11 Reasons Why Your Home Isn’t Selling

Your home is on the market and you really thought it would go into contract that first month, but it didn’t. Its not. No offers. Nada.

What’s up with that? Read on!

When you first put your house on the market, you might be hopeful for a quick sale—especially if you’ve put a lot of money into improving the house over the years and if the neighborhood is one that has historically attracted a lot of buyers. While you shouldn’t panic if the house doesn’t sell the moment you list it, you should begin to worry if the months start flying by without any real offers. If this is the case, here are 11 reasons why your house may not be selling.

1. You overvalued your property. If your house is overpriced, it’s simply not going to sell. Compare your property to similar properties that recently sold within your area to get a better idea of its true value. An experienced real estate agent can give you an accurate value of your home. Additionally, don’t make the mistake of tacking on the cost of any renovations you made. You can’t just assume that the cost of a renovation translates to added value.

2. Your listing is poor. If the listing of your home includes a poorly written description without any images, a lot of buyers are going to skip over it. Make sure you and your REALTOR® put an effort into creating a listing that attracts the attention of buyers. Make sure to add high quality photographs of both the interior and exterior of your home. Don’t forget to highlight unique features, as well.

3. You’re always present at showings. Let your agent handle your showings. Buyers don’t want to have the seller lurking over their shoulder during showings, especially during an open house. This puts unwanted pressure on the buyer, which will make them uncomfortable and likely chase them away.

4. You’re too attached. If you refuse to negotiate even a penny off your price, then there’s a good chance that you’ve become too attached to your home. If a part of you doesn’t want to sell it, or you think your house is the best house in the world, odds are you’re going to have a lot of difficulties coming to an agreement with a potential buyer.

5. You haven’t had your home professionally cleaned. A dirty house is going to leave a bad impression on buyers. Make sure you have a professional clean your carpeting and windows before you begin showing your house.

6. You haven’t staged your home. If you’ve already moved out, then don’t show an empty house. This makes it difficult for buyers to imagine living in it. Stage your house with furniture and decor to give buyers a better idea of how big every room is and how it can be used. You want the buyer to feel at home when they are taking the tour.

7. You kept up all of your personal decor. Buyers are going to feel uncomfortable touring your house if you keep all of your family portraits up. Take down your personal decor so that buyers can have an easier time imagining themselves living there.

8. Your home improvements are too personalized. You might think that the comic book mural you painted for your child’s room is absolutely incredible, but that doesn’t mean potential buyers will agree. If your home improvements are too personalized, it can scare off buyers who don’t want to pay for features they don’t want.

9. Your home is too cluttered. Even if your home is clean, clutter can still be an issue. For example, maybe you simply have too much furniture in one of your rooms. This can make the house feel smaller than it is.

10. Your home is in need of too many repairs. The more repairs that are needed, the less likely a buyer will want your house. Many buyers simply don’t want to deal with the cost or effort of doing repair work, even if it’s just a bunch of small repairs, such as tightening a handrail or replacing a broken tile.

11. You chose the wrong real estate agent. In our opinion, choosing the right real estate agent is simply the most important decision you make in selling your home. A good REALTOR® makes all the difference in selling your home within a reasonable time.

All these things can be fixed once you realize your mistake; however, the longer your property stays on the market, the less likely it will sell at listing price. One of the best ways to avoid making these common mistakes is by working with a professional real estate agent.

Source: RisMedia

Posted on June 16, 2017 at 11:05 am
Kappel Gateway Realty | Category: cleaning, curb appeal, maintenance, overpricing, real estate, selling, staging, Uncategorized, value | Tagged , , , , , , , , , , ,

Does It Really Matter What Your Neighbor’s Home Sold For?

Interesting food for thought. Depending on the dynamics of the other homes in the neighborhood, fair market values can vary.

Whether you’re buying or selling, remember that your neighbor’s sale price is just one piece of the puzzle. Whether you’re buying or selling, make sure you look beyond the data to get the big picture on home values.

After researching the sale prices of his neighbors recent home sales, Steve Rennie thought he knew exactly what his Kansas City, MO, house was worth. But when the Rennies decided to sell and started interviewing real estate professionals, they discovered they needed more and more relevant information. While the sale price of homes on your street can provide important insight into the price of a home you’re selling or buying, here are some of the other factors you should consider to make your best deal.

Unique or unusual home? Comparable sales may not exist

The Rennies quickly realized that recent sales near them wouldn’t be the perfect way to gauge their home’s value. We had interviewed several agents, and most came back with prices for homes that were not truly comparable to ours, because we had a unique older home in an area of newer ones, recalls Rennie. Eventually, the couple called real estate agent Dan Vick, vice president of RE/MAX Results in Kansas City, who offered a different perspective.

Since I didn’t have comps in their exact neighborhood, I went a half-mile away to find homes of similar age and style, says Vick. They’d said they wouldn’t list their home for one penny under $180,000, but based on my comps, I asked: Would you mind if I listed it for more? The house sold the first day it was on the market for $189,500. The Rennies were thrilled.

While comps give sellers a point of reference and an understanding of how strong the real estate market is, Vick suggests calling a professional familiar with your neighborhood to interpret comps properly and gauge what your home is worth. In newer subdivisions, especially if one or two builders have built the majority of the homes there, you can look at similar floor plans. But in older areas, that rule doesn’t apply, because you don’t have the same house four doors down the street.

Stick to the facts and expert advice when pricing a home

Even when you’ve studied comps and have noted relevant details about recent nearby home sales, it’s often easy for sellers to overlook important information when setting a price, says Michael Kelczewski, a real estate agent with Sotheby’s International Realty in Centerville, DE. I continuously encounter sellers who value their home above fair market price, he says. Cosmetically upgrading a kitchen or bathroom won’t usually generate a 100% ROI, so I’m tactful when explaining the reality of property valuations or asset depreciation.

Pricing your property appropriately, regardless of what your neighbor sold for, is key in today’s market, adds Matt Laricy, managing partner with Americorp Real Estate in Chicago, IL. A couple of years back, people would price a home high, get lowball offers, and be willing to negotiate, he says. Nowadays, with low inventory, many sellers are too aggressive: Their neighbor’s house sold in one day, so they think, I’ll overprice my place because I know I’m the only one on the block. But buyers are smart; they may not even look at it until the price comes down.

Bottom line? Don’t be greedy, Laricy says. If you price your home realistically, you’ll likely get more than one offer and net more money in the long run.

Understanding how agents set prices can help buyers score the perfect home

Buyers can benefit tremendously from checking what homes in their chosen neighborhood have sold for, says Laricy. In Chicago, we don’t do price per square foot, so knowing what a neighbors house sells for is huge, he says. If it sold really low, that’s good news for you as a buyer.

However, buyers sometimes overlook other crucial details in their quest to zero in on the best price, he adds. That can lead to a harder sale or lower profit in the future. In big markets like New York, Chicago, Miami, and LA, where people are coming and going all the time, you’re buying an investment, he explains. Buyers usually don’t think about value: why certain buildings trade at different rates now, which ones will trade higher than others in the future, and which neighborhoods are worth more. These are things you need an expert eye for.

He notes that younger buyers tend to neglect that all-important real estate factor: location. They chase kitchens and bathrooms, he says. They’ll buy in a less desirable location to get a nicer kitchen. You can always change a kitchen, but you can’t pick up a property and move it.

Yet even as buyers and their agents leverage comps to make a good buy, sometimes the heart wants what it wants, says Vick. I think you can get too caught up in the comparable data. If your buyers have looked at 15 homes, and this is the one they’ve fallen in love with, it really doesn’t matter what the comps are; you’d better go after it with a strong offer, he suggests. A note of caution to buyers: be careful not to overestimate a home’s appraisal value, since an offer that’s much higher than appraisal value could put your purchase at risk.

Buyers should bring their best offers from the start!

Especially in red-hot real estate markets, Laricy advises buyers to bid smart the first time or risk losing out to another buyer. Usually, buyers who lowball are the ones who end up missing out on two or three properties before actually getting something, says Laricy. Be realistic by putting in a strong offer upfront.

First-time homebuyer Corinne Hangacsi followed that advice before purchasing her two-bedroom townhouse in Wilmington, DE, this spring. We did our research through Trulia. Our real estate agent definitely clued us in to what was happening in the area, but we also looked at other comparable properties ourselves, she says. That in-person research helped Hangacsi feel comfortable making a strong initial offer. My biggest piece of advice for first-time homebuyers is to be patient and do your homework. Go with your gut; when you find the right place, you’ll know.

Source:  Trulia Blog

Posted on May 30, 2017 at 6:58 pm
Kappel Gateway Realty | Category: appraisal, buying, first time buyers, Homeowners, market trends, neighborhood, neighbors, Offers, real estate, research, Uncategorized, value | Tagged , , , , , , , , , , , , , , , , ,

5 Types of Additions and How They Add Value

Want to add value as well as space to your home? For the skinny on remodeling…Here’s how!

A person’s home is their castle, but sometimes that castle isn’t big enough to accommodate all its occupants. Maybe you’ve got a baby on the way or an older parent is moving in with you. Maybe you need a workshop to keep up with your hobbies. Whatever the reason, it’s normal to outgrow your space. When it happens, you’ve got two choices—move to a larger home or build an addition to your current home.

What types of additions are there and how do they add value to your home?

Bump It Out
If you’re not up to adding a whole new room or floor to your home, a bump-out could be a good option to add extra square footage where you need it most. If you’ve got a tiny kitchen, a bump-out can add 40 or 50 more square feet of space to make it easier to cook your meals, store your food or add a cozy little breakfast nook.

The cost for these add-ons vary dramatically depending on the location of the bump out and its size. They can run anywhere from $5,000 for a small addition to $30,000 or more for a large, ground level bump-out that requires its own poured foundation.

In terms of cost per square foot, these additions are more expensive than larger builds, but, in the grand scheme of things, they end up costing less because you don’t usually need a ton of extra contractors or permits to add a bump out to your home.

Full Additions
Full additions are the most common. These rooms add space and square footage to a home. You can add anything from a new bedroom to a new den, dining room or living room—the possibilities are only restricted by your budget and the size of your lot.

Full additions are often the most expensive and complicated to add, requiring lots of time and money to complete. A full addition can cost more than $50,000, and the price only goes up as the build gets more complicated.

These additions can be very time consuming, as they require you to hire various contractors to handle HVAC, electricity and plumbing, depending on the type of room being added. You will likely have to apply for permits through your city or county before construction can begin.

These additions take quite a while. If you’ll be staying elsewhere during the build, consider utilizing the overnight hours for construction—the work is more efficient and is often safer than daytime construction. It’s cooler, which can be essential if your home is located in a hot state.

You can save time if you’re under a deadline or are looking for a way to increase productivity and decrease project length, but don’t consider nighttime construction if you have neighbors close by—no matter what time of day you’re building, it’s still noisy!

In addition to adding more space to your home, these new builds add to the resale value of your home. While you may not recoup the entire cost of the project, adding a new garage can add around $40,000 to the resale value of your home depending on your region.

Remodels
Remodeling parts of your home gives your castle a fresh shine without knocking down too many walls. The trick to a good remodel is to have a solid idea of the finished project in mind before you start shopping for contractors. Pick one room and focus on that single room before you jump to another project—nothing looks worse than a house full of half-finished remodeling projects.

The type of remodel you’re planning will determine the price and time needed to complete it. Installing new lighting in the bathroom might cost you a few hundred dollars while remodeling your floor could cost upwards of $15,000.

Most interior remodels don’t require permitting unless you’re knocking down walls, though you should check with your local permit office before you start any remodels. You may need to employ the services of a professional electrician or plumber if you need to run wires or pipes into new areas.

You can save a lot of money on interior remodels by doing some of the work yourself—just make sure you know what you’re doing and don’t tackle any projects you’re not comfortable completing on your own.

Sunrooms
Sunrooms are often unheated rooms primarily made up of windows and designed to let you enjoy the weather without having to be out in it. It can be a great place to keep your outdoor plants safe during extreme weather conditions. They are simple to install because they do not require any additional heating or cooling routing, though you might need an electrician to run wires to power any lights or ceiling fans you choose to install. An unheated sunroom can cost around $15,000, though the price goes up depending on the materials you use. Wood framed sunrooms are less expensive than aluminum ones—those can run upwards of $22,000.

A four-season room is similar to a sunroom but is hooked into the home’s heating and cooling systems. This requires an additional contractor to set up the room’s HVAC. Collectively, these rooms tend to run around $20,000, making them slightly cheaper than a high-end sunroom.

Room Conversions
Do you have an extra garage or attic that’s just being used for storage or taking up valuable square footage? Consider converting the room into something more useful like a bedroom, workshop or craft room. Room conversions can make that extra square footage work for you, as long as you know what you’re doing or employ the skills of a contractor.

Depending on the type of conversion you’re planning, expect to pay anywhere from $25,000 to $40,000. Poorly done conversions can end up costing you more money, and lowering the value of your home, so make sure everything is done properly!

Additions and modifications to your home add space, functionality and resale value in one fell swoop. Employ professional contractors to make sure all the new work is up to code. Otherwise, it might end up costing you more money than you put into it.
Source: RisMedia

Posted on May 16, 2017 at 3:14 pm
Kappel Gateway Realty | Category: construction, Homeowners, maintenance, projects, real estate, remodeling, Uncategorized, value | Tagged , , , , , , , , ,