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8 Reasons You Should List Your Home in the Winter

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If you ask most home sellers, they would probably think you’re crazy to list your home during the winter. After all most people tend to hibernate during the winter and wait until the weather is warmer before they begin looking for a new home. While spring and summer are still the peak home-shopping seasons, listing your home in winter is not as crazy as it sounds for a variety of reasons.

 

  1. Most corporate job transfers occur in January. If you’ve recently gotten a job promotion, you may need to sell your current home,  because you have to move.
  2. New Year’s resolutions inspire people to buy versus rent. Since people associate the New Year with a fresh start, renters are more likely to be motivated to move into a home and start taking advantage of the tax implications of homeownership.
  3. Year-end bonuses mean buyers have more money for a down payment. Extra money at the end of the year could spur buyers to look for a new home.  
  4. Buyers are always looking – no matter the season. With today’s technology, buyers can look at listings any time of the day, any day of the year. They don’t care if it’s winter. They’re just looking for the right home.
  5. Less competition could equal more demand for your home. Since most owners list their homes in the spring, there are often less homes for sale during the winter. So you can expect more demand for your home. In fact, according to a study by real estate company Redfin, homes listed between December and March sell faster than homes listed in spring. And the average seller also makes more money during winter real estate transactions.
  6. Winter home shoppers are serious buyers. If someone braves the cold to house hunt during the winter, they’re likely a motivated buyer, because they need to move. This also means you’ll have endure fewer showings.
  7. You’ll benefit from more advertising. Since your real estate agent will have less inventory to contend with during the winter, your home will be advertised more often.
  8. Your real estate agent can provide you with more attention. Again, since your agent won’t have as many houses to sell, you can expect your agent to devote more time to selling your home.

 

If you’re a homeowner who’s interested in selling your home in the New Year, you don’t have to wait until spring to list your home. Do it now, so you don’t have to put off your plans for the New Year until the weather is warmer.

 

And if you’re looking to buy a new home yourself this winter, contact the mortgage specialists at Grandview Lending to get your loan application process going. Another advantage of buying in the winter is that title companies usually aren’t as busy as they during the spring and summer. Therefore, your loan will likely be processed quicker so you’ll be in your new home in no time.

 

Photo credit: 123RF / feverpitched

Pros and Cons of Selling Your Home on Your Own

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When selling their home, many homeowners choose to work with a real estate agent. However, about 9% of homeowners opted to sell their home themselves in 2012, according to the National Association of Realtors. The biggest reason for placing their home for sale by owner (FSBO) was to avoid paying the agent’s commission.

But selling your home without an agent can be a long and complex process, filled with many risks. Therefore, it’s important to understand the pros and cons before you decide to sell your home on your own.

FSBO Pros

Saving money. The biggest reason why homeowners decide to sell their home by themselves is to avoid paying commission fees of 6% of the sales price. (Commission fees are split equally between the listing agent and the buyer’s agent) These fees can equate to a pretty big chunk of money you can save. However, what many sellers don’t realize is, they still must pay a 3% commission fee to the buyer’s agent, if the buyer is represented by an agent.

Complete control of the process. The FSBO method enables you to stay in control of the whole process and allows you to negotiate directly with the buyers. You won’t have to communicate through agents.  

FSBO Cons 

Lack of real estate experience. Unless you’re a real estate agent, you won’t be knowledgeable in all of the basic elements of selling a home. When you sell a home, you must price your property correctly, qualify your buyers, advertise your home, understand real estate regulations and contracts, and coordinate all the details involved in a closing.

Sales price issues. Many owners overprice their homes when they put them on the market. This can result in the house staying on the market far longer than it would have if it had been accurately priced by an agent. And, often, statistics show that FSBO homes sell for almost 15% less than homes sold by a real estate agent.  

Legal and financial risks. When you sell your home on your own, you need to be educated in binding business contracts, buyer contingencies, seller disclosure laws, financing options, title and deed requirements, fair housing laws, inspections and the handling of the buyer’s earnest money. If you’re not knowledgeable in these areas, the sale could fall through, or you could end up having legal or financial problems, especially if you make a mistake while closing the sale. Therefore, if you decide to pursue a FSBO option, it’s recommended that you hire a real estate attorney to help you with all agreements and contracts as well as managing the sale proceedings and closing.

Marketing costs. You can’t just stick a sign in your yard and hope your home sells on its own. You have to develop a marketing plan to attract buyers. If you’re not skilled in marketing, your home could sit unsold for months. Plus, the costs for your marketing efforts (for example, signs, ads, flyers, Multiple Listing Service, FSBO website listings) come out of your pocket.

Time and effort. Selling your home is a 7-days-a-week job. You need to advertise your home, handle phone calls, schedule appointments and be available to take buyers through your home. And if you already have a full-time job, you could miss opportunities to sell your home if you’re not available.

Safety and security concerns. You need to qualify all of your potential buyers before you allow them in your home. Otherwise, you may be inviting in criminals. Many unrepresented sellers have been robbed, assaulted, raped or worse.

After reviewing the negative issues and adding up all of the fees (attorney, marketing, advertising, inspectors, etc.) associated with selling your home on your own, you may find you’re better off just paying the real estate agent’s fee. All of the time, effort and stress with a FSBO option may not be worth the money you might save.

If you’re selling your home in order to purchase a new home, and you’re looking for a home mortgage, contact Grandview Lending. We offer a variety of loan options. Plus, our senior mortgage specialists are skilled at finding the right loan based on your situation. 

Photo credit: iStockphoto

6 Reasons Why Your House Has Not Sold

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Has your home been on the market for several months, and you can’t figure out why it hasn’t sold? Then it’s time for you to take a long hard look at some of factors that may be preventing you from selling your home.

1. Your home’s selling price is too high.

Price is often the No. 1 reason why a home has not sold. When a house is overpriced, buyers often will not even look at it. Therefore, if your home hasn’t sold in 30 days, it’s time for a price adjustment. Have your real estate agent do a new market analysis on the prices of active listings and recent sales in your area. Then price your home accordingly.

2. Your home needs repairs or updates.

The physical condition of the house is the second reason why homes don’t sell. Does the house need a new roof, flooring, or HVAC system? Are their stains from water issues? Or does the decor generally look like it’s stuck in previous decades? Remember, most buyers just don’t want to take on fixer-uppers. While that doesn’t mean you need to spend thousands of dollars on renovations, you do need to fix problem areas (like roofing or water issues) and generally freshen up your home’s appearance. This may mean a new coat of paint, the addition of landscaping and/or an overall good scrubbing to make your home look appealing to buyers.

3. Your home is in an unfavorable location.

Unfortunately, there’s not a lot you can do to fix a home that’s located in an area with a high crime rate, a poor school system, a lot of traffic, no public transportation or a poorly maintained neighborhood. Another issue can be the lot the home is located on. Maybe the yard is too small. Or, the house is situated on a hill that makes mowing difficult. About the only way to overcome location issues is to reduce the asking price.

4. Your real estate agent isn’t marketing your house well enough.

Selling your home takes more than just listing the house with the local multiple listing service (MLS) to find potential buyers. Therefore, when you choose a real estate agent, find out how they plan to market your house. A good marketing plan can include an enticing description of your home, great home photos, “just listed” announcements, open house events, broker tours and active networking with other agents to help get your home sold.

5. You’re not making your home easy to show.

If you want to sell your home, you have to make it easy for agents to show it. Install a lock box for easier access. Keep your home clean and ready to show at a moment’s notice. Also keep your pets in pens. If you only allow people to see your home by appointment or during certain times, you’re limiting the number of potential buyers through it. This can make it harder for your home to sell.

6. There’s too much of your personality in the home.

You want potential buyers to imagine they’re living in your house. But if all they can see is your family photos, your collection of vacation souvenirs, or your homage to your favorite sports team, they’ll have a hard time seeing themselves living there. So, pack up your personal items. Store some of your furniture to make your home appear larger. And paint your home in neutral colors, since not everyone may love your color combinations as much as you do.

Remember, if your home is not selling, talk to your agent to determine if it’s because of one of these factors. Then make the appropriate changes. Hopefully, in no time, your agent will be putting the sold sign out on your property.

If you’re purchasing a new home, you’ll need a home mortgage that fits your needs and budget. Contact the senior mortgage specialists at Grandview Lending. They can help you navigate the financial maze that mortgage lending has become while providing you with exceptional service.

Photo credit: iStockphoto