room. Take out the leaves from your dining table and put no more than four chairs around it. Set the table as if for a meal, and put an appealing centerpiece in the middle. Reduce the number of dishes in the china cabinet, leaving only a few.
•Kitchen. The exterior of the refrigerator should be bare. Store any appliances you don't use daily out of sight. Hide the trash can, and put the sponge and soap under the sink. You can spruce up an outdated kitchen simply by changing the knobs and hinges.
•Master bedroom. Buy a new bedspread, if necessary. Clear off bedside tables and chests of drawers. Hide the alarm clock. For the closets, pack up any clothing you're not using this season. It'll make the space look larger.
•Bathroom. Replace bar soap with liquid. Coordinate all towels using one or two colors. Fold them in thirds and hang them neatly. Clear everything out of the shower except for one bottle of liquid soap and one bottle of shampoo. Clean or replace the shower curtain. Make sure all grout is clean and in good condition. Remove all cloth toilet lid covers, and keep the lid down. Hide the trash can.
•Outside. Keep the lawn mowed and the edges neat. Trim shrubs, especially around windows. Put flowering plants near the front door. Does the house need painting? Consider painting or staining the front door; it's one of the least expensive ways to spruce up the entry. If there's furniture on the porch, make sure it isn't plastic but rather good wicker or wrought iron. Power-wash or stain the deck. Remove or hide old cans and bottles, auto parts, boats and RVs.
"When you start staging your house, emotionally, you need to say goodbye to your house," says Starr Osborne, CEO of Tailored Transitions in Philadelphia, the staging firm Freedman hired. "It's like hotel living. It's not a comfortable experience, but your home will sell more quickly and for better money."
The de-cluttering process is "one of the biggest challenges we find," she says. "Sellers feel it's an indictment of the way they live. You have to remember what you're selling. You're not selling your taste; you're selling tastes the buyer wants to see."
Freedman recalls it was "kind of traumatic" when all her family photos were packed away. Another tough moment was when she stood in front of her closet, wondering what she could throw out.
But in the end, Freedman says, the process was "cathartic." "It made us realize we had too much," she says. "When we move, we won't use it all."




Tuesday, July 21, 2015

Marketing lingo to avoid when selling your home

Q: What are some words to avoid using when selling a home?

A: As a general rule, you should get as much descriptive power out of every single character space available to you, as online listings in particular put a tight lid on how many words you can use. The goal is to use words that go a very long way in terms of describing the home in a way that entices buyers to go see it.

So, when understanding the words not to use, one approach is to do the opposite: Eliminate the fluffery. Buyers see textual fluff and ignore it, in the best-case scenario, or become suspicious of it, in the worst case. 

In a market like today's, where buyers' standards have been boosted by the lovely homes they see on television and in magazines, and where many listing agents have gotten the art of listing a home down to a science, having your home's description or listing ignored is a surefire way to end up with it lagging on the market far longer than it has to.

1. Don't use: fluffery. When listing a home, be specific, list brand-names of upscale appliances and decor brands that describe the aesthetic style of the home, as well as the details of desirable finishes like polished cement, granite, and stainless steel.

Based on that recommendation, it's no surprise that when Steven Levitt and Stephen Dubner looked into it for their 2009 book "Freakonomics" they found that the five home-listing terms that correlated to a lower sales price were very general terms, i.e., terms that just express a pleasantry but are devoid of any significantly useful information to a buyer:

Five terms correlated to a lower sales price:

•Fantastic

•Spacious

•!

•Charming

•Great neighborhood

You see, buyers don't just skim over these terms. They wonder what's wrong with the place that the agent would have nothing more substantial to say about it, and they compare it to the hundreds of other competitive homes whose agents do say more substantial and compelling things in their descriptions. Guess which ones they go see.

2. Don't use: obfuscation. Here's another thing about buyers: In this day and age, they have finely tuned fraud detectors. So don't even waste your time or your character counts on words that are classic cover-ups for property weaknesses. 

Describing your home as "cozy" or in an "up-and-coming" neighborhood has virtually the same impact as describing it as really small or as being located in a rough part of town. Get specific about describing the strong suits of your property, rather than wasting time trying to trick buyers into believing some strained characterization of its weaknesses. 

And, in fact, the same goes for listing photos, neighborhood names and others: Don't lie and don't stretch the truth -- or the pictures. 

Though it seems obvious, one of the most frequent sources of buyer outrage is photos that have clearly been manipulated and stretched beyond all reason, and homes where the desirable neighborhood named in the listing turns out to be 10 blocks over and a mile to the left. The fact is, buyers will see the truth when they see the property. And some buyers who have been just as interested in the property without the embellishment will be turned off by what they see as fraud or fiction in the listing.

3. Don't use: descriptors that run counter to the listing photos. If half of your home's listing description is a rhapsodic depiction of your backyard, in which you have painstakingly replicated every specimen contained in the U.S. Botanic Garden, make sure you have images of the backyard in your listing. If you describe a gourmet chef's kitchen with custom pot rack and a Viking range, show pictures of it, too. 
Buyers and their brokers get extremely suspicious when listings don't show any pictures to back up the claims made therein, or when the images that are included don't look anything like the home described. Don't trigger their fraud detectors in this way, either; make sure your marketing copy lines right up with the pictures that your listing agent includes in your home's online listing.