Decluttered and Lowered Price

Decluttered and Lowered Price

We have packed the clutter and reduced our price and still don’t have action … now what?
Congratulations! By packing your clutter and reducing your price you have made your home market ready – a great first step. Now you need to look with a critical eye at what you are truly offering. Buyers are looking at a lot of property these days. Some will look at ten homes in a day, whereas just two years ago they might not have had ten to select from in total. How do you really stack up?

Did you simply box up the knickknacks, or are you decluttering the entire home and garage? With the majority of your prospective Buyers being visual personality types it is important that you eliminate what they will deem a “visual nightmare”. Cobwebs inside and out, pet “landmines” in the backyard, dirty dishes and clothes, peeling trim paint, must/mold/smoke odors … all must be addressed unless you are priced such that you substantially compensate the Buyer for these deficiencies far beyond the actual cost, or perceived cost, to mitigate them. Most often you won’t have the opportunity to negotiate these deficiencies with the Buyer – they will select another property. If you do, you will usually end up paying dearly for your lack of preparing your home for market. It is best to prepare in advance.

Regarding the price – did you merely take it from 10% over to 3% over market? Are you the very best thing out there for what you are offering, or do you need to adjust it further to compete with properties that are actually offering more for the money, or are in better condition? Buyers are incredibly price-conscious these days … sometimes to their own detriment as it is causing them at times to not act, or to not buy the home they want if they don’t get a pre-conceived discount from the List Price, regardless of how well the property is priced. Be price smart if you are committed to selling in this Market.

Our Advice: Unless your potential Buyer has a specific reason to buy your home, i.e.- their child lives next door, they want to ride their horses on the BLM land next door, your 20 foot ceilings will accommodate the Christmas tree they want, etc., you must continually monitor the competition. Remember, the other homes for sale are your competitors, and they, too, want to sell. They are watching you! They will seek advantage so they, too, can get on with their lives. You and your agent should be watching the market on a regular basis, several times a week. Also, pick up the little things around the place – consciously, or subconsciously, the Buyers will notice what you do … or don’t do. As you know, you never get a second chance at a first impression so make sure your first one counts! With few showings it is important to make each one count.

If you want to sell don’t wait to get your property perfect – get it on the market and start working on it. Your agent will work with you on what is truly important to accomplish before having any market exposure, and what will help to give you an edge as you gain market momentum.

Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, www.carsonvalleyland.com , www.experienceispriceless.blogspot.com or email us directly at carsonvalleyland@hotmail.com 775-781-5472.

Physical Condition of Foreclosure Properties

I’m going to bid on a foreclosure property … how do I know its physical condition?

That is one of the inherent risks of buying property at foreclosure auctions … you generally don’t know the condition – especially the interior. If the property owner still occupies the property you can’t access it unless it is listed for sale and you can set up a showing. If it is vacant you might be able to peek through the windows, but you are technically trespassing. Generally, you are buying the proverbial “pig in a poke”.

The Lender doesn’t own the property until after the foreclosure, and then only if there are no bids to match their minimum bid amount and they end up receiving the property. That situation presented a dilemma for the Nevada Legislature with the Seller’s Real Property Disclosure form they require for all residential transactions. In a foreclosure sale the Owner isn’t selling the property, and the Lender never lived in it. How could the Buyer be protected from known defects? Who is responsible for disclosing them?

Recognizing that the Owner isn’t involved in a foreclosure sale, the State added a clause in 2005 that requires the Trustee or Beneficiary to disclose any defects of which they are aware. The situation is still problematic for the Trustees or Beneficiaries usually have not been in the property – ever. They might, however, know of problems related to the property and are now compelled by law to disclose those before the property is conveyed. Such problems can be a neighborhood issue, something like all the windows having been vandalized, or the roof being blown off. Any defect required by a law to be disclosed must be disclosed if they have knowledge of it. Perhaps, there was correspondence from the Owner to the Lender relating the need for a new roof and a request for relief from payments so they could afford it. This type of knowledge must be related to a new Buyer by the Lender.

Our Advice: Despite the legal requirement for disclosure, proceed with caution. The Lender most likely has no knowledge of the condition of the home. If the Owner wrecks havoc as they vacate the property just prior to or subsequent to the sale the Lender would have no knowledge of the damage. Lenders usually want to sell ‘As Is”, and may ask that you waive the SRPD requirements. If you are to waive the requirements remember that you must sign the waiver document and have it notarized to be valid. A Buyer can waive the SRPD requirement in any transaction as long as it is notarized.

Be smart in your foreclosure acquisition. Your successful bid might seem like a good deal until you walk through the front door, or when you get a physical inspection to ascertain the condition of the home. Build a cushion in your bid for the unexpected … you can expect it.

When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, carsonvalleyland.com, 775-781-5472.