Filed under: Buying a Home, Home Maintenance, Home Values, Real Estate | Tags: Cheryl Brenna Group, Home Inspections, Purchase a home, Real Estate, Twin Cities Metro Area
Consider Re-Sale When Purchasing a Home!
Buying a home can be one of the most emotional events in your life. And it should be! The purchase of a home will most likely be one of your largest single expenditures. It is your sanctuary and possibly the place you will raise your family. You want it to fit you!
Looking for a home seems fairly easy. You drive around neighborhoods, visit open houses and search real estate web sites to find properties that interest you. Things become more complex when you become serious about putting in an offer on a home. Whether it is new construction or an existing home, the time to avoid re-sale problems is when you decide to purchase.
It may be hard to think about re-sale when you are just considering buying a home. However, some time in the future you may want or need to sell that home. Remember, no home will be absolutely perfect. But once you find the home that fits your needs, it would be wise to look ahead and consider any possible issues that could affect the re-sale of the property. You will want to have a home that is in high demand by future buyers and one that will get you the highest price possible in the market at the time you decide to sell.
Here are a few potential items to consider in order to avoid future re-sale problems:
1) Lack of Yard
Buyers may pass on a home that has a significantly smaller or unusable yard.
2) Unusual Easements or Restrictions
If unusual easements or deed restrictions are discovered on the title work, it could be cause for re-consideration and it would be in your best interest to carefully evaluate the situation before making a final decision. Some examples: Is there an access easement to another property? Is there an encroachment on the property? Is flood insurance required? Is there a lot boundary issue?
3) High Tension Wires
The general reaction by buyers to nearby high tension wires is to simply cross the property off their short list.
4) Steep Driveway
From past experience if a drive way is too steep, some buyers won’t even get out and view the home.
5) Busy Street
The noise and traffic related to a busy street is a turn off to many buyers regardless if the street is located in the front or to the rear of the home.
6) Uncommon Style
Homes that are atypical for the neighborhood may be problematic in selling in the future.
7) Non-Functional Floor Plan
Floor plans that make living in the home difficult may turn buyers away. Some examples: Excessive level changes, low ceilings and rooms that are out of proportion.
8) Water Drainage Problems
Poor water drainage can create serious and costly structural remediation problems.
9) Over Improved
It may be difficult to recoup the cost for homes that are over improved for the area. Some buyers may feel safer purchasing at the mid level of a neighborhood.
10) Inspection Issues
Excessive repairs noted in your inspection report may indicate the house was not maintained or was poorly constructed.
These are just a few of the things to consider when purchasing a home in order to avoid re-sale problems in the future. Some of these issues may be fixable but be sure to thoroughly assess the situation and get expert advice when considering the cost of repair or improvement. Now is the time to look ahead and anticipate possible sales objections that you may encounter with this property.
The Cheryl Brenna Group is committed to helping you find a home that you will love to come home to! Choosing the right real estate agent to look after your best interests is critical. You want a professional who is highly knowledgeable of the market as well as in tune to your specific needs. We want to find the right home for you!
Filed under: Home Values, Selling a Home, Twin Cities Real Estate News, Woodbury Real Estate News | Tags: Cheryl Brenna Group, Preparing Your Home for Sale, Selling Your Home, Twin Cities Metro Area, woodbury minnesota realestate
CAUTION: DON’T SET YOUR LISTING PRICE TOO HIGH
Picture this: You’ve decided to sell your home, and you have an idea of what you think it is worth. You schedule appointments with three local listing agents. Each Realtor comes prepared with a Competitive Market Analysis (CMA), and each recommends a specific listing price.
Two Realtors settle on prices lower than you expected. They back up their recommendations with recent sales comparisons and data of similar homes that didn’t sell while they were listed. But you remain convinced that your house is worth more.
The third agent’s figures are more in line with your anticipated value — maybe higher. Your spirits lift. Confident that you are going to get a higher sale price, you may even start searching for a more expensive home to purchase.
Not so fast! Realtor number three has just engaged in a questionable sales practice called “buying a listing.” He seems willing to accept your input and work with you; seems to care about your financial return, right?
Wrong. He “bought” the listing by tempting you with a higher list price than the other agents recommended. Most likely, however, he is doubtful that your home will actually sell at that price. His intention from the beginning is to eventually talk you into lowering the price, and to continue asking for price reductions in order to attract potential buyers.
Think about it. If you start out with a listing price that’s too high, then drop it later, your house is “old news.” You’ll never recapture that initial flurry of activity, and your house could take longer to sell. And if you do happen to sell at an above-market price to an uninformed buyer, your sale could fall apart once your buyer’s mortgage lender orders an appraisal and determines the home is worth less than the amount agreed upon. Then you’re in the unenviable position of trying to renegotiate the price — if the buyer is willing to listen.
Several years ago, buyers were forced to make full-price offers right away. In today’s market, those same buyers are turning down deals that aren’t sweet enough. Overpricing may have chipped away at your return — or worse, put you back at square one!
The Cheryl Brenna Group will assist you in setting a realistic listing price that will generate interest, momentum, better offers and—ultimately—a mutually satisfying sale.
For more information on setting your home’s listing price, we invite you to watch the following video:
Filed under: Buying a Home, Home Values, Selling a Home, Woodbury Real Estate News | Tags: Cheryl Brenna Group, Market Activity, Purchase a home, Selling Your Home, Twin Cities Metro Area, Woodbury Real Estate News
Why Aren’t People Buying Homes?
You don’t have to be a real estate agent to know this—anyone even remotely clued into the world is hearing it over and over again: it’s a buyer’s market, a buyer’s market, a buyer’s market. So, if it’s such a buyer’s market, why aren’t all the homes for sale being snapped up? What’s going on in the minds of Woodbury home buyers?
The first, obvious, answer is the economy. With national unemployment levels still rising, as well as the fear factor accompanying the recessionary black cloud hanging over all our heads, plenty of people don’t want to spend their money—even on everyday items, not to mention purchasing a new home. This mindset is perfectly understandable, but doesn’t account for the throngs of people who are in a healthy financial position and are interested in buying a house but still choosing not to move forward.
At the Cheryl Brenna Group, some of the buyers we talk to are still sitting on the sidelines and waiting for the bottom of the market to present itself. To that, all we can say is, how will you know when the bottom is reached? Of course, we’ll all know the real estate market has hit the bottom only when we’re not there anymore and prices start to rise!
Another concern we hear is from potential buyers who have a home to sell before they can purchase another house. They’re worried about the loss in equity they’ve experienced in their current home as well as the potential for any new home they purchase to decline in value. None of us has a crystal ball, but we can look to history to tell us that real estate in general is a great place to invest our money long-term. Homes may have lost value now, and may continue to go even lower, but we know—without a doubt—that if you have the time and plan on staying put for a while, your home will increase in value.
As to the loss in equity on a current home, selling for less than was possible a few years ago means you will also buy for less than you would have a while back. Sounds like a winning situation all around!
Happily, there are plenty of indicators to tell us that–although we may not be at the 
lowest point in the housing market yet—NOW is the time to buy. The housing affordability index is at a record high, while mortgage rates remain historically low. The inventory of homes available for sale is quite large in all price ranges and those looking for new construction are finding builders are negotiating like never before. On top of all that, first-time home buyers (defined as not having owned a home in the past three years) are eligible for a new federal tax credit up to $8,000 if a home is purchased by December 1 of this year.
Here’s the bottom line for all potential buyers wondering if it’s time to take the plunge—if you’ve got a down payment, a stable job, and an area you’re comfortable living in for years to come, by all means it’s the time to buy your next home (with our blessings!).
Filed under: Buying a Home, Home Staging, Home Values, Selling a Home | Tags: Cheryl Brenna Group, Home Staging, Preparing Your Home for Sale, Selling Your Home, Twin Cities Metro Area, woodbury minnesota realestate
Do Home Improvements Really Pay Off?
We have found that many people are wondering where their money will be safest during these uncertain economic times. When homeowner’s turn to the Cheryl Brenna Group for our expert advice, we counsel them but some things never change…investing in their home still pays off. Despite home drops in the Twin Cities area updating projects are holding their own as a way for homeowners to add value.
When selling your home in today’s market, it is critical
for seller’s to understand that selling their home is like a beauty pageant and a price war combined. In order to be competitive and to position yourself in the top five buyer choices it is more important today than ever to put your best foot forward when preparing your home for sale.
By renovating before selling, homeowner’s get to enjoy the new “space lift” themselves, not just make the home more appealing to buyers! Not only is your home going to be perceived as having a higher home value, it is going to make the buyers decision easier because your home will be move-in ready and your home will be on the top of their list. Buyers will focus on the positives versus the negatives of having to spend additional money once they purchase the home and bring it up-to-date.
These are the improvements that we believe continue to be your best investment in this market:
1) Updated Kitchen – counter tops, appliances, cabinetry hardware, light fixtures.
2) Bathrooms – cabinetry hardware, plumbing fixtures, light fixtures, sinks, tubs, showers, and water closet.
3) Flooring throughout the home should be up-to-date, fresh and clean.
4) Paint colors throughout the home should be in warm tones and up-to-date.
As an added value to our clients, the Cheryl Brenna Group offers free home composing and assistance in making selections. We also have the right professionals to get the job done in a timely manner for the right price! If you have any questions, we welcome them. Please feel free to email us or leave a comment below and we will circle back to you.
“A comfortable house is a great source of happiness. It ranks immediately after health and a good conscience.” ~Sydney Smith
Filed under: Home Values, Market Statistics, Woodbury Real Estate News | Tags: foreclosure, Market Activity, woodbury minnesota realestate
Weekly Market Activity Report 2.9.09
For the week ending January 31, new listings continue at a lower level than seen last year, clocking in at 1,635—a 15.3 percent drop. Conversely, pending sales continue to raise sand with 673 recorded for this week’s report—25 percent above last year. Basically, this is all welcome news. Having fewer listings on the market, combined with an increase in pending sales, helps to reduce the Months Supply of Inventory to 13.5 percent when compared to last year at this time—down from 8.9 to 7.7 months. This means it will take the current supply of houses for sale 7.7 months to sell (on average).
The Percent of Original List Price Received at Sale continues to fall, with the January figure of 89.5 sitting at 1.6 percent less than 2008. It’s important to consider sales prices of foreclosure homes and how they affect this figure.
Our new Housing Affordability Index jumped to 202 in February. This is another new record and means that the median family income is 202 percent of what is necessary to qualify for the median-priced home. Again, we must consider how the sales prices in the lender-mediated market are affecting this figure, but we can say with some confidence that there are a number of very attractive buying opportunities in the local housing market. If we are able to maintain these trends, the sooner we will see more stability in the market.
A thought to leave you with today…
There are some fairly remarkable opportunities out there for buyers, especially first-time home buyers, that weren’t available even a few years ago. If you can qualify to purchase a home now, the purchase makes sense for your situation, and you’re prepared to live in that home for at least five years, there are a number of reasons why real estate continues to be a great investment tool:
1. Affordability is at it a record high
2. There are plenty of homes to choose from
3. Builders are offering creative discounts and financing
4. Mortgage rates remain historically low
5. You may be eligible for a federal tax credit.
Choose the Cheryl Brenna Group for your real estate needs. You can count on us to lead you through the buying and selling process to fulfill your dreams for a new lifestyle and to help you build wealth through home ownership.
