January 16, 1998

Inman News Features

Everyone knows that selling your home can be very stressful and tiring. But does it have to be? Maybe these tips on open houses and accepting offers can ease the dreaded home sale process.

Not everybody wants to meet you

Sellers who can't leave during a showing should make themselves scarce. Sit in the garden or hide out in your home office. Greet the buyers courteously, then disappear. Under no circumstances should you follow the buyers around your home, hovering while they look.

Closed for the holidays

Making your home available to prospective buyers is imperative, but there may be times when your home can't be available for showings at all. Most buyers, for example, will understand your need for privacy during the holidays.

Playing the waiting game

If you do elect to wait a period of time before entertaining offers, make sure that your agent informs other agents that this is the plan.

It's best to make your plan known when the property is first exposed to the agents -- at the broker's open house. This allows agents to tell their buyers, before they write an offer, how offers will be handled. It minimizes the risk of buyers withdrawing offers because they're offended.

Contingency offers not all bad

A non-contingent offer is preferable to one that's dependent on the sale of another property. But, if your home isn't selling, a contingent sale offer is worth considering. Particularly if the buyers' home is more sellable than yours.

1998 Inman News Features. All Rights Reserved.

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Fixing up that old bathroom can be easier than you think.  A little wallpaper, a new faucet, or a piece or two of the right furniture can make any bathroom look new again.  Simple additions like full foliage plants or a beautiful orchid will add real warmth and beauty to your bath.  They are also inexpensive and plants will thrive in the moist, warm atmosphere of a bathroom.

A small free-standing mirror or lamp can offer an attractive and useful addition.  Try using brass-plated faucet's instead of chrome; brass adds a classic and radiant look to any bath.

Open storage shelving or an etagere can double as a linen closet where you can not only store your paper goods, but display your towels and pretty bath salts and bath bubbles.  Organize clutter by using attractive pegs for hanging up towels. Add a softly upholstered chair and give your bath a touch of comfort and elegance.

If your bathroom is small, wainscoting and the mixing of color, patterns and textures make a small space appear larger.  Solid tone floor covering with an addition of an inexpensive area rug will also add space.  Wooden shutters are a great solution for privacy, yet they let in the incandescent light.

Whether your bath be small or large, by adding the accessories you love, you can create a space that is your own and is both comfortable and beautiful.

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Lowering counter tops, remodeling a bath or widening hallways for a wheelchair can be very expensive.  Adding an air filtration system if you are an allergy sufferer or a whirl-pool to ease your arthritis pain does not come cheap.

The good news is that these additions may be tax deductible.

As with all un-reimbursed medical expenses, you start deducting the cost of home modifications after they exceed 7.5% of your adjusted gross income.  For example, if your AGI is $20,000, you must spend $1,500 on medical expenses before you can deduct the amount in excess of the $1,500.  The IRS won't allow you to prepay for work unless you have a contractual obligation to do so.  So, if you begin a project in December, and finish in January, arrange to pay for the whole job in January.  Expenses for operating and maintaining your modifications are also deductible.

There are many things you can do to ensure the largest deduction possible, so make sure you keep good records, both medical and contractual and hire a reputable CPA when preparing your tax returns.

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New construction vs. resale.

New Homes May Be Emotionally Appealing, But Older Homes Can Offer A Charm And Character All Their Own.

If you're planning a move in the future, you may be faced with the decision of whether to buy a brand new or resale home.  Before you decide, weigh the pros and cons carefully.  New homes are more emotionally appealing, especially when you tour the fully upgraded and custom decorated models.  Keep in mind that the standard version will look quite different for the gorgeously appointed model.  New home purchasers usually underestimate what they will spend in upgrades and landscaping.

New homes do tend to be larger and may offer many amenities, such as security gates, clubhouses, golf, community pools and tennis.  There will be an association fee attached to these features.  New tracts may also have a higher tax rate for the building of schools and roads.

Resale or older properties will usually have bigger yards and mature landscaping along with finished hardscape.  They may be located closer to the center of town and other convenient activities.  An older community can also offer a charm and character all it's own, one that is impossible to duplicate in a new tract.  Resale homes can also offer outstanding value for your money, especially if you are in a high quality neighborhood.

Whether to buy new or resale, is a decision you can make after you review the information of the inventory currently available.

Call First Team today to order your CompumatchTM home search package.  We will deliver the information you need to know to help you make the decision to purchase, new or resale and to find the home of your dreams.

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Why isn't my home selling?

When Five reasons to consider      June 11, 1998
Robert Bruss
Tribune Media Services

Whenever I visit Minneapolis, as I do every few months, I drop in at Sunday open houses when I have the time. In April, I inspected a home near beautiful Lake Harriet. I was the only visitor at that time so the realty agent was anxious to talk, even though I told her I wasn’t a serious prospect.

About six weeks later, I was again in Minneapolis and was surprised to still see a "for sale" sign on that house. I phoned the listing agent to inquire why, in her opinion, the house hadn’t sold during this year’s extremely busy spring home sale market.

She told me this is her only listing that hasn’t sold, and she can’t figure out why it’s still available even after the seller reduced the asking price below comparable nearby houses. Since then, I’ve been trying to figure out why that desirable home hasn’t sold:

1. Overpricing. Ask any Realtor the most frequent reason homes don’t sell. They will agree it’s overpricing. Having bought and sold many houses during more than 30 years as an investor, I fully agree.

Many sellers test the market by setting their asking price above what their listing agent advises, based on sales prices of comparable nearby homes. Unfortunately, overpricing usually discourages realty agents and their buyers from even looking at the house or making a purchase offer. An overpriced house usually indicates a nonserious seller who is testing the market and will sell only if a foolish buyer offers to pay close to the inflated asking price.

To avoid overpricing, sellers should interview at least three successful local realty agents before listing the home.  Each agent will prepare a written comparative market analysis (CMA). This form shows recent sales prices of comparable nearby homes, asking prices of competitive neighborhood listings and asking prices of recently expired listings. The seller will also receive market value opinions on the home from each of the agents interviewed.

In today’s strong home sale market in most communities, a correctly priced listing should result in home buyers and their realty agents flocking to inspect it. Of course, the asking price and sales terms should take into consideration any drawbacks of the home that the seller can’t or won’t correct.

 2. Condition of the home. The home's condition is the second most important reason a residence doesn’t sell.  Since most home buyers want a "red ribbon deal" home in near-perfect condition, it pays to fix up a property before selling rather than discounting the price to compensate for repairs needed.

Painting inside and outside is the most profitable improvement a home seller can make. Other inexpensive improvements include new light fixtures, new carpets and fresh landscaping. Avoid major kitchen and bathroom remodeling, which rarely returns its cost in increased sales price.

Since there are few buyers looking for fixer-upper houses (except bargain hunters like me), they usually demand price reductions to compensate for the work they will encounter. Most prospective buyers won’t even look at a fixer-upper house, even if it is bargain priced, because they can’t imagine how nice it could become.

3. Undesirable location. Another reason homes don’t sell is an undesirable location. In addition to obvious detriments such as noisy traffic, a high crime rate, poorly maintained homes, nearby unattractive commercial buildings and lack of parks, poor schools are a major location factor. Families with children avoid areas with poorly ranked public schools, no matter how attractive a home might be, but top-quality schools help sell homes and keep home values rising.

4. The listing agent. Many home sellers don’t realize that their home hasn't sold because other local realty agents don’t like their listing agent. When interviewing at least three agents before listing, ask them what they think of the other agents being interviewed.

Professional jealousy, especially among successful realty agents, enters into agent evaluations, but agents who are known as uncooperative, difficult, rude, inflexible and arrogant won’t get many showings of their listings.  Cooperative, friendly, enthusiastic and flexible listing agents are an advantage for home sellers.

5. Marketing plans. Lazy listing agents merely obtain the seller’s listing, put it into the local multiple listing service (MLS) and sit back to wait for a buyer’s agent to sell the home. In today's competitive market, that’s not enough to sell most homes. Successful home sales require a specific marketing plan prepared by the listing agent before the home is listed.

Depending on the circumstances, in addition to the MLS, the best agents put their listings on the Internet to attract out-of-town buyers, arrange tours for local realty agents, advertise each listing at least weekly in local newspapers, hold weekend open houses, distribute color brochures on their listings, advertise in local real estate magazines and network with agents who represent buyers to talk up referrals. Having worked with many realty agents, I find networking with other agents often gets the best results.

Conclusion. Even in an excellent local market, there are five major reasons some homes don’t sell. Virtually nothing can overcome an overpriced listing, except reducing the price to market value based on comparable nearby recent home sales of comparable homes. An undesirable location without a compensating factor (such as a bargain price or attractive terms); poor condition of the residence; a listing agent who repels other agents, their buyers and purchase offers; and a poor marketing plan are other reasons some homes don’t sell.

For more information on Bob Bruss Publications, visit his Real Estate Center.

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