Inside Property Presentation

Getting your home ready to sell.
There are 12 articles written on this subject. The most recent 10 are listed here:

2006 Remodeling Cost vs. Value Report How NOT to Sell Your Home Remodeling: Cost vs Value 2005 Begonias in the Garden Remodeling: What's it worth?

The joys of satisfied real estate clients This just in from Inman News: Home Staging AOL Real Estate: Before and After Home Staging Preparing to Sell: Part I Preparing To Sell in the Spring Surge

You will find a complete Index of Articles by Category and by Month in the Archives.

October 10, 2007

Here's a note I received from a recent listing client that settled on their sale October 1st:

Dear Merv,
Many thanks for a job well done! From taking and editing excellent photos, creating an appealing virtual tour, maximizing the places our listing could be seen, through the negotiations, you made a significant difference in selling our house.

We were expecting to lose money, but are glad that didn't happen. It is a paradox to think that an average Realtor would have not even sold it yet, but would collect several thousand more when the house finally did sell. Your visionary sales/consulting model is a "win-win" for all of us.

Finally, the quick sale will most importantly allow us to be a family again - with Dad home at night and Mom keeping her sanity! For that we are most grateful.

Please accept a bottle of my favorite wine ever - I brought 4 boxes back from Germany and want you to have one as a token of our appreciation for your hard and smart work.

With gratitude,
The Davison family - Erin, Mark, John and Eleanor

To the Davison family: it was my pleasure serving you...

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May 7, 2007

Timing is everything:

Get the most out of your home stager

Tips for a timely, profitable sale
Monday, May 07, 2007
By Dian Hymer

Waiting until the last minute to get your home ready to sell is bound to make your move more stressful. It could also result in a lower sale price if you forego properly preparing your home for sale.

The extent to which sellers put time and money into fix-up-for-sale work varies from one area to the next. In the San Francisco Bay Area, so many sellers stage their homes for sale that you could be at a disadvantage if your home is not staged. In other areas of the country, sellers do virtually nothing to ready their homes for sale.

...

The staging fee could be as minimal as $75 or $100 for a consultation on how to rearrange your furniture. Or it might run up to $10,000 or more to completely furnish and stage a vacant, 3,500-square-foot house.

My local experience is that a 2 hour consultation could be $200 to $250. A complete staging that includes re-arranging furniture and personal items could be as much as $750 to $1,000. If you can take direction and do the work yourself, many stagers will give you an itemized list of what needs to be done. The bottom line is it will be money well spent to get an objective opinion. Most of us selling our homes cannot be objective.

Note: The Inman article may be by subscription only.

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I have written several articles about preparing your home for sale; from providing an attractive curb appeal to freshening the interior with paint and new carpets. Making your home more desirable to potential buyers in this market is essential to be competitive. Home staging has become a robust sub business to the real estate industry. Staging is NOT interior decorating. It is about using what you have and adding (perhaps) a dash of inexpensive decorator items to make you home more inviting and and appear to be more spacious. It is NOT about the way you and I would necessarily live in our homes. It is about making an emotional connection with the potential buyer. Here are some excerpts from AOL Real Estate's Stager Gallery providing a series of before and after pictures to drive home the point (titles are links): Can you guess what is in this container and what it may have to do with the shelving? → →

A Professional Home Stager at Work
What does it take to sell a home quickly these days? You might need something called home staging. The goal is to create a home interior that looks brighter, bigger and more inviting to potential buyers.

Browse these before and after shots and see how one professional stager uses simple techniques to enhance a home's appearance.

Unclutter a Messy Room
BEFORE STAGING: Big or small, messes make it difficult for buyers to imagine living there. Always leave your home spotless so buyers see your home at its best. When they view other houses with clutter, your place will stand out as the bright spot.

...and so on. There is a series of 18 pictures showing before and after each staging tip.

To some of us, staging is just using a little common sense with an artistic eye. For those of us that are artistically challenged (or common sense challenged for that matter), a professional, accredited stager can be hired to help us out. I know many agents that provide a quantity of staging help to their listing clients as part of their services. I include it as an option when designing a selling plan for my clients. Many new home builders are now offering home sale assistance (including staging and virtual tours for marketing) to their buyers that are having difficulty selling their homes to buy the new one.

Speaking of new home builders, model homes are lavishly decorated to make that emotional connection to buyers: I can live in this home, it's warm, cozy, friendly and inviting. Same principle with staging without the lavish expense.

My opinion of the AOL presentation
What I find helpful in this AOL presentation is the quality of the photos, the before and after shots and the short and to the point descriptions of the transformations. Great visual story. What is lacking is any conclusion about cost (or range of cost) or the return on investment. As a consumer, I am convinced that staging can be helpful but, I also want to know how it impacts my wallet. I'd also like to see references to real stagers that I could contact (could this be ad revenue?). The other thing that I believe is very distracting are the constant ads for home mortgages. I know AOL is shifting their business model to be ad revenue driven but, it is still distracting. I am probably tainted by real estate Blogs that don't have heavy advertising. I'd venture to say maybe 20 to 25% of the screen space are ads, 30% is the featured content and the remainder consists of a plethora of links to other AOL content. Lastly, this particular piece does not have a reference to an author that might add credibility to the staging proposition. Others we will feature do have named authors.

So there you have it. Our first AOL Real Estate presentation and my short critique. Visit the article on AOL and then come back and provide your comments.

Note: The reproduction of AOL copyright material is pre-approved by AOL.

After Thoughts:
Here are links to stagers I know:
We Prep Homes
StagedRite
and, more helpful references...
Design and Staging Directory
StagedHomes.com
six ELEMENTS
nest
Hart and Associates
HOLTmodern
Real Estaging
DEKORA

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April 9, 2007

A recent article I published Preparing To Sell in the Spring Surge was about a strategic mindset as a seller (you know ... the 5 Bs). This article is about the tactical side of preparing to sell.

In my experience over the last couple of years, I've met few homes that didn't need some work before going on the market. I'd say conservatively 7 out of 10. The biggest problem with sellers is that they don't look at their home through a buyers eye. This one simple fact will prohibit a home for selling at its highest and best value, or worse, not at all.

Just a couple of years ago when the market was red hot, a seller could put a dog house on a 10 square foot lot on the market and it would attract multiple contracts in a matter of hours. Not so today. Buyers simply have too much to chose from. If your home is not in tip-top shape, ready for a buyer move in, you simply will not sell. Unless, of course, you make it a bargain. Even then, many buyers just don't want the headache of having to do spruce up work themselves. Here's what I see in many homes we examine before taking a listing:

• Dirt: Plain and simple, a dirty home is going to turn off buyers. Professional cleaning top to bottom is a low cost investment that returns many times over its cost. For a medium range home the cost could be several hundred dollars.
• Worn, stained carpets: Turn off number two. Occasionally professionally cleaning them will help but, cleaning won't change the wear factor. I recommend replacing all carpet with a medium grade, neutral color with the best pad money can buy. About $23 to $25 per square yard will be sufficient. We've done this many times on medium priced homes and it makes a world of difference. On a higher end home, a more expensive solution is in order to match the higher price range.

• Paint: This ranges from hideous color combinations to just looking worn out. This is true for both inside and out. A freshly painted home not only looks good but could get rid of many years worth of living smells at the same time. Again, neutral colors are best. Don't forget the ceilings. And, hire a professional. Very few of us will do a quality job if we try to skimp and do it ourselves. Don't forget to fix the wood rot outside too. If it doesn't look well maintained all kinds of red flags go up in a buyers mind leading to: "What other problems might there be that can't be seen?"
• Smells: Cooking, smoking and animal smells will cause a potential buyer to turn around at the front door and run away as fast as they can. In fact, I take a buyer client out of a smelly home before we even make it across the threshold. For gawds sake, don't smoke in the house (especially after replacing carpet and painting). Got dog hair floating everywhere? Gotta fix it (as in get rid of the hair and don't let it come back). Nothing, absolutely nothing, is worse than cat urine. It will destroy a home, not only carpets but wood floors as well; even the sub-flooring. There are several neutralizing agents available that may mitigate this issue but, I have found none are 100% effective. If it gets into the sub-floor, ouch! If it can't be totally mitigated you have just narrowed your buyer population to a minuscule number and your price must be adjusted significantly downward to compensate.
• Clutter: Any of us that have been in our homes for more than just a few years have more stuff laying and hanging around than we probably need or use. That neat warming tray gift from Aunt Grace is a keepsake but never used. Buyers want to imagine how they will live in your home. Your stuff falling out of the closets and kitchen cabinets that have not 1 square inch of space left will certainly discourage a potential buyer because the message you send is "there is not enough space in this home." Solution: get rid of it. Throw away as much as you can tolerate and pack and store somewhere else the things you can't (like the warming tray you never use).
• Landscape: Curb appeal. First impressions are everything. Mow, weed, trim and get some seasonal flower color for your home as seen from the street. In fact, sellers need to walk out to the street and look back at their home. Would you buy this home if you had lots of choices? You have to be brutally objective.

• The details: How about the outside metal fixtures? Are they discolored? Falling down? Tarnished? How much better would it be if you replaced those weathered brass fixtures and trim (like front door kick plates and door knockers) with bright shiny new ones? I say it is essential! Impression. Impression. Impression. Same with a weathered, worn wood deck. If it is beyond sanding, re-staining and/or sealing, it should be replaced. Garage doors? If you are like me, garage doors typically attract neglect. If they are rotting, the best thing to do is replace them. We have had good results with aluminum replacements painted to match the house trim. Short of total replacement, I have replaced just the bad panels if they are of a standard style. I've done this on my own home.
• The kitchen: Chances are that if your appliances are more than 10 or so years old, replacing them adds real value to a potential buyer. Especially, if you have cooked on grease and stains that cannot be removed. Those Formica or laminate counter tops? Synthetic or stone counters are expected, especially in newer homes that you may be competing with.

This sounds like a lot and maybe it is. If your home is in "like new" condition you will have a better chance of selling in a shorter time for the highest price possible. We are great at marketing our listings to attract buyers but, your home has to "sell" itself.

From our experience, a 2,000 square foot home that requires inside paint, outside trim, new carpets cleaning, decluttering and some landscape spruce up will cost in the $10,000 to $15,000 range. A 5,000 square foot home we listed required all of the same plus new medium grade appliances, new interior/exterior door hardware and hardwood floors refinished and the price tag came in at about $32,000. The questions: Is it worth it to do all this? Will I get my money back? The answer: What is your cost if it doesn't sell. A lot of this is what I call "deferred maintenance." If you are not maintaining while you own it, you will need to spend the money before you list to attract a buyer. The market is brutally competitive! As a seller, you want to be a "top seed" (like in tournament rankings).

These are only the major items to consider. There may be others. All homes are unique in some way and may require other work. An objective evaluation would be in your best interest. Preparing to Sell: Part II will be about the next step: Making the emotional connection with a buyer.

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March 31, 2007

The Washington Post published a good article this morning in the Saturday Real Estate section that every seller should read. Here's an excerpt:

The Science Behind the Sale
Patience and Compromise Prove the Winning Formula

By Sandra Fleishman
Special to The Washington Post
Saturday, March 31, 2007; Page F01

Nationally, there's more than a six-month supply of existing homes for sale. In some parts of Northern Virginia, the inventory is more like 8 or 10 months.

So how are successful sellers doing it? The basics triumph in a buyer's market, real estate agents say. Price, location and condition are uppermost.

And sometimes it just takes time.

Read the full article ...

The article continues with examples of four sellers in the Metro region and their stories.

Yes! Location, condition and price are key. And, being patient and willing to compromise are absolutely essential. In these times of market uncertainty (hmmm... not really uncertain, it IS a buyer's market), sellers need to be a market leader, not a follower. Another way to put it: there are sellers all around you that will be lowering their price to sell similar homes. Like it or not, they are the leaders and what they do has a significant impact on your selling position.

The post article reminded me of one I posted way back in November of 2005 when the signs of a cooling market were predominate. A note to my clients about the market is just as relevant today as it was 18 months ago...

Friends and clients,
This is the first of periodic market updates that we will provide you in this time of market uncertainty.

Attached are (current) market statistics for Fairfax (fx), Loudoun (lo) and Prince William (pw) Counties. You probably heard us talk about the sluggishness as well as reading about it in the local news. It's real. There are more listings available to buyers than any time in recent history. If you don't follow the frequent articles in our blog, you should. We probably do more market research than anyone else and give our opinions in a straightforward, unbiased manner.

What this means:

• Be realistic. Buyers are now buying the best for their money. Either show better for the price or reduce the price. Investing in paint, new carpet and staging when necessary yields a big return on investment. Also, Location, Location, Location are always the top 3 real estate priorities.
• Be flexible. Buyers are being more selective and expect more from sellers in price negotiations and perhaps subsidies for closing costs.
• Be logical: This is market dynamics. What your neighbor sold for last spring or last year has nothing to do with market value today.
• Be professional: Generally, work on your home done by a professional will be worth more in the long run. Buyers will be picky.
• Be patient. We can't know what the future may bring but we do know this:
  • The Washington Metro area economy is among the strongest in the nation. Jobs are being created at a rapid pace.
  • People moving to the area for jobs will need housing.
  • The market was over heated the last few years and it is now moderating to "normal", whatever normal is.
  • First time and "move up" buyers are looking further away from the Beltway because prices tend to be lower and quality of life better.
  • 25% of the homes sold in the last two years were by "investors" buying and flipping. Those that didn't flip soon enough are now stuck. That inventory needs to dissipate.
  • And, all the "real estate bubble" talk is feeding on itself.

Read the full article ...

I summarize this with the 5 Bs for selling your home:

1. Be realistic
2. Be flexible
3. Be logical
4. Be professional
5. Be patient

... and, DON'T B GREEDY! You will B utterly disappointed.

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December 5, 2006

The annual Cost vs Value report was published December 1st by REALTOR® Magazine in cooperation with Remodeling Magazine. The report covers 25 popular projects in 60 cities.

Prices for most remodeling projects continue to climb, while the recoup value of improvements at resale is declining to levels last seen in 2002. These are the findings of Remodeling magazine's 19th annual "Cost vs. Value Report-the eighth prepared in cooperation with REALTOR® Magazine. None of this should come as much of a surprise to you: This year's recoup values confirm the housing slowdown many parts of the country are experiencing.

With both home-sale and remodeling activity at record levels in the last five to six years, some cooling is inevitable. Indications are that the current downturn represents a return to "normal levels. (See "No cause for alarm")

Read the REALTOR® Magazine overview at Making Home Improvements Pay. Summary data is included for major regions of the country.

The Washington area is one of the 60 cities/metro areas covered. Down-loadable PDF reports for each of the 60 cities can be purchased for a nominal fee at Remodeling Online.

In the DC Metro area, a two-story addition returns a whopping 105% and a fiber cement siding replacement for tired vinyl or aluminum returns nearly 99%. A home office remodel returns the least at 83%. On average, The DC Metro area has higher returns than national averages. These are taken from the purchased Washington report.

It is often more beneficial to remodel and/or upgrade an existing home instead of trying to sell and buying into the features you desire. Especially if you otherwise love your house and neighborhood. The only caution is to be careful not to over do it compared to the surrounding area. You may have a hard time selling and get even less when and if you ever do want to sell.

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April 20, 2006

We have written a few articles about Property Presentation to help get sellers top dollar in the shortest period of time. Ardell, writing for the Rain City Guide, published this article last night (it's a kick!):

Top Ten Obstacles to Selling a Home April 19, 2006

In David Letterman style, let’s list the top ten things that make a buyer say “let’s get out of here!!”, when I am showing a house.

I can think of at least 10 more. Thanks Ardell for bringing us back down to earth!

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February 20, 2006

The National Association of REALTORS® and Remodeling Magazine issued their 2005 Cost vs. Value Report back in December (we are a little slow to catch up). The survey found that the top 4 investments are upgraded kitchen, remodeled bath, new siding and window replacement. Here is an excerpt from the report:

FEATURE: 2005 COST vs. VALUE REPORT

Remodeling's Payoff

The annual report compares construction costs with resale values in 58 markets.

The "Cost vs. Value Report," published each year in conjunction with Remodeling magazine, gives you a city-by-city guide on what various home projects will pay back at resale. This year’s report features data for five more markets than last year* and a new project—a mid-range home office remodel.

...

Since 2002 four projects, reported each year since 2002, have shown the greatest return at resale on a national basis. Two of the projects, siding and windows, reflect the importance consumers place on curb appeal and insulation; the others, a kitchen and a bath project, are consistently high performers in most markets.

The full article can be read here. The print publication has these projects calculated for all 58 major metropolitan areas of the US.

This is timely because we have a few clients considering upgrades as a way to be more competitive when they are ready to go on the market. The key question is: What is the market value without the upgrades versus with them. If there are unrealistic expectations on the first part of this question (current market value) then upgrading won't matter.

In the Northern Virginia market, buyers are consistently looking for bells and whistles in a home, mainly in the kitchen: upgraded cabinets, granite counters and stainless steel (or maybe black) appliances. If you are selling a home in the upper brackets (north of $500,000) without these, it is hard to compete since so many homes built in the last few years had these amenities added during construction. With the inventory of homes for sale at such a high level, you either have the amenities or drastically lower the price to compete. It's a tough call.

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September 5, 2005

Onich Hotel Gardens, Onich, Scotland

The single most impressive feature of the UK is the fascination and use of flowers everywhere. Flower gardens, window boxes and hanging baskets give properties old and new an attraction that is extremely appealing.

We advise our clients to spruce up their landscape before marketing their home. The objective is to present a colorful freshness and a well cared for look that attracts buyers. Cut flowers inside the home provides the same effect. It is relatively inexpensive and it works!

Click the picture for a close up view.

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September 4, 2005

One of the important considerations before making the remodel decision is: what will the return on investment be when I sell? "Some remodeling projects can pay big dividends to sellers at resale."⁽¹⁾ Others may not. The seventh annual Cost vs. Value report recently published by Remodeling and REALTOR® magazines lists nine (9) of the most popular remodeling projects and compares the cost to the additional resale value added to a home in 53 major markets.

The following remodel projects included in the publication are:

• Major kitchen remodel
• Master suite addition
• Minor kitchen remodel
• Bathroom remodel
• Bathroom addition
• Attic bedroom/basement remodel
• Sunroom or deck additions
• Window replacement
• Siding or roofing replacement

The study reports that either a bathroom remodel in a mid-range valued home or a deck addition return greater than 100% of the costs in the Wasington DC Metro area. In general, according to this report, returns are greater in areas that experience rapid price appreciation. An independent analysis of the survey reports an error rate of ± 5-10%. While this study can serve as a general guide, there are many other considerations such as:

• Remodeling may be an alternative to selling if you are simply looking for larger space or more comfortable living conditions.
• Spending significant amounts on remodeling before a sale may not be worth it. Lower cost alternatives such as paint and/or new carpeting may be better.
• Your homes location, general condition and market characteristics are important elements in making the remodel decision.

When we work with sellers, we get to these answers through our needs assessment up front. If you love your house, love your neighborhood and have many close friends nearby, remodeling may be a better alternative to selling.

Contact us for a complimentary copy of this new report or for a discussion of our needs assessment. We can help guide you to the right decision.

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(1) From the 2004 Cost vs. Value report published by Remodeling and REALTOR® magazines.

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