Tuesday, March 18, 2008
Saturday, October 6, 2007
Staging...what does it really mean?
If you've been looking into real estate lately you've no doubt heard about home staging. Have you wondered what 'staging' really means?
As you've looked at homes for sale, you have probably walked into at least one property and thought, "Oh my goodness, what were they thinking?" - or - "This place needs a lot of work!"
That's where staging comes in. The point is to clear away all the excess 'stuff', fix what needs fixing, update what needs updating, do a deep cleaning, and create a sense of space and light.
There's a big difference between interior decorating and home staging:
Interior decorating is tailored specifically to the owner's tastes and budget, as well as to the way the owner lives and uses the space. It should say something about the person who lives there and reflect the owner's style and personality.
As you've looked at homes for sale, you have probably walked into at least one property and thought, "Oh my goodness, what were they thinking?" - or - "This place needs a lot of work!"
That's where staging comes in. The point is to clear away all the excess 'stuff', fix what needs fixing, update what needs updating, do a deep cleaning, and create a sense of space and light.
There's a big difference between interior decorating and home staging:
Interior decorating is tailored specifically to the owner's tastes and budget, as well as to the way the owner lives and uses the space. It should say something about the person who lives there and reflect the owner's style and personality.
Home staging is tailored to appeal to general home buyers who are trying to visualize themselves in the home, like a model home. Furniture is arranged in rooms as 'cues' for how to use the space, but with few extras so buyers can mentally replace what is there with their own things and visualize how they would use the space. You want potential buyers to focus on the space rather than on 'your stuff' and make an emotional connection with your home by suggesting a lifestyle to which they aspire.
Another difference is staging improvements are usually budget-minded. Only improve those things that will add to the bottom line, and keep improvement costs in balance with the cost of the home. For instance, if new carpet is needed you wouldn't install high grade carpet in a starter home, even if that's what you would choose if you were planning to continue living there.
Paint is the least expensive way to drastically improve interiors. If you have trouble selecting colors, it's relatively inexpensive to get a color consultation with a professional designer who will provide you with a suggested color palette for your home.
Only about 10% of buyers can use their imaginations to look beyond what is there to see the potenial in a room. Staging helps the other 90% visualize themselves living in the home.
As far as color is concerned, don't play it too safe...painting everything off-white is boring and a little color can make a dramatic impact. A recent client bought a home with a deep red wall in the dining room and kitchen. She said she really liked it and planned to keep it, but would never have dared paint it that color herself!
Have questions or need help with staging? Want to connect with professional stagers (can include de-cluttering, packing, getting rid of 'stuff', fixups and painting, adding/re-arranging furnishings and accessories as needed) or color consultants? I've had both sellers and buyers use their services. Just email for Help!
Sunday, September 30, 2007
Foreclosures and REOs
Continuing on the topic of getting a deal, there is a lot of talk about foreclosure and bank owned properties (REOs) these days. People often think this is the best way to get a good deal.
Occasionally there are good deals to be had, but more often the properties are in disrepair and banks are not very open to negotiation. Their definition of TLC and yours could be worlds apart! Be prepared to invest both time and money, and be aware you are buying the property in 'AS IS' condition.
Banks also take their own sweet time. Even though our purchase agreements specifically state that 'time is of the essence', it's not uncommon to wait weeks to get a response during which time they collect multiple offers. Where negotiation usually is part of coming to an agreement, banks most often just accept or reject an offer...so make your best offer up front if you are making an offer on a bank owned property.
The best deals are still most often made buying from a 'real person' rather than a bank. They tend to be more motivated to sell, their properties tend to be in better condition and they are usually more willing to fix issues that may come up in an inspection.
Occasionally there are good deals to be had, but more often the properties are in disrepair and banks are not very open to negotiation. Their definition of TLC and yours could be worlds apart! Be prepared to invest both time and money, and be aware you are buying the property in 'AS IS' condition.Banks also take their own sweet time. Even though our purchase agreements specifically state that 'time is of the essence', it's not uncommon to wait weeks to get a response during which time they collect multiple offers. Where negotiation usually is part of coming to an agreement, banks most often just accept or reject an offer...so make your best offer up front if you are making an offer on a bank owned property.
The best deals are still most often made buying from a 'real person' rather than a bank. They tend to be more motivated to sell, their properties tend to be in better condition and they are usually more willing to fix issues that may come up in an inspection.
Sunday, September 23, 2007
Getting a deal
With all the buzz these days about foreclosures and the current buyer's market thoughts often turn to the deals that can be made.
It's a great time to be buying, but don't expect to buy for a price way below list price. In any market, list price is an indication of what a seller is willing to accept at that point in time... current market conditions have likely already been taken into account, and the current price may have already been reduced from original list price.
In any market, some properties are overpriced and some properties are priced below actual value. Before making an offer, do a comparative market assesment to get a sense of the property's current value... it could be that you're getting a good deal even at full list price!
Year-to-date average sale price in the 13-county Twin Cities metro area is 95.4% of list price. This means the metrowide average sale price for a home listed at $225,000 is about $215,000.
Keep in mind this is the metrowide average, and market conditions can vary significantly from community to community. Click here to find out current market conditions for 125 Twin Cities communities.
It's a great time to be buying, but don't expect to buy for a price way below list price. In any market, list price is an indication of what a seller is willing to accept at that point in time... current market conditions have likely already been taken into account, and the current price may have already been reduced from original list price.In any market, some properties are overpriced and some properties are priced below actual value. Before making an offer, do a comparative market assesment to get a sense of the property's current value... it could be that you're getting a good deal even at full list price!
Year-to-date average sale price in the 13-county Twin Cities metro area is 95.4% of list price. This means the metrowide average sale price for a home listed at $225,000 is about $215,000.
Keep in mind this is the metrowide average, and market conditions can vary significantly from community to community. Click here to find out current market conditions for 125 Twin Cities communities.
Friday, September 21, 2007
Going out of town? Have someone watch your home...
Yesterday was a good example of why it's important to have someone checking on your home while you're out of town.
We stopped at a client's home yesterday to take some measurements, and were welcomed by a fairly strong gas smell. We called CenterPoint Energy and sure enough...there was a gas leak! If we hadn't stopped by, there could have been signficant gas buildup by the time the owner got back home after a few weeks...a potentially dangerous situation.
When you smell gas inside your home or building:
1) Leave immediately! Do not use electric switches, telephones (including cell phones), or anything that could cause a spark.
2) Call CenterPoint Energy Emergency/Gas Leak Service - they check suspected gas leaks at no cost to you
Minneapolis/St. Paul Area: 612-372-5050
Toll-free: 1-800-722-9326
Click here for gas leak information from CenterPoint Energy.
We stopped at a client's home yesterday to take some measurements, and were welcomed by a fairly strong gas smell. We called CenterPoint Energy and sure enough...there was a gas leak! If we hadn't stopped by, there could have been signficant gas buildup by the time the owner got back home after a few weeks...a potentially dangerous situation.When you smell gas inside your home or building:
1) Leave immediately! Do not use electric switches, telephones (including cell phones), or anything that could cause a spark.
2) Call CenterPoint Energy Emergency/Gas Leak Service - they check suspected gas leaks at no cost to you
Minneapolis/St. Paul Area: 612-372-5050
Toll-free: 1-800-722-9326
Click here for gas leak information from CenterPoint Energy.
Tuesday, June 12, 2007
SOLD!
With all the talk of the downturn in the real estate market one would think buyers can take as much time as they want to make a decision because the property will still be available while they make up their minds.
Well, my experience just the last few days has shown that not to be the case. I had one client write an offer on a property to find that she was competing with another buyer...it happens in any market. I can't tell you how many times I have shown a property that has been on the market for a long time then ends up in multiple offers.
The lesson here is...if you find a property you really like, don't wait...it only takes one person to buy and you never when that person is going to come along. If you're thinking about making an offer on a property, ask yourself how you would feel if you decided to buy and it was gone. If you find yourself feeling extremely disappointed or have knots in your stomach...it's time to make an offer!
I'm going out with a buyer today who had selected three properties to view. Since yesterday morning, one by one all three have sold! Now we're starting over with a new list...hopefully we'll have some properties to see today.
Interest rates have been on the rise...could that be inspiring the buyers who have been waiting to see what the market is doing to make the move?
Well, my experience just the last few days has shown that not to be the case. I had one client write an offer on a property to find that she was competing with another buyer...it happens in any market. I can't tell you how many times I have shown a property that has been on the market for a long time then ends up in multiple offers.The lesson here is...if you find a property you really like, don't wait...it only takes one person to buy and you never when that person is going to come along. If you're thinking about making an offer on a property, ask yourself how you would feel if you decided to buy and it was gone. If you find yourself feeling extremely disappointed or have knots in your stomach...it's time to make an offer!
I'm going out with a buyer today who had selected three properties to view. Since yesterday morning, one by one all three have sold! Now we're starting over with a new list...hopefully we'll have some properties to see today.
Interest rates have been on the rise...could that be inspiring the buyers who have been waiting to see what the market is doing to make the move?
Monday, June 11, 2007
Location, Location, Location
You've probably heard it said that the three most important things in real estate are location, location, and location. It's usually spoken in regard to property value and resale value, which has validity.
What you don't hear as often is how important location also is in personal value. It's so important because it's something you can't change. You can create interior place in your home that reflects you wherever you are...but you can't change the location of your home. That's something you choose but can't change unless you move, and if it doesn't fit it can have a profound impact on your sense of well-being.
If you're considering a move, it could just mean moving to another part of the area where you already live, but it could also be that you are looking for a whole new place experience. If you are considering a move to a different city, area or country think about the different factors that make up that sense of place and what impact they will have on you. Sense of place includes things like:
What you don't hear as often is how important location also is in personal value. It's so important because it's something you can't change. You can create interior place in your home that reflects you wherever you are...but you can't change the location of your home. That's something you choose but can't change unless you move, and if it doesn't fit it can have a profound impact on your sense of well-being.
If you're considering a move, it could just mean moving to another part of the area where you already live, but it could also be that you are looking for a whole new place experience. If you are considering a move to a different city, area or country think about the different factors that make up that sense of place and what impact they will have on you. Sense of place includes things like:
- Geography, climate
- The way people live on the landscape
- The sights, sounds, music, smells
- The people, myths, stories and other intangibles that give it a specific 'feeling'
As far as I'm concerned, I continue to love the sense of place in the Twin Cities of Minneapolis and St. Paul. Our walk yesterday on the Stone Arch Bridge over the Mississippi River in downtown Minneapolis demonstrates the wonderful mix that creates our Twin Cities sense of place...water, trees, parks, walking/riding paths, flourishing arts community, thriving city.
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