3 MOST IMPORTANT ROOMS THAT SELL HOMES

Looking to sell your home and want to get the best possible price, consider these three rooms as your "MPR"s (Most Powerful Rooms).

As a homeowner you want to make the best presentation possible to make your home an easy sell.  You want prospective buyers to see themselves living in the house you are selling.  You want to create a picture and draw them into that picture, just as a novelist wants to draw you into their book.

Below are listed the "MPR"s in your home that can sell your home.

1. The Living Room - A recent survey of buyers found that 47% reported the living room as their most important room.  Whether for personal family gatherings or for more formal affairs, buyers appreciated being able to "see themselves" entertaining there.  Staging - either professional or personal- goes a long way in selling the living room.  

2. The Master Bedroom - 42% of buyers stated that the master bedroom was most important to them.  Described as a retreat, my space, or my sanctuary, the master bedroom continues to be a place buyer need to feel relaxed, comfortable and "away from the maddening crowd". Creating the atmosphere that sells a home needs an inviting master bedroom/suite.

3. The Kitchen - This may be hard to believe, but 35% of buyer stated that the kitchen was their most important room when buying a home.  For many growing families, the kitchen is the nerve center for the family.  It is the hub of all that begins and ends most days.  The "family chef" needs the kitchen to be a space where they can move about comfortably and not feel boxed in.

If you are a seller these three rooms need to be the focal point of your marketing program.  Create the atmosphere that says, "This is home. I can see myself living here." then mark it sold!

WHAT IS THE VALUE OF YOUR HOME AND WHY IS IT IMPORTANT?

 Your neighbor just sold their home and got what you think is a rather good price.  Now you are curious.  How much is my home worth and how can I determine its value?  A recent Harris Poll indicates that nearly 73% of Americans say knowing the value of their home is important.  

Below are 5 tools you can use to determine the value of your home.

1. An online valuation tool - It has been reported that nearly 22% of U.S. homeowners determine the value of their home via an online estimator.  The technical term for these tools is automated valuation model or AVM.  Companies like Zillow and Redfin use such sites.  These sites utilize public records like property transfers, deeds of ownership and tax assessments along with some mathematical modeling to predict your home's value based on recent sales and listing prices in the area.

2. Comparative Market Analysis (CMA) - A local real estate agent can provide a comparative market analysis based on recent sales in your area of homes with similar characteristics as yours, i.e., age, bedrooms, baths, square footage, and other special features.

3. The FHFA Home Price Index Calculator - This tool uses repeat sales method to track a house's change in value from one sale to the next.  Then the information estimates how values fluctuate in each market.  It is an easy way to see how much your home may have appreciated over time.

4. Professional Appraiser - Although lenders require a home appraisal before they will approve a mortgage, there is nothing to say you cannot hire an appraiser to estimate your home's value.  More than 28% of U.S. homeowners determine their home's value through an appraisal.  Among the things an appraiser evaluates is the current market, the property, and comparable properties to create a final opinion of value for the home.

5. Evaluate Comparable Properties - Over 56% of U.S. homeowners estimate their home's value by looking at comparable properties.  To choose accurate comps you must utilize an "apple to apples" approach.  Look for similar size, location, condition, and upgrades.  You will need at least three valid comps to come up with a likely range of market value for you home.

Why is home value important?

Knowing your home's value allows you to:

• evaluate what you can afford.
• determine an appropriate listing price.
• decide how to price your house.  
• refinance ability.
• home equity line of credit. 
• insurance premium.
• property tax

all are based on home value.

Bottom line:  A house is worth whatever someone will pay for it! 

Knowing your home value better prepares you to buy, sell or refinance or tap into your home's equity or even negotiate lower property taxes.  It can also provide you with a picture of your overall financial health.

IN LOVE WITH A HISTORIC HOME?

 Are you one of those amazing people who loves historic homes and wants to restore them to their former glory? Perhaps you think owning a historic home is going to be a series of problems one right after another.  Perhaps you have a historic home, and you are looking to sell it to "just the right family".

Here are a few things to consider.

1. Selling a historic home is like a work of art. It is to your advantage if you know the history of your historic home.  You might be surprised by what secrets the walls of your home would tell about its life. Check with the local public records or historical society to see if a chapter on your home exist. 

2. Builders do not build like they used to.  Older homes often have the most amazing interiors and architectural features reflective of an original commitment to artistry and quality.  Traditional craftsmanship often does not have a brand name attached.  

3. Young people love old homes.   Many people in their early 30s and mid-40s in markets like Philadelphia and Washington live in historic homes that are 90 years old or older because historic homes are in established neighborhoods that foster community and are located close to the downtown area.

The love affair with historic homes is not just for the "old".  Today's millennials are in love with historic homes in a big way.  The location of historic homes puts millennials at the epicenter of metropolitan living.

 

UNDERSTANDING FLOOD INSURANCE

 "Just a few inches of water from a flood can cause thousands of dollars in damage," according to the National Flood Insurance Program.

Here are a few key takeaways to help you understand flood insurance and the need for the protection it provides.

1. Flood insurance protects you and your lender. If you purchase a home in a federally designated high-risk flood zone* or floodplain, most lenders will require you to purchase Flood Insurance not only to protect your interest but theirs also.  

"A mortgage lender has a financial interest to protect the property value in the event of a catastrophic flood loss, especially if that home is located in an area a higher risk for flooding, " according to Kyle Herring at All American Public Adjusters in Austin, Texas. 

2. Flood insurance is a separate policy from homeowners insurance. The hazard insurance section of a standard homeowner's insurance policies does not cover flooding from external natural causes, like heavy rains or man-made disasters, i.e. a dam break.

3. Flood insurance works like other insurance products.  The insured party pays an annual premium based on the property's flood risk and the deductible they choose.  Should the property be damaged or destroyed by flooding, the homeowner receives cash for money required to repair the damage, up to the limits of the policy.  Separate coverage of up to $100,000 for personal property is also available.

4. How do I determine if my property needs flood insurance before I purchase it?  The Federal Emergency Management Agency (FEMA) website - FloodSmart.gov publishes a map showing properties in a high-risk area where flood insurance is required.  You can also check with your mortgage lender and your real estate agent to learn what FEMA Flood Zone you property is located in.  

Knowing if your future home is in a high-risk flood zone is a fact to consider when purchasing.  The additional cost of the flood insurance will increase your monthly mortgage payments. Thoughts to consider as you prepare to buy.

* Check out my November 3, 2019 blog on "How Do I Know If I Need Flood Insurance."

SPRUCE UP FOR SPRING!

 It is the first week in March and in some places in the U.S. snow is still on the ground while in other flowers and trees are beginning to bud.  

Here is a "short list" of home projects you can do to Spruce Up for Spring.

1. Clean off your roof and clean out gutters and down spouts.  Winter can be extremely brutal for roof and gutters with the extra weight of snow and freezing temperatures.  Check the ridge lines and valleys for signs of wear and tear.  Clean gutters of debris and check to ensure each section of gutter is securely fastened.  Unclog downspouts and replace worn or damages sections of the downspout system.

2. Check exterior walls and foundations. For those living in colder climates this is extremely important as ice and snow can penetrate cracks in the foundation and exterior walls causing damage.  For those living in a milder climate, it is still important to examine the walls and foundation for signs of wear and tear.  Warmer climates and excessive rain can compromise the integrity of exterior walls and foundations.

3. Caulk around windows.  Summer follows spring and you will want to keep energy costs down.  Removing and replacing tired caulk from around windowsills and sashes can help keep reduce stress on your air conditioner.

4. Prep your air conditioner.  It is time for your air conditioner's six-month checkup.   Professional air conditioner service will go a long way to keep the a/c running at optimal level during the summer season.  For those whose climate is warm yea-round, a six-month checkup will aid in reducing monthly electrical costs.

5. Clean windows and screens. Everyone's favorite project is cleaning windows and washing screens in springtime.  A dirty job, but somebody must do it.  Cleaning windows gives you the opportunity to see if the frame, sash, sill, or panes of glass need repair or replacement.  The same is true for those screens you may have stored for the winter.  Worn and frail screens can be repaired. New screening can be installed to take advantage of those fantastic spring days.

6. Start lawn care.  Those in the colder climates know their lawn has taken a beating with the harsh weather.  Spring lawn care gives you the opportunity to feed and fertilize your lawn and re-seed areas that have been hardest hit by colder weather.  People in warmer regions should begin their lawn projects as well.  Lawns in milder climates need TLC too.  Weed prevention, replacing drained lawn nutrients and re-seeding will promote strong lawn growth and a healthy yard.

This is by no means a comprehensive list of springtime projects, but they will keep you busy for a few of those great spring weekends.