How NOT to Sell a House

   Take one little tiny For Sale sign, mark an arrow on it and tack it to a tree pointing down the long dirt road towards your house.  Wait.

   This particular sign has been up for over a year now. No Multiple Listing Service presence, no web presence, no advertising.

   If you were in the market to buy a home would you drive down that half mile or more of dirt road, knock on the door and ask to see this home? Ask the price? Ask how much land came with it? Apparently, neither would anyone else.

   Well, I just gave them more advertising than they've given themselves.  Too bad they never thought to put their phone number on the sign!
 

What a Difference a Year Makes

    The Associated Press reports today that jobless claims have dropped to their lowest level since January and prices of household goods stayed low last month, positive signs of stability for the economic recovery. The Dow has risen above 10,000. Here in Maine, the Maine Association of Realtors is reporting another month of increased home sales.

   As I recall, at this time last year, we were waking up every morning wondering what bank or financial institution was going to fail that day.  It was a steady drumbeat of bad news, Lehman Bros., Fannie and Freddie, Countrywide, AIG, Wachovia and all of it wrapped up in election year rhetoric.  Potential home Sellers sat in stunned disbelief as we tried to explain that they just weren't going to achieve prices similar to what their neighbors had gotten just a year before. Potential home Buyers just sat, paralyzed in fear by the cascading bad news.

   What a difference a year makes.  As it slowly sinks in that, just like with every other economic downturn in history, this one too shall pass, the mood of people walking through our door, both Buyers and Sellers is decidedly more upbeat.  Sellers have come to terms with the fact that they are not going to get for their home in 2009 what they might have in 2006.  But those that are moving on know that they will make it up when they buy.  Buyers, aided by low interest rates, ample choices from which to buy and in some cases government tax incentives are very happily picking up homes that they could not have gotten into 3 or even 2 years ago.

   Fixed rate loans have begin to inch up ever so slightly and many of the better homes have been bought, but new properties are coming on the market and priced according to the new reality as there are now comparable sales on which to base those prices.  It is an excellent time to be in the real estate market right now. We couldn't say that a year ago.

Jim Cosgrove

Tips for Sellers

    Home Sellers, follow these simple tips for a quicker more profitable sale on your home.

1. Hire a Good Broker.  I should probably make this Hire a great Broker. Hire a professional who knows your town or area and has a track record of success there. I am constantly amazed at how often people make the decision on who is going to handle the sale of what is usually their largest single financial asset based on who one of their friends know or feel they have to use their 2nd cousin who also has 3 other jobs.  Hire a full time real estate professional who has a verifiable track record and can provide you with references from many very satisfied past clients.

2.    Clean Out the Junk.  You are going to have to clean it all out when you move anyway so why not do it now?  It will create a good first impression and make your home look more spacious.

3.   Spruce Up Your Home.  Cracked or peeling paint?  fix it.  Missing boards in the front porch? Replace them.  All those little repairs you spouse has been after you to make these last few years?  No more procrastinating, they need to be done NOW.  Remember your mother telling you on the first day of school every year that you only get one chance to make a good first impression on your teacher?  Well same holds true for your Buyer.  Spruce it up and make a good first impression.

4.   Know What Your Home is Worth.  You need to know the fair market value of your home.  It is not what the town assessor says.  It is not what your neighbor says. It is not what your hairdresser says.  See #1 above and ask your Great Broker to do a thorough market analysis and then go over that carefully.  Be honest with yourself. Remember, you are entitled to Fair Market Value. Nothing more and nothing less.

5.   Price Your Home Properly. Again, see #1 above and listen to your Great Brokers advice on pricing your property. Keep Fair Market Value in mind.  You cannot expect to get more than that no matter how much you think you need. The market doesn't care how much you need. The market doesn't care how much your neighbor got at the height of the boom. Listen to your Brokers advice and price your home properly.

6.   Know Your Objective.  Are you trying to achieve a certain price (Fair Market Value) or do you want to sell quickly to take advantage of lower prices someplace else?  Or to settle debts with high interest rates that are destroying your net worth? Or whatever.  But know what it is you want to accomplish with the sale of your home.

7.   Know Your Costs.  Know exactly what it is going to cost to sell your home.  Ask your Broker for a Net Sheet so that there are no surprises at Closing.  Attorney's fee's, bank payoffs, state and local taxes etc.

8.    Stage Your Home.  This is different than fixing up the problems.  Staging is really decorating your home so that it shows it off to full advantage.  There are professionals in this discipline who can help you for a fee but you can also get a lot of good advice from your broker and the firm they work for. Email me and i'll be glad to send you free of charge the Newcastle Square Realty "Market Preparation Guide".

9.   Make Your Home Accessible.  Be ready and willing to have your home shown to perspective buyers on short notice.  Making your home difficult to see makes it difficult to sell. You WANT exposure, you WANT people to know your home is on the market. You WANT people to drive by your home and then you WANT them to come see your home. Make sure your broker will commit to a speedy insertion into MLS and will fully cooperate with other brokers in arranging showings.  Too many brokers drag their feet getting back to other brokers because they hope to sell their own listings.  This may be good for them but not for you.

   My best advice, the advice that I give to family members living in other parts of the country is, find the broker you are most comfortable with from the most successful brokerage firm in your area, take their advice and you will have the best chance of getting your home sold in the shortest possible amount of time for the highest possible price.

Jim Cosgrove

Using Video to Sell Real Estate in Mid Coast Maine

 I have had a little extra time in my schedule recently and with that time I have been looking at new ideas on how to best show a home to as many people as possible and deliver information in a way that they will respond to. So after attending a training at the Maine Association of Realtor's Convention and trying out every bit of free software for producing videos I have a finished product. I would really like to know what people think of it.

And here is the listing for this home.

Tom Field

Don't You Want to Sell Your Home?

    An old friend called me yesterday.  Many years ago when I was very new to the real estate business and she was the Office Manager at the first agency I hung my license at, she was very kind, very helpful and very encouraging to someone who didn't have a clue as they say and for that I will always be grateful and appreciative.  But yesterdays call was not to re hash old times or even a pleasant chat.  We both now run Agencies of our own and my friend was calling to complain about the behavior of one of the Brokers in my office.

   It seems that the Newcastle Square Realty broker had driven up the driveway of one of my friends Listings with a client.  The client liked the look of the home, they subsequently called my friend, made an appointment to see the home, toured it and now we quite possibly may have an offer coming on that home.

   What's the problem you ask?  Isn't that what real estate brokers do?  Take people who want to buy homes to see the homes of people who want to sell their home. Well yes.  And no.  My friend, the Listing Broker in this case, had marked in the instructions on MLS that there were to be no "drive bys" of this property.  A "drive by" is when a potential purchaser drives by a home listed for sale to see if they like how it looks in person, what the condition might be, what the neighborhood is like.  The types of things that can't necessarily be seen in a small picture on an MLS data sheet.  And, in this case the home could not be seen from the road so they actually had to pull into the driveway to see it.

  There are over 900 homes listed for sale in Lincoln County.  In the month of August, 31 homes sold. If I was selling my home or if I was a broker expending time, energy and cash to get someones home sold, I would thank my lucky stars that someone was taking the time to look at that home.  I would consider that a very good thing.  But instead this Seller was mad that someone had driven up their driveway.  Their broker was upset enough about it that she was taking the time from what I'm sure was a busy schedule to call and complain. Even though this transgression resulted in a very positive showing.

    I am completely baffled and mystified by this. We are Real Estate Brokers.  We SELL homes (and land and condo's and businesses).  The only way that someone is going to buy your home is if they can see it.  If you don't make it easy for that to happen, they will go look at another one.  They have a LOT to choose from.

      I once asked a broker from a large regional company with its closest office over an hour drive away, if he found it difficult to list and sell property in our area.  No, he sniffed, if people had to wait a week or more for an appointment they would think the property was more valuable and would be willing to pay more.  I have noticed that his listings tend to stay on the market a long time.  A very long time.

   Here at Newcastle Square Realty we have put away all of the old signs which used to be so much in vogue, that said "Shown By Appointment". We use a real big sign that says "FOR SALE" . We often have custom signs made that put pertinent details and the price right out for everyone to see. We put as much information on the Internet as we can fit.  We put tons of pictures.  We put virtual tours on our website and Realtor.com. We encourage buyers to drive by homes and look at them.  In fact we hope buyers will drive by homes and look at them. If buyers call us we will move heaven and earth to get them into that home they want to see just as quickly as we possibly can.  We will do everything we can to make it as easy as possible for them to buy the home they want.

   At Newcastle Square Realty we only know one way to sell homes.  Very aggressively. If you are ambivalent about selling your home, don't waste your time or ours.  If you want your home "added to a portfolio" there's another guy in town you can call.  If you're not ready to clean your house up, touch up the chipped paint, and make it easy to show, maybe you don't really want to sell? 

   But if you are ready to sell don't you want the company with a reputation for results?  If you're ready to buy don't you want to work with a broker that will help you accomplish your goal and not put up roadblocks?  Call us, we may be out driving by homes with buyers but we'll get right back to you.

Jim Cosgrove

   

Home Staging in Damariscotta

   Today's Guest Blogger is Bonnie Grenier, owner of Day's Cove Interiors in Damariscotta, who talks with us about one of her first staging jobs here in Mid Coast, Maine. 

    My first local staging job happened quite by accident. I wanted to check out the house before beginning renovations on my own kitchen.  A new house with an updated kitchen would help me avoid the dust, mayhem, confusion, and stress that inevitably accompany every kitchen project.

   I was intrigued by the house because of the great location, right on Day's Cove with an ever changing water view as the tide goes in and out. The outside is immaculate with very attractive landscaping. My high expectations for the house were totally obliterated when I walked through the front door into a dark, dated, dirty and cluttered house with bright red tile in the foyer and adjacent kitchen.  you couldn't miss the stale odor of a house that has been vacant and closed up for months.

   My first thoughts were that this house was incredibly dated and in dire need of staging. There was so much potential, but I knew most buyers would not be able to get past the red floor and dark paneling throughout the house. (Very 70's!) Then, there were all those faded pictures adorning the walls, not to mention at least 3 dozen plates on the walls in the kitchen and dining room. Ahhh...so much "stuff" to look at inside at the expense of that fabulous water view!

   Fortunately, a forward thinking real estate broker and the attorney for the estate selling the home agreed to let me stage the house with a generous budget.  (No small leap of faith in an area of the country where staging has yet to come into it's own!) We agreed that 2%-3% of the asking price was a fair amount for a staging budget.

    We hired a terrific painter with a crew of two who painted 2/3 of the paneling in the house with 3 coats of paint.  A new tile floor in the kitchen and foyer were a no brainer.  The three quarter bath was updated with paint, new light fixtures, and removal of a very dated vanity mirror. We kept the light blue sink, toilet and shower to save on costs but new grey paint on the paneling muted their impact.  We eliminated a fair amount of furniture throughout the house to visually enhance the space.  Our "carpenter on call" did a great job on a variety of small jobs. Fresh bedding, removal of yellowed  accordion style shower curtains in both baths, and a really good cleaning completed our staging efforts.

   That's not to say we couldn't have done more, but given our budget we got a lot of bang for our buck and the changes were remarkable (even if I do say so myself!) The entire job took about 6 weeks, and that was with time off for Christmas and New Years.

   Now, the house has a great, attractive space for entertaining, water views from every room, and is in move in condition.  If my husband and I hadn't already begun construction on our new kitchen in the meantime, my staged house would be a serious contender!  However, you may want to take a look!

  In this competitive real estate market, every home needs to look its best to have a chance of selling. If you'd like to talk with Bonnie Grenier she can be reached via email, dayscoveinteriors@roadrunner.com or by phone 207-563-1305.To see this home in it's new splendor please call Lee Simard or Bill Byrnes at Newcastle Square Realty.