Massachusetts Real Estate News annually provides an article round-up of some of the best real estate articles for the past month. The articles recap some of the best tips for buying and selling homes. They enable consumers to make the best decisions possible.

Check out April’s selection:

The Effects Of Days On Market

Days on Market (DOM) is a vital indicator in real estate that measures how long properties stay listed before being sold. This metric offers insights into market dynamics, indicating whether current conditions favor buyers or sellers.

A low DOM typically signals a seller’s market where properties sell quickly, often leading to competitive pricing and even bidding wars. This scenario is advantageous for sellers, as it can result in higher sale prices and a quicker sales process, minimizing the carrying costs associated with maintaining a property on the market.

On the other hand, a high DOM suggests a buyer’s market, where properties linger longer due to lower demand. This can lead to price reductions and give buyers more leverage during negotiations.

Buyers can use a high DOM to their advantage, potentially purchasing homes at lower prices or negotiating more favorable terms. Buyers need to analyze the DOM to understand how much room there might be for negotiation based on how long a home has been on the market.

Understanding DOM’s implications helps buyers and sellers strategize their moves in the housing market. Sellers may need to adjust their pricing strategies or improve their property’s appeal to reduce DOM.

At the same time, buyers can gauge a property’s popularity and potential value by observing how long it has been listed. This knowledge is crucial for making informed decisions and optimizing the outcomes of real estate transactions.

What Does a Real Estate Agent Do?

One of the questions many consumers ask is what exactly a real estate agent does to earn their commission. Whether you are buying or selling, different tasks must be performed. Many consumers fail to realize that there are various skills involved in each.

You will see a complete breakdown of what a buyer’s and seller’s agent do to earn their keep. Learn their roles and responsibilities for keeping the transaction on track from start to finish.

You should always interview a few Realtors to ensure you make the right choice.

Empowering Your Home Buying Journey

A buyer’s agent is an essential ally for homebuyers. They offer insight into the local real estate market and guide them through the complexities of property searches and transactions. An agent representing the buyer helps evaluate wants, needs, and property values, negotiate deals, and protect the buyer’s financial interests.

Karen Highlands’ article suggests that choosing the right buyer’s agent is crucial and involves carefully considering their experience and local market knowledge. This ensures they can provide the most beneficial advice and support throughout the buying process.

Working with a buyer’s agent is especially advantageous for those new to real estate or unfamiliar with the local area. They facilitate a smoother buying experience and provide access to a broader range of properties and insider knowledge on fair pricing and investment potential.

Why Isn’t Your House Selling?

One significant reason homes fail to sell is improper pricing. Homes priced too high for their market can deter potential buyers, even if they have desirable features or upgrades. The asking price must be aligned with comparable local properties for a home to sell to remain competitive.

Paul Sian also points out effective marketing is another crucial factor. High-quality photos and a robust online listing presence are necessary to capture the interest of a large pool of potential buyers. Descriptions should highlight key features and selling points without overwhelming prospects with irrelevant details.

Additionally, the condition of the home at showings plays a critical role. Cluttered or personalized homes can make it difficult for buyers to envision themselves living there.

Ensuring the property is clean, decluttered, and depersonalized can help make a better impression. Moreover, being flexible about showing times can increase the number of potential buyers who view the property, thus increasing the likelihood of a sale.

Home Improvements That Give A High Return

Strategic renovations can significantly boost return on investment in home selling. Focusing on kitchen and bathroom updates, often the most scrutinized areas by potential buyers, can enhance a home’s appeal and functionality. These upgrades modernize the space and offer a substantial return by aligning the home with current market trends.

Bill Gassett also suggests that the home’s exterior, including landscaping and façade enhancements, also ranks high for ROI. These changes improve the first impression of a property, increasing its curb appeal and attracting more potential buyers.

Additionally, addressing essential repairs, such as fixing roofing or plumbing issues before they become major, ensures that the home is perceived as well-maintained, which can be a decisive factor for buyers.

Investing in energy-efficient upgrades is another area where sellers can see a significant return. Modern buyers are often looking for homes with energy-efficient windows, insulation, and heating systems, which reduce the home’s carbon footprint and lower utility bills, making these homes more attractive.

Avoiding the worst returning investments is also crucial. Otherwise, you will be throwing money away.

Increasing Your Home Security

Improving home security is increasingly important for homeowners looking to sell or buy. Enhanced security measures, such as high-quality locks, alarm systems, and motion-sensitive lighting, can significantly deter potential intrusions, making a property more appealing to safety-conscious buyers.

Viki Moore says smart home security systems are popular with home buyers. These systems integrate with mobile devices, allowing homeowners to monitor their properties remotely, offering additional security and convenience. This feature is beautiful to tech-savvy buyers and those who value the ability to maintain oversight while away.

Physical upgrades like reinforced doors, secure windows, and strategic outdoor lighting can improve a home’s security while boosting curb appeal. These improvements make the property safer and contribute to its overall market value, appealing to a broader range of buyers.

Can You Comp New Construction To A Resale Home?

In real estate, comparing new constructions to older homes for appraisal purposes involves careful consideration of several factors. New homes typically feature the latest designs and technologies at higher prices. However, older homes have qualities that can appeal differently to buyers, such as classic architecture and mature landscapes, which may not be present in newer constructions.

Appraisers must make significant adjustments for these differences, considering factors like the older home’s age, condition, and location.

Furthermore, the market perception of new versus old can vary significantly. Some buyers might value the unique characteristics and potential lower cost of an older home, while others might pay a premium for the turn-key readiness of a new construction. Sellers and buyers must be aware of these perceptions as they can affect the appraisal value.

The choice of comps (comparable sales) used in an appraisal is crucial. When an older home is compared to a new construction, adjustments are made to account for age, condition, and feature disparities.

These adjustments help ensure that the estimated value reflects what the property would likely sell for if placed on the market. Understanding these appraisal practices allows buyers and sellers to set realistic expectations about property values in mixed-age communities.

Choosing The Right Real Estate Agent

When choosing a real estate agent for selling your home, prioritize finding someone who specializes in your specific market and has a proven track record of successful sales. This agent should offer a robust marketing plan that includes digital and traditional methods, ensuring your property reaches a broad audience. Professional staging and high-quality photographs are essential for making a solid first impression on potential buyers.

Sellers should also interview multiple agents to compare their strategies, experience, and commission rates. An honest and open communication style is vital to a successful partnership.

Look for agents who can provide detailed answers about their approach to selling your home and demonstrate their negotiation skills.

For buyers, select an agent who is highly responsive and well-informed about the local market. This agent should be willing to work within your availability and proactively find properties that meet your criteria. Understanding the nuances of local market trends and having strong negotiation skills will help secure a property at a fair price.

Luke Skar highly recommends buyers and sellers ensure that their agent is transparent about all aspects of the buying and selling process, including potential conflicts of interest and all associated costs. This transparency builds trust and helps ensure that the real estate transactions proceed smoothly.

First-Time Home Buying Tips

Understanding the nuances of the local real estate market is critical for first-time home buyers. It is advisable to start by evaluating your financial health, including your credit score and debt-to-income ratio, and saving for a down payment, which could be less than the traditional 20% in some cases.

Knowledge of different mortgage types and terms and the availability of first-time homebuyer assistance programs can significantly help manage the financial aspects of buying a home.

In addition, assessing the long-term implications of your purchase is crucial. Consider factors such as the potential for property value appreciation, the cost of property taxes, and maintenance expenses. First-time buyers should also be aware of the various contingencies to include in their offers, like home inspections and mortgage approvals, which can protect them during the buying process.

Working with a knowledgeable real estate agent who specializes in helping first-time buyers can provide guidance and make the process more manageable. This professional can help navigate the complexities of real estate transactions, assist in finding properties that meet specific needs and preferences, and negotiate effectively on behalf of the buyer.

What Home Inspection Problems Are Common?

During home inspections, several common issues often come to light, which are crucial for buyers and sellers to understand. Structural problems such as foundation flaws, roof damage, and building integrity issues can lead to significant repairs if not addressed.

Systems within the home, including HVAC, plumbing, and electrical, are also typically scrutinized for functionality and safety. If improperly maintained, these systems can be expensive to repair or replace.

Additionally, environmental concerns such as mold, radon, and asbestos can pose health risks and impact a home’s livability. Buyers must be aware of these potential issues as they can significantly influence the decision-making process and negotiation terms.

On the other hand, sellers might consider addressing these issues before listing the property to enhance its marketability and avoid future complications during the sale process.

Finally, home inspection findings can provide buyers with valuable bargaining leverage. Buyers must attend the inspection, understand the report thoroughly, and discuss any significant concerns with the inspector. This information can be crucial for negotiating repairs or adjusting the purchase price accordingly.

For sellers, understanding the potential issues beforehand allows for more effective pre-market preparations and can streamline the selling process.

Pros and Cons of Taking a Home Off The Market and ReListing

Erika Rogers, Red Rock Realty in Southern Utah, shares the pros and cons of taking a listing off the market and re-listing it later:

Deciding to remove your home from the market can be strategic, allowing for presentation improvements or representation changes despite seeming like a setback. Market slumps, personal circumstances, or unsatisfactory property conditions might necessitate such a decision.

This pause provides an opportunity to reassess market conditions, make necessary property enhancements, and refine your listing strategy. Communication with your agent is essential during this period to effectively plan for relisting.

Although temporarily taking your home off the market has advantages, such as reducing sales pressure and allowing for strategic enhancements, it can also lead to lost time and potential buyer skepticism upon relisting.

Real estate expert Bill Gassett notes that while relisting was once a tactic to reset market days, most MLS boards now track accumulated days, making this strategy less effective.

Overall, careful consideration of various factors and close collaboration with your agent can help navigate this process and improve sale prospects upon relisting.

Red Flags To Know During a Home Inspection

PREVIOUS REAL ESTATE ROUNDUPS

Review the real estate roundups below for advice from the previous two months.

• Real Estate Roundup for March 2024 – get helpful insights from industry pros on buying and selling.
• Real Estate Roundup for February 2024 – see some of the valuable articles shared in March by some of the best bloggers around the country.

The author of this article, Kevin Vitali, is a real estate agent in Haverhill, MA, with 23+ years of experience helping buyers and sellers achieve their housing goals.