It is my pleasure to introduce my readers to Judy B. Leerer, a well-known realtor and home staging professional, offering Sellers some great advice on getting their homes ready to shine in the crowded real estate marketplace.
Judy writes:
With all the current inventory on the market, your goal is to make buyers think that your house is their best choice. And it doesn’t always have to do with new kitchens and baths.
Remember all the little things that annoy you- the leaking faucet, the squeaky door, the broken window pane, etc? It’s time to address those items because the details are what matter.
You’ve lived with some of these things for years (probably) and have adjusted to them.
To a buyer they become reasons to not buy your house- or reasons to unjustly discount it!
A leaky faucet to a buyer can mean you need a new faucet when it could actually meanyou just need to replace a washer.
1. Take An Honest Inventory of Each Room
Take inventory in every room, be honest as you make your list, and call your local handyman or contractor to address the issues. Why not do it yourself? You could, but the finished job should not scream “the homeowner fixed this!”. Plus, your family will be busy undertaking another task which is very personal; the daunting- and rewarding task of de-cluttering.
2. De-Clutter
You’re moving- start packing! Clutter distracts buyers and makes rooms look smaller. That collection of penguins needs to be packed away. Flat surfaces should be cleared off. And most importantly, personal items such as family photos need to be removed. Let the buyer visualize their family in the house; with your family photos scattered everywhere, it’s almost impossible for the buyer to mentally move it.
3. Edit Your Closets
And don’t forget your closets. Many buyers move due to the need for more space and storage. If your closets are packed, even though your house might offer double the buyers’ current closet space, the perception is that there is not enough room for all their stuff. Typically closets need to be edited by a minimum of 30%. And that includes kitchen cabinets and drawers as well as linen closets.
A buyer who sees a linen closet perfectly organized with folded towels (a la a well know domestic diva) can only think “these sellers are so organized!” and that is money in YOUR bank.
4. Home Repair Records
Speaking of organization- pull together all your home maintenance and repair records. How old are the systems? How old is the roof? What have you improved since owning the property? What were your utility costs for the last 12 months? If you can’t remember the last time your heating system was serviced, NOW is the time to do it. Having this information on hand for the buyers gives them the impression that you took the responsibilities of home ownership seriously and that’s the type of house they want to purchase.
This small investment of time and money will benefit you in the long run and set your house apart from the competition.
Below are Before pictures of a Living Room that the sellers presented that room as and the After picture with Judy’s staging design showing how a few simple, inexpensive ideas can dramatically alter the room’s feel and appeal.
Judy, thank you for the sound advice! Guess I would have a LOT of work to do to get my house ready. If you have any questions, you can reach Judy using the information below.
JUDY B. LEERER, ABR, CRS, GRI, SRES, ASP is a Realtor and Home Stager in Metro West Boston with 27 years of experience working with sellers and buyers. Currently affiliated with Realty Executives Boston West, she offers home staging services as one of her marketing tools to help sellers set their homes apart from the competition. Contact Judy by phone at 508-371-4356, email judy@leererhomes.com or visit her website at www.leererhomes.com.
New FHA Loan Limits May Have Major Impact on Financing!
When Congress passed the Economic Stimulus Act in 2008, FHA loan limits were temporarily raised to help borrowers in higher cost areas obtain financing through FHA to help offset the reduction in private financing due to the credit crunch. These Loan Limit increases were substantial in many areas of the country and were set to expire in the future.
Congress passed additional legislation to extend these loan limits for the past couple of years. However, barring any Congressional action, the FHA Loan Limits are set to revert to the 2008 formula as of October 1, 2011. This could have a major impact on FHA availability depending on what state and county you live in. To quote from the
Potential Changes to FHA Single-Family Loan Limits beginning October 1, 2011 from Implementation of theHousing and Economic Recovery Act of 2008 A Market Analysis Brief
Proposed FHA Loan Limit Changes effective October 1, 2011
MA Barnstable $462,500 $405,950 -$56,550
MA Bristol $475,000 $426,650 -$48,350
MA Dukes $729,750 $625,500 -$104,250
MA Essex $523,750 $465,750 -$58,000
MA Franklin $318,750 $274,850 -$43,900
MA Hampden $318,750 $274,850 -$43,900
MA Hampshire $318,750 $274,850 -$43,900
MA Middlesex $ 523,750 $465,750 -$58,000
MA Nantucket $729,750 $625,500 -$104,250
MA Norfolk $523,750 $465,750 -$58,000
MA Plymouth $523,750 $465,750 -$58,000
MA Suffolk $523,750 $465,750 -$58,000
MA Worcester $385,000 $285,200 -$99,800
So, is this a big deal? ABSOLUTELY!!. FHA is making up a greater percentage of all loans originated as conventional guidelines continue to become more restrictive. For borrower’s with less than a 5% down payment (the merits of a higher down payment requirement can be argued about), FHA is the main loan program available. Worcester County, which has been fairly hard hit by the decline in home prices over the past few years will be drastically impacted if borrwer’s who can qualify based on income and employment cannot purchase a home above the new limits. Homeowner’s in the affected counties will see their home values decline more dramatically, wiping out whatever equity they may have built over the years. The Worcester MA county FHA loan limit is dropping by almost 26%! There will have to be consequences for these changes and none of them good in the short term for the housing market.
Home affordability is very important to get the housing market out of the quagmire it is in, however, the severity of the potential impact is too great. There will have to be consequences for these changes and none of them good in the short term for the housing market.
My advice for borrower’s needing to refinance into an FHA, becuase you can’t qualify for a conventional or jumbo loan, is to get it done NOW! Case-Shiller has confirmed a Double Dip in home prices and this trend may continue. Therefore, in the near term, appraised values for comparable homes may be as high now as they will be for months or years to come.
I would also suggest that homebuyer’s and homeowner’s contact your congressional representative seeking for an extension of the loan limits. We know Housing Reform is coming for Fannie and Freddie and that is expected to make it even more difficult to get a loan if you are not a perfect borrower, and how many of us are perfect?
Questions and Comments are always appreciated as are subscribing to my blog. Please see the sign-up on the right side of the page. Email me at dgaffin@greenparkmortgage.com.