Louisville Real Estate News

How to Sell a Louisville Home - Pimp Your House

Louisville Homes

Staging Your Louisville Home to Sell

In case you are unfamiliar with the term, Staging is simply the concept of making your home as attractive as possible while it is on the market.  The context is the same as washing and waxing your car before trying to sell it or batheing your children before church.  You want people to have a favorable impression.

Buyers (especially the first-time home buyers currently dominating the market) often cannot imagine what a house could look like.  Instead they see what it does look like.  So, if they see a dirt, clutter, or colors they do not like, they walk away.  Occasionally this is to their own detriment as they may pass on an excellent home over something that has little relevance.  However, it is ALWAYS a problem for you as a seller. 

I am not a Stager nor did I stay in a Holiday Inn Express last night.  I do, however, know what Louisville buyers expect when they enter a house.  More importantly, I know what they do NOT expect.  An unkept, odor-filled house comes in third after dead-bodies and functioning meth labs. 

Excluding price and location, the difference between a home selling and languishing  is generally its condition.  The good news is that most issues can be resolved quickly and inexpensively.  Best of all, professional Stagers do exist in Louisville and can help address the critical items that would otherwise cause problems.  During the listing appointment, your real estate agent (me, of course) will talk about these things so they can be addressed prior to putting the house on the market.

Key Points

Cleaning

On multiple occasions, I have entered a home with clients only to turn around and walk back out.  This only occurs because the home is a mess or has a strong odor.  Each time, it is disappointing as the clients obviously had an interest in the home.  As sellers, cleaning is possibly the best investment you can make in your home.  A few hours of work and $50 worth of supplies could put hundreds if not thousands of dollars in your pocket.  If you are too busy, spend the money and hire a cleaning service.

Clean and Clutter freeClutter

Your pictures, bowling trophies, thimble collections, etc are great.  They reflect who you are and make help turn your house into a home.  You should display these items proudly UNLESS you are trying to sell.  Buyers have their own stuff and want to try to envision it in the house.  This is hard enough under the best of circumstances, but nearly impossible if your stuff is in the way (see paragraph 2).  So pack it up.

While you are at it, pack everything that is not an absolute necessity for the next few months.  This includes out of season clothes, extra dishes, towels, linens, shoes, books, children's toys, etc.  Countertops should be mostly clear, closets should be 1/2 full, and walls should have a minimal number of items hanging from them.  The object is to make the home look as spacious as possible.  When in doubt, pack it. 

Yikes!Color

The black paint supports your teenager's Goth image, the blue dining room shows your dedication to the University of Kentucky, and the purple inspires passion in the master bedroom.  I get it.  Now paint over it.  The chances of another sex-crazed, Wildcat fan with a manic-depressive kid buying your home are low.  You need to appeal to the masses.  Again, buyers can't see past color.  It's such an easy thing to do.

Purpose

Finally, remember that each room should have one purpose.  Take the computer out of the kitchen.  Remove the card table from the center of the living room and take the home gym out of the master bedroom.

Summary

Simple things can prevent your home from selling for top dollar or even from selling at all.  By properly preparing your home for the market, you can influence buyers.  Take a few minutes, start at the front door, and walk through your home as a buyer would.  Ask yourself if you notice the house or the stuff.  Are things out of place or dirty?  Can you move through it easily and does everything make sense?  If you see something wrong, buyers will too.  You need to fix it before the house goes on the market.  

There are professional Stagers in Louisville who can help for a fairly minimal cost.  During the listing appointment, I'll be glad to give you some contact names.

 

This the 4th post in a 7-part series.  For more, click the following link...How to Sell a Louisville Home

 

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Erik Hitzelberger is a licensed REALTOR with RE/MAX Alliance in Louisville. If you need a Louisville Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Prospect, Middletown, Jeffersontown (J-Town), Fern Creek, Okolona, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Louisville Homes 

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How to Sell a Louisville Home - The Price Puzzle

Determining the proper price for your Louisville Home

Now that you understand Why Pricing Your Home Correctly is so important, the next step is to actually understand the process.  Determining the proper list price for your home is a lot like constructing a puzzle.

Selling Louisville homes

Start with the Outside

The process starts by constructing the framework.  Your real estate agent --that's me of course:)-- will review information from you, past and current homes for sale, tax records, and Google Maps to determine the basic characteristics of your home.  Among other things, I am looking for

  • Style
  • Square Footage
  • # of Bedrooms
  • Number of Baths
  • Presence of a Garage
  • Presence of a Basement
  • Features (Hardwood, Granite, Tile, Deck, Fireplace, Pool, etc)
  • Lot Size and Description
  • Surrounding Amenities that help values (golf course, parks, playground) and,
  • Those which hurt (cemetaries, highways, and prisons).

Gathering and organizing all of this data is equivalent to assembling all of the edge pieces.  The borders are now defined, but a lot of work still needs to be done before the picture is clear.

Working on the Big Picture

The next step is to start filling in the center.  This is often best accomplished by gathering similar pieces that define large or unique sections of the puzzle.  Likewise, your agent researches the homes in your area of Louisville that have been on the market in the last 6-12 months.  As I look at each home, I try to determine whether it is related to yours or if it needs to be set aside and worked into the puzzle later.  The most similar properties are studied in attempt to determine why they sold (or didn't sell) for a given price.  Your home is then compared versus each of the similar properties to identify strengths and weaknesses.  After some time, a very large section of the puzzle is defined.

Filling in the Fringe Details

Neighborhood data comes next.  During this portion of research, my main concern is to see how the market is doing.  Louisville real estate is hyper-local and one neighborhood may be flourishing while the next is floundering.  I'll look at how long it takes homes to sell, number of homes on the market, recent sales, number of foreclosures or short sales, etc.  Most likely, I'll drive through the neighborhood and past your house to make sure I understand why the data is what it is.  Once these trends are understood, the puzzle is 95% complete.  I am now able to see enough to determine a fairly accurate price range and am ready to visit your home.

The Final Pieces

The puzzle comes together during the tour of your home and our subsequent conversation.  No CMA can completed accurately without seeing the home.  (This is why I have such disdain for "Automated CMAs," but that is the subject of another post).  The condition of your home is a major factor in determining whether you will be able to sell at the top of the price range or whether an Arsonist would be a more appropriate hire.

After touring your home, we'll discuss your motivations and schedule for moving.  Any items that need to be corrected will also be discussed.  These are the last pieces of the puzzle.  I can now recommend a sales price and listing price that will give you the best chance to get your house sold.

Special Note

At no point in the process do I consider what you owe, need, or want to get out of the house when determining price.  Simply put, the market doesn't care whether you own the house free and clear or are so far underwater you can't even tell which way is up.  I, of course, care deeply about making sure you get every last penny you can.  Later in this series, I'll discuss a few tips that will put a few coins in your pocket but pricing unrealisitically is not one of them.

This the 3rd post in a 7-part series.  For more, click the following link...How to Sell a Louisville Home

 

*Photo licensed via Creative Commons from Jared on Flickr.

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Erik Hitzelberger is a licensed REALTOR with RE/MAX Alliance in Louisville. If you need a Louisville Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Prospect, Middletown, Jeffersontown (J-Town), Fern Creek, Okolona, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Louisville Homes 

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How To Sell A Louisville Home - Price

Pricing your Louisville Home to Sell

"I'm not giving my house away!"

"I won't take a dime less than $300,000."

"I put $50,000 into this house and I expect to get every penny of it back."

I imagine playing ball with Timmy in Waverly Hills Sanatorium would cause me less consternation than sitting across a kitchen table from a seller who just uttered those words.  Hair-raising, spine-tingling, bowel-loosening horror is the closest description I can come up with. As a listing agent, my job is protect your interests while helping you achieve your goal of selling the house.  This is generally accomplished by working WITH you to get the most possible money in the shortest amount of time.  Exclamations like those above, indicate we are not only not on the same page, but also not reading from the same book.

Value - Capitalism Style

The value of any Louisville home is the price a willing buyer and willing seller agree upon.  Buyers and their agents are educated.  Buyers have access to automated CMAs, tax records, and other tools that can give them an indication of where your home should be priced.  Agents have even more data as well as algorithms, market knowledge, and experience to draw upon.  If either or both think your Louisville home is overpriced, they will not waste their time scheduling a tour.

Having your home sit, will cost you even more money.  First, you continue to make mortgage payments every month.  Much of that payment is interest that you will not recover in a sale.  Second, properties that have been on the market a long time tend to become stigmatized.  Even if you lower the price to market value, buyers think there must be something wrong with it.  The end result, is you have to make as additional reduction.

If you really want to get the most money when selling your Louisville home, you will price it at or slightly (2-3%) above market value.  This value is determined by analyzing active and sold homes in your area with similar square footage, features and amenities.  Please note that what you want or need is not a factor in this equation.  Although, the calculated price will hopefully cover both.

The best part of accurate pricing is the chance for a quick sale.  Studies have proven that homes get the most activity within the first 6-8 weeks.  When the price is right, buyers will want to see the home.  Of course, the more buyers who show-up at your door, the higher the odds are you will get an offer.

So, as we sit down to talk about listing your home, the correct statement should be "I want to price my home at market value so it will sell and I can get on with my life."  If you say this, I promise I'll have a huge smile on my face as soon as I get back up off the floor.  I'll know you are serious and that together we will accomplish your goals.

 

* * * * *

Erik Hitzelberger is a licensed REALTOR with RE/MAX Alliance in Louisville. If you need a Louisville Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Prospect, Middletown, Jeffersontown (J-Town), Fern Creek, Okolona, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Louisville Homes 

Get Updates in a Reader

 Get Louisville Real Estate News by Email