Seller Know How

How The Canniest Sellers price Their Homes

You don’t need to be Bob Barker to know when the price just isn’t right. Just ask Candace Talmadge. She originally listed her Lancaster, Texas, home for $129,000, but “eventually had to accept the market reality” and chop $4,000 off the price.

The home’s location proved challenging: Buyers were either turned off by the area — a lower-income neighborhood south of Dallas — or unable to afford the home.

“Sellers have to keep in mind the location,” says Talmadge. “Who are going to be the likely buyers?”

Home pricing is more of a science than an art, but many homeowners price with their heartstrings instead of cold, hard data. 

Here’s why crunching the numbers is always the better route to an accurate home price — as well as what can happen when home sellers overlook those all important data points.

The Pitfalls of Overpricing

Homeowners often think that it’s OK to overprice at first, because — who knows? — maybe you’ll just get what you’re asking for. Although you can certainly lower an inflated price later, you’ll sacrifice a lot in the process. The most obvious damage: A house that remains on the market for months can prevent you from moving into your dream home. Already purchased that next home? You might saddle yourself with two mortgages.

“You lose a lot of time and money if you don’t price it right,” says Norma Newgent, an agent with Area Pro Realty in Tampa, Fla.

And worse: Continually lowering the price could turn off potential buyers who might start wondering just what is wrong with your home.

“Buyers are smart and educated,” says Lisa Hjorten of Marketplace Sotheby’s International Realty in Redmond, Wash. “You’re probably going to lose them.”

The Pricing Traps

It’s easy for homeowners to stumble into two common traps:

1. Conflating actual value with sentimental value — how much they assume their home’s worth because they lived there and loved the time they spent there.

2. Assuming renovations should result in a dollar-for-dollar increase in the selling price— or more.

“Many homeowners think, ‘Of course my home is worth a bazillion dollars,’” says Newgent. If they put in a few thousand dollars’ worth of new flooring, for example, they might overestimate the upgrade’s impact on the home’s value into the tens of thousands.

Talmadge’s Texas home came with a built-in renovation trap: It was already the nicest home in the area, making it harder to sell. Major additions had inflated the square footage — and the price, according to one appraiser — without accounting for the surrounding neighborhood. That created a disconnect for buyers: Wealthier ones who might be interested in the upgraded home disliked the neighborhood, and less affluent buyers couldn’t afford the asking price.

“Don’t buy the nicest home on the block” is common real estate advice for this reason.

That’s not to say that renovations aren’t worth it. You want to enjoy your home while you’re in it, right? Smart renovations make your home more comfortable and functional but should typically reflect the neighborhood. A REALTOR® can help you understand what certain upgrades can recoup when you sell and which appeal to buyers.

Another culprit for many a mispriced home is online tools, like Zillow’s “Zestimate,” that prescribe an estimated market value based on local data.

The estimate is often wildly inaccurate. A Virginia-area real estate company, McEnearney & Associates, has compared actual sold prices with predicted online estimates for several hundred homes in the area for the past few years and concluded the predictions failed half of the time.

The Right Stats for the Right Price

The best pricing strategy? Consult a real estate agent, who will use something called comps (also known as “comparable sales”) to determine the appropriate listing price. They’re not just looking at your neighbors; they’re seeking out near-identical homes with similar floor plans, square footage, and amenities that sold in the last few months.

Once they’ve assembled a list of similar homes (and the real prices buyers paid), they can make an accurate estimate of what you can expect to receive for your home. If a three-bedroom bungalow with granite countertops and a walk-out basement down the block sold for $359,000, expecting more from your own three-bedroom bungalow with granite countertops and a walk-out basement is a pipe dream.

After crunching the data, they’ll work with you to determine a fair price that’ll entice buyers. The number might be less than you hope and expect, but listing your home correctly — not idealistically — is a sure way to avoid the aches and pains of a long, drawn-out listing that just won’t sell.

Knowing When the Price is Too High

Once your home is on the market, you’ll start accumulating another set of data that will serve as the ultimate price test: how buyers react.

Agent Hjorten says there’s an easy way to tell if you’ve priced too high: “If we have no showings, it’s way too high. Lots of showings and no offer means you’ve marketed well — but it’s overpriced once people get inside.”

Talmadge didn’t struggle with showings. She says a number of people were interested in the home, but not enough at the price. In the end, Talmadge sold her home for $125,000, with a $5,000 seller’s assist, a discount on the cost of the home applied directly to closing costs.

“It all boils down to location, location, location. In [another] neighborhood, our house might well have sold for well over $130,000,” Talmadge says.

When it comes to finding a buyer, pricing your home according to data — and the right data, at that — is crucial to making the sale.

Preparing to Sell Your Home? The Best 5 Projects to Do Now

Planning on selling your home soon? Take an objective look around your home from a buyer’s perspective. What would stop you from making an offer? What do you need to do to put your home’s best face forward? Here are some projects to jump on now in order for your home to be in tip-top shape for a sale: Update Your Curb Appeal

“Curb appeal is important,” says Steve Modica, sales associate and property manager at HomeXpress Realty Inc. in Tampa and St. Petersburg, Fla.

• Make sure the bushes are all trimmed.
• Re-mulch or replace stone walkways and paths
• Remove any dead plants and trees, and aerate your lawn so it will be lush.
• Pressure wash the driveway, the front walk, and the exterior of your home.
• If need be, have the exterior of the house painted.
• At the very least, apply a fresh coat of paint on the front door.

#2 Get a Home Inspection

The NATIONAL ASSOCIATION OF REALTORS® says 77% of homebuyers have an inspection done before completing a home purchase. To avoid nasty surprises once you’re in the process of selling your home, have your own inspection done, and make any repairs before you list the home.

You should know that if the inspection does discover any flaws, even if you fix them, you will have to disclose them. But that’s still a much better strategy than letting the buyer find flaws, which gives them bargaining leverage.

#3 Replace Flooring and Paint Walls

Determine if your carpets need replacing or just a deep, professional cleaning. If they need to go, consider if hardwood or another flooring material might be more appealing to buyers.

You’ll also want to inspect interior rooms for dirty or scuffed walls that need a fresh coat of paint. “Paint the whole wall, don’t just do touch-up repair work, because it never looks as good,” says Modica. Also, if you have eccentric or loud wall colors, now is the perfect time to update to a more neutral palette. Stagers recommend beiges, light grays, and off-whites.

#4 Tackle the Basement, Attic, and Garage

Often overlooked, these storage meccas can become a catch-all for junk. Get down and dirty in these hot spots and organize them from top to bottom. Install shelving, pegboards for tools, and hanging brackets for bicycles and other large sporting equipment. Your goal is to pitch the junk, sell what you no longer need, and categorize the rest.

“Donate or recycle clothes and bedding you don’t use anymore in order to free up storage space in your closets, basement, and garage,” says Amy Bly, a home stager at Great Impressions Home Staging in Montville, N.J. These areas should look roomy, well-organized, and clean.

#5 Consult a Stager

Buyers need to picture themselves living in the house, and they may have trouble doing that if all your personal effects are on display. In order to accomplish that, a professional stager can create a plan for you.

Bly spends about two hours walking through a property assessing curb appeal, interior flow, closets, bookcases, media cabinets, flooring, and more.

“I give homeowners a multi-page, room-by-room form they can use to take notes on my recommendations,” says Bly. She typically recommends things like neutralizing out-of-date decor, removing old furnishings and carpeting, and updating light fixtures. She also suggests the type of shower curtains, towels, bedding, and pillows to display for an upscale look.

Getting a jump on these fall projects will give you a leg up on selling in the spring. Today’s buyers are savvier than ever before, so when you’re ready, have a friend or relative drop by for a tour and point out anything you may have overlooked.

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.

Avoid These Bedroom Designs

Open House Timeline: Countdown To A Successful Sale

Get ready for your open house — stress-free — by starting early and breaking down your to-do list into manageable chunks. Use this timeline of 35 tips and your house will stand out from the competition on open house day.

Four Weeks Before the Open House

• Ask your parents to babysit the kids the weekend of the open house. Then book a reservation for your pet with the dog sitter or at the kennel. Having everyone out of the house on the day of will help you keep your home tidy and smelling fresh. Plus, no dogs and no kids equal more time for last-minute prep.
• Line up a contractor to take care of maintenance issues your real estate agent has asked you to fix, like leaking faucets, sagging gutters, or dings in the walls.
• De-clutter every room (even if you already de-cluttered once before). Don’t hide your stuff in the closet—buyers will open doors to size up closet space. Store your off-season clothes, sports equipment, and toys somewhere else.
• Book carpet cleaners for a few days before the open house and a house cleaning service for the day before. Otherwise, make sure to leave time to do these things yourself a couple of days before.

Three Weeks Before the Open House

• Buy fluffy white towels to create a spa-like feel in the bathrooms.
• Buy a front door mat to give a good first impression.
• Designate a shoebox for each bathroom to stow away personal items the day of the open house.

Two Weeks Before the Open House

• Clean the light fixtures, ceiling fans, light switches, and around door knobs. A spic-and-span house makes buyers feel like they can move right in.
• Power-wash the house, deck, sidewalk, and driveway.

One Week Before the Open House

• Make sure potential buyers can get up close and personal with your furnace, air-conditioning unit, and appliances. They’ll want to read any maintenance and manufacturer’s stickers to see how old everything is.
• Clean the inside of appliances and de-clutter kitchen cabinets and drawers and the pantry. Buyers will open cabinet doors and drawers. If yours are stuffed to the gills, buyers will think your kitchen lacks enough storage space.
• Put out the new door mat to break it in. It’ll look nice, but not too obviously new for the open house.

Week of the Open House

• Buy ready-made cookie dough and disposable aluminum cookie sheets so you don’t have to take time for clean up after baking (you can recycle the pans after use). Nothing says “home” like the smell of freshly baked cookies.
• Buy a bag of apples or lemons to display in a pretty bowl.
• Let your real estate agent know if you’re running low on sales brochures explaining the features of your house.
• Clean the windows to let in the most light possible.
• Mow the lawn two days before the open house. Mowing the morning of the open house can peeve house hunters with allergies.

Day Before the Open House

• Make sure your real estate agent puts up plenty of open-house signs pointing in the right direction and located where drivers will see them. If she can’t get to it on the Friday before a Sunday open house, offer to do it yourself.
• Put away yard clutter like hoses, toys, or pet water bowls.
• Lay fresh logs in the fireplace.

Day of the Open House

• Put checkbooks, kids’ piggybanks, jewelry, prescription drugs, bank statements, and other valuables in the trunk of your car, at a neighbor’s house, or in your safe. It’s rare, but thefts do happen at open houses.
• Set the dining room table for a special-occasion dinner. In the backyard, uncover the barbeque and set the patio table for a picnic to show buyers how elegantly and simply they can entertain once they move in.
• Check any play equipment for spider webs or insect invasions. A kid screaming about spiders won’t endear buyers to your home.
• Clean the fingerprints off the storm door. First impressions count.
• Put up Post-It notes around the house to highlight great features like tilt-in windows or a recently updated appliance.
• Remove shampoo, soap, toothbrushes, and other personal items from the bathtub, shower, and sinks in all the bathrooms. Store them in a shoebox under the sink. Removing personal items makes it easier for buyers to see themselves living in your house.
• Stow away all kitchen countertop appliances.

One Hour Before the Open House

• Bake the ready-to-bake cookies you bought earlier this week. Put them on a nice platter for your open house guests to eat with a note that says: “Help yourself!”
• Hang the new towels in the bathrooms.
• Put your bowl of apples or lemons on the kitchen table or bar counter.
• Pick up and put away any throw rugs, like the bath mats. They’re a trip hazard.

15 Minutes Before the Open House

• Open all the curtains and blinds and turn on the lights in the house. Buyers like bright homes.
• Light fireplace logs (if it’s winter).
• Didn’t get those cookies baked? Brew a pot of coffee to make the house smell inviting.

During the Open House
Get out of the house and let the REALTOR® sell it! Potential buyers will be uncomfortable discussing your home if you’re loitering during the open house. Take advantage of your child- and pet-free hours by treating yourself to something you enjoy — a few extra hours at the gym, a trip to the bookstore, or a manicure.

Who's Buying Homes?

4 Ways To Avoid DIY Mistakes

New backsplash? You’ve done it. Upgrading a faucet? No problem. You’re a DIY master. But what about that electrical issue? Or fixing a leaky roof? Even though you (and your BFF, YouTube) have pulled off many DIY projects, you know there are projects you’ve no business trying on your own. But what about those projects that fall somewhere in between “I got this” and “I’m calling the pros”? How can you know if a project is really DIYable for you?

For Lucas Hall, finding that answer has been trial and error. As a “DIY landlord” for more than two years and founder of Landlordology, an online resource for landlords, he’s gutted three homes and renovated countless others.

“I’m just handy enough to be dangerous,” Hall says.

He’s suffered more than his fair share of DIY disasters, and with each, he’s learned a valuable lesson about his own limits, as well as how he can do better next time.

Think 10 Steps Ahead
When Hall updated a tiny kitchen in one of his rentals, he installed a brand-new, expensive fridge — and then built a peninsula countertop extension.

“We thought it was the greatest idea,” he says. But adding the peninsula narrowed the space in front of the refrigerator, making it impossible to remove without lifting it entirely up and over the extension. (Ever tried to lift a fridge?)

“I’m just praying the fridge doesn’t die on me, because I’m going to have to hire four or five burly guys to get it out,” Hall says. “Or just Sawzall the thing in half.”

DIY lesson: Measure once, measure twice, measure again, and think through every possible scenario before changing a room’s layout.

Don't Go With the Cheapest Option
Speaking of kitchen appliances: Hall was looking for an island range hood, which can be extra-expensive because it needs to be attractive from all angles. Dismayed by the prices he found elsewhere online, he went to Amazon, where he found an $800 hood on sale for about $250.

“Of course, it was from a brand we hadn’t really heard of,” Hall says.

Less than a year after installation, the hood was on the fritz. Removing the appliance was a challenge. The electrical wiring needed to be redone, and the wall needed to be drywalled, requiring a professional contractor.

“It probably cost me three-fold to fix my mistake,” says Hall. “For any appliance that’s more complicated than plugging it in and rolling it into place, upgrade and buy something that’s not going to break on you within a year.”

DIY lesson: For any DIY project, the cheapest option, from materials to appliances, should raise a red flag.

For Specialty Work, Seek Specialty Advice
Hall is no electrician, but since he’d done some minor electrical work before, he figured the job of adding a dimmer switch would be no big deal.

“We hung a chandelier in the dining room, and figured you might want to dim this giant chandelier for a relaxing candlelit dinner,” says Hall. Because the space had switches at both entrances, he added a dimmer to both — the more the merrier, right?

Wrong.

“After four hours spent blowing circuits and lightbulbs and struggling to get this chandelier to dim correctly, we called the manufacturer,” Hall says. Spoiler alert: You just can’t have two dimmer switches for one circuit.

A dimmer works by modulating the amount of electricity flowing through the circuit; adding another causes chaos. A little research would’ve indicated the second dimmer switch was a no-no.

“It just flips out,” says Hall. “It doesn’t know how much dimming should be happening. The lights were flickering like a poltergeist.”

DIY lesson: No one blames you for not being a specialist, but any time you’re taking on a specialty project make sure to do your research first or consult a pro.

DIY When Help is Available (aka, NOT on a Holiday)
Holidays might be a great time to tackle minor DIY projects, but if you’re working on anything that could require a professional if things go south, consider waiting for a normal business day.

“I was trying to get a property ready to rent,” says Hall. “Time is money. It was the Fourth of July … and I was adding a new cabinet [in the bathroom].”

It sounds easy enough, but the unit was in a condo building with a centralized water system; there wasn’t a water shut-off valve for just that bathroom. Not wanting to shut down the water for the entire building on July Fourth, he decided to risk it.

And oh, what a risk it turned out to be. When trying to loosen a pipe, the whole thing broke off. It was rusted out. Water sprayed out so hard, it hit him in the chest. After rushing to the basement, he flipped every knob he found until the water shut-off.

“Luckily my property was on the first floor and the basement was a laundry room, because water was leaking through the floor, destroying drywall,” Hall says.

Being a holiday, the rest of the day was no less of a disaster. The condo association’s emergency line sent him a plumber who was angry to be missing his holiday events and drinking as he tried to fix the problem. Sloppy work resulted in a fire — in a building with no water.

“He runs to my fridge and starts grabbing anything liquid — milk, a bottle of Sprite, cans of beer,” Hall recalls. “He’s dumping water into the middle of the wall, punching holes in it, trying to find the fire.”

DIY lesson: Always do tricky DIY projects when you know a pro — a pro you trust — can help out in a hurry.

How To Use Comparable Sales To Price Your Home

How much can you sell your home for? 
Probably about as much as the neighbors got, as long as the neighbors sold their house in recent memory and their home was just like your home.

Knowing how much homes similar to yours, called comparable sales (or in real estate lingo, comps), sold for gives you the best idea of the current estimated value of your home. The trick is finding sales that closely match yours.

What makes a good comparable sale?
Your best comparable sale is the same model as your house in the same subdivision—and it closed escrow last week. If you can’t find that, here are other factors that count:Location: The closer to your house the better, but don’t just use any comparable sale within a mile radius. A good comparable sale is a house in your neighborhood, your subdivision, on the same type of street as your house, and in your school district.

Home type: Try to find comparable sales that are like your home in style, construction material, square footage, number of bedrooms and baths, basement (having one and whether it’s finished), finishes, and yard size.

Amenities and upgrades: Is the kitchen new? Does the comparable sale house have full A/C? Is there crown molding, a deck, or a pool? Does your community have the same amenities (pool, workout room, walking trails, etc.) and homeowners association fees?

Date of sale: You may want to use a comparable sale from two years ago when the market was high, but that won’t fly. Most buyers use government-guaranteed mortgages, and those lending programs say comparable sales can be no older than 90 days.

Sales sweeteners: Did the comparable-sale sellers give the buyers downpayment assistance, closing costs, or a free television? You have to reduce the value of any comparable sale to account for any deal sweeteners.

Agents can help adjust price based on insider insights
Even if you live in a subdivision, your home will always be different from your neighbors’. Evaluating those differences—like the fact that your home has one more bedroom than the comparables or a basement office—is one of the ways real estate agents add value. 

An active agent has been inside a lot of homes in your neighborhood and knows all sorts of details about comparable sales. She has read the comments the selling agent put into the MLS, seen the ugly wallpaper, and heard what other REALTORS®, lenders, closing agents, and appraisers said about the comparable sale.

More ways to pick a home listing price
If you’re still having trouble picking out a listing price for your home, look at the current competition. Ask your real estate agent to be honest about your home and the other homes on the market (and then listen to her without taking the criticism personally). 

Next, put your comparable sales into two piles: more expensive and less expensive. What makes your home more valuable than the cheaper comparable sales and less valuable than the pricier comparable sales?

Are foreclosures and short sales comparables? If one or more of your comparable sales was a foreclosed home or a short sale (a home that sold for less money than the owners owed on the mortgage), ask your real estate agent how to treat those comps.

A foreclosed home is usually in poor condition because owners who can’t pay their mortgage can’t afford to pay for upkeep. Your home is in great shape, so the foreclosure should be priced lower than your home.

Short sales are typically in good condition, although they are still distressed sales. The owners usually have to sell because they’re divorcing, or their employer is moving them to Kansas.

How much short sales are discounted from their market value varies among local markets. The average short-sale home in Omaha in recent years was discounted by 8.5%, according to a University of Nebraska at Omaha study. In suburban Washington, D.C., sellers typically discount short-sale homes by 3% to 5% to get them quickly sold, real estate agents report. In other markets, sellers price short sales the same as other homes in the neighborhood.

So you have to rely on your real estate agent’s knowledge of the local market to use a short sale as a comparable sale.

Does Home Size Equal Success?

The Old Rules Don't Apply

6 Real Estate Tips for Choosing Your Dream Home

The term “dream home” means a lot of different things to a wide variety of people.
To some, it means a cozy cabin on an acre or two of lake-front property near a small town. To others, it means an average-sized two-story dwelling in a friendly suburb. And then there are people who want the $1.3 million New York City apartment with views of the Empire State Building.
Regardless of what type of person you are or what type of home suits your fancy the most, there are a lot of important decisions that go into picking out your dream home. In this article, we’ll give you 6 real estate tips to consider when trying to select the home your heart craves most of all. And they are:
Square Footage
If you time-travel back to 30 years in the past, homes were usually around 1,645 square feet in size. Today, that number has gone up to 2,195. But since the housing bubble burst, that number is starting to shrink as people eliminate superfluous rooms like “exercise rooms, offices, studies, and media rooms”. Really, it all comes down to how much — or little — house do you want and/or need.
Floorplan
Do you like your home with rooms that are intimate and traditional, or do you prefer an open floor plan that will help facilitate parties, family get-togethers, and other forms of entertainment? Neither is better than the other; it just all comes down to need and personal preference.
Home Grade
This section could also be labeled “cost,” because the grade of home you want affects the price. Obviously, a home with granite countertops, authentic stone floors, and mahogany wood paneling is going to cost much more than a home with laminate counters, ceramic flooring, and pine paneling. If you want a green home (i.e. one with “zero-voc paint, bamboo floors, and recycled counters”), that will also affect price. Decide what you want and make sure it fits your budget.
Landscaping
Sure, a big, beautiful, well-maintained lawn sounds good in theory, but are you willing to perform the necessary upkeep? Opting for a condo or townhouse decreases your lawn maintenance, but it could also hinder your entertaining, especially if you’re a fan of cook-outs and flag football. Determine if you’re willing to put the time into a lawn; if you don’t want one, nix houses with large yards from your search.

Neighborhood
Picking a neighborhood can be hard. If you have children (or plan on having some in the future), your choice will probably determine what public school they attend. Other things that can influence your choice are your daily commute to work, whether or not you want to be in a historic part of town, what kind of demographics interest you the most, or how close you want to be to your city’s dining and entertainment venues. Figure out where you are in life — and where you’re headed — and plan accordingly.
Surrounding Area
This one relates back to the previous section. What kind of dining, shopping, and entertainment options do you need to be near your dream home? (For example, I know I personally have to live within 15 minutes of a Wal-Mart in order to get by.) Be sure to scope out what’s available to you in the town/city that interests you. That way, you won’t be disappointed down the road when you discover your dream home is nowhere near your favorite chain restaurant.

Are you ready to sell?

If you're like most home sellers, your house is worth a lot less than it was five years ago, maybe even less than what you paid for it.

So it isn't worth sinking more money into it before you put it on the market, right?

Sorry, but no, according to real estate agents. Sprucing up a home before you sell is still the best way to attract buyers and get a sale in this slowly recovering housing market.

"Buyers are picky," said Kim Guild, an agent with Keller Williams Realty, Edina. "There's not a lot of great inventory, but buyers still want it to look a certain way. A house needs to show like a model."

Today's buyers have higher expectations, but they aren't as set on a single neighborhood as they used to be, according to Laura Tiffany, an agent with Coldwell Banker Burnet's Minneapolis Lakes office. "They're more value-driven. They're willing to look in a broader area, which gives them more choices. The main thing I'm telling my clients is that homes need to be in pristine condition."

That doesn't mean you need to invest in major remodeling projects. Simple repairs, minor cosmetic enhancements, decluttering and staging are enough, in most cases, to make a home appealing to current buyers.

"Eliminate objections," said John Everett, an agent with Edina Realty. "You're competing with other houses, and the competition is all staged, neutralized and looking good. It doesn't cost a lot to declutter. Fresh paint doesn't cost a fortune."

A move-in-ready house is important to today's buyers because most don't have cash to pay for updates, Guild said. "They can finance the house but not the improvements. Lenders aren't approving those like they used to. You can't get those [home equity] lines of credit."

Plus, many of today's buyers aren't prepared -- or willing -- to tackle even minor home improvements themselves, according to Everett. "If they're both working, they don't have time." And most came of age in an era when home repairs and painting were increasingly outsourced.

"Buyers don't have a clue," Everett said. "They didn't do these things growing up and they didn't see their parents doing them. Today, when you point out a workbench in the basement, usually the wife laughs hysterically and says something like, 'My husband wouldn't know which end of the screwdriver to use.'"

So, if you're a home seller, what's worth spending money on and what's not? We asked agents to weigh in:

Professional photography. "The first showing is now online," Guild said. "You're not making the first impression when the buyer comes in the door, but on the Internet." Amateurish snapshots reduce the likelihood that a prospective buyer will be impressed enough to make an appointment. But high-quality shots by a pro who understands angles and lighting can pique buyers' interest.

Staging. Hiring a professional to present your home in its best light is almost always a worthwhile investment, Guild said. "I'm a huge proponent of staging." A well-staged home evokes positive emotion in potential buyers, often resulting in a faster sale and a higher sale price, she said.

Depending on the size of your home, a full-house staging can cost $2,500 to $3,000 -- even more if furniture, rather than just accessories, are involved. If that's beyond your budget, consider hiring a professional stager for a preliminary consultation and then follow his or her advice to complete the staging yourself.

Repairs. If it's broken, fix it. Today's buyers don't want to inherit your deferred-maintenance chores. "Almost all houses need some love," Everett said. "Spend the money, hire a handyman." Mechanics should be in good working order, Tiffany said. "Furnace certified. Windows and gutters clean -- anything that makes the house present itself as well cared for, and a good value."

Painting. A coat of fresh paint is a must for most homes, at least in rooms that see the most wear and tear. "You want everything to look fresh, new and clean," Tiffany said. Neutral colors are still recommended. While an unusual color scheme might be dramatic, it makes it more difficult for buyers to visualize themselves and their belongings in your home. Tiffany also tells her clients to paint basement floors, as part of cleaning and decluttering. "Basements can be scary, and clean, fresh paint on a cement floor really helps," she said.

Kitchens and baths. Concentrate your home-improvement efforts and dollars in these two spaces, Guild advised. "Kitchens and baths deliver the most bang for the buck." New lighting, faucets and hardware can give a kitchen a fresh, new look without breaking the bank. Bigger-ticket enhancements, such as new countertops, might or might not be smart, depending on the home and other circumstances. Guild has advised some clients with dated kitchens to add granite and new appliances, to appeal to modern buyers. But Everett urges caution. "Granite is very personal, and someone might hate the color you choose," he said. "They may want to pick out their own granite."

Other big projects. Thinking about finishing your unfinished basement so your home boasts more square footage? Don't bother, Guild said. "You're not going to get the money out of it, unless you were going to do it anyway." Tiffany agreed.

"For major improvements, I tell clients they should do it only for themselves, so they can get some enjoyment out of the improvement. The likelihood of a quick return on investment is not strong."

When in doubt about what to improve, ask your agent.

"The biggest thing is listening to the professional you hired," Guild said.

Everett said he's had several recent sales that involved multiple offers, and in every case, "they [sellers] did everything on my checklist." His advice: "Go out with both barrels loaded and get the job done."