Grand Rapids MI real estate listings and homes for sale, home buying, home selling information – Kevin Walters - Five Star Midwest

Kevin's Real Estate Blog

Pricing Your Home

November 6th, 2007 1:56 PM

A comparative market analysis (CMA) is essential to determine the value of residential property. Location and characteristics of the property are the key elements in determining value; therefore the basis for valuation is similar properties in your area. The market analysis takes into account the amount received from recent sales of comparable properties and the quantity and quality of comparable properties currently on the market. The desired end result is to find a price that will attract a willing and able buyer in a reasonable time.

There are essential three categories of comparable homes that you should use to help determine the value of your home. The first category is comparable homes that are currently on the market (i.e. available to purchase). This category represents the competition for your home. There are likely several homes in this category that potential buyers will cross-shop while they are considering your home.

The second category of comparable homes to consider is homes that have recently sold (i.e. within the last year). This category represents what buyers were (and hopefully still are) willing to pay for a home that is comparable to yours.

The third category of comparable homes to consider in your CMA is homes that were for sale but did NOT sell. Real estate agents often refer to these homes as “expired listings”. More often than not, homes that do not sell are overpriced. Therefore, this category represents what buyers were NOT willing to pay for a home comparable to yours.

Once the value of your home has been determined, you can decide on an offering price that will achieve your goals. Generally, the price should not exceed the value by more than 5% or potential buyers may not even make offers. Naturally, if you want to sell quickly your asking price should be very near the value.

The following are a few things to keep in mind about pricing:

Realistic pricing will achieve maximum price in a reasonable time.
You cost or profit desire is irrelevant; the market determines price.
The costs of improvements are almost always more than the added value.
Houses that remain on the market for a long time do not get shown.
A house that is priced right from the beginning achieves the highest proceeds.

Posted by Kevin Walters on November 6th, 2007 1:56 PM

Preparing your home for the market

November 30th, 2007 3:32 PM

Your home has just one chance to make a great impression with each potential buyer. The following “tricks of the trade” will help you keep track of what needs to be done. The whole idea is to present a clean, spacious clutter-free home – the kind of place you would like to buy! Accomplish a little everyday and before long your home will be ready to make the impression that can make the sale.

To help your home’s curb appeal…

Mow the lawn
Trim the shrubs
Edge gardens and walkways
Weed and mulch
Sweep walkways and driveway, remove branches, litter or toys
Add color and fill in bare spots with plantings
Remove mildew or moss from walls or walks with bleach and water or other cleaner
Take stains off your driveway with cleanser or kitty litter
Stack woodpile neatly
Clean and repair patio and deck area
Remove any outdoor furniture which is not in good repair
Make sure pool or spa sparkles
Replace old storm doors
Check for flat fitting roof shingles
Repair broken windows and shutters, replace torn screens, make sure frames and seams have good caulking
Hose off exterior wood and trim, replace damaged bricks or wood
Touch up exterior paint, repair gutters and eaves
Clean and remove rust from any window air conditioners
Paint the front door and mailbox
Add a new front door mat and consider seasonal door decorations
Shine brass hardware on front door, outside lighting fixtures, etc.
Make sure doorbell is in good working order

General Interior Tips…

· Add fresh coat of interior paint in light, neutral colors

· Shampoo carpeting, replace if necessary

· Clean & wax hardwood floors

· Clean & wash kitchen & bathroom floors

· Wash all windows, vacuum blinds, wash window sills

· Clean fireplace

· Clean out & organize closets, add extra space by packing clothes and items you won’t need again until after you’ve moved

· Remove extra furniture, worn rugs, and items you don’t use: keep papers, toys, etc. picked up.

· Repair problems such as loose door knobs, cracked molding, leaking taps and toilets, squeaky doors, closets or screen doors which are off their tracks

· Add dishes of potpourri or drop of vanilla or bath oil on light bulbs for scent

· Secure jewelry, cash and other valuables

In The Living Room…

· Make it cozy & inviting, discard chipped or worn furniture and frayed or worn rugs

In The Dining Room…

· Set the table for a formal dinner

In The Kitchen…

· Make sure appliances are spotless inside and out (try baking soda for cleaning Formica stains)

· Make sure all appliances are in perfect working order

· Clean often forgotten spots on top of refrigerator and under sink

· Wax or sponge floor to a brilliant shine, clean baseboards

· De-clutter all counter space, remove countertop appliances

· Organize items inside cabinets, pre-pack anything you won’t be using before you move

In The Bathrooms…

· Remove all rust and mildew

· Make sure tile, fixtures, shower doors, etc. are immaculate and shining

· Make sure all fixtures are in good repair

· Replace loose caulking or grout

· Make sure lighting is bright but soft

In The Master Bedroom…

· Organize furnishings to create a spacious look with well-defined sitting, sleeping and dressing areas

In The Garage…

· Sell, give away or throw out unnecessary items

· Clean oily cement floors

· Provide strong overhead light

· Tidy storage or work areas

In The Basement…

· Sell, give away or throw out unnecessary items

· Organize and create more floor space by hanging tools and placing items on shelves

· Clean water heater and drain sediment

· Change furnace filter

· Make inspection access easy

· Clean & paint concrete floors & walls

· Provide strong overhead lighting

Posted by Kevin Walters on November 30th, 2007 3:32 PM

Determining Your Costs and Profits

November 25th, 2007 2:53 PM

The following is partial list of costs that may be associated with the sale of your home. Once you have calculated your total costs, simply subtract that number from your sale price to determine your profit (or loss).

1st Mortgage
2nd Mortgage (Home Equity Loan)
Title Insurance
Closing Fee
Legal/Attorney Fees
Home Warranty Policy
Inspection Fees (Termite, Structural, Radon, etc.)
Document Preparation Fees
Appraisal Fee
Recording Fee
Property Taxes (Prorations, etc.)
Local Transfer Taxes
Local Revenue Stamps
Advertising/Marketing Fees

If you need more detail or would like average figures for each of the above categories, please contact me at Kevin@grapidshomes.com.

Posted by Kevin Walters on November 25th, 2007 2:53 PM

Creating a Property Profile

November 16th, 2007 8:26 AM

Creating a Property Profile
The following features will aid in identifying properties that are comparable to yours for proper price determination. As you read through the list, write down the specifics about your home. Many of the features listed below are the subject of commonly asked questions by prospective buyers.

-Assessed Value
-Year Built
-Design Style (Ranch, 2-Story, etc.)
-Number of Bedrooms
-Heating Source (Gas Forced Air, Radiant, etc.)
-School District
-Total Square Footage (Above Grade + Finished Below Grade)
-Number of Bathrooms (Full + Half)
-Air Conditioning (Yes or No?)
-Fireplace (Yes or No?)
-Garage (Number of stalls, attached or not)
-Basement (Full? Finished?)
-Other Rooms (Rec. Room/Dining Room, etc.)
-Pool (Yes or No?)
-Acreage/Lot Size
-Water (City or Well?)
-Sewer/SepticOut Buildings
-Creating a Property Profile

After you've created your property profile, try to incorporate most of the data into a brochure or flyer about your property. The flyer can be posted in a box in your front yard and also handed out to interested prospects.

Posted by Kevin Walters on November 16th, 2007 8:26 AM

The Importance of Intelligent Pricing

November 12th, 2007 6:23 PM

Determining the best asking price for a home can be one of the most challenging aspects of selling a home. It is also one of the most important. If your home is listed at a price that is above market value, you will miss out on prospective buyers who would otherwise be prime candidates to purchase your home. If you list at a price that is below market value, you will ultimately sell for a price that is not the optimum value for your home and risk “leaving money (profit) on the table”. More buyers purchase their properties at market value than above market value. The percentage increases as the price falls even further below market value. Therefore, by pricing your property at market value, you expose it to a much greater percentage of prospective buyers. Thus increasing your chances for a sale while ensuring a final sale price that properly reflects the market of your home.

Another critical factor to keep in mind when pricing your home is timing. A property attracts the most attention, excitement and interest from the real estate community and potential buyers when it is first listed on the market. Improper pricing at the initial stages of trying to sell your home misses out on this peak interest period and may result in your property languishing on the market. Eventually, this may lead to a below market value sale price or even worse, no sale at all. Therefore, your home has the highest chances for a successful and profitable sale when it is new on the market and the price is reasonably established.

Posted by Kevin Walters on November 12th, 2007 6:23 PM