Barb Szabo's Blog

It takes Less Than Five Minutes for a Buyer to Leave Your "Not Ready For Market Home".

I am having quite a busy January considering I live in Cleveland Ohio. I have been out with several buyers this week and I noticed the same common theme that I have been noticing for quite a while.

A (non investor) buyer will leave a home in 5 minutes or less if it feels, smells, or looks not ready for the market. You have heard me say before that a seller has one chance to impress the buyer or that buyer will move on. Your home then becomes just a distant memory.

The first impression a buyer gets when they walk up to the front door usually sets the tone for the showing.

It is difficult for most buyers to focus on the good stuff if:

It smells bad....musty, moldy cigarette smoke, overpowering air fresheners, pet odors

It feels uncared for....when a buyer notices enough little things that it makes him wonder what else might be wrong with the house

It does not appear ready for showings...laundry on the floor, dishes in the sink, cobwebs on the ceiling, dirty appliances

I will be the first to acknowledge that some sellers simply do not have the finances to make any improvements, but some of the above items do not cost any money.

Dishes and laundry can be put away, appliances can be cleaned and so can the cobwebs. I remember a home I sold once that had a purple commode, sink,and bathtub with green shag carpeting as an accent color but you could eat off the floors as it was that clean.

So if you can't make major or even minor repairs, strive for spotlessly clean!

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

Some deals work and some deals don't. That's true in just about every aspect of life including deals with the devil:)

The fall of the real estate market is a not a surprise to most people. Prices are down. Inventory is up. An extraordinary amount of homes are vacant. Tons of foreclosures and short sales on the market with more to come, according to some experts.

So when you get an offer on your home, you really need to take it seriously. Let me first say that I certainly do not think that every offer is worth consideration because some are just beyond ridiculous. But, I think the vast majority are worth consideration in this market.

Before you turn down what you think is a ridiculous offer here are some things to consider:

Is the offer really that far off the mark when you consider the comparable sales in the neighborhood?

Are all the terms (with the exception of price) terms you can live with? acceptable possession dates? or better yet some extra time in the house after title transfer? did the buyers ask for the sun, moon, and stars or just what was offered in the MLS? do the buyers have a decent down payment and a pre-approval from a reputable lender? If the answer to the above questions is yes then the offer should get serious consideration.

Here in Cleveland Ohio it has not been uncommon to see snow in October, although we have been lucky so far, but I'd have to bet there will be some in the next few weeks.

Is the home you're selling vacant? Yes? then add this to the mix.

You now have to turn on the heat or winterize the plumbing to help prevent the pipes from bursting. As an agent who has shown many homes during the winter months, I can tell you it's quite unpleasant to show a freezing cold home and the buyers don't like it that much either, so I would probably tell you to keep the heat on, but is another expense.

Who will take care of the snow plowing? Again, from my experience, buyers and their agents do not appreciate trudging through one foot of snow to get to the front door of that freezing cold home. I have had buyers simply say "next."

Now in case you think that I don't follow my own advice I can tell you this. I have purchased 3 homes and sold 2 and with the 2 I sold I was smart about it. The first one I sold was in 1990 when the market was great. FHA and the city inspectors made me take out half my concrete driveway. I asked the other agent if the buyer was willing to take on the repair and she said yes but for a price, of course. I promptly reduced the price by $2000 and went on my merry way. My sites were set on the home I already purchased and which I was so excited about. We pretty much broke even on that sale but I could see that it had value to me and that it was a stepping stone to my next move. And by the way, even though we broke even, I still felt I was ahead because I had my tax write off for all those years.

My second sale was a bit easier but my motivation was strong. We were building a home and even though I worked for the builder, the market was good and he would not accept a house sale contingency. When I got an offer that was 95% of my list price, I signed on the dotted line.

I realize that many, many people have lost the equity in their homes and there have been many foreclosures, but if you are one of the lucky ones that have control over selling your own home, then be smart about it and look at ALL the terms of the offer.

The longer you hang onto that house, the more the monthly expenses add up...taxes, utilities, unexpected repairs, so think long and hard before you reject an offer.

It may be a very long time before another one comes along.

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

As a seller have you been considering a price reduction on your home for sale? Now is the perfect time!

About one week ago I was hosting a broker's open house with one of my favorite lenders and she asked me if I had refinanced my home last year, as I had mentioned to her that I was thinking about it. When I said that I hadn't she mentioned that she had a 15 year fixed rate of 3.3%!!!! This was a no brainer for us. We had a 30 year note at 5.87% so we started the process and will be closing at the end of this month.

But, low rates are not only important to buyers. They are important to home sellers as well. I believe there will be more buyers entering the market, inspired by these low interest rates.

Will you as a seller be ready with the right price? It's important that you are because there is still a large inventory of homes from which a buyer can choose. And even with lower rates, buyers will still do a lot of comparison shopping.

So be ready with the condition of your home and the RIGHT price!

Along with the right price, your home for sale needs a strong internet presence and I can help you achieve that with some of my internet marketing seen below.

**home buyers should always consult with a qualified loan officer and/or a CPA and/or a tax attorney.

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

Location, Location, Location...Not So Much Anymore....Price, Price, Price!

For those of us who have been in the business for a while, we remember the phrase location, location, location, which of course implied that nothing was more important than location when it came to purchasing a home.  In reality, when I priced a home it was really location, condition, and price that I considered. But if there was some less than attractive wallpaper, I didn't consider it that much of a problem. The same was true if the carpets were a little worn, or the deck needed staining, or maybe the landscaping was not quite right. The second home my husband and I bought in 1990 had an original furnace and A/C, an old hot water tank, a roof we found out after inspections was leaking, wallpaper I did not like and a dated kitchen and dated bathrooms. BUT, we loved the yard, the huge family room addition with a fireplace, the finished basement (with red and black shag carpeting) and the neighborhood.

But now that the tables have turned, and supply is greater than demand, the truth is much closer to price, price, price or at best, somewhere in between.

I can't stress how important the right price is in today's market....that, and patience. It is not unusual to see market times of 6 months to one year in the Cleveland market, and even longer for condos. Buyers are not settling for outdated decor and old mechanicals, UNLESS the price is right..

Does that mean that as a seller you should not prepare your home for the market? Not at all. In fact, it's more important than ever to present your home in the best light possible. Buyers are closely scrutinizing the homes they are considering, with more stars given to those homes with improvements. I realize that many sellers do not have the financial means to make major improvements to their home. But even a home that is dated can be made neat and clean.

For those sellers who do have the means to make some improvements, start with the defects! So often I see a home with a remodeled kitchen or bath but the basement leaks, or the basement is finished but the roof leaks. Take care of defects first.

After the defects are corrected, other improvements to consider are:

stripping wallpaper and if there is no paper, perhaps a fresh coat of paint
carpets cleaned or replaced
spruce up the landscaping/deck
update the light fixtures
if your home is vacant, consider hiring a home stager

And don't forget a good dose of patience....you're gonna need it.

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

I have read many reports that suggest that remodeled kitchens, baths, and landscaping can make a difference in selling your home. However, in today's market I think you have to proceed with caution. Investing a lot of money in your home to get it sold may not be the best idea for every seller.

I do have sellers who thought it would be a good idea to spruce up the yard because they had not been able to keep up with it. This home is in Parma Ohio where there are currently 593 single family homes for sale. I had already listed it before they decided to do the landscaping so here are the before and after pictures.

This job was done about the third week in May and about 30 days later the house was under contract!

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

There is so much to cover with a seller on a listing appointment that it can be overwhelming for them. There is a lot of focus on:
market value
list price
marketing
feedback
advertising
showings
condition of the home
multiple offers
internet presence

One question a seller should ask of their agent is:
"How will you answer questions on my behalf, such as:"

why is the seller moving?
are they leaving anything extra with the house?
is this a divorce?
is the seller negotiable?

Of particular importance, how does your agent answer the question "Has your seller had any offers on the property?" Well I can tell you that this is something that should be discussed with the seller, either at the listing appointment or when the question is asked. I personally believe that there is no benefit to a seller I represent in divulging if there have been any offers. If the answer is "No the sellers have not had any offers yet" then the buyers may be inclined to offer a lower number, thinking the sellers might be getting a little desperate. If the answer is "They have had a couple of offers but they didn't work out, then the buyers may be inclined to offer a lower number, thinking the sellers might be getting a little desperate. In either case, the end result could be the same. And yes, I know it's a tough market, but I believe most sellers would want their agents to encourage offers. So at the same time your agent says that he/she cannot divulge information about offers, they can certainly say,"but the seller will look at all reasonable offers." (or whatever the instructions are from the seller.)

The important thing to remember is that decisions about what to tell the other agent regarding how many offers, or lack thereof, or multiple bids, or anything material to the seller's negotiation, must be the seller's decision, not that of the agent.

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

Will Your Home Be on The Market Soon? Sign up for my Search Portal and Keep Tabs on the Listings in Your Neighborhood!

Are you thinking of putting your home on the market in a few weeks or months? Do you already know what it's worth based on the competition and comparable sales in your neighborhood? Then you've got a good start!

If you would like to keep your finger on the pulse of the market, sign up for my FREE search portal. There you can create a search specific to your neighborhood and receive e-mail notifications when any listing that matches your search criteria has a status change. You'll find out when new listings hit the market, along with those that have price changes or have moved into the contingent, pending, expired, or closed status. This is a great tool to help you determine if your price is on target!

The search portal is a fantastic way to know what is going on in your neighborhood, with access to current information. Below is a screen shot of  the search portal.

Click on the link or call me today to set up your free search portal!

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

We all know what a challenging market this has been and continues to be. Pricing is important, but then again it always has been. Even in a great market we still had sellers that were asking too much and buyers would pass the house by. The difference is that then there were lots more buyers so the chances were a little better.

When I  go on listing appointments something I  point out to the seller is that the number of showings or lack thereof is a clear indicator of what the buying public thinks of the list price.

If there are lots of showings and no offers, then the price is too high.
If there are no showings at all, then the price is too high.

Inevitably there are discussions about lowering the price, and the question of how much it should be lowered always comes up. Generally speaking, unless the home is high end, I would recommend 5K to 10K. Often the sellers tell me that they only want to drop it 2K and in some cases even less. The reduction does depend on the price range but let's say your home is listed at $200K and it's time for a price change. Logic would tell you that dropping it to $198K will simply not do much good. That's a 1% drop in price.

Let's say you have your eye on a new car priced at 30K and the dealer says he simply cannot go any lower. A few days later you get a call that the dealer is willing to drop the price by 1% to $29,700!! Hardly worth jumping up and down about. But let's say that the dealer says, "I've looked at the numbers again and I can make this deal with you for $28,500 (and I'll throw in some free floor mats) which  is a 5% price adjustment, it may start looking a little more attractive.

The same is true when adjusting the price on your home. If you drop your $200K price by 5% it drops it to $190K and now all the buyers that looked at it might be tempted to take a second look and you will may also attract some new buyers who passed it up because they simply thought the price was too high for the area or their price range.

If you have had showings and no offers, it is time to reduce the asking price and keep the momentum going.
If you have not had  any showings, it is time to reduce the asking price and kick start that momentum.

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

It's no surprise how fierce the competition is right now in many communities across Northeast Ohio. I am always pleased when I show a home and the comments read "new furnace"08, new windows '06, etc...". Call it years of experience or skepticism based on years of experience, I don't believe it til I see the invoices.  I have found more than once that the MLS information provided by the agent does not match the invoice once we receive a copy.

This generally does not sit well with buyers, making them feel as though they have been misled. But I don't think that's the intention of most sellers. Time flies quickly and what may seem like 2 years is actually 4. The best thing sellers can do is to make copies of all the invoices and give them to your agent. He or she can scan them and keep an electronic folder which can be made available should the buyer's agent request it.

Be sure to black out all personal information on the invoice, in particular, a credit card number. In some cases the invoices can even be uploaded to the MLS, making it super easy for the selling agent to access the information.

It may seem like a small thing but, trust me, the sooner I can get my hands on the information that is pertinent to my client, the sooner I can write an offer on your home.

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

Today I was out showing homes in Richfield and Sagamore Hills. What a pleasure it was to pull into plowed drives of all the homes I showed.

I also appreciate the large area rugs we found when we entered the home. I can't tell you how often I bring 2 or more clients into a home, with beautiful ceramic or hardwood flooring in the foyer and there is no rug!. We have no choice but to step in with our wet and sometime muddy shoes, and that makes us all feel badly. I do always try to wipe up any obvious puddles with a paper towel, but an area rug is much more practical.

Sellers may not think these 2 things are a big deal, but to me and to my clients it makes viewing the home much more pleasant. We can focus on the front elevation and not the drive that is not plowed. And we can focus on a lovely 2 story foyer instead of messing up the floor.

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.