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Thursday, 17 December 2009
According to NAR, the National Association of Realtors, these are the seven most common costly mistakes that a seller does in the marketing of their home. These items could apply to us locally when selling a home in Rock Hill, Fort Mill, Tega Cay, Clover, York or Lake Wylie too.
Mistake Number 1: Placing the home on the market prematurely or before it’s ready to show. This is typical when a seller puts off maintenance on a home while living in the home and then when needing to sell hastily places the home on the market. The biggest cause of this is procrastination and failure to plan. However, it could be budgetary in light of the current economy. You would be surprised how many more buyers will see a home that has fresh paint and shows nicely. With a moving deadline, plan ahead. Don’t wait until the last minute. When you are marketing a property, the presentation of your home is crucial to making a home sale.
Mistake Number 2: Over improving for the subdivision or neighborhood in which you live. Additions, remodeling and upgrades that are much more than the rest of the neighborhood has done are going to be hard investments to recoup. You want to stick out among your competitors, but you don’t want to over indulge on these things. If there are not any two story homes in your neighborhood, going up might not be a good idea. Stick with a ranch style home. You don’t want your home to be an anomaly or eye sore instead of an attractive addition to the community.
Mistake Number 3: Pricing your home based on what you want to net instead of what the market will bear. How can this possibly work for a home seller? It will always fail. As a seller, you can ask anything that you want for your property and can control that. As far as controlling sales prices, good luck. The market dictates what sales prices are based on the comparable active and recently sold homes in your area. Let’s face it; if you want traffic in your home, you had better have your home priced right.
Mistake Number 4: Hiring an agent based on non-business factors. Everyone knows a real estate agent right? You should always make sure that you are hiring a real estate professional with a record of results. You might think it a good idea to hand over the marketing of your home to a niece who is recently licensed, but that might not be a prudent idea. Experience in handling the details and negotiating your best deal should be your highest priority in making your Realtor® hiring decision. If you are going to hire an agent who is untested, make sure that they have a mentor or that they work on a team with some other more experienced agents. This has never been truer than in today’s market with all of the special property problems, like foreclosures, bank owned homes and short sales that are facing many people trying to sell their homes. If you have to sell, get a specialist to help you with your problem. Can you afford to have an inexperienced agent help you with your situation?
Mistake Number 5: Becoming overly emotional in the sale of the home. This can be tough for a home seller. You have memories in this home, but you have to look at the home as an asset and commodity once you decide to sell the home. You will want to get the most for your investment as possible. So keep the beautiful memories in your head and plow forward with the work that needs to get done in order to maximize your return on your investment. The buyers who are walking through your home don’t put the same values on your memories as you do and they are not going to “pay” for them. They are only interested in finding the best priced home on the market that fits their needs.
Mistake Number 6: Trying to cover up or failure to disclose problems. Both South Carolina and North Carolina have property disclosure forms that sellers use to acknowledge the condition of the property to potential buyers. You should always fill it out honestly and provide as much detail about the property as possible. This will greatly reduce any potential problems that may occur later from a property problem that the buyer may have. As mentioned earlier before, you are better off making repairs prior to marketing your property, but if you don’t fix it, remember to disclose it.
Mistake Number 7: Not being prepared prior to selling. Make sure that you plan things out. Make sure that you know what the values and comparables are prior to selling, so that you get your home priced right. Know whether you are in a buyer’s market or a seller’s market. This will determine whether you need to find your next home first or sell your home first. Make sure that there are no prepayment charges on your mortgage that you will incur if you sell. Make sure that you are prepared to sell and move physically and emotionally. If you don’t prepare, it can be expensive as last minute changes in home selling decisions can cost you big time if you get into a contract and try to withdraw without a valid reason.
If you plan your work according to this formula, work your plan and hire a good agent to represent your interests, you should get through the home selling process without too many difficulties. I hope for your successful sale of your home.
Ross Harkness
Palmetto Property Pros Team
Wilkinson and Associates Real Estate
Tuesday, 15 December 2009
The hidden problems in a home can be very costly to repair to a buyer and much more expensive than the price of the initial home inspection. That is why I always recommend that my home buyers get a home inspection.
With a great majority of resale homes needing repairs or having serious defects, making sure about your purchase is a prudent idea. Without the inspection, you could be inheriting a rather large repair bill once the transaction is closed. Estimates of home inspections that I have had performed in the York County and greater Charlotte area have ranged from $200-600.00, but they are usually $300-400.00. With repair expenses for just one defect potentially in the thousands of dollars, the decision to have a licensed inspector come out and give you a blessing on a home is a no brainer. Pricing ranges depend upon the size of the home, and the inspection services that you choose.
A regular home inspection will consist of the inspector going over all of the major systems, structural components, safety factors and typical functional uses of the home. These items will include inspections from the foundation to the roof, the weather envelope, the plumbing and electrical systems, framing components that are visible, gutters, grading, HVAC systems, garage door openers, doors and windows, hardware, moisture levels, etc. A good home inspector is thorough and will spend as much as 4 or 5 hours at the home for a regular sized home.
Another typical inspection that you will want to have is a termite inspection or sometimes called a pest inspection. Especially here in the Carolinas and the South, water damage and insect problems can be severe if not detected early. A good inspection can save you cash down the road or be a red flag on whether you decide to purchase a home or not.
Other inspections that you may consider on your home are tests for:
1. Radon gas levels
2. Lead based paint
3. Septic and water systems
4. Lot line surveys.
Radon gas is typically a problem when there is poor ventilation in a crawl space. Radon gas is a naturally occurring gas that rises up from the soil and when trapped can accumulate a high content that is unsafe. This is a potential hazard in the under home spaces that many homes have in our area of York County and Charlotte. With good cross ventilation, this gas is not allowed to achieve dangerous levels.
Lead based paint is not a problem for newer constructed homes, as it is no longer being produced and used in the U.S. However, it’s on homes that were built prior to 1978 that you should consider having a lead based paint risk assessment. In fact by law, a seller is required to disclose to a buyer when a home is built prior to 1978 and allow that buyer the opportunity to have the property assessed for lead based paint risk. Lead poisoning has been known to cause permanent damage in children’s neurological systems, causing learning disabilities, reduced intelligence, behavioral problems, and impaired memory. It is also known to pose a risk to pregnant women.
Septic and water systems are other systems that you could have the inspector check. On a septic, you will want to know if there are any problems with the holding tank or clogged leach lines/seepage pits. A water inspection is typically done for a well. However, even a municipality’s water system could be checked by a qualified inspector for bacteria, ph, chemical and metallic levels. With a well, the inspector typically checks for the safety of the water and the functional use of the pump and tanks. Not having good water can be a costly item to repair.
Sometimes there is a question about exactly where the lot lines are for a property. As an owner, you will want to know where you could possibly build a fence or may have a concern about a potential code violation in your property or that of a neighboring property. With those in mind, having a surveyor come out and stake out the perimeter of the land you are purchasing is a good idea and the best way to eliminate potential disputes among neighboring properties.
Here is a good point. I have recently started building a fence at my primary residence, in Rock Hill. I live in a middle class residential community with an HOA and went through the normal steps of commencing with my project. I pulled my building permit for my fence at the Rock Hill Building and Safety Department, and informed my HOA representative of my intentions to build. I knew pretty much where the lot lines of the property were. However, I decided to hire a surveyor to stake out the property lines to reassure myself.
Boy was I sure glad I did that. After, laying out my holes to dig for the posts, I went and rented out a power auger at the Home Depot to mass produce all of the holes that I needed (about 50 of them). I had decided that I was going to place my fence between 6-12 inches inside my property line, just in case anyone of my neighbors wanted to complain about it infringing on their land. As I dug, I hit two different neighbor’s electric fence lines, which were buried under the grass. But, guess what? Their wires were on my property. As a result of having the survey done, it was easy for them to see that the responsibility of the repairs were theirs and not mine. Had I not done the survey prior to digging, there would have been a potential for some very angry neighbors.
Here are some of the most common serious home defects:
- Foundation damage or settling issues
- HVAC repairs or replacement needed
- Roofing defects or replacement needed
- Moisture levels high in basement, walls
- Environmental types of hazards: radon, asbestos, lead paint, underground storage tanks
- Pest infestation -- termites mostly, but could be ants, crickets, wasps, rodents, etc.
- Plumbing issues
- Electrical issues (old and undersized panels and circuit breakers, poor grounding, aluminum wiring)
- Chimney settling or separation
When you have one of these repairs to complete, you could easily spend thousands of dollars, but finding out before you buy could save you that money as repairs are items that could be negotiated during the time that you are under contract. However, without an inspection, you might not know of any repair needs.
Once the inspection has been completed, if there are no major repairs that need completion, there is very little for you as the buyer to worry about and negotiate. That can be a comforting feeling, knowing that you are buying a trouble free home. After having an inspection done, you know that you are not just buying a property on an emotional level. You have done your due diligence.
As a lifetime contractor myself, I always hire a home inspector prior to buying a home. They are trained to perform these inspections and are much more thorough than a contractor would be. Also, good full time licensed property inspectors are not there to sell you on their construction services, even if they perform those duties too. They should be impartial in their inspection regardless of who is paying for their services because the findings of the home speak for themselves.
Once you have a property inspection report in hand, it helps to have someone on your side that can explain or interpret that report. A good inspector will do that for you as part of their service.
Lastly, if you are selling, it’s not a bad idea to have an inspection done before listing your home. That way, you can tackle and eliminate any of the potential problems that may arise with the negotiation process after an offer has been made. You also may be more apt to secure high offers if your home feels and appears to be problem free.
I hope this helps you in your decision to have a home inspection done.
Thanks and happy house hunting,
Ross Harkness, Realtor®/Builder
Wednesday, 09 December 2009
Everyone has heard the stories of people who have bought a home, fixed it up and sold it again for a huge profit in just a short time span. It’s become a regular part of the American folk lore. But the truth is that it can still be done, even in this existing housing market, right here in York County. Whether you live in Fort Mill, Tega Cay, Rock Hill, Fort Mill, Clover, York, Lake Wylie, or across the border in North Carolina, you can still find a great bargain of a home, fix it up and turn a profit. Is it as easy as it was in the past? Maybe not, but the trick now, as it has always been, is finding the right home at the right price in the first place.
There are lots of ways to find good deals right now. There are short sales. This is when a seller owes more on the home than it is currently worth and requests that the bank take less for the existing note. There are REO properties, bank owned homes that have been foreclosed upon or taken back by the bank for any reason. There are deals on new construction, and of course there are deals on resale homes, at least the ones where the owner is highly motivated to sell.
Regardless of how you find your good deal on a home, the only way to increase your equity on a home by remodeling is by doing nice looking fix ups. This means that the job that you are doing should help the house flow better, feel better and/or look better. Depending upon the age, size and neighborhood of the existing home, will dictate how much money you want to put into the project. I wouldn’t recommend putting a large addition on a home in a subdivision where no other homes are close to the size of the newly enlarged home. However, on that one, I might recommend increasing the curb appeal with some nice exterior landscaping, a coat of paint on the inside or outside, installing upgraded moldings in the home etc…Small items. You may also consider the idea of a kitchen or bath remodel. Now on the other hand if that same home is in a neighborhood where many of the homes have added footage. That addition might be a good decision. The key is to be consistent with the projects that you perform on the home and how they fit for the neighborhood.
As a lifetime contractor, remodeler and property investor, I have always found that improving the kitchen and baths pays off when I have gone to sell the home. These are the main focus areas when people are buying a home and considering whether they could see themselves in the home. Here is a list of other items that I think would pay off for you, in fixing up your home’s resale potential, without killing your budget:
1. Fresh paint. If you are going to do it, take the time to prep all of the surfaces to be painted first and to cut the lines in cleanly while applying the paint. Earthy natural tones are a safer bet than the outrageous colors. Leave most of the colors of the crayon box out to appeal to the highest number of potential buyers. Some color is good, but don’t overdo it. The surface preparation is just as important as putting on the paint. Fill old nail holes. Make sure that the texture on walls and ceiling is consistent and ready for the new. Sand moldings as needed to guarantee a good finish for the newly applied paint. Dust after sanding walls, moldings doors etc…Paint doesn’t apply well or look good on dust or dirt. If you have stains, apply a stain killer prior to painting as part of the prep process.
2. Install taller baseboards, new door and window casings and crown molding. This is something that your professional could do very easily, but you could complete as well. All you have to do is be able to read a tape measure correctly, and make a clean cut with a saw. You can buy a reasonable trim kit saw for cheap in a do it yourself store, although a nice electric compound saw (cuts a bevel and angle simultaneously) is even better if you can afford it. If you are doing crown moldings too, you will definitely want a compound cutting saw. Make sure if you are going with paint grade trim to caulk the joints and the transition from the molding to the wall. It makes the trim and paint job look much cleaner.
3. Change out and upgrade your home’s lighting and plumbing fixtures. It’s always a good idea to hire a licensed professional for these trades. Be consistent on the fixtures. Try to keep a common look/theme throughout the house. Consider adding some can or recessed lighting in areas where there is minimal light. Many homes are missing accent lighting that would really enhance the appearance of a room.
4. Change out old electric receptacles and lighting switches with newer ones. Once again, really a job for a licensed electrician. However, it need not be an expensive one. They can usually do about 15-20 of these in about an hour. Make sure that you replace the cover plates too!
5. Replace old door hardware. This is something that you can do on your own. Levers are really nice. If you decide on levers, make sure that you buy the correct handing for the door and the way it swings. Old painted hinges are fairly easy to change out as well. Some have rounded corners and others have pointed corners. Check with what is installed in your home prior to purchasing new hinges to ensure that they will fit correctly.
6. Re-grout the tile on countertops, floors, tubs and showers. This job isn’t fun, but it will really make the space look better when completed. Unfortunately, if the tile is damaged and just way too out of date, you may have to replace it too. When you are ready to install the grout, make sure that you have a couple of buckets for clean water and one to mix your grout. You will also want some hydraulic sponges for cleaning up and a grout float to install the material.
7. Upgrade your flooring. Hardwoods are a great way to go. Make sure that you understand about the underlayment needed for the product that you have chosen and that you let the material acclimate in your home for several days before installing. Another good option is to install porcelain tile in the kitchen, baths and laundry rooms. It is more durable than ceramic tile and less apt to break. Replace old ratty looking carpet with new carpeting. Don’t skimp on the padding material, even though it’s cheaper. Your better off installing cheap carpet over a good pad then good carpet over a cheap pad. Make sure that if you are replacing carpet that it’s the same color throughout the house. Remember consistency in color schemes for your feel/flow of the home.
8. Remove the old acoustic (popcorn) ceilings. When you see this stuff, it’s a sure sign of a home that is older and needs updating. While the acoustic ceiling material does help for sound absorption, it does not help for aesthetics, and you can always dispel sound in other ways. Note: This project is messy and you will have to perform some drywall work afterwards and then paint. I recommend bagging the entire walls and room in plastic if you are going to do this job or at a minimum remove all of the furniture and cover the floors. There are two types of acoustic. Drywall acoustic is easily scraped, but plaster acoustic is a pain to remove. If you have that type you may want to reconsider how the job may be performed. I have skinned ceilings with new drywall and skim coated the plaster ceilings on jobs in the past as alternatives to scraping.
9. Fresh flowers and landscaping. Good curb appeal is a crucial element of getting a good buyer into your home. If it doesn’t look good from the street, they might not even want to come into the home. Talk with your local nursery and plant seasonal flowers that will bloom during different times of the year to maintain some color during all seasons.
Larger projects include kitchen and bathroom remodeling, additions, decks and concrete work. For these larger projects, I recommend consultation and the hiring of a good local professional. I will write another article on the interviewing, selection and hiring of a contractor for another time.
Good luck and God bless you in your efforts to improve your home. If you want any more information about any of these processes or any construction process, I would be happy to assist you. Feel free to contact me anytime via phone or email. I answer when you call. If I’m not able, I am a prompt call returner.
Ross Harkness, SC Realtor®/Lic. Builder, NC Broker
Palmetto Property Pros
Wilkinson and Associates Real Estate
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