Sellers: Steps to Take Before Reducing the Price of Your Home

If your home has been on the market for a few months and you have not had any bids, or worse yet, you have not had many showings, it's time to talk to your Realtor about it.  This is NOT always about the price, although that may be contrary to what most agents will tell you.

In Connecticut, and more specifically, Greater Fairfield County, our MLS system allows agents to input a lot of helpful information for buyers, except it is not always utilized. In today's market, every little but counts. PERIOD- Oh, and by the way, none of these items are "little" when it comes to selling your home.

There are at least ten things on your MLS listing alone that will affect your home's marketability. Make sure that these items are addressed  first BEFORE you reduce the asking price for your home.

It's a BIGGIE!  What does your MLS listing look like?

Unfortunately, you have to be diligent about making sure that your home is represented in its best light on the MLS. The information from your MLS listing is "fed" to Realtor.com,  Yahoo.com Real Estate, Trulia, Zillow, AOL  Real Estate, and scores of other highly visited real estate websites. Incidentally, Yahoo Real Estate has MORE visitors per month then Realtor.com, so it's not only about Realtor owned websites.

What should you look for on your listing?

1. Make sure that the information is correct and complete, and the description does not duplicate any of the fields that are already there. You only have a certain amount of space in that description. If it is redundant and has information that is already provided elsewhere on the listing, that is a GRAVE error on your Realtor's part, and you are losing precious buyers and dollars  because of it.

2. Check that the room measurements and room descriptions are included, too. Do you think that's a minor thing? It's not. Buyers want information, and certain buyers will not even bother giving your home a second thought, much less look at it if they don't have any idea that the living room (for example) is big enough to hold certain furniture that they have and love.  Does the living room have hardwood floors, or sliders to a deck? If it's not on your listing,  the buyers may assume that you have carpet or linoleum, or something else rather than hardwood.

Why would a Realtor omit that? Sheer unprofessionalism, laziness or both, in my opinion. Does your master bedroom have its own bath? The listing better read that it does.  If your bath has a whirlpool or steam shower, that should be there, too. These things may sound VERY basic to you, however I can tell you with clarity that whether your home is listed for $500,000 or Five Million, there are glaring marketing errors to the tune of about 86 percent. That's right. Eighty six percent.  For the listings that I see, I calculated the percentage of OBVIOUS MARKETING ERRORS  to be 86%. I cannot believe the number is that high, and the lowest error rate that I have seen was 79 percent.  There is a very good chance that your home is in the majority, SO LOOK AT YOUR LISTING!

3. Are the taxes correct? Is the mill rate correct?  Is the lot size correct?

4.Another BIGGIE: Is the square footage of your home correct? If your agent estimated the square footage, included the basement in the actual square footage or rounded the square footage up to an even number,  IT WILL HURT YOUR HOME'S MARKETABILITY.  Yes, I am yelling here. I see it done all the time. Let me tell you why it's a very bad idea to fool around with the square footage as recorded in the town's Assessor's records

5. If you  or your agent estimates the square footage, and the number is incorrect, you may actually be sued. There is case law that I am aware of, on this where a buyer demanded a refund on the purchase based upon what he THOUGHT he bought, which turns out is not what he bought at all. I do not remember the square footages in this judgement. I do remember that the seller had to refund  "x" amount of dollars, and that was calculated upon the sales price of the home  for the square footage as presented in the listing, and then adjusted downward based upon that number to the actual square footage of the home. The agent was sued for misrepresentation  as well.   YOU ARE LIABLE FOR YOUR MLS LISTING, TOO.

6.Want to include the finished area in your basement in the MLS Listing in the main square footage section?  Not a good idea. Here's why: Let's say your home is 3,020 square feet. Your finished basement area adds another 1260 square feet. Of course that should be mentioned in the listing, but not in the main field for square footage. Your home would appear to be 4,180 square feet, and it would blatantly obvious to a buyer had a minimum square footage requirement. Trust me, they are not buying your home, when you started out with "a lie" on the square footage.  Your home may also appear  that is too big for someone who would otherwise look at it, and maybe not even bother too much with a finished lower level.  All it takes is one obvious untruth on your listing, and everything else falls under scrutiny, and  concern. Don't do it.

7. Rounding up square footage of your home? I tell my buyers to be on the lookout for any home that's listed as having square footage with an even number.
For example- 2,500 square feet, 4,000 square feet, etc.That tells me that I cannot trust the rest of the information to be as accurate.  If the home is 2,476 square feet. Say so. Don't oversell it or misrepresent it.  Market the home for what it is. By the way, I have only encountered ONE house in 26+ years of being in the business that had an even number of square feet. With the owners permission I added one square foot to the actual number so it did not look like it was estimated or rounded up. We also disclosed that as well.

8. Misrepresenting the condition of a home: The surest way turn a buyer off is to have the listing say that it's in mint condition when it's not absolutely in mint condition. It can be in fairly good condition but it's not mint, so don't market it that way.  C'mon agents. You know better than that. When a house needs repair or cosmetics, you can soft sell it, but don't go the other way around and make it wonderful when it's not.  I'm sorry, but Sellers, you're guilty here too, if you have not seen your listing and okayed it.  You know whether or not your home is in mint condition.  The buyer that  thinks that your home is in perfect condition  when they get to your home is even more disappointed. Just remember how you felt when you were looking at homes and went to a house based upon its purported move-in or mint condition. What did you think? You didn't buy that house, did you? Did you wonderwhat standards that listing agent had if they truly felt that this particular home was in mint condition? You get the drift

9. Public Schools Information: Make sure your listing has the public school information for your home. Buyers and agents alike search upon that criteria. If you see BOE or PBOE in the elementary, middle or high school data fields on your listing,  that's more  laziness on your agents part. BOE is a lot easier for some agents to type than making a call to the superintendents office to find out which public schools children would attend if they live at your address. For the record, BOE stands for Board of Education, and PBOE stands for Per Board of Education.

10. Internet Remarks:  This may not be evident in the MLS printout sheet of your home. Where it will be seen is on the multiple listing aggregator sites like Realtor.com, Yahoo.com Real Estate, Trulia, Zillow, AOL  Real Estate and others.  If your agent did not specifically enter remarks in this portion of the listing, then your  listing will not have any descriptive remarks on any of these sites.

You shouldn't even have to check that your Realtor is doing things the proper way, so most sellers never even bother to do so. You would be surprised at the lack of a thorough job  coming from a recommended agent. And here's a good one- The agent that seems to have a lot of listings is not necessarily the best. All of those listings haven't sold and are still on the market. Think about it.

If you want the best representation with a better than average sales to list price ratio and shorter time on market. Call me. I'll get your home sold, and do it the right way

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Communication is Key when Selling a Tenant Occupied Property

For Landlords: Selling your home when a tenant is occupying the premises.

In the last several years, many homeowners who were unsuccessful in selling their home at their desired asking price, opted to rent their home.  This was a new arena for many.    Being a landlord is not for the weak at heart.  There is a good amount of work involved but in many instances it can be a profitable venture and also there can be some substantial tax advantages when the property is eventually sold.  The property can be depreciated, but be careful there are certain holding periods and one should always speak to their accountant to make sure the timing is correct to reap the tax advantages.

When the time comes that the property owner lists the home on the real estate market, there must be good communication between the Homeowner and the Tenant regarding the Tenant vacating the premises.  If the Buyer of the property is looking for an investment property, having a property with a rock solid rental history is key.  However, if the Buyer is purchasing the home as his or her’s primary residence, the property must be vacated before the closing.  This is when the situation gets tricky.  The Seller wants to maximize on the rental income and does not want the property vacated until the Buyer has his/her mortgage commitment but that usually occurs days before the actually closing.  The Seller/Landlord must give notice as required by the lease and if there is no lease than a minimum of 30 days.    The last thing anyone wants to get involved with is an eviction proceeding.    Communication is key between the Seller and the Tenant.

Attorney Felicia B. Watson

FeliciaWatson@sbcglobal.net

Is your home EVER going to sell? How long does it take?

If sellers only knew  what their agent WASN'T doing to sell their home, they would be appalled. Trust me, other agents can spot a lack of professionalism a mile away, and it translates right down to YOUR property, YOUR sales price, and YOUR Bottom line.

In  reviewing some listings in the three million dollar plus range for a client of mine, I ran across some rather elementary attempts at marketing, especially given the styling and features of the homes being presented.  That is certainly not to say that if your home's listing price is $50,000  that you shouldn't get good service, or great marketing. Of course you should!  The feeble attempts at marketing from so-called professionals are positively abominable, in my opinion. No wonder why so many homeowners get discouraged.

You as a homeowner, have the ability to change that.  Look at your marketing materials and your home's presentation as if you were a buyer. Does the short listing description make you want to know more about the house? Does it make you want to see that property? If  you don't see important marketable features of your home highlighted, or just see some fluffy description that really doesn't catch your eye, have your agent change it. OR CHANGE AGENTS. You lose money every day that your home is available for sale and mis-marketed, and the loss compounds over time, even if the market doesn't change.

You would think that maybe, just maybe... the listing agents would put as much information in the listing as they could. Everyone knows that we don't get paid unless the house gets sold.

Well,  think again. Misquoted square footage. misquoted taxes, impressive home features left completely out of the listing, not enough pictures, poorly presented photos, no room measurements, no room descriptions, Poorly worded and grammatically incorrect remarks. It goes on and on.

I can go on here, too. ( I know I am passionate about this- I really was taken aback after looking at these listings earlier.) Have you checked out your home on Realtor.com? Your agent can amend the description here, too. It doesn't take long, and it can make a world of difference. What about your agent's personal website? Is your home featured there? You would think this is Standard Operating Procedure, but guess what?  It may not be for that agent!  Do you happen to know what percentage of  agents haven't updated their personal site in the last six months?  That number is close to 60 percent!

If the agent is NOT taking care of their professional presence on the internet, how can they take care of you?

If you want your home to get the best marketing possible, by an experienced agent, it's time to contact me. It's time to get your home sold by an agent who cares how they market your property.

I am in the business of selling homes, and I'd like to be in business with you. Contact me today to get your home IN the Market, and I WILL get your home sold.

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Sellers - The Importance of Staging the Outside of your Home.

First impressions do count.  I am sure that you have heard that over 95% of  people form an impression of you within seven seconds of your initial meeting, and form a judgement of you within the first minute. This is predominantly true in day to day life, very much so in business, and especially on target in real estate.

As for real estate- When you drive down a street, and see a majority of homes that appear to be very well kept, it is a good indication that the area is thriving, a good investment, and considered a nice neighborhood. If you pass through another neighborhood where there isn't that same amount of care given to the home and its property, you may not get the same  "warm and fuzzies", and your reaction is probably right on target. As a matter of fact, that also translates to each house on the street within that neighborhood

Remember when you first looked at homes, and drove up to that house that you wanted to see so badly, only to pull up to the home and see an overgrown lawn?  The feeling already started, didn't it?- and the inside wasn't any better, was it?  Or remember that house that was just about perfect  on the outside? The inside was very clean, too.Maybe that's the one you bought!

It is IMPERATIVE that you make sure that your home's exterior matches OR BEATS what the interior has to offer. It's a first impression, and will make or break a sale.

An interesting point:  Sometimes banks request BPO's (Broker Price Opinions) of real estate agents. The seller, or mortgagee, has no inkling that the bank requests this, nor is the agent at liberty to ever discuss this with the owner. That means that we have to formulate an opinion of value without even going inside , and  base our estimate of value upon the exterior appearance of the home. We call these "Drive By BPO's". The reason I mention this is that the outside appearance almost always resembles the inside condition. It's not a stretch to think that if someone does not tend to the home's exterior, that the interior may not be well cared for, either. Likewise, when you see a home that is absolutely impeccable in every way outside, the inside is probably well maintained, too. Of course, there are exceptions to every rule, and this is a general statement, but it holds true the vast majority of the time.

OUTSIDE- the lawn is nice, neat, and well manicured = INSIDE - clean, well cared for and maintained, and neat.
OUTSIDE- Older landscaping, not necessarily overgrown = INSIDE- may NOT be updated.
OUTSIDE- Needs a new roof, new windows, or siding = INSIDE- Mechanicals and Interior are probably NOT updated.
OUTSIDE- Garbage strewn about, even if it's only a small bit = INSIDE - House is not clean.
OUTSIDE- Lawn and shrubbery are overgrown =INSIDE-  In need or cosmetics and/or structural repairs.

I know these assessments may sound somewhat harsh, especially if I have described your home's exterior, and the inside is an exception to what the general rule is. If you are planning on putting your home on the market, it's important! Pay attention to the outside. This is also a part of staging your home, and a very big part, I might add. No one may ever want to go inside if the outside is not inviting enough. See other articles on staging.

I am happy to guide you through the process, and give you staging tips and strategies. When you are ready to sell your home, call me or contact me by email and I will  come out to your home, give you specifics on what needs to be done, if anything, to get your house ready for sale. My goal is to help you make your home appeal to the most buyers, and get a sale in the shortest amount of time with the least amount of hassle to you. That's my job, I do it well. Call me  when the time is right for you, and you need the best!

Forbes.com Says That the Worst City to Rent in the Country is in CT!

If the worst city to rent a home in the entire country is right in your backyard, does that mean that you should make every effort to buy instead? ...What about if the worst TWO cities in the country  to rent a home are geographically connected to where you live?

When you get right down to it, the decision to rent vs. buy is a financial one, that comes with weighing in the pro's and con's of  both for your own financial situation and  the  economy. 

Just a few weeks ago, Forbes.com  published an article about the best and worst cities in the country for renters.  Marcus & Millichap, a real estate investment firm based in Encino, California, collaborated with Forbes on this piece, and rated the 44 biggest cities in the U.S. They based their  article on four criteria: First quarter average rent, and how much it changed year-over-year;  vacancy rates,  (higher vacancy rates mean lower rent prices), and the  cost of renting versus buying.

In short, New Haven, CT was the WORST city in the country for renters, with New York City coming in second. The fact that Fairfield County, Connecticut connects those regions should tell you something.  If you look at their findings, you would probably agree that our area, although not in their survey, is limited  for rental opportunities. Add the high inventory of homes for sale coupled with low interest rates, and at this point, it is very reasonable to surmise that it is cheaper to buy rather than rent in our area of  Southwestern Connecticut.

That being said, general geographical statements as to the real estate market may not be true in all cases- it is going to be somewhat different for everyone based upon their particular needs. I have found  an outstanding rent vs. buy  calculator,  courtesy of The New York Times which I would like to share with you.

Whether it's better for you to buy or rent, contact me, and  I would be honored to work with you. I work with Landlords and Tenants, as well as Sellers and Buyers.  You can be assured of the best representation and service- and that's my personal guarantee.

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