Three Home Seller Myths You Need to Know

Three Home Seller Myths You Need to Know

Whenever anyone mentions that they’re thinking of putting their house up for sale it seems that everyone wants to give their opinions on the subject. Because of that, a lot of myths have developed that seem to go around like the game, Telephone. Let’s debunk those myths so that when you’re ready to sell, you know the facts!

MYTH #1: Automated Home Evaluations Are Always Accurate

Have you ever seen an Ad on Facebook that says “CLICK HERE to automatically determine your home’s market value” or something along those lines? If the answer is yes, I promise you’re not alone. The problem with the automated home evaluations is that they are not taking every factor into consideration and can result in false information, causing you to believe that your home value is less than what it actually is or even higher than what is realistic.

The internet doesn’t know if you refinished your hardwood floors, updated all your landscaping, added a brand-new deck or any other update you’ve put your hard earned money and possibly even your own valuable time into to improve your home.

What type of evaluation could give you an accurate answer? One where a LOCAL Real Estate Agent asks you for your contact info so they can conduct a personalized market analysis after asking you for more details about your home. Even better, schedule a consultation so that Agent can see your home in person and give you the MOST accurate answer. Listing Consultations cost you zero dollars and you have no obligation to order the for-sale sign and start signing afterwards.

MYTH #2: If You Don’t Have an Open House, Your Home Won’t Sell

Have you ever heard the actual stats on the success of an Open House? According to a 2017 survey by the National Association of REALTORS, only 7 percent of buyers find the home they buy through an Open House.

This isn’t to say that your home shouldn’t have an Open House when it’s for sale, but, it also isn’t the most effective marketing strategy. Holding an Open House will help increase exposure when your home first hits the market so it’s recommended to have your Agent hold one the first week that your home is on the market in order to drive as much traffic as possible to your listing. However, make sure your Agent has other marketing strategies they use other than standing around your house for a couple of hours every weekend.

MYTH #3: If You Price Your House on the High End, You’ll Have Room to Negotiate

Many sellers believe that if they price their house high, they’ll end up at the price they actually want. The problem with this is, that you’ll be decreasing the demand (number of interested buyers) when you first list your home which will automatically create a mindset that the home is priced too high.

When your home hits the market, you want to make sure you are drawing from the biggest pool of buyers to get as much exposure as possible. Pricing it on the high end will eliminate buyers who can afford the price you actually want because their budget might not go up to the price you’re starting with. Instead, price it at or slightly below the market value to increase demand, competition and ultimately more money in your pocket.

If you’re thinking of listing your home in the near future, you’re already in a better position knowing the truth about these common seller myths. To be even more prepared, make sure you schedule a listing consultation with Julie, your local real estate agent to find out what else you should know before listing your home for sale.

Now Is a Great Time to Sell

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2 Reports That Say Now Is a Great Time to Sell

Heading into the spring buying market, there are strong trends starting to emerge.

The inventory of homes for sale has increased on a year-over-year basis for eight months in a row. Home price appreciation has continued to grow, although at a slower rate. The homeownership rate has reached heights last seen in 2014, with millennials and Generation X leading the way!

Let’s dive a little deeper into some of the recent reports that have been released and what they mean for the spring buying season!

1. National Association of Realtor’s Existing Home Sales Report

Sales of existing homes were down for the third consecutive month in January. Some of this can be explained by the natural seasonality that the real estate market experiences every year, and some can be explained even further by a lack of homes available for sale on the market.

Inventory

For the last eight months, the inventory of homes for sale has been higher when compared to the same month the year before. The challenge in the market is the mismatch of the type of home that is available for sale. First-time homebuyers looking for a starter home are often competing with other buyers to stand out, often outbidding each other.

Lawrence Yun, NAR’s Chief Economist, agrees that the market is still experiencing an inventory shortage.

“In particular,the lower end of the market is experiencing a greater shortage, and more home construction is needed.”

Home Prices

The median home price for homes sold in January was $247,500. This is up 2.8% from January 2018 and marks the 83rdconsecutive month of year-over-year gains. The 2.8% growth in home prices represents the smallest year-over-year change since February 2012 but is a welcome change for buyers who had feared being priced out of the market.

Days on the Market

Properties that sold in January were on the market for an average of 49 days with 38% of homes on the market for less than a month.

Yun is positive about how today’s market conditions will help buyers this spring,

“Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low. Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months.”

2. NAR’s Pending Home Sales Report

The national Pending Home Sales Index (PHSI) rose 4.6% to 103.2 in January from 98.7 in December. An index score of 100 is considered normal. All four major regions of the country experienced gains in January, with the largest increase coming in the South.

“The PHSI is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.”

Increases in the PHSI often predict increases in the level of home sales in the coming months, which is great news for the housing market leading in to spring! Yun had this to say,

“Homebuyers are now returning and taking advantage of lower interest rates, while a boost in inventory is also providing more choices for consumers.”

Bottom Line

The housing market in 2019 will require homeowners to list their house at the right price to attract buyers. If interest rates continue to stay low while wages increase, and more inventory comes to market, 2019 could be one of the best years for home sales in recent history.

 

Top 7 DYI Winter Projects

Top 7 DYI Winter Projects

Winter months bring cold days and long nights. While you wait for the weather to warm up so you can get out into the garden, there are still plenty of great DIY projects to tackle, even in the winter. Here are 7 terrific ideas for the Do it Yourselfer in you.

  1. Paint Your Walls – Paint an accent wall or an entire room with a fresh color.

  2. Declutter – Sure this sounds like a fancy name for house cleaning, but decluttering is more than that. Remove excess furnishings to make your rooms seem larger and more inviting.

  3. Update Your Kitchen –A new backslash or cabinet pulls can quickly change the look and feel of your kitchen.

  4. Add Insulation – This will provide instant satisfaction as those cold, drafty rooms feel warm and cozy. If you have some real skill, you can include changing out old windows or doors as well.

  5. Smarten Up – This is a great time to automate your home with Smart devices. Add security cameras, a smart thermostat or smart lights and plugs.

  6. Build Something – For the handy, winter months are a great time to add cabinets, a TV hutch or bookshelves to your home.

  7. Re-Grout Your Tile – From kitchen counters to floors, re-grouting can freshen up the room.

If DYI projects are not for, we highly recommend hiring a professional cleaner to ensure your home is in its best condition. Contact Julie to get a great local recommendation.

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Julie Stevenson

410.251.5291