Archive for April, 2008

The Washington Post’s real estate editor, Maryann Haggerty, and the Local Address columnist for the paper, Elizabeth Razzi, recently had a live chat on The Post’s website. Here’s the transcript:

Live discussion with Post editor Maryann Haggerty and columnist Elizabeth Razzi

Most pieces in the media cover the overall market condition, so it’s interesting getting the press’s take on some individual’s situations.

It’d be great if they included an agent in one of their chats—I’d love to weigh in on the discussion.

Here are nine ways to sell your home (via Metro DC Home Info). Of course, we’d like to add a 10th step—work with Brandon Green Companies.

1. Know why you’re selling, and keep it to yourself

The reasons behind your decision to sell affect everything from setting a price to deciding how much time and money to invest in getting your home ready for sale. What’s more important to you: the money you walk away with or the length of time your property is on the market? Different goals will dictate different strategies.

Don’t reveal your motivation to anyone else, however, or they may use it against you at the negotiating table. When asked, simply say that your housing needs have changed.

2. Do your homework before setting a price

Settling on an offering price shouldn’t be done lightly. Once you’ve set your price, you’ve told buyers the absolute maximum they have to pay for your home, but pricing too high is as dangerous as pricing too low.

Remember that the average buyer is looking at 15 to 20 homes at the same time they are considering yours. This means that they have a basis of comparison, and if your home doesn’t compare favorably with others in the price range you’ve set, you won’t be taken seriously by prospects or agents.

As a result, your home will sit on the market for a long time and, knowing this information, new buyers on the market will think there must be something wrong with your home.

3. Do your homework

Find out what homes in your own and similar neighborhoods have sold for in the past 6 to 12 months, and research what current homes are listed for. That’s certainly how prospective buyers will assess the worth of your home.

4. Find a good real estate agent to represent your needs

Nearly three-quarters of homeowners claim that they wouldn’t use the same Realtor who sold their last home. Dissatisfaction boils down to poor communication which results in not enough feedback, lower pricing, and strained relations.

5. Maximize your home’s sales potential

Each year, corporate North America spends billions on product and packaging design. Appearance is critical, and it would be foolish to ignore this when selling your home.

You may not be able to change your home’s location or floor plan, but you can do a lot to improve its appearance. The look and feel of your home generates a greater emotional response than any other factor. Clean like you’ve never cleaned before. Pick up, straighten, unclutter, scrub, scour, and dust. Fix everything, no matter how insignificant it may appear. Present your home to get a “wow” response from prospective buyers.

Allow the buyers to imagine themselves living in your home The decision to buy a home is based on emotion, not logic. Prospective buyers want to try on your home just like they would a new suit of clothes. If you follow them around pointing out improvements or if your decor is so different that it’s difficult for a buyer to strip it away in his or her mind, you make it difficult for them to feel comfortable enough to imagine themselves an owner.

6. Make it easy for prospects to get information on your home

You may be surprised to know that some marketing tools that most agents use to sell homes (such as  traditional open houses) are not effective. In fact only 1 percent of homes are sold at an open house.

Furthermore, the prospects calling for information on your home probably value their time as much as you do. The last thing they want to be subjected to is either a game of telephone tag with an agent or an unwanted sales pitch. Make sure information about your home is available online.

7. Know your buyer

In the negotiation process, your objective is to control the pace and set the duration. What is your buyer’s motivation? Does he or she need to move quickly? Does he or she have enough money to pay you your asking price? Knowing this information gives you the upper hand in the negotiation because you know how far you can push to get what you want.

8. Make sure the contract is complete

For your part as a seller, make sure you disclose everything. Smart sellers go above and beyond the laws to disclose all known defects to their buyers in writing. If the buyer knows about a problem, he or she can’t come back with a lawsuit later on.

Make sure all terms, costs, and responsibilities are spelled out in the contract of sale, and resist the temptation to diverge from the contract. For example, if the buyer requests a move-in prior to closing, just say no. Now is not the time to take any chances of the deal falling through.

9. Don’t move out before you sell

Studies have shown that it is more difficult to sell a home that is vacant because it looks forlorn, forgotten, or simply not appealing. It could even cost you thousands. If you move, you’re also telling buyers that you have a new home and are probably motivated to sell fast. This, of course, will give them the advantage at the negotiating table.

As we mentioned in our last e-newsletter, Ken Rub has joined Brandon Green Companies.

Ken already has a vast knowledge of the real estate market because of his background in wealth management, commercial real estate, and real estate lending. While he enjoyed that line of work, Ken realized that his interest in real estate transcended the financial aspects of buying a property—he wanted to guide people through the entire real estate process.

We are very excited that Ken has joined our team and brings a new aspect to Brandon Green Companies: commercial real estate.

At Brandon Green Companies, we pride ourselves on helping our clients with their homeowner concerns, even when they are not looking to buy, sell, or invest in property. Please check our homeowners information page for some handy resources.

In the meantime, I recently came across this kitchen food-safety test. It’s a great way to make sure the condition of your kitchen doesn’t lead to any health problems.

As we mentioned in our last e-newsletter, our very own Veronica Seva has been awarded the prestigious Certified International Property Specialist (CIPS) designation and has joined a worldwide referral network of elite global real estate practitioners with expertise in working with international clients as well as immigrants.

The CIPS designation has been awarded by the National Association of Realtors (NAR), which represents more than 1.3 million Realtors in the United States.

Members of the CIPS Network are crucial players in today’s global real estate market. The CIPS designation recognizes members who have achieved the necessary training and experience to work successfully with international clients and properties.

To earn the CIPS designation, Realtors complete rigorous coursework devoted to learning cultural differences and international business practices. Designees also must prove achievement in international real estate transactions. Veronica joins a distinguished society of 1,500 real estate professionals throughout the world who have earned the CIPS designation.

“This is a highly prestigious award in our industry,” said Jim Harris, CIPS, NAR International Operations Committee Chair. “Veronica is now established as an expert in international real estate.”

In March 2006 the Chicago Mercantile Exchange and Tradition Financial Services, along with some other partners, launched the S&P CME Housing Futures and Options.

Much as futures and options allow investors to hedge their existing positions or speculate in investments like stocks, bonds, and commodities, S&P CME Housing Futures and Options enables people to manage the exposure of their real estate holdings (or speculate on the market). These futures and options also people to see what investors think the real estate market is going to do.

Per CNN, “these derivatives will enable investors to take a position on the direction of home prices either for the nation as a whole or for 10 major cities to start.” Washington, DC, is one of those markets.

Here are some useful sites if you’re interested in more information:

• Chicago Mercantile Exchange: Washington DC Contract Listings
• Chicago Mercantile Exchange: Washington DC Delayed Futures and Options Quote
• Matrix’s interpretation of the housing index

Here’s an article from our February 2007 newsletter about the home and Feng Shui (defined by Wikipedia as “an ancient Chinese practice believed to utilize the Laws of both Heaven (astronomy) and Earth (geography) to help one improve life by receiving positive Qi”).

Every area of a house can be viewed uniquely according to Feng shui theory, with some rooms being more important than others.

Bedrooms
These should be sacred spaces where an adult or child can retreat and regenerate. We spend roughly one third of our lives in our bedroom, so maintaining balance and serenity in this area is essential.

Front door
Sometimes called the “Chi Gate,” the main door is the gateway between the world and one’s privacy. Air currents literally enter and exit at this point; this area should be kept clean and uncluttered.

Hallways
These transition rooms are the arteries of the house. They should be relatively bright, not too narrow or cluttered. A chronically dark hallway should have a skylight or artificial lighting.

Living and family rooms
These are the areas where friends and family gather. They should be light, bright and open.

Dining room
Most people seldom use a formal dining room. Traditionally, however, it’s an important room in the house and should exude wealth.

Kitchen
The kitchen is referred to as the hearth of the home. The energy in this room is important; it should be light, bright and airy. The kitchen is considered one of the most important rooms in the house and should be clean at all times.

Bathrooms
It’s best to avoid homes with bathrooms in the center of the house or if it’s the first room you see upon entering a house.

Home office
There are two basic types of home offices: the one where we store and file papers, pay bills, and pass recreational time on the computer and the real home office where we sit for at least several hours a day conducting business and generating income. Both types of offices should be clean and orderly.

Stairs
Stairs should not be aligned directly with a heavily used entrance door or in the heart of the house. Stairs of any kind, indoor or out, need to be kept clean and safe to use.

Windows
Windows are the eyes of Chi; they should be clean and open properly. Ideally they should allow sufficient light and pleasant views into a room.

Ceilings
A flat ceiling is considered good Feng Shui. A severe sloping ceiling will cause the flow of air currents in the room to become chaotic. Sloped ceilings and exposed ceiling beams can contribute to sleep and health problems.

Floors
Floors should be level so as not to cause equilibrium or health problems for the occupants.

Late last year I was quoted in a Washington Post article about the need for buyers to carefully read the condo association documents before closing:

Read Them or Weep: Condo Association Documents Give Buyers a Glimpse of the Future

Life can be hectic when you’re moving. And after finding your dream condo the last thing you probably want to do is read through a hundred or more pages of fine print. But buyers and their agents need to make sure that the condo’s rules don’t conflict with the buyer’s future plans (like getting a pet or renting out the condo).

We’ve all been driving around, seen a house for sale, and wondered what the price is, but then when we returned home forgotten to look it up. Now there’s a free way to get the asking prices of homes on your cell phone, when you are in front of a property that’s for sale:

Jott to Zillow

The service uses Zillow, the real estate valuation search engine, and Jott, a voice transcription program. It works well too.

(Via Lifehacker)

On May 7th at 7pm, at our offices in Adams Morgan at 2410 17th St NW Suite 200, we will be hosting Lawrence Jacobs of Jacobs and Associates for a seminar on Wills, Estate Planning, and Trusts. This tends to be one of those things you know you need to do, but keep putting it off. Put it off no longer and join us for the free seminar to learn what you need to do next.

Larry Jacobs has over 30 years experience representing couples, individuals, and businesses to protect their assets and loved ones through planning. He also works in business transaction law, contracts and employment, and is frequently asked to consult on management and marketing issues. He is licensed to practice law in DC, MD, and VA. http://www.lsjlaw.com

Seating is limited, so email Amber@BrandonGreen.com to reserve your seats.