Archive for March, 2015

thank you builders for helping me sell FSBO

Wednesday, March 18th, 2015

Home Builder prices are now 30% higher than comparable resale properties. Historically, it is 15% higher. Thank you home builders for making my FSBO property more appealing to the home buyer. “Builders are making a conscious decision to sell fewer homes at higher prices than to sell more homes at lower prices.” according to ZIllow economist, Stan Humphries. Between 2008 to 2012, I saw many builder developments go back to the banks and resold for 20-40 cents on the dollar. Plus I saw many larger builders selling developments for 40-50% of the development costs. To put this is real dollars. Example: an 80 lot development, ready to have homes built on it cost (in major metro areas) $80,000 to $100,00 per lot. This includes the cost of purchasing the raw land, getting it developed and approved with roads, utilities, etc. These developments were then sold for $40,000 - $50,000 per lot. Today, with an improving economy, low interest rates the buyers are looking to purchase. The builders owning these properties now own them for $50,000 less then the cost 5 years ago, plus materials & labor have stayed the same. So, why do they ask so much for these properties? Simple answer is ‘because they can’. To their surprise, the public is not buying it.

FSBO Prices

FSBO properties asking prices are 30% that of a comparable new builder home. Plus the resale development is already finished. Have you ever lived in a new home and over half of your community had vacant lots. When these lots are finally built on, you take the risk they will have smaller, less expensive homes which hurt your value. Big risks.

Single most important item to get right

Wednesday, March 11th, 2015

searching online for a new home. First thing that jumps out at you is the main photo. This is the single most important item to get right, if you plan to market your property online. SELLERS TAKE NOTE! Buyers searching in your area first see a home page. Lot’s of Main Photos. Once a search is completed, many houses are seen. Do they click on all, or just the good ones? Northern properties with snow or dormant lawns are understandable in the winter time, but as soon as the snow melts or the grass turns green you need a new photo right away. It’s easy to replace photos online. Log in, click manage your photos, then add new ones and remove old ones. If you have someone doing this for you, they should have no problem with it. It they tell you they can’t, won’t or are unable, then it is time to find someone else. Main photos don’t necessarily need to be the front of your property. New, beautiful updated kitchens can work. Or maybe the backyard deck with a view. Utility rooms, bath rooms, and unfinished basements are a no, no. Are you taking the photos with a smart phone. Some photos you take can be horizontal, vertical or upside down. Review them and correct before putting them online. If you have trouble opening the photos quickly on your home computer, then possibly they are too large of a file. Resize to a slightly smaller size. The websites you use automatically resize the format and this process maybe slow if your photos are too large. Another suggestion for those that have many trees in the front yard that block the view of your home. Take several photos today, right now, while the leaves are off of the trees. Save those photos for the day you put your property on the market. Buyers want to see the front of your property and this will help you in the sale.