fbpx

5 Criteria for Pricing a Home

When you decide to put your home up for sale, one of the best ways to determine the asking price is to look at comparable sales. There’s rarely a perfect apples-to-apples comparison, so a pricing decision often relies on comparisons to several recent sales in the area. Here are five criteria to look for in a sales comparison.

  1. Location: Homes in the same neighborhood typically follow the same market trends. Comparing your home to another in the same neighborhood is a good start, but comparing it to homes on the same street or block is even better.
  2. Date of sale: It varies by location, but housing markets can see a ton of fluctuation in a short time period. It‘s best to use the most recent sales data available.
  3. Home build: Look for homes with similar architectural styles, numbers of bathrooms and bedrooms, square footage, and other basics.
  4. Features and upgrades: Remodeled bathrooms and kitchens can raise a home’s price, and so can less flashy upgrades like a new roof or HVAC system. Be sure to look for similar bells and whistles.
  5. Sale types: Homes that are sold as short sales or foreclosures are often in distress or sold at a lower price than they’d receive from a more typical sale. These homes are not as useful for comparisons.

Homes compete with other homes!  Since Location is ALWAYS of primary consideration while buyers are comparing your home to others on the market, understanding the local dynamic of properties is also key  –  Age, builder, yard size, updates, deferred maintenance, traffic, environmental factors and yes schools.  Data alone does not tell the whole story so location of the agent should also be a primary concern hen requesting a competitive market analysis.  For best results, keep it local!

Read more

Investments for Home

Best Financial Investments for Your Home

Over the last couple of years, rehabbing TV shows have become increasingly popular. In these shows, people fix or introduce new features to their homes while adding substantial market value to the house in the process. If you own a home, you can make many of these types of fixes or additions to increase the value of your home, too. You can also enjoy these changes for as long as you live there. Some of the best financial investments you can make to your home include:

Major Problem Fixes

The first high-return investment you should make in your home is to correct all major problems. If your home has serious issues, such as a broken air conditioner or a pipe leak, fixing those issues should be priority No. 1. Repairing or replacing the roof and siding can be a great investment, and potential buyers will generally factor in both the time and cost of having to fix it. Problems like these are always easier to fix when they’re small than later after having put them off.

Exterior Improvements

Investing in the facade of a home can also bring great returns. Replacing garage doors is one of these investments. If your garage door looks new, your house will look new, as well. Painting the outside of your home is another good investment in the exterior. If you don’t want to take the time and money to fully repaint your home, pressure-washing can be a quick way to make the outside of your home look much more presentable.

Entryway Improvements

Another good investment is to invest in a new entryway door. Like the garage door, the front door is important in making a good first impression on a potential buyer. Replacing your front door with a steel door can also make your home safer; increasing the safety of your home can be another great selling point for a potential buyer. Replacing windows is another way to make the outside of your home look better, as well as improve the home’s energy efficiency.

Fixes and additions to the inside of your home can be a great financial investment. A fresh coat of paint to the interior can add value by making the home look cleaner and brighter.

Update Bathroom, Kitchen and Appliances

Improving your home’s bathroom, particularly visible elements such as vanities, lighting, toilets and tubs, can create a high return. For bathroom improvements, you may obtain a better return on investment by spending your money on items in the bathroom that a potential buyer would see, instead of completely gutting the bathroom.

Kitchen remodels can be another way to significantly improve the value of your home. For kitchen remodels, you’ll want to spend money on functional items such as cabinets, drawers, pantry doors and appliances. Appliances such as refrigerators don’t have to be completely new, but they should keep up with current trends. Kitchen remodels should also suit the home. A kitchen that looks like it belongs in a $300,000 home will feel out of place in a $150,000 home.

Adding high-efficiency appliances to a home can modernize it and also save you money on electricity. Some states and cities have tax programs that could reduce your taxes if you buy and use high-efficiency appliances that require less electricity.

Overall, you should research the investment potential of your home before making any purchase. If you are trying to increase the value of your home, you need to make sure your fix or addition will increase the value of the home not only for you, but also to potential buyers.

This article is intended for informational purposes only and should not be construed as professional advice. The opinions expressed in this article are those of the author and do not necessarily reflect the position of RISMedia.

Posted on Nov 22 2017 –  RisMedia Housecall, By Craig Middleton

Read more

Go it alone, or use a Realtor

6 Reasons You Should Never Buy or Sell a Home Without a Local Agent

It’s a slow Sunday morning. You’ve just brewed your Nespresso and popped open your laptop to check out the latest home listings before you hit the road for a day of open houses. You’re DIYing this real estate thing, and you think you’re doing pretty well—after all, any info you might need is at your fingertips online, right? That and your own sterling judgment.

Oh, dear home buyer (or seller!)—we know you can do it on your own. But you really, really shouldn’t. This is likely the biggest financial decision of your entire life, and you need a local Realtor® if you want to do it right. Here’s why.

1. They have loads of expertise
Want to check the MLS for a 4B/2B with an EIK and a W/D? Real estate has its own language, full of acronyms and semi-arcane jargon, and your Realtor is trained to speak that language fluently.
Plus, buying or selling a home usually requires dozens of forms, reports, disclosures, and other technical documents. Realtors have the expertise to help you prepare a killer deal—while avoiding delays or costly mistakes that can seriously mess you up.

2. They have turbocharged searching power
The Internet is awesome. You can find almost anything—anything! And with online real estate listing sites such as yours truly, you can find up-to-date home listings on your own, any time you want. But guess what? Realtors have access to even more listings. Sometimes properties are available but not actively advertised. A Realtor can help you find those hidden gems.
Plus, a good local Realtor is going to know the search area way better than you ever could. Have your eye on a particular neighborhood, but it’s just out of your price range? Your Realtor is equipped to know the ins and outs of every neighborhood, so she can direct you toward a home in your price range that you may have overlooked.

3. They have bullish negotiating chops
Any time you buy or sell a home, you’re going to encounter negotiations—and as today’s housing market heats up, those negotiations are more likely than ever to get a little heated. You can expect lots of competition, cutthroat tactics, all-cash offers, and bidding wars. Don’t you want a savvy and professional negotiator on your side to seal the best deal for you?
And it’s not just about how much money you end up spending or netting. A Realtor will help draw up a purchase agreement that allows enough time for inspections, contingencies, and anything else that’s crucial to your particular needs.

4. They’re connected to everyone
Realtors might not know everything, but they make it their mission to know just about everyone who can possibly help in the process of buying or selling a home. Mortgage brokers, real estate attorneys, home inspectors, home stagers, interior designers—the list goes on—and they’re all in your Realtor’s network. Use them.

5. They adhere to a strict code of ethics
Not every real estate agent is a Realtor, who is a licensed real estate salesperson who belongs to the National Association of Realtors®, the largest trade group in the country.
What difference does it make? Realtors are held to a higher ethical standard than licensed agents and must adhere to a Code of Ethics.

6. They’re your sage parent/data analyst/therapist—all rolled into one
The thing about Realtors: They wear a lot of different hats. Sure, they’re salespeople, but they actually do a whole heck of a lot to earn their commission. They’re constantly driving around, checking out listings for you. They spend their own money on marketing your home (if you’re selling). They’re researching comps to make sure you’re getting the best deal.

And, of course, they’re working for you at nearly all hours of the day and night—whether you need more info on a home or just someone to talk to in order to feel at ease with the offer you just put in. This is the biggest financial (and possibly emotional) decision of your life, and guiding you through it isn’t a responsibility Realtors take lightly.

For more info, visit Realtor.com.

Read more

New Home Construction

Thinking of Building your “new” home?

Buying a new home is exciting. You get to build your dream from the ground up, choosing your lot, your model, interior finishes and upgrades. But like any home purchase, buying new construction is serious business, an expensive transaction with many financial implications – current area comps, long-term value, lot position, area utility, “included” features and upgrades that add Value (& ROI), loan options and more all require consideration.

That’s why it’s a good idea to obtain representation from a Realtor® when considering a new home purchase to answer your questions objectively and protect your interests.

Builder sales reps represent the builder.
Most often builders have their own agents on site to answer questions, assist people who walk in, and ultimately help with a purchase. Builder reps provide a valuable service: They can explain differences between models and floor plans and share information about financing options, upgrades and specials. But it’s important to remember that builder reps represent the builder, as they are contractually obligated to do.

Realtors are trusted local resources for real estate information and can help home buyers navigate the increasingly complex home-buying process,” said National Association of Realtors President Gary Thomas. “The buyer agency agreement ensures the buyer that his or her Realtor will represent the interests of the buyer alone and not the seller.

Common Misconception:  “Going to the builder will save you money”
In most cases this is not only incorrect but may have the reverse results, and actually cost you money.  All builders factor in marketing and commission expenses (if they wish to stay in business).  In fact, many depend on local agents to bring their buyers.  Even when they have an in house sales team the motivated buyers in the market are typically working with an agent.

A Local realtor will know the local comps and be skilled at discussing how the  new construction home will measure up over time based on current trends. Additionally, your Realtor will be a voice of reason when selecting options and upgrades that may or may not bring long term value to your home at time of resale.  Regardless what HGTV says, those upgrades are tied intimately to the norm of the area comps – that is to say that a $50,000 kitchen may be overboard for the area and return a street & an appraisal value of ~$10,000 when you go to sell. See my post regarding appraisal factors – http://gerardigroup.com/home-appraisals/

Some builders offer a hook to “save” you money
One of the less discussed scenarios a builder may use to avoid working with Realtors is that they either own their own brokerage or partner with an agency to list your current home at a “discount”.   What’s worse is the sell it or we buy it scenario – like Las Vegas, the cards are stacked for the builder.  If it is a discount on sales commission you are seeking, many local realtors will offer you a break on selling your home if you buy a new home with them. Why is this important:  are they builders or realtors, and is it simply a shell game to distract from the core issue = how much does the new home cost and what is it worth in today’s market?

Another tactic is using their lender…
Of course, what could be easier than buy direct from the builder, visit a hopped up model, drink their cool-aide and … (drum roll) use their lender.  These should send the hair up on the back of your neck and launch all the red flags in your brain as it is a distraction away from the price.  Why is this an important:  While the appraisal process is supposed to be arms length, the builder’s lender has skin in the game and the only thing between the buyer and the closed sale is the appraisal… the one that may be at least partially bias.

Bottom Line, you need ALL the info you can get your hands on
The cost of building is going up in both materials and labor.  Buying a home is the most important financial decision most people will ever make.    A local professional realtor can assist you with understanding the value of your investment before you take the plunge. Since Realtor fees are paid by the seller (in this case by the builder), consulting a Realtor should be a first step.  And when it comes to selling your home, note that 3% of the commission typically goes to a buyer agent – this is true with builder broker’s taking on your home. So, what do you really save?   Without all the data available to you, you may be risking more than a point or 2 in commission.

For additional information, contact Sam @ the Gerardi Group for market analysis, return on investment values and current trends.

Read more