Selling your home can be stressful.  And, no time during the selling process is more stressful than the inspection period.  Sellers wait on the side line while the buyer’s inspector goes through their home with a fine tooth comb.  Afterward, a repair list is submitted with all the items which the seller had no knowledge even existed.  Here are a few things from a Realtor’s point of view to help reduce inspection anxiety.

1.       Consider a pre-listing inspection.  There’s no rule that says a seller cannot hire his/her own inspector before the home is listed.  The seller can learn about hidden defects beforehand and either repair them or disclose them upfront to the buyer.

2.       Do a thorough cleaning.  A gleaming house sends a message that the home is lovingly cared for.  There is less reason to suspect deferred maintenance or problems caused by neglect.

3.       Check the windows.  Inspectors are trained to make sure windows and doors are fully operable.  Check to make sure windows open and close properly and that there are no cracks, broken sashes or broken window seals.

4.       Do the outlets work?  Inspectors will test electrical outlets, GCFI’s and the electrical panel, most of which are outside my scope of knowledge.  What I can do is to find out if the outlets are working and replace ones that don’t.

5.       Complete items on your repair list.  Do you have a “honey-do” list?  Do light bulbs need replacing or drains need declogging?  In the long run, it saves time, money and anxiety to make those minor repairs before listing the home. 

6.       Get current with your seasonal maintenance.   If you have missed a few seasonal maintenance checks, now is a good time to schedule your HVAC, lawn irrigation or other regular checkups.   While you’re at it, change the battery in your smoke detectors and replace your air filters.

7.       Clear away piles of stuff.  The inspector needs clear access to HVAC systems, plumbing stacks and basement walls/foundation.   Clear away anything that would prevent the inspector from being able to access the attic or reach mechanical systems or inspect the foundation. 

Do you have other suggestions for reducing home inspection anxiety?  I’d love to hear them.

'Tis the season for holiday decorating!  For my own home, I say "the more the merrier."  I love coming home to a house twinkling with lights, wreaths on every window and planters stuffed with mixed evergreen branches.  There’s nothing more pleasing than the aroma of fresh cut pine, fir or cedar meandering through the home.   Oh, how I love garlands of holly, ivy, magnolia and mistletoe on my mantel and dining table.

However, when I put on my Realtor hat, I remind myself "Less is More."  Too much of a good thing is distracting and confusing to buyers.  Nothing turns off a buyer more than cramped halls, obstructed entry ways and rooms overstuffed with holiday tchotchke.   So, if your house is for sale this holiday season, DO decorate and DO practice a little restraint.  Instead of using every color of the rainbow, choose one or two predominant colors and maintain consistency throughout your house.  My personal favorite is green with gold or green with silver.  It’s fresh and there is so much variety in evergreen cultivars that you you’ll never get tired of it.  I also think red is festive and appropriate for light filled homes with white walls and neutral furniture.

What do you think, a lot of holiday décor or a little?

Janet Horlacher

Principal, Janet McAfee Real Estate

It may surprise you to learn that the holidays are a good time to sell a home.  Popular opinion tells us buyers are too caught up with travel, social engagements and gift exchanges to look for homes.  The truth is … we sell homes every season of the year.  Holiday buyers are enthusiastic and emotional; they are serious buyers, less distracted by busy work schedules.  Often, they are more motivated to achieve house buying goals during this season of homecoming.     

Myth #1   No one is looking. 

The reality is that when work commitments slow down around the holidays, buyers look online.  Corporate transferees schedule home buying trips over the holidays.  Holiday buyers have a sense of urgency to write an acceptable offer before the end of the year.     

Myth #2   Holiday decorations deter sales. 

There is nothing like an abundance of lights, a fire in the hearth, the smell of fresh pine and a festive atmosphere to make a home look its best.  As long as it’s not overdone, holiday décor makes a house warm and inviting, which appeals to buyer emotions.

Myth  #3   Spring market brings higher prices.

The fact is prices are more a function of supply and demand (market dynamics) and less a function of the season.  Inventory is lower over the holidays; sellers face less competition; and serious buyers are quicker to make a strong offer.   We don’t have a crystal ball to predict Spring prices, but we do know that 2017 has been strong year and there are qualified buyers actively looking now.

Myth #4   Holiday showings are just for “sightseers”

A person who devotes time and energy to view properties during the busiest time of the year is a serious buyer. Sightseers or people just seeking decorating tips are more apt to tour when nothing else is going on.  Serious buyers are out looking during the holidays.

Janet Horlacher, Janet McAfee Real Estate

When a client is dissatisfied with their Realtor, the number one complaint is often lack of communication.   Complaints include lack of feedback on showings, lack of market updates and inability to reach the agent in a timely fashion.   

The frequency of communication should be decided up front when the agent first starts working with a buyer or seller.  There’s no right answer: some clients like to hear from their agent daily; some prefer an automatic alert for all new listings; others prefer a weekly recap of activity.  The important thing is to set up the expectation and then be consistent.

Another communication strategy to establish up front is how you would like to be contacted.  For me, there is no substitute for personal contact.  But I recognize that face to face meetings every day is not realistic.  Decide up front if you prefer phone calls, emails or texts.  Some successful agents schedule a detailed email and phone conversation at a specific time every week. 

How often and which method do you prefer to communicate?

Janet Horlacher, Principal

Janet McAfee Inc.

We have an expression in real estate “you need to sell your home twice; first to the home buyer and second to the appraiser.”  These days, most sale contracts contain a finance contingency or an appraisal contingency or both.  If the home doesn’t appraise for the contract price, the seller may be in a position of lowering the price or letting the deal die.  Both are painful alternatives, especially after a willing, able and qualified buyer has been procured.

Here are steps your Realtor can take to make sure the appraisal process goes smoothly:

1.       Treat the Appraiser’s Appointment like a Property Viewing  – Turn on all the lights, play classical music on the home’s internal audio system, play a movie on mute in the home theatre and have the pool fountains flowing.  Treat the appraiser’s visit like a showing; present the home in its best possible light with all amenities in full viewing.

2.       Provide Access to All Rooms – The appraiser needs to view all floors and measure the home.  A locked room prevents the appraiser from doing his/her job and will likely necessitate a return trip.

3.       Provide a Special Features Sheet and Improvements List – The appraiser is comparing the home to “comparable sales,” but there may be additions, updates, improvements and other amenities which make the home more valuable than the others.  Those upgrades may not be visible upon a cursory view, so it’s important to put them in writing and provide the list to the appraiser.

4.       Give your CMA to the Appraiser – More information is helpful to the appraiser.  Provide the comparable sales analysis which was used to price the home.  Inform the appraiser if you received competitive offers and if they had escalation clauses.  The appraiser will consider all relevant information.

5.       Complete All Repairs Prior to Appraiser’s Visit – If the sale contract calls for repairs to be made, complete them prior to the appointment.  They can impact the value of the home and necessitate a return visit by the appraiser.

6.       Keep Pets Away – Man’s best friend is not a friend to the appraiser, even if he/she is a pet lover.  The pet can be a distraction or an annoyance.  You don’t want your appraiser to leave the premises early because they are afraid of your pets.

Janet Horlacher

Principal, Janet McAfee Real Estate

I believe every home has an aesthetic, whether it be a specific architectural period (like Tudor, Greek Revival or Mid Century Modern) or it could be a certain look (like bright and airy sunlight filled rooms) which strikes us as we tour the home.   St. Louis homes are rich in diversity and architectural interest.

Our job as Realtors is to communicate the home’s aesthetic to potential buyers.  Not every home appeals to every buyer, but there is a buyer for every home.  Each of us carries our own sense of style and perceptions about how our home should look and feel.  Often times, I hear buyers explain their criteria for buying a home with terms like “I will know it’s the right house when I see it.” 

This month we are focusing on how to best present the home’s aesthetic.  With technological advances in photography and digital media, there are so many opportunities to capture the home’s true essence.  With regard to interior photography, it is about more than just high resolution; we look at lighting, depth of field, composition and color.   For exterior, we love aerial, drone video and twilight photography.

Janet Horlacher

Principal, Janet McAfee Real Estate

Smart, cost effective updates and improvements will generate more buyer interest and offer a great return.  Today’s buyers do not want a long list of projects to complete before they move in.  These smart improvements are well worth the investment.

1. A fresh coat of paint goes a long way.  We recommend touch-up painting or if needed, complete interior painting to neutralize your walls.  A fresh coat on trim and baseboards is well worth the expense. 

2. Knobs and pulls.  Replacing cabinetry is an expensive undertaking.  If your cabinets are in good condition, just out of style, try giving them a fresh new look by replacing the knobs and pulls.

3. Remove Old Carpeting. The days of a “carpet allowance” are long gone.  Instead, eliminate negative buyer reactions in the first place.  If you have wood flooring underneath old carpeting, remove and show the wood floors.  If not, replace the outdated carpeting with a neutral color.  You can find a less expensive natural looking wool sisal or sea grass, which appeals to a broad audience.

4. Replace Rotting Windows, soffit or fascia board.  If painting and minor repair work just doesn’t fix the problem, you may need to go ahead and replace it. This is an area where you and your agent’s judgement is required.

5. Landscaping enhances the “Drive By.”  Replacing unsightly trees, planting evergreens for privacy or to screen an eyesore, replacing scraggly hews with tidy boxwood and lining the driving with appealing perennials will generate a positive first impression. Don’t ignore the landscaping; it almost always generates a positive return.

6. When in doubt, prioritize kitchens and baths.  Buyers are wowed by great kitchens and baths.  These areas are more likely to generate a positive return on investment.

On Wednesday, the Federal Reserve announced raising the Federal Funds rate (the rate which banks lend money to other banks for overnight borrowing) by one quarter percentage point.   Historically, an interest rate hike sends Realtors into an emotional frenzy.  This time, however, I have heard very little push back and I think this is why: 

1.       We all anticipated the rate hike.  Generally, we don’t like surprises, so it just confirmed what we already thought.

2.       We are happy the economy is performing better; unemployment is under 5% (4.7% in February); 200,000 jobs are being added per month; and the stock market is at record levels (actually closing higher on Wednesday).

3.       Mortgage rates remain historically low.  After the announcement, the 30-year rate rose from 4.21% to 4.30%.  If you’re like me and purchased your first home with a 12% mortgage, this still seems like a pretty good deal. 

4.       Real estate sales are gaining steam.  In our market area, 65 homes went under contract from Wednesday to Friday.  71 homes are pending, which means they are scheduled to close. 

As Realtors, we can’t predict the future.  But for now, we are seeing positive economic signs, confidence and optimism.  I’ll take that any day!

Janet Horlacher

Principal, Janet McAfee  

“In Like a Lion”

The St. Louis Spring selling market is early and robust.   Consumer optimism, a record stock market, spring-like weather and favorable interest rates have all aligned to create this early surge.  Listings which expired in 2016 have re-activated and have already received offers.   We are seeing declining days on market, favorable pricing and competitive bidding.    The tail wind going into our Spring market is vigorous. 

Here is a snapshot of 2017 versus last year:

·         Closed sales up +2.6%

·         Average sold price up +3.6%

·         Number of sales up +3.6%

·         Average days on market down -20.5%

·         Number of Active listings DOWN -10.2%

What can we expect going forward?

All indicators suggest we are poised for a strong Spring market, provided we fill the listing pipeline.  The number of active listings is on a multi-year decline not only in St. Louis, but around the country.  We need to reverse this slide in order to satisfy buyer demand and prevent buyer fatigue.  The risk when there are not enough relevant properties to satisfy demand or buyers repeatedly lose out in competitive bidding, is that buyers get discouraged and opt out completely. 

Another trend we are watching is Millennial home purchasing (or lack of home purchasing).  This generation, now approaching their 20’s through mid-30’s has surpassed their parents as the largest demographic.  Unlike their Baby Boomer parents, who purchased their first home in their 20’s, this generation is delaying home ownership.  This generation graduated from college with the highest level of student debt in history and the most difficult job market.  Today, the “30 something” Millennials are gaining financial security and entering the market.  Going forward, I believe Millennial housing preferences and purchase cycle will be the most significant drivers in residential real estate.  

Janet

Principal, Janet McAfee Inc.

Today is Groundhog Day, a day which reminds us to change our strategies if we want to achieve different results.  Unless you are Bill Murray, you cannot keep doing the same thing over and over again and expect different results.    This principal could not be more true for listing and selling homes.   If your home has been on the market 60 or more days, we need to rethink our strategies and make some changes to appeal to prospective buyers in a more compelling way.

 There are things we cannot change and there are things we can change.   We cannot change the home’s location, the lot characteristics and the home construction.  It is futile to focus on things we cannot change.  There are many things we can change … and should change.

1.       Price – The price is your invitation to a specific set of buyers to come visit your home.  If no one has accepted your invitation, perhaps you are inviting the wrong group of buyers.  Perhaps the buyers in this price range expect a larger home, more bathrooms, new kitchen.  If other homes are selling in this price range, then perhaps you are being displayed among the wrong group.  You should ask your agent to update the Comparative Market Analysis and determine how your home compares to the others which have recently sold.  If you had showings, what did those prospects end up buying?

2.       Landscaping – The drive by is often the buyer’s first impression.  It is imperative that you continually freshen your landscaping.  Keep leaves raked, gum balls removed, flower beds trimmed and mulched.  The front walk should be swept clean.  Nothing says “this listing is stale” more than old, droopy landscaping. 

3.       Staging – Giving your home a fresh look can bring buyers back to take another look.  Have you completely decluttered?  Neutralized the colors? Rearranged or removed mismatched and overly large furniture?  Stripped wallpaper?  These small changes can help prospective buyers see your home in a different light.  I recommend consulting with a professional stager to get ideas on how to change the look of your home to appeal to more buyers. 

4.       Photography – We know that almost all home buyers are searching the internet for homes.  Change your photography (especially after you have painted and decluttered).  Photograph your rooms from a different perspective and remove photos which captured negative aspects of your home. 

Happy Groundhog Day and Happy Selling!

Janet Horlacher

Principal, Janet McAfee Inc.