We recently had a client ask us some questions pertaining to the sale of their home and we felt that everyone could benefit from our answers. This is a copy of an actual email from our client and our response. Hope you all learn something from it:
Hi Chris! Hope all is well with you!
We are really gearing up for the sale of our house. We have a few questions :
a) Is now a good time?
b) Is it worth it to get new appliances for the kitchen?c) Is it worth it to repaint the kitchen and give a neutral tone (if you remember our kitchen is painted a really bright yellow)?
d) Anything need to be done to the cabinets in the kitchen (other than cleaning them)?
We look forward to hearing from you and working with you!
Here is our answer:
Hi guys,
Here are a few of my thoughts.
Timing:
Homes are sold in this area throughout the year. Typically, the home selling season runs aggressively from Feb 15 through May 30. June and July is good but it slows down some during the summer from the peak months of Feb thru May. August is generally the second slowest month of the year next to December (although we have been busy this month) and then around Sept 15 through Nov. 10 the market generally has a second wind and these months are similar in activity to June and July. Nov 15 through Feb 1 is usually a bad time to sell your home.
Now that I have said all this…keep in mind that the above is a very general time sequence. In the 25 years that I have been doing this, the market has generally follows this above pattern. There have been times however, where there are aberration’s to the general pattern. I’ve seen some December’s rock because of “end of year tax issues” and I have seen August month’s where the market has been very good. So you should take the above time frame as only a general guide. Homes sell all year long…homes sell everyday!
This year, the market for homes of your exact type was going bonkers from March thru May. This was stimulated by the tax credit offered by the government. Once this tax credit ended, the activity slowed some. BUT, the market is still very good for single family detached homes below $700,000. The market did follow the above pattern this year. Feb thru May were excellent (except for the real high value homes above $1.2 mil.) June and July were good but there was a slight slow down and August activity has backed off a bit. But homes are selling. My business partner Jose, just showed a home in Laguna Hills in the high $500’s that sold in 1 day. I think the best advice I could give you in timing for your home is as follows:
1. Don’t worry so much about the time of year
2. Remember the three most important factors in selling your home
A) It is all about price…price it right and you will sell
B) Condition of the home. If the home is priced right and shows like a model home, or at the very least like a home that has been taken care of and the buyer has to do very little once they move in (move in ready) then a home will sell in this market.
C) Make it easy to show….in another word, allow a lock box on the property without restrictions. In this way an agent will call the owner, check to see if the time works out for the seller and then goes to the property. If the agent cannot get in touch with the seller, then they leave a message as to the time they will be there and they proceed with their schedule. If the seller is not home, then the agent uses the lock box. This is considered as the definition of an “easy to show” house.
The above is our mantra to our sellers…price it right, make it nice and make it easy. This usually get the home sold regardless of the time of year you market your home.
The answer to B,C, and D of your email was really addressed above but let me be more specific. The kitchen and the bathrooms are to two areas of your house that are most important in regards to the interior of your house. If you spend money on upgrading a home for sale, the kitchen and bathrooms are where you get the best return on your “upgrading” investment. Most buyers want to see the granite counters, stainless steal appliances, new fixtures and sink, new cabinets and nice floors in a kitchen. The bathrooms also follow this “want” list by most buyers. Granite counters in the bathrooms, new fixtures and stone showers and baths. BUT, this is not always possible. My general advise to sellers is to clean up the house in the best possible way without having to spend a lot of money. Spend hours doing work…not money. Clean up the yards, plant some flowers, manicure the grass (or re- sod), paint some rooms, touch up the walls, move around some furniture to open up rooms, GET RID OF THE CLUTTER that life requires us to live with. These are the most important things. If a client does want to upgrade in more elaborate ways, then the kitchen and bathrooms are the place to do it because that gives the best return in dollars. Stainless steal appliances are a good addition but they really make a difference when combined with granite counters, new cabinets (or repainted or restained old cabinets) and upgraded floors. The cabinets and the flooring is not as important but the appliances in combination with the granite counters seem to be the big item buyers are looking for. Appliances by themselves are always welcomed by buyers but it might not make your house more valuable in equity terms…only easier to sell because it just eliminates a buyers objection in having to buy new ones. If you are going to upgraded your appliances, then do it in stainless steal and match ALL the appliances in stainless steal. I do not think you get the pop with buyers on new appliances if they are white or black as you do with stainless steal.
As far as painting the kitchen, this is always good and a neutral color is always more desirable. Cleaning the cabinets, or repainting them or re-staining them is always a good thing to do and fairly inexpensive. Any improvement to your house that is relatively inexpensive is ALWAYS a good thing to do. It is the small things that add up to make a house nice. General overall cleanliness and exactness in look, both inside and outside, is the highest priority. Curb appeal is VERY important. What a buyer views from the front as they drive up to the house, often times sets the buyers attitude towards the property.
If you want Jose and myself to come over to your house to give you our opinions, we would be happy to do so. We both have been in the business a long time and Jose is good at this stuff too. We sometimes disagree on our opinions…so this could give you the full range of input. Just let us know if we can help. I also have a client who is an interior decorator who has given me a couple of free evaluation cards to hand out to client. She will come over to your home and advise you as to setting up your house to sell…for free. She does this in hopes of obtaining new clients but there is no obligations on your part. If you want me to call her and talk to her about your home I will be happy to do so.
That’s about all I got.
Chris
