Outdated & Unwanted

Hardball Fouls: 6 Home-Selling Negotiation Strategies That Can Backfire

When you're selling your home, you might imagine you hold all the cards. And you do—sort of. But it's easy to become overconfident in a seller's market. If you don't do a reality check, pronto, you could end up sabotaging your sale. So much for that straight flush!

Here are six common home seller negotiation tactics that can totally backfire if you don't approach them carefully.

1. Starting a bidding war

Bidding wars are the stuff of home sellers' dreams. 

And there's nothing wrong with fueling a little competition among buyers in order to get the best deal for you. But this tactic can easily backfire if you bungle it.

“If mishandled, people may assume the worst, and the best offer may walk away,” says Sep Niakan, owner/broker at Miami-based HB Roswell Realty.

Common bidding war bungles include the following:

• Not clearly explaining upfront how you intend to handle multiple offers.
• Giving an offer deadline that is too many days away. Some buyers might not want to wait for you to make a decision, especially if other homes are in contention.
• Already having a strong offer on the table, but then insisting that all potential buyers come back with their highest and best bid. There's no guarantee buyers will play ball and, if that strong offer walks, you're stuck with lower offers to choose from.

Bottom line: Proceed with caution before turning up the heat on the competition, lest you risk losing out on a dream deal.

2. Haggling over repairs

What if the buyer completes an inspection and comes back with a long list of requested repairs? If sellers get too tough here, they might send a buyer walking.

The sellers should consider how good the overall package is for them before refusing to do repairs, says Lucas Machado, president of House Heroes in Miami. "When the buyer’s offer is high, and the seller tries to negotiate away from legitimate repairs, the buyer may feel the seller is taking advantage of them."

3. Threatening to put your home back on the market

If negotiations aren't quite going your way, you might be tempted to call the buyer's bluff. Hey, if they don't want to ante up, you can always put your home back on the market and find another eager buyer to squeeze. Right?

Yes, you might find another taker quickly. But beware of this move—it might not go according to plan.

That's because there’s often a stigma associated with putting a home back on the market, and it might be harder to get buyers to take a second look, says REALTOR® Michael Hottman, associate broker at Keller Williams Richmond West in Richmond, VA.

"Exercise caution with this tactic, because real estate markets can change quickly from hot to cold, leaving you without all those buyers you were expecting," Hottman says. "And the ones who you had initially thought were legitimate prospects may have moved on to other homes in the time between your property originally going under contract and now coming back on the market."

4. Being stubborn on the closing date

You've decided you're not going to allow the new people to move in until (insert future date) because that’s when the closing date is on your new home. Or, they can’t possibly take possession this spring because your kids are still finishing school.

Guess what? Your buyers have scheduling issues of their own, says John Powell, chief development officer at Help-U-Sell Real Estate in Tucson, AZ.

“Sellers need to understand that they may have to move twice, since buyer and seller schedules seldom work out perfectly.”

5. Getting greedy over what comes with the house

Planning to take your beautiful custom light fixtures with you? Not so fast, Hottman warns. Often, he finds that sellers have expensive fixtures in place to show the home, but plan on taking them when they move. And that can cause trouble at the negotiating table.

The buyer "might have decided to buy the ceiling fan, and the house happens to come with it, or they get so upset that a fixture they fell in love with is now missing that they won't buy the home,” Hottman says.

Avoid this confusion by replacing anything that won't be staying with the house before you show it. If that's not possible, be prepared to leave the prized fixture behind, or negotiate a comparable replacement.

6. Refusing to pay closing costs

So, you're coming down the home stretch and this deal is almost done. Congratulations! But the buyer asked you to cover their closing costs.

Before you say "no way," consider it this way: Buyers sometimes roll the amount of those closing costs into their offer. For instance, let's say your home is listed for $200,000. A buyer might then submit an offer for $204,000, but ask you to cover the $4,000 in closing costs.

“Some sellers will hold firm at the $204,000 offer and refuse to pay the closing costs because they want this higher price the buyer offered,” Hottman says. “Some sellers can't see the net is nearly identical between a $200,000 offer with no closing costs and $204,000 with $4,000 in seller-paid closing costs, and they miss out.” A good deal comes down to doing the math, keeping your ego in check, and putting yourself in the buyer's shoes. After all, when you sell your house, you'll probably be buying one, too.

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.

Avoid Real Estate Regrets

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.

Meet Me Outside

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.”

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.

Sellers' Market Challenges

4 Curb Appeal Projects To Max Out Home Value

You’ve been spending so much time on projects inside your home (like that new shower you have to drag yourself out of), that your front yard is starting to scream for a bit of attention.

Poor neglected, thing.

You know your yard has some super curb appeal potential, but where to begin? 

Check out the National Association of REALTORS®’ 2016 Remodeling Impact Report: Outdoor Features (full disclosure: NAR is HouseLogic’s sponsor). It’s got some interesting data on how landscaping affects home value, especially those with tons of curb appeal. They beat out all indoor projects when it comes to adding value to your home!

Below are four projects with so much curb-appeal juice, any money you invest in them is likely to pay you back much more.

#1 Add or Replace a Few Design Basics
Every few years, you overhaul your closet, replacing your worn-out basics with a few new pieces to ramp up your wardrobe. Why not do the same with your yard? Give it a basic makeover so it has some good, classic, value-boosting “bones” to build upon. 

Landscape design basics like:

• A winding flagstone walkway
• A couple of stone planters (6 feet by 2 feet)
• A few flowering shrubs 
• A deciduous tree about 15 feet tall
• Quality mulch

Why you can’t go wrong: The median cost for this makeover is $4,750. But the recoup (how much more your house would sell for after doing this project) is $5,000! Pretty sweet, right?

#2 Add Color and Texture in the Right Places
Experts call it “softscaping.” But basically, it’s adding plants in a designed, intentional way that makes your yard interesting to look at year-round. 

It’s a great project if your yard is already in pretty good shape with some basic design elements mentioned above. 

A typical softscaping project includes:
• Five trees
• 25 shrubs
• 60 perennials
• Natural edging
• Boulder accents

Why you can’t go wrong: You’ll invest about $7,000, but you could recoup every cent in home value, according to the Report. Plus, here’s what the report doesn’t include: You’ll get super energy savings. 

Who doesn’t love lower utility bills?

Just three trees in the right location can save up to $250 a year in heating and cooling costs, says the source for energy-saving stats: the U.S. Department of Energy.

Shade trees help boost curb appeal 

#3 Build a Deck or Patio if You Don’t Have One
If you’re spending sunny days admiring the great outdoors from indoors, it’s time for a change to get you outside… like finally building that deck or patio you’ve been dreaming of.

Why you can’t go wrong: A patio costs about $6,400 and recoups 102%. A wood deck will cost $9,450 with a slightly higher recoup of 106%. Plus, how can you put a price on all those evening cookouts and Sunday brunches al fresco?

#4 Heap Loads of Love on Your Lawn
Yep, you read that right. Especially if you know you’re going to sell in the next year or so. 

It’s the easiest project to do — and it has a whopping ROI of 303%!

Lawn maintenance is simple:
• Fertilize
• Aerate 
• Weed
• Rake 

Why you can’t go wrong: It’s the cheapest project to do with an annual cost of only $330. Every year, you’ll reap the benefits of a lush, barefoot-friendly lawn. 

(But note that unlike the other landscaping features listed in this article — deck, patio, hardscaping, trees, etc. — you’ll only get that fabulous 303% ROI on your maintenance costs for the year right before you sell. That’s because lawn maintenance has to be repeated annually, unlike the other projects).

Avoid These Bedroom Designs

Curb Appeal

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?