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Week of May 6th-12th
Property Tips and Tricks
From Clutter to Clarity - A Quick Guide to Preparing Your Home for Sale
Below we'll tackle the challenge of getting your home ready for sale, what to do, and what not to do.
A perfect pre-sale preparation can maximize the sales price of your home, and generate a significant return on your invested capital, and time. Preparing your home the wrong way can rob you of precious resources, and result in your property sitting on the market longer, which could lower the selling price.
Many homeowners either try to do too much or not enough when preparing for a sale. Setting too many goals can be overwhelming and hinder progress, while doing too little can prevent you from fully showcasing your property's potential.
Today, we'll outline a plan to make sure your home stands out from others on the market and attracts the right buyer.
Recently, I was visiting with family who are considering selling their home of 30+ years. The house, while solidly built and in good shape, has several common maintenance items that need to be tended to as well as interior fixtures and finishes that are older. Not to mention a number of personal items throughout the home. So, a question that begs to be answered, where to start and where to stop in preparing the home for sale?
The question above can be a difficult one to answer, one that is dependent on access to capital, market demographics, and other variables. Let's go over some principles that can guide any homeowner.
First, remember that while you may know your house well and have done some DIY projects, you’re not a home expert. The issues you think you have might not need the solutions you think they do. For example, a slow-flowing sink might not require pipe repairs but just a simple cleaning of the faucet aerator. Similarly, an issue that you think requires a relatively simple fix can in fact be more involved.
Getting your home ready for sale the right way often requires professional help. Most buyers will hire a licensed home inspector to thoroughly check your property. Why not beat them to it? Spending $500 or $1,000 on a pre-sale inspection can pay off by providing a detailed report of what needs attention.
Next - answer these questions - will someone risk hurting themselves or a loved one by operating anything at the home? Will operating something cause further damage to it or something else in the house? Health and safety items are almost always good to fix.
Other tasks, from simple ones like painting walls and changing fixtures to more complex ones like remodeling kitchens and bathrooms, require a deeper understanding of the market, competition, and sales timeline. This is where professional guidance can be invaluable. Remember, you’re not a builder or remodeler and you don’t know the ideal buyer’s preferences.
It’s a good idea to get estimates from licensed professionals for any issues found in the home inspection. Doing this ahead of time can prevent problems later. Once a home is under contract, the buyer has a limited time to get an inspection and estimates. Running out of time can put pressure on the deal, and pressure can break deals.
When it comes to personal items, less is more. Remove your belongings, including family photos and personal items. Consider staging the home if possible. Buyers can better envision themselves in your home if they don’t see reminders of you everywhere.
Selling your home, especially one you’ve lived in for years, can be emotional. But remember, this is now a business transaction. Letting emotions guide your decisions can hurt the process. Your choices should be based on what objectively works best for selling your home, not on how you feel.
Lastly, selling a home is an inconvenience. It requires time and effort, emotional stress, uncertainty, disruption of daily life, and paperwork. So, you may as well do it the right way to best reap the benefits.
Real Estate News
Beyond the Jump - Decoding the Home Sales Price Hike in Monterey County
The median sales price for single family homes in Monterey County experienced a significant increase in April 2024 compared to April 2023, and years before. This surge can be attributed to three factors, in my opinion:
- Mortgage Rate Stability
- Limited Inventory
- Stock Market Performance
Let's dive in.
1. Mortgage Rate Stability: Buyers tend to be more responsive to changes in mortgage rates rather than the actual rates. Despite high rates, the stability observed over recent months has allowed buyers to adapt. After all, the hallmark of the human species is great adaptability.
2. Limited Inventory: Unlike some other regions across the country, Monterey County hasn't seen a significant increase in housing inventory this spring. This scarcity of supply naturally exerts upward pressure on prices. I've heard a few people comment that they feel "real estate prices shouldn't be this high". Remember - economics doesn't care about your feelings. Its supply and demand.
3. Stock Market Performance: The chart above shows a significant jump in median sales price from April 2023 to April 2024. From November 2023 through March 2024, the S&P 500 absolutely ripped, experiencing a string of positive months.
When did something like this happen before? If we look back, we see a similar increase in the median sales price from April 2020 to April 2021. This was during the early days of the pandemic when the government introduced stimulus programs. During that time, the performance of the S&P 500 had a string of positive months from November 2020 through March 2021.
The correlation suggests that increases in stock market values lead to increases in median sales prices as investors moved gains into tangible assets.
The rest of 2024 will reveal how these factors continue to influence the housing market. Recent unemployment numbers suggest mounting headwinds in the economy.
Investment portfolios aside, the S&P 500 companies account for just 18% of total US employment, and 96% of companies in the U.S. with $100MM or more in annual revenue are private (not in the S&P 500 or listed on the stock market). So, there are plenty of companies throughout the country that do not have their performance publicly monitored or reported on.
Worked with me in the past? Share your experience.
Jonathan Balog
DRE# 01980970
Broker
M: 831.747.0310
[email protected]
Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.
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