Took the First Step to Sell the House!!

Parent Cafe
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<p>1moremom, according to my realtor the best time to sell is in the middle of winter. With delays in negotiation and loan approval and closing that it what it takes to be able to move in the early Summer. I was not looking at 2500sf houses. There are many places in the US where a newish 3/2 ranch is at or under $200k.</p>

<p>thumber1, yup selling a house is a pain. Our house is in need of kitchen and bath remodelling so we did as much “staging” as possible. We had special bedding, towels, etc. We also cleared out most of the furniture and stuff to make the house look neater and more spacious. It is a nasty pain trying to live that way.</p>

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<p>The “tear-down” market is quite thin. Most builders are sitting on houses that they built over the past three years and are unable to sell for what the builder believes the house is worth. They can’t buy more land until they sell what they already own. There may be some “tear-down” buyers around looking for a lot that they want to live on, but those are a great deal fewer. The new economy has people not buying things that they really don’t need, and a completely new large house falls into that category for many more now. </p>

<p>This market reminds me of a comment a friend of mine made. He had to sell a NYC coop apartment in a fairly soft market many years ago. His observation: When prices are rising and houses/apts are being bid away from you before you can make an offer, you ignore various “imperfections” and shortcomings in the dwellings, as well as the pricing, just so you can get into something before it runs up another 5+ %. But in a soft market, where buyers are aware that everything is sitting there, and will very likely still be there in another month or three, there are no “minor” imperfections. Everyshortcoming of the lot or house is a big deal. There are too many other alternatives, and no time pressure. To a great extent, the only tool the seller has to work with is the price. </p>

<p>I’d take a look at the recent sales in your area, and compare them to what your local assessor appraised the house for last (often available online these days). In my area, which is not all that different from your part of CT, I think, many recent sales have been about 10-15% under what the assessor thought the house was worth a couple of years ago. Yours may be different, but it makes a lot of sense to do the numbers yourself instead of relying on your realtor. About one in ten actually understands the markets.</p>

<p>Depending on how long you’ve been in your house, you may have a gains tax to pay. The rules have changed on that from the days long ago when it was deferred by buying a new house that was as valuable. Also, in 2013, there is a 3.8% surcharge for higher income people on all “so-called” unearned income, which could include the gain on your house if it is above that specified level at which politicians thing that their votes will be affected.</p>

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<p>VeryHappy: We sold our house in your neck of the woods (not fairfield though) summer ‘09 after being on the market more than a year – I hope things are much better now!!! If I had it to do over ,(1) I wouldn’t pay any attention to the realtors’ pricing suggestions, but just look at the last six to twelve months actual sale prices for houses in my town, regardless of being a “comp” and list at a little less. This may seem very obvious to everyone else reading but it wasn’t to me :frowning: A problem we ran into was that no one was willing to buy in the price range we were in. It had nothing to do with the house itself - a gorgeous antique on acreage that soon became a weekend tour event for local residents, their out of town friends and visiting family members. The one open house had more than a hundred visitors and went on an hour past schedule! It became quite ridiculous. (2)If it doesn’t get some serious interest in the first month, I’d just take it off and wait at least three months to try again: what the realtor who bought my house did to sell hers.</p>

<p>Good luck good luck good luck!</p>

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<p>Although the circumstances were very different we sort of did what you are thinking of doing. My H had a heart attack when our D was a senior in HS. Due in large part to a very stressful job situation. He took a lateral move within his company to move away from a boss who was his main source of stress. </p>

<p>We did have a buyout and the company did pay for our move but we lost a bundle on the house. 2 1/2 years later, it’s been great. He loves his new job. I love our new house and we live a less stressful life.</p>

<p>It hasn’t been perfect. I haven’t been able to find a job but hope that economy is improving up a bit and I will find one soon. We both miss our friends but are making new ones and love the outdoor opportunities that our new location offers.</p>

<p>We also traded our older house for a relatively new one. In the older homes we had always lived in, I felt like we just plugged holes instead improving our house. In the newer house, we do improvements that improve our quality of life and make the house more enjoyable. Not having to stress about the aging heating system and roof is so wonderful. I do have to admit that we bought a bigger house than the previous one. To have a master bath and an attached garage is heaven!</p>

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<p>My CA home sold a few weeks ago, within 3 months of listing. The ex and son were living there last few years, and I had no physical part in getting house ready for sale. </p>

<ol>
<li>House was priced low</li>
<li>As suggested by another poster, got full inspection report, then had realtors bring in a team to complete those projects.</li>
<li>Realtors arranged for house to have full cleaning, including windows.</li>
<li>Realtors and my lawyer forced the ex- to move out his stuff and disposed of all the old, filthy furniture</li>
<li>House then staged with flowers, etc</li>
<li>House sold “as is”</li>
<li>Little back and forth bidding–just splitting the difference</li>
</ol>

<p>Honestly, the hardest part was dealing with the ex-</p>

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<p>The folks from whom we bought our house had it deep cleaned after they moved all of their stuff. We didn’t know til we walked into the house after closing. I can’t tell you how nice it was to come in and not have to do a thing. Decided on the spot that we would do the same thing when we sell.</p>

<p>Would love to get it deep cleaned right now, though!</p>

<p>Tear-downs seem to be very much a neighborhood-by-neighborhood thing. My boss lives in a part of Bethesda where most of the 40s and 50s-era houses are getting torn down and replaced with bigger structures. There are some builders doing it on spec (even in this market, they seem to be making a profit), some folks are doing it after they buy. The value of the lot and proximity to DC are sufficiently valuable that it seems to be worth it financially. Heck, even out where we are, our lot is worth more than our house.</p>

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<p>When we sold some rental properties, there was no one living in either. We replaced the carpet & damaged cabinet (as recommended by our realator). We also bought cute shower curtains, soap dish & towels. I believe we may also have painted one or both places, but can’t remember. Both places sold after the 1st viewing BEFORE they were even listed. We never got any backup offers, so we don’t think they were underpriced. We were very happy because it allowed us to purchase a home we really liked with the equity proceeds.</p>

<p>Staging can really help, as can replacing carpet–I think it cost about $1000 (much less expensive than you might think). Have read that baked bread, baked cookies, boiling cinnamon sticks and vanilla are good scents that help make a home more saleable. The housing market at the time was so-so.</p>

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<p>To start your house-hunt, look at Trulia.com…has national listings, you can look at houses by listing date or by date the price dropped, etc. Helps you get an idea of what you can buy for the money and what the market in your target area is like. This is also a useful tool for pricing your own house appropriately. You’ll need to go lower if there are lots of foreclosures in your area, for instance. </p>

<p>Some very nice and inexpensive houses can be found around Atlanta, for instance. I looked and drooled but didn’t want to move that far South because of sticky summers. </p>

<p>Have a good, honest friend walk through the house and tell you what needs to be done. We just don’t see/smell(!) problems after we’ve been living in a place a while. You may have to spend a couple thousand to bring it up to standard but it is so worthwhile not to have the property sitting for months. </p>

<p>I agree that Design to Sell is misleading because <em>everybody else</em> has to pay for labor. But it makes some good points about having the house clean, uncluttered and freshened up. New faucets do a lot for a bathroom and kitchen…bringing it up to date for little money. My stager told us to get rid of anything that was even faintly ‘country’. Painted knobs in the kitchen, check wallpaper, dried or silk flowers…all that got pitched. A plain bedspread (big help when you’ve got to run out the door for a showing 'cause you can just throw it over the bed), fresh towels, and a set table makes a good impression. You want to have the hunters picture themselves living the ideal life in that house – even though they are actually just ordinary slobs like you and me. </p>

<h1>1 thing is to get the closets as empty and organized as humanly possible. It’s a great chance to dispose of those things you are never really going to wear again…esp. if you have retirement in view. At any rate, all the unseasonable stuff should be stored and what’s left should be organized by color. Get some cheap pretty boxes from Michaels or wherever for shelves so that they don’t see your untidy purses or scarves or whatever, only nice patterns. Clear out the shoes so there’s only a couple of pairs. Same goes for all the other closets and cabinets. Storage space is a huge desirable…make it look like you have more than enough by moving out any little ‘make-dos’ you’ve created over the years.</h1>

<p>[Designed</a> to Sell Top 35 Selling Secrets : Decorating : Home & Garden Television](<a href=“http://www.hgtv.com/real-estate/designed-to-sell-top-35-selling-secrets-35-to-24/pictures/index.html]Designed”>http://www.hgtv.com/real-estate/designed-to-sell-top-35-selling-secrets-35-to-24/pictures/index.html)</p>

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<p>“But it makes some good points about having the house clean, uncluttered and freshened up”</p>

<p>Yes…that’s why I watch the show. :)</p>

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<p>VeryHappy: As you know, we are in neighboring towns. </p>

<p>When you get some info from your real estate agents, I would not hesitate to call some of the local builders. You know, the guys that are really doing the teardowns and rehabs and see if you can cut a deal directly with them. Save on the commissions and market directly to those guys. They’ll want plot plans, but they probably know the zoning regs. And things do move in our little part of the world. </p>

<p>My neighbor, several years ago, did a little ad in the New York Times under building lots and sold in a few weeks. That was an $800K teardown in maybe 2002 or 2003, with three new marble baths and a gorgeous professional style kitchen and paneled family room. Unfortunately for the house, it was a 50s ranch that could never live up to the trim level the neighbor had installed.</p>

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<p>Well, I met with two real estate agents today, from different firms, and both told me my house is definitely not a teardown.</p>

<p>The primary reason is that, though I have a large piece of land (although not large for where I live), half of it is unbuidable wetlands. Where my house is situated on the plot is basically the only place on the land a house could be situated. And it is a nice house, nice layout, modern fancy kitchen, great finished basement – lots of pluses. </p>

<p>Both agents are going to get back to me next weekend with recommendations as to price and what to do.</p>

<p>The first agent, who I thought was much sharper than the second, said it could be a teardown for the right person/couple/family. She’s going to tell me how I might price for that eventuality, as well as if we fixed it all up, as well as if we sold pretty much “as is.” It will be interesting to see the alternatives.</p>

<p>“As is” is appealing because there is a lot to do – and that’s time and energy and money to get it done. (Remember I’m living in New Jersey during the week. That adds – ummmmm – complexity to the project!)</p>

<p>The other agent said she’ll come back with comps, a marketing plan, etc., during the week.</p>

<p>I haven’t committed to either agent. The first one was extremely prepared – she had researched information from Town Hall about the plot of land, the last sale, its assessed value, etc. She was very well prepared. </p>

<p>But the second one has a whole “team” she works with. I’ll have to see what they both come back with.</p>

<p>I did learn that the “standard” commission is 5% of the sale price. Yipes. That sure takes a chunk out of the value . . . .</p>

<p>But, even DH is starting to warm up to the idea.</p>

<p>This is going to be quite an adventure.</p>

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<p>Good luck to you VeryHappy. I would love to sell now. We bought up 10 years ago when my mother moved in with us. She is no longer living here and S is at college. I would like to downsize to improve our finances, but the upper end of the market in our town is very soft.( it is not a wealthy town, but the commuting possibilities make it attractive to many). </p>

<p>Our house will need $$$ to get it in shape to sell. I also need to warm up my DH to the idea. So I am thinking maybe 3-4 years down the road.</p>

<p>When we sold our last house, the market was much better. The best thing we did was rent a storage unit and did a major declutter.</p>

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<p>VeryHappy the commission here in NY was 6% back in 2000. Good luck whatever you do!</p>

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<p>Ouch – 6%!!! </p>

<p>When we moved here, we sold a co-op in NYC. DH’s company paid for the move. Paid the commission, the moving costs, the closing costs, everything. So everything we got out of the co-op in appreciation was ours – all ours. Basically, no costs to move at all.</p>

<p>We made our real estate lady in NYC very happy – ho haggling with her over the commission, and we got a buyer in a week. The market was hot, hot, hot at that time.</p>

<p>This one will be very different.</p>

<p>I guess no company wants to pay our way to a much smaller house close by. :(</p>

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<p>VeryHappy, 6% has been the norm for most of our house sales, too. The exception was our last one, which took place after the market began its collapse. Our agent offered to handle the listing for 4%, taking just 1 1/2% for himself with 2 1/2% going to the buyers’ agent (so that buyers’ agents wouldn’t ignore the listing.) </p>

<p>We’ve enjoyed a couple of corporate relocations, too, and I sure wish we could do just one more. The market here for houses >$500K is soft, and the higher the price range the worse things get. I read in a RE agent’s blog last month that there’s approximately seven years of inventory at our (estimated) price point, so we won’t even try to downsize for a while.</p>

<p>Since one of your potential agents is talking about updating, you might want to check out another HGTV show called “Bang for Your Buck.” While all homeowners appearing on the show seems to be over the moon about their remodeling projects, the “real estate expert” generally says that most of the upgrades will net a return of 60% - 80%. It’s one thing to take that hit when you get to enjoy the results for a while, but I wouldn’t want to endure the headaches of remodeling only to get back 75 cents on the dollar. But, since every location is different, maybe the returns would be better in your area.</p>

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<p>Actually we ended up getting 4% by agreeing to use the same agent to find our new house. There was some argument about how the 4% got split for the house we bought. But it wasn’t our problem, just something that the real estate agents had to sort out.</p>

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<p>VH-- with all due respect to your real estate people, I would suggest sitting down with your town P and Z people and checking the facts for yourself. They might do this over the phone as well. </p>

<p>We are in the process of looking for a buildable property on the shoreline of our mutual state. One property that we seriously considered – and may still be in the running – is offered by an owner-agent. The agent is theoretically active and involved in the real estate business. She was totally unaware of what could be done with her property, which is absolutely a knockdown. She thought we could build much less than the P&Z people say is possible on this lot.</p>

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<p>cnp, not a bad idea. We will do that before we agree/commit to anything, and certainly before we spend any $$$ to update/upgrade. I do feel confident in their facts and opinions, however. When we redid the kitchen, we wanted to expand the deck slightly – and discovered that we were restricted in doing even that. </p>

<p>I suspect that one of the agents has the plan to market the house 'as is" and to claim “great potential!” in her ads. I agree with that assessment – if DH and I had $100,000 to spend in upgrades and were planning to stay here forever, I’d love to do those upgrades myself.</p>

<p>My hope right now is to buy something small and put the money in to make it absolutely perfect for us. No more deferred plans; just do it when we move in so we can enjoy it ourselves for years.</p>

<p>When we moved into this house, we assumed things would just get better and better, money-wise, and that we had decades to take care of the things we wanted to do. While we did do some of them, life has a way of getting in the way, and before you know it there’s college to pay for, new cars, medical costs, and so on and so on. (And then one of you also takes a severe cut in earnings.) So the new master bath and walk-in closet (which are almost necessities in this real estate market) get deferred.</p>

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<p>One agent came back today with comps; the other is coming tomorrow. While her suggested range of listing price is only slightly lower than I would have hoped for, the real shockeroo is the various taxes and fees that I’ll owe once we sell. Apparently the state takes 1/2% up to a sale price of $800,000, and 1% after that; my town also takes 1/2%; the agent will get 5%. So right off the bat I owe at least 7% of the sale price of my house in fees and taxes.</p>

<p>Then there’s the remainder on my mortgage – which isn’t huge, but it’s a chunk. About 12% of my potential sale price.</p>

<p>Plus she did suggest putting in some money on a few things to spruce the place up.</p>

<p>So right off the bat, I’m basically keeping only around 80% of what my house sells for.</p>

<p>Then there’s the cost of the move itself.</p>

<p>I sure wish the market hadn’t tanked. Five years ago, my house was worth (maybe) (allegedly) about 40% more than it is today.</p>

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<p>I hear you VeryHappy…we are going to hire an agent in the next couple of days…</p>

<p>It’s expensive to move…and if I don’t cash out anything from the sale…the next house is going to be cheaper…I would like to take a few bucks out…</p>

<p>I haven’t seen a house that I think is the one…</p>

<p>Actually, in area I like…I don’t think much of the houses…</p>