Sell Your Home | San Antonio Real Estate | Kimberly Howell Properties

Going it Alone: For Sale By Owner

April 22, 2013 By khproperties Leave a Comment

There are some people who will always want to go it alone and sell their home as a for sale by owner. Real estate agents will often argue the pros and cons with anyone thinking about doing things themselves and it is our belief that the cons outweigh the pros (but, we’re real estate agents, so we have to say that). Although the potential for doing it as a for sale by owner (or FSBO as they are called in the industry) has greatly increased since the boom of the internet for real estate by making it easier to be spotted, there is still a key ingredient missing from most for sale by owners properties. Bet you’re thinking it’s “the expertise of an agent”…right? Well, that’s not where I’m going with this one.

The key ingredient? The MLS or Mutiple Listing Service. While it can be argued that the wealth of property sites on the internet make up for this, the MLS is still a treasure trove of information for home buyers.

Ninety-one percent of home buyers who used the Internet to search for a home purchased through a real estate agent, as did 71 percent of non-Internet users, who were more likely to purchase directly from a builder or from an owner they already knew in a private transaction.

As you can see from the quote above (from an analysis of the NAR Survey of Home Buyers and Sellers), 91% of home buyers that used the internet still used a real estate agent. So where did they find the property they eventually bought?

When buyers were asked where they first learned about the home they purchased, 42 percent said the Internet; 34 percent from a real estate agent; 10 percent a yard sign or open house; 6 percent from a friend, neighbor or relative; 5 percent home builders; 2 percent directly from the seller; 1 percent a print or newspaper ad; and less than 1 percent from other sources.

Although more people said they found their home on the internet (42%) than they did from a real estate agent (34%), this number is not something to throw away. Would you want to throw away 1/3 of your potential buyers by not using a real estate agent? Something else to consider – what percentage of the 42% of people that first found their home on the internet were using an agent’s IDX search or found a home that was on a listing syndication website (which are often pushed through thanks to the MLS)? Even if the answer is zero, the 34% is still a large chunk of people to not advertise your property to.

Of course, there are other pitfalls and problems to selling a home on your own, but for now, I’ll leave that argument for another day.

image courtesy of sidewalk flying

Filed Under: Sell Your Home Tagged With: for sale by owner, mls, sell your home

Seller’s Temporary Residential Lease

April 15, 2013 By khproperties Leave a Comment

Does the thought of packing up all of your precious belongings, scheduling movers, utility shutoffs, and wrangling the kids, pets, and spouse into a packed car send shivers down your spine? Is it made worse by the thought that you could go through all of that only to have the contract on your house go wrong at the last minute? To avoid making those last few days leading up to closing even more tense and stressful, consider this.

Sellers can request and negotiate to lease their home back from the new buyers after closing. There’s a simple two page form called the “Seller’s Temporary Residential Lease” that gets added to the contract and I must admit there have been times that it has been a true lifesaver. With this form, you negotiate a set per diem rental rate (commonly it’s calculated by taking the buyer’s new monthly payment and dividing by thirty, but it’s all negotiable) and possibly offer up a security deposit. Once everyone signs at closing and the deal funds, the buyers become the rightful owners of the property. And the old owners become their tenants. Standard landlord/tenant relationship rules apply and generally payment for the anticipated term of the lease is paid all at once up front. This leaseback can extend for a few days or a few weeks, just no longer than 90 days. So if the new home you’re purchasing isn’t quite ready or if you just want an extra few days of certainty before busting out the boxes, consider this as one more option in your real estate tool belt.

There is also a “Buyers Temporary Residential Lease” which is used when the buyer needs to move in before closing. It is not as common as there are some legal issues with doing this, but it can be used in a pinch.

Filed Under: Sell Your Home Tagged With: buyers, lease, sellers

10 Things Sellers Shouldn’t Do

April 11, 2013 By khproperties Leave a Comment

Never, ever do these ten items.

Selling your home seems simple enough, but there are hidden dangers out there. Simple mistakes that could easily cost you a sale. Some are so simple that you’ll want to have a “I could have had a V8″ moment. Some are emotional gut checks. And some are just good practices to remember when going through the offer phase of negotiations. Stick with these ten things to not do when selling your home and the process will flow much more smoothly to the final days of closing.

Stick around for the showings: It makes people uncomfortable. Buyers suddenly clam up if they feel they’re being watched by a stranger. They are less likely to really take time to go through and appreciate all that your house has to offer, and they may walk away with unresolved feelings about the home because they didn’t feel they could speak openly with their partner or agent with you around.
Neglect the yard: First impressions are critical, and a good deal of that revolves around landscaping. Especially during times of drought, it is worth it to make sure those sprinklers are set correctly or to take the extra time to hand water. Buyers do notice if you have the greenest grass on the block. And they like it. Unruly bushes and trees suggest something unfinished or unattended to and makes them wonder about everything else.
Take offers personally: Many buyers have been told that they can get a good deal on a home and a lowball offer may just be their way of testing the waters. They don’t know you personally. They aren’t trying to insult your property. They may just be trying to seem savvy in what they consider to be strictly a business transaction. Look at things from that perspective.
Take repair requests personally: See above about the offers. And then also consider that some buyers may not have a handy bone in their body, so the thought of “arc fault protectors” may scare them half to death.
Price yourself out of the market: We know your home is beautiful and you’ve put a lot of money and effort into it. But the truth is that the market is what it is and most of the time there’s nothing you can do about it. If your neighbors sold low because of a divorce or emergency job relocation, you may pay the price for that in your own sale. It’s not that anyone is against you making money, but more that there are some conditions you can’t control. If you’re priced too high, you could miss out on some valuable first days on market when the property is likely to gather the most attention. You may flat turn off some potential buyers and you may even have your house listed longer as it could stagnate. Really analyze the sales data and trust in the experts. It will pay off in the long run.
Settle for good enough: Buyers are snatching up properties these days and the homes that are going quickly (often with multiple offers or above list sales prices) are those that have been well maintained and show impeccably. Take the extra time to plug in some air fresheners, to clean the windows, and dust the tops of those cabinets you don’t think anyone really sees most of the time. It’s the little details that can add up to make a big difference. Let your property shine and take the advice of your agents as to how to get your home to that next level of awesome.
Pack up and move right away: Start making a plan, but unless you have to move, you’re better off waiting until a buyer makes it through the option period – and even the financing period – before getting those boxes out. Unpacking is never fun and neither is carrying the expense of multiple households should anything go wrong on the deal. Consider a leaseback as an option in the contract that could save you a lot of frustration in those final days before closing.
Conceal facts: State law requires a seller’s disclosure and “forgetting” is not really an admissible excuse in court. Be as honest and forthcoming as possible about property conditions and save yourself a lot of headaches (and liability) down the road. Dig up those old receipts to show where a problem was resolved and keep good maintenance records to help with those memory glitches. If you’d want to know as a buyer, you should probably tell it as a seller.
Turn down showings: If no one can see your house, no one will buy your house. Having your house listed for sale is a chore, but you have to participate to get your desired result. There are many times when it is really and truly not possible to show your house – family member’s illness, tornado in the living room, out of town company cramming their suitcases in every corner – and we get that, but try to be as accommodating as possible and you’ll likely get an offer as quickly as possible.
Go it alone: Real estate purchase contracts are legally binding documents full of small caveats and provisions that you may not even consider when thinking of buying a home. Even when buying a new home, it’s completely worth it to use the expertise of a quality REALTOR® to provide a wealth of information and negotiating skill. From comps to property condition pitfalls to resale considerations and negotiating skills, agents deal with these matters day in and day out. Go with a pro.

image courtesy of yoppy

Filed Under: Sell Your Home Tagged With: advice, sell my home, sellers

San Antonio Real Estate Enters Springtime

March 13, 2013 By khproperties Leave a Comment

Housing Market in Bloom?

After our short bout of wintery weather, I’m feeling rather eager to see the spring (and even more so the summer). Part of what makes San Antonio so great is the fantastic weather. As the temperatures thaw and our days get warmer, we’re definitely seeing a pick up in real estate activity. More people searching for homes, more questions being asked, more phone calls being made, and an overall increase in traffic to this website. As the swallows return to San Antonio (I spotted two this morning), I thought I’d cover a few preparations that you should all be thinking about over the next few weeks as you prepare to sell your San Antonio home.

Selling your home in San Antonio

Spring cleaning – No one loves the thought of spring cleaning, but we all know that a house that sparkles will sell faster. Think of it this way, as March and April move along, many new homes will enter the real estate market. If you had two homes to pick from that were similar in shape, size, and amenities; which would you choose – the one that looked like the homeowner’s had kept it shiny and clean through the winter months or the one that didn’t? Now multiply that by the number of homes that are going to be on the market soon and you’ll see the big picture. Your home has to be better than all the rest. Get out the mop and broom, change the filters in your heater, pick up the trash that has blown into the flower beds (it’s been windy this winter), shine up the windows, and clear out the clutter. Let’s get that house sold!

Price right, price strong – You’re going to have a lot of competition in the coming months, so you’re going to want to be priced right from the start. Long gone are the days when you could test the market with a high price and hope someone would bite. Buyers are quick to dismiss a property these days if the price doesn’t suit their needs. In fact, pricing has become more important than ever because buyers are willing to wait out a seller. And once the price reductions begin, the buyers think they’re on to something and tend to wait even more, hoping the seller has only started their desperate reductions. It’s a dangerous game to play. Take a look a comparative market analysis, look at the current market conditions, and devise a marketing plan with your REALTOR®.

Offer more than expected – Sometimes, it’s the little things that make your home stand out from the others. Offering a home warranty or appliances (washers and dryers, media room equipment, refrigerators, etc.) as part of the listing can entice the buyer to choose your home over a similar home in the neighborhood. It’s also less you have to pack on moving day. Don’t think you’ll get a dollar for dollar value for these items though. Today’s buyer is being enticed to new home communities with large incentives and upgrade packages. Some of your biggest competition is going to be local builders who have the deep pockets to slash prices and give buyers more than than they expect. Although most home sellers can’t afford the kind of incentives a builder can, offering more than expected can be the deciding factor for a home buyer.

Get your home on the market!

It’s time to get that home on the market. So spruce up your home, contact us, and let’s get that home listed! We’ll work to price the home right, get the marketing machine in gear, and get the buyers into your home. From the minute the for sale sign goes in your yard to the day you sign off on the contract and hand over your keys, we’ll be there with you every step of the way.

image courtesy of janoma.cl

Free Market Analysis

Filed Under: Sell Your Home Tagged With: real estate market, sellers, spring

Multiple Offers on Your Home

March 11, 2013 By khproperties Leave a Comment

This past week has been a busy one around the office, with several of our listings facing multiple offer situations. Many of our agents’ buyers were facing them from the other side of the coin. This time of year, real estate activity typically picks up in San Antonio, but this past week seemed to be especially hot. Is this an indication for the year or just a relatively good week? Only time will tell, but let’s talk a bit about multiple offers.

Multiple offers are exactly that, when several buyers make an offer on your home and you’re sitting in front of two or more of them trying to make a decision on how to move forward – counter them, take one, or take none. Anything is possible in this situation, but typically, your agent will advise all of the buyers’ agents that we are in a multiple offer situation and to make their highest and best offers. By asking for highest and best, your real estate agent is signaling to all the other agents that we’re ready to choose one, so you better be sure your client is making the best possible offer for them.

Once the call for highest and best goes out, agents will get with their clients and usually write out a new offer, this one being the best they can possibly do. Once your agent has gathered all of those, they will present you with all the offers and show you which ones have which advantages and disadvantages.

There’s a lot to consider when looking at multiple offers. The first thing is to not pick the offer to accept based solely on price. If you’re selling your home for $150,000 and you have two offers; one for $150,000 and one for $155,000 – seems easy enough right? The higher price is alluring, but it’s the details of the offer that matter most now. Because buyers can ask sellers to pay for different items or ask for closing cost concessions each offer needs to be weighed by the bottom line – which offer is going to give you the most money and accomplish your goals in the time frame you need. A cash offer at a lower bottom line might be ideal for you if you want to move out of your home quicker. These are the nuances that you and your agent will be discussing.

The great thing about multiple offers is that they will often push the price of the home somewhat higher than the original price it was listed at. This is not guaranteed, but it is definitely common. Some sellers will then ask “did we price the home too low” and worry that perhaps they should have set a different listing price. The key here is to remember that the goal was to sell your home for the most possible. Based on your real estate agent’s research into the market a list price was agreed upon. At any given moment however, the market is influx (both up and down) and the true picture of the market value of a home is what a buyer is willing to pay for it. We must base our pricing on historical trends (recent sales), but buyers can push that price higher or lower if they decide – supply and demand. In the case of multiple offers, you have a high demand for a limited item (there’s only one house). This can push the price higher than it’s value because of the desire of one buyer over another to get what they want.

image courtesy of Luca Biada

Filed Under: Sell Your Home Tagged With: multiple offers, negotiation, sell your home

Are you reducing yourself right out of a sale?

February 28, 2013 By khproperties Leave a Comment

Death by a thousand cuts.

Todd Waller wrote a post titled “Overpriced Listings: Death by a Thousand Cuts” that speaks volumes about pricing your home for sale. Based in part on an article from MSN Money, Todd’s post mentions one of my favorite phrases – “death by a thousand cuts.”

No, we’re not talking about some sort of evil samurai that will come to your home if you make too many price reductions, we’re talking about the psychology of real estate. We’ve spoken about this before in “Listing your home is not a game.,” but it is always worth discussing again.

They’ll lower the price again.

Buyers are looking for a deal. With all the attention on the housing market over the past couple of years because of foreclosures, underwater mortgages, depreciation of homes, and in some cases, entire neighborhoods becoming modern day ghost towns; it’s no wonder. San Antonio buyers have been barraged with the news from California to Nevada and while we’ve suffered much less than other parts of the country, we too have seen changes in our housing market.

Because of the constant influx of this housing information, buyers are not looking to pay a dime more than they have to and they have become very good at taking the “wait and see” approach when they feel a home is overpriced. In many cases, their stance has been rewarded, as sellers who were desperate to sell lowered their price, month after month, hoping that they would finally hit the magic number that would bring buyers waiving their checkbooks in the air.

Eventually, someone will bite at the reduced price and the home will sell, but at what cost? As the price reductions begin, (and this is from personal experience with my own buyer-clients) the sellers begin to reveal their hand. One price reduction can actually lead you to a longer listing. Why? Buyers are waiting you out. They want you and your real estate agent to continue to lower the price, month after month, week after week. By the time they make an offer, the price has been reduced so low that the buyer walks away with a home for a great price and the seller walks away sore from having their home on the market so long.

A well priced home will sell faster than the others in the neighborhood – it’s simple economics. Once the buyers smell blood from the death from a thousand cuts, they will wait it out and make their move when the home is priced even lower than it should have sold for. The buyers are willing to move on to a different property if your home never meets their price needs.

There is only one solution to this game of cat and mouse: pricing the home according to the current market. Avoid overpricing your listing and you will increase your chances of selling. Let your neighbors price their house however they want, if you’re the best value on the block, your home is going to sell much faster than Mr. Jones’ home across the street.

The obvious question.

So if price reductions are so bad for sellers in today’s market, why do REALTORS® recommend them? In my opinion, there are two kinds of price reductions. Reactive price reductions and proactive price reductions. Although both can be employed by agents and their sellers to reduce the home’s price, one is definitely better than the other. By the way, I named these for my own use, so you won’t find them in the REALTORS® Handbook anywhere.

Reactive price reductions – These price reductions are based in reaction to the home not selling. The most common reason? The home was priced too high to begin with. Some sellers want to “give it a try” or insist that despite all market data and a solid comparative market analysis, their home is worth more. One of the toughest jobs as an agent is to convince a seller who won’t budge on price. I don’t blame them, everyone wants the maximum price for their home. The unfortunate thing is that there are real estate agents out there that will blindly take these listings, knowing full well they won’t sell at that price, but count on future price reductions to bring the home in line with market conditions and eventually sell. This hopeful attitude is neither good for our industry or for the seller and only does more damage to the real estate industry’s image and the seller’s bottom line. Although sometimes it is necessary to reduce the price, it is much better to work proactively than reactively.

Proactive price reductions – The housing market is ever-changing and as much as I wish I could, I can’t predict the future. Proactive price reductions take into account changes as they happen. Perhaps there’s been a news item that says your school district is failing, perhaps they just opened a toxic waste dump next to your home, perhaps the overall market is just slowing down – no matter what the cause, the effect remains the same; the pricing in your area needs to be adjusted. By keeping an eye on the market, I am able to offer clients the advice of where do we go from here as it happens, instead of waiting until the market has shifted again.

A necessary evil.

Price reductions are at times a necessary evil. No one wants to make them, but when a price reduction can be the difference between staying on the market for another few months or getting the home sold, the hard decisions have to be made. It’s never a fun conversation to have with a seller who only wants to sell the home and walk away with as much money as possible. Pricing it right from the start will alleviate some of the hard decisions and emotional and financial difficulty they bring.

Interesting in finding out what your home is worth in today’s market? Fill out the simple form below and we’ll get back to you to discuss your home’s fair market value.

image courtesy of Craig Murphy

Filed Under: Sell Your Home Tagged With: price, price reduction, selling your home

Ten Tips For Selling Your Home.

February 15, 2013 By khproperties Leave a Comment

Selling your home? Follow these tips.

As we move into the spring selling season here in San Antonio, it’s time to start thinking about how your home appears to potential buyers. Making your home stand out with some of these simple tips for selling your home will help attract more buyers and keep them from crossing your home off their list of potential houses. Remember, first impressions are the most important – so make sure your home impresses from the moment the buyers get out of their car and head inside.

Want to sell your home faster?

Clean it up – While this may seem overly obvious, you’d be shocked at the number of homes I have seen with my own eyes that didn’t follow this, the “Cardinal Rule” of home selling. Things to look out for? Kids clothes, shoes, tracked in dirt, dusty vents, and toilet seats in the open position (no one wants to look at your toilet bowl, no matter how clean it may be).
Update it – While most home sellers aren’t looking to spend a fortune to ready their home, there are a few quick fixes you can do. Touch up/re-paint worn surfaces, replace old faucets, add a few inexpensive curtains to replace metal blinds, change lighting fixtures (old brass and gold make your home look dated in today’s market), and re-stain or re-paint the front door and add new hardware. None of these will cost a fortune, but they can change the age of your home in an instant.
Curb appeal – You’ve heard this phrase a lot since HGTV came along. Overgrown trees, bushes, and grass are the first things that should be fixed. Plant some flowers, rake those leaves, clean those gutters! Buyers are known to pull up in front of a house with their agent and say “no thank you” without ever stepping foot inside. Don’t let your house become the scene of a drive-by.
Organize and remove – You’re moving anyway, right? Why not remove some of the junk from your closets, pack away the winter clothes, give the old toys to Goodwill (it’s tax deductible) – cleaning out the extras make your home appear neat and clean. Buyers tend to think if your home is organized you’re more likely to have taken good care of the home while you lived there.
Lighting – In addition to changing out some of the old fixtures, be sure that all the lights have working bulbs in them. Clean the shades and glass covers and make the light shine through. Raise the blinds, throw open the curtains and let the sun shine in. A little sunshine spells a lot of happy faces. Turn on all the lights before a showing – don’t leave the buyer in a dark corner of the house.
Smell – One of the stronger senses in the human body, smell can sell. You don’t have to make it smell like fresh baked apple pie, just don’t make it stink. Avoid cooking foods with strong odors, open windows as often as possible for fresh air, use candles or air fresheners to scent the home, and please, please please…clean the cat box!
Price – In any market (especially the current one), price is king. Price will determine whether a home is seen or not seen. The laws of supply and demand determine how buyer’s will react to your price. If you’re overpriced, forget it. If you’re priced right your home will get noticed. Talk to your REALTOR® and review a CMA (comparative market analysis) with them.
Showing availability – If you put a million conditions on how and when your home can be shown, you’re risking losing potential buyers. You want (and need) your home to be seen for it to be sold. Having stringent rules about viewing times, advance notice, or denial of appointments can all lead to buyer’s looking at another house in the neighborhood. Have your agent use a lockbox and a showing service (we use Centralized Showing Service here in San Antonio) and let other agents show your home whenever possible.
Marketing – Today, many buyers are using the internet to find a home before ever contacting an agent. We shop for homes in our pajamas, then hit the streets to look at them. Most agents have some form of internet marketing, but look for one who makes a bigger effort than most. Although agents will tell you can email your listing to 10,000 people, most of it winds up in spam folders. A blind email to a random stranger probably won’t sell your house. Getting in front of home buyers through the big real estate sites along with blogs, social media, and visual media sites will help buyers find your home. Making sure your agent uses all available photos (25 in San Antonio’s MLS) and media will help buyers take a look at your home.
Extras – Offering any incentives or extra inclusions can help sell your home. Don’t want to move the stainless steel refrigerator? Tell the buyer’s they can have it. Don’t need a riding mower where you’re heading? Make sure the agent includes it in the listing. Residential service contracts (also known as home warranties) are also a great part of any listing. Most buyers ask for one in their offer, so why not attract them with an offer of one yourself?

photo courtesy of striatic

Filed Under: Sell Your Home Tagged With: advice, sell your home, tips

Listing your home is not a game.

February 1, 2013 By khproperties Leave a Comment

My biggest fear.

When looking through the San Antonio MLS listings on the market, I sometimes get a bit scared by what I see. It’s not 100% of the listings I see, in fact, it’s a small percentage, but it scares me nonetheless.

What is it that I see? Listings that seem to be a game to the seller and their listing agent. Price fluctuations all over the charts. Poor photos or a complete lack of photos. People not taking full advantage of the MLS system the San Antonio Board Of REALTORS® provides us. The even bigger part of this fear? That the seller doesn’t know their home’s sale has become a game.

The strategy of selling your home.

The “let’s see how this price works out” theory of real estate seems like a huge gamble to me. Yes, we all want to get top dollar for our home when we sell, but when I see price fluctuations on a consistent basis and I’m representing a buyer for your home, guess what I see? An opportunity. Whether you had your agent overprice your home or your agent told you it was worth much more than it is, all I see is a chance to use my knowledge and skill to get my client a better deal.

Most overpriced homes wind up selling for less than they’re worth, because a good agent knows how to use this to their advantage. Do you want to let someone have an advantage over you when the price of your home in on the line? I’m guessing the answer is a resounding “no.”

Pricing your home inline with the market can get it sold faster, for a price closer (or above) your asking price, and remove the anguish of waiting, waiting, waiting, and hoping someone will make an offer on your home. And the constant price changes only add to your stomach ulcer.

I know this, because I did it when I sold my first house. I lived in a hot Los Angeles market and I tried to play the game. I waiting, waited, waited – and wound up feeling sick half the time. In the end, I did sell my house for a nice profit, but these were the days in the run up to the market crash. The days when homes in California were appreciating at alarming rates (mine at 30% over three years). I’m sure you’ve seen the news – those days are gone.

“Don’t worry, they’ll lower their price again.”

Imagine we’re looking for a home for you to buy. I show you a great home that you love…and the price looks good, so we decide to dig a little deeper with the intent of writing an offer. I pull the comparables in the area and we sit down to discuss. What do you think when I show you the price history on the home?

You’re probably thinking exactly what I’m thinking. They’ve made a price cut every month of x amount of dollars. If we wait another month, they’ll do it again. We can buy this house later at a better price. That day may or may not come, but that seller’s decisions on pricing have just made us move on. They lost their buyer.

Now back into your shoes as a seller. Do you want that to happen to you? Do you want a buyer who is eager to buy your home say, “We can wait this one out?,” and in the meantime possibly find a home other than yours? Do you want to delay the sale of your home another day? Month? Year? Of course you don’t.

It’s that easy.

The solution couldn’t be simpler. Price your home right. Price it to sell. Price it to get people in the door and then wow them with the rest. Some people suggest underpricing your home in order to create “buzz,” but it’s not necessary. Price it right and it will generate buzz. Price it right and you could wind up with multiple offers, no matter the market. Price it right and get it sold so you can put your mind at ease and move on to your next home.

What about pricing it to allow a cushion for negotiations?

In today’s climate, buyers are being more savvy when it comes to offers. Some sellers and agents have a theory of pricing it slightly above market value in order to allow for a cushion in negotiations. You don’t have to accept low offers. You should look at every offer, no matter how ridiculous and weigh it based on your situation, but if the offer is too low, counter it. Don’t throw it away – always counter the offer.

A lot of buyers like to test the waters before making a more serious offer. They know they’ll pay more for the property, but why should they if they can get away with a lower price. I know this for a fact, because my clients do it and I help them do it all the time. When I work for a buyer, my goal is to help them, not the seller.

Pricing with a cushion for negotiation is a tactic that a good agent can see a mile away. We know it’s priced that way, so we skirt right around the issue and offer fair market value for it with our buyer-clients. If you want to stick to your higher-priced guns, I’ll recommend my buyer keep looking.

Want to know what your home is worth in today’s market? Get a free market analysis of your home today.

image courtesy of anne.oeldorfhirsch

Filed Under: Sell Your Home Tagged With: fair market value, market price, sell your home

One photo does not sell a home.

January 23, 2013 By khproperties Leave a Comment

Doing the research for a listing appointment.

One day I received a phone call from a woman who wanted to list her home. I listened to her concerns, asked her some questions, and immediately jumped onto our MLS (multiple listing service) to start my research. As I pulled up the listing (it had been previously listed with another agent), I found something that upset me: there was only one photo of the home on the MLS and it was a poorly taken photo at that. The description of the property was about as vanilla as you can get as well and didn’t even take advantage of all the space we’re given as agents to write about the home.

So I finished all my research and went over to the appointment the following day. I approached the building (it was a condominium) and saw exactly where the photo was taken from. I went inside and got the grand tour. Now here’s where I got really upset…this place was gorgeous!& It was large, had tons of natural light, new flooring, and was in an excellent community (they have two pools, wonderfully landscaped grounds, and even a little herb garden for everyone’s use). None of this was expressed in that solitary photo I saw the day before.

If the local MLS lets us use more photos, we owe it to the buyers and sellers to use them all.

Our local MLS allows each agent to put up to 25 photos in their listings. Twenty five! And this listing had one. Of the front of the building. You couldn’t even tell which door was the unit being listed.

I think what frustrates me the most when I see listings like this, is that it means the agent is not doing everything they can to help this seller get the best offer on their home. We all look at homes on the internet (I do it too!) and use that as a great starting point for finding the perfect place. I know I’ve passed by on some simply based on photos (or lack thereof). We are visual creatures and thanks to the internet, video, digital cameras, etc.; we can have instant gratification while looking for houses in our pajamas. If the buyers are out there looking at photos, shouldn’t we as agents want to give them all we can? I certainly think so. It’s in our best interest and more importantly it’s in our clients best interest.

Want to see other agents’ takes on bad MLS work? Just Google “bad mls photos.”

photo courtesy of nadbasher

Filed Under: Sell Your Home Tagged With: marketing, mls, photos, real estate, sell your home

Can’t sell your home? Try renting it out.

December 13, 2012 By khproperties Leave a Comment

If you’ve had your home listed for sale and it just doesn’t seem to be selling, there’s typically a few reasons. Price is always a major factor and even though we’ve seen an uptick in sales and prices, not every neighborhood is performing as well as we’d like to see. When you can’t get the price you want or need for your home and you’re thinking about throwing in the towel, perhaps it’s time to consider leasing your home instead of selling. Renting your home can be a profitable experience and help you hang onto your home until the timing is better so that you can reach your goals.

Becoming a landlord isn’t for everyone. You’ll need to look at your financial goals and the local rental market. Although rents have been running high for quite some time now, you’ll want to figure out how much your home costs you to keep each month – mortgage payment (interest and principal), taxes, insurance (you’ll pay a higher rate than you do as an owner-occupant), HOA fees, and repairs and maintenance. Unless you’re really bold, you’ll also want to hire a property manager. We recommend hiring one for the simple fact that the Texas Property Code can be a complicated pile of requirements if you don’t stay on top of it and learn all the new rules and regulations as they come along – and not following the letter of the law can land you in serious legal hot water.

We have several property managers here at Kimberly Howell Properties and an office staff that assists with their needs throughout the day as well. We also maintain a core of professional service companies to handle those late night emergencies in addition to regular everyday maintenance.

So is renting right for me?

As mentioned previously, it’s all about the numbers. Take a look at your home’s true cost each month. Sit down with a qualified property manager and go over those numbers. They’ll help you understand the local market and what your home will be worth on the rental market. They’ll discuss the fees of property management (or the cost associated with doing it on your own if you’re experienced and ready to take on that challenge). They’ll talk to you about the estimated money you should be prepared to have on hand for repairs and upkeep. The goal is to make more in rent than you will spend on the home’s true cost, but don’t be discouraged if it’s a wash or even a small negative, because if you don’t rent it out, you’ll still be paying most of those costs on your own anyway. Sometimes it’s better to take a small loss while renting your home and waiting for a better time to put your home on the market for sale.

Have questions about property management and renting your home? Fill out the form below and one of our agents will contact you.

Filed Under: Sell Your Home Tagged With: lease, option, property management, rental, sell your home

What’s my home worth? The “unzillowable” factor.

December 7, 2012 By khproperties Leave a Comment

Read an excellent post about home valuation this morning by Greg Fischer that I think every home seller should read. The basis of the post is the term “unzillowable” (in reference to Zillow’s automated home valuation model, aka the Zestimate) and is probably the best explanation I’ve ever heard of the various home value estimate websites and models.

When sellers look online and see the various home values in their neighborhood (or of their own home) and take that as the word of law in seeking a listing price to sell their home at, they often find themselves at odds with their real estate agent and the current buying public. While the estimates can be a gauge of the general value, they are not an absolute and should never outweigh the valuation of an experienced real estate agent. There are just too many factors to take into consideration in any given town, neighborhood, or street. While the tech companies have done a lot to improve and add to their algorithms, they can never replace the nuances that are only visible to the person viewing the home or the local knowledge of community issues that might affect the home’s price.

Despite the inaccuracy of many home value estimates of the computer generated kind, there is actual value in them. They are a great starting point…not for a price, but to start the conversation about what the home is worth in today’s real estate market. Conditions and variables that can only be seen in person should be taken into account as well as the recent sales data and trends in the local area. This is what real estate agents do everyday for their clients.

Next time you want to know what your home is worth, contact us, and we’ll be happy to help show you your home’s true potential value.

image courtesy of jared

Filed Under: Sell Your Home Tagged With: home valuation, market value, what's my home worth, zillow

Seller’s Disclosure Notice: A Deeper Look

November 5, 2012 By khproperties Leave a Comment

When selling your home in Texas, one of the forms you’ll be asked to fill out is the Seller’s Disclosure Notice (TAR Form 1406). The Seller’s Disclosure Notice is designed to provide information to potential buyers regarding the property’s condition and the seller’s awareness of those conditions (as well as any repairs they may have done to fix prior adverse conditions). There are several exclusions from the requirement to provide the notice; cases of bank repossession (where the bank is the seller and therefore has no knowledge of the property’s condition), government agencies, trustees in estate sales…but as long as you’ve lived in the home (or used it as an income property), you’re probably not exempt. Let’s take a look at the Seller’s Disclosure and break it down into its component pieces.

Section 1. The Property has the items marked below. This section delineates what items the property does and does not have. Each item listed is followed by three checkboxes – Y, N, and U (Yes, No, and Unknown). Some examples of items listed include ceiling fans, fences, hot tub, smoke detector, and window screens. In addition, the second half of the page has more items, but this time the items require additional info. Some examples of this include how many A/C units the home has and whether they are gas or electric powered and whether or not the garage is attached or detached from the home.

Section 1 continues on the second page with several specific questions: who is the water supply provided by, was the home built before 1978, what type of roof is there and what is its approximate age, and whether or not the seller is aware of any items in Section 1 that are not i working condition, have defects, or are in need of repair (and if check “yes” then you’ll need to elaborate.

Section 2. Are you (Seller) aware of any defects or malfunctions in any of the following? The question says it all – if there’s a defect or malfunction that you’re aware of, you need to disclose it. This simple checklist asks you to mark Y or N (Yes or No) and then if you’ve checked Yes on anything to explain.

Section 3. Are you (Seller) aware of any of the following conditions? Again, a list of Y or N checkboxes asking you, the seller, about anything you might be aware of. If you answer Yes to anything, be prepared to explain it on the next page.

Section 4. Are you (Seller) aware of any item, equipment, or system in or on the Property that is in need of repair, which has not been previously disclosed in this notice? Think of this as a catch-all – if the Seller’s Disclosure Notice didn’t cover it yet, you need to address it here. This prevents everyone from saying “oh, I didn’t know I had to disclose it because it was not on the form.”

Section 5. Are you (Seller) aware of any of the following? This section consists of nine questions.

Room additions, structural modifications, or other alterations or repairs made without necessary permits or not in compliance with building codes in effect at the time.
Homeowner’s associations or maintenance fees or assessments.
Any common areas co-owned in undivided interest with others.
Any notices of violations of deed restrictions or governmental ordinances affecting the condition or use of the Property.
Any lawsuits or other legal proceedings directly or indirectly affecting the Property.
Any death on the Property except for those deaths caused by: natural causes, suicide, or accident unrelated to the condition of the Property.
Any condition of the Property which materially affects the heath or safety of an individual.
Any repairs or treatments, other than routine maintenance, made to the Property to remediate environmental hazards such as asbestos, radon, lead-based paint, urea-formaldehyde, or mold.
Any rainwater harvesting system connected to the Property’s public water supply that is able to used for indoor potable purposes.

As usual, if you check Yes on any of these items, you will need to explain them.

Section 6. Asks whether you have attached a copy of the survey or not. I highly recommend you do attach one if you have it. This often saves time and money for both buyers and sellers.

Section 7. This section asks you to report any prior inspections within the past four years. These could include pest inspections, structural reports, or home inspections. If you’ve had someone hand you a written report about your home in the last four years, this is the place to disclose it (you’ll also need to provide copies of the reports).

Section 8. A list of checkboxes detailing what current tax exemptions you currently claim on your property.

Section 9. If you’ve ever made a claim on your homeowner’s insurance and did not use that insurance check to make the repairs related to you claim, you’ll need to explain in this section.

Section 10. Do you have working smoke detector’s installed in accordance with Chapter 766 of the Health and Safety Code? This section is often skipped by homeowner’s because they have no idea what Chapter 766 defines…which is why the printed the section that regards smoke detectors just below this section.

Utilities Although it does not fall within a specific section number, the last page has Additional Notices to Buyer which requests utility information from the seller, the name and number for each of the utility services that currently supply your property.

That’s all there is to it, but there is often a lot of confusion over the Seller’s Disclosure Notice. As agents, we are not allowed to fill in the form for our clients (the notice must be filled out by the seller). As the disclosure will be attached to the contract, it is important that you (as the seller) fill it out completely and to the best of your knowledge. Now is not the time to hide something from disclosure – as it may come back to bite you later. Full disclosure is of the utmost importance and you should warn your real estate agent of any potential problems you may know about it your home in order to better prepare for its sale.

Filed Under: Sell Your Home Tagged With: contract, forms, law, real estate, sellers disclosure notice, texas

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