5 Reasons Your Home Is Not Selling In A Hot Market

The market can be challenging for people who want to sell their homes as quickly as possible. There are plenty of options available for buyers out there, so they can afford to be picky when it comes to finding their dream home. If your home has been on the market for a few weeks, don’t worry because you are not alone. There are a few small factors that play a big role in why another home sells more quickly than yours does. However, those things are easy to fix and once they’re addressed your home will fly off the market. Here are five reasons why your home is not selling in a hot market.

Pricing Concerns

One of the main reasons that homes don’t sell quickly is because they are overpriced or inaccurately priced. The first thing people notice when they’re searching for a home is the price, they know their price range and most people can’t, or won’t, stray from their budget. Most buyers think that because they paid a certain price for their home in the beginning and put some pricey improvements into it, that they are entitled to put their home on the market for a much higher price than what they paid. The economy is still tough, so people aren’t as willing to pay for the extra things if the home isn’t accurately priced according to the average price range of other homes in the area.

So, what can you do to make sure you’re home is accurately priced? You should consult more than one real estate agent and ask them how much they think your house is worth based on comparable homes that they have seen. Even if you think the price is too low, don’t ignore them or your home will continue sitting on the market without selling. You might have made some pricey upgrades, but if other homes in your neighborhood don’t compare, people won’t want to dish out the extra cash.

Marketing

Marketing your home means a few of things, and the lack of marketing can be a big factor in why your home has been on the market for so long without selling. The exposure your home gets to potential buyers is one thing and how you market your home once somebody enters it is another. Most people think that placing a for sale sign in your front yard is enough, but it isn’t. People won’t just drive by, see the sign and place an offer. You need to get your home out there in the virtual space and let people know about all of the details that make your home better than other ones that are currently on the market.

To give your home more exposure, consider hiring a professional photographer to take pictures of the main selling points in your home. Utilize online advertising to sell your home because let’s face it, it’s free and you would be silly not to take advantage of it. You want to give your home as much exposure as possible to potential buyers and give people a reason to want to see it in person. As long as you market your home adequately, you will draw buyers in. After you add curb appeal and some home staging techniques, your house will market itself.

Curb Appeal

The lack of curb appeal can be a huge factor that is causing your home to sit on the market for so long without selling. The curb appeal of your home is very important and plays a huge role in how quickly your home sells because it is the first thing potential buyers notice when they pull up outside. If your lawn isn’t trimmed or there is clutter on your front porch, some people might think that the rest of your home isn’t worth seeing because if you don’t put any work into the exterior, the interior is probably a disaster. Additionally, if there is absolutely nothing that draws them in, there is a chance that they will walk away right then because they see it as a project that they will need to put work into. Most homeowners want a home that is move-in ready, not one that they will have to work on right off the bat.

There are a ton of simple and inexpensive ways to add curb appeal to your home that will make it more attractive to potential buyers. For starters, trim the grass and the bushes. This doesn’t cost any extra money, it just takes time. Taking the time to make the lawn look well kept will pay off in the end. To add something extra, planting flowers in a variety of colors is a great way to make the landscaping look more visually appealing. Flowers will give your home the extra pop that it needs to attract potential buyers. Lastly, if you have the space on your front porch, add a bench or chair. It is a little something extra that makes the outside of your home look beautiful and welcoming.

Lack of Staging

The lack of staged rooms in your home can also be a factor in why your home is not selling as quickly as you would like. Staging a room, or a few rooms, is easy and can be as inexpensive as you need it to be. By making a few changes, you can make the space inviting and grab the attention of any potential buyer. The people who are viewing your home want to be able to picture themselves in it and staging rooms is the best way to help them do that.

How do you stage a room, you might ask? It can be as simple as making a few minor changes. First you want to get rid off all the clutter that might be in the space. This will help you kill two birds with one stone because you have to pack up your belongings sooner or later. You should also do your best to neutralize every room in the house. When you live in a home you want to customize it and make it your own; but when you’re selling, you want to remain neutral so the potential buyer can consider what they would do with the space.

After you’ve de-cluttered and neutralized your home, it’s time to get to the fun part. Add colorful throw pillows to the couch and rearrange your furniture to make the room more inviting. You should also consider styling your dining room table. A bare table can often look plain and uninviting. Create an inexpensive and colorful center piece with flowers and set the table with plates, glasses and silverware, along with napkins that match the color scheme. Staging rooms will make a plain space pop and catch the attention of any potential home owner.

Accessibility

Your home might not be selling as quickly as you would like because it isn’t easily accessible and there aren’t many suitable times for potential buyers to view it. There are few things worse than a potential buyer wanting to see a home and a real estate agent coming back with, “A viewing doesn’t suit the vendor.” If you want your home to sell, and sell quickly, you need to make it accessible and work on other people’s terms. A great way to do this is to hold an open house. Ask your real estate agent to give potential buyers a two or three hour window of time to come out and view your home. An open house has the potential to create a buzz and encourage earlier offers from potential buyers.

If you’re selling your home without a real estate agent, that also has the potential to be a speed bump in the road to accessibility. Unless you know what you’re doing, leave it to a seasoned professional. A realtor know what is selling in the area and for what price; the expertise and knowledge you will receive will pay off when there is a “Sold” sign in your front yard.

A hot market is a great market, and the perfect one in which to sell your home. Once you realize what you’re lacking or doing wrong, it is all up hill from there. With a few small adjustments and improvements, your home will get the exposure it needs to be off the market and in the hands of a new owner.

10 Things You Need To Know Before Buying A Home

Thinking about buying a home? Check out these important tips to help you get started...

1. Do some research

Sounds obvious right? But so many buyers go into it blind. Although there are many professionals that will help you along the way, you will only help yourself if you do a little research before and during your home buying process.

So what kind of research? Use the internet to...

• Search for neighborhoods
• Research home styles
• what you might like or dislike in your next home
• school districts
• neighborhood features
• different activities in these areas

2. Have an idea of what you are looking for

After you do some research, make 3 lists...

List 1: What you HAVE to have

This is everything you can not live without. For example, if you have 3 children you might HAVE to have a 4 bedroom home.

List 2: What you would LOVE to have

These things are not necessarily a deal breaker, but would be nice to have. For example, an inground pool or a finished basement with a movie theatre.

List 3: What you DO NOT want

This means if a home has anything of these features, you will not purchase the home. For example, right next to the freeway or train tracks or maybe it has a pool and you don’t want the hassle.

Having these lists will not only make your life easier, but it will allow your real estate agent to show you the homes that best fit your wants and needs. Even the most experienced real estate agents are not mind readers, show them and tell them what you want so they can help you find the perfect home.

3. The Cost

There is more to buying a home than just the purchase price. Closing Costs, Inspections, Appraisal, Moving Fees, Homeowners Association, Homeowners Insurance, and other fees are often a surprise to unprepared buyers.

Closing Costs - Before you get the keys to your new home, a title company needs to complete a few tasks. Tasks like making sure the title is free and clear of all liens, order a survey of the property, record the new deed, and more. Closing costs depend on the terms of your purchase, the state and area you live in, etc.

Inspections - After your offer is accepted, typically you have a negotiated inspection period where you can inspect the property for any damage or repairs needed. Typically a Home Inspection, Pest Inspection, and Radon Test are completed. After the general Home Inspection you might have a specialist inspect specific elements that need further investigation such as the foundation, lead base paint, etc. Inspections can run you $250 and up, just depending on what inspections you have done. We highly recommend you have a home inspection before purchasing any property!

Appraisal - Even though your real estate agent will pull comparables of the property before you write the offer, after the offer is accepted an appraiser is hired by the bank to determine the properties value.

Moving Fees - Seem obvious, right? Obvious but often forgotten, make sure you factor in expenses for a moving truck, taking off work, hiring painters or getting new carpet. Give yourself an estimated budget and plan to save that chunk of money for your moving expenses.

Homeowners Association - If the home you are purchasing has a Homeowners Association, make sure you know what the fees are and if they yearly or monthly? Make sure you check to see if there are any transfer fees or “new owner” fees. Sometimes there might be a transfer fee from one owner to the next.

Homeowners Insurance - This is obtained before closing, but it is an expense you need to have on your list. Talk to your insurance agent and get quotes from several companies to find the best fit for you.

4. Build a move in fund

Okay, you have found the perfect home and it’s time to start decorating! But you just spent a good chunk of your savings on your down payment, inspections, closings costs, celebrating at an expensive restaurant, and you don’t have much money left. Don’t let this be you! Make sure you budget and save a good amount to help you hire a moving crew, paint, buy furniture, and for those unexpected things that could happen after moving in.

5. What a Loan Pre-Approval gets you

Typically when you write an offer on a home, you will present your loan pre-approval letter. This means you have spoke with a lender and they have ran your credit score and information to determine that you are pre-approved for a home loan. You will not be fully approved until a loan application is filed and processed. This does not happen until your offer has been accepted on a home and you go into contract.

So what will a pre-approval get you? You will be able to learn about your options when it comes to choosing a loan and how much money you need to bring out of pocket. This is your time to do some research to make insure that you choose the right loan for you.

6. Know the programs (203k, OHFA)

Are you a first time home buyer? Do you want to get a loan that will help you rehab your next home? Are you a resident fresh out of college, in debt with school loans?  Whatever your situation, make sure you know your options. When it comes to buying a home, hire a lender and a real estate agent who know how to help you with your unique situation.

HUD 203(b) loan - FHA will provide 97% of financing, and most closing costs can be  included in the loan. Contact a lender for details and restrictions.

HUD 203k loan - Offers a solution for a typical fixer-upper where you can roll costs of fixing up a home into your loan. Contact a lender for details and restrictions.

“Doctor” loan - If you are graduating medical school, chances are you have a lot of school loan debt. To lenders, debt like this will never let you buy a home. However, with this “Doctor” loan program, you can still buy a home! Contact a lender for details and restrictions.

OHFA - A program offered in Ohio to help First Time Home Buyers. You must be a first time home buyer and meet certain criteria. It offers down payment assistance opportunities and more. Contact a lender for details and restrictions.

7. Foreclosures and Short Sales

When buying a home, you will likely come across a Short Sale or a Foreclosure (Bank Owned, REO).

Foreclosure - A home that is owned by the bank after the previous owner stopped making payments. These properties are typically listed at or under market value based on the the selling price of other homes in the area and the condition of the home. Foreclosure do not take as long as short sales and are almost always sold at an ‘as-is’ condition. You can still have an inspection but the bank will typically not make any repairs.

Short Sale - A home that is in or close to foreclosure, and the homeowner is trying to sell the home to a new owner for less than they owe on the property. This is where the term “Short” sale comes from. Typically a short sale can take up to 6-12 months to close. This is a long process because the homeowner is negotiating with the bank to take a loss of the property in order to avoid foreclosure.

You can get a great deal on some foreclosure and short sales, but make sure you are aware of the timelines and the terms.

8. School districts

Whether school districts are important to you or not, this is a huge resale point. Take school district rankings into consideration when searching and purchasing your next home.  You can go to the Ohio Department of Education’s website, www.ode.state.oh.us to get the most recent score and evaluations of every school district in the state. Living in a great school district can make the area more appealing to more buyers. Living in an area with a low scoring school district may or may not deter buyers. Talk to you real estate agent to get  the details.

9. Know who is representing you

Anytime you start working with a real estate agent in Ohio they will present you with an agency relationship document called a “Consumer Guide”. This document explains what Buyer’s Agent, Seller’s Agent, Dual Agency, and more mean to you during the home buying process. Make sure you understand these terms and how they affect you. Having a real estate agent representing you means they are looking out for your best interests and have a fiduciary duty to you and only you.

10. Understanding Market value

When it comes to purchasing a home, your real estate agent will help you determine the market value of the home. In other words, what the home is worth in today’s market. Market value is constantly changing. What your home is worth today may not be the same a year from now. You can see what the market value of a home is by pulling what is called a “comparable market analysis”. This is where the sale price of comparable homes are pulled and compared to the home of interest. This should be done by your real estate agent before you write an offer on a home. The true value of your home is determined by an appraiser. The appraisal is ordered after you go into contract on a home during the loan process.

6 Quick Ways To Stage Your Home To Sell

When you put your home on the market, your ultimate goal is to sell it quickly and get the price you’re asking for. Staging a room, or rooms, gives the buyer a great visual that they would like to see in their new home. If you’re planning to put your house on the market this spring here are six home staging tips to make a potential buyer fall in love with your home just like you did.

Clear Out Clutter

A buyer might be turned of if there are toys all over the living room or papers all over the office. Throw away things you don’t need or begin boxing things up for your move. Getting rid of the extra clutter will clear up any space and allow the full potential of the room to show.

Rearrange Furniture

Rearrange your furniture to make your living room a conversation area. Use a coffee table in the center of the room as a focal point and work outward from there. Top it off with a rug and matching throw pillows to create a warm and inviting space.

Use Your Junk Room Wisely

You might have an extra, unused bedroom in your home that has become the ‘junk’ room over the years. Clear it out and add inexpensive furniture to show how functional of a space it can be.

Style The Dining Room Table

A bare table can often look uninviting. Create a cheap, colorful centerpiece with flowers in a vase and set the table with plates, glasses and silverware. Make that formal space come alive in an inviting environment that a potential buyer is sure to love.

Utilize Storage Space

Believe it or not, storage space in a home sells! Don’t pack your closets full of stuff just to get it out of the way because people are going to look in there anyway. Keep your closets clean and organized, and leave the door open if that’s an option.

Keep the Walls Neutral

This is important for all of the rooms throughout your house. You want your home to appeal to both men and women, so neutral colors are the best way to go. You can add pops of color with pillows, throws, lamps and other accessories.

Home staging is the easiest way to show buyers the true potential of your home. Whether you’re completely dressing up the space or making it appear more functional, a buyer will appreciate it and be able to picture how they can use the space.

For more tips on how to stage your home for a showing, visit here.

Housing Market Predictions for 2013

Great news! Homes sales towards the end of 2012 beat expectations. According to an article from NBC News....

• The sale of homes priced over $750,000 jumped 50% from a year ago
• Sales of lowest-end homes (largely distressed) fell 4%
• Supply of homes nationally is at its lowest level in 7 years, 4.8 months worth at the current sales price

(Stats from the National Association of Realtors)

All of the good news does not stop there. The national median home price also went up 10.1% since November 2011 to $180,600.

One key factor that affects the real estate market is supply and demand. With years of distressed properties dominating the market the supply has been overpowering the real estate market in some areas of Central Ohio. However, some areas of Central Ohio were not negatively affected by the turn of the housing market over the past few years.

“The risks around our forecast of a 5% increase in house prices next year are on the upside,” notes Paul Diggle of Capital Economics.

Predictions for 2013...

• Distressed Property Sales with continue to decline due to fewer delinquent loans
• Could possibly see another surge in foreclosures now that banks are ramping up foreclosures of long-delayed delinquent loans

“With the homebuyer affordability index near multi-decade highs combined with decent job creation at the same time renting has gotten more expensive --all lead to a continued improvement in sale,” writes Peter Boockvar of Miller Tabak.

“Sales are still 30% below the bubble highs and are still  where they were in 1998, both pointing to the degree of possible improvement ahead but also evidence of the damage that was done where historically the pace of recovery takes time." Says Boockvar.

In 2013 we should see some changes for the better. Over the past few years we have been seeing a slow movement towards a better housing market in all Central Ohio areas.

If you are looking to jump into the housing market this year, Dial Darla!

Office: 614-431-1005

www.RealEstateAces.com

RealtoDarla@aol.com

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