Monthly Archives: April 2016

Why Your Home Didn’t Sell

By Uncategorized

For Sale home

 

Is your house a listing loser? Have you been on and off the market for years? There are many factors that influence whether a house sells or not. While most people will point directly to price, that may not be the only reason why a home sits on the multiple listing service without showings or offers and ends up on the expired list.

 

 

Here are just a few of the reasons why homes don’t sell:

1. Price

The most common reason and usually the biggest factor is price.  Often a home is priced too high because sellers have unrealistic ideas about what their home is worth. Other sellers insist on basing the price of their home on their own personal financial situation and not the market.

Even if a seller is willing to adjust the price of a home after listing it too high, it is the original asking price that matters. Pricing a home competitively will ultimately yield a higher sale price.

2. Location, location, location

It is true location matters. Even the nicest house cannot always overcome a bad location. Homes that are on busy roads, close to high tension wires, power plants, waste-treatment facilities or other objectionable locations will struggle to sell. The only way properties in undesirable locations sell is when the seller understands that the asking price is significantly lower than similar homes in prime locations.

3. Having the nicest home in the neighborhood

It may feel good to have the largest or nicest home in the neighborhood but buyers won’t appreciate that. Buyers are not only paying for the home but also what is around it. If your home offers much more than other homes in your neighborhood you will have a tough sale.

4. The decor

A home should appeal to almost everyone. So if your home has loud wallpaper, brightly colored walls, or an outdated kitchen it will be a turn-off. Most buyers won’t be able to look beyond the 1970s kitchen and see the good qualities a home has to offer.

5. A dysfunctional floor plan

The addition you added on may be your pride and joy but when the buyer looks at it they see it as a barrier to a sale. Many homeowners add additions or change the floor plan of their home to suit them. They were not thinking that it might not be okay for a future buyer to walk though a bedroom to get to the family room addition. This sometimes applies to older homes as well, smaller rooms and lack of storage does not top a buyer’s wish lists.

6. Too many repairs

If the home needs a lot of repairs, the buyer sees a money pit. Today’s buyer is much more reluctant to take on a lot of renovations.

7. Bad Marketing

This can be the agent’s fault as much as the seller’s fault. Are there agents who could do a better job marketing a home? Of course there is. Often times, the agent is limited by the seller’s willingness to help. Agents that are forced to show photos of messy, outdated homes on MLS are not starting off on the best foot. There is only a small percentage of buyers who are able to see past the mess and cosmetic issues.

8. Unavailability

Sellers sometimes do not make their home available for showings and this can hurt the sale of the home. Buyers have tight schedules and often want to view homes at inconvenient times. Sellers must try to accommodate as many showings as possible. You never know who the buyer will be or when they will want to look at the home.

Buying New Construction Home

By Buyers

Apart from asking do I need agent for buying a new home, often times I hear what’s different about buying new construction. Some even go further and say we are thinking of buying new to avoid all the hassle of a older home. Buying new or old the buying process is the same. Instead of buying it from people who lived there and called it home, you’re may be buying from the person/craftsman who built it or the company /developer who builds the community.  What can you expect? Here are some of the most important things to consider when buying new construction.

Realtor to Represent you the “BUYER” – Be sure it’s someone who has experience in new construction and isn’t affiliated with the builder. Model homes are typically staffed by a real estate agent who has a relationship with the builder.  It’s important for you to have an agent to represent your best interests, from advising you on how to structure your offer to be most appealing to the builder for making choices that can affect your home’s resale value.  Some developments have site registration policies that require your agent to accompany you on one of your first few visits.

Negotiation – Builders do not like to drop prices.  They usually set a base price with allowances and upgrades are at additional charge. Builders are often reluctant to set a precedent for negotiating prices since future buyers in the development may expect similar discounts.  Your agent  can research the builder’s negotiating style on prior sales in the community thus finding an effective way to approach the offer.

In Writing – Don’t sign anything until everything has been negotiated, agreed upon and written into the contract.  If you’re considering purchasing a home that is not yet complete, it’s very important to spell out how the home will be finished, what will happen if construction is not completed on time and the deadlines for decisions that will occur through the process.  Verbal conversations are not binding, so everything important must be put in writing and signed by all parties.

Construction  – Buyers often get to see the finished model home when they approach a builder.  Model home reflects a mix of standard materials and fixtures, as well as upgrades.  Keep in mind that costs can change. The price quoted at the start may not be the same when you decide to move forward.

Research the builder  – To see the quality of work by the builder visit other developments and talk to homeowners if possible. Online reviews and testimonials are a great resource.

Guarantee – When you sign Purchase and Sale, you’re often buying a lot with a model home to see as a sample. What guarantees do you have the home will be ready on time? Your purchase agreement documents should specify a completion date. However, many builders add provisions that make the completion date dependent on permit approvals from the municipality or availability of building materials from suppliers. There can also be additional charges if you’re unable to close on time if your lender isn’t ready.

Get Advice – New homes have problems too. Hire an inspector to make sure everything is safe and up to code. Even though most municipalities require new homes to pass permit inspections, an independent verification with a qualified inspector is money well spent. In many cases, the builder will allow buyers to conduct an independent inspection and agree to repair code compliance issues but do not include a provision that would allow the buyer to walk away and retain their deposit if they are not satisfied with the result of the inspection.

What’s covered – Many new homes come with a warranty from the builder, but not all warranties are created equal. Know what is and isn’t covered and for how long. Many builders use a third-party warranty company. In some cases, the manufacturer of certain products, like windows, may have a separate warranty or guarantee and the builder might refer all issues with those components to the manufacturer instead of handling any issues directly. The builder should be able to provide details on which part of the home is covered by which policy.

Looking Beyond – Always check out the neighborhood and see what is planned for the surrounding area.  Most builders put the responsibility on the buyer to be aware of neighborhood or community dynamics.  Many new communities now have homeowners associations.

Financing – This is what most buyers do, they automatically use the builder’s lender.  They are either encouraged and lured into this.  Buyers need to shop around for the loan that is best for them and not for the builders. Some builders require that you get pre-approved with the builder’s preferred lender. By the time you are ready to make an offer, you probably have already spoken to a lender of your own. It can come as a surprise when the builder requires you to also get pre-approved with their lender.

Your agent can help you find out if there are any special offers, promotions or contractual differences if you agree to use the builder’s preferred lender.

For more guidance on buying  a new home, contact me – 508 210 2121.  Available Always.

 

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