Like rookie buyers, clients who are new to selling need extra hand-holding through the sales process.
Even the most steely-eyed sellers can get emotional when it’s time to list their home. It’s the place where they raised their children, gathered friends for annual holiday parties, or painstakingly executed their design vision over many years. The longer they have stayed in a home, the greater the challenges they may face getting up-to-date on the rules and regulations governing transactions. Those who have never before sold are, indeed, in uncharted territory. Here are suggestions for working with first-time sellers who may find the financial and legal complexities, as well as the emotional terrain, especially daunting.
First-time sellers who have never contended with buyer demands may not initially understand how neutralizing their home or adding small upgrades can make their property more competitive on the market. Using data to highlight comparable nearby homes and what they’re selling for is a good place to start, but make sure to explain how the data supports your argument. Andy Werner, abr, e-pro, associate broker at RE/MAX Realty Group in Gaithersburg, Md., says many first-time sellers don’t realize how minor repairs can elevate their property’s market value. Buyers typically expect a home to be in move-in condition, so sellers who choose not to upgrade could face a $10,000 to $15,000 price reduction, he says.
“I tell buyers that if you don’t fix up your house, the buyer will go around the corner and buy from someone who did—and they’ll pay $5,000 more,” Werner says. Such an explanation demonstrates market fundamentals to your clients and keeps them on track toward the closing table. The costs of modest repairs, such as repainting, installing carpet, and refinishing or replacing kitchen cabinetry, are often recouped at resale, Werner adds.
Selling After Decades of Owning
Some common seller issues become more difficult simply because of how long a first-time seller has lived in a home. Decluttering, for example, can be hard enough for someone who’s been in their home only five years. Imagine how challenging it is for sellers who have lived in a home for their entire adult life.
It’s not just emotional resistance they’re experiencing. First-timers may simply not be aware of how clearing out personal items improves the odds of a sale. Alice Chin, psa, a broker with Keller Williams Infinity in Naperville, Ill., recommends that sellers who have never dramatically decluttered their homes before do it in stages, clearing one room at a time. Slowing down the pace can ease the mental and emotional pressure involved in getting rid of personal items, she says, and once sellers see the results in one room, it can encourage them to continue working on the rest of the house. If your client needs more convincing, ask a professional home stager to weigh in, Chin says.
Patience Is a Virtue
All sellers benefit from practicing patience while waiting for the right buyer, but this is doubly true for those who are listing a vacation home in resort areas for the first time. They face different market dynamics than if they were selling a primary residence, says McKee Macdonald, a broker with Coldwell Banker Carlson Real Estate in the ski resort town of Stowe, Vt. Many of his clients who are new to selling are shocked to learn how long it can take to sell—an average of 250 days in his market. Some properties have languished for as long as five years, he says.
Therefore, first-time sellers require a higher degree of communication so they can be prepared for the realities of a niche market, Macdonald says. He explains that traditional marketing tactics such as open houses aren’t always effective because the number of skiers (who are prospective buyers) in town on weekends is unpredictable. Instead, he advises his clients to consider renting out vacation properties while they wait for a buyer. After all, selling a second home often isn’t urgent, and a seller’s motivation can change. “Some sellers say, ‘Throw it out there. If we get the price we want, great. If not, I’m still using it,’” Macdonald says.
Experienced Sellers Can Be Rookies
Even seasoned sellers can feel like newbies when market conditions have changed markedly since their last sale. A client who sold one property during a downturn may be ill-prepared for today’s tight-inventory environment and the stress of handling multiple offers. Though it’s a nice problem to have, it can still be overwhelming.
Ashleigh Fredrickson, sales associate at 8Z Real Estate in Denver, says the biggest challenge for sellers of all experience levels is determining which offers stand the best chance of holding up. In a strong seller’s market, buyers can get swept up in the heat of the moment and bid 10 percent over list price only to realize later they won’t be able to qualify for financing, she says. So it’s important to counsel sellers—particularly those who have never been in such a situation—that the highest bid isn’t necessarily the best. “You want to make sure you’re getting the most qualified buyer so that you’re not back out on the market again,” Fredrickson says.
She suggests using a spreadsheet to help sellers analyze competing bids, taking special note of any contingencies. Your clients need to understand that a higher offer with more contingencies may not be in their best interest. “Maybe the timeline is paramount, so the seller will sacrifice a couple of thousand dollars to ensure the deal is done by a certain time,” Fredrickson says.
Above all, directness and thorough education are what every first-time seller needs, Macdonald adds. When a sale isn’t going the way a seller had imagined it would, “you need to look for strategies to offset the negatives.” But always “give sellers the honest truth, and don’t sugarcoat it,” he says.
Credit to Judith Crown
Judith Crown is a Chicago-based freelance writer specializing in business, government, and education.
Like rookie buyers, clients who are new to selling need extra hand-holding through the sales process.
Even the most steely-eyed sellers can get emotional when it’s time to list their home. It’s the place where they raised their children, gathered friends for annual holiday parties, or painstakingly executed their design vision over many years. The longer they have stayed in a home, the greater the challenges they may face getting up-to-date on the rules and regulations governing transactions. Those who have never before sold are, indeed, in uncharted territory. Here are suggestions for working with first-time sellers who may find the financial and legal complexities, as well as the emotional terrain, especially daunting.
First-time sellers who have never contended with buyer demands may not initially understand how neutralizing their home or adding small upgrades can make their property more competitive on the market. Using data to highlight comparable nearby homes and what they’re selling for is a good place to start, but make sure to explain how the data supports your argument. Andy Werner, abr, e-pro, associate broker at RE/MAX Realty Group in Gaithersburg, Md., says many first-time sellers don’t realize how minor repairs can elevate their property’s market value. Buyers typically expect a home to be in move-in condition, so sellers who choose not to upgrade could face a $10,000 to $15,000 price reduction, he says.
“I tell buyers that if you don’t fix up your house, the buyer will go around the corner and buy from someone who did—and they’ll pay $5,000 more,” Werner says. Such an explanation demonstrates market fundamentals to your clients and keeps them on track toward the closing table. The costs of modest repairs, such as repainting, installing carpet, and refinishing or replacing kitchen cabinetry, are often recouped at resale, Werner adds.
Selling After Decades of Owning
Some common seller issues become more difficult simply because of how long a first-time seller has lived in a home. Decluttering, for example, can be hard enough for someone who’s been in their home only five years. Imagine how challenging it is for sellers who have lived in a home for their entire adult life.
It’s not just emotional resistance they’re experiencing. First-timers may simply not be aware of how clearing out personal items improves the odds of a sale. Alice Chin, psa, a broker with Keller Williams Infinity in Naperville, Ill., recommends that sellers who have never dramatically decluttered their homes before do it in stages, clearing one room at a time. Slowing down the pace can ease the mental and emotional pressure involved in getting rid of personal items, she says, and once sellers see the results in one room, it can encourage them to continue working on the rest of the house. If your client needs more convincing, ask a professional home stager to weigh in, Chin says.
Patience Is a Virtue
All sellers benefit from practicing patience while waiting for the right buyer, but this is doubly true for those who are listing a vacation home in resort areas for the first time. They face different market dynamics than if they were selling a primary residence, says McKee Macdonald, a broker with Coldwell Banker Carlson Real Estate in the ski resort town of Stowe, Vt. Many of his clients who are new to selling are shocked to learn how long it can take to sell—an average of 250 days in his market. Some properties have languished for as long as five years, he says.
Therefore, first-time sellers require a higher degree of communication so they can be prepared for the realities of a niche market, Macdonald says. He explains that traditional marketing tactics such as open houses aren’t always effective because the number of skiers (who are prospective buyers) in town on weekends is unpredictable. Instead, he advises his clients to consider renting out vacation properties while they wait for a buyer. After all, selling a second home often isn’t urgent, and a seller’s motivation can change. “Some sellers say, ‘Throw it out there. If we get the price we want, great. If not, I’m still using it,’” Macdonald says.
Experienced Sellers Can Be Rookies
Even seasoned sellers can feel like newbies when market conditions have changed markedly since their last sale. A client who sold one property during a downturn may be ill-prepared for today’s tight-inventory environment and the stress of handling multiple offers. Though it’s a nice problem to have, it can still be overwhelming.
Ashleigh Fredrickson, sales associate at 8Z Real Estate in Denver, says the biggest challenge for sellers of all experience levels is determining which offers stand the best chance of holding up. In a strong seller’s market, buyers can get swept up in the heat of the moment and bid 10 percent over list price only to realize later they won’t be able to qualify for financing, she says. So it’s important to counsel sellers—particularly those who have never been in such a situation—that the highest bid isn’t necessarily the best. “You want to make sure you’re getting the most qualified buyer so that you’re not back out on the market again,” Fredrickson says.
She suggests using a spreadsheet to help sellers analyze competing bids, taking special note of any contingencies. Your clients need to understand that a higher offer with more contingencies may not be in their best interest. “Maybe the timeline is paramount, so the seller will sacrifice a couple of thousand dollars to ensure the deal is done by a certain time,” Fredrickson says.
Above all, directness and thorough education are what every first-time seller needs, Macdonald adds. When a sale isn’t going the way a seller had imagined it would, “you need to look for strategies to offset the negatives.” But always “give sellers the honest truth, and don’t sugarcoat it,” he says.
Credit to Judith Crown
Judith Crown is a Chicago-based freelance writer specializing in business, government, and education.
homes for rent, homes for sale, newstarrealty.com
To be a successful landlord, you need to give your tenants what they want.
Think of it this way: You wouldn’t want to be in the surfboard business in the Midwest, but you might in a Southern California beach community.
It’s the same for the landlord business. Buying rental property is only one part of the equation for success. If your property is as appealing as that Midwestern surfboard, it’s not doing you much good.
To be successful, you need to provide a rental product that people want to rent, and to be really successful, they should want to stay in it for as long as possible. Here are 10 things renters can’t resist.
1. Walkability
A great location means different things to different people. But if your rental property has a high Walk Score, a measure of a location’s walkability, it’s a safe bet you’ve got a good location.
There’s a shift in this country toward moving to urban areas, but not necessarily the traditional ones, such as New York City and San Francisco. Renters just want to walk to restaurants, shops, schools, parks, and entertainment, no matter which city they’re in.
A Walk Score between 50 and 100 means some or most amenities are within walking distance, and a score between 0 and 50 means the property is car dependent.
2. A Well-Maintained Place
One of the big advantages to being a renter versus a homeowner is that renters don’t have to worry about maintenance and repairs. That’s the responsibility of the owner or management company. So when you’re showing a place, be sure there are no maintenance issues.
When you’re showing a place, make sure there are no maintenance issues.
And when a tenant moves in, conduct periodic inspections to ensure your rental unit remains in great shape. You or your management company also needs to be responsive when a repair needs to be done.
3. A Place to Park
Renters want off-street parking, and that’s a feature they don’t necessarily get in a building in an urban area. So if you have a single-family home with a garage, play up this feature. If you don’t, any off-street parking, such as a covered area or a driveway, is a great selling feature. In the suburbs, renters are fine with street parking since it’s typically easy to find parking in front of the property.
4. Storage Space/Walk-in Closets
If your rental unit has enormous walk-in closets, you’re sure to impress potential tenants. But if you don’t have this feature, you might want to consider having one built in. A bigger closet in a smaller bedroom is usually a bigger draw than a tiny closet in a spacious bedroom. And any additional storage space is always welcomed.
5. Washer/Dryer
Tenants want a washer/dryer in their rental unit. Although this is an extra amenity that you’re not required to offer, it makes your unit more desirable to renters if you do. Some renters have their own washer/dryer, or don’t mind getting their own, so if you have a laundry room or a place to hook up a washer/dryer, that’s better than nothing.
6. Air Conditioning
By air conditioning, we mean central air, not a window unit. But this amenity varies depending on where your rental property is located. In a hot, humid climate, central air is a must-have feature. Window units are not ideal in humid climates because they tend to sweat, adding even more moisture to the home. And the seal around the windows is not perfect when you have an AC installed in the window, which is not energy-efficient.
7. Flexible Pet Policies
Lots of people have pets, making a pet-friendly place desirable for many renters and a must-have feature for others. Sixty-five percent of people own a pet, according to the National Pet Owners Survey. The most popular pets are overwhelmingly dogs and cats. If you decide to allow pets, here’s some further reading on best practices:
The Definitive Guide to Renting to Tenants with Pets
Pet Deposits, Pet Fees and Pet Rent — What’s the Difference?
8. Security and Safety
At the very least, you should reassure renters that you always change the locks between tenants. And, of course, you can’t just say this — you have to actually follow through with it. Besides changing locks, make sure your property has proper outdoor lighting, a wooden dowel for the bottom of sliding glass doors, deadbolt locks, and either provide an alarm system or let your tenant add one if they want to.
9. Outdoor Spaces
Although many renters like amenities, such as a pool with a cabana and a fitness/yoga studio (like many apartment complexes have), what even more renters prefer is outdoor space — a fenced-in yard, patio, deck, or balcony are all desirable to renters. When it comes to outdoor spaces, something is better than nothing.
10. A “Smart” Home
This feature typically won’t be a deciding factor for most renters, but if you have smart features, it’s a bonus, especially for millennial renters who love technology. The Internet of Things (IoT) allows devices to “talk” with each other, which makes it possible for technology to work for us.
Temperature controls that allow homes to heat up before you come home, a place to plug in your electric car, and lights that go on as you enter the room are all examples of what smart devices can offer. Nest is the leading provider of smart thermostats, but there are others for less money.
Which features help rent your place? If you’re a renter, what features are your must-haves? Let us know in the comments!
Credit to Laura Agadoni
Laura Agadoni is a landlord and journalist whose articles appear in various publications such as Trulia, The Houston Chronicle, The Motley Fool, SFGate, Zacks, The Penny Hoarder and azcentral.
