For Sale By Owner Monthly

Ginny Lomagno Cohen is a 30 year veteran of the real estate industry. She owned a successful real estate company in Florida which she sold to a large national brand. Ginny was Managing Broker for two branches of that company and those branches consistently ranked among the top ten offices within the state. She also received her company.s top national management award for each of the last three years, despite the challenges in the market. As a business coach and instructor, Ginny.s expertise and knowledge will provide insight and strategies to help you achieve your goal of selling your home.
Bill Cooke, Publisher

Dear Ginny: There are so many homes for sale now, how can I distinguish my home and set it apart so that it will attract the attention of buyers and I can get it sold?

Dear Homeowner: That is the million dollar question, and I wish I had a quick, magic bullet answer. However it.s a little more complicated than that. First of all, you must be honest with yourself and determine your motivation to sell. Are you a seller who doesn.t really have to sell, but if you get your price, you will? Are you a seller who is testing the market, but would consider all offers? Or, are you a seller who is genuinely eager to sell because of a job change, relocation or some financial strain? Any one of those answers is fine, but your answer will determine how you want to apply the following strategies.

Homes sell or fail to sell because of three reasons . PRICE, LOCATION and CONDITION. Let.s talk about LOCATION for a moment. Obviously, you can.t change the location of your home, but you can emphasize the positives. Why did you purchase this home? Is it in walking distance to schools or shopping . very important in today.s gas-conscious economy. Is there a beautiful sunset from the back porch? Find one or two positive reasons why the location of your home is unique, different or advantageous.

Now we will discuss CONDITION. Everyone feels their home is just fine, and it is . for them!! You must view your home objectively and as a prospective buyer. What does the approach to your home say about the interior? Is it welcoming, clean and well maintained? Is the walkway in good repair? Are there flowers in the garden or weeds? Has the grass been cut and the trees trimmed? Is the paint peeling and faded or does it look fresh and well cared for? Have you had a home inspection recently? Is the roof watertight? Do all of the appliances work as they are supposed to? Remember, you are required by statute to disclose any material facts that would adversely affect the value of the property. Getting the home under contract is just part of the process. Getting the transaction closed is when you get paid. Inspections and repairs often derail a transaction. Know ahead of time what needs to be done and get it fixed. Otherwise, a buyer may ask for more than he/she is entitled to because you become anxious about closing the sale and they use that leverage to extract concessions. The approach to your home or .curb appeal. will set the buyer.s impression of how the home has been maintained. If it is well maintained outside, the buyer is preconditioned to expect the interior will be well maintained as well. If the approach is worn, in disrepair and unkempt, the buyer may not even want to go inside; or, if he/she does, they may have formed a bad impression that will be difficult to reverse.

What does your home look like inside? Remove ALL clutter and personal collections. Otherwise, the prospective buyer is distracted by your .things. and is unable to see past them to the features of the home. CLEAN, CLEAN, CLEAN. If you are sincerely planning to move, you are going to have to pack these things anyway. Think .model home.. Clear off kitchen counters, tables, etc. Pack away your collectibles. Dust and vacuum. Clean windows inside and out. Set out fresh flowers or plants. Be sure the air smells good. Attention smokers: change your AC filters, clean carpets and upholstered furniture, deodorize, and then smoke outside until your home is sold. You may not notice the odor of stale smoke, but I guarantee you that non-smoking buyers will. The same goes for pet owners. Hire a professional stager if you don.t know where to start.

You are going to have to write about your home in a way that will attract buyers. Be sure not to just mention features, but mention the benefits of those features? If you have a great back porch, describe enjoying family meals on the back porch, or watching the sunset from the front porch, or how the huge trees provide refreshing shade and cool breezes during the summer. Your words should be an invitation to a buyer to see your home rather than all of the others.

Finally, let.s talk about PRICE. If you don.t want to do any of the above, then price will be the equalizer. If you have a great location, more buyers will be interested in seeing it; but if the price is too high, they won.t buy. If you have a location with challenges rather than benefits, that will have a negative impact on the price. If you bought the home because .it was the best value for the money., then you have to price it now so that buyers will have the same reaction. How do you determine price? Many sellers instinctively have an opinion with regard to the value of their home . but remember it.s just an opinion. When you put your home on the market, you have to attach a price that attracts buyers because of their opinion of the value. That.s the one that counts . especially with the competition out there today. By the way, regardless of the value or price you and a buyer may agree to, there is a third party to consider . the lender. Underwriting criteria has become much more difficult than in years past and appraisers are under intense scrutiny from banks and federal regulators regarding the appraised value they place on properties, so they are very conservative. You could agree to a price, but the appraisal may not come in at that price and you may have to renegotiate. Often sellers will rely on websites or a friend.s recommendation or base their price on what a house sold for down the street. I would recommend that you collect data from the property appraisers website regarding comparable properties, consider the average time on the market for homes in your area, consider that according to local statistics, prices are down approximately 13.9% since last year, and price it accordingly. You may even want to consider hiring an appraiser to do an appraisal for you. Please be sure to explain that this would be for sale purposes, not refinance, as their strategies may differ. Whatever strategy you use for pricing your home, if you do not attract buyers within the first 30-60 days, I would say your price is too high and potential buyers are rejecting it. Remember, you must deal with time or money. If you have plenty of time, you can wait longer for buyers who may be willing to pay more. However, if you have a need to sell quickly, it is important to attach a price to your home that buyers will perceive as great value.

As I said, there is no magic bullet. Many of you have and will sell your home successfully. I hope that you will take advantage of the tips offered and that they contribute to your successful sale.

Ginny

Dear Ginny: I'm really confused about whether or not now is a good time to buy. What if the prices go down more? What would you recommend?

Dear Reader: I can certainly understand your confusion because the media often issues conflicting recommendations. Whether or not now is the right time to buy really depends on YOUR circumstances. If you can afford to buy and have a reasonable down payment - 10% or more - and if you plan to stay in your home for several years, now is an excellent time to buy. Fixed mortgage interest rates are historically low and you have a tremendous selection from which to choose; so you should find good value.

On the other hand, if you.re not in a position to put down a reasonable down payment and you are not planning to stay in your home for a while, I would recommend you continue to rent and save as much as possible so that you can buy when your circumstances change.

Remember, buying a home depends on YOUR circumstances and not market conditions. I think of all the fortunate people who bought a home and are able to benefit from the tax deduction of mortgage interest while waiting for their equity to increase. Granted, some people are upside down on their mortgages, but they are the ones who heavily leveraged the purchase of a home that was more than they could afford because they took advantage of .creative mortgage. programs. Don.t over extend yourself, stick with a traditional fixed rate mortgage and you will enjoy the benefits of home ownership, income tax savings and equity build-up for many years to come.

Regards,
Ginny
ginnylomagno@fsbomonthly.com