Archive for the 'Advice for Sellers' Category

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My Stuff is Better Than Your Stuff – Or Is It?

It’s human nature – we put a greater value on things that we already own.  This is a well known theory called the “endowment effect” developed by an American economist, Richard Thaler, in 1980. One classic study is done with mugs where Group A, with no mugs, is asked how much they would pay for a mug.  The typical answer is $4.  Group B is given mugs and then asked how much someone would have to pay for you to part with it.  The average response is $8.

I see this happening frequently with sellers when it comes to pricing their homes.   Even though they are shown similar houses sold for less and the competing homes are priced lower, sellers still want to price their house higher.  The negative consequences of the endowment effect is that homes take longer to sell, the price ends up “chasing” the market and sellers eventually end up selling for a lower amount than if the house had been initially priced correctly.

Bottom line – sellers should be aware of how the endowment effect impacts their decision-making on price.  Don’t go by what you “think” it is worth.  Make decisions based on what is actually selling in the market.  Give me a call if you need a REALTOR® to help you price your way to a successful sale!  Donna Forest, 603-526-4116, email:  donna@donnaforest.com, web site:  www.donnaforest.com

Don’t Let Clutter Hide the Value Your Home

In our modern world, many of us have succumbed to the excesses of capitalism. Giant warehouse stores allow us to buy in bulk; massive chain department stores allow for incredible bargain prices. We drive giant vehicles to haul the stuff around and super-size meals to fuel our shopping frenzy.

As consumers we have expanded the idea of basic needs well beyond necessity. Needs are things that we cannot survive without such as food and shelter. For whatever reason, many of our desires have become needs and the result is too much stuff. In a society where shopping has become a recreational sport, and the acquisition of things a daily ritual, we must be cautious not to acquire too much to clutter up our homes.

While those of us who live in cluttered environments may have developed some numbness, meaning that we no longer consciously notice or see the chaos of clutter, we are still affected at some level. Lack of energy, motivation and low self-esteem are often characteristics that accompany the daunting task of making sense of, or separating from, our clutter.

From the prospective homebuyer’s view, clutter translates into an undesirable home. Cluttered homes often appear smaller. They look darker, and tend to smell from the excess dust. The excess stimuli can be an immediate turn-off because the combined effect suggests that all of the home’s other features will be rundown, decayed and in need of much repair. The converse is also true: homes devoid of clutter and kept clean give the impression of being well maintained and not requiring much work.

As sellers, it is important to understand that when prospective buyers view a home they do so through various lenses. Some will look at a property in terms of its resale value, others will view it as a starter home, and others will view it as their potential home for life.

For those looking at property strictly for investment, clutter can be a good thing. Clutter means that the property doesn’t show well and as such the potential buyer stands a good chance of acquiring it below value. For those looking at a property as a starter home, the clutter only serves to widen the gap between the desired home and the home they must settle for. People looking at a property as their potential permanent home will imagine themselves occupying it. Clutter compromises the ideal image and prospective buyers view the home in terms of cleaning and maintenance.

Properties with clutter translate into increased time on the market and lower values, not only because the clutter decreases the perception of size, air and light, but also because of the perceived level of work involved in maintaining the property. It might behoove sellers to spend a little upfront and hire a professional clutter clearer and/or home stager. This initial cost will be recouped by way of a higher selling price and faster sale.

 

How to Improve Your Home’s Curb Appeal

A large percentage of home buyers decide whether or not to look inside a house or take it seriously based on its curb appeal—the view they see when they drive by or arrive for a showing. You can help make sure they want to come inside your house by spending some time working on its exterior appearance.

It’s difficult to look at our own house in the same way that potential home buyers do. When we become accustomed to the way something looks and functions, we can’t see its faults. Decide right now to stop thinking of your property as a home. It’s a house—a commodity you want to sell for the highest possible dollar.

Curb Appeal Exercise

The next time you come home, stop across the street or far enough down the driveway to get a good view of the house and its surroundings.

  • What is your first impression of the house and yard area?
  • What are the best exterior features of the house or lot? How can you enhance them?
  • What are the worst exterior features of the house or lot? How can you minimize or improve them?

Park where a potential buyer would and walk towards the house, looking around you as if it were your first visit. Is the approach neat and tidy? What could you do to make it more attractive?

Make a list of the problem areas you discovered. Tackle clean up and repair chores first, then put some time into projects that make the grounds more attractive

  • Stow away unnecessary garden implements and tools.
  • Clean windows and gutters.
  • Pressure wash dirty siding and dingy decks.
  • Edge sidewalks and remove vegetation growing between concrete or bricks.
  • Mow the lawn. Get rid of weeds.
  • Rake and dispose of leaves, even if your lot is wooded.
  • Trim tree limbs that are near or touching the home’s roof.

Don’t Forget the Rear View

Buyers doing a drive by will try their best to see your back yard. If it’s visible from another street or from someone’s driveway, include it in your curb appeal efforts.

Evening Curb Appeal

Do your curb appeal exercise again at dusk, because it isn’t unusual for potential buyers to drive by houses in the evening.

One quick way to improve evening curb appeal is with lighting:

  • String low voltage lighting along your driveway, sidewalks, and near important landscaping elements.
  • Add a decorative street lamp or an attractive light fixture to a front porch.
  • Make sure lighting that’s visible through front doors and windows enhances the home’s appearance.

If you brainstorm, you’ll find that there’s a solution to most problems—one that lets you stay within your budget. The trick is to find the areas where improvements are needed, then work on them as best you can.

Don’t Give Buyers the Cold Shoulder

Let’s face it – showing houses in the middle of winter can be very challenging.  However, if buyers are willing to brave the cold and snow, they are most likely serious about buying.  Here’s what you should be doing to make sure your house doesn’t give them the cold shoulder.

  • Keep the driveway clear.  It’s definitely a turn-off f to navigate ice-covered, bumpy driveways.
  • Shovel walkways and decks.  Sand if icy.   Not only does it provide safe passage, it also shows you care about your home.
  • The house should be warm.  Buyers will rush thru a cold house and it leaves a negative impression.
  • Make it light and bright so it shows well even on grey days.  Get rid of heavy drapes, use higher wattage light bulbs.

These are basic & common-sense tips and yet I’ve trudged thru snow drifts, gotten stuck in driveways, and have been in houses where it’s warmer outside than in.   Visit my website for more tips on selling and if you are looking for an experienced Realtor with the common sense to help sell your house in any season, then give me a call!

Donna Forest, ABR

603-526-4116

Good News! December Home Sales Jump

Existing-home sales rose sharply in December, when sales increased for the fifth time in the past six months, according to the National Association of REALTORS®.

Existing home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 12.3 percent to a seasonally adjusted annual rate of 5.28 million in December from an upwardly revised 4.70 million in November, but remain 2.9 percent below the 5.44 million pace in December 2009.

Lawrence Yun, NAR chief economist, said sales are on an uptrend. “December was a good finish to 2010, when sales fluctuate more than normal. The pattern over the past six months is clearly showing a recovery,” he said. “The December pace is near the volume we’re expecting for 2011, so the market is getting much closer to an adequate, sustainable level. The recovery will likely continue as job growth gains momentum and rising rents encourage more renters into ownership while exceptional affordability conditions remain.”

The national median existing-home price for all housing types was $168,800 in December, which is 1.0 percent below December 2009.

Total housing inventory at the end of December fell 4.2 percent to 3.56 million existing homes available for sale, which represents an 8.1-month supply at the current sales pace, down from a 9.5-month supply in November.

NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said buyers are responding to very good affordability conditions despite tight mortgage credit. “Historically low mortgage interest rates, stable home prices, and pent-up demand are drawing home buyers into the market,” Phipps said. “Recent home buyers have been successful with very low default rates, given the outstanding performance for loans originated in 2009 and 2010.”

Regionally, existing-home sales in the Northeast jumped 13.0 percent to an annual pace of 870,000 in December but are 5.4 percent below December 2009. The median price in the Northeast was $237,300, which is 1.4 percent below a year ago.

The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

Source:  From the National Association of REALTORS, Washington, DC, January 20, 2011

Housing Outlook Brighter for 2011

According to the December 2010 Economic Outlook released by Fannie Mae’s Economic & Mortgage Market Analysis Group, improvements in consumer spending & confidence, increased demand for goods & services, and falling unemployment claims are all positive factors pointing to a housing recovery going into 2011.  Fannie Mae’s Chief Economist Doug Duncan says, “We expect modest increases in home sales, despite recent interest rate rises, due in part to modest additional declines in home prices, and we expect people to take advantage of affordability as their employment and income outlook brightens.”

While total home & condo sales in *9 area towns for 2010 were about the same as in 2009, with a slight decrease in the median selling price,  Springfield, Wilmot and Bradford all saw increases in their sales numbers – encouraging news for our market area!

Sold Listings Median Selling Price Ave. Days on Market

2010                261                  $236,500                            175

2009                257                  $245,000                            158

*Andover, Bradford, New London, Newbury, Springfield, Sunapee, Sutton, Wilmot, Warner

Donna Forest, ABR

Broker Associate

Selling Your Home? Hints for Getting Ready to Show your House to its Best Advantage!

Since the most enjoyable part of selling your home occurs when the proceeds from the sale are deposited into your account, there are some things that you can do that will help you reach that goal more quickly.

Most sellers need to de-clutter, which means not only, removing knick-knacks and taking out excess furniture, but removing other distractions from your home which make it harder for buyers to picture themselves living there.

Many sellers like to sort through their personal property themselves, but there is help out there in the way of home organizers who specialize in assisting people through the selling and moving process.  Consider combining this service with a professional stager to make your house stand out from the competition.

Living in a home that is on the market can be disruptive. Ideally, you, your children and pets should be out of the house when it’s shown. Buyers feel inhibited by the sellers’ presence. They won’t say anything negative about the house while you’re there.

Work with your agent to set up a showing procedure for your home that you can live with, knowing that it gives your house the best chance to make a good impression if you, your children and pets skedaddle.  The perfect house doesn’t exist, so buyers always have to make compromises. It’s important for buyers to have an opportunity to weigh the pros and cons of a home while they are there with their agent.  Here’s a great hint:  Preparing for showings is easier if you have bins in the bathrooms for your personal effects, in the kitchen for things you use daily, and to store children’s toys.

These hints will help get you to the settlement table sooner!

Based on an article on InMan.com, November 15, 2010 authored by Dian Hymer, a real estate broker with more than 30 years’ experience, who is a nationally syndicated real estate columnist and author of “House Hunting: The Take-Along Workbook for Home Buyers” and “Starting Out, The Complete Home Buyer’s Guide.”

Get your Home Ready for Winter by Performing this Do-It-Yourself Home Energy Audit in 6 Easy Steps

Find out if your home is squandering precious energy and costing you money. By following up on problems, you can lower energy bills by 5% to 30% annually.

What you’ll need:flashlight, screwdriver, paint stirrer, tape measure and, not just for serenity’s sake, a stick of incense.

1. Hunt down drafts. Hold a lit stick of incense near windows, doors, electrical outlets, range hoods, plumbing and ceiling fixtures, attic hatches, and ceiling fans in bathrooms—anywhere drafts might sneak in. Watch for smoke movement. Note what sources need caulk, sealant, weather-stripping, or insulation.

2. Check attic insulation. Winter or summer, insulation does the most good when it’s overhead, so start with the attic. First, do you have insulation? If the insulation you see covers the tops of the joists by several inches, you probably have enough. If the insulation is only even with the tops of the joists, you probably need to add insulation.

3. Check wall insulation. Remove electrical outlet covers to see if your wall contains insulation. Shut off power to the receptacle before probing beside the electrical box with a wooden paint stirrer. Check some switch boxes as well. Their higher wall location lets you see if blown-in insulation has settled.

4. Look for stains on insulation. These often indicate air leaks from a hole behind the insulation, such as a duct hole or crack in an exterior wall. Seal gaps with caulk or spray foam insulation.

5. Inspect exposed ducts. Look for obvious holes and whether joints are sealed. Heating, ventilation, and cooling (HVAC) ducts are made of thin metal and easily conduct heat. Consider insulating them. Uninsulated or poorly insulated ducts in unconditioned spaces can lose 10% to 30% of the energy used to heat and cool your home.

6. Check anything that goes through an exterior wall. Examine dryer ducts, plumbing lines under sinks and vanities, anything that pierces a wall. Any gaps around it should be sealed with spray foam insulation or caulk.

Taken from an article by Jane Hodges for houselogic.com, a service of realtor.com

Are You a Homeowner? It’s Not Too Early to Start Looking Ahead to Tax Season!

Thanksgiving is just around the corner and that means that Christmas will be coming quickly on its heels.   Then, before we know it, it’s time to start pulling together all our tax information.  Sure, taxes aren’t due until April 15th, but we all know what a process it is.  We also all know that some of the frustration and “pain” can be avoided by getting a jump on it.  So, to help give you that early start, here are some web sites which will give you some great tips, whether you’re a first time homebuyer, someone who owns a vacation home, or an investment buyer who has purchased a home at foreclosure.  Remember, always check with your own tax advisors, but these articles might provide you with some discussion points.  Good luck!

Home sweet homeowner tax breaks

Tax Tips for Homeowners | DoItYourself.com

TurboTax® – Buying a Second Home – Tax Tips for Homeowners

Tax tips for Homeowners of short sale or foreclosed properties

12 Tax Tips for Homeowners in 2010

Looking for Ways to Increase Your Home’s Curb Appeal? Consider Outdoor Lighting

Daylight Savings is this weekend.  If your home is on the market in the New London/Lake Sunapee Area, many would be buyers will only be seeing your home in the dark.  Well-executed outdoor lighting will cast your home in the best possible light and add an abundance of curb appeal.  It can also add value.  However, it’s not just about aesthetics, lighting for security is also important.

Here are some elements of successful outdoor lighting:

Mimic moonlight:  The “moonlight effect’ is a naturalistic look that features light no more intense than that of a full moon, but still strong enough to make beautiful shadows and intense highlights.

Highlight trees:  Illuminated from below or with a light mounted in the tree itself, trees make stunning features.

Use up-lights:  Up-lighting is dramatic because we expect light to shine downward.

Have a focus:  The entryway is often center stage, a way of saying, “Welcome, this way in.”

Stick to warm light:  The purpose is to showcase the house and its landscape rather than create a light show.

Add safety and security:  Stair and pathway lighting help eliminate falls.  Motion-detecting security lighting is helpful when you get out of your car at night, and it also deters intruders.  Landscape lighting on timers can also illuminate shadowy areas.  The moonlight effect can have a security function as its soft, overall lighting eliminates dark areas that might hide an intruder, unlike overly bright lights which create undesirable pockets of deep shadown.

Switch to LEDs:  Now the light source of choice for lighting designers.

A little attention to some outdoor lighting options could make your house stand out from the crowd, especially at this time of year.  And that’s just what’s needed to help you get it sold!

This article was based on one by Dave Toht for NAR’s houselogic.com, published in March of 2010.  Visit the site for more great ideas.  Toht has written or edited more than 60 books on home repair and remodeling, including titles for The Home Depot, Lowe’s, Better Homes & Gardens, Sunset, and Reader’s Digest.