The First Seven Steps Your Realtor Must Take

August 7, 2012 By Leave a Comment

You’ve signed the listing agreement, now what?

Between the signing of the listing agreement and the second week your home is on the market, there is an enormous amount of work for the listing agent. Done right, completing these tasks lays a solid foundation for a successful marketing plan for your home.

Here are the first seven things a listing broker must do once a new listing is signed.

  1. Paperwork. There is lots of paperwork. Some paperwork is mandated by the Commonwealth, some of it is by the company. The agent has to have all of the paperwork complete and in order. I even fill out paperwork for the sign installation, but some agents in very small firms will install the sign. If your agent is not highly organized and complete, it may reflect on a sloppy company or other sloppy work.
  2. Preparing the home for sale. It is you duty to prepare the home to look it’s best. But it is your agent’s duty to be helpful. Your listing agent should spend time with you and either advice or referring you to a staging professional. It is vital you take your agent’s advice or hire a staging professional. The home you live in should not look like the home you sell.
  3. Photographs. The listing agent’s third order of business is to arrange to take photographs of the property. Preparing the home for sale and great photos is the groundwork for a successful marketing campaign. Photographs, and any other media such as floor plans and home tour, are the materials necessary to market the home online and to attract the right buyers.
  4. Calendar. You should know when the agent plans to hold open houses and establish a schedule for showings. Some people refuse to show homes on Saturdays or need a day or two notice. Your agent must know your limitations and work with them. You should know what happens when, including any promotions, mailings, office tours, broker open houses, etc.
  5. MLS. With photos in hand, the agent is ready to enter the home into Multiple Listing Service. If done right, this takes some time. A complete MLS entry is the goal, including room measurements, building and area information, public records data, description, related documents, etc. The MLS entry of your home must look perfect the first moment it is published. Once it’s “live”, it is send to anyone in the system looking for a home like yours. People tend to skip homes with incomplete information and bad pictures. The very first days of the listing are most important to your marketing plan!
  6. Online Promotion. MLS and some brokerage firms syndicate listings all over the web. Listings will feed into websites such as Homes.com, Zillow, Trulia, Realtor.com, etc. These syndication are the lifeblood of the online marketing campaign. When 88% of home buyers searched online for homes last year, this is a big piece of successfully marketing a property. Tech savvy agents who understand the importance of online marketing pay for their own syndication feeds which override any company or MLS feed. This gives the listing agent more control over what the audience sees and allows buyers to directly contact the listing agent, rather than the office.
  7. Direct Mail. A “just listed” card to a radius around your home should be sent the first week the home goes on market. Just listed cards peak neighbors’ interest and they spread the word about your home in their beloved neighborhood. This is also a perfect marketing opportunity for a neighbor considering a new home who want to stay in the area.

There is so much to do the first few weeks of a listing. After that, the work load is lessened until the offers come. Still, you should expect updates on activity and a regular marketing effort that continues through the life of the listing.

To receive a copy of my Home Selling Plan, click here.

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Zen and the Art of Increasing Your Home’s Value

July 30, 2012 By Leave a Comment

Raising two kids and running two businesses, our home can get very messy, very fast. I used to easily fall into feeling overwhelmed and crowded in my own home, thinking it’s time to move and find more space. My temporary solution would be to do some cleaning-up, weeding out and organizing to feel better.

But in order to really fall in love with my West Roxbury home again I had to do a lot more. I started embracing aspects of minimalistic living, rethinking my relationship with all the stuff in our home. Inspired by the blog Zen Habits, the book The Joy of Less, and Throw Our Fifty Things (I only read the cover), I began the process.

For three months I set a goal of getting rid of fifty things monthly. Sounds hard? The first month was easy, the second required a little thought, and the third month was tougher but more fun than the previous two. It became a game, a personal challenge, and I found things accumulating dust and holding bad memories. Getting rid of those was liberating.

Changing my relationship with stuff has increased my home value in two ways. First, I fell in love with the space again. I enjoy the home more and feel no need to move in the foreseeable future. A larger home has no use or appeal anymore. This home is more valuable to me than ever.

The second way in which I’ve increased my home’s value is by the way it looks to others. With fewer things to store, there is more space to live. If we ever decide to sell, (or more likely rent), our home will be easier to present. Sure, we can prepare the home for sale, de-clutter and organize, but then we are faced with the challenge of storing things in the basement. We’ll feel uncomfortable without our usual things around us, rather than just living our normal daily lifestyle.

What we really want to do in our homes is enjoy time with family, play, dance, cook, eat, read, and sleep. The more stuff we have the more we spend our time at home cleaning, sorting, and organizing. I think of each possession, however small, as an added responsibility. As if just paying the mortgage isn’t a big enough responsibility!

It’s an ongoing process. I didn’t wake up one morning and enjoyed getting rid of things it took 36 years to accumulate. But now I can only recommend it. You can be liberated and find more value in your home.

Enjoy your day.

By the way, if you are thinking of buying a home soon, take a look at my post from last summer, when I began my process of de-cluttering. Minimalism to Home-Ownership talks about how to minimalism can help you become a homeowner faster.

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7 Marketing Methods a Listing Agent Must Offer Before You Hire

May 29, 2012 By Leave a Comment

When interviewing listing agents to sell your home you’ll receive books with marketing plans telling you about all the amazing things the company will do for you. Some of it is great, some of it a bunch of nonsense, and the most important stuff won’t be in there at all.

There are essential marketing strategies that must be incorporated into promoting your home when it comes on market. Ensure all of this is included before you say “Yes” to any agent:

1. Professional photographs. Agents are not photographers, usually. I don’t care what camera an agent has, a professional photographer will do better. If you think this is not important, go online and look for yourself.
If you are selling a smaller home or condo, this service is even more important, although less likely to be available to you. Smaller spaced demand excellent photography, otherwise your home will look smaller in pictures.

2. Staging your home. There is always something to be done to improve how the home looks. This doesn’t have to be expensive or elaborate, but your agent should either give you a to-do list of getting your home ready, or insist you hire a staging professional. Otherwise, the photos won’t look nice, buyers are less likely to come, and buyers will pay less for an un-staged home. You are losing thousands of dollars if you don’t invest the time and money to get the home ready to be photographed and shown.

3. Floor plans. Buyers looking online often have specifications they want and room dimensions are extremely helpful. For example, when a buyer needs a living room large enough for a grand piano, without a floor plan the listing will be skipped even if it is a perfect fit. Giving potential buyers and their agents as much information as possible helps bring the right buyers in and keep the wrong buyers from wasting your time.

4. Video. We love videos. So much information is consumed through video, and it is easier to connect with a property through a video.

5. Online Exposure. By far, the most important way to reach buyers is with online exposure to your home. Your agent must be aware of where the listing will be uploaded by MLS, or through the company through syndication, like Google Base, Zillow, Trulia, Realtor.com, etc. There are other sites, such as Craig’s list, that require a weekly update. And what about a single listing website? Those are a great way to promote a home on the market yet few agents are using this service. Ask what the agent and the company provide and how well they are versed with the online marketing strategies of listing a home. Keep away from anyone claiming technical ignorance. Failing to understand the internet’s role in marketing property unacceptable. You don’t have to know it, but your agent does.

6. Multiple Listing Service (MLS). Every agent will put your listing in to Multiple Listing Service. But how will it be done? MLS plays a huge role in the sale of your home. First, it is the means of communication with other agents. Second, it is sent directly to buyers. Third, it is syndicated to other popular websites where buyers search for homes. But put together a poor MLS listing, and you have squandered your most important marketing opportunity.

Bad MLS behavior includes posting a listing without photos, not including all information, poorly written or uninspiring description, or posting open houses late, (like Saturday night instead of Thursday morning). If your agent is not going to take MLS seriously, run.

7. Marketing to Agents. Marketing proposals from agents will say a lot about how to present homes to buyers. But the overwhelming majority of buyers will be represented by an agent. Everyone overlooks the importance of marketing direct to agents. A broker open house is just part of it. Other parts include flexibility to show the house, paying a premium commission and direct mailings to agents.

Marketing your home is the role of your listing agent. A marketing plan must include updated methods and a full spectrum of services. Think of every failure to meet one of the standards above as lost money, because it is.

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How Landlords Save the World

January 18, 2012 By Leave a Comment

The title of this entry is over-the-top, I admit, but I am just here to stick up for the landlords out there who are trying to do some good. The word “landlord” in itself has some negativity associated with it, and the use of “lord” in this context is distasteful in our American sensibility. In media, landlords are portrayed as misers ready to make a buck on the poor and take advantage of families.

Please!

Let me tell you about the landlords, the real estate investors, I know.

First and foremost, there is a commitment to maintain the property and keeping the tenant happy and comfortable, even with the high occupancy rate and the increasing rents. I am not suggesting any altruism here, but it is cheaper to keep than replace tenants. It only makes sense that tenants stay for a long-run, and take care of the property, as it is their home. Fostering that environment is essential for positive tenant-landlord relations, which is the relationship you want in between any consumer and supplier.

A rental property is a huge financial commitment and a landlord idiot enough to not take care of it and ensure it’s livability is ill suited for the job.

Yes, there are many terrible landlords out there. The worse of them are the ones who neglect their properties, fail to keep up with safety codes, and don’t treat their tenants with the respect they deserve. Just like in any occupation, in any aspect of humanity, there are some bad apples.

For more on tenant-landlord rights in Massachusetts, go to http://www.mass.gov/ago/docs/consumer/landlordtenant073007.pdf

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Three Ways to Invest in Real Estate

January 11, 2012 By Leave a Comment

Investing in real estate can seem overwhelming and reserved for the very rich. In the current economic conditions and marketplace, it may even feel a bit too risky. But if you’ve ever thought real estate investing may be right for you, this is a great time to learn about your options and how it can be done by almost anyone.

Before we learn about our options, though, let me say that I believe real estate investing can be a long a cumbersome process if you are new to it. That is not a bad thing, and I think of a lengthy process as a series of checkpoints that will make me very sure of my decision at the end. But it does mean that you have to have a critical eye, some good research skills and an a greater-than-average supply of patience. If this sounds like you, then let’s review how you can get into the lucrative business of real estate investing.

Whatever your budget, real estate can be your investment vehicle.

1. All cash deal. If you have lots of cash, you may be able to find an investment property in your area and buy it without a mortgage. The advantage of this is that you will be a highly qualified buyer and you can probably secure a property for a bit of savings over a buyer who has to get a mortgage. Another advantage of a cash buyer is that her expenses are much lower, as there is no monthly mortgage payment. This enables her to be more flexible on the rent, giving her more options in choosing tenants.

The disadvantage of an all cash deal is that it is not taking advantage of very low mortgage rates. Borrowing is pretty cheap, and if all your cash is in one place, you can’t use it elsewhere. Leverage is a real estate investor’s friend.

2. Part cash, part mortgage. The down payment minimum is 20-30%, depending on various circumstances and your financial qualifications. My rule of thumb is that you should make money, or at least break even, with this kind of down payment. If you lose money on a monthly basis, the property is not worth the price, (at least not not for an investor). Your mortgage payments, any association fees and taxes should be covered by the rent.

The advantage here is that you’ll be taking advantage of the cheap borrowing costs, and you’ll own a property with an income without the whole cash outlay.

The disadvantage is, obviously, the cost of borrowing money and the higher cost due to your mortgage payment - same as the mortgage on your home.

3. Pool of investors with little cash. Gather a few friends and family, and pool your money together to buy one property. It can even be a small property at first, but at least get into the market. If ten friends get together with $15,000 each…you do the math. The advantage is that you are in the real estate market, getting a piece of the pie, however small. It is a start, or a great single investment you have. You can hire a real estate broker and an attorney to help maybe for a stake in the property instead of commission and fees.

The disadvantage is finding like-minded individuals and putting it all together in a legally binding agreement. To me, this is just a bit of leg-work, and not so much a disadvantage, but it does add to the complexity of the transaction.

Entering the real estate market as an investor is not simple at first, but once you are in, it gets easier and easier. If you’ve ever considered investing in real estate, this is a great time to get in. Just choose your strategy and do it!

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Top Three Reasons Why Property Investment Is King

January 4, 2012 By Leave a Comment

No one wants to hear this, but I’m saying it anyway. Real estate is the best long-term financial investment. Phew…that’s a relief.

With the real estate market in the dumps for several years now, it is not easy to get back into the pro-property mind-set. But, it is exactly at these times that you should be considering expanding your real estate portfolio.

One reason I know this is because while the real estate market is dragging in most of the country, it is dominated by the professional real estate investors. Don’t you want to learn a lesson or two from them?

The professional investor loves real estate above all other investments. There are three main reasons for this.

First, real estate investing can come in many forms, just like any other investments. There are small condos, multi-family buildings, commercial, residential, mixed use properties, different towns, neighborhoods, etc. For every budget, preference and style, there is an investment instrument.

Second, real estate has a certain tangible value that you just don’t see in other investments. Property investors love that there is an asset they can visit, fix and maintain. There is a satisfaction in knowing that you have some control and responsibility in the relative value of the property.

Third, although real estate is illiquid - meaning it takes relatively a lot of time and effort to sell it - it is a versatile investment. You can hold it, or resell it when the market turns your way. You can do extensive renovations and have a quick resell, or you can hold it with tenants for years to come. Whatever it is, you have options and you can make decisions based on the best scenarios for your needs and the market conditions.

All of this assumes that you have sufficient funds for a down payment and that your expenses on the property are covered. The major drawback in investment real estate are the unavoidable expenses in maintaining it and the difficulty of selling it if you need the cash.

But this said, it may be time to consider an investment property, especially in such a critical time in the market. Opportunities and possibilities are present, and real estate investing can be a perfect fit for long-term financial goals.

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Why Hasn’t Your Home Sold?

August 17, 2011 By Leave a Comment

In the market of exasperated and exhausted home sellers, I hear a lot of great stories about why homes are not selling. They usually divide into two categories: the real estate agents not doing their jobs or the sellers are uncooperative.

Either type of story leads to the same place: how are you marketing and showing the home?

There are very few reasons why your home doesn’t sell. There is no mystery here. There are bad agents and uncooperative sellers, and both can change when they realize that this is not brain surgery. There are only two variables: the price and how well the house shows.

First of all, and at the top of the list, be realistic about the price. This is a common sticking point between agents and sellers and almost always the reason for trouble. If you insist on getting more than what the market is willing to give, you are not serious about selling, but wasting time.

You must take into consideration the issues with the location, condition and layout of the home. Don’t ignore it and don’t dance around it. Buyers know what they are looking at.

Also, home sellers sometimes hire the agent who gave the highest price in the presentation, as if this is a bidding war. This creates a situation where agents are often uncomfortable saying what they really think the house will sell for, and inflating the price knowing they will later ask for a price reduction.

Stupid. Don’t do that. Whoever brings you the highest price should be questioned about why this price is the best and how they intend to get it.

Next comes the reality about how well the home shows. Inexperienced agents are often shy (as I was in my early days), about telling homeowners their homes look awful. There are better ways to say it, but a good agent gives you a long to-do list or insists on a staging professional.

If you are serious about selling your home, it should be professionally cleaned, sparkling and smelling perfectly for every single showing. Clutter and personal belongings, (anything but furniture and a few chachkies), will get in the way of the showing.

When buyers come in, they need to see themselves in this home and be excited about it. When you leave your computer on, your mail all over the place, your clothes on door hangers, your wet towel, toothbrush and one dirty dish, buyers feel like they are invading. It’s like walking into a hotel room to find someone else’s stuff. Ech.

A bad agent doesn’t tell you the truth about the house, but instead sugar coats it to the point of misunderstanding. It is not our job to fall in love with your home! It is our job as real estate agents to tell you what you have to do to get the house sold.

Home sellers will mistake good advice for rudeness and agents make a mistake of being shy of saying what needs to be said. Instead of making tough decisions, everyone blames the economy and the weather for a home sitting on the market forever.

If any other home in your area has sold, especially if it was in your price range, their is a market for your home. Just don’t tell me a story about why the economy has not sold the house.

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Top Reasons Why Your Home is Still On Market

July 28, 2011 By Leave a Comment

by Ruth Malkin-Lerner

Are you still on market while other homes have sold? If it has been more than one season since you have put the home on the market, you may be showcasing the wrong features and missing out on really important ones.

Here are some top reasons your home is not inspiring summertime buyers.

First reason buyers are bored is bad landscaping. Has it been a while since you trimmed your shrubs and trees? In the summer months, buyers are looking at the land around the home as much as at the house itself. Overgrown shrubs, bushes and trees make the yard look messy and uninviting. It screams work.

Furthermore, summer is when we are accustomed to seeing color outdoors. It is not all about the grass, which is also important. Make sure your landscaping includes some flowers and seasonally appropriate plantings. Sure, you may have to do some maintenance, or hire someone if this is not something you enjoy.

But without some color and a good manicure, your home will look dull. Gardens bring in buyers, and keep them there longer. A great yard can cancel out some indoor negatives.

Here’s another idea - if you like gardening, add some value to your home with a small organic vegetable garden. The young buyers love it!

Second reason buyers may be turned off is poorly staged outdoor space. If you’ve been cheap about getting some good patio furniture, now is the time to do it. If you have any patio or deck space, ensure it is furnished to showcase the utility.

Your outdoor space should feel like an extension of the home, and a buyer should be able to see him or herself enjoying it, as they would a living room and bedroom.

A third reason buyers are not hanging out long enough in your home to make an offer is that there is no AC. If you have it, turn it on. If you don’t, get some window units for key areas of the house, or leave the windows open with a very discreet fan.

The worse comes out of a home when it is hot. The furniture feels overbearing, a dark room is depressing, a bad smell you may have overlooked becomes fowl.

Update your home for the season and show it as a summertime steal. Buyers will relate better to your home, spend more time in it. Bring the best summertime features out of your home and showcase it for it’s current usability.

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I’m Thinking “Beach,” House is Saying “Snow”

July 22, 2011 By Leave a Comment

It may be a drag to be on the market forever, to the point that you are either totally stressed out by the housing situation or that you completely forgot that you are trying to sell in the first place.

Well, either way, do me a huge favor. Get those photos update on MLS!

I was on MLS the other day looking for some beach-front properties in the north shore of Easter Massachusetts. There were pictures of houses on there with snow on them! It’s July! I’m thinking beach, house is saying snow…

If your agent hasn’t thought of this, call him or her right now.

There are a couple reasons why I find these outdated photos both annoying and irresponsible marketing.

First, what many of us forget is that buying a home is both an economic and emotional decision. A house must feel like home, a home that you want to come into. When you are thinking of the beach, and looking for shade to cool off, you can barely remember what it was like four months ago in the cold. It’s difficult to imagine it ever getting that cold again.

Looking at a snow-capped house seems something unrelated to a buyer’s current situation and state of mind. It says, “look how pretty I was in the winter,” instead of, “here’s the wonderful outdoor space you want to enjoy right now.”

Next, it is irrepressible marketing to have out-of-season pictures on multiple listings and in brochures as it sends two clear messages: “I’ve been on the market since the ice-age,” and “I’m not paying attention to this home’s sale.”

So if your house has been on market for months, and you are wondering why no one has come to see it since May, you may want to consider the pictures out there.

Don’t underestimate the power of photos, either. Remember, it is the first thing a potential buyers will look at that calls their attention to either put on the “yes” or “no” list for weekend showings. They’d rather put it on the “no” list, so don’t make it easier for them with an unseasonably ugly photo.

By Ruth Malkin-Lerner

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Summertime Selling Tips

July 14, 2011 By Leave a Comment

Summertime can be a great season to sell your house. Why? During these hot months, your landscaping and outdoor spaces come alive. Today’s buyers are looking for extended living areas and love usable outdoor space.

According to HGTV, outdoor spaces can bring in big bucks. Jon Seppala, president of Action Builders, notes, “Backyards and outdoor patios have to be much more substantial than in the past. Built-in grills, outdoor fireplaces, gazebos — people are looking for these features. We’ve had people who have fallen in love with the house and have decided to buy before they walked in the front door.”

The National Association of Home Builders (NAHB) has also identified a trend, noting during a recent panel that young homebuyers (Gen Xers) are looking for homes with a connection between indoor and outdoor spaces, even in colder climates, to create the perception of greater home size, even if the space is only usable for part of the year.”

Here are some tips to take advantage of Summer selling.

First, keep your home cool. Have your AC turned up to a comfortable level during showings and open houses. If you live in a region where you don’t have or need AC, be sure that you use fans or open windows for breezes to create a nice atmosphere. The last thing you need is a prospective buyer distracted by sweat or humidity. You want them focused on your wonderful home!

Heat also has a way of bringing out the worst of smells in our home. To hold these deal breakers at bay, have your carpets cleaned when you list your home for sale. Next, roll up your sleeves and be sure you clean your home before any showing. Bathrooms, laundry rooms, and kitchen are notoriously stinky. Focus your attention on these!

When your home is listed for sale, it’s your responsibility as the seller to keep your yard, landscaping, and pool maintained. Overgrown trees, shrubs, and lawns not only seriously depreciate curb appeal, they can also turn a buyer off.

If you are unable to stay on top of this task each week, hire local workers to keep your yard looking in top shape. This expense will come back to you when you make the sale.

Landscaping is expensive and buyers know this. Why not showcase one of your most valuable assets? Trim existing trees to their best advantage. Have gardens, paths, benches, and pool ready for enjoying. Buyers know that a fully landscaped yard will save them time and money. Plus, it’s ready to enjoy.

As a courtesy to prospective buyers, you may also consider compiling a list of locally recommended handy men, gardeners, and pool maintenance companies.

Finally, staging patios and porches is important. From family gatherings to al fresco meals, these hot spots get lots of use.

Start your staging with a thorough cleaning. Powerwashing decks, patios, and furniture can make dirty items look new again. For furniture that needs a bit more TLC, apply a fresh coat of paint. Next, stage for an “event.” Replace wornout cushions and invest in simple outdoor accessories. A selective arrangement of candles, glasses, and even a nice table setting can be the icing on the staging cake.

The bottom line is that caring for the outdoor living spaces of your home can make or break a sale during the Summer. Take full advantage of all your home has to offer.

Written by Carla Hill

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