Home Selling Guide | Selling Your Home

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Needing More Room: Should You Sell Or Renovate?

from our BLOG

The house that you bought three, five, or even ten years or more ago was the perfect home for your needs at that time. Fast forward to today and the way that you live has changed, so much so that your current living arrangement is cramped or out of date.

Should you sell your home or should you opt for a renovation? Not an easy question to answer, but one that can be answered by asking yourself several lead up questions. There aren’t any right answers, but the way that you answer each question and the weight that you give to each will. Let’s take a look at several questions you may want to ask yourself:

What are the property values in your neighborhood? Are they going up, down, or are they staying flat? If you’re in a market where prices are falling, selling now could mean that you might lose some money unless the home that you are considering buying has also dropped in price. Pay close attention to real estate agent comps!

Where is the new home located? The further the new home is away from your current residence, the greater your expenses of moving will be, never mind the hassles related to making any move. If you’re staying in the neighborhood, your costs will be limited mostly to moving charges and closing costs, but if you leave your zip code your moving costs will increase, your kids may need to switch schools, your car and homeowners insurance rates could change, etc.

Would your home benefit from a renovation, particularly an expansion? If you need an extra room and a bath, your newer home won’t be much larger than the home you previously had. However, if you’re considering an entire addition that will add 50% more living space to your home, how will your newly renovated home compare with homes in the neighborhood? Homes that dwarf the size of houses on the same street rarely return their full investment.

Will your needs be met regardless of the choice made? Will renovating your current home or moving to a new one resolve your living space needs for the long term? If you’re simply looking at getting an extra room for your teenager, renovating attic space may be the most cost effective renovation chosen. If you’re family is still growing, a new home could be the better choice.

Of course, other factors should be considered when making any change:

Is your job stable?
Will you need to make another change within the next few years?
Do you like your current neighborhood?
Can you do some of the remodeling yourself?
If you choose to move, will you rent a truck and move everything yourself?

Finally, map out the amount of living space you will need over the next five years and compare renovating your current home to buying a larger home. Whether you choose to renovate or sell, having all of the information in front of you is the best way to make a sound decision.

Home Selling Tip

for the weeks of: Jan 29

Why Sell Your Home ...

There are several reasons for selling - but before you make that decision, review the number to determine if selling is the best option at this time.

Weekly Tip:
view analyze home selling reasons

Good News Continues To Bolster Some Housing Markets

from our BLOG

Home prices remain depressed in some areas of the country, but for other areas prices continue to rise. This good news/bad news scenario can be different for buyers or sellers from market to market.

Many local housing markets are offering near equal measures of good news and bad news when it comes to buying and selling homes.

In some markets the good news is that housing prices are continuing to drop, making it easier for prospective homeowners to buy a home. Throughout much of California this holds true, especially in locales where foreclosures are still high, dragging down home values. Of course, this latter bit of information is bad news for sellers, especially those who are finding themselves upside down in their mortgages (owing more on their homes than what they are worth).

In other areas, the good news that housing prices are continuing to rise, allowing home sellers to see some gains on the sale of their homes. The bad news for buyers is that they’ll have to pay more for their homes, but their is a silver lining for even buyers — these markets which include Raleigh, NC; Grand Junction, CO; and Oklahoma City according to Zillow.com which tracks housing values with its Zindex survey.

Some prospective buyers are trying to time the market to jump in when prices bottom out. This is a risky game to play as it is virtually impossible to tell when a market has quit dropping. Statistics supporting housing trends are usually delayed by several months. This means that you could end up waiting too long to jump in and end up paying thousands of dollars more for your home.

Many home markets peaked some time in 2006; although further declines are still possible, some of these same markets are edging closer to beginning their recovery.

Zillow currently tracks the housing activity in 160 housing markets and has discovered that while 130 of the markets have seen their home values drop within the past year, 144 markets have returned positive annualized appreciation over the past five years. This means that if you bought your home in 2003 you shoudl be in good shape, but for some people who bought their homes in late 2005 or 2006 they could be in negative equity territory.

So, what is the best advice for buyers and sellers right now? Find out how your local housing market is performing and price your homes accordingly. A site like Zillow gives you a decent measuring tool on home values and real estate sales comparables (comps) from your realtor can give you a clear picture on the market today.

Save Even More With FSBO

from our BLOG

FSBO or For Sale By Owner remains a popular marketing alternative for people who are buying or selling a home. Sellers like them because they can cut out the realtor’s commission, thereby saving them thousands of dollars while buyer’s like them because they usually can find a home at a good price.

However, just because a home is listed FSBO doesn’t make it a good deal. In fact, there are some things both the seller and buyer can do to help close a deal quickly and at a price acceptable to both parties. Read on and we’ll examine how a seller and a buyer can make FSBO work for them:

If You Are The Seller

Secure Your Home’s Market Value — Prior to putting your home on the market, you’ll need to get it professionally appraised. Hire an appraiser who can help you determine a price for your home, the same price that a realtor would recommend your home be listed for.

Get Ready For Show — Assess the interior and exterior of your home and spruce it up as needed. Remove excess furniture, touch up the walls with paint, clear the clutter off of the kitchen counter, plant new flowers, and trim shrubbery. You may need to tackle additional improvement projects when the home inspection report is completed; anticipate what needs to be done before the home sells now to avoid rushing around later.

Start Marketing — Selling FSBO means a big time commitment, something that should be considered before doing it yourself. List your home in Craigslist and find a good FSBO site to feature your home. You’ll need a For Sale and information holder to place in front of your house, with plenty of pamphlets or sheets listing your home’s many features. Price your home at our below its appraised amount, but no lower than 5% lower or you cancel out the reason for not using a realtor in the first place.

If You Are The Buyer

Ask For A Copy Of The Appraisal — Dealing directly with the owner puts you at a good advantage, allowing you to ask the seller questions directly. Secure a copy of the seller’s appraisal and do your own market analysis on the neighborhood to confirm that the house is being sold for its appraised price.

Make An Offer — Most FSBO homes are placed on the market for the same price a realtor would list the home for. This means that the seller has some latitude when it comes to price. You probably can’t shave a full 5-6% off of the price of the home, otherwise the seller basically loses the money they would have paid in commission to you. On the other hand, if the home has been on the market for several months, offering 3% below the appraised value of the home can be a fair middle ground for both parties.

Get An Inspection — An independent inspection (that you pay for) from a trained home inspector can be the most valuable investment you make. Once you have the completed report in hand, ask the homeowner to handle whatever items should be addressed. The homeowner could counter and slash his price and ask your to handle repairs or simply refuse to address major problems. Estimate the cost of these repairs and subtract them from your final offer.

Toward Completing A Satisfactory Transaction

Once an agreed upon price has been reached and repairs made, then you’re ready to set a closing date. As a seller, your organization skills have paid off; as a buyer, your diligence has been rewarded resulting in a home at an attractive price.