Real Estate News

Renovate to Sell? 5 Decision Points

Should you renovate your home before you sell it? The answer depends on so many factors. Your real-estate agent can help you evaluate your house, consider how it compares to other houses for sale in your neighborhood and price range, and determine which home improvements will pay you back for the money, time, and trouble you’d put out for them. As you work with your agent, think about these five issues:

1. Cleanup and repairs aren’t optional—and may be all you need. You may be amazed at what a difference de-cluttering, a professional house cleaning, and a yard cleanup can make. A fresh paint job is always a plus, too. As broker Nelson Salazar advises, you should also make any small repairs that need to be made, before your potential buyer tours your home and decides it needs “too much work.” Cracked front walks, loose railings, broken glass, leaky faucets and burnt-out bulbs are no-brainers. Fix them! Larger repairs, like replacing a furnace that’s on its last legs, are more of a grey area. You may decide to make the repairs before listing your home, or you may decide to negotiate with your buyer and let them buy the new furnace (or other major item) of their choice with a break in the asking price.

2. Know what the competition is like. You should definitely go to open houses in your neighborhood. Besides fun and free cookies, they give you a chance to see what houses for sale in your area and price range are looking like now. Do they have newer appliances than yours? Are their kitchens and bathrooms more up to date? Your agent can also help you learn what your competition is like, and whether home improvements will help you keep up, or price you out of the market you’re trying to sell in.

3. Know what your potential buyers want. As this article points out, a seller’s home improvement only helps if it matches the buyer’s taste. Before you start a major home renovation project, find out what styles are selling in your market. Updating your tiny kitchen won’t help much if buyers are only looking for large kitchens. If you add marble tile to your bathroom, but the buyers prefer ceramic tile, your home renovation costs will go down the drain. Only make changes that are selling well right here, right now.

4. Know how much value your renovation will add. Remodeling magazine offers a wonderful tool for anyone thinking about a renovation to sell. They compile their “Remodeling Cost-Value Report” every year, showing the average cost and value added for home sales for 35 common home renovation projects, and they chart those cost-to-value ratios for each of nine regions in the U.S. You can find their most recent version, the “2011 Remodeling Cost-Value Report,” here. This can help you decide whether your home improvement investment will pay off.

5. Know how much time you have. This decision is entirely about your personal situation. Do you have time to complete a home renovation? Or do you need to sell right away? If you’d rather sell quickly, you may be willing to accept a lower price instead of waiting around for a major home project to be finished.

The Staff at San Juan Realty, Inc.

Selling Well in “A Buyer’s Market”

Everyone is saying “It’s a buyer’s market,” but now still may be a good time for you to sell. Last week, we blogged about what “a buyer’s market” really means to buyers. (Hint: It’s not a free ticket to walk all over the seller.) Now let’s look at what it means to sellers. The most important thing is to know yourself and your own unique situation. Even though it’s a great time to buy, overall, it may still be the perfect time to sell—for you. Your home, your location, and your financial situation may put you in a great position to sell, even in “a buyer’s market.” If it is selling time for you, here are a few things to keep in mind to sell well in this housing market:

Know what your home is worth. “Fair market value” means the current value of your home, keeping today’s lower housing prices in mind. Find out the fair market value of your home, and stick to it when negotiating a sale. Offer a fair price, and be willing to negotiate, but don’t let buyers get away with lowball offers or bullying you for too many add-ons or concessions. How do you find out what your home is worth? Get it inspected and appraised early in the process. Also find a real-estate agent you can trust, and follow his or her advice when setting your asking price.

Do little things to increase the value. Definitely clean and de-clutter your home as completely as you can before showings. Clean and trim your landscaping for better “curb appeal.” If small repairs are needed, like re-caulking the bathroom or filling cracks in the driveway, be sure to get them done. Coldwell Banker suggests that home improvements and additions can increase your home’s value, too—just keep the changes within your own budget.

Be willing to add creative perks. While you don’t need to give in to unfair demands from buyers, it can help you to offer some perks—like help with closing costs, or appliances left in the home for no extra charge—to sweeten the deal. Figure out what you can afford to offer, and stay flexible.

Get an experienced Realtor to help you. This is the key to buying well or selling well in any housing market. A good seller’s agent will help you find out your home’s true value, set a price that’s attractive to buyers and fair to you, show your home at its best, and negotiate a good deal. Find someone with experience and solid knowledge of your local housing market. Once you’ve found an agent you can trust, follow his or her advice. You’ll be glad you did.

The Staff at San Juan Realty, Inc.

“A Buyer’s Market”—Four Tips for Buyers

Everyone’s saying it’s a buyer’s market for real estate today, but what does that really mean to you?

Yes, it is a wonderful time to buy a home, an investment property, or land. Mortgage rates are at record lows. While mortgage lenders are still stricter than they were before the mortgage crisis, many are loosening their requirements, so it’s getting easier to secure financing. Real-estate prices are low, overall, but starting to recover, making for excellent investment opportunities. Many sellers are eager to sell.

Still, this does not mean that a buyer can do no wrong. In her blog post, “Who Told You It’s a Buyer’s Market?” Realtor Carol Culkin tells stories of buyers who have tried to push the “buyer’s market” too far. She’s had clients ignore her advice, insulting sellers with extreme lowball offers and extravagant demands, and those clients have lost deals because of it. The moral of the story: Even though the market favors buyers now, buying real estate is still a negotiation that has to consider the needs of both sides. To get a good deal, you still need to do your homework and negotiate fairly. Here are four tips for doing just that:

1. Know the reality of the home or property you’re looking for. Is your dream property in a “financially distressed” area? Is your seller desperate to sell? It’s all right if they’re not—in fact, that may mean you’re buying better quality real estate. Find out what position your seller is in, whether they’re eager to sell or able to wait for a better offer. Find out the fair market value of the property, too, and plan your offer based on it. Keep in mind that figures for fair market value include the current low housing prices. Fair market value is already a good deal for you. Lowball offers far below that will most likely lose you the deal and waste everyone’s time. 

2. Know the reality of your own situation. How well are you set up, financially? Even though it’s a buyer’s market, securing financing early on will help your bargaining position. If you must, you may be able to get  concessions such as a low down payment or help with closing costs, but keep in mind that these weaken your position. Even though the housing market favors you, it helps to be an attractive buyer. 

3. Put yourself in the seller’s place. Yes, you should be looking out for your own interests, but keep in mind where the seller is coming from. Is your offer a fair deal for them, given the circumstances? As many have said, “It’s a buyer’s market, but not an idiot’s market.” In today’s housing market, you can get an excellent deal and still treat the seller fairly. Make an offer you’ll all be happy with. 

4. Find a buyer’s agent you can trust, and listen to them. This is the key to the three tips above. A good buyer’s agent knows the area you’re shopping in very well. For example, the agents at San Juan Realty know the southwestern Colorado communities of Ridgway, Ouray, Montrose, and Telluride inside and out, and can tell you how property is selling in that market. A good agent will also have excellent research skills and tools to help you fully understand the property you’re looking at, as well as your own financial situation. Don’t go into the negotiation alone. Get an expert to help you make the most of this time of opportunity.

The Staff at San Juan Realty, Inc.

Making and Keeping New Year’s Resolutions

The year 2012 still feels fresh and new for us, and we feel inspired to make changes in our lives. How about you? Have you made any New Year’s resolutions this year? You may be hoping to sell your home at a great price, buy a new home that feels just right, or make a profitable real-estate investment. You may be working on non-real-estate goals, too—personal, family, career, financial, or spiritual. Whatever our goals, the hopeful energy of a new year can help propel us towards them.

Most of us have had trouble keeping resolutions in the past. Not to worry–help is here! We’ve found lots of great advice for making and keeping all kinds of resolutions, from the common to the super-specific. Here’s the best New Year’s resolution advice we’ve found on the web:

• It’s all too easy to make the same resolution everyone is making, or to resolve to change something you think you “should” change. PsychCentral points out that you’re more likely to keep your New Year’s resolutions if you choose ones that truly matter to you. Their blog post, “9 Tips for Setting Authentic New Year’s Resolutions,” will guide you through choosing resolutions that really match your values and desires.
• There’s no need to change your resolutions for the sake of being different, though. If the New Year’s resolution you really want to make is a common one, go for it! In fact, the Mayo Clinic’s blog is here to help you. In this post, their experts tell you how to get started with three classic resolutions: lowering stress, losing weight, and quitting smoking.
• Pamela Yellen of The Huffington Post named her article “Seven Tips for Keeping Your Financial New Year’s Resolutions,” but her advice can help you reach any kind of goal. Whether you want to buy a great new home, get out of debt, lose weight, or be more patient with your children, her tips will help you stay on track.

Real Estate Predictions for 2012

Starting a new year brings us the hope and excitement to pursue our goals, but will the circumstances in the outside world match up to our dreams? Will the housing market help us achieve our real estate resolutions? Real estate experts say, “Yes and no.” Here are some of their 2012 real estate forecasts:

First, two articles with very specific predictions:

• The foreclosure crisis is nowhere near over. In fact, MSNBC reports that, “If the U.S. foreclosure crisis were a baseball game, we’d probably be in the bottom of the fourth inning.” At the end of 2011, the number of borrowers behind on their mortgage payments went down, but it was still far above the normal rate it was at before the crisis hit in 2007. A high rate of foreclosures is expected to continue for four more years, along with lower home prices due to foreclosed houses pouring onto the market.
• On the other hand, AG Beat predicts good news in investment property sales. The reason might surprise you: The Chinese government is loosening their restrictions on foreign investments. This gives a whole new group of wealthy, ambitious investors the freedom to buy real-estate portfolios in the U.S.

And here are more complete overviews of what 2012 has in store:

• The home buying and real estate channel at About.com offers their “Top 10 Real Estate Predictions for 2012,” and none of them are rosy. In fact, all of these predictions grow naturally out of the continuing foreclosure crisis: very little appreciation in home values, more creative ways to sell and finance, and many people remodeling their homes instead of buying new ones. They also expect more purchases of second homes, as those who can afford to buy take advantage of low prices.
• Tara-Nicholle Nelson of Inman News gives four real estate predictions for 2012, also focusing on the continuing foreclosure crisis. She expects foreclosures to continue and short sales to become common practice. Still, Nelson sees a silver lining. She believes that 2012 is the year when buyers and sellers will finally get real and start planning for the real estate market that is, not the one they wish they had.

While the above information might seem daunting to current and future homeowners, the important thing to remember is that there is OPPORTUNITY in every market. Now is the best time to build a relationship with a Realtor and use their in-depth market expertise to help you navigate the real estate landscape to YOUR advantage. Whatever you might need to accomplish, from a home purchase to achieving top dollar for a sale in a seemingly down market, your Realtor’s local market knowledge will be key to helping you get from where you are to where you need to be!

The Staff at San Juan Realty, Inc.