Spring is the busiest time of the year for selling a home. The trees are budding, the grass is green, the songbirds return, and homebuyers feel the urge to begin their home-buying search.
January is one of the best times for home-sellers to begin the home-selling process. If you are planning to sell your home in the spring, January is the time to start moving. Successful home-sellers know there is more to selling a house than simply putting a “for sale” sign in the front yard, negotiating the top price for their home, and handing the keys over to the next homeowner. In today’s economy, your home has to sparkle to differentiate it from the competition. The drive-up must be inviting, the interior must be spotless, and the price must truly be competitive.
January is a good time to put the yard and exterior of the home back in “drive-by” condition. A brisk January day is a good time to clean up the debris blown into your yard by the winter winds. Rake up the stray leaves and trim the dormant bushes and hedges. If it is warm enough, wash the windows and wash or repaint the exterior doors. Clean the rain gutters. And while you have the ladder out, take down the Christmas lights. The lights looked nice in December, but now, some of the bulbs are burned out, so take them down. The new buyers can design their own lighting scheme next year.
January is also a perfect time to spread some weed and feed fertilizer on the lawn. Make sure the grass really is greener at your house than the other houses on the block. A tidy, green lawn will help your house sell quicker.
January is also a good time to get the interior of your home ready for the spring selling season. While preparing to sell your home, take some time to really inspect your home’s interior. Enter your house and look at it the way a new buyer will look at it. Pretend you are visiting for the first time. Now, start removing things. Donate or sell the items you really don’t use, put away the items of sentimental value and remove the items that are truly high-value. Remove everything you don’t want lost, broken, or touched.
The candlesticks you received as a wedding present from Grandma 20 years ago may be nice, and the dusty Kitchenaid mixer, sitting on the kitchen counter, will be handy when you make Halloween cookies in 10 months, but new buyers won’t appreciate them. The same goes for your child’s first-grade drawing proudly posted on the refrigerator door. They all have meaning to you, but put them in storage! They detract from the house.
Donate the sneakers you purchased to run the marathon you never entered. Pack that high school prom dress you will never wear again. No matter how nice your “stuff,” buyers want to see your house, not your possessions or memories. You are planning to move so pack your keepsakes, unused kitchen tools, and clothes that are too small, too old, or too outdated to wear.
You really won’t miss the items, and buyers will be able to “see” the house more clearly. You are selling your house, not your stuff … so remove it. The more you remove, the bigger your home will appear to prospective buyers. Rent a storage space if you have to and clean out the closets. It will be money well spent!
After removing all the clutter (including most of your family pictures), start cleaning. Really clean. A quick vacuum of the carpet will not make your home “showroom ready” to potential buyers. Deep clean. Have the carpets professionally cleaned, scrub the tile and vinyl flooring, clean the baseboards, wipe down the door and window frames, disinfect the bathrooms, and scour the oven and cooktop.
Do it all! If the walls have spots that can’t be cleaned, paint the walls. If the carpet can’t be cleaned, replace the carpet. Everything you do today to improve your home’s appearance will pay dividends when you sell, either through a higher price, a quicker sale, or easier negotiating. Buyers tend to “horrible-ize” any blemish in a house and hold your house to an idealized standard. Remember, the used house you are selling is a buyer’s new house, so they expect it to be in new-house condition.
Finally, after all the yard work is complete and the interior pristine, you are ready to begin the most competitive portion of the home selling process … pricing and marketing. I recommend speaking with a Texas REALTOR® to maximize your competitive edge when marketing your home. According to the National Association of REALTORS® 2011 Profile of Texas Home Buyers and Sellers, only 8% of sellers sold their home without the assistance of a real estate agent, and half of those sellers knew the buyers prior to the home sale. If you don’t already know the name of the next buyer of your house (only 4% of sellers do), can you really afford to miss the remaining 96% of the buyers?
Interview several Texas REALTORS®, ask them for their professional opinion of the value of your home, request a comparative market analysis, known in the real estate business as a CMA (and usually provided free of charge) of similar homes in your area, compare marketing plans presented by these Texas REALTORS® … and, finally, listen to their advice.
To sell your house this spring, start the process now. Dig out the cleaning supplies, de-clutter your house, call a Texas REALTOR®, and get started. Today.
Monday, February 13, 2012
Tuesday, February 7, 2012
Do the math … affordability of homes depends on many factors
I did some math this morning when I saw 30-year mortgage rates still under 4%. That’s unbelievably low.
How low? For a median-priced Texas home of $150,000, monthly mortgage and principal payments come to $716. Compare that to December 2000, when the median-priced home was only $128,500 but interest rates were 7.65%. Plug those numbers into a mortgage calculator and you’ll get a monthly payment of $912.
So we’re talking about $196 less per month today compared to December 2000 … even though the actual median price of homes is $21,500 higher now. That’s a savings of $2,352 during a year or $70,560 over a 30-year loan.
Now, there are other factors involved. First, you have to do more these days to qualify for a loan than simply ask for one. Home prices in your neck of the woods may be higher or lower than the median. (Or perhaps your taste in homes is higher or lower than the median.) And if you really want to sharpen your pencil, you can figure out inflation, property taxes, your own income, and so on.
The point, though, is this: Low interest rates give buyers incredible buying power. If you’re wondering what you can afford or what it takes to qualify for these low rates, talk with a Texas REALTOR®.
How low? For a median-priced Texas home of $150,000, monthly mortgage and principal payments come to $716. Compare that to December 2000, when the median-priced home was only $128,500 but interest rates were 7.65%. Plug those numbers into a mortgage calculator and you’ll get a monthly payment of $912.
So we’re talking about $196 less per month today compared to December 2000 … even though the actual median price of homes is $21,500 higher now. That’s a savings of $2,352 during a year or $70,560 over a 30-year loan.
Now, there are other factors involved. First, you have to do more these days to qualify for a loan than simply ask for one. Home prices in your neck of the woods may be higher or lower than the median. (Or perhaps your taste in homes is higher or lower than the median.) And if you really want to sharpen your pencil, you can figure out inflation, property taxes, your own income, and so on.
The point, though, is this: Low interest rates give buyers incredible buying power. If you’re wondering what you can afford or what it takes to qualify for these low rates, talk with a Texas REALTOR®.
Thursday, January 26, 2012
Don’t take anyone’s word for it
Negotiations were tense when I bought a used backyard play house for my two-year-old. The seller wanted $60. I countered with $50. We consulted our attorneys, faxed amended offers back and forth – include the plastic fireplace logs or no deal – but finally settled on $52.75.
Write it down
Alright, I exaggerated a bit. I did buy a play house, but I just called a guy who posted an ad, haggled for a minute on the phone until we agreed on a price, then showed up the next day with the money.
While verbal negotiations are a good way to buy a $60 toy, they’re a lousy way to buy a real house. Even if your initial offer to a seller is in writing, any subsequent counteroffers should be in writing, too.
It’s your word against someone else’s
Think I’m paranoid? Let’s say you submit a written offer on a home, and you and the seller verbally negotiate until you agree on a price and terms. You’ve bought a house, right? Wrong.
Until your agreement is in writing and both parties have signed it, that seller could accept another offer. Talk to a Texas REALTOR® to learn the best way to expedite negotiations and make them legally binding.
Write it down
Alright, I exaggerated a bit. I did buy a play house, but I just called a guy who posted an ad, haggled for a minute on the phone until we agreed on a price, then showed up the next day with the money.
While verbal negotiations are a good way to buy a $60 toy, they’re a lousy way to buy a real house. Even if your initial offer to a seller is in writing, any subsequent counteroffers should be in writing, too.
It’s your word against someone else’s
Think I’m paranoid? Let’s say you submit a written offer on a home, and you and the seller verbally negotiate until you agree on a price and terms. You’ve bought a house, right? Wrong.
Until your agreement is in writing and both parties have signed it, that seller could accept another offer. Talk to a Texas REALTOR® to learn the best way to expedite negotiations and make them legally binding.
Friday, January 6, 2012
The next level of clean
Aside from the necessary intrusions, the most inconvenient aspect of having your house on the market may well be keeping the house in showing condition.
Making a good impression on buyers is very important. It's not a huge leap for a potential buyer to equate a cluttered or dirty house with poor maintenance of the overall structure, systems, and appliances. Whether accurate or not, this can or result in a lower offer than the home might otherwise bring … or worse, discourage an offer altogether.
Getting rid of clutter and keeping up with the constant cleaning can be a full-time job, so it helps to get help from everyone in the family. Even if you are neat and organized and keep a clean home, showing condition is another level. Keeping the house at such a level can be overwhelming. It may even benefit you to hire a short-term professional service to help ease your burden.
Some buyers may call for last-minute appointments to see your home. If it has gotten too messy, you may find that you simply can't spend the time to get it ready for a showing.
If you do find out you've only got a few minutes and it looks like a West Texas wind storm just swept through your house, pick up what you can and stow it somewhere—the trunk of your car, the washer and dryer, maybe even the dishwasher. Sure, they may take a peek inside your appliances, especially if they're conveying with the sale, but there's also a good chance they won't and your secret will remain safe.
You may even rent a storage space for your old furniture and other large or off-season items.
Keeping your house in prime condition when it's on the market is tough, but many hands make light work. Don't neglect this important part of selling your home—it may make a huge difference and considerably shorten the process.
Making a good impression on buyers is very important. It's not a huge leap for a potential buyer to equate a cluttered or dirty house with poor maintenance of the overall structure, systems, and appliances. Whether accurate or not, this can or result in a lower offer than the home might otherwise bring … or worse, discourage an offer altogether.
Getting rid of clutter and keeping up with the constant cleaning can be a full-time job, so it helps to get help from everyone in the family. Even if you are neat and organized and keep a clean home, showing condition is another level. Keeping the house at such a level can be overwhelming. It may even benefit you to hire a short-term professional service to help ease your burden.
Some buyers may call for last-minute appointments to see your home. If it has gotten too messy, you may find that you simply can't spend the time to get it ready for a showing.
If you do find out you've only got a few minutes and it looks like a West Texas wind storm just swept through your house, pick up what you can and stow it somewhere—the trunk of your car, the washer and dryer, maybe even the dishwasher. Sure, they may take a peek inside your appliances, especially if they're conveying with the sale, but there's also a good chance they won't and your secret will remain safe.
You may even rent a storage space for your old furniture and other large or off-season items.
Keeping your house in prime condition when it's on the market is tough, but many hands make light work. Don't neglect this important part of selling your home—it may make a huge difference and considerably shorten the process.
Tuesday, January 3, 2012
Texas economy still best; 2012 looks to mirror 2011
On New Year’s Eve, many bid farewell to the old year by singing “Auld Lang Syne” lyrics that include, “Should old acquaintance be forgot and never brought to mind.“
Apparently, it will be hard to forget 2011 because 2012 is expected to look pretty much like it.
If the experts are correct, however, Texans will again have more to sing about in the New Year than will their fellow Americans.
Texas: Slow but still leading
Real Estate Center Chief Economist Mark Dotzour, Ph.D., sees “modest, positive economic growth” for the nation in the next 12 months. Nationally, he expects 2012 to look something like 2003-06.
By comparison, Dotzour predicts a “much more robust economic outlook” for Texas in the coming year. He bases this on documented evidence that Texas dramatically outperformed the United States in 2011.
The state’s positive job growth came not only in the energy industry but also in construction, manufacturing, retail, transportation, professional business services, health care, and hospitality.
“Job growth is occurring in nearly all Texas metro areas and is likely to continue into 2012,” says Dotzour.
Apparently, it will be hard to forget 2011 because 2012 is expected to look pretty much like it.
If the experts are correct, however, Texans will again have more to sing about in the New Year than will their fellow Americans.
Texas: Slow but still leading
Real Estate Center Chief Economist Mark Dotzour, Ph.D., sees “modest, positive economic growth” for the nation in the next 12 months. Nationally, he expects 2012 to look something like 2003-06.
By comparison, Dotzour predicts a “much more robust economic outlook” for Texas in the coming year. He bases this on documented evidence that Texas dramatically outperformed the United States in 2011.
The state’s positive job growth came not only in the energy industry but also in construction, manufacturing, retail, transportation, professional business services, health care, and hospitality.
“Job growth is occurring in nearly all Texas metro areas and is likely to continue into 2012,” says Dotzour.
Tuesday, November 29, 2011
Photo Card
Initially Merry Christmas
Personalize your holiday card this Christmas with Shutterfly.
View the entire collection of cards.
Wednesday, November 23, 2011
Why pricing your home from a Web site could cost you thousands of dollars
Home valuation Web sites are great … except when they’re wrong … which is most of the time. If you want to read a lot on this topic, check out this article from SmartMoney, “The Fuzzy Math of Home Values.” If you prefer the summary, here goes:
Some real estate Web sites like Zillow and Homes.com estimate the value of most homes in the U.S. But even the sites themselves will tell you their numbers are often off. Way off.
In Texas, Zillow rates their accuracy one star out of four. Even for states with four-star accuracy, the valuation is off by at least 20% about a quarter of the time. (If I were younger, I’d end the last sentence with five or six exclamation points.) And the values for Texas properties are even worse than that?
Think about it. If you sell your home for 20% less than it’s worth, you’ve just lost a big chunk of change. Overprice by 20% and your home will languish on the market.
Sure, online home valuations are fun, but when I’m ready to sell my home, I’m going to work with a Texas REALTOR®.
Some real estate Web sites like Zillow and Homes.com estimate the value of most homes in the U.S. But even the sites themselves will tell you their numbers are often off. Way off.
In Texas, Zillow rates their accuracy one star out of four. Even for states with four-star accuracy, the valuation is off by at least 20% about a quarter of the time. (If I were younger, I’d end the last sentence with five or six exclamation points.) And the values for Texas properties are even worse than that?
Think about it. If you sell your home for 20% less than it’s worth, you’ve just lost a big chunk of change. Overprice by 20% and your home will languish on the market.
Sure, online home valuations are fun, but when I’m ready to sell my home, I’m going to work with a Texas REALTOR®.
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