Tuesday, March 27, 2012

Would you rather spend hundreds or lose thousands?

What’s a better investment for home sellers? Spending a little time and money before listing your home or waiting to see if it’s going to take a price reduction to get it sold?

I did some research on average days on market before a price reduction. Trulia has created this interactive map of the United States to show you the breakdown state by state and metro by metro. Take a look at the  Trulia chart to understand where your local market is in terms of days on market before a price reduction occurs. It's a powerful reminder of how much it costs when your home sits unsold.
Trulia Price Reduction Chart
Trulia Price Reduction Chart
For example:
The average price reduction in Kennesaw GA zip code 30144 is 6%.  Average price is $150-200K
Homes are on market an average of 54 days before the price is reduced by 6%. 
There's a 46% chance of another price reduction.
Average first price reduction = $10,500

The average price reduction in McKinney TX zip code 75069 is 6%.  Average price is $300-350K
Homes are on market an average of 75 days before the price is reduced by 6%. 
There's a 30% chance of another price reduction.
Average first price reduction = $19,500

The average price reduction in San Jose zip code 95131 is 5%.  Average price is $400-450K
Homes are on market an average of 67 days before the price is reduced by 5%. 
There's a 44% chance of another price reduction.
Average first price reduction = $21,250

The bottom line? Try to avoid letting an unprepared home sit on the market. Staging your home for sale is the smart move if you want to avoid a costly price reduction.

A home staging consultation starts at $175. 

A home staging consultation helps you get your home ready to sell. We'll give you an objective professional opinion on making the most of what you have by maximizing the space and features of your home.

We want to help you get the home sold before a price reduction is needed. It's proven that home staging reduces days on market and creates a more marketable property both online and with showings.

Let us do what we do best. Create a professionally marketed property that sells ahead of the competition.  At Hampton Redesign, a professional home staging company serving the Albuquerque and Santa Fe NM area, we know your bottom line will benefit.

Wednesday, March 14, 2012

Are you trying to chase down the market?

What does this mean in terms of selling your home? Chasing down the market means you list your home at the price you want to achieve, but due to market conditions your home stays on the market x number of days until your price is reduced to what the current market will bear before it sells.

Your home will stay listed for sale until your home reaches the price a willing buyer will pay.

Depending on what source is reporting, days on market as well as inventory is fluctuating across the country.  Here are some stats from the NAR or Realtor. com. You can see that some parts of the country have very low days on market, while others are looking at an average of a 6 month wait to sell their home.

The story keeps evolving. Although interests rates are still low and inventory is declining in many markets, prices have not rebounded all over. Yet.

What does this mean to you if you're selling your home?

The average days on market in your area may be a concern. Are you waiting to achieve the "average price"? Any home that has been on the market for 60+ days is going to be exposed to price reductions and increased expenses.

Talk to your Realtor about what you can expect if you try to hold out for price If you want to sell your home in 2012 consider all the tools available to help you achieve your best price. Staging your home to sell and marketing with professional photography is key to realizing your home's market potential. Don't get caught "chasing down the market". Price your home right from the start.

Thursday, March 8, 2012

Sellers Who Get It

Sometimes the best staging advocates are your home staging clients This morning I received a call from a homeowner seeking a staging consultation. They found Hampton Redesign online and commented that our site seemed the most comprehensive and organized.

The homeowners know their home is in a prestigious and exclusive location, will have a limited number of buyers and will be priced in the range of $1.8 - $2 million. Buyers who want to be in this location pay a premium and as there are a limited number of homes available for sale, most sellers might assume that staging your home for sale wasn't necessary.

These sellers however had already been shopping for a new home in a similar price range and were surprised at how some of the properties were presented. Master closets stuffed so full of clothes you couldn't tell how much storage there was, lack of cleanliness, odors and neglected landscaping were some of the turnoffs mentioned.

We talked for a little while about what that signals to buyers and it definitely was a turnoff to these potential buyers who couldn't understand why a $1-2 million dollar home would be shown without any preparation. He felt it was a good investment to spend a small amount of money to maximise the dollar value of their home. They really understood the value of having an objective, expert opinion to guide them through any improvements or enhancements.

It so simple. I'm sure the home they are interested in buying is clean, well-presented and staged to sell because these choosy buyers value a home that shows well.
Well staged kitchen
Staged bedroom

What's interesting to me is the majority of calls I get these days are coming directly from home -owners who choose to be proactive about getting their home ready to sell.  Real estate agents who are not advocating professional home staging to their clients - especially in this price range - are leaving money on the table. The client's money as well as their own commission.

I love it when I get calls like this from motivated sellers who get it. Now if we could just get the Real Estate Agents on board!