In this video, we look at how and why to sell this winter. There are tips for first-time sellers, an update on market conditions, interest rates, inventory, and we also discuss the 3D’s of staging and what to expect during the listing process.
Did you enjoy this video or find it helpful? If so, be sure to 𝐋𝐈𝐊𝐄, 𝐒𝐇𝐀𝐑𝐄, & 𝐒𝐔𝐁𝐒𝐂𝐑𝐈𝐁𝐄 to my channel.
Eric Andersen, B.A., M.Div.
Owner/Designated Managing Broker, Eric Andersen Homes
📲 Text/Call: 708.674.6725
📩 Email: eric@eandersenhomes.com
🌎 www.ericandersenhomes.com
Transcript:
Thinking of selling your home this winter? In this video, we’re going to talk about why it’s a great time to sell and how to get your home market-ready. I’m Eric with Eric Andersen Homes, and I specialize in Burr Ridge and the western suburbs, though I’ve sold homes all throughout the Chicagoland area, about 20 miles from the city in any direction. I also specialize in relocation, so if you’re currently out of state and looking to make a move to the Chicagoland area, call, text, or email anytime. You can find all of my contact information in the comments, below. Now, back to the subject at hand. What makes now a great time to sell? Basic supply and demand. There are more buyers out there than sellers. Average market time remains low at a median of 18 days, and sale prices remain high. Homeowners have seen an average of 18% appreciation over the past year. Multiple offers are still common, with the Realtors Confidence index showing owners getting an average of 3.6 offers. CoreLogic, who tracks economic data, showed that homeowners gained an average of $51,500 in equity over the past year. Of course, most people selling will also have to buy as well, and waiting will only cost you more as home prices and interest rates continue to rise. Here’s a quick look at mortgage rate projections over 2022. While there are some differences in opinion over how much rates will climb, there is a clear consensus that rates will continue to climb, which means unless you’re paying cash, your purchase will cost you more if you wait to make a move. Now, the logistics of selling and buying can be a bit tricky, but I specialize in tricky and have helped several clients navigate that transition successfully, so you can leave the worrying to me. Two additional points on selling now that we haven’t mentioned yet. The chief economist at Freddie Mac said, “These low mortgage rates, combined with the tailwind of first-time homebuyers entering the market, means that purchase demand will remain strong into next year.” Millennials are increasingly entering the housing market, meaning there are a significant number of first-time buyers out there, to our earlier point about demand outpacing supply. Jessica Lautz of NAR has also pointed out the role of the pandemic in the current housing situation. She said, “Home sellers have historically moved when something in their lives changed – a new baby, a marriage, a divorce or a new job. The pandemic has impacted everyone, and for many this became an impetus to sell.” The other great thing about selling during a low-inventory, sellers’ market like this is you can not only get a higher price, but you can leverage high demand and low market time to get better terms during negotiation. There are several other factors to consider when negotiating and evaluating offers, like closing timeline, tax proration, financial terms, and whether or not your buyer is able to waive any of the usual contingencies, like the inspection or appraisal. A solid, as-is, cash offer with no inspection or appraisal would put you, the seller, in a great position. Now that we’ve talked about why current market conditions are favorable to sellers, I’d also like to give you an overview of what to expect during the listing process and how to get your home market-ready. The first thing we do is meet to discuss preliminary improvements and pricing. The technical term agents use for getting a home market-ready is ‘staging.’ You can think of staging like getting ready for a date. We’re trying to match your home up with the perfect buyer, and if you don’t put some effort into making it presentable, the market is going to say, “Thank you, next” and swipe left on Zillow. You only have one chance to make a great first impression. We will talk specifics when I and my staging team come out to see your home, but in general, you want to follow the 3 Ds: deep clean, declutter, and depersonalize. Deep cleaning is important because you want the buyer to know you’ve taken care of the home. If they show up to see your home and it’s a mess, they’ll wonder what else you’ve been neglecting. Deodorizing also falls under deep clean. The last thing you want your prospective buyers smelling is the overwhelming stench of cat, dog, or teenage boy. Those will not help sell your home. The smell of fresh-baked cookies, however, will. I once read somewhere that Disney makes certain areas of their park smell like vanilla because it makes visitors hungry, and then they spend more at the restaurants. If you leave out a plate of cookies during showings, not only will the home smell nice, you might even appeal to the buyer’s sense of reciprocity. You’re giving them something, and the natural response to this is to want to give something in return. Maybe an offer? It’s subtle, but details like this will set your home apart from the others. Other than deep clean, you’ll also want to declutter. A messy home will not show well, and clutter will make each room look smaller. Decluttering might include removing some furniture, possessions, and/or clothing. But you don’t want the place to look vacant. Even new construction homes, which are typically unoccupied, will stage a model home for viewing. A well-staged home will help your buyer envision themselves living there, and that’s what you’re going for. Finally, you want to depersonalize. You might be very proud of the boar you hunted and killed, but if its head is the first thing buyers see when entering your house, it’ll probably freak them out. Remember, the idea here is you want to help the buyer see themselves living there, not get a window into your personal life. Anything that will distract them from envisioning where they want to put the furniture needs to go. This includes anything that will offend them. Selling your home is not the time to show off your “Dump Trump” or “Let’s Go Brandon” paraphernalia. If you must make inflammatory political statements, that’s what social media is for, right? Don’t use your home as a political platform. At least not while you’re trying to sell it. After closing, you can do whatever you like. I once took some die-hard Sox fans to what would have been the perfect home for them, except the sellers had a whole room filled with Cubs stuff. You don’t want to lose the sale over something that is completely unrelated to the physical property. And if you do, you can go ahead and hire a different agent, because then you’re just wasting your time and mine. Or, better yet, keep your home off the market until you’re serious about selling. You wouldn’t believe the things I’ve seen in homes I’ve shown. After my preliminary walkthrough, I’ll send out my staging team for a free consultation. This is what they do for a living, and they will give you specific, room-by-room recommendations for how to get your home market-ready for maximum impact. If you’re interested in making some more significant improvements, such as painting, replacing fixtures, or making larger renovations, my stagers can also offer their expert guidance. Rental furniture is also available at an additional cost, which may make sense with a vacant home at higher price points, say, close to $1 million or more. Once your home is staged and market-ready,we will take photos, video, and footage for the 3D tour. These are not cheap photos I take with my phone. These are HD photos taken by professionals who do this for a living, experts who know how to get the best angles and enhance the photos with editing. I also think it’s important to get aerial photos to give buyers a better sense of the exterior. Plus, it gives a nice, luxury impression of the home, so this is something I feature on all of my listings. We also do a property video and a 3D tour. I runtargeted digital ads behind these to get you more exposure than you will receive from most agents, and it also gives buyers a better feel for your home before they come to see it in person. This is especially helpful if you live in the home, as it can minimize the hassle of having to show to buyers who wouldn’t have been interested if they had only known the layout. The property video and especially 3D tour will allow them to get a really good feel for the home upfront. You can think of it as a 24/7 virtual open house. With millennials making up such a large demographic of buyers and the pandemic still going on, it’s more important than ever to leverage technology for your benefit. Once all of the marketing materials are ready, we will go live on the public MLS. It often makes sense to take advantage of the private listing network while we’re doing staging and getting market-ready. Now, I’m happy to meet with you several months before you’re ready to list to give you a feel for what improvements you might consider and to discuss current home prices. Once you’re ready to list, plan about two or three weeks from our first appointment until the time we go live. The first week will be the initial walkthrough with me, the staging consultation, and then your implementation of the suggestions. You may need more time for this if you decide to paint, replace carpet, counters, or make other more significant improvements besides what we covered in the 3 Ds. Week two will be the interior and aerial photos plus 3D tour and property video, and then we’ll be ready to go live during week three. The other thing we do in the initial meeting is talk pricing. We will review the most similar homes that have sold near you and come up with a solid pricing strategy. But I’ll tell you right now, some homes are harder to price than others, and any agent who promises to sell your home for a specific price is lying. Nobody has a crystal ball, but we can look at the data and come up with a plan to help you maximize your profit. Much more could be said, but I hope that at least gives you a pulse on the current market and an idea of what to expect during the sale process. If you’re looking to sell your home in Burr Ridge or the western suburbs this winter, reach out anytime, and I’d be happy to discuss your specific situation. Of course, there is no charge for any of this, and I do offer flexible terms to my clients when it comes to the listing contract. I’ve done a great job for my clients and most of them have been very happy with me, but the last thing I want is for you to feel stuck with me if things aren’t working out or if your situation changes and you no longer need to sell. I’m Eric with Eric Andersen Homes, here to remove the headache from real estate and provide expert guidance for your next purchase or sale.