As in any sale, one must have a keen understanding and profile of the purchaser of their product. The same is true for anyone who is contemplating a successful transaction in an ever-changing real estate market. Over the years I have observed a change in buyer’s expectations when searching for that right home which meets their requirements.

Young people today are delaying marriage and having children later in life. This has led to the increase of single buyers purchasing on one income and a more cautious approach to their search. This group typically 25-32 years of age are looking for homes that require little updating. They do not have the funds to make major repairs such as updating kitchens and baths, or correcting structural issues. Their price range would be in the lower price point of the market in the community they choose. Since this is usually their first home, they do their homework and are more educated in the real estate market than ever before, due to the proliferation of information via the internet. A seller today would be smart to (more…)

Have you ever tried to paint the outside of your home in the winter? Not a good idea! All too often, I visit with folks ready to make their move and put the home on the market. They are excited about the apartment or condo they just found, and now it is time to sell their home. However, it is February, and the home needs inside and outside improvements. Downsizing of personal property has not been started, and the interior needs several upgrades before showing the home. Improvements have been avoided because moving seemed so far off until they stumbled into this perfect new home which they don’t want to lose. The excitement has now turned into panic and all the seeds for high stress have been planted by their inaction to prepare their home for sale.

Today’s buyer wants a property that is in great condition both exterior and interior. If you’ve read my past articles, I have stressed to make sure your property does not compete with foreclosures if at all possible. Foreclosures often are homes that have been neglected due to lack of funds, and are selling at up to 70% off the top market value! Therefore, your home must be far superior to the foreclosure competing in your neighborhood. If you know you will be selling sometime in the next 5 years, begin downsizing today! As Realtors, we can begin your process of preparing your home for market by offering the services of a stager. A stager is a professional trained in not only decorating, but placing furniture and artwork to compliment new flooring and carpeting as well as choosing the right colors which are attractive to today’s buyers. There are companies that will assist you in downsizing by packing, sorting, and coordinating estate sales as well as donations.

If your home needs exterior work, do it right now, while it is still warm outside. Don’t procrastinate on exterior work, as you never know when you are going to want to move. If the work on the outside is done now, you can always do the interior improvements in any season. If paint is needed, a stager can help you pick out (more…)

I Can’t Sell My House!!

“I can’t sell my house.” I have heard this from so many seniors in the last two years. The majority of folks who truly believe that a successful sale cannot be achieved have never actually put their home on the market! I have always said it is not what people do but why they do it. It is the “why” behind the action that must be examined.

No matter what the market conditions, homes will sell. They sold in the 80’s when interest rates were up to 17% and they sold last year after the economic tsunami. The only factor that changes with each market is the price of the home. Prices have fallen, but only 10% in some areas, and 15-20% in other areas. The right way to look at your home investment is to remember what you paid when you purchased your home and what it is worth today. Those homeowners who have lived in their homes for thirty to fifty years have seen their properties increase, in many cases, by ten times. So, why then are so many people focused on the 10-20% drop in prices over the last five years, and why are they ignoring the ten-fold increase from purchase to current prices?

I believe it is because (more…)

Everywhere we turn we are told about increases in foreclosures and the devastating carnage left behind in our neighborhoods. Just a few short years ago you probably didn’t even know how to spell foreclosure! Now the word has become an integral part of our lexicon. Let’s take a real look at this phenomenon so we can truly understand where foreclosures fit in our current real estate market place and how it affects all of us as homeowners.

Have you ever physically viewed a home that is in foreclosure? It is not a pretty sight! The majority of these homes are in poor condition both structurally and cosmetically. In most cases it would take several thousand dollars just to start the upgrades these homes generally require. I recently viewed one of these properties with a buyer and what we witnessed was nothing short of sickening. The toilets and vanities were gone; the carpet was torn and destroyed with a pungent odor. The dry wall was shredded and the ceilings were falling. In the basement was standing water and this was just the inside! The outside appearance was shameful. I need not go on. Needless to say, the buyer literally grabbed me and made a gesture to leave at once. This is a very typical reaction from a potential purchaser. The lesson here is that a very small percentage of buyers have the funds or even want to borrow the funds to rehabilitate such a project. This example is extreme, but most foreclosures are variations of the condition described. That is unfortunate and that is shameful. Unfortunately, many of the mortgage holders of these distressed properties do not invest monies to improve these homes, but rather let them fall into total disrepair and then sell them for less than 50 cents on a dollar! That is a real crime and it makes no sense whatsoever. I would hope this practice of neglect would change, but there are so many fingers in the pot in these foreclosures that no one entity takes responsibility in reviving these neglected homes and attracting a decent price.

You do not want your home to be in such a state that your property competes with foreclosures! If you do, you will suffer the same fate of losing more than half of your value when some updating could bring back great returns on your investment. Make a commitment this spring to updating your home both inside and outside. Start with the most important components of your home that can be considered defects if not in proper working order. These would be basement walls and drain tile, roof, furnace, plumbing, and electric. Make sure all of these are in proper working condition. If you do not have the funds to make these repairs, borrow the money in the form of an equity loan. It will be worth the investment and save you from even more damage or repair needed down the road.

Next, look at the cosmetics. Kitchens and baths bring back the biggest bang for the buck. You would be amazed at the major difference you can make to the appearance of your home with a reasonable budget. I work with a company that re-coats tub and tile in your bathroom for a cost of $400-$500 for the tub and can also coat the ceramic tile. You can change that pink or turquoise into a neutral beige in one day for a fraction of the cost of total tear out and replace. Your kitchen cabinets can be re-covered as opposed to new cabinets. Flooring in the kitchen and new carpet can totally transform your home and give it that new home smell. Often I hear, “why should I replace that torn carpet when the buyer will just tear it out and put something else in its place! I’ll just give them a credit!” Wrong, wrong, wrong!!! Imagine looking at a car with torn carpet and the dealer offers a credit to replace that ugly eye sore. You know what your reaction would be and it’s no different with a buyer. Lighter neutral carpet with a new coat of paint on walls and ceiling can totally transform your home and bring great returns especially in this competitive market.

Painting a basement with a neutral color can change it from that dingy depressing lower level to a positive bright and cheery area. It doesn’t cost that much to have a handy many paint the basement walls and floor. This also will bring back great returns. Make sure if you have any suspect cracks or seepage that you have that examined by a basement inspector or contractor before you paint. You don’t want buyers thinking you covered up a potential problem.

By upgrading your home in a frugal and targeted way, you can use foreclosures to your advantage when selling your home. A buyer will walk through those discounted properties and then compare to your home. They will see the incredible difference between that home that is in distress and your home which gives a sense of a property that has been cared for. A buyer will pay a great premium for the luxury of move-in condition verses having to break the bank just to make the home habitable, let alone a home they could be proud of.

A good first step is to have your real estate agent view your home and make recommendations as to what areas to pay attention to. They will also give you referrals of trusted and reliable contractors who can do the job at a fair price. Start these improvements today. Don’t wait as you never know when you may want to move. If your home has been upgraded, you can then put your home on the market when it is the right time for you and the best selling time of the year. In addition, you will be proud to invite your family and friends over. Most importantly, you can enjoy the benefits of your newly updated home!

I joined the Optimist Club about 10 years ago. Although I had many not so positive thoughts prior to joining, I thought it would give me direction and new perspective on my life. As an example of the true optimism of my club, we first met at a hospital every morning at 7:30. Demands for space pressured the hospital to give us notice to find a new location. We then began meeting at our new venue, the nursing home. We met for about a year and they too asked us to find a new location as their demands for space forced their decision. You can guess where we meet now… a funeral home! I’m not kidding. I dread to think where our next location will be. You know we are an optimistic bunch!

At our club we recite a creed about optimism which I thought I would share with you today. This creed has guided me over the years when events and daily trials and tribulations began to wear on me. The creed has healing powers if you truly try your best to understand and live by the 10 statements. Why don’t you read the creed, and see if life can be enjoyed more, and lived fuller if you make an effort to see life as half full.

Promise Yourself:

• To be so strong that nothing can disturb your peace of mind.
• To talk health, happiness and (more…)