One Small Step for a Seller... One Frightening Leap for The Buyer!!!

            There are a lot of things in this world that are intimidating.  Your first foray into the stock market or your first public speaking engagement and surgery for example can be pretty unnerving.

            Then, there are the things in life that are downright frightening – like finding a snake in your bathtub or re-wiring your own home. Scary in different way, maybe, but either of these can lead to a 9-1-1 call. 

            There’s not a lot we can do about snakes.  Snakes happen.  But unless you’re an engineer or an electrician, you’d better leave the electricity to the experts.  

            If you’re considering buying a house, one of the most unnerving and intimidating parts of the process is the actual offer.  How much is enough?  How much is too little?  How does the price of this house fit into the prices of the other houses in this neighborhood? 

            Location, location, location is really important, but paying too much for a house in a great location is not what anyone wants to do.

            On the other side, if you’re the seller, you have the same problem in reverse.  You don’t want to sell for too little, but you also don’t want to overprice your home.  Overpricing is the quickest way to a house that sets records for most days on the market.

            This is not an award you want to receive.

But, I Don’t Know What to Do!

           

            Researchers say that stress is caused by a situation that is out of our control.  In addition, our sense of stress is only magnified by situations where we don’t know what to do.

            Enter the real estate negotiation. Sellers have no control over what a buyer will offer, buyers have no control over what a seller will accept. 

            And no one knows what to do. Or even what the rules are.

            Though life would be simpler if there were some hard and fast rules for negotiating, unfortunately, there just aren’t.  There are, however, some guidelines that will be helpful when you’re deciding what to offer on a house.  Or deciding how to counteroffer.

Information is King

           

            Let’s start with the offer.  If you’re working with a Realtor, take advantage of all he/she has to offer.  Although a Realtor, depending on agency laws in your state, could make recommendations, it is your money.  Only you know how you want to spend it. 

            If you haven’t already received it, have your agent run you the comparable sales in the neighborhood. These constitute the best way to determine what you’ll eventually pay for your new house.  The information you’ll receive is some of the precise information an appraiser will use to determine value for your lender.

            It’s true that every buyer is looking for a “deal”.  At the same time, every seller is looking to make the most out of their home. 

            Don’t forget this.  To you, it’s a great house or you wouldn't be making an offer.  But that great house is the seller’s home.  Maybe their children have grown up there.  Maybe, it’s the place they've gathered around the tree on Christmas mornings. Their memories have happened there. 

            When you’re deciding what to offer for a house, don’t forget there’s a sentimental attachment on the seller’s side.  Ignore that sentiment and you might offer so low, the seller is insulted.  When that happens, you’ll watch your “deal” fly out the window. 

            And you could be looking for another option.

And In This Corner…  

            Information is still king. A look at what houses have sold for in your neighborhood will tell you approximately what to expect when you’re listing your home.

            It’s hard to look at things from the buyer’s side, but it’s best to put aside your sentimentality and be practical.  Although you may love your home and you have no doubt paid attention to every detail, don’t forget an appraiser will be the final say in what your house is worth.  It won’t help if the buyers agree to pay full price and find out the bank won’t lend on it because it won’t appraise.

            A quick word about appraisers:  Some things that are a definite improvement to a home, such as landscaping or a new roof, don’t add one shiny dime to the appraised value.  Appraisers have guidelines that force them to concentrate on the structure itself, not any of the landscaping or even a pool.  You’d be shocked to learn how little value an appraiser places on a pool.  Even though it cost you thousands of dollars to install, you’ll only get a fraction of that on the appraisal. And new roofs are essential. Bft it already had a roof, right?

            There is an old adage that all Realtors know. Your first buyer is almost always your best buyer.   If your house has been on the market only a short time and you got an offer, be glad.  Be thrilled, even.  It’s tempting to think, “If I got this offer so quickly, someone will pay my full price.”  

            Maybe.  After several more months of showings.  

            Perhaps

            As your granddaddy probably said, “a bird in the hand is worth two in the bush”.  Especially, when you might have to wait six months for that second bird.

And The Winner Is…

           

            When the buyers have the right information, they’ll know what they should offer for a home. 

            The seller will already know what to expect because he did his homework before he listed.

            So who wins in a negotiation?  You do.

            And it wasn't scary at all.

            

Just How Big a Deal is Curb Appeal?

         We've all seen the television show.  They find a worthy family, take their dilapidated, practically  falling down house, and Voila! They replace it with a mansion -- in just a few days. Or from our point of view, in an hour.  It's a fun show to watch, with extraordinary results and the opportunity for a good cry.
          If you're so inclined.
         
Yeah....
          It would be nice to be able to spend a few days and replace your house with a mansion.  And let someone else pay for it. Really nice.  Here in this little place we call the "real world", we're just trying to make the house we have look amazing.
          Here are a few tips for your Not-So-Extreme-Home-Makeover.

                 
          Everyone knows what "curb appeal" is.
          And we know what it isn't.
          Unlike a lot of real estate terms that are thrown around with abandon, curb appeal is pretty self-explanatory.  Consider the above photo.  Chances are pretty good that if that house had a "For Sale" sign in front of it, no one would make an appointment.
            Curb appeal makes the buyer want to come inside.

            If you’re the seller, you want that. A lot.

            Here's the good news.  Enhancing your curb appeal does not mean you have to spend a lot of money. Or make your house look like a mansion.  Curb appeal lies in the little stuff -- the details you probably don't even notice anymore.
            
Curb Appeal is For Everyone!

            Now that it's finally here, Spring is a great time to take a good long look at your home -- even if selling is not in your plans.  Your home is ... well, your home.  Dressing up your house is kind of like dressing yourself up for an evening out. It just makes you feel good.
            And you'll be surprised at how many little things can be done to improve the exterior of your home for just about the price of a new outfit and an elegant dinner.  

Say Cheese…   

      

            If you've read this blog before, you've probably figured out that cameras are one of my favorite tools.  And favorite toys. Even if you're not a camera nut like me, there's something about a picture that helps to distance you from a subject.  And if that subject just happens to be a house you're very familiar with, a picture is the quickest way for you to see what a stranger might see.
           To begin your Not-So-Extreme-Home-Makeover, take several pictures of the exterior of your house and take a moment to study them.  Does the trim seem faded or dirty, does the siding need a bath? Have the shrubs grown up over the front windows?

            At this time of year, you're probably seeing what most of us would see -- the end of a hard winter.  The flowerbeds look shabby and tired, the siding and/or brick needs to be power-washed to remove the residue of rain and snow and ice and mud and ...
             Have I mentioned how much I love Spring?

Love At First Sight

            A buyer’s first impression of your home often centers on the front door. If your house is beautiful, but the front door is peeling or faded or damaged or just plain ugly ... well, you get the idea.  It's like a gorgeous model showing up on the red carpet in a stained, torn dress.  You know she's beautiful, but it's kind of hard to look away from the stain.
            Adding pizzazz to the front of your house can be as easy as painting the door.  If paint won't fix the problem, you can replace it for as little as $100.  Brighten things up with a snazzy new color, polish the hardware and clean the glass.  Be sure you clean the casing around the door while you’re at it.  You’ll be amazed at how much this one simple and cheap step can improve your home’s appearance.
            Before you shop for paint colors for your door, you'd better look with an unbiased eye at your siding, brick, trim and guttering.  Most of the time, it will look fresh and clean with a simple power wash but if it's been several years, it might be time to paint.  Paint is your home's protection against the elements, so don't put it off.  Delaying will only cause more maintenance down the road.
            

Accessorize, Accessorize....

           

            Ideally, you want your home to have that "Wow!" factor that sets it apart from other homes in the neighborhood. Depending on the style of your home, shutters or window boxes might be just the touch you need.  Either option is relatively inexpensive, easy to install yourself and can be done in a weekend.  There’s nothing quite like window boxes overflowing with flowers to add charm to your home's exterior.
           And to charm a potential buyer.

            It's easy to overlook the driveway and walkways but if the surface is cracking and weeds are sprouting through, it can ruin the look of your home.  Spend a little time killing weeds and filling cracks.  You can even use bricks or flagstones to add a walkway or to widen the parking space you have.  They’ll add an elegant touch to what is usually just a boring slab of gray.

           

Bring Me Flowers!

           

            There was a time when having flowers in the front of your house meant a lot of extra work, weeding and mulching and weeding again.  Fortunately, we live in 2013.  Container gardening is a great way to add a splash of welcoming color to the front of your house without all the hassle. You can buy containers already overflowing with flowers at any garden shop or nursery.   Fill your porch with color.  With a little water, it will look beautiful all summer. 
            Of course, if you really want to bring me flowers....

        

Shave and a Haircut

            I know I don't need to tell you that your lawn and flowerbeds need to be trimmed and neat and tidy.  In addition to the basics however, there are several simple things you can do to improve the landscaping without spending your life's savings.

            Build a new flower bed or simply clean out the old ones and start over.  It's astonishing how much new plants and a new design will update the look of your home.  If you don't feel qualified to decide on a new design, your local nursery will happily supply you with ideas.  
            Landscaping is the not-so-secret key to making your house the most attractive house on the block.  But one word of caution here. As much as landscaping will improve the look of your home, it sadly doesn't add any money to an appraiser's determined value, so bear that in mind when you're planning.  

Set boundaries

            Sometimes a little definition is in order. Fencing can do much more than keep the dog and kids in the yard. Make sure any existing fencing is straight and clean and the gates are working properly.  If you don’t have fencing, consider adding some.  You don’t have to completely fence the yard to change the look of your house.  Adding vinyl fencing and a gate that stretches from the side of your house to the property line will accomplish the same thing for a fraction of the cost. 

            Another great way to add definition is to give your mailbox a makeover. This might be as simple as buying a new mailbox at your local hardware store or planting a small ring of flowers around the base of the mailbox you already own. Whatever you choose to do, make sure it matches the style of your home.  Your mailbox should be an extension of your home’s overall appearance.

            Outdoor lighting is another dramatic and effective way to add interest to your home.  Luckily, you can accomplish this without extensive wiring.  Solar lighting is not as bright, but can still add accents to landscaping or trees at little cost.

The Bottomline

            If you’re willing to set a few weekends aside, everything on this list could be accomplished for a few hundred dollars.  And the payoff is not only enhanced curb appeal for your potential buyers.  It’s a new sense of pride in your home.

            And of course, the envy of your neighbors.