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    Entries in sell house now (2)

    Saturday
    Dec172011

    Home improvements to make (and skip)

    If you're preparing to sell your home, you may wonder which improvements you absolutely need to make to find a buyer in today's market at the best possible price.

    In my experience as a real estate appraiser, a brand new kitchen or bathroom will add to the overall value of your home, as will new, high-quality windows.

    However, it is important to consider whether you will recoup your investment before moving ahead. You may be better off pricing your home lower to reflect the existing condition of your home, especially if you would like to move soon.

    Also weigh the expectations of buyers in your community and think about the properties to which they will be comparing your home.

    If most similar homes around town have high-end kitchens, a home with a utilitarian or dated one may suffer a significant dip in value. However, if you live in a community of modest means, potential buyers may not be expecting new top of the line appliances and granite counter tops, and it therefore may not hurt your home value much if your kitchen isn't a showstopper. In fact, it may not be a good idea to add such expensive improvements, because you will then have to price yourself out of your market to get back your investment. A good broker can guide you on this.

    Broken or damaged systems in your home--such as the plumbing, electrical system or HVAC system--will negatively affect the value in virtually any community. The same holds true for roof leaks. You will generally need to fix such problems or to make a concession in your selling price that reflects the market reaction. A problem like a major roof leak may make it extremely difficult to sell your home at all, and it may require very significant concessions. 

    There are some improvements that are generally not worth it. For instance, some home sellers paint the rooms of their home in designer colors. Doing this may not win points with buyers, because they may not have the same taste. And an appraiser will not appraise your home at a higher value because you invested in pricier sage green paint instead of off-white. Save the money for other improvements that will really make a difference.

    Remember, you're leaving, so your goal should be to spend as little as you can to make your home as appealing and valuable as possible. 

     

     

     

     

     

     

    Sunday
    Dec112011

    Price your home to sell

    Even if you know that home prices have dropped in your market, finding out what your home is worth right now can feel like a kick in the gut. 

    As I learned in selling my own house, the quicker you adopt realistic pricing, the faster your will sell your house. Just when we thought we couldn't take the pain of lowering our price any more, prices dropped further, leaving our home a little over priced for the market. It was only when we swallowed hard and priced it at what our broker said it was worth--and not 5 or 10% higher--that we sold it immediately. (Being a real estate professional doesn't mean you're immune to optimism!)

    What is realistic pricing? A good real estate broker should be able to help you do a study of recent sale prices of comparable properties in your area to guide you. A seasoned broker will also have a sense of what the comparable properties in the neighborhood are. As a layperson, it's easy to talk yourself into thinking that your 30-year-old condo is equivalent to the brand new one that went up across the street, so it is important to get a referral through word of mouth to a broker who will tell it like it is. You might not like what the broker has to say, but if you truly need to sell your home, it is important to listen and act on the broker's advice.

    If you're selling your home without a broker, sites such as Zillow can give you an idea of the going rate for similar homes in your area. Be brutally realistic with yourself about which homes are similar, so you don't set the price so high that your home languishes on the market. 

    "Wait a minute," you may be saying. "I put in granite countertops! The master bathroom is brand new! I spent $2,000 on landscaping and $8,000 on a new furnace last year." Even if you've done amazing things to improve your home, it is unlikely that you will be able to sell it for much more than the most recent sales in its category. If property values in your town have dropped 30% since the recession, then there is little chance that your home was the only one immune to the price decline. 

    Okay, that's the bad part. The good news is that if you price your home attractively out of the starting gate, you'll increase the likelihood of a quick sale. And, if values are still collapsing in your area, you'll improve your chances of selling your property before it is worth less--and free yourself from "house arrest."