4 Pitfalls to Selling Your Home for the Best Price in the Shortest Amount of Time

You've decided to sell your home. Great! Now what? Many folks who make the decision to sell their home fall victim to the following four pitfalls. By educating yourself about some common missteps you can save yourself from making a costly mistake when hiring an agent and listing your home.

1) Overpricing - It's no surprise that every owner wants the highest possible sale price for their property. This desire is one that some agents take advantage of by selling you on an unrealistically high list price. Once they have a signed listing agreement they'll bank on price reductions to sell your home. The problem with this tactic is that it costs homeowners thousands of dollars. A property that is originally listed too high not only squanders its first few weeks on market but also carries a stigma throughout its life on-market due to the unrealistic original list price. All this results in lower demand down the road and a lower sale price. It's important to remember when interviewing agents that the highest suggested price is not always the best. Make sure to ask your agent for specifics on how they arrived at their price suggestion.

Experience shows that the highest price is realized within the first 30 days of being offered for sale on the open market.

2) Not Managing Expectations - Real estate is very much a perception based industry. Buyers want to feel like they are receiving good value. Many times agents try to stretch the truth by counting a glorified hallway as an extra bedroom, only to have potential buyers disheartened when actually viewing the home. One of the jobs of a good agent is to accentuate the home's positives and frame things in a way that adds perceived value to a home. Rather than listing a home with an extra bedroom, listing it with a utility room can turn a disappointed buyer into an excited one as they discover a useful extra space. Many times in our industry perception is reality and buyers who leave a property feeling great about all the "additional" value a home offered will be far more likely to put in an offer than those who left disappointed about the tiny bedroom.

As a Realtor, we have an obligation to relay the information about a house honestly.  Further, we also request the seller fill out a “Seller’s Statement of Condition”.  We follow up by verifying information with the appropriate local authorities to clarify such potential questions such as zoning, side-line setbacks, etc.  This helps to avoid surprises that could impact the transaction.

3) Not Making the Best First Impression - You know the old saying a picture is worth 1,000 words? Well in real estate they are probably worth 100,000. Too many times sellers allow their agents to take photos with a cell phone or take photos themselves. Today's buyers are making snap decisions viewing homes online and are basing these judgements off your photos. Hence they need to be high definition, clear, and purposeful. You are telling a story with your media plan and want to entice buyers to see your home in person. The single best way to turn off potential buyers is with poorly lit, poorly edited, and poorly executed photos. Additionally, video is becoming huge in real estate as even more of the house hunting process is taking place online. Ask your agent about adding HD Video to your listing to further entice interested buyers to your property.

As your Realtor, I will be at all showings early, in order to turn on the lights, de-clutter, put the dog out, etc.  When we list your home, we’ll offer suggestions on how best to present your home to prospective buyers.  Some can overlook your personal “stuff”, and some can’t.  Don’t take the chance!  Put your best look forward!  Studies have shown that landscaping can increase the amount realized by as much as 5%!

4) Not having a Customized Marketing Plan - Our last pitfall is one that many sellers fall into. Many agents you will interview will not have a specific plan to market your home. They will instead rely on scripts and a standard listing presentation to get you to sign on the dotted line. After that they'll simply list your home on MLS and hope buyers find it. Marketing for homes cannot be one-size-fits-all. Every home has a distinct set of buyers that will be interested in it and every set of buyers has a distinct way to be reached. Ask your agent who your home will appeal to and how they plan to proactively market to them. If their plan relies heavily around submitting your listing to hundreds of sites you've never heard of you may want to stay away.

We do have a marketing plan with aspects that some agencies do and some that most agencies do not.  Our agent will go over it with you and tailor it to your needs and concerns.  The best current information indicates that the internet is the number one method of attracting buyers; signs continue to be number 2!

Psst! Harvard Talks Homeownership!

Harvard: 5 Financial Reasons to Buy a Home Eric Belsky is Managing Director of the Joint Center of Housing Studies at Harvard University. He also currently serves on the editorial board of the Journal of Housing Research and Housing Policy Debate. This year he released a new paper on homeownership - The Dream Lives On: the Future of Homeownership in America. In his paper, Belsky reveals five financial reasons people should consider buying a home. Here are the five reasons, each followed by an excerpt from the study: 1.) Housing is typically the one leveraged investment available.  “Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.” 2.) You're paying for housing whether you own or rent.  “Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.” 3.) Owning is usually a form of “forced savings”. “Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.” 4.) There are substantial tax benefits to owning.  “Homeowners are able to deduct mortgage interest and property taxes from income...On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.” 5.) Owning is a hedge against inflation. “Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.” Bottom Line We realize that homeownership makes sense for many Americans for many social and family reasons. It also makes sense financially.  - courtesy of KCM - Keeping Current Matters

Psst! It's About More Than Real Estate!

Hoft Farm is a 90+ acre preserve in West Tisbury managed by the Nature Conservancy.  It's open to the public and there are walking trails through it's various eco systems.  You can find out more about the projects on the Island of the Nature Conservancy by visiting their site (nature.org).  The Conservancy has been a vital part of the preservation of the Island's beautiful and bountiful places for many years.

Why You Should Visit Located on Martha's Vineyard, this parcel of pitchpine and oak woods, freshwater ponds and scenic open field has some of the most intact and healthy morainal woodlands found anywhere from Long Island to Cape Cod.

Location West Tisbury, Martha’s Vineyard

Size 90 acres

Why the Conservancy Selected This Site The Hoft Farm property offers a unique perspective on the history of Martha’s Vineyard’s natural landscapes and the impact of humans on these landscapes. The 90 acres include a number of parcels of land in various stages of use and recovery.

What the Conservancy Is Doing A farmhouse on the property is a private residence (not open to the public) is used as a field station to support ecological research and to house burn crews. The burn crews conduct prescribed burns on the islands each spring and fall.

Time to Take Your House Off the Market?

Many sellers feel that the spring is the best time to place their home on the market as buyer demand increases at that time of year. However, the fall and winter have their own advantages. Here are five reasons to sell now.

Only Serious Buyers Are Out

At this time of year, only those purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere 'lookers'. The lookers are at the mall or online doing their holiday shopping.

There Is Far Less Competition

Housing supply always shrinks dramatically at this time of year. The choices for buyers will be limited. Don't wait until the spring when all the other potential sellers in your market will put their homes up for sale.

The Process Will Be Quicker

One of the biggest challenges of the 2013 housing market has been the length of time it takes from contract to closing. Banks have been inundated with both purchase and refinancing loan requests. Both of these will slow in the winter cutting timelines and the frustration these delays cause both buyers and sellers.

There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 25% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with historically low interest rates right now. There is no guarantee rates will remain at these levels in years to come.

It's Time to Move On with Your Life

Look at the reason you decided to sell in the first place and decide whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells. The time has come for you and your family to move on and start living the life you desire. That is what is truly important.

Courtesy of KCM - Keeping Current Matters.

Ignoring Insurance Risks Can Be Costly

One of the first stages during the hunt for a new home is crunching the numbers to figure out your budget. And no matter how high or low that budget may be, prospective homebuyers should take into consideration the cost of insuring the home. It's easy to overlook insurance, especially since you may be more worried about the number of bedrooms, the school district, or the size of the backyard. But before you can close on the purchase, your lender will require you to line up homeowners insurance. You may be hit with some sticker shock if the home you are about to buy ends up being a high risk- and therefore high cost- home to insure. Once you’ve got a few homes in your sight, you should get some preliminary home insurance quotes on each property. Just as you will compare asking price and property taxes- figure your insurance costs into the equation as well. Even homes of similar size and style can vary greatly in terms of cost to insure. Here are a few lesser known home features that affect insurance costs: Location- The location of a home will have a huge impact on the insurance premiums due to the proximity to a fire station, the fire station ratings and the flood zone it’s located in. When you shop for homeowners insurance you will be asked how close the home is to a fire hydrant and to a fire station. In the event of a fire, the quicker the fire department can respond to the home, the less damage will be incurred. The average claim for a residential fire exceeds $33,000, according to the Insurance Information Institute (III). Therefore insurers typically charge lower premiums for homes within a close proximity of each. Fire stations in each community each have a specific fire protection class rating which also affects the home insurance premiums on a home. Last but certainly not least, the specific type of flood plain that a home is located in may require you to carry a separate flood insurance policy in order to obtain a mortgage. Flood insurance is recommended for all properties, however, in certain high-risk flood plains a flood insurance policy is not only required- but the coverage could double your annual insurance spend. Roofing- Ask your realtor about the home's roof. You'll want to know how old it is and the material it's made of. Roofs that are 20 or more years old can be considered high risk and may be expensive to insure. Replacing a roof also can be costly so you'll want to weigh the pros and cons. Newer roofs, built with impact-resistant material, are ideal. These roofs are made to withstand nature's harshest elements, and they can also qualify homeowners for more preferred home insurance policies. Swimming Pool- You might be looking specifically for a house with a pool but you should know swimming pools can drive up your insurance premiums. Accidents frequently happen in and around pools so insurance companies see them as a high-risk home feature. Remember, you can be held liable even if a trespasser has an accident at your pool. For this reason, homes with swimming pools located on the property should meet all local safety codes and carry high limits of liability coverage. Age- The age of the home can also affect your premium. Typically older homes have outdated electrical wiring and plumbing systems, which can lead to fires or water damage. If you are considering an older home, ask your realtor the age of the plumbing, HVAC and electrical systems. If they have been updated in recent years, this is important to note with your insurance agent. If not, make sure you know what this may cost you in additional premiums and to upgrade in the future. Security equipment- Security equipment is a plus for obvious reasons- items such as burglar alarms, deadbolt locks, and smoke alarms can make your home a safer environment. In addition, insurance providers offer discounts for homes featuring these items. In fact, you could save 10% or more on your premium. Take note of the types of safety devices in the homes you are comparing so you can get accurate discounts figured into your insurance rates. You likely won't make a decision on a house because of insurance factors alone. But it's best to have an idea of where you stand as you consider your options. Start by checking out average home insurance rates in your state. Then work with an agent you can trust to compare quotes on various properties. An educated search can help you find the home of your dreams and home insurance premiums that won't break the bank. Carrie Van Brunt-Wiley, editor of the HomeInsurance.comBlog.  The HomeInsurance.com blog serves as a resource center for insurance consumers and homebuyers across the country.

For Sale by Owner? Prepare to Negotiate!

In a recovering market, some sellers might be tempted to try and sell their home on their own (FSBO) without using the services of a real estate professional. The real estate agent is a trained and experienced negotiator. In most cases, the seller is not. The seller must realize the ability to negotiate will determine whether they get the best deal for themselves and their family.

Here is a list of some of the people with whom the seller must be prepared to negotiate if they decide to FSBO:

• The buyer who wants the best deal possible
• The buyer’s agent who solely represents the best interest of the buyer
• The buyer’s attorney (in some parts of the country)
• The home inspection companies which work for the buyer and will almost always find some problems with the house.
• The termite company if there are challenges
• The buyer’s lender if the structure of the mortgage requires the sellers’ participation
• The appraiser if there is a question of value
• The title company if there are challenges with certificates of occupancy (CO) or other permits
• The town or municipality if you need to get the Cos permits mentioned above
• The buyer’s buyer in case there are challenges on the house your buyer is selling.
• Your bank in the case of a short sale.

And this is just one side of the transaction!  Add into this the time required to be available to show 

the property - and at it's best advantage!  No wonder real estate sales is a profession!  Hire a 

Realtor for this most important transaction.

- courtesy of KCM - Keeping Current Matters.

A 3% Inflation Rate Will Affect Sales

This from Lawrence Yun, Chief Economist for the National Association of Realtors.

The most recent U.S. inflation rate has clocked in at a manageable 2 percent.  This level is not inherently worrisome for consumers.  But pressure is building, and rates are expected to trend higher.  Apartment rents and home owner equivalency rents (a fuzzy hypothetical figure of what home owners would pay to rent out their homes) are both increasing more than 2 percent annually and could soon approach 3 percent.  Persistent housing shortages and falling rental vacancy rates are behind the rising rates.
Because housing costs make up the largest part of the consumer price index, these increases are significant.  But other sectors contribute to inflationary pressures, too.  Medical costs, which have been rising more gradually in recent years (they should record their slowest price gain in 40 years in 2013) are likely to head back up.  Energy costs are also rising sharply.  Crude oil prices were up 19 percent from a year ago, while natural gas prices jumped 23 percent.
The only component of the CPI (consumer price index) that is falling pertains to electronic devices.  And even those drops are not absolute price declines. (If a new model sells for the same price as the old model, statisticians compute it as a decrease though consumers get no price break).
So if inflation spikes from 2 percent to 3 percent, does this create significant hardship for consumers or the overall economy?  More than you might think.  That's because as inflation ticks up, so do mortgage rates.  If inflation rises to 3 percent by 2015, which is more likely than not, mortgage rates will have to rise by a full percentage point to compensate lenders for the loss in purchasing power of the money returned to them.  A one percentage point increase on a $200,000 loan will increase the monthly payment by $167.  On a $500,000 loan, the payment rises by $417.
So yes, inflation matters and it will accelerate in 2014 and 2015. . . .

---published in Realtor magazine (a publication for real estate professionals)

What does this mean for you?  If you are thinking of selling, do it now to have a wider spectrum of buyers who are able to purchase your home.  Each percentage point increases in interest rate drops a buyer's purchasing power by 10%.  If you're buying, read the prior sentence.
We will (hopefully) never see the kind of interest rates that put a standstill to the housing market that we saw 30 years ago (imagine 17 percent interest rates!!), so despite tighter guidelines for mortgage approval and economic indicators that continue to cause concern, it is still the best time to get on with your life and buy that home you've dreamed of.  Call a Realtor today.