Selling a house is a numbers game, the more traffic, the greater the possibility of the sale. So when sellers set up road blocks, making it difficult for agents to show property, and making buyers and agents uncomfortable during showings by hovering, and being combative and territorial, the house has little likelihood of ever selling. The bottom line…sellers need buyers…MANY BUYERS to come waltzing through the front door, unencumbered and free to roam. When you sell your house, you enter one of the most competitive markets ever. If a seller decides to make his house inaccessable, there are simply many others for buyers to choose from, and there goes your sale. Buyers are a sellers best friend, not the enemy. Once a buyer can really connect with the house, you’ve got a sale, and that’s a win/win!

Staging maximizes a homes appeal by showcasing the homes best features, and should not be confused with decorating, which showcases a persons individual style. Staging involves 1. Using neutral colors on the walls and floors to create a calm, soothing, and welcoming impression 2. De-cluttering 3. Deep cleaning 4. Eliminating and/or rearranging furniture to open up space in every room. 5. Accessorizing. If you can “wow” buyers, and allow them to easily visualize their own things in your beautiful home, you’ve got a sale!

Why stage? In today’s market, where competition is fierce, it’s important to do whatever you can to increase a homes appeal and catch the eye of buyers. Buyers look at many homes, and then choose the best. If your home is not among the top, they will move on quickly. Staging gets your house noticed.

Recently, I listed a home that needed updating. The sellers had already put a tremendous amount of money into the property, and felt that buyers should be able to overlook the flaws; the house was empty. The problem with this logic is that the average buyer has very little imagination. As Barb Schwartz, professional stager says “The average buyer can only see, the way it is, not the way it will be”. If buyers don’t like what they see, they move on quickly, or look for reasons to discount. In three weeks, we had seven showings and no offers. It was time to do something. The sellers finally agreed to paint the dark trim and doors white, and stage the kitchen with a beautifully set table and bakers rack. Above the fireplace, we added a warm painting and plant, making it the focal point of the room. Outside on the covered deck, they placed rocking chairs and hanging baskets of flowers. Now the house, which originally felt dark and cold, felt warm and inviting. Within one week, we received a multiple offer, and sold the house at asking price.

Buyers resist staging because it usually takes a bit of work and some financial investment. However, your original investment is almost always less than your first price reduction. Depending on the condition of the house, the cost of staging can very. But the average cost is somewhere between $1,500 to $3,000.

When it comes to homes, I’ve always loved to fix them up and make them look beautiful, so “staging” quickly became a part of my listing service when I entered the world of Real Estate. The more I read, the more I began implementing staging techniques, and collecting items such as paintings, table cloths, duvet covers, and other things that could help boost the homes appeal. There are so many things that can be purchased at garage sales, consignment stores, and even thrift shops that can add tremendous value to your home, so staging does not have to be costly. You just have to use your imagination, and follow simple guidelines.

In this case, the seller had purchased the lake house during a time when our real estate market was at its peak. The prior owner of the house had purchased it for just over half a million as a “flip” one year earlier. He finished out 800 square feet of attic space and then put it back on the market. Joe bought the house for $850,000! The same agent that sold it to the investor client, relisted the house, and then represented both sides of Joe’s transaction. As you can guess, both the investor and agent made out great. Joe was not so fortunate. He put the house up for sale shortly after he purchased it (because of unforeseen circumstances), for just under one million dollars, and to date, the house has not sold. Each month, Joe shells out $3,000 toward mortgage. In two years, mortgage alone has cost him $72,000. (that does not include tax, insurance and maintenance). Joe’s dream house has turned into a nightmare.

Joe informed me that he was ready to withdraw the listing from his agent, and asked if I would meet him down at the home for a consult, and I agreed. From what he described, I was expecting to find a beautiful quiet retreat, away from the hustle and bustle of city noise. He had touted all of the many wonderful features of this home, and truly had no idea why it had not sold. However, as I pulled down the street and headed toward the home, I spotted problem #1. Turns out this quiet retreat was located 300 feet from the main highway. When I opened my car door, you could see and hear traffic whizzing by, the sound was deafening. I rang the bell, and Joe greeted me, and we started our tour. The home was very traditional, with fluted columns, crown molding, and travertine floors. However, when we approached the living room, adorning both sides of a beautiful granite fireplace, were two huge orange modern style veneered shelving units. These cabinets took up the majority of wall space, each about eight feet wide and eight feet tall…they were hard to miss. Then we made our way to the kitchen. The modern style orange veneered cabinets matched the living room cabinets, and the kitchen was very small and dark. The veneer was bubbling in places where it was lifting away from the board underneath.

There’s no question the view out back to the lake was spectacular…if you could ignore the traffic to the right of this scene. Finally, we made our way up to the finished attic. The stairwell leading up to the room was so narrow, and no handrail had been installed because it impeded the ability to carry furniture up and down. The only way to support yourself was by pushing on both sides of the wall with open palms. If you were a large person, you might not be able to make it up at all.

Finally we walked out to the back patio…and I took another deep breath. The entire back of the house was constructed of EIFS (Exterior Insulation and Finish Systems). This is the fake stucco siding that has caused many home owners thousands of dollars in repairs. Many buyers avoid looking at EIFS homes, even if the home is bonded, and agents often avoid showing them without first issuing a big warning to their clients about the product.

After the tour, Joe was anxious for my feedback…the moment of truth. The simple fact was, that given today’s market along with the condition of the property, the house was grossly overpriced. I felt Joe would be lucky if he could sell it for much more than the original investor purchased it for (ouch).

I gave Joe my feedback in the most empathic way that I could. Joe was faced with the decision; reduce the price dramatically and cut his losses (and even with a huge reduction in price, there was no guarantee it would sell), or hold on to the property with the hope that the market would pick up some day. The rose colored glassed had been removed, and a torrent of rage ensued. At first he defended his purchase, challenging my feedback, and then he blamed the listing agent for selling him the house. He needed time to digest this new information. Unfortunately, I never heard back from Joe after our meeting. To date, Joe’s house is still listed at his original asking price.

I have used this recent example because clearly, as a consumer, there are things you should know about before purchasing and selling a home, particularly if you are concerned about resale value. A home is one of the largest investments that most people ever make. Be wise about how you spend your money.

For Joe, this home was an “impulsive” buy. He bought it without doing any research about the neighborhood or recent sales. According to Joe, his agent never showed him comps before he purchased the property, nor did he share with him that the house had sold for $300,000 less one year earlier. Joe’s home was the largest home in the neighborhood. The surrounding area was made up of old homes selling from the mid $100,000’s and up.

So here are a few lessons you might take away from the story:

Lesson 1: When searching for a home, it is always best to find an area where there are many similar homes, otherwise, the smaller old homes keep the newer larger homes from appreciating.

Lesson 2: If you purchase a home on a major street or off a major highway, expect a discount. Understand that when you resell the home, you may be drastically limiting your buying pool.

Lesson 3: Be informed about the kind of materials used on the interior and exterior of your home.

Lesson 4: Finished attic space does not yield the same dollar per square foot value as the main living quarters. This generally applies to basements as well. So while it may add some value, it will not increase the homes value that significantly.

Lesson 5: Always have your agent run comps before making your purchase. It’s important to understand market trends, so that you don’t overpay for your home.

Lesson 6: If you’re going to sell an expensive home, it needs to look high end. When buyers are shopping for homes, they look for reasons to discount. Inexpensive cabinetry turns buyers off. Work with your agent on “staging” and how to present your house in the best possible light. If your agent does not know how to stage a home, hire a professional, or find another agent that does.

Lesson 7: Large Kitchens add value, small kitchens give buyers reasons to discount. Kitchens are important to buyers. If you are concerned about resale value, look for a home with a reasonably sized Kitchen.

Lesson 8: If a home is sitting on the market month after month, make sure you are kept informed by your agent. Usually there is a reason why a house doesn’t sell, and if you’re not being kept informed, be proactive and start asking questions.

Lesson 9: Don’t overprice! By overpricing your home, you will eliminate traffic. Buyers look at many homes before deciding which one to purchase. If there are nicer homes for less money in nicer areas, they will choose to purchase those homes.

Have you noticed…

• Small cracks in the drywall above windows and doors
• Small cracks in the exterior brick motor
• Funny smells
• Floors feel a little uneven
• Sound of water dripping in the walls
• Allergies flaring up (nose running, eyes watering, etc.)

These are my invitations to come visit me, your crawlspace. I know you probably don’t want to visit me anymore than you do the dentist, but you need to, before the pain gets bad- maybe real bad.

When you come in and visit, you’ll need old clothes and a good flashlight, because I have a lot to show you. You might want to bring a camera, too! By the way- entering the crawlspace is not for everyone- so proceed with caution, and at your own risk. If you are not up for it, hire a qualified Home Inspector.

Let’s start with the floor joists over your head- the heavy wooden beams that support the floor. There are a lot of them- and they are very important. You need to look at both sides of each joist, to make sure there is no fungus growing on them. If you are not sure what fungus looks like- but see any kind of regular pattern of spots, you need to call an expert.

While crawling around to look at the joists, it is important you look for the major cause of damage under your home- MOISTURE. Moisture can come from a variety of sources. Here are a few

• Cracks in the foundation
• High water table, underground springs, runoff
• Roof leaks
• Leaking water or drain pipe
• Condensation on AC ducts

If you do find moisture, or evidence of puddles of water, remember that the source can be above you, below you, or from any side. If rain related, and it has not rained for a while, pretend you’re the mars rover, looking for evidence of water, and where it came from.

An extremely common source of crawlspace moisture, in our humid southern climate, is condensation from the AC ducts. Some “solutions” to keep the crawlspace dry, like powered ventilation fans, actually exacerbate this problem by increasing the air flow over the cold duct, increasing the rate of condensation, thus generating more water. The typical solution to this: an electric de-humidifier is placed under the house, and powered fans are turned off.

If water is entering the crawlspace thru the foundation wall or soil- ideally it should be externally blocked and rerouted away from the crawlspace. Sometimes this can be a simple matter of adding hoses to the gutter down spouts. Other times, you will need to install external French drains around your foundation (trenches with corrugated pipe and gravel) to reroute this water.

If water the source of the water entering the crawlspace cannot be identified and blocked, the typical solution is to add internal french drains and a sump pump to extract any water which gets inside. The French drains will all lead to a sump pit, with the sump pump at the bottom.

While in the crawlspace, you should look at your AC ducting. Over time, the tape used to secure the ducting together can fail, leading to leaks. Crawling around can also damage the ducts, so be careful. If you have a leaking duct, this can cause two types of problems. If the leak is on the suction side (the large duct from the return inside your home to the main air handler), you will be sucking crawlspace air into your home- which can be unsafe. More commonly, the leak will be on the distribution side- blowing cold air from your house into your crawlspace. Both types of leaks will cost you for the extra electricity used- but the suction leaks can make you sick too.

Finally, you’ll need to take a look at your foundation. The thing to keep in mind here- if you have cracks in your drywall or brick work, something in your house has moved. There is always going to be some movement of your house- as the temperature and humidity change, materials expand and contract. Don’t be concerned with hairline cracks- but watch them. However, if you can insert something into the crack- the movement is probably due to a shift in the foundation- and should be checked out.

Typically, the foundation walls have a poured cement footer, 18” wide and 12″ deep, which is buried and cannot be seen. On top of the footer, cinderblocks make up the majority of the foundation wall.

If the foundation was waterproofed by the builder, the color of the cinderblocks should be a consistent light gray. Color variation is a sign of moisture. Exterior foundation waterproofing is common in today’s construction, but was not in the past- so it is normal to see some discoloration- and if you don’t have signs of moisture problems, you probably don’t need to worry about it. While looking at the foundation, keep an eye out for termite tunnels.

If you see cracks in the cinderblock motor and/or significatnt discoloration, have a foundation repair company come out and take a look. If needed, they will hand excavate under the original foundation, and poor a “sub foundation” under it to add support.

Piers, the internal foundation supports, should be visually inspected for cracks in the motor, or any lean. If built correctly, the piers should be centered under the beam they support, and should be straight and plumb.

In closing, two other things to look for: Is the vapor barrier (plastic sheeting) completely covering the ground, with overlap at the seams and no holes or gaps? Ideally, the vapor barrier has been run about 12” up the foundation wall, and was tacked in place with wood strips- the purpose being to keep the water under the barrier. Gaps in the vapor barrier can allow Radon gas and moisture an easy path into your crawlspace.

Well, by now, you are probably ready to have a look- or hire a professional. Hope your crawlspace is clean, dry, and stays that way.

I had a good case of what we in the business call “buyer’s remorse”. And this is where many deals are lost, or buyers get themselves into trouble.

What to do when you have buyer’s remorse? First, don’t do anything… initially. Allow yourself to experience the panic. At some point, logic will take over. But it’s never prudent to take any action when you’re so worked up.

Now that you’re calm, sit down and make your wants and needs list. If you already have one, take it out.

Here are the questions to ask yourself:

1. Does the home include the most important things on your list?
2. What were the outstanding qualities of this home that made you want to purchase it – what made it stand out from all the other homes you visited?
3. Were there other homes that met all your needs? Or was this one truly unique?
4. If you could back out of the contract, do you think you could really find a better home?
5. What was special about this home at the time you made the offer and how has it changed – really changed?

There are many reasons why a purchaser experiences “buyer’s remorse”. Buying a home is stressful, and there are many questions and potential hurdles to overcome during the closing process. Your own doubts may set in, or maybe a well meaning friend or relative questions your choice and what you paid for it. But how well do they really know the market? And let’s face it, parents rarely think a house is “good enough” for their children.

When Your Concerns are Valid:

There are times that a contract should be halted. Here are some conditions that may justifiably allow you to back out:

1. The house does not appraise for the purchase price or greater.
2. You can not obtain financing.
3. The home inspections uncover major defects that the sellers are unwilling to repair.
4. The property boundaries are misrepresented by the seller.
5. There are liens against the house.
6. There are problems with the deed.

The contract you have signed is legal and binding. If you decide to breech the contract, you could be sued, or at the very least, lose your earnest money. Your actions are also unfair to the seller, who has put their house in a temporary holding pattern during the closing period. Once the house goes back on the market, the sellers are almost always penalized with a lower offer the next time around.

Moral: Do not buy a home unless you are ready! If you feel yourself becoming panicked, talk to your partner, dog or therapist first… but do not make any rash decisions! Then, take out your list, and answer the 5 questions. Try to identify the real issue that has caused the panic. If your concern is legitimate, seek the council of your Realtor and/or Attorney.

A Happy Ending; we bought our Williamsburg home, and lived there happily for 5 years. We did make many changes, and earned a substantial reward when we sold it for well above asking, with a triple offer situation!

What I Learned: 6 Reasons Why FSBOs are Often Overlooked

1. 8 out of 10 buyers use agents. That means that only 20% of buyers will consider previewing your home.
2. Since sellers pay Realtor fees, buyers have little incentive to purchase an FSBO home.
3. Buyers rely heavily on an agent’s expertise to help familiarize them with different neighborhoods, provide them with recent sales history, and negotiate a good deal.
4. Buyers feel uncomfortable looking through a home with the owner hovering close by. Buyers need the opportunity to scrutinize the home, weigh pros and cons, freely wonder about and explore (remember this is probably the single largest investment that they will ever make). They need space to see if the house feels right — and having the homeowner present feels awkward.
5. Lack of Internet exposure — most FSBO’s do not advertise on the Internet. Without internet exposure, your house is invisible to many buyers.
6. There is no central data base, like the MLS (Multiple Listing Service) for FSBO’s to seek out other FSBO listings.

The Power of the MLS

The FSBO is extremely limited in their advertising, no matter how extensive their advertising campaign. Their intention is to sell their home, and only their home. The FSBO will generate somewhere between 5-10 calls the first week or two. After that, calls will slow to a trickle, as those purchasers that have already seen the ad, move on.

Realtors, on the other hands, use the MLS to sell not only their listings, but others as well. Think about it, if a purchaser is not interested in the agent’s personal listing, the agent has the ability to take them to other similarly priced homes listed in the MLS. It’s a wonderful system, as we all work together to sell each others listings!

We also all benefit from each others advertising efforts. Imagine that you have hundreds of agents using all different forms of advertising to showcase their listings. Each agent will pick up several buyers in a particular price range. Selling a house is a numbers game. The more showings you have, the more likely the sale. So the chances of your house selling when listed in the MLS increase exponentially!

Many home buyers believe that their home’s value is directly proportional to the amount of money they invest toward repairs and upgrades. For example, if they purchased a home for $150,000, then invest $150,000 towards repairs, maintenance and upgrades, their home should be valued at $300,000. Sounds logical, right?

WRONG! Purchasers expect the home they buy should be free of problems. If the home is in bad condition, a purchaser will offer a discounted price to allow for the repairs to be completed. And while there is some value to “upgrades”, most buyers are willing to pay only so much for a home in any given neighborhood. If that price is too high, purchasers will bypass the home in favor of a better valued home down the street or a similarly priced home in a nicer neighborhood.

Remember, the market (buyers) determines the value of a home, not the seller or the Realtor. Your home is only worth what a buyer is willing to pay for it, no more and no less. Purchasers care little about what you have invested in a home if they know they can purchase another down the street for less.

MORAL: Be prudent about the upgrades you make; you may never get that money back in dollars and cents. And know that there are always associated costs that come with home ownership. Hopefully after making any upgrades, your return will come in the form of the personal fulfillment you receive from living in a beautiful home which is now branded with your own style.