Diablo Gazette September 2023
Follow this Advice to Successfully Close in a Crazy Housing Market
The housing market is crazy. With a shortage of homes on the market, how can we ever buy (or should I say win the home)? Here are a few suggestions for buyers and sellers to follow to assist in your success.
Buyers, look for downpayment options. While saving for a 20% down payment, which could take months, a year or more, you could instead purchase one today with as little as a 3.5% down payment.
Approximately 60% of home buyers put down less than 6% of their home purchase. Look into grants, which do not have to be paid back, for first-time buyers and some incentive type loans. Explore those options with a reputable California lender.
Be flexible with your dream.
Consider homes that do not match everything on your list. What about purchasing your “8”? With a few adjustments, you can make it your “10”. Compromise is the name of the game.
Don’t sweat the small stuff.
It is easy to get fixated on the small number, but it is not worth losing the home over a few thousand dollars that could add only a few dollars to the monthly mortgage payment. Often, buyers are unpleasantly surprised when waiting for the next similar home to come on the market they find it priced a few thousand dollars more than the one they passed up. Do not be pennywise and pound foolish. You cannot earn any equity if you don’t own the home. Go for it.
Get a Realtor to represent and guide you. They know the market and they advocate for you. The technique of having the listing agent write the offer does not give you the advantage. How can the Realtor honestly advocate for both buyer and seller? Someone is going to lose, and their seller is their former client. In some states, it is not even allowed.
What can a seller do to get more money or a faster sale? Consider this.
There is a neighborhood with two homes, same floor plan, priced $100,000 apart. What is the difference? A home prepared with staging, attention to details, and presentation will command a better price than one perceived that something might be wrong with the home.
Mind the visuals. Staging is marketing.
Staging and professional photography are valuable marketing services that attract buyers.
Fix flooring flaws. Most buyers in today’s market are from double income households. They have no time nor talent for fix-up projects, so a credit to cover the cost may not be the appropriate concession to close the sale. They do not want the hassle of replacing carpet, refinishing wood flooring, or installing laminate flooring. They want it already done.
Investigate and repair all water stained areas on floors, walls and ceilings. A stain just makes buyers worry there is unseen damage or other problems. Even if you have repaired the issue, do not stop short of cosmetic repair.
Touch up grout and caulking. This is an inexpensive improvement compared to the return you will realize on a fresher looking tub, counter, bathroom or kitchen.
Look at your home from across the street and view it as a buyer. Can you see the house? Is the landscaping trim and lush, green, and not blocking windows and doors? Is the front door inviting? Make sure it appears fresh and clean, has attractive hardware with lights that are free from rust and all bulbs are working. Remember, the “first impression” mostly happens Online.
No odors. Smoke, food, pets, garbage and litter boxes will detract from the home. Use neutral scents, but do not use candles. They are too dangerous and can be knocked over and/or forgotten.
Whether buying or selling, there are plenty of nuances that a Realtor can share that take one to the finish line. Use their knowledge and expertise to your advantage.
