The Perfect Storm Brewing

Some storms are bad but, some are good. I think that a good storm is brewing all around us! I am not alone in my thought! All of the conditions are coming together for this storm to occur and there is only one factor preventing it from hitting us full force. Here are the factors which are leading to a perfect storm in Real Estate sales:

1. Pent-up demand
2. High inventory
3. Low prices
4. Motivated sellers
5. Low interest rates
6. Incentives from government and other sources

What is the one thing preventing this storm from occurring? It is lack of buyer confidence. When this one factor changes, Katie bar the door!

Have you noticed the little blond giving Real Estate advice on the NBC Today Show? Maybe you have seen her on the program Shark Tank. At first I wasn’t very comfortable with what she had to say because she appeared attune to a single market “New York City” rather than the Nation as a whole. Are you aware who this tiny lady is? Maybe we should pay attention!

Being old sometimes has its privileges such as receiving the AARP magazine. A recent article about “Real-Estate Seer” Barbara Corcoran by Laurie Wiegler was titled:

A Tycoon’s Tips

BUY NOW! That’s the hot advice of respected housing expert Barbara Corcoran, who says she’s never seen a better time to purchase a home. “Typically when real-estate prices are low, interest rates are high. This is the first time I’ve seen cheap money and cheap prices simultaneously. This is the good old days we’ve dreamt about.”

Corcoran has a knack for timing. Having parlayed a $1,000 loan into a high-end New York City real-estate firm she started, The Corcoran Group, she sold the company for $66 million in 2001, before the market cratered.

Now, as an investor on ABC’s Shark Tank, Corcoran encourages buyers to jump at the abundance of good deals, “It’s a perfect time to snatch a bargain or to upgrade,” she says. And when does she think the market will rebound? “Real estate is slow to unwind but fast to recover. I suspect we’ll make up for most of the loss of the last four years within the next 18 months.”

I like this tiny blond better all the time! Check out her best selling book (click on the image below).

Make Home Buyers Hate Your House

Did you know that buyers will turn around and walk back out of your door if they notice one or more of these?

Odors
Any odor applies, even what you might judge as an “excellent” odor. What are the worst offenders? How about cigarette, cigar and pipe smoke, pets, with mildew not far behind. If you smoke indoors--the non smoker will know as soon as they open the door. If you have pets, the house may smell bad--even if you don't notice it. Eliminate the odor, present potential buyers with a clean, fresh atmosphere, not a house full of perfumes to cover up the odors.

Dogs that Meet You at the Door or in the Driveway
Control your pets--dogs, cats, mouse, snake, whatever. Some people are frightened and others irritated. Did you plan to put them in a bathroom, bedroom or garage and ask people not to open the door? Would you buy a house you can't inspect? Remove pets during showings. If you can't, contain them in crates for their own safety and to show respect for the feelings of potential buyers.

Dirty Bathrooms
You may be comfortable with your filthy bathrooms but they are an instant turnoff for a buyer. Scour them, paint them, purchase a new shower curtain, rugs and towels, and make them shine. Who knows, you might be so impressed you begin a new habit.

Dimly Lit Rooms
A buyer is visiting to SEE your house. Can’t see, do you honestly think they will make an offer to purchase. Brighten it up:

• Replace dim light fixtures
• Install additional light fixtures
• Install (quality) sun tunnels or skylights
• Remove heavy drapes to let the light stream through windows
• Repaint dark rooms with colors that reflect light
• Trim trees and shrubs that shade the house
  

Dirty and fogged windows are another buyer turnoff. Clean them inside and out to bring in more light. If possible, replace any double-pane windows with broken seals. You can find them by looking for a foggy residue that cannot be removed.

A House Full of Busy Wallpaper
Busy wallpaper turns off most buyers. People who love wallpaper will rarely like what you've chosen. You must appeal to the masses when selling your home. Don’t paint over it, because it will be obvious that you did. Buyers know that paint makes removing it even more difficult.

Damp Basements
Dampness or damp smells in the basement screams leaks! Most problems we find are not caused by faulty foundations. They occur because rainwater is being diverted towards the foundation instead of away from it.

• Grade slopping toward the home
• Clogged gutters and underground drains
• No rain gutters along roofline or leaking gutters
• Downspouts aimed the wrong way
  

How difficult is it to go outside the next time it rains and determine where runoff water is going. Don’t have an umbrella? Buy one!

Bugs
Roaches, spiders, and insect that shouldn't be in the house. Get rid of them.
Poor Curb Appeal
If you can’t grab a buyer from the curb you will not sell your home for top dollar. Minor repairs, a fresh coat of paint, new front door, and new garage doors to mention a few ideas make a world of difference. The last house I sold I did all of the above and went one better with a new $600.00 mail box as the curb which screamed “look at me I’m special”. There was a much better house than mine across the street. Which house do you think sold first and at a better price?

Gutters with Plants Growing in Them
Seriously, some people never clean their gutters. What do you think buyers wonder about other issues with the house when a tree is growing out of your gutter? Remember the drainage issue above? Cleaning clogged gutters might help.

Sellers Who Hang Around for Showings
Yes, you... leave the house during showings. Home buyers feel awkward about opening closet doors and lingering for a really good look at the house if the seller is home.

Fascinating, most of the items home buyers hate are issues you can correct without spending a lot of money. Remember this, if your house develops a reputation among agents as the house that smells, the house with the huge barking dog or the house where the owner won't leave people alone, it will be too late. Your house will be last on their list to show potential buyers.

Bring your stale listing back alive!

Has the activity on your listing died?

Do you have a listing which has become stale and stagnate over the winter months?

Is there anything that you can do to create interest as you enter the spring market?

Bring it back alive for the spring market.


The first thought is always, yes, reduce the price. Realtors have always had issue with my position that if the house was priced right in the first place NEVER, EVER, REDUCE THE PRICE. Why not just put a big sign out front “FIRE SALE – GET A DEAL NOW – MAKE A LOW OFFER – WE WILL ACCEPT ANYTHING”.

I remember in the mid 70’s when things were bad I had a newly constructed home which set on the market for a very long time. Instead of lowering the price I bucked the market trend and raised my price every month to cover the cost of caring the home in inventory. This house ultimately sold at the higher price making my cost of caring the home zero. Fluke of the times, maybe, but who knows since others ignore this out side of the box idea. Don’t think lower price, make it better, and raise the price.

Yes, I am known for functioning outside of the box. Maybe you need to think outside of the box as well when it comes to moving your stale listing. Oh, your home/listing is perfect and couldn’t possibly be improved. All that says is that you haven’t looked at the home from the proper perspective. I don’t find any “perfect” homes. If yours is so “perfect” why hasn’t it sold?

Here are some suggestions for consideration. Once completed, make a big deal out of it with changes to the listing information, new sheets in the house, information to Realtors, a special luncheon or open house to showcase the changes.

• Rent a storage unit: Almost every home shows better with less furniture. Leave just enough furniture to exhibit the room's function and abundant room to move around. Empty house, don’t fret many of these items will apply. Some of the worst homes I inspect are empty, apparently ignored, homes. Out of site, out of mind.
  
  
• Disassociate yourself from the home, set aside your emotions, this isn’t personal, this is a business transaction. This isn’t YOUR home any longer it is the home of a potential buyer. Walk through the home, become that buyer, what would be your impression. What could you change to make a better impression?
  
  
  • De-cluttering and maintain it without clutter
  • Pack up your knick-knacks or donate them
    
  • Put things you need on a daily basis in a box you can pull out when needed and put up when leaving for the day when a showing might occur.
    
  • Different art, trinkets, wall hangings, etc
    
  • Clean off the kitchen counter
    
  • New appliance
    
  • New counter tops
    
  • Replace light fixtures
    
  • Replace old door hardware
    
  • New floor covering, wood flooring or ceramic tile
    
  • Remove wall coverings and add paint (today most buyers dislike wall coverings)
    
  • Clean up the yard, keep it mowed, trim the shrubbery, plant flowers, add landscaping, keep it immaculate
    
  • Got a pool? Take the cover off, clean it up and make it sparkle.
    
  • House empty, stage it with furniture and trinkets, not good at doing that, hire a professional.
    

• De-personalize, home buyers are distracted by personal items.
  
  
  • Remove personal photographs and trinkets and replace them with impressive looking non-personal items. You do not want a potential buyer thinking of this as YOUR home, you want them to be able to easily imagine their families personal photo and belongings in THEIR home.
  • Minimize storage and clothing items in closets. Move what you don’t need in the short time somewhere else.
    

• Rearrange bedroom closets and kitchen cabinets. Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
  
  
  • Alphabetize spice jars.
  • Neatly stack dishes.
  • Turn coffee cup handles facing the same way.
  • Hang shirts together, buttoned and facing the same direction.
  • Line up shoes.
    

• Make Minor Repairs:
  
  
  • Replace cracked floor or counter tiles.
  • Patch holes in walls.
  • Fix leaky faucets.
  • Fix doors that don't close properly and kitchen drawers that jam.
  • Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls. (Don't give buyers any reason to remember your home as "the house with the pink bathroom.")
  • Replace burned-out light bulbs.
  • If you've considered replacing a worn bedspread, do so now!
    

• Search for issues in need of repair which might standout to the potential buyer or home inspector and repair them. Are you blind to issues about your home or simply feel inadequate or biased? Hire a professional home inspector to take a look and make suggestions.
• Make the House Sparkle. As a home inspector I visit thousands of homes with new home owners. What do you think is the most impressive single item expressed even on new construction? Allow me to put it in their words. “This is the cleanest house I have every seen. I don’t know how they do it. I could never keep this house this clean.”
  
  
  • Wash windows inside and out.
  • Rent a pressure washer and spray down sidewalks and exterior.
  • Clean out cobwebs.
  • Re-caulk tubs, showers and sinks.
  • Polish chrome faucets and mirrors.
  • Clean out the refrigerator.
  • Vacuum daily.Wax floors.
  • Dust furniture, ceiling fan blades and light fixtures.
  • Bleach dingy grout.
  • Replace worn rugs.
  • Hang up fresh towels.
  • Bathroom towels look great fastened with ribbon and bows.
  • Clean and air out any musty smelling areas. Odors are a no-no.
    

OK, now you have accomplished the task, have a party (special advertising, Realtor luncheon, open house), get the word out that this isn’t the same listing you might have looked at this winter. Please come back and look again. Haven’t seen this listing yet, you are missing out.

Selling in a Buyer’s Market

In case you aren’t paying attention this is a “Buyer’s Market”. Buyers have many options to choose from. If they are turned off by something in your listing, guess what, they will simply move to the next one.

It never ceases to amaze me at the blatantly obvious issues which repeatedly surface as part of home inspections. Most are obvious items which could have been addressed prior to placing the home on the market but are ignored. I have come to the conclusion that some buyers and apparently some Realtors must be blind when they list a property for sale. Do you desire to get a contract on your listing at a reasonable price? It might be wise to pay attention. Do you desire to close on that contract at the contracted price with minimum repair cost? Then you had better pay even closer attention.

Here is a list of very common issues ignored by many sellers that become a major issue during the potential buyer’s consideration of the listing or during the inspection process:

1. Basement or crawl space water problems caused by negative drainage around the house and/or lack of, improperly installed, damaged leaking gutter and downspout systems. Grade sloping toward the house? Gutter issues? FIX IT NOW! A potential buyer will often overlook evidence of basement or crawl space water issues if it is clearly evident you have attempted to address the problems causing it. How difficult is it to tell that water is running toward the home?
2. Evidence of any type of leakage such as stains, damage, rot, fungal growth or visible standing or dripping water from plumbing, condensation or roofing issues. FIX IT NOW! Oh, it’s been that way since I moved in doesn’t get it with buyers.
3. Rot and termite damage. FIX IT NOW!
4. Fungal growth, call it whatever you please, mold, mildew, black stains, dirt, it doesn’t mater, clean it up.
5. Got polybutylene pipe, aluminum wiring, EIFS – synthetic stucco disclose it up front. No need for these types of items to be a shock to your potential buyer.
6. Have an active underground fuel storage tank? Have it checked for leakage and get a written certification that it hasn’t leaked. Have an abandoned underground storage tank, have it checked for past leakage and contamination then properly remove or fill it.
7. Is there an abandoned well on your property? Check with your local health department and have it properly closed per their regulations.
8. Is the listing on a well or septic tank system and public water and/or sewer available but not connected? Guess what, this is usually a home outside of the urban limits and there is a very good possibility the buyer will need an FHA loan. Public water and/or sewer available but not connected? FHA will not fund the loan until it is and they don’t care how it happens it simply must happen. Why not simplify the negotiations and connect it now?
9. Are there obvious cracks in your home or evidence of movement? Call a structural engineer now and either deal with issues or at minimum have a report that states the implications aren’t a concern at this time. Have an issue which is a concern? Fix it. Can’t afford to fix it, fine, have a report from an engineer and a price so the potential buyer knows upfront what to expect the cost of repair to be.
10. Broken windows or double pane windows with broken seals fogged between the glass panes? Replace them!
11. Have your heating and air conditioning systems checked out, running like a top, cleaned up and standing tall.
12. Old, damaged or non-functional appliances? Replace them.
13. Toilet loose? Secure it.
14. Door will not close, latch not engage, window will not open, hardware damaged or inoperative? Fix it.
15. Exposed electrical wiring or wiring connections? Fix them.
16. Don’t have a clue about the condition of your home? Call an experienced, reputable home inspector to check it out upfront.
    

Would you rather the potential buyer walk away or that much desired offer to purchase fall apart? Fine, ignore these issues and the buyer moves to the next one or I get paid to do the next inspection for the client who decides your listing isn’t worth it. I know you don’t believe this but nothing gives me greater pleasure than to walk away from a home inspection knowing that my client is pleased and that you, the seller and listing agent, will have a smile on your face when you receive my report.

If you are a seller then most likely you are also a buyer. Look at your listing as if you were the buyer rather than the owner. In what condition will you expect the home you are purchasing? Do you honesty think that your buyer should expect any less from you? Take a walk in their shoes, pay attention and you just might sell your house.

Don’t simple place you house on the market, prepare your house to sell in this market.