Should You Sell NOW?

I was at a listing appointment today and the prospective seller was wondering if he should sell now or wait until the market picks up some more. That is a great question and the answer is not the same for everyone. Prices in the Bothell area have gone up nearly 10% in the past year so if he waits a year he MIGHT pick up $35,000 or so in more value (if the economy does not completely tank in the mean time), but it will also cost him 10% more to buy his next home. In his case he is downsizing so the 10% gain in his new home would be less dollar wise than he would gain by waiting to sell his existing house. However, other clients are upgrading to larger homes, so for them their new purchase would be gaining dollar value way faster than their existing smaller home. The other consideration is the NEED to move. One client I have was recently married creating a blended family with 7 kids so they are busting out at the seams with two sets of furniture and way too many kids in a small house with very small bedrooms. Another just got a job out of state and needs to move right away. Another is retiring and just needs to downsize when the time feels right or he finds a smaller house he likes. Each of them have different time frames and monetary considerations that need to be taken into account. That is where a good real estate agent comes in. As their consultant he can give them as much data as they need to help them make the right decission for their situation. Residential inventory in the Bothell area is as low as i have ever seen it in the 10 years i have been an agent and interest rates are bouncing around the lowest they have ever been so the demand from buyers is about as strong as it is going to get right now. Houses that are priced right in good condition sell in a day or two with mulltiple offers common. So if you need to sell it is a great time to do it. Call me today so we can talk about the current value of your house, the options you have, and how the process works. d

Great article about getting your home ready to sell.

Check out this article about getting your home ready to sell from The Washington Times. It reinforces what I have written about before and adds a few other tips too. Just keep in mind to not go overboard with the updates when you are getting ready to sell as you will probably not get dollar for dollar back when you sell. d

Top 10 Worst Home Showing Mistakes

Here is a great article from the National Association of Realtors that mentions some of the points I have already written about and adds a few more. Some of the pet issues and embarising photos on the walls are pretty funny. Click the link to read about the 10 worst home showing mistakes.

Pricing your home to sell

Now that you have prepaired your home to sell, you need to bring in a professional to tell you what it will sell for in the crazy housing market in Bothell (or anywhere around the Puget Sound area for that matter). Your home will be worth what the market thinks it is worth; not what you want it to be worth, not what you owe on it, not what your mother thinks it should be worth, not what Zillow (or any other internet site says); only the market will tell you the exact price your home is worth for its condition, size, location and style. An experienced real estate agent who has studied your local market and has the skills to analyze the sales comparables that are on the market or have sold in the past few months can give you a really good idea, but even they will not be able to tell you the exact price these days. For the past 4 years the market pricing has been dropping every month, then when we hit 2012 something strange happened...we ran out of inventory. The demand is still there, but there are fewer houses on the market that at any time in the past 30+ years so we are seeing multiple offers and houses on the market for HOURS instead of months. I saw a new listing in Kirkland the other day only an hour after it was listed on the MLS at about 10pm. I did some comps and figured it was over priced by about $30,000 at $400,000, but it fit what my clients were looking for so the next day when my buyer got off work we went to see it. They liked it so i called the listing agent about putting in an offer and was told there were 3 offers on it already and 2 more coming in. Two were all cash with the inspection waived and 2 others had escilation clauses raising the already high price even farther. I asked the agent how he came up with the price since the comparables were so much lower. He said that he figured it was about $20k high, and he figured it would sell in a few weeks. He was totally shocked by all the offers on the first day it was available. Another in Bothell was very similar. Priced at $390k it needed some updating, had a dumpy back yard with medium large power lines just past the back fence. It took a little longer to sell, but had 2 offers in 2 days. To show that price really matters, a split in Bothell that was priced at $330k was judged by the market to be way over priced and has not had much of any activity in 60 days and they are now starting to drop the price. Everything about your house affects the price. If it is a split level that lowers the value, a rambler increases the value. Updated kitchens will help you get the best price for your home while all of the other things i told you about in previous postings will affect the price in a lesser way. Find a Realtor you trust and who has the experience in YOUR neighborhood to get the ball rolling and start packing.

6 Worst Remodels When Selling Your Home

Here is a good article about the 6 worst remodels when selling your home from Yahoo! Finance. The thing to remember is to not go overboard with all sort of high end bling that you may love, but the typical home buyer will just think is a waste of space or money. One recent example they do not list in this article is an in-ground, outdoor pool in Bothell (or anywhere in the Puget Sound region for that matter). I saw one at a house yesterday that took up almost the whole back yard and cost over $30,000 that the seller thought was a valuable feature and reflected that in their asking price. As soon as my buyers saw the pool, all they could think about was the liability of keeping the neighbor kids (and their own) safe, plus the expense of heating all that water in our cool weather. They would not even look at the rest of the house and we left. Another house i saw a few months ago had a custom hot-tub/steam room in the basement. It must have been at least $15,000 to build and all my buyers wanted to know was how much it would cost to get rid of it. So if you are thinking of selling in the near future, be sure your updates are not complete remodels and that you think of the monitary return on your investment not how much you would enjoy that expensive 'feature'. If you are thinking of selling your home (or any type of real estate in the Puget Sound Region for that matter) please call me at 206-214-5408 so we can discuss how you can get the most money when selling your property.

Return of the dreaded Clutter

This is a rerun of an earlier post, but one of the most basic rules about getting your home ready to sell!! I was showing a nice looking home yesterday that i had not previewed. When we got to the finished basement rec-room we discovered it was being used for a teenager's (we assume) bedroom/rock band practice room and general junk storage. There was so much stuff in there we could not even walk around and were afraid of what we might find amongst all of the junk. Needless to say we moved on to the next house. It would have been a challenge for the sellers to clean up all of that stuff (just from the volume of it), but it is going to have to be done when (or if) the house sells so why not do it before the house is on the market so potential buyers can actually see the rooms and not have to worry about tripping over piles of cloths, instruments and other misc teen junk? When you are selling your home it is like you are a retail store. You would not go to a store that has junk all over the floor or dirty dishes all over the kitchen would you? While talking about junk it also important that if you cannot get rid of most of it, at least be sure the doors can open into rooms and people can reach the light switches. Twice this week I could not get into a garage because there was so much junk it had fallen in front of the door so it would not open. Messy houses do not show well and will take longer to sell and they will not get as high of price than a clean, neat home. Cleaning up junk is by far the cheapest thing to do to raise its value. I know i have written about it before, but it is really important and my buyer's reaction to the messy houses we have seen this week were perfect examples of that.

What to Update to get you home ready to Sell

This post is a tough one. There is no single answer to the question of what to update in your home to increase the value and help it sell faster. Once you have done the easy, inexpensive stuff like cleaning up the yard, removing a lot of clutter and painting, the rest is a matter of money and how much you can spend. The biggest updates that help sell a house for more are the kitchens and bathrooms. If you are not a contractor, these projeccts are probably not something a do-it-yourselfer should try to tackle. You can spend $20-40,000 on a kitchen and $10,000 for each bathroom. Surveys have shown you only get about 90% return on your money for the updates. So those items may not be the best thing to try to accomplish just to get your house sold. I just did comparables for a seller in the Thrashers Corner area of Bothell and there was $100,000 difference in the selling price of nearly identical homes that had been completely updated vs ones that had not. Of course the updates cost $100,000 so it would be a wash for making money when you are trying to sell. Here is my list of updates i would do from the least expensive to the most. I cannot say exactly how much each of them would gain you in price, but even the cheapest will help your house sell faster. 1. Cleaning. You will have to clean up to move anyway, why not make your house look like a model home to start with? The only expense is your labor. Isn't that what kids are for? Get them to help keep the house clean for showings. 2. Yard work. Get those over grown shrubs and bushes trimmed back, the lawn mowed and the flower garden planted with fresh flowers and new bark. Might cost $100 and will make an inviting first impression. 3. Paint. Inside and out. You may love that bright pink room with pink shades, or the deep blue bedroom with the funny wallpaper around the edges, but most buyers will not. Keep it neutral. This one will cost several thousand dollars if you are not skilled at painting, but will definatly give you a good return on investment. 4. Update the light fixtures. No one likes those old 60's bedroom lights anymore. You can get nice ones for $15-20 and it is amazing how much better it makes a room look. 5. Sink fixtures for the bath and kitchen. This will set you back $3-400, but will help update the rooms without spending thousands. 6. Baseboards and window and door trim. This is another one that is best left to the professionals. An poor job on trim will be worse than not doing them at all. This is another multi-thousand dollar job, but it will give your home an updated look. When we replaced the windows in our home we redid all of the trim and it is unbelievable the difference it makes in the look of our house. It was about $3,000 and well worth it. 7. Floor coverings. Pick the worst areas to do first. If the kitchen or bathroom floors are nasty do them and leave the carpet. If there are dog stains and worn spots on the carpets then that is where you need to go first. Keep the colors neutral and put in a medium grade. This is a big item so allow $3-5,000. If your carpets are shot this will make the biggest difference in the value of your home. In the next segment i will continue this conversation.