Be the Shiny Penny!

Well, I must say that it’s been quite a long time since I’ve blogged, but I’m back on the horse, so to speak, and will have lots to talk about in the days & months ahead. Life has been a little crazy since late last fall, with some exciting new adventures we’ve been involved in. But, as I said, more on that to come later.

As most people know, the national real estate market has taken quite a beating since the lending crisis exploded last August. As a result, home sales have slowed dramatically, foreclosures are way up & prices in some parts of the country have fallen more than 30%. Most people have been left scratching their heads, wondering what’s coming next. I know many Realtors who feel this same way, as they’ve seen their businesses fall flat. During the first quarter of 2008, more than 1,900 agents left our local MLS. Surely more left in the second quarter, but those stats aren’t out yet. This is probably a good thing, by the way.

Our business is definitely off from the pace of the last 4 years. Volume has been down by about 40% over this same time last year. It hurts, but you have to be prepared for ups and downs in this business. Fortunately, we were. Real estate booms & busts are cyclical. This “bust” will boom again, too. It’s just a matter of time. We are already seeing an increase in home buying activity in our area and specifically in our own business.

There is pent-up demand for housing out there, but many buyers are waiting for “the bottom” of the market. Honestly, I don’t know where that is. Two things I can tell you, though. 1. There are more homes available for sale now than in several of the last years and many home sellers have already purchased something else (are “contingent”) or are being relocated, so they are very motivated to sell. This means that buyers have more negotiating power than they have had in a long time; not just on price, but on practically everything. Terms are abundant! 2. We will only know that we’ve hit the “bottom” of the market when prices start shooting back up. That will happen when most of the current inventory has been sold. This means that once the general public & the media become aware of the “bottom” of the market & start to talk about it, those buyers waiting for it will have waited too long – it’ll be gone and so will these great deals. If you’ve been waiting to buy, do it now. Strike while the iron is hot!

If you need to sell your home now, you might be thinking that you’re in for a long, rough road. And, you might be, unless you make your home really stand out from its competition. Ok, sounds good. But how do you get started? The first thing you want to do is go out and see other homes for sale in your neighborhood that are the most similar to yours. Open houses are a great way to do this. Look at them with a critical eye. Are the homes clean & in good repair? How do they look from the street? (we call this “curb appeal”). Can you clearly see the house? Is the paint & trim in good condition? Has the yard been cut & cared for? Does the landscaping look neat & tidy, or is it all overgrown or worse, dead? Is the roof in good repair & clean? Are there toys or other clutter in the yard or stacked against the house?

How do the homes smell when you walk inside? Do they smell fresh, or like wet dogs or dirty cat litter boxes? Do they smell strongly of food or musty? As you continue through the homes, are the carpets clean & look new or well cared for? How about the condition of the hardwood floors? Are the homes light & bright, or dark? Have they been freshly painted or are there marks on the walls? How is the furniture arranged, & what is its condition? Does the home flow well, or do you have to step around bulky pieces of furniture or other clutter? Take notes at each home, paying special attention to things you really liked and those that you didn’t. Be brutal, because the buyers that come to your house will be, too!

Now, the hard part. Go home & look at your own house with those same critical eyes, starting at the street and working your way through and out to the back yard. Ask friends & neighbors to come through and give you HONEST feedback about your house. Don’t be offended by their constructive comments – take them to heart! They are just trying to help you. As you go through your own home, note those same things that you did in the others – the good and the bad. Then, put some time (& yes, money) into fixing those things that need to be done. You need to rise above the rest to sell in this market, so do what you need to, to make this happen.
Most homes will need at a minimum to have the landscape cleaned up/new bark put down, exterior trim repainted (if not the whole house - at least spray the mildew & moss off!) roof/gutters cleaned, carpets cleaned, the home de-cluttered & at least some rooms, if not all, repainted - in neutral tones. No more purple living room & pink kids' bedrooms. Paint them a nice, neutral & warm tone.

When you are selling your home, less is more in terms of the furnishings to be kept inside, especially if you have a smaller home with bulkier furniture. Only keep the best pieces inside. That old, dirty recliner your husband loves may be comfortable, but if its ugly or worn out, take it out! Heck, you’re moving anyway, so why not just pack up all of those old high school trophies & souvenir mugs & plates now, too? Take down your wedding pictures, clear off the refrigerator & "de-personalize" the house so potential buyers can envision their own belongings in there. Arrange the furniture you leave inside in a logical manner that flows well with the lines of your home. Finally, hire a good, professional housecleaner to come in and really make things smell fresh and all of the shiny bits sparkle!

Once you’ve done these things, you're miles ahead of your competition. Now its time to interview some Realtors and get the sales process started. In my next blog entry, I’ll talk about interviewing & selecting an agent that’s right for you. You won’t want to miss this one!
Happy Selling,

Tim