Five Reasons You Should Never Sell a Vacant Home!

by Jill Mendoza

It's not everyday you hear about a home selling within three days, with multiple offers, over the list price of $1.3 million in January!  Michelle Minch of Moving Mountains Design in Pasadena took a vacant home, and transformed it into a home buyers fell in love with!  Comparing the before-and-after photos reminds us why vacant homes generally take twice as long to sell, and are the most important homes to professionally stage.  If these visuals aren't enough, here are five reasons why you should NEVER try and sell a vacant home:

1.  People Don't Buy Houses, They Buy Homes
The number one reason a buyer purchases a home is because it "felt home."  It was warm, inviting and the buyer made an emotional connection with the home.  When have you ever heard of an empty room described as warm and inviting?  Sterile, cold and uninviting are the three most popular words to describe an empty room.  Which room above feels more "home" to you?

2. Without Furniture, There Is No Frame Of Reference
How big is the room?  Without furniture it's incredibly difficult to tell the scale and size of a room.  In the above photo, the room looks dark, long and narrow.  When the buyer does not have answers to their questions...they walk away. 

What is this room for?  Many times a buyer can't even tell if it's the living room or dining room in an unfurnished home.  Don't keep them guessing, it only distracts them from considering the home as a purchase.

3. When A Room Is Kept Empty, Buyers Focus On Negative Details
Can you imagine a brand new Mercedes without a paint job?  Do you think people would notice the beautiful car or the missing paint?  In the above photo, buyers might be distracted and confused by the columns in the middle of the room.

It's so much easier to notice that crack in the wall, or the chip in the tile when there is nothing else to look at.  Home Staging capitalizes on the positive aspects of a home, while de-emphasizing the negative aspects in order to position a home that will make an emotional connection with buyers.  These rooms made obvious emotional connections with buyers, and in each photo can count the many ways the Professional Home Stager marketed this home emotionally.

4.  Only 10% of Home Buyers Can Actually Visualize the Potential of a Home
Nine out of every ten people walking in your home have no imagination of the wonderful possibilities your home has to offer them.  In the above photo, buyers would not be able to realize that there is plenty of room for a table and chairs.  They just can't picture it.  Don't let a simple thing like no furniture or limited furniture ruin your sale.  Don't take those odds; they will hurt you in the price significantly!

5.  Paying For Two Mortgages Can Get Expensive!
Let's look at the facts: a vacant home typically takes twice as long to sell, and the longer something "sits" on the market, the lower the sales price*.  Why risk paying two mortgages longer, only to have the sales price lower than it would have been if you had the home professionally staged!

*According to a NAR (National Association of REALTORS) survey

Looking to "head off trouble?"  Get that new purchase inspected.

Sellers - If you do an inspection and make the necessary repairs before listing the home FOR SALE, your home basically has a clean bill of health.  It is the perfect time to take care of things that could to wrong so they won't come back and bite you later on after the sale.  Also, if there are safety items those are critical to repair as you could be placing your family at risk.  Do the inspection to help avoid the phone call after your sale is completed.

Buyers - Spend the extra time and money to hire an independent 3rd party that is an expert in home inspections.  They will look at the home in an entirely different manner than you looked at it.  They look at mechanical issues, safety issues, and items that cosmetically looked good but might have some hidden defects that you miss and the seller never knew about.  Even if sellers perform a prelisting inspection, it never hurts to hire your own inspector that is working "only" for you.

A Smooth Ride - By bringing potential problems to light before sellers put their home on the market creates an environment of trust and goodwill between sellers and buyers.  Prelisting inspections can reduce parties stress level and eliminate many of the bumps that can throw a deal off track.  A buyer’s inspection is always advised as things can change and that inspection will give you a snapshot in time of the condition of the property.

Should we get that HOME Inspected?

The simple answer is "YES!"

Save Money using a “1031 Tax Deferred Exchange”

Often investors do not realize taxation of a personal residence is far different than taxation on income or investment property.  The Taxpayer Relief Act of 1997 changed Internal Revenue Code treatment of the sale of a person residence to allow a single taxpayer a $250,000 exclusion from capital gain.  Married couples receive a $500,000 exclusion.  The taxpayer must have resided in the property two of the last five years.  This exemption may be used once every two years.

If an investor sell appreciated property they pay tax.  However, property that qualifies for preferential tax treatment under Internal Revenue Code Section 1031 (IRC 1031) is treated quite differently. 

IRC 1031 states “No gain or loss shall be recognized if property held for productive use in a trade or business or for investment is exchanged solely for property of like-kind.”

Therefore, an investor using IRC Section 1031 can exchange raw land for a rental home, an apartment complex for a shopping center or rental houses for an office building.  The use of the property is a key factor in determining the tax treatment.

Every dollar saved in taxes will allow an investor to purchase 4-5 times as much real estate . . . .

To learn more about IRC 1031 exchanges contact your commercial or investment real estate agent, your accountant or a professional qualified Intermediary that specializes in IRC 1031 Exchanges.

The savings are only available if you make the correct moves in the process.  Make the call and save the taxes!

"The Pricing Puzzle in Today's Real Estate Market"

For many years “Pricing a Property” has been easy as all you have to do is look at prices for similar homes in the area and add 5% - 15% and it would sell.

That market has changed dramatically.  It is up to the Realtor to assist and educate the seller so they are reminded of these changes.

The best way to assess your listing’s value is to be extremely familiar with the other homes it is competing against and with the most recent sales that have been successful.  Price and value are not always the same in every scenario. 

Location, location, location and amenities are the difference between a home that sells and one that sits on the market longer than normal. 

If the seller says I need “negotiation room” remind them that they will not need that room to negotiate if no buyers are present to do the negotiating with.  In addition, this is a different market and a different market demands different strategies. 

Before suggesting a listing price find out how motivated the sellers are? Do they have realistic expectations?  Do they need to sell fast?  Are they willing to wait for the highest possible offer?  Can you afford to advertise this property if they want it priced unrealistically?  

Your goal is to price the property correctly; however, pricing isn’t a one-time task.  You will have to keep the seller informed of market changes, recent sales, new listings, and levels of activity for their property and real estate in general.

Having a realistic view of the price, and being able to make pricing changes will better your seller’s chances of a successful sale.    

Buyers are looking at every detail and have a large inventory to choose from.  Price, condition and location all play an important role in determining which home they will choose. 

You never get a second chance to make that FIRST IMPRESSION.  That first impression is not only in condition, but also with PRICE!

When is the right time to buy real estate?

If you are looking to change homes and upgrade to a more expensive home or downsize and think of retirement now is the time to buy!  Why?

1.  Interest rates are still very low, which means you can buy more for your dollar.  (Shop those rates.)

2.  There is a strong inventory to choose from.  (It is simple supply and demand.  You are the demand; there is extra supply so in many markets the buyer is in the driver's seat).

3.  There are some motivated sellers wanting to sell.

Smart buyers purchase when the price is low and sell high!  What are you waiting for?

What about investments?

Because of the same reasons listed above now is the time to buy those investments and make things happen.  A delay in investment purchases could cost you a large part of your profit. 

There are some people wanting to sell those investment properties.  Take a good look at what is on the market - there are some hidden jewels in that inventory.

How is commercial real estate?

Thinking of expanding your business?  Want something to go along with your business that is real important at the time when your thinking of selling, think "Real Estate." 

Again, rates are low, some properties are overbuilt and it is time to buy that property that best suites your needs.

In summary, no matter if you rent, lease or own someone is making that payment.  If you rent or lease, you benefit from the property; however, the owner gains from the tax benefits, the lowering of the debt by you, and increased value (appreciation) of the property. 

Why don't you be the one that gains from all those advantages?  You’re making the payments, now gain the benefits that go along with owning one of our greatest physical assets that we possess - "Real Estate."

The time to be a buyer - NOW!

Over 90% of For Sale By Owners end up hiring an agent. That agent SHOULD be YOU!

Here's 6 ways to turn FSBOs into clients:

1. Show FSBOs the long list of all that's involved in marketing and selling a property. Talk about photographing, advertising, negotiating and closing a deal.

2. Illustrate how real estate pros, through the Ask About Real Estate Listing Services and their relationships with other top producers, can expose FSBOs' property to the widest pool of buyers in the most efficient time frame.

3. Promote yourself including your experience. Be sure to highlight your expertise in moving properties in the their neighborhood.

4. Remind FSBOs that four of five owners eventually turned to a real estate professional to sell their home. Focus on how few get the price they deserve and how much longer it takes to sell without your guidance.

5. Leave a list of selling tips. If they fail to sell on their own, they may come back to you or later refer you to a friend.

6. Be persistent and helpful to them. FSBOs will likely reject your first request to list their property; however, hang in there and keep working them.

The FSBO market is a hidden jewel.

Top 51 TIPS FOR MARKETING YOUR HOME FOR SALE!

People usually decide within two minutes whether they like your house.  The first impression is often the lasting impression.  Buyers start forming their opinion before they even walk in the front door!

It is wise to ask yourself if your house is as presentable as it can be for a faster sale at the best price.  The best way to find out is to imagine you are a prospective buyer.  You’ve probably been looking at many other homes; so approach your present home the way you look at other houses.

Here are 51 time-tested tips suggest to make your home more sellable.  A good rule to follow is to do cosmetic things which will improve your chances of selling, but avoid making major changes unless they will increase the value of your home more than the cost of the improvement.

Clean up, fix up, paint up

The Outside

1.      Invest in landscaping where it can be seen at first sight.  A well manicured lawn, neatly clipped shrubbery, clean swept walks create a good first impression.

2.      An extra shot of fertilizer, in season, will make your grass look lush and green.

3.      Cut back overgrown shrubbery that looks scraggly or keeps light out of the house.

4.      Paint your house if necessary.  This can probably do more for sales appeal than any other factor.  If you decide against paint, at least consider touching up front shutters and window frames.

5.      In winter, walks should be free of snow and ice.

6.      Inspect the roof and gutters.  Any missing shingles to replace?  Gutters and down spouts in place?  Need paint or repair?

7.      Consider putting flowers outside the front door.

8.      Repaint the front door, if necessary.

9.      Put a bright coat of paint on your mailbox, if necessary.

10.  Repair broken outdoor steps.

The Kitchen

11.  The kitchen is the most important room in the house.  Make it bright and attractive.  If dull, paint cabinets and put up perky new curtains.

12.  Clean the ventilating hood in the kitchen.

13.  If the kitchen floor is badly worn, put down new flooring.  Replace any loose tile.

14.  Remove any appliances that you keep on your counters.  Clean and clutter free counters make the room look larger.

The Bathroom(s)

15.  Repair dripping faucets.

16.  Keep fresh towels in the bathrooms.

17.  Use special cleaning products to remove stains from toilets, bathtubs, sinks and showers.

18.  If sink and bathtub drain too slowly, unclog them.

The Living Area

19.  Have all plaster in top shape.  Cracks (or nail pops, visible seams in dry walls) are easy to fix.

20.  Check ceiling for leak strains.  Fix the cause for the damage, repair the ceiling and paint.

21.  In painting and redecorating, avoid offbeat colors.  Stick to conventional white outside and easy-to-work with pastels inside.

22.  Faded curtains or bedspreads can be dyed bright colors.

23.  If you have a fireplace, clean it out & lay some logs in it to make it look inviting.

24.  Wash windows.

25.  Replace broken glass.

26.  Mend torn screens.

27.  Check to see that all windows will open and close.

28.  Replace burned-out light bulbs.  Use brighter light bulbs.

29.  Make sure every light switch works.

30.  Make the floors shine, clean & polish them.  If possible, nail down any creaking  boards or stair treads. 

31.  Straighten up the closets-get rid of excess items.  Lubricate any sticky or squeaking doors.

32.  For doors that stick, rub a block of paraffin against the surfaces that show signs of wear.

33.  For sliding doors that stick in their tracks, rub the tracks with paraffin or candle wax.

The Basement, Attic, Garage

34.  Clean out attic, basement and garage and dispose of everything you are not going to move.  Package everything you won’t need until you are settled in your new home.

35.  Make sure there is plenty of light on the stairs to the basement.

36.  If your basement is dark and gloomy, paint ceiling and walls a light color.

37.  Repair cracks in the basement floor with ready-mixed concrete.

When your house is being shown . . . .

38.  Keep your room draperies and shades open to let in light.  This also makes your room appear larger.

39.  Have your home well-lighted during showings.

40.  At night, turn on the front light and outdoor lighting in back if you have it.

Other tips

41.  Neatness makes a room look bigger.  Avoid clutter.

42.  If possible, leave your furniture and rugs in the house for showing it.

43.  Avoid having dirty dishes in the sink or on counters.

44.  Keep all toys in the children’s rooms.  Bikes, wagons and skateboards should be made as inconspicuous as possible.

45.  Keep radio, stereo, TV off or turned down low.

46.  Take your family away if you are holding an “open house.”

47.  Children should be as quiet as possible.

48.  Refer direct inquires you receive about seeing your house to your Realtor to take advantage of their professional skills in selling your home.

49.  Don’t mention furniture or furnishings you wish to dispose of unless asked. 

50.  Take pets outdoors or kennel when your house is being shown.

51.  Let the real estate expert show your house, and please do not tag along.  Answer questions candidly when asked, but do not offer answers to unasked questions. 

      “Less is more.”

Again, these tips were compiled through seller/buyer surveys and general industry feedback over many years looking at what preparations for selling had the greatest positive impact to the seller’s asking price.  Not everyone has the time to do all this items; however, any areas that need additional attention by the buyers may reduce the seller’s total purchase price and offer.  Most certainly, asking prices are directly reflective of the condition of these items at time of placing the home on the market.

Here are the TOP 51 Tips for Preparing your Home FOR SALE (Part 3 of 4)

The Basement, Attic, Garage

1.      Clean out attic, basement and garage and dispose of everything you are not going to move.  Package everything you won’t need until you are settled in your new home.

2.      Make sure there is plenty of light on the stairs to the basement.

3.      If your basement is dark and gloomy, paint ceiling and walls a light color.

4.      Repair cracks in the basement floor with ready-mixed concrete.

When your house is being shown . . . .

5.      Keep your room draperies and shades open to let in light.  This also makes your room appear larger.

6.      Have your home well-lighted during showings.

7.      At night, turn on the front light and outdoor lighting in back if you have it.

Keep checing in for the final addition to these TIPS.

Greetings,

Selling and preparing your home for sale can be a very large process during a stressful time in your life.  Here is Part 2 of a 4 Part process that make your process more complete. 

In a time and market when marketing your homes assets is important - these items can truly make your home stand out from your competition.  Add the WOW factor to your home!

Review Part 1 if need be and keep looking for Part 3 and Part 4 to come in the near future.

The Kitchen

1.      The kitchen is the most important room in the house.  Make it bright and attractive.  If dull, paint cabinets and put up perky new curtains.

2.      Clean the ventilating hood in the kitchen.

3.      If the kitchen floor is badly worn, put down new flooring.  Replace any loose tile.

4.      Remove any appliances that you keep on your counters.  Clean and clutter free counters make the room look larger.

The Bathroom(s)

5.      Repair dripping faucets.

6.      Keep fresh towels in the bathrooms.

7.      Use special cleaning products to remove stains from toilets, bathtubs, sinks and showers.

8.      If sink and bathtub drain too slowly, unclog them.

The Living Area

9.      Have all plaster in top shape.  Cracks (or nail pops, visible seams in dry walls) are easy to fix.

10.  Check ceiling for leak strains.  Fix the cause for the damage, repair the ceiling and paint.

11.  In painting and redecorating, avoid offbeat colors.  Stick to conventional white outside and easy-to-work with pastels inside.

12.  Faded curtains or bedspreads can be dyed bright colors.

13.  If you have a fireplace, clean it out & lay some logs in it to make it look inviting.

14.  Wash windows.

15.  Replace broken glass.

16.  Mend torn screens.

17.  Check to see that all windows will open and close.

18.  Replace burned-out light bulbs.  Use brighter light bulbs.

19.  Make sure every light switch works.

20.  Make the floors shine, clean & polish them.  If possible, nail down any creaking  boards or stair treads. 

21.  Straighten up the closets-get rid of excess items.  Lubricate any sticky or squeaking doors.

22.  For doors that stick, rub a block of paraffin against the surfaces that show signs of wear.

23.  For sliding doors that stick in their tracks, rub the tracks with paraffin or candle wax.

Again keep looking for more information to come!

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Real Estate Agent: Have you been looking for a convenient way to receive referrals directly from consumers? Do you want an affordable way to reach the global market? Would you like to continue to go after the "For Sale By Owner" market that is an opportunity when people buy, sell or relocate to your area? Do you have more competition that most professionals and do you want to stand out from your competition? Does it seem like the cost to advertise your listings is way to high?

Check us out at www.askaboutrealestate.net.

Ask About Real Estate.net is the answer for you. Consumers want to be able to request professional assistance from a Real Estate Agent 24/7. Consumers want an easy web page to remember, and more importantly an easy web page to use. All a consumer has to do is go online and fill in a request on our web page, they choose the real estate professional(s) that they are interested in, and the rest of the work is done for them.

If you are the Real Estate Agent that has signed up to cover the area they are looking for, you will receive their referral request.Once the request has been made your information will populate into their online account. At the same time you will be sent an email with a link that will allow you to go to your online account and "accept" or "decline" your referral. The choice is yours.

Everyday more customers go on line to find real estate professionals that can help them with their needs. Your competition grows at a daily rate; however, not everyone is as savvy with the Internet as you. Be ahead of your competition and stand out from the rest.

Check us out at www.askaboutrealestate.net.

Join us today and show your future clients that you are part of the new, exciting, and progressive TEAM in real estate - the Ask About Real Estate.net TEAM.

Check us out at www.askaboutrealestate.net.

Lenders: Have you been looking for a convenient way to receive referrals directly from consumers? Do you want an affordable way to reach the global market? Would you like to continue to go after the "For Sale By Owner" market that is an opportunity when people buy, sell or relocate to your area? What about the refinance market? Check us out at www.askaboutrealestate.net.

Ask About Real Estate.net is the answer for you. Consumers want to be able to request professional assistance from a Lender 24/7. Consumers want an easy web page to remember, and more importantly an easy web page to use. All a consumer has to do is go online and fill in a request on our web page, they choose the real estate professional(s) that they are interested in, and the rest of the work is done for them.If you are the Lender that has signed up to cover the area they are looking for, you will receive their referral request.Once the request has been made your information will populate into their online account. At the same time you will be sent an email with a link that will allow you to go to your online account and "accept" or "decline" your referral.

The choice is yours.Everyday more customers go on line to find real estate professionals that can help them with their needs. Your competition grows at a daily rate; however, not everyone is as savvy with the Internet as you.

Check us out at www.askaboutrealestate.net.

Be ahead of your competition and stand out from the rest. Join us today and show your future clients that you are part of the new, exciting, and progressive TEAM in real estate - the Ask About Real Estate.net TEAM.

Check us out at www.askaboutrealestate.net

General Contractor: Have you been looking for a convenient way to receive referrals directly from consumers? Do you want an affordable way to reach the global market? Would you like to continue to go after the "For Sale By Owner" market that is an opportunity when people buy, sell or relocate to your area?

Check us out at www.askaboutrealestate.net.

Ask About Real Estate.net is the answer for you. Consumers want to be able to request professional assistance from a Contractor 24/7. Consumers want an easy web page to remember, and more importantly an easy web page to use. All a consumer has to do is go online and fill in a request on our web page, they choose the real estate professional(s) that they are interested in, and the rest of the work is done for them.

If you are the Contractor that has signed up to cover the area they are looking for, you will receive their referral request.Once the request has been made your information will populate into their online account. At the same time you will be sent an email with a link that will allow you to go to your online account and "accept" or "decline" your referral. The choice is yours.

Everyday more customers go on line to find real estate professionals that can help them with their needs. Your competition grows at a daily rate; however, not everyone is as savvy with the Internet as you. Be ahead of your competition and stand out from the rest. Join us today and show your future clients that you are part of the new, exciting, and progressive TEAM in real estate - the Ask About Real Estate.net TEAM.

Check us out at www.askaboutrealestate.net.

Your cost is $49.95 a year. You can double your coverage area for $10.00. The choice is yours to join now, or join after your competition has joined. If you already have too much business, this may not be for you. If you want to stand out from your competition and are the professional that would make a good addition to our TEAM, then "Time is of the Essence!"

Check us out at www.askaboutrealestate.net.

Home Inspector: Have you been looking for a convenient way to receive referrals directly from consumers? Do you want an affordable way to reach the global market?

Check us out at www.askaboutrealestate.net.

Ask About Real Estate.net is the answer for you. Consumers want to be able to request professional assistance from a Home Inspector 24/7. Consumers want an easy web page to remember, and more importantly an easy web page to use. All a consumer has to do is go online and fill in a request on our web page, they choose the real estate professional(s) that they are interested in, and the rest of the work is done for them.

If you are the Home Inspector that has signed up to cover the area they are looking for, you will receive their referral request.Once the request has been made your information will populate into their online account. At the same time you will be sent an email with a link that will allow you to go to your online account and "accept" or "decline" your referral. The choice is yours.

Everyday more customers go on line to find real estate professionals that can help them with their needs. Your competition grows at a daily rate; however, not everyone is as savvy with the Internet as you. Be ahead of your competition and stand out from the rest. Join us today and show your future clients that you are part of the new, exciting, and progressive TEAM in real estate - the Ask About Real Estate.net TEAM.

Your cost is $49.95 a year. You can double your coverage area for $10.00. The choice is yours to join now, or join after your competition has joined. If you already have too much business, this may not be for you.

If you want to stand out from your competition and are the professional that would make a good addition to our TEAM, then "Time is of the Essence!"

Check us out at www.askaboutrealestate.net.