Housing Trends
August 27, 2010 · CommentsHow we live in our homes is changing. The optimal average size of a single family home is now estimated to be 2422 sq. ft. People are now looking for homes to be more practical and user friendly meaning rooms should be able to serve multiple purposes. The trend does continue as the “great room” remains popular. People want to use their entire house not just use certain rooms on an occassional basis. For example, a dining room if not used can be converted into a home library. Less used formal living rooms could be used as dining rooms or become home offices. While purchasing a smaller home will lead to less maintenance and lower costs in the long run it is more expensive to build a single story home so the initial investment will most likely be higher per square foot than a two story home.
Regardless of whether you want a large home or a small one the choice is always yours. Living in a home you enjoy is the primary goal. After all, a house is only walls but a home is the special place you make it.
Seller Property Disclosure
August 15, 2010 · CommentsObtaining a termite report prior to having a buyer for your home if it is for sale means you as the seller are more in control of negotiating a price when an offer is tendered on the home. As a seller you can either do the work prior to obtaining a buyer or you can list the price according to what the repair costs are. If the seller decides to do the work prior to obtaining a buyer the work can be done by the homeowner, a handyman or licensed contractor. However, if the work is to be done after an offer is ratified the work must be completed by a licensed contractor.
For a seller knowing what you are actually offering for sale limits the ability of the buyer to further negotiate the price and or work that may be required. It will make you a happier seller in the end.
Property Conditions
August 1, 2010 · CommentsProperty conditions is an obstacle sellers face when pricing their home. Overall condition affects the ultimate selling price and can be negotiated during the property contingency period. As a seller there are ways you can minimize the negotiating.
1. Consider paying for a termite report and, depending upon the age of the property, a home inspection when you list the house. You want to know what the issues are BEFORE you have a buyer.
2. Price the house according to needed repairs and/or general condition.
By having the information up front you maintain a stronger negotiating position than the one the buyer has. This will translate into more money for the seller the majority of times making the cost of inspections well worth the price.
As a seller if you find out about a problem while in escrow and the buyer wants it repaired either a licensed contractor needs to complete the repair or the buyer wants the repair price taken off the asking price or a credit. If the seller knows about the problem prior to a ratified offer it is the seller’s choice who does the repair or the decision can be made not to do the repair and the price is either adjusted then or negotiated when the buyer writes an offer.
As a seller you want to protect yourself and this is one way to do so.
Home Ownership Obstacles
July 21, 2010 · CommentsObstacles for home ownership are hard but if the buyers and sellers are educated everyone will sleep better and the process will not be as stressful.
Seller obstacles include:
- property condition affecting “ultimate” sales price
- strength of buyers
- appraisal
- Realtors themselves
For buyers:
Same as seller but also add
- fear
- affordability and financing
In the coming poste each of these items will be addressed. As always if you have questions or comments don’t hesitate to post them or give me a call. I am happy to help.
