8 Signs a Home Buyer Isn’t Serious

If all those excited home buyer declarations like “This place is just perfect for us” and “I have to have it!” were binding, selling houses would be a breeze. But, as with everything in life, it’s not what people say, it’s what they do that really matters.

Still, it’s hard for home sellers to not get their hopes up when a buyer’s gushing over their home—only to be disappointed when the buyer disappears without a peep.

So what are some signs a buyer isn’t serious about your home?

It’s a good thing experienced REALTORS® can tell the difference between the buyer who means business and the one who has no intention of actually sealing the deal—and that these pros graciously agreed to clue us in.

Do any of the following red flags sound familiar? Keep each in mind, and you can save yourself the drama of dashed hopes.

Sign No. 1: The buyer is flying solo

If a buyer doesn’t have a real estate agent yet, he probably isn’t serious about shopping for a home.

“Buyer’s agents come at no cost to the buyer, since the seller pays the buyer’s agent’s commission,” explains Daniel Bortz, a REALTOR® in Maryland, Virginia, and Washington, DC. Do you think a shopper who can’t be bothered to enlist free expert help is motivated enough to start putting papers in motion? We don’t think so either.

To put things in perspective, consider this: 87% of buyers recently purchased their home through a real estate agent or broker, according to a survey conducted last year by the NATIONAL ASSOCIATION OF REALTORS® of recent home buyers and sellers. You do the math!

Sign No. 2: The buyer just began shopping

The old adage that timing is everything applies to selling homes as well. Typical home buyers take three months to buy, so if a seller is entertaining interest from someone on Day 1 or Week 1 of her house hunt, chances aren’t good that she’s the one.

“Many buyers look at a number of houses before they decide what they want,” says Bortz. “And if they’re at the early stages in their search, you’re less likely to receive an offer.”

Sign No. 3: You meet the buyer at an open house

It’s also less likely that a seller will score an offer from a buyer at an open house. According to a report from the NAR, only half of home buyers visit open houses—and those who do may be trying to avoid too much attention by hiding in the herd.

Serious buyers, on the other hand, will conduct their home search online, then once they spot a home they like, request a private showing.

It’s like dating: Asking to see a home one on one carries more weight than asking someone, “Hey, wanna hang out in a group?”

Sign No. 4: No pre-approval from a lender

There’s no need to read between the lines of this sign.

“You need to include a pre-approval letter from your lender when you submit an offer on a property,” says Bortz. “Without one, there’s no indication to the seller that you can actually afford to purchase the home.”

Sign No. 5: A speedy visit Buyers who zip along while they’re checking out the property aren’t likely to cross the finish line with you.

“Rushing through an open house is a definite sign of lack of interest,” says Abigail Harris, a sales associate with Coldwell Banker residential brokerage in the Boston area. Breezing through without asking questions, however, isn’t necessarily a bad sign, she adds. “Many buyers feel that they have all the answers and don’t need to ask questions.”

Sign No. 6: All promises, no action

Call it a bait and … stall. “You can tell that a buyer is dragging her feet if she says she’s very interested in making an offer but it is taking days for her to actually submit one,” says Bortz, who has encountered this phenomenon a number of times. “Typically such buyers are seriously interested, but they’re also strongly considering making an offer on another property, so they might be weighing their options before they make an offer on one of them.”

Sign No. 7: A (really) lowball offer

Everyone wants to score a deal, but if a buyer offers an “unreasonably low” sum, says Harris, that’s a “sure sign that they don’t really want the property.”

“Serious buyers in today’s market make their best offer right out of the gate,” explains Bortz. “So I’m honestly not sure why someone would throw out a ridiculously lowball offer. Maybe [it’s] just to test the waters?”

Sign No. 8: Lots of nitpicking

Even after the buyer has made an offer and you have accepted it, she still might not be 100% onboard with buying the property. Is she obsessed with finding faults and problems in the home?

“That’s a definite showing of disinterest,” says Harris. Bortz agrees, adding, “If she has a home inspection contingency and wants you to fix every single little thing that the inspector spots, such as a loose door knob, she might be looking for you to just give in and say, ‘No, I’m not fixing anything,’ so that she can back out of the deal.”

Millennial Markets

How Many of These 7 Real Estate Facts Did You Already Know?

There’s a ton of real estate intel on the interwebs. (Why, you’re looking at some of it right now!) But even if you consider yourself the most research-savvy digital consumer of all time, you may not know everything you need to in order to make the wisest decisions when negotiating a real estate transaction.

Maybe you’re already familiar with real estate terms like “escrow” and “easement.” But we’re not just talking about a few words that test your real estate vocabulary. We’re talking about processing the bazillions of details you’ll deal with to buy or sell a home.

Here’s a quick list of things you may not already know that could put, or keep, money in your wallet while you’re in the real estate game.

1. Home Ownership is an Important Way to Build Wealth

Home ownership isn’t for everybody. But those who step onto the home ownership ladder steadily build wealth over their lifetime. A typical homeowner’s net worth was $195,400, while that of the typical renter was $5,400, according to 2013 data from the Federal Reserve, the most recent available. New data is expected in 2016, and Lawrence Yun, chief economist of the NATIONAL ASSOCIATION OF REALTORS® (NAR), predicts it will show $225,000 to $230,000 in median net worth for homeowners and around $5,000 for renters.

2. Owning Real Estate Can Save You Hundreds in Taxes

If sending a chunk of your hard-earned money to Uncle Sam or your local government makes you nuts, real estate is for you. When you own, you may be eligible for a slew of real estate tax deductions and credits, including state and local income and property taxes, and mortgage interest and mortgage insurance payments. At the average tax rate, real estate deductions helped taxpayers save roughly $100 billion in 2015, according to an analysis by NAR.

3. Buyers Who Tapped Expert Real Estate Advice Were Glad They Did

When buyers who’ve recently worked with a real estate agent were asked why they teamed up with one, more than half said it was an important step in finding the right home, according to NAR’s “2015 Profile of Home Buyers and Sellers.” Nearly four out of five consumers, 78%, say their agent was a very useful source of information.

4. Sellers Were Just as Happy They Worked with a Real Estate Pro

Your fellow consumers wholeheartedly believe it’s important to work with an agent when selling. Nearly nine out of 10 sellers, or 89%, did just that. They also reported a median gain on the sale of their home of $40,000 more than they paid for it, according to NAR’s “2015 Profile of Home Buyers and Sellers.”

5. Sellers Who Spruce Up and Declutter Their Home Draw More Interest

Staging a home makes a big difference in buyers’ ability to see its potential. Four out of five real estate agents who work exclusively with buyers say staging makes it easier for buyers to visualize themselves living in the staged home, according to NAR’s “2015 Profile of Home Staging." Nearly half say staging will increase a home's market value, and just under one-third say buyers are more willing to overlook a property’s faults when staging highlights its best features.

6. Sell-It-Yourselfers Are a Dwindling Crowd

The number of sellers who sold their home without a real estate pro has dropped to 8%, according to the buyer and seller study — the lowest share since this stat was first tracked in 1981.

7. Sellers Who Go It Alone Leave Money on the Table

The median price of homes sold without the expertise of a real estate agent was $210,000 in 2015. That’s $35,000 less than the median price of homes sold by sellers who worked with an agent, or $245,000, according to the buyer and seller study.

Common Home Buyer Experiences

Sell Your Home For Top Dollar: Insider Staging Tips

Staging your house can make you money. Seventy-one percent of sellers’ agents believe a well-staged environment increases the dollar value buyers are willing to offer, according to the NATIONAL ASSOCIATION OF REALTORS® “2015 Profile of Home Staging.”

Just take this real world tale of two condo listings from Terrylynn Fisher, a REALTOR® with Dudum Real Estate Group in Walnut Creek, Calif., who also stages:

Both units were in the same complex. One hadn’t been staged or updated since it was built; the other was staged and had been slightly refreshed (a little paint here and there and one redone bath). Otherwise, both units were the same size and layout. The staged condo sold for about $30,000 more than the unstaged unit, she says. “People couldn’t believe it was the same model.”

Before your eyes turn into dollar signs, keep in mind staging isn’t guaranteed to get you more money. But it’s an important marketing tool to help you compete at the right price, which means you can sell faster. (A study from the Real Estate Staging Association bears this out.)

Helping buyers fall in love with your property takes more than running the vacuum and fluffing the pillows: It’s all about decluttering, repairing, updating, and depersonalizing, say REALTORS® and stagers.

With help from Fisher and other sources, we’ve compiled the ultimate home staging checklist.

Living Room

• When placing anything from accent pillows and table lamps, go for symmetry, which is pleasing to the eye.
• Light it up with lamps. Chic lamps provide both added lighting and appealing decor.
• Make that fireplace glow. Scrub away soot stains and replace the old screen.
• If you’re using staging furniture or buying slip covers, choose light colors for an airy, inviting feel.
• Whatever amount of furniture you have in your living room, remove a few pieces to make the room feel spacious.
• Use bright, coordinated accessories like accent pillows and throw blankets for a chic splash of color.
• Help buyers imagine their life in your home. Set the scene by displaying a board game or tea service on the coffee table, and arrange furniture in conversational groups.
• Let a slideshow of beautiful images play on your television like a screensaver.

Kitchen

• Clear everything from countertops except one or two decorative items, like a vase of flowers or bowl of fresh fruit.
• Pack up all the dishes except one attractive, matching set. Do the same with glassware, flatware, and cookware, and pare down all other cupboard and drawer items down to the minimum.
• Freshen up and modernize those cabinets with a fresh coat of paint or stain and new hardware.
• Seriously evaluate your appliances. Can they look new again with a good scrubbing? Give it the old college try or consider replacing with new models. The Real Estate Staging Association strongly recommends stainless steel. Tip: You can get the look of stainless for the cost of a cheap dinner with stainless films.
• Remove those fridge magnets and give the door and handles a good cleaning.
• Scrub dirt, grime, and stains from walls, cabinets, and backsplashes.
• Clean cabinet interiors, especially under the sink.
• Clean and organize the pantry, leaving some empty space to make it look bigger. Store items in decorative baskets and display a few jars of fancy jam and other upscale condiments.
• Empty all trash cans and move them out of sight.

Bedrooms

• Go gender neutral in the master bedroom. Ditch those dainty, floral pillow shams or NASCAR posters.
• Pack up all but the clothes you’re wearing this season to make your closets look larger.
• Swap out the motley crew of mismatched hangers in your closet for a set of wooden ones to create a classy, boutique look.
• Put jewelry and other valuables in a safe spot.
• Consider giving extra bedrooms a new identity as a home office, sewing room, or another interesting function.
• Remove televisions or video game consoles from bedrooms to depersonalize and create a serene setting.

Dining Room

• Let buyers entertain the idea of entertaining. Set out some chic place settings around the table, or a few wine glasses and a decanter on the buffet.
• Strike a balance between overly formal and too casual with an attractive runner and a few fun, decorative elements — think small floral vases or short candle holders.

Bathroom

• It’s de-grime time: Scrub and sanitize the walls, floor, shower door — virtually every surface that comes in contact with steam.
• Spend extra time scrubbing that tile grout and re-caulk around the tub if necessary.
• If your bathroom tile is dated, try paint instead of replacing it. Start with a high-adhesion primer and either epoxy or latex paint.
• Remove clutter from the countertop, tub, and top of toilet. Clean surfaces until they gleam.
• Pack up and hide all your personal products — from medicine to razors.
• Create a luxury spa look with a fancy soap dispenser, fluffy white towels, decorative baskets, candles, plants, a white shower curtain, and a new bath mat.
• Fix leaky or running toilets and replace toilet seats.
• Remove hard water stains on faucets and shower heads. (Try vinegar!)
• Take a daring sniff of the drains. Odorous? Clean them out, and deodorize with baking soda, boiling water, or vinegar.
• Time for a new sink anyway? Try a pedestal sink to optimize precious bathroom space.

Walls, Windows & More

• Have a dark corner or hallway? Brighten it up with a decorative mirror.
• Neutralize the walls. If any rooms are painted in dark colors, repaint white or beige.
• Paint adjacent rooms the same color to make the whole space feel larger.
• Fill nicks and holes in walls, and touch up with paint.
• Sorry, wood paneling. It’s time. Paint over paneling with a neutral color. To really cover your tracks, use wood filler between panels and paint over the entire thing.
• Make sure every switch plate and outlet cover matches and looks brand new.
• Wash the windows, inside and out. Repair any holes or tears in screens.
• Replace those family portraits with interesting art placed strategically throughout the house. Avoid leaving dead space on walls.

Throughout the House

• Declutter! Consider it pre-packing for your move. Box up books, clothes, and personal items and place them (neatly!) in the garage or — better yet — a rented storage unit.
• Don’t forget to include memorabilia in those decluttering bins. Family photos, diplomas, and the kids’ artwork should all go.
• Keep closets, basements, and attics as empty as possible to maximize the appearance of storage space.
• Transform underused areas of the house — the alcove under the stairs or the end of a hallway — into functional spots. Add a desk to create a mini office, or a chair and small bookshelf for a reading nook.
• Swap dim lights for high-wattage bulbs.
• Check every door, drawer, and cabinet to ensure they open and close easily. Swap out any faulty — or dingy — hardware.
• Damaged or aging hardwood floors? Replace damaged boards with new wood, sand down the entire floor, and re-stain.
• Do a deep (deep, deep) clean. Hire a professional cleaning service to clean your home from top to bottom — including carpets — before viewings.

Exterior

• Hang attractive house numbers that are legible from the road.
• Brighten up your porch with fresh paint or stain.
• Add a fresh coat of paint to the front door, preferably red, black, blue, or wood stain, so long as it complements the trim and doesn’t blend, says The Real Estate Staging Association. Steer clear of unconventional colors like purple.
• Buy a new doormat to welcome home buyers.
• Power-wash the house exterior, walkway, steps, driveway, and porch until everything sparkles.
• Make sure the locks and doorbell function.
• Make that mailbox look clean and welcoming, or get a new one.
• Plant lots of colorful blooms in attractive pots and planter beds.
• Trim back trees and shrubs from the approach to the front door.
• Whip that yard into shape with fresh sod or new seed.
• Store yard equipment and children’s toys out of sight.
• Repair shaky banisters.
• Get a hammock (or bocce ball game or raised fire pit) to show off how fun your yard can be.
• Dress up any imperfect planting area with mulch.
• Make sure entryway lights function and are free of cobwebs and insects.
• Hide trash cans, recycle bins, and garden hoses.
• Don’t forget your outdoor living space. Stage your patio like a second living room, with fashionable furniture, accent pillows, an outdoor rug, and other patio-friendly decor.

For Pet Owners

• Scrub those pet stains on the carpets and rugs until totally gone or replace them if necessary. Try cleaning formulas made especially for pet odors.
• Pet odors soak into your best friend’s favorite things. Completely remove pet beds (or Fido’s most-loved couch), blankets, toys, play structures, food bowls, and the like.
• Use air fresheners that eliminate odors, rather than simply mask them. There’s nothing worse than the smell of artificial pine with kitty litter undertones.
• Repair or remove any furniture that’s been scratched or gnawed on.
• Clean all pet “presents” from the yard.
• Keep cat boxes immaculate and hidden away, or — better yet — see how your feline-loving friends feel about a temporary houseguest and remove litter boxes altogether.
• Remove any dog or cat doors. Pets? What pets?
• When you leave the house for a viewing, take all the furry (or feathery or scaly) residents along with you.
• Make a pet hair sweep the last thing you do before you leave the house.

Day of Showing

• Add a seasonal touch. Simmer cinnamon sticks in the fall and set out fresh cut lilacs in the spring.
• Tidy like you’ve never tidied before.
• Avoid cooking any food for your own meals, but do bake some cookies or other baked goods to leave a welcoming aroma behind.
• Take off. After all that staging work, you deserve a trip to the spa while potential home buyers are busy falling in love with your house.

Renters That Can Buy

Fixer Upper House

Trying to decide whether to buy a fixer-upper house?

 Follow these seven steps, and you’ll know how much you can afford, how much to offer, and whether a fixer-upper house is right for you.

1. Decide what you can do yourself. 
TV remodeling shows make home improvement work look like a snap. In the real world, attempting a difficult remodeling job that you don’t know how to do will take longer than you think and can lead to less-than-professional results that won’t increase the value of your fixer-upper house. 

• Do you really have the skills to do it? Some tasks, like stripping wallpaper and painting, are relatively easy. Others, like electrical work, can be dangerous when done by amateurs.
• Do you really have the time and desire to do it? Can you take time off work to renovate your fixer-upper house? If not, will you be stressed out by living in a work zone for months while you complete projects on the weekends?

2. Price the cost of repairs and remodeling before you make an offer.

• Get your contractor into the house to do a walk-through, so he can give you a written cost estimate on the tasks he’s going to do. If you’re doing the work yourself, price the supplies.
• Either way, tack on 10% to 20% to cover unforeseen problems that often arise with a fixer-upper house.

3. Check permit costs.

• Ask local officials if the work you’re going to do requires a permit and how much that permit costs. Doing work without a permit may save money, but it’ll cause problems when you resell your home.
• Decide if you want to get the permits yourself or have the contractor arrange for them. Getting permits can be time-consuming and frustrating. Inspectors may force you to do additional work, or change the way you want to do a project, before they give you the permit.
• Factor the time and aggravation of permits into your plans.

4. Doublecheck pricing on structural work.
If your fixer-upper home needs major structural work, hire a structural engineer for $500 to $700 to inspect the home before you put in an offer so you can be confident you’ve uncovered and conservatively budgeted for the full extent of the problems. 

Get written estimates for repairs before you commit to buying a home with structural issues. 

Don’t purchase a home that needs major structural work unless:

• You’re getting it at a steep discount
• You’re sure you’ve uncovered the extent of the problem
• You know the problem can be fixed
• You have a binding written estimate for the repairs

5. Check the cost of financing.
Be sure you have enough money for a downpayment, closing costs, and repairs without draining your savings. 

If you’re planning to fund the repairs with a home equity or home improvement loan:

• Get yourself pre-approved for both loans before you make an offer.
• Make the deal contingent on getting both the purchase money loan and the renovation money loan, so you’re not forced to close the sale when you have no loan to fix the house.
• Consider the Federal Housing Administration’s Section 203(k) program, which is designed to help home owners who are purchasing or refinancing a home that needs rehabilitation. The program wraps the purchase/refinance and rehabilitation costs into a single mortgage. To qualify for the loan, the total value of the property must fall within the FHA mortgage limit for your area, as with other FHA loans. A streamlined 203(k) program provides an additional amount for rehabilitation, up to $35,000, on top of an existing mortgage. It’s a simpler process than obtaining the standard 203(k).

6. Calculate your fair purchase offer.
Take the fair market value of the property (what it would be worth if it were in good condition and remodeled to current tastes) and subtract the upgrade and repair costs.

For example: Your target fixer-upper house has a 1960s kitchen, metallic wallpaper, shag carpet, and high levels of radon in the basement.

Your comparison house, in the same subdivision, sold last month for $200,000. That house had a newer kitchen, no wallpaper, was recently recarpeted, and has a radon mitigation system in its basement.

The cost to remodel the kitchen, remove the wallpaper, carpet the house, and put in a radon mitigation system is $40,000. Your bid for the house should be $160,000.

Ask your real estate agent if it’s a good idea to share your cost estimates with the sellers, to prove your offer is fair. 


7. Include inspection contingencies in your offer.
Don’t rely on your friends or your contractor to eyeball your fixer-upper house. Hire pros to do common inspections like:

• Home inspection. This is key in a fixer-upper assessment. The home inspector will uncover hidden issues in need of replacement or repair. You may know you want to replace those 1970s kitchen cabinets, but the home inspector has a meter that will detect the water leak behind them.
• Radon, mold, lead-based paint
• Septic and well
• Pest

Most home inspection contingencies let you go back to the sellers and ask them to do the repairs, or give you cash at closing to pay for the repairs. The seller can also opt to simply back out of the deal, as can you, if the inspection turns up something you don’t want to deal with.

If that happens, this isn’t the right fixer-upper house for you. Go back to the top of this list and start again.

Home Is Where The Heart Is

5 Tips that Will Protect You from this (Expensive) DIY Mistake

It was their first plumbing project. “It was just a small crack in a pipe,” says Karah Bunde. She and her husband, Joel, had just purchased a fixer-upper they planned to renovate and rent.

They bought a new piece of PVC pipe to replace the cracked one. “We installed it, glued it, gave it 24 hours to cure. The next day we turned on the water and it busted at the seams. 

We had extra pipe and did it again, this time allowing it to cure for two days. Same story,” says Bunde, an avid DIYer who writes “The Space Between” blog.

The couple returned to the store and started asking questions.

Turns out they had made one of the most common DIY mistakes: choosing the wrong material for the job. “Our downfall was not doing enough research. Turns out we picked PVC pipe for drains and not one that would hold the pressure of water lines,” Bunde says.

Whether you’re choosing tile, flooring, lighting, or cabinets, making the right choice can make or break your success. Get the right materials by doing these five things:

1. Set a Budget for Every Item
Make a budget for every single item you’re purchasing, says architect Todd Miller, owner of QMA Architects & Planners in Linwood, N.J. Otherwise, you may blow it all on a sexy plumbing fixture, but then choose the wrong flooring, for instance, just because it’s cheap and you want to keep on track.

“There are always tradeoffs, but having a budget will help you manage the choices,” Miller says. 

2. Shop Where the Pros Shop
Not to dis big-box stores; they’re great for many things. But you have to know what you’re getting into, says Gary Rochman, owner of Rochman Design Build in Ann Arbor, Mich. “Heeding the siren call from the big-box store can oftentimes go wrong. You’re not getting the service and the professional advice you’d need, especially if you’re a DIYer.”

For example, he says, “You might purchase treated lumber for an outdoor deck, but no one tells you the nails you bought aren’t for outdoor purposes. At a lumberyard, they’ll let you know those two items don’t go together.”

Additionally, Miller says some manufacturers will make two versions of the same product: a more cheaply made one for major retailers and another for supply stores that sell to contractors. “I purchased one product at a retail store that had PVC supply lines, and the exact same product from my supplier that had solid copper fittings,” he says. Homeowners can have access to suppliers through their contractor, but many stores also sell directly to consumers.

3. Try It Out Before Committing to It
Robin Flanigan, a homeowner in Rochester, N.Y., thought she was doing all the right things when she chose backsplash tile. She went to a local tile store. She schlepped along her cabinet sample, and they knew her floor — a wood-look farmhouse tile — which she’d purchased from them. “The owner took his time with me every time I went to the store — and there were a lot of times I went to the store,” she says. It took her two months to decided on a clear tile. “I thought clear tile would be less noticeable, not clash with the concrete.”

She hired an installer who put up the tile on two walls before Flanigan saw it. “I wound up in tears all night and asked them to take it down,” she says. The installer did beautiful work, but “what looked great in a small sample turned out to look way too futuristic once the walls were covered. It didn’t fit the rest of the industrial loft vibe at all.”

Flanigan says the mistake was a “huge budget buster” and posted the torn-down tile on Craigslist. She had a thin concrete backsplash installed instead. “If there’s a next time, I would order a box to see if I liked the look first,” she says.

4. Invest in the Right Tools
Here’s a good place to practice balancing durability and cost: Get the right tools for the job.

“You can buy a brush for 98 cents, but you won’t get good results,” says Les Lieser, who recently retired as owner of a painting company and now runs Front Range Coating Consultants in Greeley, Colo. “Good brushes cost more for a reason.”

Lieser says cheap brushes are like straw, flaring out and not holding their shape. A good quality nylon or bristle brush, on the other hand, will allow for nice, straight lines. For a few dollars more, you’ll save a lot of hassle and get a more professional-looking result.

“The same goes for roller covers and paint,” Lieser says. “Spend a little more money on a brand name or something of good quality.”

What if you need a costly tool? “We’ve rented a bunch of tools; it’s a great option,” Bunde says. In addition, many cities have tool lending libraries or a MakerSpace where you can borrow bigger items. “When you buy your materials, always ask what tools are going to aid in your success,” Bunde says.

5. Be Cautious About What You Buy Online
Buying things online might be less expensive and convenient, but when you’ve purchased a 700-pound cast iron tub from Craigslist only to discover it’s scratched or too heavy for your second-floor bath, you’re going to have a hard time sending it back. “It’s important to see and touch the products,” Miller says. “And you’ll have an easier time with returns at a retail shop or professional wholesaler.”

Although it’s enticing to think you’ll save money by purchasing the cheapest materials and save time by doing it yourself, you’ve got to weigh the value of your time against the inevitability of things not fitting, arriving broken, or not lasting. Otherwise, you’ll be spending your free time wandering the fluorescent aisles of the hardware store rather than kicking back and sipping lattes in your newly renovated space.