Uncategorized June 1, 2020

Why Wait Until the End of the Pandemic? List Now!

We have had “stay-at-home” restrictions during these challenging times, and as many claim, probably considered the worst time to place a home on the market. Or is it? On the contrary, it may be the optimum time.

Of course, it is always a challenge to place a home on the market. The questions you ask yourself are:  Is it the right time?, Will I get the best price?, How do I prepare my home to show in its best light?, Is the pandemic a deterrent? etc., etc.   Believe it or not, this can be compared to the winter months of January and February, and waiting to list for the Spring selling season. The proverbial Spring season is coming upon us just 3 months late.  However, if you have to sell–you have to sell, no matter what the timing and before it is too late, consider placing your home on the market now.

Just knowing what is necessary to sell your home for the time of the year will give you one leg up on your competition. Yes, your competition. There pent up sellers looking to list inventory once go back to normal. Once those houses are placed on the market the supply increases affecting the lowering of prices (Economics 101 at its best).  When a home gets on the market plays a big role on how to market that home and the price it will garner.

The bright spot about placing your home on the market now as opposed to the end of this pandemic, is that your competition is not as great (less homes on the market gives less of a choice to buyers). Which also places your home ahead of the upcoming reopening of the market onslaught of homes, including this year’s possibility of those unfortunate souls who may not have jobs waiting for them which could result in another stretch of short sales and foreclosures which will increase supply even and ultimately lower prices even more so.  With less competition now, you have a greater chance to get it shown and sold in relatively a very short amount of time.

To make matters more favorable for home sellers, buyers are a-plenty.  There are more buyers than homes for sale, especially in “The Burbs” as people are fleeing the cities to social distance by adding space.  The absorption rate (time it would take current listing to sell) in Morris County is far below six months – a true seller’s market.  (Anything above 6 mths is a buyer’s market.)  To add fuel to the buyer fire is the fact that the mortgage interest rates are “crazy” low.  In actuality, it is more affordable to own a home today than 10 years ago (interest rates with stabilizing pricing creates a lower monthly payment). FHA mortgages have become more accessible, which creates a higher buyer pool.  There are other mitigating factors, including the prospect that realizing that employees can be just, if not more, productive working from home, employers are changing their attitude of work-at-home. This not only costs companies less as the commercial space will be lessened, it also creates a better work/life balance.   All these factors, and those not mentioned, have resulted in multiple bidding wars on the homes that are currently on the market.

This higher percentage of buyers are “real buyers” vs. the “lookie-loos” we find during the normal Spring Selling Season.  With the Covid19 protocols, home showings have been relegated to virtual first showings followed by a live walk-thru when the buyer is very interested and wants to have their other senses touched.  Some purchases now are directly from a virtual showing, including open houses, where the first live visit may be during the home inspection.  Although this was in the making, the pandemic has moved up this selling format to today and maybe forever.

With pent-up demand for housing, it is the perfect storm to get a home on the market.

When choosing a Realtor to represent you in selling, especially during these challenging times, the necessity isn’t to choose one that “owns” the town with multiple listings, or who brags about how great they are by spending advertising dollars on self promotion more than on their listings’ marketing.  The real estate business is not about them, it is about the home seller and buyer.  The choice must be based on their experience, their willingness to do the right things for their client, to be able to collaborate with the seller with counseling on pricing, staging and transaction management; adapting quickly to changes; and most importantly, putting their client first and foremost.

Choose wisely and stay safe.

About the Author:  Jeffrey Halpern, Broker-Associate, Realtor, has been a full-time real estate professional since 1985.  Team leader of the Halpern Real Estate Group of Better Homes and Gardens Rand Realty, he has successfully been involved with closing thousands of real estate closings through several varying markets with his “No excuses…just a solution” approach.  He is also a Real Estate Educator, blogger and has extensive branch management experience, and Rotarian.  He lives in Morris County with his family.  With the slogan “Opening Doors, one home at a time”, he can be reached 201.317.7527 or Jeffrey.halpern@randrealty.com.

Uncategorized February 19, 2020

11 Reasons Why You Home Isn’t Selling

Posted on Jun 1 2017 – 12:06pm by Housecall

Editor’s Note: This post was originally published on June 1, 2017. Housecall continues to share this piece due to ongoing requests and reader interest.

By Charles Muotoh

When you first put your house on the market, you might be hopeful for a quick sale—especially if you’ve put a lot of money into improving the house over the years and if the neighborhood is one that has historically attracted a lot of buyers. While you shouldn’t panic if the house doesn’t sell the moment you list it, you should begin to worry if the months start flying by without any real offers. If this is the case, here are 11 reasons why your house may not be selling.

  1. You overvalued your property. If your house is overpriced, it’s simply not going to sell. Compare your property to similar properties that recently sold within your area to get a better idea of its true value. An experienced real estate agent can give you an accurate value of your home. Additionally, don’t make the mistake of tacking on the cost of any renovations you made. You can’t just assume that the cost of a renovation translates to added value.
  1. Your listing is poor. If the listing of your home includes a poorly written description without any images, a lot of buyers are going to skip over it. Make sure you and your REALTOR® put an effort into creating a listing that attracts the attention of buyers. Make sure to add high quality photographs of both the interior and exterior of your home. Don’t forget to highlight unique features as well.
  1. You’re always present at showings. Let your agent handle your showings. Buyers don’t want to have the seller lurking over their shoulder during showings, especially during an open house. This puts unwanted pressure on the buyer, which will make them uncomfortable and likely chase them away.
  1. You’re too attached. If you refuse to negotiate even a penny off your price, then there’s a good chance that you’ve become too attached to your home. If a part of you doesn’t want to sell it, or you think your house is the best house in the world, odds are you’re going to have a lot of difficulties coming to an agreement with a potential buyer.
  1. You haven’t had your home professionally cleaned. A dirty house is going to leave a bad impression on buyers. Make sure you have a professional clean your carpeting and windows before you begin showing your house.
  1. You haven’t staged your home. If you’ve already moved out, then don’t show an empty house. This makes it difficult for buyers to imagine living in it. Stage your house with furniture and decor to give buyers a better idea of how big every room is and how it can be used. You want the buyer to feel at home when they are taking the tour.
  1. You kept up all of your personal décor. Buyers are going to feel uncomfortable touring your house if you keep all of your family portraits up. Take down your personal décor so that buyers can have an easier time imagining themselves living there.
  1. Your home improvements are too personalized. You might think that the comic book mural you painted for your child’s room is absolutely incredible, but that doesn’t mean potential buyers will agree. If your home improvements are too personalized, it can scare off buyers who don’t want to pay for features they don’t want.
  1. Your home is too cluttered. Even if your home is clean, clutter can still be an issue. For example, maybe you simply have too much furniture in one of your rooms. This can make the house feel smaller than it is.
  1. Your home is in need of too many repairs. The more repairs that are needed, the less likely a buyer will want your house. Many buyers simply don’t want to deal with the cost or effort of doing repair work, even if it’s just a bunch of small repairs, such as tightening a handrail or replacing a broken tile.
  1. You chose the wrong real estate agent. In my opinion, choosing the right real estate is simply the most important decision you make in selling your home.  A good REALTOR® makes all the difference in selling your home within a reasonable time.

All these things can be fixed once you realize your mistake; however, the longer your property stays on the market, the less likely it will sell at listing price. One of the best ways to avoid making these common mistakes is by working with a professional real estate agent.

Charles Muotoh is the owner of dcrealestateguru.com, a full service real estate firm focused on leveraging digital marketing strategies to serve buyers and sellers of real estate in the Washington D.C. area.

Uncategorized June 23, 2017

At the crossroads of your real estate career?

Another year has ended. You have received your invoices for next year. (i.e. Realtor dues, MLS dues, E&O dues, etc) Evaluated the money you spent vs. the money you earned. You determine whether the passion is still there or if it ever was. And you say to yourself, “SHOULD I STAY OR SHOULD I GO?”

This is a question nearly every Realtor asks themselves at the end of every year. The answer may be easier than you think with a quick analyzation of where you are in your real estate career. Let us look at some points to consider:

1. How much money did I make? Sure you may have made some large commissions on one or two transactions, but look at the number of transactions you made. Was it less than five, and if so, if the price point and/or commission rate of your market area is reduce or the even by just 10% and you did the same number of transactions, can you afford to live on 10% less. And you know that your expenses will not be reduced.

2. Is my lifestyle or business winding down? If you are contemplating retirement and you are just living on past customers, you can be in this business forever, but is it really what you want?

3. As a part-timer, do I really do not have time to service my clients? Without a doubt, buyers and sellers deserve, no, require, a full-time agent in this most important life-changing decision.

4. Do I still have a passion for the business? Passion is the key to success in anything one does, but especially in real estate.

5. Do I have a business plan for next year or will I continue to take business as it comes? If there is no plan, there is no business.

6. Can I take my business to another level? It all starts with re-inventing your real estate business through business and social networking, and if you are willing to “get it”.

There are probably many other questions you need to ask and answer, as well as the the possibility of having your license sent back to the Real Estate Commission. This, in turn, prohibits you from earning any commission dollars from those you have worked with and those who you know may buy or sell, ever, and requires you to start all over again (licensing schooling and testing) if you decide to re-enter the industry.

Consider placing your license in referral status. It keeps your license active to refer buyers and sellers to a full-time Realtor, while still earning a commission for the referral. It allows you to move on with your life whether with a new career or an easy retirement and again earning an income.

But if it is time to go, then it is time to go – but not completely. Do not hang onto a career that just doesn’t work for you in the capacity you are in now. Save the hundreds if not thousand of dollars in expenses to you. And do not prolong what the inevitable is anyway. And most of all don’t think that you failed, you are just taking a different direction in the business to allow you to do other things. You still will have the network, you still have the capacity to help those in need of housing, and most importantly, you can still earn a referral fee that if you work it right, can make you a good source of secondary income with very little expense. As a referral agent you are still in the business without being in the business.

Uncategorized June 23, 2017

The best month to sell your home is……..

I have been wracking my brain as to what to write this week in my blog and the other day, Mitch, a friend of mine, asked me which month is the best month to sell.  Although he asked it with a little sarcastic grin as there really is no good or bad month to sell, it inspired me to give you the Realtor’s reasoning as to why to list “that” month of the year.

January.  Many relocations happen in January as companies budgets begin January 1 and therefore they know whether they will be bringing employees in or shipping them out.  Also, if your new year’s resolution includes moving on, why not in January.  Just remember as opposed to the losing wait and joining a gym resolution, once your house sells you cannot go back on that resolution.

February.  Because most sellers wait for the “spring market” to list their home, by listing in this month a seller gets a jump on the competition and possibly sell their home for slightly more than in the nexst few months, as Economics 101 tells us that a smaller supply increases demand.  It also gives the seller a wide choice of home to purchase in March after their home sells.

March.  The “spring market” is upon us.  The weather is certainly better and more buyers are looking and therefore a better chance to sell your home and a bigger selection of homes the seller can choose from.

April.  The “spring market” is in full bloom and buyers are buying and sellers are selling.  Usually this month has the most activity.

May.  If all holds true, the April showers brought May flowers and the home is full of color.  The weather is perfect and buyers are motivated because they want to be in during the summer.

June.  High school and college graduations and parents now contemplating their move to a smaller residence and buyers want to buy before summer vacations begin and to close before the upcoming school year based on an average 60-day contract to close timeline.
July.  Home sellers have sold their homes during the spring market and now are desperate to buy a home.  Also the school year is even closer and you certainly want the kids to be in their classrooms on time.

August.  If a home is not sold, they will be re-positioning their prices to be put in line with what buyers are willing to pay and buyers, using an astute Realtor, recognize it and jump on it.  And being in contract, most school systems will allow a student begin their school year in their new location.

September.  The weather is still nice and buyers have the chance to really explore homes without dragging their kids to look with them.  More than likely, the local buyers (ones that already live in area) will be staying around.  And it also gives the empty nesters the ability to buy without worrying about schools.

October.  Buyers who want to get in before the winter always look and buy at this time.  With the leaves changing their colors, the beauty of fall gives the buyer a whole different perspective on the look of the home.

November & December.  I combine these two months for they include the same reasons.  Although less in numbers, buyers looking in these two months are the most motivated.  They need to buy or they would not bother looking during the holidays and they want to be in by the beginning of the next year.  It is also the time when the house looks its best between the holiday decorations of the home, the neighborhood and the community.

So the question I answered for Mitch was not as elaborate as above, but much simpler.  The best month to list a home for sale is when the seller lists their home for sale – upon need or desire.  There are buyers all year round.  The secret to selling any home is marketing, merchandising and pricing, to a market that is ready, willing and able to buy at that time.  And interviewing and choosing a Realtor who can best assist you in achieving your goals just makes it that much easier.

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