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Seller Tips Category

If you can’t sell, should you rent your house?

Should I Rent My House If I Can’t Sell It?

Posted: 07 Oct 2013 04:00 AM PDT

For rent real estate sign in front of house

There has been a lot written about how buying a home is less expensive than renting one in most parts of the country. Rents are skyrocketing and homes are still at great prices. These two situations are also causing some sellers to consider renting their home instead of selling it. After all, a homeowner can get great rental income now and perhaps wait until house values increase even further before selling.

This logic makes sense in some cases. We at KCM believe strongly that residential real estate is a great investment right now. However, if you have no desire to actually become an educated investor in this sector, you may be headed for more trouble than you were looking for.

Before renting your home, you should answer the following questions to make sure this is the right course of action for you and your family.

10 Questions to Ask BEFORE Renting Your Home

1.) How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).

2.) Because of the economy, many homeowners can no longer make their mortgage payment. What percent of tenants do you think can no longer afford to pay their rent?

3.) Have you interviewed a few experienced eviction attorneys in case a challenge does arise?

4.) Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?

5.) Will you allow pets? Cats? Dogs? How big a dog?

6.) How will you actually collect the rent? By mail? In person?

7.) Repairs are part of being a landlord. Who will take tenant calls when necessary repairs arise?

8.) Do you have a list of craftspeople readily available to handle these repairs?

9.) How often will you do a physical inspection of the property?

10.) Will you alert your current neighbors that you are renting the house?

Bottom Line

Again, renting out residential real estate historically is a great investment. However, it is not without its challenges. Make sure you have decided to rent the house because you want to be an investor, not because you are hoping to get a few extra dollars by postponing a sale.

We need your house to sell!

Top 5 mistakes sellers make when selling their home

Selling your home is a big undertaking, it can be an emotional experience and stressful.  There are sold housesome things that you can do as a seller to help get your home sold quickly and for the most money possible, and there are mistakes that we see over and over again as agents.  Hopefully this will help you to avoid typical mistakes that sellers make, simply because they are not in the business of selling homes.  Agents such as myself are in the business and we see every day the same behaviors that keep sellers away from their goals.

Avoid these 5 mistakes and you will make more money faster and with less stress.

1.  Don’t Overprice your home.  Step back and try to take the emotionalism out of pricing your home, look at the data carefully with your agent to price it competitively and then hold there.  It is not uncommon for sellers to get 98-100% of their asking price if priced correctly. Some sellers in this market are getting over list price.

2. Going on market before the home is completely ready.  Take care of all the repairs, painting, yard work, and staging.  Make sure you present your home to the marketplace with a splash. You get the most excitement within the first 2 weeks on market.  Don’t go on market until you are 100% ready!

3. Only considering price when you receive an offer.  Look at all terms, not just price.  If someone is offering to close in 30 days but 2000 less than you want, consider your carrying costs on the home.  Additional mortgage payments, utilities, taxes, insurance etc. may cost more than the difference in the offer price.

4. Taking the feedback personally, even though it may be hard, listen to what the market is saying with feedback from the buyers.  If there is a recurring theme that you can make a change pretty easily (paint colors etc.) then do it! The buyers are telling you what they want, respond to it positively.

5.  See the forest for the trees…during the inspection and other negotiations, keep hold of the goal and the big picture.  Don’t let something small get in the way of your goal to sell.  You may regret it later!

Call me today to help you get your home sold – 770-354-0243 or email me! I will be happy to come by and discuss what your home may sell for today!

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Don’t Overprice your home when selling! Even though it may be tempting….


Selling a House? Don’t Overprice ItPosted: 15 Jul 2013 04:00 AM PDT

 

HiRes (6)There is no doubt that the housing market is coming back nicely. What, if anything, could slow down the current momentum? We believe it may be sellers’ over exuberance when it comes to pricing. There is little doubt that house prices have appreciated over the last twelve months in most regions of the country. However, with both the inventory of homes for sale and interest rates increasing, we have to be careful to not over judge what the market can bare.

Trulia just reported that asking prices have jumped dramatically and the increase is accelerating:

  • Year-Over-Year prices jumped 10.7%
  • Quarter-Over-Quarter prices jumped 4.1% (16.4% annualized)
  • Month-Over-Month prices jumped 1.5% (18% annualized)

No expert is expecting home prices to shoot up 18% in the next twelve months. If anything, price appreciation may slow as rates and inventories increase. Investors will begin to slow their purchases and the first-time buyers expected to take their place will be working within a pre-set budget in many cases.

Buyers’ Purchasing Power

Let’s look at an example: A young couple is looking for a home and have predetermined that their budget will only allow them to spend $1,000 a month on a mortgage. At today’s mortgage rate of 4.5%, they could afford a $200,000 mortgage ($1,013 principal & interest). However, if rates jump to 5%, they would have to lower their mortgage amount to $190,000 in order to keep their monthly payment where they need it ($1,020). At 5.5%, the mortgage would need to be no more than $180,000 ($1,022).

The Impact on Prices

This decrease in buyers’ purchasing power will have an impact on home values going forward. We do not believe it will cause a decrease in prices. However, we do believe it will likely cause current rates of appreciation to slow.

If you are thinking about selling your home, don’t get carried away with current headlines about home price increases that have taken place over the last twelve months. Instead, call me today at 770-354-0243 and I will help explain where prices are headed over the next six months.

Top 5 reasons to sell your home now

Selling a House? 5 Reasons You Should Do It Now

by The KCM Crew

in For Sellers

five fingersMany are talking about why now is a great time to buy a home.  Today, we want to look at why it might also be an opportune time to sell your house. Here are the Top 5 Reasons we believe now may be a perfect time to put your house on the market.

1.) Demand Is High

Homes are selling at the fastest pace since November 2009 when the market spiked in response to the home buyer tax credit. The most recent Existing Home Sales Report by the National Association of Realtors (NAR) showed that monthly sales increased 9.7% over the same month last year. Total sales have been above year-ago levels for 22 consecutive months. There are buyers out there right now (buyer traffic is 31 percent stronger than a year ago) and they are serious about purchasing.

2.) Supply Is Beginning to Increase

Total housing inventory last month rose 11.9% to 2.16 million homes for sale. This represents a 5.2-month supply at the current sales pace, compared with 4.3 months in January. Many expect inventory to continue to rise as more sellers escape the shackles of negative equity. Selling now while demand is high and before supply increases may garner you your best price.

3.) New Construction Is Coming Back

Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block. As the market is recovering, more and more builders are jumping back in. These ‘shiny’ new homes will again become competition as they are an attractive alternative for many purchasers.

4.) Interest Rates Are Rising

According to Freddie Mac’s Primary Mortgage Market Survey, interest rates for a 30-year mortgage have shot up to 3.98% which represents a jump of more than ½ point since the beginning of the year. Even those trying to be the voice of reason on this issue are projecting higher rates. For example, Polyana da Costa, senior mortgage analyst at Bankrate.com said:

“Rates are unlikely to keep going up so quickly and should remain below 5%.”

Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

5.) It’s Time to Move On with Your Life

Look at the reason you are thinking about selling and decide whether it is worth waiting. Is the possibility of a few extra dollars more important than being with family; more important than your health; more important than having the freedom to go on with your life the way you think you should?

You already know the answers to the questions we just asked. You have the power to take back control of your situation by putting the house on the market today. The time may have come for you and your family to move on and start living the life you desire. That is what is truly important

Proper Preparation still required even in a Sellers Market!

Yes, we are officially in a sellers market, but does that mean you should go on market without staging and great marketing?  In order to house with moneymaximize the most money from your home, you still have to be the prettiest one out there at the best price!

Yes, there are homes are still sitting on market, and the reason they are sitting is the basic principle that is true in any market.

Condition and Price.   If you have not properly prepared your home to sell, and you over price it, then you still won’t win the buyer.

Buyers are definitely a bit more forgiving but they are still savvy and they understand if they are going to have to put work in a house and those that have sharp buyers agents know the comparables and the values

If you are thinking of selling, call me today at 770-354-0243, I will walk you through the home selling process and what you need to do to prepare your home for sale so that you get the most money in the fastest amount of time and  ultimately WIN buyers who are willing to PAY TOP DOLLAR  for a great house!

If you have been waiting to sell, now is the time!

Many people who wanted to sell in the last 4 to 5 years decided to stay put, the market was too soft and it was a market where the buyers iStock_000002936822XSmallwere calling most of the shots!

Well things have changed and they changed fast!! Just in the last 60 days the market has turned into a sellers market.  The inventory levels are the lowest they have been in over 10 years, interest rates are low and buyers want to buy now!

If you have wanted to sell  in the past, but have been on the sidelines, give me a call today at 770-354-0243 and I will be happy to provide you with information that can help you determine if now is the time for you!

 

Top 5 Reasons Why You Should List your House Today!

5 Reasons You Should List Your House TODAY!blue sky sold house

by The KCM Crew on January 28, 2013

Many homeowners are waiting until the Spring ‘buying season’ to list their homes for sale. Here are five reasons why that might not make sense this year:
1.) Demand Is High

Homes are selling at a pace not seen since 2007. The most recent Existing Home Sales Report by the National Association of Realtors (NAR) showed that annual sales in 2012 increased 9.2% over 2011. There are buyers out there right now and they are serious about purchasing.
2.) Supply Is Low

The monthly supply of houses for sale is at its lowest point (4.4 months) since May of 2005. The current month’s supply is down 21.6% from the same time last year. Historically, inventory increases dramatically in the spring. Selling now when demand is high and supply is low may garner you your best price.
3.) New Construction Is Coming Back

Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block. As the market is recovering, more and more builders are jumping back in. These ‘shiny’ new homes will again become competition as they are an attractive alternative to many purchasers.
4.) Interest Rates Are Projected to Inch Up

The Mortgage Bankers’ Association has projected mortgage interest rates will inch up approximately one full point in 2013. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.
5.) Timelines Will Be Shorter

The dramatic increase in transactions caused many challenges to the process of buying or selling a home in 2012. We waited for inspections, dealt with last minute appraisals and prayed that the bank didn’t ask for ‘just one more piece of paper’ before issuing a commitment on the mortgage. There are fewer transactions this time of year. That means that timetables on each component of the home buying process will be friendlier for those involved in transactions over the next 90 days.

These are five good reasons why you should consider listing your house today instead of waiting.

Call me today at 770-354-0243 to discuss getting you home on the market sooner rather than later!

 

I have buyers who need YOUR house!!

If you are thinking of selling this spring, call me now!  Inventory levels are too low and the choices are limited, we have buyers who are blue sky sold houseready to purchase and cannot find a home.

It’s best to get a jump on the market and list earlier than everyone else, you will have less competition and probably will sell faster if you are priced right and in good condition.

Call me today at 770-354-0243 or email me if you are ready to sell, I will be happy to discuss your local neighborhood  market and  may already have a buyer for you!

 

Top 5 reasons to have your home on the market during the holidays

Many people think that this may not be a good time to sell, but actually there are at least 5 good reasons to have your home on the market during this time of year.

1. Less competition, fewer homes for sale gives you less competition for the offer

2.  Buyers who are looking now generally are motivated and need a house

3. Companies often transfer buyers prior to January so that they can be up and working in their new office at the first of the year

4. Houses look and show better decorated for the holidays

5.  People want to move while the kids are out of school so not to disrupt their school schedule.

If you are thinking of selling, call me today at 770-354-0243 and I can give you a quick no pressure analysis of what your home might sell for.

Power of Pam, Personal Service =Positive Results!