Mt. Horeb Area Real Estate Blog

Did I say Clean? Because what I meant was REALLY clean.

I hate it too.  But you must do it.  Every inch.  Here are the spots most sellers miss:

• white grout

• door handles of white appliances

• around door knobs (no, that isn't the wood aging naturally--its grime!!!)

• water/ice dispensers

• cobwebs in ceiling corners

• dirty or paint stained trim

• Heating vents caked with dust/dirt

• Bathroom fan vents caked with dust

Buyers literally do not want to have to do anything when they move in, and they especially do not want to have to clean up after you.  A dirty house or a cluttered house looks and feels like a LOT of work. Don't be that house.  Beat out your competition because I guarantee you have it!

Spring Brings Hope Eternal

(at least I think that's the quote)

This is the time of year when many buyers and sellers decide to "wait until spring".  However, the real estate store is open all year round.  Some of the transactions that worked out the best for all parties happened right around the holidays--even during heavy snow storms.

In my history, March and April are  the months with the most  transactions closed.  That means the buyers were out in the middle of Winter home shopping.  The best advice I can give someone who is looking to sell "in the spring" is to get your house on the market right after New Years.  Every year, I am surprised at how early the phone starts ringing off the hook.  And  every year its earlier.

Buyers...Sellers get more hopeful in the spring--Hopeful that your low offer will be beat by one of the many buyers that hit the home buying market in the spring.  Sellers have time to wait in the spring. With most sellers putting their homes on the market early in the year, that is also when there is the best inventory of homes.

And then there is the interest rate equation.  They are low right now--5.5% or there abouts most places.  If you were previously looking at 6% this can save you about $60/month on a house payment.  If you were at the 6.5 % we were at last week, then this is over $100 savings on a home payment/month.

No matter what the season, homes are always for sale. There are just as many benefits to NOT waiting as there are for waiting...

Price Denial Syndrome

Realtor Magazine ran an article about what David Knox, a real estate trainer in Minneapolis, called "Price Denial Syndrome".  It is what many  sellers (but not ALL) are cursed with in today's market. 

Sellers afflicted with this condition tend to resist the reality that they must lower the listing price of their home, unwilling to accept that the days of the boom market are gone, said Knox, who spoke at the REALTORS® Conference & Expo in Orlando last week.

Common symptoms of Price Denial Syndome include blaming their Realtor for suggesting a price reduction and trying to justify why buyers would pay the higher price.

But here's the truth: Homes are simply not going to sell if they are overpriced in the current market. In a hot market where demand outstrips supply, overpriced homes might sell, but “in a falling market, overpriced homes sit unsold,” Knox said.

Here are some commonly hear price reduction objections from sellers: (excerpted in whole & in part from Realtor Magzine)

• “We really need the money.” I am completely sympathetic to this situation. And don't take this the wrong way, but it isn't the buyer's problem.  A buyer will not overpay because you need the money.  That may put them in the same boat 6 months down the road.  Unfortunately, if you need to sell, it may have some financial repercussions for you.
• “We can always reduce the price later.” A property that lingers on the market too long is often plagued by constant price reductions to generate buyer interest. The more price drops, the more buyers keep waiting for more. The home will likely sell for lower than what it should and take much longer to sell too.
• “Could we just try it at this price for two weeks?” Buyer activity is highest when it’s just listed so don’t turn off the serious buyers at the beginning.
• “They can always make an offer.” Some buyers won’t even look at a certain price point so you’ll likely be excluding buyers who would be more serious about purchasing it if you don’t price it appropriately, Knox said.

Buyers are  also afflicted with Price Denial Syndrome in that they absolutely refuse to believe ANY house is priced at or below market value.  Some buyers are waiting for the market to bottom out before they act:  “We want to buy at the bottom of the market.”  “But you can’t buy what it was – only what it is,” Knox said. By the time the market starts to turn around, they’ll be buying on the way up and likely miss out on lower interest rates and face multiple offers with sellers less apt to negotiate.

This is true of buyers waiting until spring. What is the quote about Spring bringing hope?  Well, that is where sellers are in the spring.  There are so many more buyers out in the market that sellers get hopeful that another offer is just around the corner.  If the house is a gem, you are also more likely to be competing against multiple buyers.

Staging Helps

"Pros Make a House Look Like Home to Lure Buyers"
Washington Times (10/29/08) Goff, Karen Goldberg

Home stagers have experienced a boost in business due to the weak housing market, as they are specialists in accessorizing properties so that they appeal to buyers. Not only do they suggest which belongings should be removed from the home, but they also furnish vacant homes, suggest home improvements and transform undefined spaces into rooms that have a clear purpose. "The way you live in a house and the way you market it are two different things," according to International Association of Home Staging Professionals founder Barbara Schwarz. "In a slower market, you may have 100 houses for sale and only 10 will sell. The ninety that don't probably weren't staged." The National Association of REALTORS® confirms that staged homes spend, on average, 50 percent less time on the market than those that are not. Stagers say homes of all sizes benefit from their services, noting that staging lower-end homes in cookie-cutter developments can give them a competitive edge.
For more information: http://www.stagedhomes.com/mediacenter/stagingstatistics.php

As a Realtor with a staging credential, my staging services are part of my listing services--at no additional charge.

Staging Commandment #141:  Thy home shall not don window clings.

Signing In

I held an open house yesterday and it occured to me once again how much easier everything in the world would be if everyone followed the golden rule:  do unto others as you would have them do unto you...

You see no potential buyer likes signing in at open houses or giving the host agent any information about themselves.  However, all sellers want to know everything about every person that comes in their house and get frustrated with their agent when they can't answer questions.  And since almost all buyers are one day sellers and sellers often become buyers...YOu see how the golden rule could really help out here...

And if you want to get technical, per the legal listing contract a seller signs, sellers are responsible for all parties that enter their home.  It is a responsible practice for sellers and/or agents to collect names in case there is ever a need to prove or disprove a situation.  It is rare that such situations arise, but just think how helpful that sign in sheet could be if ever needed...

Is Mt. Horeb Recession Proof?

In case you missed the article in last week's Mt. Horeb Mail, you can click here to read!  Realtors speak out about local housing market.

October Market Stats

As my idol in St. Paul likes to say, the following statistics are from our Southwestern Wisconsin MLS and are deemed reliable but not guaranteed.

If you'd like to receive these monthly stats for your community or neighborhood, shoot me an email and I'll put you on my list!

Mt. Horeb

• 8 homes sold

• Average sale price of $262,780 (about 96% of list)

• 4 of those 8 were $300,000+

• Additional 6 homes have accepted offers or offers pending

Verona

• 8 homes sold

• Average  sale price of $307,087 (about 97% of list)

• 6 homes about $300,000 or more

• Additional 9 homes with accepted or pending offers (1/2 of which are over $300,000)

Blue Mounds and Barneveld--sorry guys--no action there last month except for accepted offers on a few farm properties.

Kids in the House

If you have kids in your house that you are trying to sell, you know that their "stuff" is one of your top staging dilemmas.  Aside from getting the kids to keep their rooms clean, there are a few other selling strategies I suggest you employ.

1)  You must put it in storage.  I walk into homes exploding with toys.  Kids can't possibly play with it all.  Keep their favorites out and pack the rest away.  When you open those boxes at your new house, it will be like Christmas!

2) Actually have a kid friendly space.  If you think your home attracts young families with kids, putting away all evidence of children makes it hard for potential buyers to imagine where their kids will play.  I'm not saying to leave all the toys out in a toy room, but having a few keys child friendly clues can help a buyer visualize.  If you don't have kids, but again, but live in a "kid magnet" neighborhood", you may want to create this type of space also.

3)  For the kid stuff you do keep out...You will need to develop some hiding strategies in the main living spaces.  Decorative storage like wicker trunks and baskets or smaller boxes for quick hiding are good ideas.  Bad idea:  lots of rubbermaid dressers that you use as end tables in your living room. 

4) De-accessorize their rooms!  Too much stuff on the walls and dressers is distracting for buyers.  If your market is extremely competitive, I would argue to de-genderize the room too.  If a family of all boys is looking at a home with all girls...they immediately think of all the work they will have to do to get it ready for their boys.

I understand that all this is life changing and hard to do imagine if your home may be on the market awhile.  I can tell you it will be on the market a lot longer if some of these changes are not made!  Remember:  how you live in your house and how you sell your house are two different things! 

Showing Your House 101

I was hoping that HGTV had disspelled the myth that the smell of freshly baked cookies or the right scented candle was the key to a successful showing or open house.  Unfortunately, there are still some people stuck in that mode.  There are really only TWO things within a sellers control for a  positive open house: 

1)  You must overly clean your house.  I don't mean just vacuum and dust.  I mean degrime your faucets, clean the tile grout, the burner pans on your oven, the handles on your frigerator door--clean it all.  It is a must in today's competitive market! 

2)  Declutter.  Some owners have done a great job at depersonalizing and getting rid of knick knacks.  However, there is still a fair amount of daily life that comes with clutter that you should remove for showings and open houses. 

• Clear counter tops of the utensil holders, small appliances (toasters, can openers, etc), and cutting boards.  When in doubt, clear it all out.
• Don't have sponges or hand towels or even dishracks in the sink.
• Pet food and water dishes should be out of sight.
• Office areas should look organized and very streamlined. I would hide as much as you can!

You can bring all these things back out to live in your house...just have a place for them for when potential buyers are coming through. 

It's important to remember, too, that potential buyers often look behind shower curtains, in cupboards and pantries and in closets.  You can "shove" it all in there, but it should still look organized.  Otherwise it truly is a charade and buyers don't like to feel like they are being "faked out".

Good luck and go get 'em!

Price Check

I walked away from a listing last week.  The home, while beautiful, is priced about $20,000 above everything else in its desirable neighborhood.  It's on a better lot than some of those homes, but then again it is also smaller without any finished basement space.  And since they wouldn't lower their list price, I didn't take the listing.  I knew I couldn't truly represent them when I didn't believe in the price. 

I know that when you take their list price and deduct all fees and taxes, they probably are making less on the home than it cost them to build.  The problem is...buyers don't care.  They aren't going to over pay on current market values to help out a seller.  My job is to consult with people on how to sell the house.  What would sell that house is a price drop. Their options, therefore, are sell the home for a loss or wait.

These are tough times to be selling in those higher price ranges.  The only things seller control are price and condition.  If the location is good and the condition is great, the only thing left to play with is price.  If you must sell, and your home isn't, you probably need to lower the price.