Month: September 2021

The Top 3 Mistakes Sellers Make When Setting the List Price for their Home

Selling a home has some business considerations, some emotion involved, and possibly some fear of making a mistake. Home sellers are prone to make three common mistakes when deciding on a price at which to list their homes.

1. Setting the price based on the sellers’ needs.

How much the seller may need in cash to buy their next home or to realize the value appreciation they expected from their home has nothing to do with market value or what buyers are willing to pay for a home.

Sellers should do their best to separate their emotions about the home, as well as their expectations, from the decision on a list price for the home. A home, like any other commodity, is only worth as much as a buyer is willing to pay for it. Sellers should work with a real estate professional to complete a Comparative Market Analysis (CMA) to determine the approximate value of the home in the current market and for the neighborhood.

2. Expecting a list price similar to a neighbor’s home list price.

When a homeowner works with a real estate professional, the normal process for determining a list price for the home is to complete a CMA. They use the sold prices for homes that closed on the sale recently.

The list price of those sold homes is rarely the price at which they sold. The sold price is the most accurate way to see what a home can sell for in the current market. Because different real estate professionals select different comparable properties, and because they can use different adjustments to account for features that are different in the homes, list prices are not as useful as sold prices in the CMA process.

3. Using average prices per square foot to set list prices.

Though a part of the CMA process does involve the size of the home, it is used only after comparable sold prices are adjusted for feature differences.

Just comparing two homes based primarily or only on square footage implies that they are identical in other features. Though there are some areas where this could be true, in most areas there are several adjustments to comparable home sold prices to account for feature differences.

A carefully crafted CMA is the best way to determine the approximate market value of the home.

The main steps in the process are:

•   Recently sold comparable homes in the same neighborhood or nearby are selected for the calculation. This is arguably the most important step, as using old comps or those out of the area can cause a less accurate valuation of the home.

•   Though homes selected as comps should be as similar in features to the home to be valued, there will be differences in the number of bedrooms, baths, garage spaces, and more. The real estate professional must use a value for each of these features to adjust the actual sold price to be what it would have been if the homes were identical.

•   Once the adjustments are completed, then the sold prices per square foot for the comps are averaged and that number is applied to the subject home to get the approximate suggested list price.

For the homeowner considering selling, knowing the basics of the CMA process can help in asking the right questions to determine how the real estate professional selected comps and handled the sold price adjustments. The goal is to arrive at a realistic list price to sell the home in the current market. 

Questions on setting your selling price? Give me a call. I have extensive experience in helping sellers across the Minneapolis/Twin Cities area, and also including Lakeville, Apple Valley, Eagan, and Burnsville.

Image credit: marchmeena29 | iStock | Getty Images Plus

Tips for a Simple and Stress-Free Move

Tips for Stress Free Moving

Moving can be extremely stressful, especially when you haven’t planned properly for the big day. Recent surveys have found that moving is at the top of the list of stressful life events, including divorce, starting a new job, and having children. Most of us have experienced the typical moving day scenario: waking up on the morning of moving day, surrounded by boxes, bags, and furniture. Everyone’s desperate for a cup of coffee, but the mugs have already been packed and there’s not a spoon in sight. Then, much to everyone’s horror, the moving company arrives before the last boxes are packed. By the end of the day, the new house is overflowing with boxes, nobody can find what they need and tempers are flaring. It’s not the ideal way to spend the first night in a new house.

Moving day doesn’t have to be so stressful, though, as much of the pressure can be eliminated by employing some simple strategies. Planning your move effectively allows for a peaceful moving day and an easy transition into your organized new home. Moving can be an exciting, happy experience with the help of some easy tips.

Declutter Before Packing

Moving to a new house creates the perfect time and space to declutter. It’s a fantastic opportunity to rid yourself of old documents, clothes, electronics, books, and unwanted furniture. There are many different methods of decluttering, but the easiest involves working on one room at a time with separate piles for throwing away, keeping, and donating. When you’re finished working on a room, remove the donations and rubbish. Then, separate the items that you’re keeping and organize them into piles of similar items. If you struggle to get rid of clutter, it can be tempting to retrieve items from the donation pile, so organize to drop them off at a charity as soon as possible.

Personal documents that are no longer needed should be destroyed and sentimental items should be kept aside for separate packing. If you’re unsure as to whether to donate or keep something, hold on to it until the end of the process, then make a final decision. When moving to a smaller home, it’s important to declutter as much as possible. Objects like children’s artwork, cards, documents, and photos can be stored digitally to save physical space.

Staging to Sell

If your house is still listed for sale, packing may prove tricky as you’re still having regular showings to prospective buyers. The house needs to look its best in order to sell. Decluttering and packing is a messy process and it can detract from the overall appeal of a home.

Staging to sell is an effective method that enables buyers to picture the house as their own, as they’re able to visualize their own possessions in the home. This means removing anything that is personal, like photos, mementos, and ornaments. Clear the surfaces of shelves, especially in bathrooms and bedrooms, and try to keep colors as neutral as possible. Get rid of as much clutter as you can, including unnecessary furniture, as space creates the impression that the house is bigger and lighter. If you can, store packed boxes in a designated storage area, like a garage. However, if you don’t have storage space, pack boxes neatly against the walls. Deep clean neglected areas, especially blinds and windows, and add some fresh finishing touches, such as a vase of flowers or potted plants.

Intentional Packing

As each group of items is packed, label both the room and a list of the specific items on each side of the box for easy identification at the new house. Color-coding the boxes with a simple colored sticker per room enables both yourself and the moving team to recognize immediately where to group and place the boxes so that they don’t need to be moved from room to room. Ensure that you have strong storage boxes for fragile items and wrap them separately to keep them safe. Clearly mark them as fragile. Clothing on hangers can be packed on the hanger, if you have enough boxes and transport space, as it’ll save time during the unpacking period. When packing heavy items, such as books, double tape the bottom of the box to prevent breakage and try to limit the number of heavy objects per box.

Moving Day Prep

Preparation is essential for a smooth move. The day before moving, after most household goods have been packed, clean out appliances like the fridge, freezer, microwave, and oven. Throw away expired food and ensure that you have a cooler bag and ice packs ready to transfer food from the fridge and freezer during the move. Have a quick, easy breakfast prepped as well as snacks, drinks and something simple for lunch. When moving with pets, don’t forget pet food, bowls, and crates for the journey. Pack an overnight bag for each member of the family, containing an extra set of clothes, daily medication, toiletries, a towel, and personal items, as it may be difficult to unbox these items the same day of the move. If little children are part of the move, include a small bag of favorite toys and books to entertain them while you’re busy unpacking. Pack a set of bedding for each person, including sheets, pillows, and blankets, so that the first night in your new home is as comfortable as possible.

Freeze a cooked meal for that night’s dinner, to be reheated, or find a delivery service in your new area to order take-out easily.  Make sure that your cell phone and an extra battery pack is charged, since you may have to coordinate with movers, family, and friends all day. Set an alarm to wake up earlier than usual, so that you have more time to deal with unforeseen problems.

Moving Day

Moving day can feel frantic as the moving team works their way through your old home, packing pieces of furniture, appliances, and boxes. If a family member or friend can babysit children and pets for the day, it could allow for a smoother move. However, if kids and pets are part of the move, make sure that they’re fed and entertained in a room away from the busiest part of the move, to keep them safe and prevent jarred nerves.

As you leave your old house, make sure that you check everything for the final time to make sure that you’ve left nothing behind.

Provide the moving team with instructions that link the color-coded boxes to their specific rooms in the new house, if possible. Once furniture, boxes, and appliances are being moved into the new house, don’t start unpacking boxes randomly. Instead, pack the fridge first from cooler boxes and set up safe spaces for little kids and pets. Put linen on the beds, ready for the night. Then, start the exciting process of unpacking and organizing your new house. Start with the kitchen, since those would most likely be the items that you’ll need first.

As you spend your first night in your new house, remind yourself that it may take some time to get all your boxes unpacked and feel settled. Instead of rushing through unpacking, take your time to absorb the flow of your new home. Enjoy creating new spaces and memories while celebrating a move without the usual stress and tension!

Image credit: ucigerma | iStock | Getty Images Plus