Selling a Home – Karen's Perspective

How We Determine What We Can Offer on a Property

As an investor, I immediately explain to the seller that I won’t be able to pay as much for their property as an end user (someone who will purchase and live in it) because I need to be able to, over time, make a profit. They understand that. If they’re still interested in what I have to say, I continue on with what I can offer and why.

To determine what we can pay to purchase, we start with what it will cost us to sell at a later date, then we work our way back to today’s offer price. Selling numbers are EXTREMELY important to know before you buy.

Asking Price:
We determine what we will ask for the property when we sell by using online sites which gather information from county records. These sites show recent sales prices in the area. We prefer sales from the last 6 months and within ½ mile from the subject property.

Buyers Discount:
It’s very rare, in today’s market, for a buyer to offer full asking price. Nationally, the discount from listing price (market value) to selling price is 5-7%. We subtract this number from our predicted asking price.

11 / 02 / 2011
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Best / Worst Rehab Choices for the Money

Many of our students ask, “what should I do to this property to get the most return for my investment?”

Great question! And, before you begin any rehab on a property you plan to sell, investigate the return you can expect versus the amount you’ll spend to do the work.

For example, if you plan to spend $40,000 adding a sunroom, would you still do it if it would only raise your property value $15,000?

1. Upkeep. Probably the best advice for the least money is – keep up the property while you live in it. So many sellers go all out fixing broken cabinet doors, cracked windows, exterior paint, replacing blinds, etc. when they plan to move. Really? Why let your house deteriorate in the first place? Keeping your home in top condition allows you to love it while you’re there, keeps upkeep costs low and spread out and, when you decide to sell, it’s practically ready “as is.”

10 / 17 / 2011
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18 Rehabbing Tips and Tricks

Renovation

Other than price, what do you do to rehabs that makes the most difference? Here are some things we’ve found that help sell quickly.

Start with landscaping so people driving by are immediately interested, even while you’re working on it. Cleaning up the yard and front of the house first also thrills the neighbors and gets them talking positively. “Face lift” landscaping is fast and easy – pull out weeds, throw down pine needles. A bit of aeration and seed can mean new grass by the time the house is ready for the for sale sign.
Next, pay special attention to the front door and the entry hardware. This is the first up close viewing of your property. Make sure both the door and door knob are in excellent condition – that the knob is tight and works well and that the door not only looks good but opens and closes efficiently. Something as subtle as a loose doorknob puts the buyer on alert from the time they enter, even if only subconsciously.
Another subtle fix that adds a great deal of impact is Read more…

09 / 26 / 2011
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Selling Your House? Avoid these Mistakes

Guest Post

Thanks to Andrew Black for this article.

Considering selling? It may not be an easy decision. Disposing the property means bidding goodbye to all the wonderful, happy memories you and your family shared in the house. But it could be a consolation to realize the profits you could reap if you successfully sell at an ideal and profitable price tag.

Selling a house at an ideal price is not as easy as it may seem. Logically, prospective homebuyers want to acquire at significant discounts or lower prices. It may take time for you to sell your home at an agreeable price, so don’t expect the proceeds instantly. Here are the most common mistakes home sellers do when selling properties:

09 / 15 / 2011
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Pros and Cons: Home Ownership, Condo Ownership and Apartment Rentals

Guest Post

Thanks to Derek Dasher for the following post.

Home ownership is indeed the American dream. Many people dream of owning a two-story house with an attached garage and a white picket fence. Home ownership has been the American ideal since the 1950s and many people still go to college and save for years in hopes of eventually being able to purchase a home for themselves and their family.

But home ownership comes with certain challenges and is not for everyone. Some people-depending on their location, preferences and financial situation-are better suited to own a condo or rent an apartment. Do your research and evaluate your lifestyle to determine which option is best for you.

Home Ownership

08 / 22 / 2011
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HUD 1 Settlement Statement

HUD1

Anytime you buy or sell a piece of real estate, you receive, at or before closing, a summary of all fees associated with the purchase or sale. Confusion regarding the HUD1 are common, so let me simplify.

08 / 12 / 2011
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A Second Recession is About to Hit?

A “second leg” down in housing. Too much inventory. What do you think? And how will this affect your decision to buy or sell?

07 / 21 / 2011
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Let’s Go Girls..

daffodils

According to the National Association of Realtors, in 2010, single women made up 20 percent of all home buyers while single men accounted for only 12 percent.

The Joint Center for Housing Studies listed the three main reasons single women are buying homes in record numbers as: to relocate closer to a job or family; because they need more space; and, the number 1 reason is that nurturing female instinct, a strong desire to nest.

Women are a force in the workplace and make better salaries than previous generations. They understand the need for creating their own security and, divorce rates being what they are, no longer sit back hoping someone else will provide for themselves, their children and their future.

Later in their careers, divorced women and female retirees are downsizing on their own.

When buying or selling, the fact that single women account for one fifth of all buyers is a valuable number to have. In sales, it is critical to know your target audience and craft your product to meet their needs. Have you noticed automobiles with flower holders built into the dash? The automotive industry studies who their buyers are and so should you.

Armed with this knowledge, how will you market and stage your properties differently?

07 / 14 / 2011
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10 Steps to a Successful Open House

Yes, you should have an open house. But don’t just put a sign in the yard and leave the door open. To be successful, there must be some preparation.

1. Advertise a lot.

I advertise on any listing websites I have accounts with including, of course, our own company websites. We always post open houses on the MLS, Craigslist, Postlets (which feeds to multiple websites), Active Rain, Trulia, etc. Anywhere our houses are listed, I make sure to change the ad to include Open House, the date and times. And, if possible, advertise in neighborhood newsletters and websites.

I always send a neighborhood letter the week of open house letting the neighbors know that the house is now ready for sale and inviting them to come by and take a look. I point out that this is a great time for them to “pick their neighbor”!

06 / 30 / 2011
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Selling a Home

Rent out your Home or Sell It?

According to census data analyzed by Harvard’s Joint Center for Housing Studies and The Associated Press, the number of single family rentals nationwide jumped 2.3 million from 2006-2010. During the first half of the decade, it increased only 720,000.

Since the housing meltdown, nearly 3 million households have become renters. At least 3 million more are expected by 2015. Rentals are on the rise! Should you rent out your home rather than sell it?

Homeownership is at its lowest point since 1998 and has declined for 6 straight years.

In Costs to Sell Your Home, I listed the costs you will incur to sell your home and showed why, rather than losing your home to foreclosure or selling at a huge discount, you may want to rent your home in this growing renters market. As less qualified buyers look at more homes on the market, your options may be leading you to this solution.

Let’s look at some pros and cons of renting versus selling.