Seller Pricing For A Slower Market

An unexpected byproduct of the pandemic has been a booming housing market. As Covid-19 hit the country, the housing supply was already low, and the lockdown depressed the volume even more. As more homebuyers began looking for new homes, fueled by the ability to work-from-home and low interest rates, sellers have been experiencing a strong seller’s market.

As we end 2021, however, signs may start to point to a market slowdown. Interest rates are starting to rise, and the higher home prices have discouraged potential buyers from purchasing.

So, what does this mean for a seller this fall and winter? Amidst concern over the slowing market, sellers already in the market or considering listing their home should plan for a potential slowdown.

No one likes to leave money on the table, but it’s more important than ever to have a real conversation about list price with a professional real estate agent. Whereas just a few months ago, a new home would sell the first weekend for an over-asking price, new listings should now consider that it could take longer. Listing the property slightly below what might have been appropriate last spring, could help generate quick interest and result in a contract.

Pricing strategy is the single most important aspect of listing a home for sale. Price dictates how quickly a home attracts attention and offers. If the market is showing signs of slowing, savvy buyers will wait. Sellers need to consider their listing price carefully to avoid price reductions later for a home that is sitting on the market.

What Stays With The Home?

More than one seller has been surprised to find that their favorite chandelier is not theirs to take when they move. First-time home sellers might be especially confused when confronted with an exclusion form presented by their agent, but understanding what is, and is not included in the sale by statute is important to avoid disappointment on both sides.

The first rule of thumb is to consider if the item is nailed down, bolted, mounted, or planted. This covers a wide range of items both inside and outside the home. This might seem simple enough, but the debate about what constitutes a “fixture” has caused many post-sales lawsuits. Fixtures will stay with the home unless specifically excluded. This includes light fixtures, shelves, cabinets, built-in shelves, and more.

Consider the mount for the big-screen TV. It might seem logical to assume the mount would go with the TV when the sellers leave, but technically it’s likely considered a fixture as it’s bolted to the wall. What about a window-mounted air conditioner? If it’s sitting in the window, it’s typically personal property, if there is a hole in the wall to accommodate it, then it’s a likely fixture.

Outdoor items are subject to the same rules. Anything planted in the yard goes with the home, as does furniture or other items bolted to the ground. In that scenario, an arbor or patio cover bolted to a concrete slab would stay. Contrary to everything just outlined, however, curtains typically go with the home.

Clearly, it can be confusing.

If you are ready to buy or sell a home, make sure and discuss with your agent what you want to add or exclude to the sale. This is the best way to avoid disappointment at best or a courtroom at worst.

Home Improvements During A Labor Shortage

Tight labor markets are affecting industries across the country. Skilled and unskilled jobs remain unfilled as employers struggle to find prospective employees. For anyone ready to hire a contractor or handyman to perform home improvement projects, this shortage is causing frustration. As more people embrace the “staycation” and seek ways to upgrade their homes, many are finding few tradesmen to even come to provide estimates, much less schedule the work.

If you are trying to find good people to help with home improvement projects, there are still a few ways to achieve your goals. Here are a few tips to help you find a professional to help with your project.

Social Media – One great way to find reputable laborers is to ask for help from local social media groups. Apps like Facebook and Next Door have local groups where you can ask for help. Make sure to mention where you got the referral; the tradesmen will want to live up to the referral and are more likely to provide good, timely service.

Big Box Stores – Home improvement stores like Lowes and Home Depot offer a wide variety of in-home services. They also have referral services for projects outside their scope and these contractors keep the stores happy by providing good service to homeowners.

Online Service – There are sites like Angie’s List and Home Advisor where professionals pay for leads. Because they have paid for the contact, they tend to be more likely to follow through on the project.The labor shortage is affecting all aspects of life right now. If you have a home improvement or upgrade project, there is no reason to put off the work. Try these tips for finding qualified and vetted help.

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Can’t Sell Your Home In A Seller’s Market?

It’s no secret that most of the country is experiencing a strong seller’s market. With more homebuyers than inventory, most sellers have been delighted to sell quickly and often with multiple offers. Yet, some homes are still sitting on the market and these sellers may be wondering why.

Here are 7 reasons why your home listing is not selling:

1. Over confidence–While many homes are being snapped up on day one, this does not mean you can avoid the basics of good marketing, professional photos, and open houses.
2. Overpriced–In a seller’s market, home prices do advance, but a dramatically overpriced home will still sit unnoticed.
3. Appearance–With low inventory, homebuyers will compromise on some issues, but properties in need of major TLC or extensive deferred maintenance will not hold mass appeal.
4. Title Problems–Title issues are more common than you think. Old judgments or messy probate can take time to resolve and in a fast-paced market, buyers will often just move on.
5. Stinky–Smelly homes simply do not sell.Fortunately, there are professional options that can eliminate most odors.
6. Lazy Agent–The hard truth is that in a seller’s market, some agents just get lazy, assuming the home will sell without much effort. Your agent should still be doing all the right things – open houses, listing pictures, follow-up, and personal showings.

A seller’s market is exciting for homeowners ready to move. If your listing is just sitting without much activity, it is time to take a hard look at what you’re doing wrong and make changes.

Before Moving, Think About Future Needs

We are spending more time at home than ever before. This impacts how we view and use our homes. If your home no longer fits your needs in this new environment, you may be considering a right-size move. The open floorplans and great room layouts that have been so popular over the past few years may not allow for the various workspaces your family needs now. Separate and private areas for work and school needs may require more rooms or nooks, causing you to wonder if a larger home makes sense.

The fact is, before you buy a larger home, consider your long-term needs. Will the kids be returning to the classroom? Will you need extra rooms in the future? Most people need to stay in a home for 5-7 years to recoup the cost of moving, planning for this time frame is an important factor in considering a move.

Another consideration is the real estate market itself. Most of the country is experiencing a strong sellers’ market. Homes are selling for over the asking price. Not only can this make the move difficult to achieve, but the potential drop in future prices can saddle you with a home for longer than your intended timeframe.

Before deciding to move, consider the impact today’s move could have on your future. It’s advised to always plan to stay in a home for at least 7 years and if your potential new home doesn’t fit into that model, it may make more sense to remodel/redesign your current home.

Outdoor Design Trends

Summer is here and you’re spending more time outdoors. For most of us, this still means primarily in our own backyards. Personal outdoor space has never been more popular and if yours could use a little sprucing up, here are the hottest trends for 2021.

• Outdoor Kitchens – This trend is going nowhere. Ever since the first built-in BBQ showed up, homeowners have loved cooking outdoors. Choose from a simple pizza oven to a full chef’s set-up with multiple ovens, refrigerators, cooking spaces, and bar.

• Edible Gardens – While home gardeners have enjoyed seasonal tomatoes and herb pots for decades, the rise of sustainability trends have increased the attention on home-grown, organic fruits and vegetables. Any small space can be transformed to grow your favorites.

• Privacy Structures – Creating some private outdoor space is relatively easy. Simple strategies, such as a large, well-placed umbrella or planter containing tall grasses, can carve out some private outdoor space. Another trend is using larger furniture, such as covered daybeds or gazebos have made a strong return to the pages of design magazines.

• Front Yards – With the lockdowns and restrictions of the past year, front yards have made a comeback. As people have enjoyed the ability to socialize with neighbors and friends as they pass by, not only have front porches become more popular but adding a patio or sitting area in the front yard has topped the garden trends this year.

The warm weather is back. This is a great time to explore the many ways to enjoy your outdoor space. From simple weekend projects to large-scale remodels, the trend toward using the outdoors to supplement indoor living space is here to stay.

Stay Focused on Your Goals

Buying or selling a home can be stressful, even in normal times. Right now, when the housing market is moving at a frenetic pace, both buyers and sellers are making quick decisions and are feeling extreme pressure. As the tension rises, it can be easy to overlook the end goal; right-sized home, relocation, dream home, etc. Try not to lose focus!

Buyer Challenges
Facing a very tight inventory of available properties, buyers have limited time to arrange to tour homes and knowing they must make a quick decision once they have. Buyers do not have the luxury of a second look or hesitation and often are competing against multiple offers, adding to the pressure.

Seller Challenges
Sellers are also feeling the challenge of the frantic pace. While it is nice to have multiple offers from which to choose, the fact that the offers are at times being made sight-unseen means that some of the offers may not be the buyer’s first choice and they could lose a “real” offer by choosing to work with the wrong one. In addition, if the seller intends to buy another home, then they will be in the same position as the buyers once they enter that side of the competitive market.

The bottom line in each case, however, is to stay focused on the end goal. Why are you looking to buy or sell? Working with your agent, and relying on their experience, keep your eye on the prize and recognize that the goal will be worth the effort