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!

A detailed market analysis in today's real estate market is NECESSARY!

It's time.... You've contacted an agent to do a price analysis of your home, and they bring you a nice little "fluffy" CMA  that has a few homes that are on the market, a few that are under deposit, and a few more more that sold, all spiral bound, in full color, with the marketing plan built right into it.

All great, but is it enough information to price your home correctly? Probably not. First of all, those pre-packaged market analyses are completed at the touch of a few buttons on a computer program without a lot of thought process going into it. Furthermore, some of thesse programs only allow three to six comparables per listing status.  (active, pending, and sold)

Even if the agent hand picks the comparables for you, the program itself has its limitations. The whole presentation might look lovely, but the accuracy of pricing may be a whole other ball game- and then there's the standard marketing plan that will sell every house in town which is nicely included in your presentation with pretty graphics.  Even a novice knows that the marketing plan that is used to sell the house next door cannot be correct for your home, too.

A market analysis that shows just five or so listings in different status categories does not indicate a price for your home. Rather, it indicates some kind of average for the listings chosen.  I do not consider those a real pricing analysis, sorry.

Real CMA's are kind of boring, face it- unless it's my animated self going over all of the information for you!  If you happen to have an agent come over who gives you one of these fluffy CMA's, use it as a placemat. It's not worth anything else.

A market analysis should be so detailed  that even YOU don't have to guess as to what the price of your home should be. It will be inherently obvious- no guessing required. If you want to know the true price of your home in today's market, contact me. No fluff unless you want it, no hard sales tactics, just correct information. :)

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Why doesn't the listing agent show your home more often?

If your listing agent is not showing your home as often as you would like, it does not mean that your agent is not working hard for you. A lot of homeowners think it's only natural that their listing agent should be showing their home. And it is, to an extent- but it doesn't always happen, and try not to get too upset about it.

When you hire your agent, you expect your agent to market your home to the best of their ability, and to get as many buyers through the door as possible, so that one of those buyers ends up purchasing your home.

If we look at things realistically and statistically, most agents have a group of buyers that they are working with at the present time. Let's say, on average, that number is 25. Out of those 25 potentials, how many would be in the market for your home? Most agents work in a variety of price ranges, and towns, so the possibility of an existing buyer being interested in your home is somewhat slim.

Which brings me to the next point- If the agent is marketing your home, and marketing it well, wouldn't they get new buyers just from your listing, that would already have some interest? The answer to that is yes, but the amount all depends on how marketable your home is as well as the agent's marketing efforts. For example, if your agent made sure that your home had all the exposure it could possibly have, your home may not be as marketable  as you think it would be. The other point to make here, is that you must make sure that your agent presents your home in the best possible light to buyers. Even when all the conditions on marketability and presentation are met, the market may be very slow. It does not mean that your agent is not doing their job.

The last piece of the puzzle, and the most important one, is that your agent also markets your property to other Realtors. It is a well known statistic that the vast majority of agents RARELY sell their own listings. In addition, historically, less than 3% of all homes sell at public open houses.  

In our area of Fairfield County Connecticut, there are over 7,000 agents who are members of the Multiple Listing Service. If they all had 25 prospective buyers, wouldn't THAT be a great place for your agent to concentrate some of their efforts to secure a sale for you? What do you think the possibility is that just one of those 7,000 members has a buyer for your property. That would be,..... well 7,000 times greater than just your agent having a buyer, wouldn't it?

So try not to get too upset if your agent doesn't show your home as often as you would like. Some agents, myself included, show their own listings more frequently- and secure sales on their own listings, but that also is rare, and even for those of us who do manage to  find our own buyers for our listings, it's the exception, rather than the rule. Just remember, that your agent is  working on selling your property nonetheless.

Should a home seller even respond a verbal offer?

In our part of southwestern Connecticut, verbal offers are not considered bona-fide  offers, but that isn't necessarily true  in all parts of the state, or the country for that matter. Generally speaking, if a buyers agent presents a verbal offer to your agent for your home, and the buyer couldn't even take 15 minutes to write up an offer, I wouldn't hold too much stock in that offer. BUT THERE ARE EXCEPTIONS....

I do want to stress that if your agent receives an offer on your home, whether it's verbal or written, it must be presented to you. As for buyers reading this article, you should know that all offers are to be presented to the seller  up until the time of closing, and the fact that you have a fully executed contract on a property does not diminish the listing agent's responsibility to present those offers, unless the seller has specifically requested in writing that they do not wish to see any other bids.

When to respond to a verbal offer: If and when your agent calls you with a verbal offer on your home, it is always your decision as to whether you will respond. Sometimes, the buyer's offer has an odd contingency and the buyers agent might feel that if you won't even consider that offer, that it is not worth anyone's  time to put anything formal in writing.  It could be that the buyer is out of town and want to move forward and that buyer just can't get together with his/her agent to put an offer in writing. Let your agent be your guide- I can assure you that most listing agents will request that the offer be in writing before presenting anything to you- bu there are extenuating circumstances.


When NOT to respond to a verbal offer: Again, let your agent be your guide. I would tell you to consider  not responding to a  verbal lowball offer . That buyer has nothing to lose, not even 15 minutes worth of his time to write up an offer. If they are truly interested, the psychological benefits of making a bona-fide offer, along with a deposit check can only help to make that buyer come up to a a reasonable price. If the buyer has not even seen your home, and is purchasing your home for speculation purposes, let him put something in writing.

In some areas, verbal offers are not so frowned upon- ask your agent at the time you authorize your listing contract how verbal offers will be handled.

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Should you fix up your home to get it sold, or sell it as-is?

Now that it comes time to sell your home, you realize that there are some things that you should have done over the years, but chose to do others for one reason or another.  You may have focused on the interior, and now your home is missing curb appeal, or you may have focused on the exterior, and the inside needs updating. So what do you do?

The answer will depend greatly upon a number of variables including your available funds, estimated time frame of completion of any work to be performed and whether or not that work can be completed while the home is on the market, the likelyhood of the return on your investment, the current real estate market climate and the number of competing homes in your price range. Your agent should be able to guide you as to what would make the most sense in your situation.

If fixing up your home seems to be the best choice: Make a list of everything that needs attention, whether it is defective, broken or worn out. Don't be afraid to ask your agent for assistance on this. It is important that buyers do not spot problems or issues before you do. If a buyer sees a number of minor issues, they may think that there are more issues that have gone undetected, and pass on your house.

Here are a few improvements to make before selling your home:

Remove and replace dated light fixtures and make sure EVERY light in the home is working properly, and that there are no dim areas.
Remove excess furniture, clutter and personal effects. (see staging articles )
Paint walls that need it, and if any room color is dark, paint it a neutral color.
Make sure that your heating and cooling systems are operating properly.
Note any plumbing issues and repair (including leaky faucets)
Replace worn or outdated carpeting. (If there is hardwood underneath your carpet  in good condition, just remove the carpet)
Replace broken windows, rotted wood, and make sure all doors and locks are working properly.

Weigh the cost of individual proposed improvements against the home's estimated market value after the repairs or upgrades are completed. See my prior post on Return on Investment for Home Repairs.  Improvements should not be warranted if the cost of that improvement outweighs the return. Before you decide to change the carpet, or re-roof your home, look at this prior post regarding return on investment percentages. You may also want to view a few homes that your  home will be competing with- if most of these homes have amenities or upgrades that yours does not, take that into consideration as well. If the kitchens are upgraded, you may want to consider an improvement, just don't overdo it. If you will be replacing appliances, there is no need to go top-of-the-line. Mid-range is fine. Remember, those appliances would be brand new, and that's a bonus within itself.

Selling your home in as-is condition: If you are considering  selling  as-is route, just make sure you have carefully thought out the following: Is it that cumbersome, or costly to do any repairs whatsoever?
Have you priced it correctly for the repairs, improvement that it needs?

Fixer-uppers have some appeal to  a general market, it just depends on the scope of repairs, or improvements that are needed. Minor cosmetics won't scare a number of buyers away who are willing to do some work by themselves, however when the minor repairs or cosmetics get to be too much to handle, they, too will pass. Limiting your market if you don't absolutely have to is not the best idea.  Remember, if an upgrade or repair costs $3,000 for example, you can expect the buyer to want to reduce the price by about $4,500 , just for the inconvenience of doing the work themselves. It's not a rule of thumb, it just seems to be a pattern that I have seen. When you price your home, and your agent creates marketing materials for the home,  you may want to note that you have reduced the price accordingly to offset the work needed, and hopefully that will head off any lowball offers.

Truly, you need expert guidance in any circumstance, and the advice that I would give you  is going to be different than the advice that I may give your neighbor. You have twoo different houses, and two different sets of circumstances regarding yoru proposed sale. When you are ready to make a move, and need a professional, call me. I'll be right to the point, and guide you in the best direction possible.

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