Concerns for selling existing homes

When I was listening to Howard Clark on talk radio yesterday, he highlighted the recent news about new home sales statistics vs. existing home sales. Did you hear the news? The latest reports show that existing home sales are down 13%, but that new home sales from builders are down twice that percentage.

Besides the trauma that home builders feel, it has an impact on the homeowner who is currently trying to sell their home in this market. Unfortunately, existing home sellers can not equally compete against a home builder. He/she is able to offer incentives that the existing seller cannot. Also, they can drastically lower the price to avoid bankruptcy and prepare to fight another day.

Unfortunately, I am starting to see the impact on my current homeowners that have listed with my company. With the last 2 agents that I spoke with to get feedback on what their clients thought of my listings when they showed them this week, both said that their clients were leaning towards the new homes because of the incentives being offered.

Lesson to buyers: bargains to be had in new homes!

Lesson to sellers: reiterate how long it took for your punch list to ever be completed by the builder!

for more information, check out: www.audreybutlerhomes.com

How to improve your home for selling

In this tough buyer's market, every home is under scrutiny, given the number of homes on the Orlando home market. What are some considerations as a seller you should consider when listing your home?

1. Obviously, curb appeal is a key factor in creating a good impression. Make sure you trim the grass, keep blooming flowers in the gardens, and take care of any ant beds and weeds. Paint the front door if it is needed, and treat any wood rot in the trim. Invite over a true friend who will give you an honest opinion, or ask your Realtor.

2. When entering a home, smell is the second consideration. If you or a family member smokes, then the home should be treated before it is sold. Smoke can be smelled in all fabrics, including carpet. Consider steam cleaning. Once the home is listed, the smokers should smoke outside.

As much as we love pets, they do smell. Make sure the odors are treated, and their areas are kept clean at all time. Spot needs to be regularly washed, and should be taken from the home (or kept in the back yard) during showings. If the dog is not friendly, the pet should be removed during the showing.

Key: do not try and mask the smells. This is not the time for short cuts, given this tight market!



Check out my website: www. audreybutlerhomes.com

Goals for a seller

Are you a "for sale by owner"? Here are some tips to help you in selling your home:

1. Don't have a bloated price tag, in hopes of negotiating a better deal.

There is a misconception that a home can still get the same asking price as in 2005. Not in this market. Homes have dropped significantly in price, and buyers will not be interested in seeing a house with a high price.

2. Try to get as many people in to see the house in the first 2 weeks.

If the house is on the market for a very long time at a high price, people will begin to think there is something wrong with it.

3. Realtors can be your friend.

You may have had a bad experience with a Realtor, or just don't want to pay the 6% commission fee. However, in this market, exposure and savvy marketing are key. Also, pricing it compared to the other houses in the neighborhood is important so you can have potential buyers see your home. When there are so many houses on the market, an agent can help you discuss how yours can stand out.

If you had a bad experience, talk to others that like/liked their Realtor. Ask to speak to some of their past clients. An experienced agent will be invaluable in pricing your home correctly and getting it seen in this market.

Check out my website at: www.audreybutlerhomes.com

Housing forecast for 2008 looking up

The National Association of Realtors is forecasting an improvement in the mortgage market, which could result in more buyers in early 2008. I don't know if they are telling Realtors like me this news to cheer me up (I'm actually already cheerful; I really enjoy my work...), but the vice president of research for the association says that nationally the housing market for this year is the 5th highest for existing home sales.

I hate sounding like a negative person all the time on this blog, but that does not consider the individual market in central Florida. However, there has been a reduction in new home building, which can help stabilize the market.

All in all, this could be good news for current sellers, and will hopefully result in the pent-up demand leading to action in the next couple of months.

To learn more, check out my website at audreybutlerhomes.com

Remodeling or home staging?

Thinking of remodeling the kitchen before you put your house on the market? My advice would be to renovate for your own enjoyment----don't expect to get the value of your renovation out of the sale....especially in this market!

Real Simple magazine says that the average price to renovate a kitchen in the US is about $43,860.

Today, granite counter tops and tile floors are becoming the standard. Builders are including them in new properties being built every day. You may not see a higher return for all the costs and hard work. Although you will recoup about 90% of your remodeling based on national averages, be sure to consult a Realtor if you think about renovating to only sell your home. Every area and every market varies, and other smaller steps may be effective.

I've seen a seller put in new carpet, and the new buyers rip it out the first day they move in and put in new tile floors. Renovation is not your only option. Realize that you can lower the cost, or consider a reduction during the negotiations with an interested potential buyer.

One inexpensive way to improve your house is to consider home staging options. Find a Realtor who knows about home staging and hire them to sell your home. I have helped some of my clients in the past. If you are interested in staging your home for selling, call me.

why you need a realtor

I know--ha ha--a realtor explaining why you need one of us. Yet it seems odd that people regularly go to their accountant for finance and tax questions, their lawyer for legal questions, and their doctor for medical questions. These are all specialized fields, with unique terms, rules, and areas of expertise, just like real estate. What do Realtors offer?

1. Real estate transactions are not easy. A real estate consultant can help you navigate legal contracts, give expertise on the pricing with statistics and research, and help you should a crisis during the process occur.

2. Transactions take a lot of time. Houses stay on the market for an average of over 90 days right now. Realtors spend every day learning the market, marketing, and networking. A lot goes on behind the scenes that is valuable. Once the property is sold, that is just the beginning of the process. Many things have to happen to get the property to closing.

4. Objectivity is needed when buying/selling. Home often symbolizes family, rest, and security--it is a very emotional undertaking. It is the biggest purchase a person will ever make. Having a concerned but objective 3rd party helps you keep focused on the right issues.

5. Market knowledge is necessary to price the home competitively. If you are contemplating selling your home, you may know what one or two homes nearby have sold for, but you don’t have the access to the market knowledge to adjust pricing.

6. Representation in the home selling process is key. Have an agent handle criticism of the house. As a trained professional, a Realtor is more attuned to the buyers’ needs and able to highlight the home’s features that have the most appeal to each buyer.

7. Real estate agents can provide trusted mortgage financing advice. That includes assessing a buyers’ ability to afford the property and help them locate the best places to obtain financing. Agents are also more experienced in prequalifying buyers so that they will not make an offer on a home they cannot afford.

8. Realtors know how to negotiate and overcome objections. Balancing offers and counteroffers, as well as handling many of the contingencies that usually accompany real estate transactions, can be frustrating or frightening.

9. Are you sure the transaction will close? Many think that once the purchase agreement is signed, the work is over. Many things are still needed, including: home inspection, termite inspection, title insurance, building permits for improvements, and so forth.

6 Open House Tips

Thinking of having an open house? Here are some tips to prepare:

1. This may seem like a no-brainer, but I need to share it: make sure the house is very clean.

2. Turn on all the lights and open the curtains/blinds. People like an open, airy, house.

3. Take the pets to a friend's house, or board them.

4. Turn on soft classical music.

5. Take down all personal pictures. People will look at the pictures, and not your house.

6. If you have too much stuff in your house, box it up and store it.

How to get rid of Spot's spots

Have a bad pet odor and trying to sell your house? This is one of the first things buyers notice when they walk into a home. It has to be eliminated to sell. Some suggestions:

1. Use a fluorescent black light to find the spots. They sell them at pet stores.

2. Remove the spots with a cleaner, and after it dries, with a odor neutralizer. Never use ammonia, because it can trigger more pet accidents.

3. Sarah Casey Newman from the St. Louis Post-Dispatch suggests 3 products---Bramton's Oxy Solution Pet Stain and Odor Destroyer (be sure to test it first) for cleaning; Safest disinfectant is Chlorhexidine, which is sold under such names as Novasan, Chlorasan, and Chlorhex by veterinarians and medical-supply outlets for deep cleaning. A temporary neutralizer: Fresh Wave.

4. If the odor is really bad, or there are a lot of spots, the carpet should be replaced or new wood flooring installed.

Remodeling an older home

How can you update an older home, and see some return in your investment when you go to sell it?

Eric Bramlett, with Broker Agent News gave these suggestions:

1. Gut the attic and raise the ceiling in the living room. Older homes have 8 foot ceilings, and it is one of the first things buyers notice.

2. Knock down the walls. Not the load bearing walls, but if you can open up the downstairs, it will flow better.

3. Overhaul the kitchen and/or master bathroom. Is one of the best returns.

4. If the house has one bathroom, add a master bathroom. Adds value, and convenience. Make sure there are 2 sinks, if possible.

Some home selling tips

Yes, it's a buyer's market.

Sellers, want to know how to make your house more of a "hit" on the market? In a survey conducted by HouseHunt, Inc., the North Carolina Realtor's Association reported that:

3 out of 4 buyers found "closing costs paid" as an incentive to purchase

A distant second was "free upgrades"

Third: "free property inspection"

Fourth: "free appliances" or "flooring credits"

Home improvements provide big impact

Sid Davis, writer of Home Makeovers That Sell (AMACON, 2007) warns sellers that if they don't make updates on their houses they may pay dearly. The Miami Herald shared some of his suggestions to get the most out of the sale:

• start with the kitchen; it's the most important room in the house for buyers
• update the bath; replacing the mirror and vanity will net the biggest payoff
• clean the laundry room, and add storage shelves
• scrub, scrub, scrub! A clean house wows buyers

Many of the buyers I have worked with confirm these suggestions. More people enjoy entertaining from their kitchen these days, and expect it to be large. Also, sellers will immediately leave a dirty house. I know it can be a chore to keep the house clean at all times, but buyers set appointments. Most people decide to buy a house in the first minutes of being in the house. Bottom line: If it does not show well, it will not sell well.