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Massachusetts home sales

Selling a Home in a Buyer’s Market

by Bill Gassett on September 16, 2010 · 19 comments

Selling a Massachusetts home in a buyer’s market

The title of the article really should read buying and selling a home simultaneously in a buyer’s market.

In my daily life as a Massachusetts Realtor I come across lots of folks who do not sell their home even though they want to. The thought process is that they have bought sometime over the last five years or so and know if they put their home on the market they will be taking a loss.

In the Metrowest Massachusetts area the peak of the Real Estate market was in the Spring of 2005 so if you purchased a home after that there is no question you will be taking a loss on that home if you sell today (September of 2010). In this area of Massachusetts depending on the town and the type of home, the peak in values could be down anywhere from 20%-30%.

When people think about the concept of selling their home many can not get past the fact that they will take a loss on their current home. They fail to see the bigger Real Estate picture. If you are going to stay local, selling your home in a buyer’s market is not an issue because you are going to be purchasing a home under the same market conditions!

Here is a simple Real Estate concept that many consumers do not grasp. You bought your home for $500,000 and using a figure of 20% it has dropped in value to $400,000. You have lost $100,000 on paper! This is where the thought process ends for many. People get so caught up thinking about their loss that they forget when you are moving up in the market what used to be an $700,000 home is now worth $560,000 using the same 20% drop in value.

If values had remained flat and there wasn’t a Real Estate correction you would be going from a home valued at $500,000 up to a home worth $700,000. A difference of $200,000. In the present buyers market scenario the difference is $400,000 to $560,000 or a spread of $160,000. If you are moving up you saved yourself $40,000.

What if you are moving down in the market? Lets turn the above example around. You owned an $700,000 home that is now worth $560,000. It is too large for your needs and has become expensive to heat, maintain and pay taxes on. You desire something more manageable and affordable.

Well guess what the home that you planned on buying five years ago for $700,000 is now only going to cost you $560,000. So what has happened is you have lost $40,000 in buying power. A 20% loss on 700k = $140,000. A 20% loss on $500,000 = $100,000. $140,000 – $100,000 = $40,000

So moving down isn’t ideal as moving up but a loss of $40,000 is certainly much different than taking a paper loss of $160,000 especially if it is going to make your payments and cost to maintain the home much more reasonable.

The biggest differentiating factor in looking at whether or not it makes sense to move often times boils down to what you are trying to accomplish. Is it a lifestyle change, looking to get into better schools for the kids, having a shorter commuting time, etc.

One of the biggest factors that should never be overlooked in your decision making process is the present cost of money compared to what you are paying right now. In other words what does the current interest rate environment look like. If you can get an even better interest rate than you currently have on your present home it could be the perfect time to find a new home.

Once you have made up your mind to sell your Massachusetts home there are three things that can ensure you will be successful:

Price your home properly.
Pick a top producing Realtor to work with.
Make your home presentable and easy to show.

If you do these three things you can be successful in a buyer’s or seller’s market. There are plenty of Massachusetts homes still selling! The common denominator in most Real Estate sales are these three items.

Massachusetts Home Buyer Turn Offs

by Bill Gassett on June 10, 2010 · 10 comments

Getting a Massachusetts home sold today is a lot more difficult than it used to be. The fact of the matter is that there are far fewer buyers that can qualify to buy a home today. We all know that lending practices have tightened and rightfully so.

There are also millions of people that have lost their homes either via a short sale or foreclosure that can no longer think about being a home owner.

When the housing supply exceeds the demand it creates an environment that home sellers really need to be conscious of. When there is an imbalance in the market between the number of buyers and sellers, the process of selling a home becomes far more competitive.

The most important factor in getting any home to sell is to make sure the home is priced properly. Without the correct list price you will be in an up hill battle to sell your home. Besides a proper list price and a well coordinated marketing campaign, another top consideration is to make a good 1st impression on the buyer!

Most buyers today have the option and will take advantage of looking at lots of homes. As a seller you want to make sure your home stands out from the competition and I don’t mean in a bad way! Here is some simple advice on what NOT to do when selling your home:

Wet Basements and leaky roofs

One of the biggest obstacles any Massachusetts home seller faces is the threat of water in their home. There is nothing that will turn off a home buyer more than dealing with a water problem.

Any buyer that has ever dealt with a water issue will certainly cross your home off the list no matter high nice it is. The thought of water penetration scares even the most hardened buyer.

My advice is simple! Make sure you get it corrected before the home ever hits the market. Don’t wait for the home inspection to take place and have the inspector inform the buyer that the home takes on water. If the water is entering the basement invest in a sump pump and a dehumidifier when it is an older home. If the the property is a younger and the basement has the potential to be finished, you are going to want to make certain that it is bone dry. This could include getting a B-Dry system if necessary. If you don’t correct the problem you will be rendering the lower level useless to a buyer.

Think you want to hide your water issue from the buyer? Think again! This is a Massachusetts property disclosure issue that you could easily get sued on. Always disclose what you know especially if you do not intend to fix the issue.

Your home stinks

Strong odors in a home are clear turn offs to buyers. Whether the smell is from smoking which by the way you are probably so accustomed to you don’t even notice or to pet odors you want to make sure they are gone by the time the for sale sign hits the lawn. Another common pitfall occurs from strong cooking odors.

While you may not find the odors offensive, you are not buying your home – someone else is! Sometimes getting rid of such smells as smoke, pet odors, mildew, and others can be difficult. If you find that standard house hold cleaning items do not do the job, I would recommend getting an ozone machine. A powerful ozone machine can do wonders for removing home odors.

Let the light in

Buyers are attracted to clean bright homes where there is an abundance of natural light. One of the easiest things to do is to make sure all the blinds in curtains are drawn in your home.

I can not tell you how many homes that I go into that are not staged properly. Letting the light into all the rooms in your home is one of the most cost efficient home selling tips.

Due to the positioning of some homes there will be rooms that will be dark whether of not the curtains are drawn. In this instance you want to make sure you have some lights that are on timers during the day. While natural sunlight is preferred a few well placed lamps is better than nothing!

Outdated decor and too much stuff

Most home sellers incorrectly assume that every buyer should be able to see beyond the orange shag carpets, yellow toilets and checker board dining room wall paper. Sorry folks they don’t. Most buyer do not have that sense of vision.

Even if you find one that does you can be sure they will be discounting their offer less than what the actual cost is to remedy the problem. Making these kind of improvements to a home can go a long way in assisting the saleability.Replacing carpets, painting and removing wall papers are simple and inexpensive fixes.

If you just have too much “stuff” that has accumulated in your home over the years you may want to think about getting storing some of it in the garage or basement if you have the room. If not you should give serious consideration to renting either a POD or storage facility. To really make your home stand out from the crowd you could always consider hiring a professional stager. I have also put some tips together about staging a Massachusetts home for sale. Lastly, your stuffed moose head on the wall and the flashing neon bar sign are only impressive to you.

Don’t hang around the home

This is Real Estate 101. Over the years I have met some sellers who are extremely prideful of their place. There is certainly nothing wrong with that but you don’t want it to get in the way of your sale.

It is rare that a buyer is going to want a guided tour of your home. This is the Realtors job. Your home is going to sell itself. If the buyer is emotionally connected to your home you have nothing to worry about.

Unfortunately, your pride and the tour are not what will be the deciding factor if they decide to purchase. More often than not, the buyer and their agent are not going to feel comfortable if you remain in the home. The same holds true for sellers who believe accompanied showings help sell homes. They do not!

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About the author: The above Real Estate information on Massachusetts home buyer turn offs was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of many Metrowest towns for the last 24+ Years.

Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!

Tagged as: Accompanied showings Massachusetts, Home buyer turn offs, Home odors Massachusetts homes, Home selling Massachusetts, Massachuetts home selling tips, Massachusetts home sales, Massachusetts home staging, Real Estate Turnoffs, Wet basements Massachusetts

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Staging and Preparing a Massachusetts Home For Sale

by Bill Gassett on May 6, 2010 · 5 comments

Back in the boom times of the Real Estate market from the mid 1990′s until the mid 2000′s getting a Massachusetts home truly ready for the market was far less important than it is today. Every home seller today is in stiff competition with the next guy down the street with far less buyers in the market place.

This makes it far more critical for your home to be polished when the for sale sign gets placed on the lawn. In a buyers market those that are looking at your home are far less forgiving. It is easy for buyers to be choosy because there are so many more homes for them to look at. Massachusetts homes that are not in good shape can take a severe price beating in this environment. Most buyers are looking for turnkey properties. Far fewer buyers are interested in spending the time and energy of fixing up a sellers headaches.

One of the things you hear talked about a lot in Real Estate circles is “curb appeal”. 1st impressions are an important factor when you are selling a home. Since the 1st thing a buyer looks at when they visit your property is the yard and the exterior of the house, you want to make sure that at the very least it is presentable.

Here are some tips for minimal money that will help to facilitate a more timely sale:

EXTERIOR HOME SALE TIPS

Clean up all debris from the winter months including any tree limbs, branches, and left over leaves.
Clean the driveway and walkway of any sand and other debris.
Pay careful attention to have all your landscaping beds raked and weeded out. Adding a fresh coat of mulch always goes a long way.
Trim the bushes if needed. Pay attention to keeping them a few feet back from the home allowing for proper ventilation.
Consider planting some hearty Spring flowers that have lots of color.
Assess your driveway and get it seal coated if it looks old and worn. Seal coating is fairly inexpensive and really does wonders to give your home a new and appealing feel.
Clean out your gutters. Leaves hanging out of gutters creates a feeling that the home is not well maintained.
Hose down your deck and consider seal coating the surface if needed.
Look for any rotted trim and replace as needed.
The entry way to your home should sparkle! A fresh coat of paint on the front door always looks great. Make sure you remove any cob webs.
Consider adding a few potted plants at the entry with some vibrant flowers.
Use a garden hose and spray down any areas of your siding that may have mold or mildew build-up.

Before visiting some tips for sprucing up the interior of your home please keep in mind that a buyer almost ALWAYS estimates higher than the actual cost to make necessary repairs and or improvements. It will cost you far less money to do these things than letting the buyer deduct an appropriate credit in their mind.

INTERIOR HOME SALE TIPS

The 1st thing any home seller should consider is taking any unnecessary possessions and remove them from the house. You want to make your home feel as large and airy as possible. De-cluttering old furniture, boxes, and nick knacks go a long way in making a home presentable. I would consider a local storage center in your area for these things, as it is well worth the money spent. This of course is if you don’t have the space in a basement or attic.
If there is not a local storage facility, I would suggest renting a storage unit from PODS (portable on demand storage).
Once the clutter has been removed a major Spring cleaning should take place. The bathrooms and kitchen should be spotless! These are the rooms that buyers will pay the most attention to. These rooms are the most costly to upgrade so buyers will be much more picky here.
Clean out all the closets in your home. Buyers are always looking for closet space. Having the closets neatly organized is important.
Wash down all the windows. Homes always show better when there is plenty of natural light. Don’t let years of grime and dust get in the way.
Touch up painting is essential in any home sale. Concentrate on high traffic areas where scuff marks and worn paint are easily visible. Homes that have painting issues really stand out but in a bad way!
Always paint or bleach any old ceiling stains away. For example, if one of your kids took a shower without the curtain fully closed and there is a large stain in the kitchen ceiling below the bath above get it fixed! The fact that it looks awful is reason enough but buyers will also assume you have a plumbing issue.
Clean out and organize the garage. A spacious garage will be a consideration for many Massachusetts home buyers.
In areas of your home where natural light is not the best make sure you have lamps with higher watt bulbs. In addition make sure they are on for showings. There is nothing worse than a dark home.
Clear your kitchen counters completely of everything but the bare bones essentials. Buyers love to see spacious counter areas.
Clean all faucets,mirrors,lights, and ceiling fans. There should be no visible dust bunnies!
Re-caulk any tubs, showers, sinks, or tile work that has loose grout.
If you have leaking faucets make sure they are corrected before placing your home for sale.

Watch the terrific Howcast video below that does an excellent job of pointing out the things that are necessary to prepare a Massachusetts home for sale. Staging a Massachusetts home is an important factor in improving your chances for a timely sale.

While getting your home to look outstanding is an important piece of the home sale puzzle don’t forget that the right price and picking a top producing Realtor to work with should be the two most important considerations.

Best of luck with a timely sale!

How Not to Sell a Massachusetts Home

by Bill Gassett on April 26, 2010 · 3 comments

Every week on the Multiple Listing Service (MLS) you see countless homes that come up “expired”. For those that are not familiar with the term, an expired listing is a home that did not sell. When looking over the possible common denominators of why some homes do not sell the reason is usually pretty easy to spot.

In most cases the reason is very simple. The home was improperly priced. In a very competitive Real Estate environment, the price that is set on a home can be more than 75% of the marketing!

What the hell do you mean by that Bill? Very easy… if you come on the market at the wrong price, the best Realtor in the country with the most sophisticated marketing will not be able to get a home sold.

As the graph above shows, the further you get from market value, the percentage of buyers dwindles.

So who is to blame when a home comes on the market at the wrong price? Tough question to answer but most of the time the fault lies with the Realtor. How so? The Realtor is the one who does the market evaluation on the property and gives the seller a suggested list price and probable sale price. I know there are some that are probably thinking that is all well and good but on many occasions sellers think their homes are worth more than the suggested value and insist of the home being listed for a higher price.

My response would be the Realtor doesn’t have to take the listing! The problem in our industry is that for every overpriced home there was a Realtor who was willing to take it. There are some agents that have the hardest time walking away from potential business.

Then there are the Real Estate agents that always tell sellers what they want to hear in order to get the home listed, especially when the agent knows they are in competition with other Realtors. Shocking but true. Buying a listing in this industry has been going on since the 1st Real Estate companies went into business. Tell em what they want to hear, get a signature on the contract and then beat em over the head for price reductions. So unprofessional but it happens a lot! Some agents don’t care because they use a listed home to generate buyer calls which can turn into future business.

How do you avoid this? When you are sitting down with Realtors to go over the value of your home you should be getting some kind of appraisal report preferably with pictures that show other like homes that have sold. The homes being compared to yours should look similar. If they don’t a red flag should be going up in your head. Likewise, if the homes do look similar yet the agent is telling you a much higher price for your home there should be a rock solid explanation of why that is the case.

Remember fair market value is what other similar homes have sold for. Not what you need or want to sell your property for. Buyers could care less what your perceived needs are. All they care about is paying the right price.

Over and over again statistics show that homes priced properly out of the gate sell for more than those who believe a higher list price leads to a higher sale price. As the days on market grows for any property on the market so does the gap between the original list price and final sale price. Ask any buyer which home they feel they have more bargaining power on…the one that has been on the market for 200 days or the one that has been on 20.

The second biggest part of the equation to having a successful home sale is picking the right Realtor.

Over the years this has been the one thing that really baffles me about the Real Estate business. Selling a home is a huge decision yet on many occasions there is so little effort that goes into picking a Real Estate agent to work with.

Unfortunately, some folks mistakenly believe we all do the same thing to sell homes. This could not be further from the truth! Choosing a top producing Realtor should be an important criteria yet it does not always work that way.

In most industries when you want a hire someone to do work for you the persons track record and qualifications are of the utmost importance. From what I have witnessed 1st hand, a fair amount of time this does not enter a sellers mind when putting their home on the market. Instead they pick someone they think has a good personality or again tells them something they want to hear.

In most industries there is an 80/20 rule where 80% of the business is done by 20% of the people. Most people do not realize that in the Real Estate industry 94% of the business is done by 6% of the agents! While that is mind blowing, it also is easy to see why there can be a lot of disappointment amongst consumers with their agents.

So much goes into being a successful Realtor and an entire article could be written about it but some of the important traits you should be looking for are a past track record of success, a powerful marketing plan centered around the internet, excellent communications skills, and brutal honesty. If a Realtor possesses these four traits you are more than likely going to have a very pleasant experience selling your home or condo.

Asking some good Real Estate interview questions for Realtors always goes a long way in making better decisions.

Other obstacles to a successful home sale include making it difficult for people to get into the home and not presenting the home well. In a competitive market you want your home to shine not stick out like a sore thumb. It is awfully tough to sell homes when they look like the pits and equally as difficult when potential buyers can never get in to view it.

Massachusetts home sales

Selling a Home in a Buyer’s Market

Massachusetts Home Buyer Turn Offs

Staging and Preparing a Massachusetts Home For Sale

How Not to Sell a Massachusetts Home

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