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This Month in Real Estate, John Papasan talks about, 'The Spring Home Shopping season.'

Home Warranty Advantage

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Homeowners Insurance is great – it covers a lot of things like fire, theft and vandalism – and in case there is a storm that causes significant damage, the policy’s right there to protect the owner.  But what about a policy that looks after the interests of the property while it listed on the market and one that works to the advantage of both sides of the buying and selling fence?  A home warranty is a perfect supplement to a homeowner’s insurance policy and it broadens the overall coverage in a variety of ways.  Here is a rundown of the variances between the two and how a seller getting a warranty policy on their home for sale is a great tool!

 

The Benefits of a Home Warranty Policy

While home insurance largely covers catastrophic incidences and damage, a home warranty policy goes far beyond in that it address the home including wear and tear items.  Also, maintenance and repair is typically includes in a home warranty policy.  As a selling tool, this is fantastic, because during the process – or even after the home is sold – for up to 13 months, the areas of the home covered under the policy are warranted.  Oftentimes, a buyer will come across an issue with something in the home that could become a deal breaker but with the added peace of mind of a warranty, the seller can sit back and relax knowing that most things will likely be covered.  Examples of things that fall into range of coverage on a home warranty are flooring, plumbing systems, electrical systems, and wear and tear of these areas plus also the furnace and in come cases, the roofing or other major components of the home.

Home Insurance Policy Advantages

The single biggest difference between a home warranty versus a home owners insurance policy is that the latter covers the basic replacement value in general if there is a major catastrophe such as a storm that cause damage, fire, theft or vandalism or personal liability.  There is not personal liability coverage under the home warranty policy, rather it focuses on the “used” contents of the home.

How a Home Warranty Policy Helps in a Real Estate Transaction

Home Warranty of America is a company that provides very good coverage under their policy (for a list of their benefits, click here) including 13-months of free seller coverage, with coverage beginning on the first of their home being listed for sale.  The free coverage period for the seller lasts for up to 180 days and the policy is only paid for upon sale of the home at closing.  The best part of a home warranty policy is that even after the buyer has taken possession of the property, the coverage continues.  That means that as a seller, you will not have to contend with any last minutes issues that can and do come up. When applying for the warranty, be sure to choose coverage that address all potential concerns you may have for the home so that if there were a need for repairs or coverage, you would have it provided as a benefit.

An industry association held a study in which it was determined that not only do homes sell up to 50% faster when there is a home warranty policy in place, but also the selling price typically comes within three percent of the list price.  In today’s real estate market – this is an advantage that any seller would want to avail! We offer a Home Warranty with Home Warranty of America for the low cost of $420. Call us for details.

Should You Sell Now or Wait for Spring?

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One of the most common questions that we get each and every year is whether a home seller should try to sell their home during the cold, winter months or wait for spring to put it on the market? There are pros and cons to every situation, but I want to give you a few things to think about that you may not have considered.

Many people believe that it is always best to list and sell a home during spring. After all, isn't that when everyone else does it? Plus, there are some negatives to selling during the winter.

For one thing, winter is the holiday season. You have Thanksgiving and Christmas, among other holidays. Many people don't want the showings during the holidays. They don't like the idea of people walking through their home with snow on their shoes. They have their holiday decorations up and don't really want anyone messing with their festive home.

Many sellers think that there are less buyers during the winter, and that is probably true. However, consider this: buyers who are looking around the holidays are serious. Why else would they be looking for a home at that time of the year? Many relocation companies move employees during the winter because they want to get things done before the end of the year. Relocation buyers are often some of the strongest purchasers you can find.

Some sellers are also under the assumption that prices go up in the spring. Unfortunately, the current real estate market does not point to the idea that prices will rise in the spring. Experts hope that they do not fall further, in fact. Waiting for prices to go up so quickly may be a dangerous game for a seller to play.

There are some absolute positives to putting your home on the market during winter. First, the interest rates are very low right now. Buyers are getting into homes for 3.75% to 4% right now. No one can predict the future, so you want to strike while the iron is hot.

Also, there are less homes on the market in winter which means way less competition for a home seller. The greater metro area had 20% less listings going into the winter months than will be true during spring.

On a good note, homes are still selling. I checked the records, and last winter through February, our team sold 60 homes! I also checked the MLS records and saw that 2,363 homes sold last year in our area. Your home only has to be ONE of them.

In short, if you don't mind the little inconveniences of selling during winter, you can reap big rewards. Call on us today to find out more about putting your home on the market the right way.

20 Things You Can Do To Get Your Home To Sell Faster

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Want to have the upper hand on your selling competition?  Follow these 20 tips and watch your house sell faster than you can say, “SOLD!”

1. Apply a fresh coat of paint – try to use neutral colors that would appeal to most palates and would easily blend with most buyers’ tastes.

2. Stage the home – a buyer ideally should be able to envision living in the space. Set things up in a way that allow fluidity and extra space because better flow will be more attractive to prospective buyers and it will also allow them to see everything there is to see in the home.

3. Remove all traces of personalization – too many personal artifacts can hinder a sale because buyers can’t see the home for what it is. Keep things clean and try to set things up as you might see a home in professional photographs.

4. Steam clean all fabric surfaces – without realizing it, many homeowners neglect to clean much-needed areas and it costs them a sale.  Grungy surfaces will be cleaned, and it will also freshen up the space plus eliminate any odors from smoking or pets.

5. Replace less-than-perfect carpet – if you can afford it replacing stained carpet is a small investment that will go a long way.

6. Fix any loose ends – there are a surprising number of small things around the house that need repairing – usually items that can pop up during the buyer’s home inspection.  By working to address these items in advance, you save lots of time.

7. Decorate using neutral colors – neutral colors allow a buyer to imagine their own color palates rather than have to attempt to see through the homeowner’s tastes.

8. Provide incentives – pay for homeowners’ insurance for a year or leave existing paid for contracts of home-maintenance so that the new homeowners can use them till the contracts end.

9. Market the property using multiple marketing tools – Deviate from the standard listing practices and move toward the use of technological advances. Engage in proactive marketing such as using YouTube, Facebook, Twitter, 360-degree panoramic videos, individual property websites, instant real-time communication with prospects and more.

10. Hire a top-producing Realtor – the person you hire as your real estate agent will be a decision that will largely impact your success.  Top-producing Realtors usually have a wide network of associates, colleagues, business and person acquaintances as well as vendors and suppliers – all very useful to sellers.

11. Spruce up the curb appeal – The way a home looks from the moment one sees it is a very important impression on the buyer.  Neaten up messy flowerbeds, get rid of weeds, make sure the grass is watered and check the function of your storm door or entry-area.

12. Put out a new welcome mat at the front door – nothing says, “buy me” more than the feeling of warm, cozy and being welcome.  A nice welcome mat is a small expense but it has a large impact as the first impression.

13. Allow easy and frequent access to your home for showing – provide prospective buyers ample opportunity to access your home.  The last thing you want is for a buyer to be interested only to lose that interest if they can’t see the home quickly.

14. Be willing to negotiate – Don’t be hung up on the price or the concessions you offered from the start.  If the feeling is right, be willing to come down a bit on price or give a little more concessions.

15. Price it right – Here is a great article on Trulia about the 7 Deadly Sins of Overpricing your property.

16. Leave in the extras – Buyers are attracted to homes that have major appliances included in the deal – simple.

17. Get a pre-sell home inspection and address any issues – A move-in read y home is clearly going to be the first choice for buyers.

18. Offer to pay part of the closing costs – it takes concessions to appease the savvy buyers of today.

19. Give your pets a new home– Pet smells is a turnoff to someone considering your home.  Consider moving it temporarily until the open house and/or showing period is over.

20. Highlight the home’s best features – If your home’s open floor plan and a great crosswind are fabulous then do your best to show them off.  It will definitely be a selling factor giving you an edge over your competitors.