Register for a day filled with information, networking, goodies and fun.  Kelly Swanson will be the keynote speaker encouraging us to "Stand Up and Stick Out!".   The conference is this Friday, Oct. 28th from 8:00 to 3:00 at Embassy Suites Murfreesboro. 

Register online at:  http://www.rutherfordchamber.org/

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Stop by our booth.  We can't wait to see you there. 

It wasn’t long ago that anyone who desired to inspect homes (for a fee) could simply claim to be a professional without meeting any uniform standards.  The Home Inspection Licensing Program was enacted in Tennessee on April 18, 2005.  The law requires every home inspector to be properly licensed with the state of Tennessee.  In addition to the 90 hours of classroom instruction required to sit for the licensing exam, home inspectors must complete 32 hours of continuing education every two years to maintain and renew their licenses.

Even then, it’s fair to say that some inspectors are still better than others.  Knowing what to look for and having the keen eye to spot a potential problem in a home is just the beginning.  The best inspectors will follow a regimented procedure or system when inspecting a home – as much for their protection as yours.  They certainly don’t want to overlook any issues of that may impact the value of the home or completion of the buy/sell transaction.  At the same time, they must maintain a sense of fairness and objectivity and allow some leeway for normal wear and tear.  Simply put, what’s normal in a 20-year old house might be unacceptable in a newly built home.

In addition, most inspectors will provide their clients with a computerized report listing areas of concern and deficiencies.  It will be up to both the buyer and seller, as well as their prospective representatives (real estate agents and/or legal counsel), to reach a mutually beneficial determination of what will or will not be brought up to standards prior to the sale of the home. 

Completion of the home inspection and the buyers’ review of the recommendations is often the finally leg in negotiating the home purchase.  Today, most purchase agreements contain a contingency clause allowing the buyer to terminate the agreement if the seller is not willing to perform reasonable repairs.  It’s not uncommon for the buyer and seller to have very different ideas of what constitutes “reasonable” repairs.

Normally, anything that relates to or can impact the structure of the home (i.e. sagging floor joist, rotting window sashes, water in the crawl space, etc.) will need to be repaired.  Some repairs may require a licensed contractor, but often a good handy man can fix a majority of the items that need attention.  Experience teaches that some items that may at sound serious upon first reviewing the report are not.  Likewise seemingly harmless items often become the sticking point between a buyer and seller.

Originally Posted Sept 5, 2010

Shortly after being discovered, our little (actually fat) intruder returned to the darkness of our crawl space via the same vent he had compromised a few minutes earlier.  Then our real work began.  The first order of business was to get him out of the crawl space.  Fortunately he decided to exit the same way he entered.  Then we turned our attention to clean-up of the damaged and soiled HVAC ducting under our home.  Finally, we focused our attention on preventing a future attack. 

In addition to having a funny story to tell, what did we learn from our experience with the wild?  We learned plenty and some of it may be of interest to you:

• When it comes to paying for the experience, the burden will probably be all yours (in our case more than $2000). Most homeowner insurance policies exclude coverage for damage caused by “birds, vermin, rodents, insects or domestic animals.”  And even if your policy pays the claim, a deductible probably applies. 
• Prevention is the key.  Inspect your home and its perimeter for signs of animal activity – now!  Animal tracks, excrement, scratch marks, offensive odors and other indicators may be indicators that you have a guest living in your crawl space, attic, garage or shed.  In our situation, we saw evidence that groundhog was not the first uninvited guest to visit our crawl space.
• Check the outside of your home for holes or openings near the foundation, under steps or porches and crawl space access door.  Animals of all types can find their way into your crawl space or home by way of the smallest openings.   One common point of access is under the HVAC unit on the outside of the home. The groundhog entered our crawl space through a narrow opening under the HVAC unit where the metal chase protected the main trunk line entering the crawl space.
• Don’t encourage visitors from the wild.  Garbage cans should be closed at all times, even when empty. A weight should be placed on top of the cans because animals can open the lids. Garbage should not be put outside or by the curb until the morning of pickup. Skunks and raccoons will attempt to knock over the can and scavenge around inside, scattering your trash.
• The best way to remove most wild animals outside the house is to place rags that are soaked in ammonia or mothballs around holes, garbage cans and any area you feel trafficked by wild animals. This does not actually hurt animals, but rather drive them away. 
• If you believe a nocturnal animal (skunk, possum, raccoon, etc.) has entered your home, keep doors and entrances to this room blocked so that the animal does not migrate through the house. Next, leave a bright light on in the room and set up a small radio. The bright light and noise from the radio will usually cause the animal to move outside the residence.
• If you are not capable of handling your intruder, it pays to get help from a company that specializes in animal removal, such as Trapper Jack, Wildlife Specialist.  The firm’s expertise lies in the humane trapping and removal of nuisance wildlife; and they are licensed and fully insured.  They operate under the laws of the TWRA (Tennessee Wildlife Resource Agency) and will relocate animals that are captured to a habitat away from your home.

Originally posted May 16, 2010

Ann Hoke leads the award-winning team at Ann Hoke & Associates (affiliated with Keller Williams Realty).  For more information or comments, contact her at 397-4024 or ann@annhoke.com. 

There are several factors to keep in perspective as we move forward.  First, we all need a place to live.  Most of us are blessed with more home than we really need, but all of us need a place to call home.  Our nation’s population continues to grow, so there will be an ongoing need for more housing in the future.  Fortunately, we live in a section of the country that is attractive to many.  The beauty of our landscapes and moderate climate continue to appeal to many who are migrating south to escape the cold, or moving a little further north (from Florida) to escape the wrath of tropical storms and rising costs of living.  Our centralized location, relative to a majority of the U.S. population, continues to position Nashville and middle Tennessee at the hub of the distribution wheel.

Many of us have seen our retirement savings, in the form of 401k’s, IRAs and pensions, erode by 25% and more over the last year, home prices in the middle Tennessee area have faired much better.  Clarksville has actually seen an increase in the average price of home sales, while Nashville and most surrounding areas have seen decreases of less than 10%.  The observation is that our local home values have not suffered the beating that our “global” investment portfolios have – homeownership is still a good investment.

In the coming weeks, we’ll take a much closer look at the details of financial opportunities available to current and future homeowners – assuming our government follows through and provides meaningful legislation resulting in a plan to assist us.  In the meantime, we would like your input into real estate topics or questions that you would like to read about in this weekly column.  Future articles are being planned to cover topics like home appraisals, designer trends, reverse mortgages, 55+ housing, local community information and just about anything else that relates to today’s homeowners.

Originally posted February 8, 2009

There is almost nothing to be gained by beginning the home search without an experienced, trusted agent who is working for you.  It leaves me wondering if sometimes prospective buyers don’t understand the benefits of working with a Buyer’s Agent.  Let’s consider a few of the pluses.

The biggest advantage to signing a Buyer Agency Agreement and working with a Buyer’s Agent is the peace of mind that comes from realizing – “my agent represents me and not the seller.”  Would you hire an attorney who also represents the other party? Would you hire an accountant who represents the IRS? Probably not. So, why would you work with an agent that legally represents only the seller? Without a Buyer’s Agent, you are working without any representation and no one to look out for your best interests.  It doesn’t make sense.

But the value of a professional Buyer’s Agent is more than just loyalty.  The listing agent is legally bound to represent the seller’s best interests – often translated as the highest price and best terms.  As a buyer, where does this leave you? Maybe paying too much for the property or falling short in some other area – overlooking problems with the property, agreeing to unfavorable terms and so on. Buyer Agents are legally bound to represent the buyer. That means he or she will work to get you the best possible price and terms.

You’ll also benefit from a Buyer’s Agent who is well organized with systems to help make your transaction process and transition as easy and convenient as possible. Their goal is to get to and through closing day with a minimum of hiccups – and that’s often the most challenging part.  This will require working closely with a trusted group of lenders, appraisers, inspectors and other professionals of high integrity. 

In addition, the best Buyer’s Agents will provide you with an unbiased look at the entire market and give no preferential treatment to showing their firms own listings. You can be sure that you will view the homes that best match your criteria no matter who is the listing agent.  They will also take time to provide information and educate you on the neighborhood and community. 

No matter how you slice it, in an overwhelming majority of transactions, there is nothing to be gained by attempting to purchase a home without Buyer Representation.

Originally posted January 18, 2009

If history does repeat itself, after slower than normal sales activity in the fourth quarter of 2008, you won’t want to miss a single opportunity to sell your home.  So what is the most important thing you can do to sell your home quickly? 

There are at least four positive steps that every buyer can take to increase their chances of a faster sale in today’s buyers market.   If your home is more than a few years old, some items may need to be freshened, replaced or even updated in order to compete against newer homes.  Even then, the home must be properly staged for presentation to connect with the prospective buyer. You’ll also want to improve your odds by working with an experienced real estate professional that will work hard for you and look out for your best interests. Finally, properly pricing the home is a must.

Determining the right selling price may be the most crucial decision.  Too often emotion gets in the way and sellers try to squeeze just a little too much out of their home – and fall into the trap of chasing the market.  For example, the comparative sales in your area might suggest a listing price of $250,000, but you insist on listing your home just a little higher at $265,000.  Unfortunately, after a few weeks or months your home has not sold so you agree to lower your asking price to $255,000.  Yet during that same time period, the comparable home prices in the neighborhood may have declined to $245,000.  Even as you lowered the price on your home, you lost ground in relation to your competition – in other words you’re chasing the market trend but never catch up to it.  In most cases, the longer it takes to sell, the lower the price will fall… and the more interest you’ll pay.

If your home is priced right, you will normally receive highly interested and qualified buyers during the first four to six weeks after listing. If you have little or no traffic, the home is almost certainly overpriced.  Another rule of thumb is that after 15 showings with no offer, you can assume that the market has rejected your home.  Be realistic and price your home to the market.

Originally posted January 11, 2009

Like many of you, I’ve grown weary of listening to the doom and gloom that airs on the cable news networks.  While some of the forecasts and predictions may ultimately prove true, our nation and its economy are in uncharted waters and no one knows the outcome.  Very few of the pundits consistently predict the future with any real accuracy.  But my real frustration hits a little closer to home.

Week after week, we’re being inundated with headlines depicting the dismal condition of the real estate market.  But the headline and related article rarely tell the real story.  Case in point, a Wednesday headline in the business section of a local Rutherford County paper stated “Home prices post 18% drop in October.”  The headline was misleading and inclined to lead the average reader to an inaccurate conclusion.

At best, the headline was an example of careless journalism. At its worst, it was an attempt to sensationalize the problems and instill fear into the general public.  What were the facts as reported in the article?  The 18% drop occurred over 12 months, not one month as the headline suggested.  Furthermore, the cited index was from a study of 20 unidentified cities.  Most likely, none of them were from Tennessee.   Nationwide or local home prices did not drop 18% in October, not matter what the headline said.

Let’s consider a few additional observations.  For more than a year, we’ve been subjected to a constant parade of articles and photos depicting residential real estate in a pessimistic light.  Many have centered on foreclosures and the decline in home values. Have you taken the time to read more than the headline or photo caption?  In a majority of the instances, the story relates to far away places – Las Vegas, California, Florida, Michigan and so on.  While our local market is undeniably under stress and undergoing adjustments, we are not suffering to the extent that the national media depicts.

The Federal Housing Finance Agency, in its last quarterly report, indicated that prices have dropped year over year in only 104 of the 292 metropolitan areas it tracks. Only 19 metro areas have seen a decline in values over a five year period – mostly from economically devastated Michigan and now-deflated inland areas of California.  In fact, some markets are actually appreciating.  Where have you read this information recently?

Over the next few weeks we’ll take a closer look at the numbers as they relate to us in Rutherford County. While we are all impacted by the good and bad of the “global economy,” we still live in a micro world.  Real estate has always been, and arguably still is, a local phenomenon.  Until we meet again, use caution as you peruse the headlines.  They seldom tell the real story.

Originally posted January 4, 2008

In our case, the master bedroom and most living areas are downstairs.  Fortunately in Rutherford County, there appears to be an ample supply of homes with at least one bedroom located on the first floor.  We often associate downstairs bedrooms with “older” homeowners, but the reality is that residents of any age will benefit from this feature.  Chances are that many of us will be temporarily inconvenienced at an early age with difficulty climbing stairs. 

But the downstairs bedroom issue looms even larger when we consider caring for aging parents.  You might find it beneficial if building a custom home, or even looking for the perfect resale, to choose a design with more than one bedroom located on the first floor.  Ideally this option would provide you with greater flexibility in the future if one of more members of the household has difficulty with navigating stairs.  However, you will find fewer choices when looking for a plan with two or more bedrooms on the main level.  Lot sizes and construction costs make it difficult and more expensive to build.

Another thought worth considering, is the future adaptability of your home to meet certain requirements of the American Disabilities Act.  Basically, by following some of the ADA’s guidelines, you could make your home more accessible and convenient for future living.  It should not add significantly to the cost of your home to think ahead and oversize most doorways to accommodate a future wheelchair.  With a little more foresight, you might even oversize some areas of your bathroom and reinforce that walls to allow for future installation of grab bars and other support.

So far, we’ve focused only on the bedroom issues.  But with my husband on crutches for the next six weeks, our challenges are even greater.  Both our home offices and game room are located on the second floor.  On a temporary basis he’ll have to work from the downstairs kitchen and won’t be able to watch football or movies on the big screen.  I’m betting that he’ll in a few days that he’ll learn to climb stairs on crutches, but even that represents somewhat of a safety concern.

Most of us struggle just to keep up with today, but sometimes it’s good to think and plan ahead.  For the moment at least, we would be better suited to a home with all bedrooms on the first floor.  How about you?

Originally posted December 21, 2008

On Thursday, Freddie Mac reported that average rates on 30-year fixed-rate mortgages dropped to 5.53 percent.  Believe it or not, this is the largest one-week drop in 27 years, and brought rates nearly as low as they were in early January.  Compare these to the 10 percent rates in 1990 (when we were relocating from Nashville to Pittsburgh).  If you’ve been thinking about buying or selling, there may never be a better time than now.

And there are hints that more help could be on the way if the government launches an industry-backed plan to lower the rate on a 30-year mortgage to 4.5 percent by spending hundreds of billions to buy mortgage-backed securities issued by Fannie Mae and Freddie Mac.  If you’re looking for a new home, there’s no better interest rate news than this.

Want more good news?  We live in one of the best cities in America to raise kids.  That’s right!  Business Week magazine recently included Murfreesboro among the best and most affordable cities in the U.S. to bring up a family.  The outside world is already discovering what Rutherford County residents already know.   So, what’s the benefit for you and me?  Our property values should continue to appreciate (after the recession passes).  We will continue to attract newcomers due to our growing retail base, new hospital, MTSU and other attractions which for the time being it equate to a high quality of living.  Best of all, you can still buy a home in our county for much less than you might pay for a similar property in the county immediately to our west. 

Just remember that when our real estate market is compared to the state and national statistics, we’re holding our own better than most.  There has never has been a better time to take advantage of the market.  The increased inventory offers prospective buyers a wide range of choices at all price levels – both new and existing.  But, have you noticed that new home inventory has begun to fall and not many new homes are being started?  Before long the market will return to a steadier pace and the huge incentives that are being offered will one again, fade away.  It’s time to act now and take advantage while market conditions favor the buyer.

Originally posted December 7, 2008

It’s probably obvious that there are two sides to almost any transaction – representing the seller or buyer.  What you may not realize is that under Tennessee state law, a licensed real estate agent must disclose his or her relationship in the transaction in written form.  Most of the time the listing agent will represent the seller as a Designated Agent for the Seller.  Occasionally, the agent will act as a Facilitator and not legally represent the special interests of either party in the transaction.

So, why is it just as important for the buyer to take the time and select an experienced and qualified agent as it is for the buyer?  The logical answer is that not all Buyer Agents are created equal and you should want the best available to look out for your interests.  What makes for an outstanding Buyer Agent?  Well, in addition to the general items we’ve discussed in recent weeks, there are some specifics to consider – and not necessarily in the order of importance.

First of all, you should select a Buyer Agent that you feel comfortable with.  You are going to rely upon this individual to help make some very important decisions, so trust and credibility are a must.  In addition, you’ll need to feel comfortable with their communication style.  You’ll want them to keep you informed along the way, respond to your questions and requests in a timely manner, and keep their promises to you.  Furthermore, make sure that you select a Buyer Agent who will really list and understand your needs.  They may be working with several other buyers at the same time, but you want them to make you feel special… and listening is a very important ingredient.

The process of finding a home is more difficult than just searching online or driving through communities looking for any home that catches your eye.  Your Buyer Agent should be up on the latest market trends – absorption rates, average days on market, pricing trends and so forth.  After all, if they’re not experts in this area, how are they going to help you negotiate a contract to purchase your new home?  A misinformed agent can harm you either way – by misguiding you to offer too much or too little for the home.  Both extremes can sour a potential deal.  And there is more to negotiating the deal than just the price.  Terms and conditions can make of break the transaction, so you need a savvy agent that knows what to ask for… and sometimes when to back off.

You’ll also need an agent who knows vendors and professionals of all sorts who can assist you in making the transaction come together.  For example, with the financial markets in an uproar, ethical relationships between agents and mortgage lenders can spell the difference between closing on time and not closing at all.

And finally, it goes without saying that your Buyer Agent should be a great source of community information. He or she should be able to point you in the direction of almost anything you need… or respond back quickly with the details if they’re not already at their fingertips.  Don’t make the mistake of buying a home without a qualified Buyer Agent who is dedicated to your needs.

Originally posted November 30, 2008

In most instances, the listing agent serves as a Designated Agent for the Seller and has a legal obligation to look out for the best interests of the seller.  Trust and integrity are important, but so are the basic skills required to list and sell your home.  Whether you chose to interview one or several agents before selecting the right fit, there are several things that you’ll want to consider.

Asking how long the agent has been in real estate is a good place to start.  In a difficult market you should look for an experienced agent with a strong track record. Why not follow-up by asking about recent performance?  Most agents should be more than willing to discuss results such as sales vs. price ratios, average days-on-market and number of current listings or sales per month.  You certainly won’t want to rely solely on this information to make your choice, but it may be a reflection of your prospective agent’s knowledge and full-time commitment to selling homes.

Every agent should be willing to share a marketing plan and explain the various tools he or she will use to prep and market your home.  Ideally, they will have a proven process for making your home “market ready” which may including staging your home for stronger appeal to the target buyer.  Marketing plans should include an explanation of online and media resources, as well as networking that the agent will engage on your behalf.  Depending on the type and price range of the property being listed, there may be advantages to working with an agent from a real estate brokerage (company) that has national exposure.

You may want to consider an agent that has a specialization or niche marketing experience that will benefit your situation.  This could be in the form of home preparation and staging, as mentioned above, or possibly include unique training to deal with stressful financial situations, including divorces, bankruptcies or foreclosures. Additionally, it may be helpful to know if the agent has been approved to work with relocation companies.

While all of the criteria we’ve discussed are important, maybe none is more important than selecting an agent who will work diligently on your behalf and communicate on a regular basis.  It is unreasonable to expect daily progress calls, but a good listing agent will keep you informed of prospective buyer feedback on a regular basis.  Above all, they will do everything possible to negotiate an acceptable offer from a ready, willing and able buyer.

Originally posted November 23, 2008

There are four general areas that you will likely consider before engaging any professional on your behalf – and selecting a real estate agent should be no different.  You will benefit by researching and choosing an individual who is qualified and committed to taking care of your needs.  In simplest terms, you should choose a real estate agent based on reputation, knowledge, experience and professionalism. 

Your friends, work associates and others that you know might be a good resource for determining if your prospective agent has a good reputation.  If you’re fortunate enough to know individuals who have been a client of the agent, you may want to inquire about their level of satisfaction. Was the agent responsive to the client?  Did the agent set performance expectations and live up to them?  Did the client’s needs always come first?

Just like in any business, some agents are more knowledgeable than others.  It would be wise to select an agent who is up to date on the market trends – both locally and nationally.  Market knowledge is critical in relation to home values, neighborhood and community services, property appreciation, financing and much more.  Most of this knowledge comes from real world experiences learned over time…only a small portion can be learned by spending a few days in a class or online research.  Many agents have earned designations that indicate successful completion of specialized study.  But be sure to ask questions if you’re looking for proficiency in a certain area.  For example, if you need an agent with an expertise in providing services to seniors, ask questions and determine if they really do know their stuff.

In these difficult times, you will benefit from choosing an experienced agent with a track record of being a problem solver.  A majority of today’s transactions require creative strategies to work through marketing, negotiation and financing issues. You may want to ask your prospective agent if they are engaged as full-time or part-time real estate agent.  It might surprise you to learn that only a small percentage of agents close more than 10 transactions in good year.   

Your objective should be to select an agent with the reputation, knowledge and experience to represent your best interests whether you’re selling or buying a home.  If you’ve chosen well, you will have found an agent that demonstrates professionalism at every turn – prompt, courteous, honest, organized and capable of delivering on their promises.

Originally posted November 16, 2008

In recent weeks we’ve seen a wave of steep discounts approaching 20% (in some cases more than $50,000) on some new homes.  Many of you are now asking, “What effect is this going to have on home values in my neighborhood?”  The real answer is complicated, so let’s talk in very simple terms. 

No one likes to see a new home in their neighborhood being sold at prices way below market value, or for that matter, foreclosures on existing homes.  Both can have a negative impact on neighborhood appraisals and your ability to sell your home in the short run.  When builders sell a new home at outrageous discounts, chances are the property is selling at a substantial loss.  In other words, the builder is sacrificing more than just their profit.  They may be writing a check that reduces the company’s capital or comes out of their personal savings.  And the main reason they’re willing to sell at a loss is to stop the bleeding and get out from under the interest expense that continues to grow – month after month.

When a builder unloads a home way below market value the only possible most likely benefactor is the new homeowner.  But even then, the prospective buyer of such a home will need to exercise caution.  Some new homes selling at huge discounts may not be completely finished or hiding unknown problems caused by delays in the construction process – especially if the home was not properly dried in.  If the builder is going out of business, the buyer will want to know who (if anyone) will assume the liability for call backs and warranty work. 

In the short run, if you’re trying to sell your home in the same neighborhood, you may face stiffer competition until the builder’s home is sold.  However, the long term outlook is still positive.  The sales price of a new home is comprised of several items –land, fees and permits, materials, labor, overhead, financing costs, sales or marketing expenses and profit.  Historically, land prices have always continued to rise and should in the future (in fact some experts predict a shortage of building lots as early as early 2010).  Same story on materials.  Although the inflation adjusted cost of some materials has been reduced over time, new innovations and features continues to drive the effective cost of materials  higher.  Labor is the same.  It seems that every improvement in efficiency in the home building industry has been met by an increase in cost imposed by local, state or federal regulations.  For example, by 2011 it is likely that all new homes will be built with a code-required fire sprinkler system that will add several thousand dollars to the average home price. 

While we may eventually see a reduction in the size of future homes, it is unlikely that the average cost per square foot will do anything but increase over the long run.  Sooner or later, the economy will stabilize and new homes will be selling at or above historical values.  Your community will recover and life will go on.

Originally posted October 19, 2008

More often than not, the auction process is chosen when a seller is seeking immediate action to divest of the subject property.  Maybe the heirs are primed to cash out the family estate after the passing of a loved one.  It is also possible that some other personal circumstance (bankruptcy, divorce or dissolution of a business partnership) is motivating the decision to sell the property at auction.  Whatever, the reason, the seller may have determined that selling their property in a public forum, through open and competitive bidding, offers potential benefits over conventional approaches.

While the seller will likely be required to pay an advance fee for advertising expenses, there are potential benefits that may offset the risk and make this approach appealing.  First, under normal circumstances, selling a property at auction exposes the real estate to a wide number of potential, qualified buyers.  It also allows the seller to set terms and conditions with the expectation of a quick turnaround.  In other words, a seller can plan when the property will sell (assuming the bids meet the terms and conditions) and, eliminate numerous and unscheduled showings.  Hopefully the property will attract competitive bidding and yield its targeted selling price and net proceeds.  Best of all, auctioned properties are usually sold “as is, where is” and there are no contingencies to the sale.

Are all properties suitable for auction?  No, but most properties, including residential homes, commercial buildings, farms and lots can be sold at auction.  However, not all properties that go to auction, actually sell.  In some cases, the seller reserves the right to accept or decline any and all bids.  In an Auction with Reserve, the minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified time period. Some properties are sold at Absolute Auction, which means that the property is sold to the highest qualified bidder with no limiting condition or amount.

So, if the idea of selling your home at auction sounds appealing, maybe its time to call your real estate agent and discuss the pros and cons as they relate to your particular situation.  Once you determine that an auction is your the best approach to a quick sale, your agent will assist you in selecting an auctioneering firm to guide you through the process.

Originally posted October 19, 2008

There are more than 2500 homes listed on the MLS in Rutherford County – including new and “experienced” (more often referred to as existing homes) single family homes and condos that span a wide array of price ranges. What can you do to separate yourself from the pack? The answer may be as simple as staging your home.

Staging refers to a process that neutralizes your home with the intent of appealing to as many prospective buyers as possible. In other words, you’re trying to eliminate as many objections as possible so that no one will be turned away when they first open the door. You might need to temporarily put away some of your prized possessions, if there is any chance that someone else may find them les than desirable.

Most homeowners will need to engage the assistance of a professional to guide them through the process. Our unique StagingMagic^SM service begins with a “market ready” list of action steps designed to help your home sell faster at the best possible price. National surveys have shown that staged homes sell for up to 7% more than homes that have not been staged… and more than twice as fast! For the most part, we discussed the general principles behind updating your home last week. One of the most important considerations during the freshening of the home is paint, flooring and/or counter upgrades. It is critical that selected improvements are neutral and in style with current trends (including any accent colors and finishes).

Once all of the updating is complete, the staging team merchandises your home by carefully positioning small furniture and other home accents to present a look and feel that will generate stronger buyer interest – even in a tough market. The objective is to create an atmosphere that appeals to the senses of as many prospective buyers as possible. The desire is to create an emotive connection that enables them to visualize themselves living in your house. It helps when the staging coordinates and ties everything together.

While staging may look easy, be careful not to confuse the concept with decorating. It is very important that you select qualified professionals to stage your home and guide you through the entire preparation process. To round out our series on preparing your home to sell, next week we’ll explore ways to identify the right people to help maximize your value.

It’s been said that history repeats itself.  If that’s so, is there an historical perspective that might give all of us hope that an economic recovery and brighter future will return?  There certainly is. 

While I’m no economist, I am an optimist and encourage you to consider the past as we look to the future. Chances are that you have forgotten or never experienced the real estate troubles that throttled our local and national economy almost 20 years ago.  In the late 80s and early 90s, the U.S. economy was mired in a downturn that eventually led to the failure of more than 3,000 banks and savings and loans (S&Ls)… and our nation survived it.  The Resolution Trust Corporation (RTC), a U.S. government-owned asset management company, was organized and authorized to liquidate the assets (primarily real estate-related assets, including mortgage loans) of failed S&Ls. Eventually the real estate market recovered, home values began to appreciate and everything returned to normal for a period of almost two decades.

In some ways, today’s problems are similar to the situation that our country faced in 1989.  There is an oversupply of new and existing homes on the market. Our country is in or nearing an economic recession.  But there is one huge difference – mortgage interest rates are about half of what they were 20 years ago.  Back then rates were hovering around the double digit mark.  That’s right, when our nation worked its way through the  real estate valuation correction of the late 80s and early 90s, mortgage rates were around 10% for a 30-year fixed rate. 

So, is now a good time to sell your home? That depends entirely on your personal financial situation.  If you’re inclined to view the glass as “half-full” and are looking for a larger or more expensive home, there may never be a better time than now to make your move.  For example, let’s say that you’re able to sell your current home for $210,000 and realize a loss of $20,000 compared to what you could have sold it for a year ago.  Its understandable that this is discouraging, but you haven’t considered the whole picture.  Stop and consider the potential savings on the home you can now purchase.  Let’s say that you then purchase a new home for $430,000, at a savings of $45,000 compared to what the same home would have cost only a few months earlier.  Simple math says that you have made $25,000 on the transaction ($45,000 savings on your new purchase, less $20,000 setback on the sale of your home).  And depending when you purchased the home you’re selling, there is a strong possibility that the interest rate on your new loan is less than the rate on your previous home.  You might actually win on two fronts.

Now, does the above scenario work for everyone?  Obviously not, but for some it will and that’s the perspective we need to see and understand as the market transitions through this period of correction. That’s the experience we need to carry forward if the old axiom holds true… and history repeats itself.

October 12, 2008

Many objections such as architectural design, location or school zones can’t be modified to attract a buyer.  You can’t just pick up and move your home to a different school district.  Instead, you’ll need to be patient and wait for the right buyer to come along and fall in love with your home.  Better yet, you can take an aggressive approach and try to avoid common mistakes and missed opportunities that would have hastened the sale.

There are at least four positive steps that every buyer can take to increase their chances of a quick sale even in a buyers’ market.   Properly pricing the home is a must.  In addition, if you’re your home is more than a few years old, some items may need to be freshened, replaced or even updated in order to compete against newer homes.  Even then, the home must be properly staged for presentation to connect with the prospective buyer. Finally, you’ll want to improve your odds by working with an experienced real estate professional who will work hard for you and look out for your best interests.

Determining the right selling price is one of the most crucial decisions you can make.  Too often emotion gets in the way and we try to squeeze just a little too much out of our home – and fall into the trap of chasing the market.  In other words, the comparative sales in your area might suggest a price of $250,000, but you insist on listing your home just a little higher at $265,000.  Unfortunately, after a few weeks or months your home has not sold so you lower its price to $255,000.  Yet during that same time period, the comparable home price has declined by 3% to $242,500.  Even as you lowered the price on your home, you lost ground in relation to your competition – in other words you’re chasing the market trend but never catch up to it.  In most cases, the longer it takes to sell, the lower the price. 

If your home is priced right, you will normally receive highly interested and qualified buyers during the first four to six weeks after listing. If you have little or no traffic, the home is almost certainly overpriced.  Another rule of thumb is that after 15 showings with no offer, you can assume that the market has rejected your home.  If price is not the factor, something else is... and we’ll take a look at other possibilities next week.

Originally posted September 3, 2008

Over the last several months, the Rutherford County market has moved from a balanced market (relatively equal number of buyers and sellers) to what is commonly referred to as a sellers market.  Several market conditions have changed during that time, including a reduction in new homes starts and a tightening of the financial markets.  The slow down in new home sales has forced builders to lower prices to a point where new homes compete even more directly with existing homes based on price. 

So what can you do to maximize the equity and relative value of your home prior to offering it for sale?  Regardless of the age of your home, you need to make any obviously needed repairs to damaged walls, squeaky doors, leaking faucets, etc.  Almost 100% of homes sold today are contingent upon completion of a home inspection, so while you’re at it, you might as well repair anything and everything that you know will be of importance to the future homeowner.

If your home is more than a few years old, some items may need to be freshened, replaced or even updated in order to compete against newer homes.  You’ll need to make sure that all light fixtures are in working order including exterior lighting.  Overgrown landscape must be trimmed (in some cases removed or replaced) and a fresh layer of mulch added.  Be sure to clean away dirt and grime from the windows, entry ways, and exterior siding.  Prospective buyers often make a discerning judgment about your home within the first minute or two – sometimes even before walking inside the home.

At a minimum, you should consider upgrading outdated light fixtures, faucets and cabinet hardware.  You will also need to touch-up heavily trafficked areas with a fresh coat of paint and in some cases update with accent colors.  Counter tops and flooring upgrades may need to be considered if your home is priced above $250,000.  It is very difficult to compete against newer homes in the upper end without solid surface counter tops (granite or other) and some tile or hardwood flooring. If you’re handy with tools and a paint brush, many of these touch-ups may be do-it-yourself projects.  If not, there are reliable specialists that focus on these types of home updates.  No matter which route you choose, make sure the job is done well.   

Most of the time, today’s buyers want to purchase a home that is ‘move-in ready.”  Those who don’t have that desire will expect to purchase a home at discounts well below what sellers wish to sacrifice.  Therefore, you need to carefully evaluate the upgrades and improvements necessary to bring your home up to a level that will favorably compete with other homes for sale. Next week we’ll discuss how “staging” relates to these improvements and maximizes your investment.

Originally posted September 21, 2008

There are several things that you may want to consider before selecting a competent real estate professional to represent you. In Tennessee, real estate agents must be licensed by the Tennessee Real Estate Commission to represent buyers and sellers in real estate property negotiations and transactions and receive any type of compensation. However, not all licensed real estate agents are REALTORS. Only real estate professionals who are members of the National Association of Realtors and agree to uphold its Code of Ethics and Standards of Practice earn the right to be called REALTORS.

You'll want to know how many homes your prospective agent sells on an annual or monthly basis. Did you know that 80% or more of all homes are sold by less than 20% of all agents? The reasons are many, but in simplest terms the top producers in any market are dedicated full time to their business. They are also keenly aware of changing trends, especially as it relates to pricing and marketing your home.

You should find value in many resources that most active real estate professionals bring to the table. They should have knowledge of the reputation and abilities of other industry providers that will help you through selling or buying a new home (painters,movers,landscapers, etc.) and are usually willing to recommend two or three for you to talk with. While it's helpful to have a recommended list of contractors and vendors who will help make your home market ready, it's even more important to know that your agent has a good track record of working with industry professionals ( home inspectors, mortgage originators, closing attorneys, etc.) in addition to fellow agents. In this day and age, you never know when your agent's relationships, professional to professional,  might be the glue that holds your deal together at the closing table.

Finally, and maybe most important of all, you'll want to consider the professional skill level and integrity of a prospective agent. Does he or she appears knowledgeable? Do you trust them? Can they answer difficult questions? Do they ask good questions of you? Are they willing to go the extra mile? Do they suggest innovative ideas and approaches that you have not considered? Do you have the confidence that he or she can get the job done? And in the end, maybe the most important question... does this agent really care about me?