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Avoid These Mistakes When Selling Your Home

Few things are as significant as selling your home. Whether it is your first or your fourth time selling, it can be a complicated and stressful process. Often, people can overlook the obvious in the blur of coordinating everything that needs to happen. And when it comes to an event of such importance as selling your house, you want to make the fewest mistakes possible. Here are a few to avoid.  

Learn how to get the best price for your house

Selling your home can be surprisingly time-consuming and emotionally challenging. It can feel like an invasion of privacy when strangers open your closets and poke around. They will openly criticize your home and your decorating abilities, and to top it all off, they will offer you less money than you think your home is worth.

With no experience and a complex transaction on your hands, it’s easy for home sellers to make mistakes. The best way to sell a house comes down to a few basics:

  • Keep your emotions in check and stay focused on the business aspect.
  • Hire an agent. It’ll cost you in commission, but it takes the guesswork out of selling.
  • Set a reasonable price.
  • Keep the time of year in mind and avoid the winter months if possible.
  • Prepare for the sale. Your home must look its best to compete.
  • Take time over your listing and add lots of high-quality photographs, inside and out.

See more below on the fatal errors that can prevent you from selling your home.

Getting Emotional

It’s easy to get emotional about selling your home, especially your first one. You spent a great deal of time and effort to find the right one, saved up for your down payment and furniture, and created many memories. People generally have trouble keeping their emotions in check when it comes time to say goodbye.

Think it’s impossible? It’s not. When you decide to sell your home, start thinking of yourself as a businessperson and salesperson rather than just the homeowner. In fact, forget altogether that you’re the homeowner. By looking at the transaction from a purely financial perspective, you’ll distance yourself from the emotional aspects of selling the property.

Also, try to remember how you felt when you were shopping for that home. Most buyers will also be in an emotional state. If you can remember that you are selling a piece of property as well as an image and a lifestyle, you’ll be more likely to put in the extra effort of staging and doing some minor remodeling to get top dollar for your home. These changes in appearance will not only help the sales price; they’ll also help you create emotional distance because your home will look less familiar.

Not Hiring a Real Estate Agent

Although real estate agents command a hefty commission—usually 5% to 6% of the sale price of your home—it’s probably not a great idea to try to sell your home on your own, especially if you haven’t done it before. It can be tempting, especially if you’ve seen all those “for sale by owner” signs on people’s front lawns or on the internet. So does it pay to hire an agent?

A good agent generally has your best interests at heart. They will help you set a fair and competitive selling price for your home, increasing your odds of a quick sale. An agent can also help tone down the emotion of the process by interacting with potential buyers and eliminating tire kickers who only want to look at your property but have no intention of making an offer.

Your agent will also have more experience negotiating home sales, helping you get more money than you could on your own. If any problems crop up during the process, an experienced professional will be there to handle them for you. Finally, agents are familiar with all the paperwork and pitfalls involved in real estate transactions and can help make sure the process goes smoothly. This means there won’t be any delays or unforeseen legal ramifications in the deal.

After reading all this, should you really hire an agent? Only you can decide.

What to Do If You Don’t Use a Real Estate Agent

So you’ve decided not to hire an agent. That’s fine because it’s not like it can’t be done. There are people who sell their own homes successfully. Remember, though, you’ll need to do your research first—on recently sold properties in your area and properties currently on the market—to determine an attractive selling price. Keep in mind that most home prices have an agent’s commission factored in, so you may have to discount your price as a result.

You’ll be responsible for your own marketing, so make sure to get your home on the multiple listing service (MLS) in your geographic area to reach the widest number of buyers. Because you have no agent, you’ll be the one showing the house and negotiating the sale with the buyer’s agent, which can be time-consuming, stressful, and emotional for some people.

Because you’re forgoing an agent, consider hiring a real estate attorney to help you with the finer points of the transaction and the escrow process. Even with attorney’s fees, selling a home yourself can save you thousands. If the buyer has an agent, however, they’ll expect to be compensated. This cost is typically covered by the seller, so you’ll still need to pay 1% to 3% of the home’s sale price to the buyer’s agent.

Setting an Unrealistic Price

Whether you’re working with an agent or going it alone, setting the right asking price is key. Remember the comparative market analysis you or your agent did when you bought your home to determine a fair offering price? Buyers will do this for your home, too, so as a seller you should be one step ahead of them.

Absent a housing bubble, overpriced homes generally don’t sell. In a survey conducted by the informational home sale website HomeLight.com, 70% of real estate agents said that overpricing is the top mistake that sellers make.

Don’t worry too much about setting a price that’s on the low side, because in theory, this will generate multiple offers and bid the price up to the home’s actual market value. In fact, underpricing your home can be a strategy to generate extra interest in your listing, and you can always refuse an offer that’s too low.

Expecting the Asking Price

Any smart buyer will negotiate, and if you want to complete the sale, you may have to play ball. Most people want to list their homes at a price that will attract buyers while still leaving some breathing room for negotiations—the opposite of the underpricing strategy described above. This may work, allowing the buyer to feel like they are getting good value while allowing you to get the amount of money you need from the sale.

Of course, whether you end up with more or less than your asking price will likely depend not just on your pricing strategy but also on whether you’re in a buyer’s market or a seller’s market and how well you have staged and modernized your home.

Selling During Winter Months

Believe it or not, there really is a right time to sell during the year. Winter, especially around the holidays, is typically a slow time of year for home sales. People are busy with social engagements, and the cold weather across much of the country makes it more appealing just to stay home.

Because fewer buyers are likely to be looking, it may take longer to sell your home, and you may not get as much money. However, you can take some consolation in knowing that while there may not be as many active buyers, there also won’t be as many competing sellers, which can sometimes work to your advantage.

You may be better off waiting. Barring any mitigating circumstances that may force you to sell during the winter or holidays, consider listing when the weather begins to warm up. People are usually ready and willing to purchase a home when it’s warmer.

Skimping on Listing Photos

Because so many buyers look for homes online these days, and so many of those homes have photos, you’ll be doing yourself a real disservice if you don’t have high-quality visuals of your home. At the same time, there are so many poor photos of homes for sale that if you do a good job, it will set your listing apart and help generate extra interest.

Good photos should be crisp and clear and taken during the day when there is plenty of natural light available. They should showcase your home’s best attributes. Consider using a wide-angle lens if possible—this allows you to give potential buyers a better idea of what entire rooms look like. Ideally, hire a professional real estate photographer to get top-quality results instead of just letting your agent take snapshots on a phone.

Consider adding a video tour or 360-degree view to further enhance your listing. This can be easily done with any smartphone. You can certainly entice more potential buyers into walking through your doors for showings. You may even get more offers if you give them an introductory walk-through of your property.

Not Carrying Proper Insurance

Your lender may have required you to acquire a homeowners insurance policy. If not, you’ll want to make sure you’re insured in case a viewer has an accident on the premises and tries to sue you for damages. You also want to make sure there are no obvious hazards at the property or that you take steps to mitigate them (keeping the children of potential buyers away from your pool and getting your dog out of the house during showings, for example).

Hiding Major Problems

Think you can get away with hiding major problems with your property? Any problem will be uncovered during the buyer’s inspection. You have three options for dealing with any issues. Either fix the problem ahead of time, price the property below market value to account for it, or list the property at a normal price and offer the buyer a credit to fix the problem.

Remember: if you don’t fix the problem in advance, you may eliminate a fair number of buyers who want a turnkey home. Having your home inspected before listing is a good idea if you want to avoid costly surprises after the home is under contract.

Further, many states have disclosure rules. Some require sellers to disclose known problems about their homes if buyers ask directly, while others decree that sellers must voluntarily disclose certain issues.

Not Preparing for the Sale 

Sellers who do not clean and stage their homes throw money down the drain. Don’t worry if you can’t afford to hire a professional. There are many things you can do on your own. Failing to do these things can reduce your sales price and may also prevent you from getting a sale at all. If you haven’t attended to minor issues, such as a broken doorknob or dripping faucet, a potential buyer may wonder whether the house has larger, costlier issues that haven’t been addressed either.

Have a friend or an agent (someone with a fresh pair of eyes) point out areas of your home that need work. Because of your familiarity with the home, you may be immune to its trouble spots. Decluttering, cleaning thoroughly, putting a fresh coat of paint on the walls, and getting rid of any odors will also help you make a good impression on buyers.

Not Accommodating Buyers

If someone wants to view your house, you need to accommodate them, even if it inconveniences you. Clean and tidy the house before every single visit. A buyer won’t know or care if your house was clean last week. It’s a lot of work, but stay focused on the prize.

Selling to Unqualified Buyers

It’s more than reasonable to expect a buyer to bring a pre-approval letter from a mortgage lender or proof of funds (POF) for cash purchases to show that they have the money to buy the home. Signing a contract with a buyer may be contingent on the sale of their own property, which may put you in a serious bind if you need to close by a particular date.

Frequently Asked Questions

Can You Sell a House With a Mortgage?

Yes, you can sell a house with a mortgage. During the escrow process, you will get a mortgage payoff statement (sometimes called a payoff quote) from the lender holding your mortgage that lists the exact remaining balance. When your loan closes, the escrow agent will send the balance of your mortgage to your lender, paying off your mortgage.

Should I Stage My House?

Staging a home can lead to quicker sales and higher home prices.6 However, not everyone needs to hire a professional staging service. Just taking a few steps like cleaning and decluttering can have a significant impact on a home’s sale and will need to be done before moving regardless of the sale.

How Much Will I Make Selling My House?

How much you will make depends on the sale price, agent commissions, closing costs, and the remaining mortgage balance. If working with a real estate agent, you should receive a seller’s net sheet before you even list your property, which details what you can estimate to make. When you have accepted an offer and are in escrow, you will get a closing disclosure from your lender that details exactly how much you will receive after your loan closes.

Should You Sell Your Home for Cash?

Selling a home for cash is a quick way to avoid the hassle and stress of staging a house, showing it, making repairs, and juggling competing offers. However, most cash buyers won’t buy a home for more than 75% of the home’s value, minus any anticipated fixing-up expenses.
Selling a home for cash is easier, but at a significant financial cost that should be considered.

The Bottom Line

Learning how to sell a house is crucial. Make sure you prepare mentally and financially for less-than-ideal scenarios, even if you don’t make any of these mistakes. The house may sit on the market for far longer than you expect, especially in a declining market.

If you can’t find a buyer in time, you may end up trying to pay two mortgages, having to rent your home out until you can find a buyer, or, in dire situations, in foreclosure. However, if you avoid the costly mistakes listed here, you’ll be a long way toward putting your best foot forward and achieving that seamless, lucrative sale for which every home seller hopes.

There is no going wrong when you choose a company like Home Solutions to assist and support you with your real estate needs. We pride ourselves on responsibility, accountability, and operating with the utmost integrity. Our philosophy is simple. Customer service is our core principle. We are professionals who understand you deserve the very best. Let us help you! Get in touch today by calling (954) 545-3027 or connecting with us here.


Reference: [https://www.investopedia.com/articles/mortgages-real-estate/08/home-seller-mistakes-selling-house.asp]

Millionaire Renters Have Tripled Since 2015

The world of real estate — like almost every other industry and sector — has seen monumental changes over recent years. Where once buying a home was a long-term goal of every generation, the newer demographics are not as motivated; they prefer to rent. Additionally, millionaires are capitalizing on the benefits of renting more than ever, as evidenced by this eye-opening insight into the phenomenon. 

Homeownership is the one true goal for Americans seeking financial security. At least that’s the advice handed out like candy at Halloween or beads at Mardi Gras. But, in fact, many Americans choose to rent, not because they can’t afford to buy a home, but because they find renting to be advantageous.

A newly published report from RentCafe.com about high earners and millionaire renters indicates that the American household is changing as homeownership is not a priority for everyone, especially not for Millennials and Gen Zs. With 43 million families living in apartments, the highest level in half a century, renting is popular even among high earners who are able to buy, but prefer to rent their home instead. In fact, the most recent analysis of IPUMS (Integrated Public Use Microdata Series) data shows that the number of renters with annual incomes of over $150,000 grew by 82% between 2015 and 2020, faster than renters overall, who inched up by 3.2% during the same time frame. There are now 2.6 million high earners living in rentals in the U.S. and among them is a new ritzy kind of tenant: the millionaire renter.

High-income renters earning $150,000 or more saw rapid growth of 82% in five years — the most significant increase among all income groups — followed by renter households with annual incomes between $100,000 and $150,000. At the same time, middle-income renters grew at a slower pace, but still posted double-digit increases. The only segment to register a drop was that of households earning less than $50,000, which decreased by 11.2%. This is explained by low-income renters moving in with family members when the pandemic started, as well as households whose earnings grew and transitioned to higher income groups.

Why would those who can afford to buy turn to renting? Part of the answer may be found in high home prices, which made homeownership less attractive, especially for those well-heeled residents in pricey locations. This becomes even more obvious when comparing home prices to renter income in the cities with the highest increases in high-income renters: In nine of the 10 cities where the number of top-earning renters leapfrogged considerably, growth in home prices was higher than the national average (29%.)

An even more interesting phenomenon of the past few years is the rise of an unlikely new kind of tenant — the millionaire renter. The number of renter households with incomes of more than $1 million reached a record high of 3,381 in 2020 — three times as many as there were in 2015, when 1,068 millionaires were renting their homes in the U.S., according to the most recent data from IPUMS.

While home prices could be considered an obstacle even for high-income renters, what stops some millionaires from stepping on the homeownership ladder? It might be an issue of comfort and smart investing. Often homebuyers are struck with the realization that their new property needs more maintenance than expected. Couple this with the flexibility of moving between cities to pursue new career opportunities and that explains why even the most affluent sometimes choose to rent their home. Additionally, some high-earners, including some millionaires, prefer to funnel their cash into other types of assets that hold value.

According to a survey from Charles Schwab, Americans consider that an average net worth of $1.1 million represents being “financially comfortable.” And being financially comfortable appears to be a Millennial trait, with this demographic making up a majority (28%) of millionaire renters. For many Millennials of homebuying age and with above-average incomes, lifestyle renting is a better choice than owning. This mindset is mirrored among millionaire Millennials, too, who, unlike their Baby Boomer parents, decide to rent despite having the financial resources to own.

Gen X follows closely behind, making up 23% of millionaire renter homes. As the first generation that redefined and broke away from the American dream of homeownership, Gen Xers initially turned to renting due to the strain brought on by the 2008 housing crisis. Today, they’re following the same lifestyle renting trends as their younger counterparts.

According to IPUMS data, the rental home size of millionaire households varies across the U.S., with three-bedroom homes being the national average. Millionaire renters in Washington, D.C. have the largest homes. On average, they have five bedrooms, followed by Jersey City, NJ with four. Alternatively, in cities like Los Angeles, San Francisco and New York, the average home size is three bedrooms.

Wealthy renters live mainly on the coasts, specifically in California, New York and Washington, DC.

Do you have rental property and need help leveraging its value, finding the ideal tenants, or managing it? Leave your real estate needs in the hands of the Home Solutions experts! We are here to enhance your real estate ventures with personalized, concierge-like services that we will design exclusively for you! Get in touch today by calling (954) 545-3027 or connecting with us here.

Best Healthy Home Upgrades For 2023

In an increasingly fast-paced, busy, and stress-inducing world, it is a small wonder that people are placing more value on making their homes a haven of self-care and wellness. Making a few upgrades to your home can enhance your quality of life while you are there and increase its attractiveness to potential buyers if you were ever to sell. There are rarely such win-win opportunities, and it does not need to break the bank to get there. Consider some of these healthy home upgrades for the new year ahead.

There are countless articles and blog posts focusing on which home improvements will yield the greatest financial return on investment. But there’s another way to look at the ROI conversation: Which home improvements offer the best potential for improving your personal well-being. Those include the five facets of wellness design: health and fitness, safety and security, accessibility, functionality, and comfort and joy. Given the increasing importance of wellness to homebuyers, they might also add to the salability of your home when you do choose to put it on the market.

“It’s understandable why everyone is concerned about maintaining a healthy home,” comments Caroline Danielson, director of showrooms for upscale chain retailer Ferguson Bath, Kitchen & Lighting Gallery, adding that with recent research being made more widely available on the links between home and health, “It is no surprise that many homeowners are considering renovations that improve more than the look of a home.” These can all help homeowners clean faster, cook smarter and rest easier, she notes.

Technology

The topic of technology for wellness – including air and water quality, tunable lighting, and acoustic comfort – are all gaining popularity. “The pandemic brought the interest level up even higher,” observes Josh Christian, CEO of the Home Technology Association trade organization. Covid made the need for healthy indoor air urgent. Wildfires add to that urgency, with their smoke and ash infiltrating homes in nearby regions, and pollution is an ongoing issue in some areas.

“In-room portable air purifiers have exploded in popularity,” Christian shares, “though many homeowners aren’t aware that their whole home can have pure air with specialized air filtration systems.” These installations can be done through home technology integrators, he adds. “A good system can improve the safety of people in a home.” Real-time monitoring capabilities for water quality are not as advanced, Christian notes, “but when water filtration is part of a smart home system, there is extensive testing done up front to identify the best solution for the specific location needs.”

Materials

This is a challenging topic, because so many products offer both wellness benefits like softness underfoot, flame retardants and antimicrobial protection, while unfortunately introducing chemicals that can be damaging to our bodies. “The chemicals that help make a product flexible, light, sturdy have major side effects on our health including cancers, decreased fertility in both men and women and other hormonal related health issues, thyroid disease and elevated cholesterol,” cautions Alison Mears, director of the Healthy Materials Lab at Parsons University.

Looking at one surfacing material you’ll find in every home: countertops, Mears suggests porcelain slab manufactured without lead or asbestos, and natural materials like wood and granite (that may require more upkeep). For flooring, she warns against one of the most popular materials on the market today: luxury vinyl tile. Toxic dioxins are released during their manufacture that an persist in the body for years after exposure, she reveals. “With links to cancer, reproductive disorders, and hormone disruption, they have been called the most toxic man-made substance ever created. [Vinyl] floors also contain phthalates, which are endocrine disruptors. It is important [to] seek healthier alternatives in linoleum, cork, natural rubber, or bio-based materials that avoid any inclusion of vinyl,” she recommends. Options Mears prefer include floating engineered hardwoods with natural finish, ceramic tiles without heavy metal glazes, linoleum and polished concrete with a nontoxic finish.

When it comes to cabinetry, carcinogenic urea formaldehyde is a major element to avoid, Mears advises. NAUF (no added urea formaldehyde) products that reduce its use are a safer option. You’ll also want a cabinet with nontoxic finishes.

Appliances

Danielson points to appliances as one category where technology has always been a trending topic; lately it’s been heavily focused on wellness. “From steam ovens that allow homeowners to effortlessly prepare healthy meals to high-capacity, sanitizing dishwashers with settings to eliminate 99.999% of food soil bacteria by adding a high-heat final rinse to sanitize dishes, appliance technology is becoming more sophisticated.”

She points to a new category too: indoor plant growers. “Herb growing cabinets have captured homeowners’ imaginations,” the retailer observes. “Imagine making a salad with farm-fresh micro greens or cooking a meal and having the ability to use fresh herbs available right in the kitchen. All organic greens offer superior flavor and the best nutrition.”

Another category Danielson notes is the clothing refresher, which adds convenience to time-pressed homeowners. These allow homeowners to care for delicates without using harsh chemicals common in dry cleaning, she notes. They can also safely sanitize bedding between guests and children’s stuffed animals.

Fixtures and Faucets

“With the push for better health and wellness, home fixtures and faucets are now a great way to improve your overall well-being,” Danielson shares, pointing to the latest in water filtration systems and steam showers. The former will help ensure that the household is drinking clean water daily. “In addition to filtering out contaminants like lead or chlorine, these systems can also reduce smells and tastes that make your drinking water less desirable,” she says.

“Steam showers allow users to relax while enjoying aromatherapy benefits. They are especially beneficial for those with respiratory conditions or muscle tension as the warm steam helps open airways and decreases muscle soreness,” Danielson comments.

“The wetroom is seeing a surge in demand due to its frameless, zero entry design concept that creates an open and spacious atmosphere.” These spaces that place a tub within an oversized shower enclosure provide aesthetic appeal and greater accessibility, but as the Ferguson executive notes, their “increased popularity is largely due to their ability to keep germs from hiding in hard-to-reach places and allows for easy maintenance and cleaning.”

In general, she is seeing an increased focus on hygiene-enhancing fixtures. “Touchless faucets can help limit exposure to dirt and bacteria, while providing users with convenience and ease,” she notes.

Lighting

The pandemic has definitely had an impact on lighting. “Homeowners clean the air with a ceiling fan that cools and circulates the air using ultraviolet technology, verified through independent laboratory testing to kill 99.99% of SARS-CoV-2 (causes COVID-19) and other airborne pathogens while safely neutralizing allergens, odors, and fumes,” Danielson says.

She also points to lighted exhaust fans as problem blockers: “By removing moisture and odors effectively with a lighted exhaust fan, homeowners can prevent mold, bacteria and fungi growth on surfaces in bathrooms, laundry rooms or other humidity-prone environments.”

Danielson is bullish on preset dimmers as a great new lighting option for wellness, she says, noting they “make it easy to adjust your lighting levels depending on the time of day and can be set to ensure you have enough light without causing eye strain or discomfort.” This is a particular benefit to older adults for both safety and comfort. “This age-friendly feature ensures that you don’t have to worry about straining your eyes when trying to find something in a dark area or dealing with overly bright lights when going outside at night.”

Circadian lighting, also called tunable lighting or human centric lighting, is another way to boost wellness in this category. Many more manufacturers are offering these solutions now and the category has massively grown in the past four years, HTA’s Christian observes. This has also led to lower prices and more availability, but you get what you pay for when it comes to this technology, he warns.

Outdoor dark sky lighting is another new innovation that helps the health of your household and the planet. Health-wise, it reduces blue light emitted from LED bulbs, linked to sleep disruption in some individuals, Danielson comments.

Chromotherapy is another great innovation, often used in primary bathrooms. “This type of lighting uses certain colors to promote relaxation and healing properties in the body,” the Ferguson executive says. “Using different shades of blue or purple, you can create a calming environment that will reduce stress and anxiety while cleansing yourself or taking a warm bath or shower.”

Wellness Tips from the Pros

“When looking to upgrade your home in a way that promotes health and wellness, it’s important to visit reputable showrooms and work with a designer or contractor you trust,” Danielson recommends. “There are special certifications for wellness and universal design. For example, a certified universal design professional will help homeowners create an environment that emphasizes comfort and safety for all ages and abilities. Homeowners can ask the designer about their certification and determine if their specialty matches their wellness goals.”

Christian highlights the importance of working with professionals too. “Homeowners, architects, interior designers, and builders need a qualified home technology professional to consult about the latest in wellness tech,” he recommends and this consultation needs to start at the beginning of the planning process.

Mears keeps it simple: “Ask the questions: What is it made of? Do I need it?”

Last Words

One of the happy coincidences of climate change action is that can create healthier home interiors too. This urgency is driving local, state and federal legislation and incentives to reduce fossil fuel consumption, as Mears points out. Since their byproducts go into surfacing materials like LVT, cutting back on their use could lead to healthier homes too. Cutting greenhouse-causing emissions helps drive incentives to swap gas cooktops with induction models. What’s healthy for the planet can be healthy for you and your home.

You don’t have to be a billionaire to make healthy home changes either. “What we are learning is that affordability varies a lot based on budget, region and creativity. And a lot of what we can do to decrease costs or direct the budget to better materials is to change our practice,” Mears shares. She also notes that a simpler material palette might allow for higher volume in selected products and possibly offer better pricing. Being strategic with choices – e.g., a one-coat paint and primer combo – can reduce labor costs and, of course, working with a wellness designer who has relationships with healthy products manufacturers and flexible margins can save the homeowner money.

Resources

  • Healthier Cabinetry – Healthy Materials Lab
  • Materials Collections – Healthy Materials Lab
  • Six Classes: A new Way to Eliminate Harmful Chemicals – Green Science Institute
  • Acoustics Guide – Home Technology Association
  • Technology Resource Guide — Home Technology Association

AUTHOR’S NOTE:

I’ll be sharing more healthy home upgrade tips with Mears’ Healthy Materials Lab colleague Leila D. Behjat, Christian and Danielson in an hour-long Clubhouse conversation tomorrow afternoon (December 7, 2022) at 4 pm Eastern/1 pm Pacific. You can join this WELLNESS WEDNESDAYS discussion here. If you’re unable to attend, you can catch the recording via Clubhouse Replays here or on my Gold Notes design blog here the following Wednesday.

Follow me on Twitter or LinkedIn. Check out my website or some of my other work here.

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