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Holding an Open House - Worth it or Not?

by Melissa Thompson

Home owners and Realtors often debate whether having an open house is beneficial or not.  Some sellers will insist that having an open house is the best way to sell their home, while others will want nothing to do with having potential buyers traipse through their home.  Real estate professionals have different views on this topic as well.  Some swear by open houses and feel they are critical to sales, while others never hold them and some just have them occasionally.

So, the question remains…if you are selling your home, should you hold an open house?  Here is a list of pros and cons to help you make that decision:

Pros to holding an open house:

  • Attract buyers who may not know how to start the home buying process. Purchasing a home is a process that many people are not familiar with, especially first-time home buyers. People new to home buying will need a significant amount of guidance and advice.  A positive that may result from having an open house is the possibility of a buyer who doesn’t know where to start coming to see your home.  You may also get the attention of potential buyers who just happen to drive by and see the sign for the open house. 
  • Additional exposure.  One of the most important jobs of a  Realtor representing sellers, is making sure their clients’ home is getting ample exposure.  Open houses can give extra exposure through promotional advertising such as street signs, newspaper ads and internet ads.
  • Allows buyers to look at house without feeling pressured.   With the laid-back atmosphere of an open house, prospective buyers will feel more comfortable looking around with little to no pressure from the Realtor or seller.  An interested buyer might want time to analyze the home in detail without someone looking over their shoulder.  It also provides the buyer time to look at specific details of the home that will help them decide if it is the right house for them.

Cons to holding an open house:

  • Slim chance of a sale.  The truth is that a very small percentage of homes sell as a direct result of an open house.  Honestly, the person that benefits most is the Realtor.  Open houses provide the Realtor with potential clients.  Private showings of your home are much more likely to result in a buyer than open houses.
  • Unqualified buyers.  One of the first steps in the home buying process is obtaining a Mortgage Pre-Approval .  Getting a mortgage pre-approval is essential for knowing what you can afford when buying a home.  At an open house, you may find many people walking through your home who can’t afford it.  It is a waste of time for you and your realtor to have people looking at your home when they cannot afford to possibly purchase it.
  • Nosy neighbors and “Looky Loos”. Open houses often attract inquisitive neighbors who simply want to see your house and compare it to their own.  They also might just want to see how you have your home decorated.  “Looky loos” are people who go to open houses with no intention of buying a home.  They just like to look!

The pros and cons of having an open house should be carefully considered before deciding whether to have one. With today’s technology and social media, there are a lot of other ways for people to see your home, but with the right Realtor holding the open house, it can still be the best way to impress potential buyers.

If you’re thinking about putting your home on the market, contact Melissa Thompson and let her explain how an open house can be beneficial for you.  Call her today at (901) 729-9526 or (901) 756-8900.

Photo Credit:sehatcoy.com

Selling a Home Due to Divorce

by Melissa Thompson

Moving is one of the top five most stressful life events. Divorce ranks in the top five as well.   Put those two together and you have a meltdown in the making.  If you and your spouse own a home together and you are divorcing, you are going to have to figure out what you’re going to do about the house.  This can be challenging under the most amicable of situations, and can be devastating when there is bitterness and fighting.

Since your home is likely the greatest asset that you share, selling it is often necessary when parting ways.  Sentimental value may entice one or the other of you to want to keep the home, but financial implications may keep you from doing so.  Understanding how divorce affects the sale of a home is crucial.  The emotional aspect of splitting up your family can sometimes impair your judgement, but making a poor decision regarding your home can have lasting ramifications, long after the divorce is finalized. 

Whether one spouse wants to buy out the other and keep the home or both want to sell and split the equity, selling a house while getting divorced is a rocky road that needs to be navigated intelligently.  When two people are willing to deal with each other in a peaceful, respectful way, it certainly makes the whole process easier. But often this is not the case in these situations.  Division of a home is not simple. 

When each spouse contributed to purchase the home - even if one paid more than the other - you are both going to want your fair share out of it.  Ideally, you will be able to work with an attorney or mediator to come to an agreement out of court, but if you can’t, a judge will decide for you.  This can be a very unpleasant experience for all parties involved.  If both your incomes were factored in the purchase of the house, chances are when you split that in half, neither of you can afford it on your own. If that is the case, the best solution is to sell the home and divide the assets.  There are also Tax Implications  that should be considered when you are trying to decide if you should sell before you divorce or after.

Should one of you decide to stay in the home, there are a couple of different ways to make that happen.  First, if you have the financial means to do so, you can take over the mortgage by refinancing.  This means you must qualify for the loan and be able to make the monthly payments on your own.  Your ex-spouse will be completely out of the picture.  Another way is to continue co-owning the property.  Perhaps you have children and want to keep them in their home. While this is the least disruptive option, it is precarious and requires a lot of trust.  It would have to be a very civil and friendly divorce for this to work because both parties will be responsible for the mortgage and upkeep of the house.  The bottom line is that if you plan to stay in the home, you better be sure you can afford it.  It would be prudent to work out a budget before you make the decision.

With all the financial and emotional issues that get wrapped up in the sale of a home during divorce, it’s crucial that you know what you want prior to meeting with your Realtor. It is best for you to meet with your attorneys for them to guide you through the process of deciding how to split the equity. Once you have that done, seek out an experienced Realtor like Melissa Thompson, who will gently guide you through the process with as little stress as possible.

Photo Credit: movingforwardthroughdivorce.com

2 Ways to Get the Most Money from The Sale of Your Home

by Melissa Thompson

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive the maximum value for your house?

Here are two keys to ensure that you get the highest price possible.

1. Price it a LITTLE LOW 

This may seem counterintuitive, but let’s look at this concept for a moment. Many homeowners think that pricing their homes a little OVER market value will leave them with room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price but will instead have multiple buyers fighting with each other over the house.

Realtor.com gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly under priced, especially in areas with low inventory.”

2. Use a Real Estate Professional

This, too, may seem counterintuitive. The seller may think they would make more money if they didn’t have to pay a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional.

study by Collateral Analytics, reveals that FSBOs don’t actually save any money, and in some cases may be costing themselves more, by not listing with an agent.

In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”

The results of the study showed that the differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%. Sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.

Bottom Line

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.

Let’s get together and find out how much your house is worth!  901-729-9526 or Melissa@YourKeyTomemphis.com.

By: KCM Crew

YOUR HOME SEARCH STARTS HERE            FIND OUT WHAT YOUR HOME IS WORTH  

Time on the Market Drops to New Low in 2017

by Melissa Thompson

According to recently released data from the National Association of Realtors (NAR), the median amount of time a home spent on the market hit an all-time low of only three weeks in 2017.

Strong buyer demand, a good economy, and a low inventory of new and existing homes for sale created the perfect storm to accelerate the time between listing and signing a contract. The time needed to sell a home has dropped substantially since its highest mark of 11 weeks in 2012.

The chart below shows the median weeks on the market from 1987 to today.

Time on the Market Drops to New Low in 2017 | MyKCM

Bottom Line
If you are a homeowner who is debating whether or not to list your home for sale, know that national market conditions are primed for a quick turnaround! Let’s get together to discuss exactly what’s going on in our area, today! 901-729-9526 or Melissa@YourKeyTomemphis.com.

By: KCM Crew

Selling Your House at Christmas

by Melissa Thompson

The idea of putting your home on the market during the holiday season may seem overwhelming at first, but it turns out there are several good reasons to do so. Don’t miss out on a great opportunity to get your house sold before the end of the year!

 - If people are looking for a home during the holiday season, chances are they are serious buyers.

 - Serious buyers have fewer properties to look at during this time of year, which means less competition and more money for you!

 - Since the number of listings will increase dramatically in January, that means more competition and less money for you.

 - Who doesn’t love a home delightfully decorated for the holidays?  Homes show better when festively dressed up!

 - Buyers may have more time to look at houses during their holiday breaks.

 - Some people want to buy before the end of the year for tax reasons.

 - If you sell now, it may provide an opportunity for you to be a non-contingent buyer during the Spring, when many more houses are on the market for less money. This will allow you to sell high and buy low.

Staging Your House for the Holidays     

If you would like to talk more about selling your home, give me a call at 901-756-8900 or visit my website to discover your new home!

http://www.yourkeytomemphis.com/Blog/New-Beginnings-Starting-Traditions-in-Your-New-Home

http://www.yourkeytomemphis.com/Blog/Dont-Let-the-Holidays-Stress-You-Out

http://www.yourkeytomemphis.com/Blog/Packing-101-Getting-Ready-for-a-Move

4 Reasons to Sell This Fall

by Melissa Thompson

Some Highlights:

  • Buyer demand continues to outpace the supply of homes for sale! Buyers are often competing with one another for the listings that are available!
  • Housing inventory is still under the 6-month supply that is needed for a normal housing market.
  • Perhaps the time has come for you and your family to move on and start living the life you desire.

​​Contact Melissa Thompson at Your Key to Memphis and she can help you get your house on the market and sold this autumn!  901-729-9526 or Melissa@YourKeyTomemphis.com 

By: KCM Crew

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Packing 101: Getting Ready for a Move

by Melissa Thompson

Congratulations!  You have successfully sold your home!  What a relief, right?  Now comes the hard part. Moving.  Moving is one of the top five stressors in life along with job loss, death of a loved one, divorce and major illness. Sounds fun, huh?  That’s why it is important to go about moving in a thoughtful and organized manner.  The more prepared you are, the less stress.  Packing up your house can be overwhelming, but you can make it easier by spreading it out over several weeks rather than trying to do it all right before you move.  Here is a general timeline for packing that you can use as a guide:

FOUR WEEKS BEFORE MOVING DAY: PRE-PACKING - Hopefully when you sell your house, you won’t have to immediately vacate.  About a month before moving you can begin to pre-pack items that you won’t need or use before you move.  Out of season clothing, tools and small appliances, and collectibles/knick knacks are items that you won’t miss. Hint: if your house is still on the market you can take this step as well, and it will help with staging your home for prospective buyers.

THREE WEEKS BEFORE MOVING DAY: NON-ESSENTIALS - Among the items that you didn’t pre-pack, choose those that you know you likely won’t need before moving.  Books, extra linens, and kitchen items can be packed up because you likely won’t be doing much reading, and you only need enough linens, plates, and utensils for the number of people living in the home.  CDs and DVDs can go as well.

TWO WEEKS BEFORE MOVING DAY: THE SERIOUS PACKING BEGINS - Yes…now it is time to start paring down the amount of “stuff” still in your home. If you have children,  allow them to choose a few toys/games to keep out, and box up the rest. If you have a home office, clean it out and pack what you plan to take with you.  Any jewelry and shoes that you don’t wear daily can go as well.  You may feel that two weeks is a long time to go without these items, but trust me, before you know it you will be unpacking them in your new abode!

ONE WEEK BEFORE MOVING DAY: SEVEN DAYS AND COUNTING: Now it is time to pack up all but the few things you will need to get through the last few days at your current home.  The rest of your clothes and kitchen items can go (leaving yourself what you will need until the move, of course).  Go through your medicine cabinet and toss any expired medications. Pack the rest except for the ones you take daily.

TWO DAYS BEFORE MOVING DAY: IT’S GETTING REAL YA’LL: At this point your stress level may be peaking, but if you have been following the time-line and packing a bit each week, you should be almost finished!  Box up your electronics (in their original packaging when possible), bathroom items, and any miscellaneous items that are left.  Keep a box for essential items that you will keep with you as you are moving.

MOVING DAY: IT’S HERE! All that should be left is furniture and appliances.  Whether you have hired movers to load the large items or you are doing it yourself, it will be so much more manageable with everything else already boxed up and ready to go.

IMPORTANT TIP: Label every box.  You can either write what is in the box or what room the box should go to.  Or both.  You will be glad you did when you are unpacking!

Remember that this is simply a general guideline.  You should do what is right for you and your family when it comes to packing and moving. But hopefully this will make what can be a trying and overwhelming time a little less stressful.

http://www.yourkeytomemphis.com/Blog/Selling-Your-House-in-Autumn

http://www.yourkeytomemphis.com/Blog/Hey-Millennial-Homeowners-It-May-Be-Time-to-Sell

http://www.yourkeytomemphis.com/Blog/Hey-Millennial-Homeowners-It-May-Be-Time-to-Sell

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Selling Your House in Autumn

by Melissa Thompson

With autumn fast approaching, you may think that you should wait until next spring or summer to sell your house.  While it is true that the warmer months are popular for home sales, that doesn’t mean autumn is a bad time to sell.  Some buyers, such as empty nesters and millennials, prefer shopping for a home when there is less competition from people trying to move before the beginning of the school year.  So, if you would like to sell your house before winter, here are some tips for making it attractive to buyers during autumn:

1. Keep the exterior of your home neat and clean.  Curb appeal matters…a lot. It doesn’t matter how pristine the interior is if prospective buyers never walk through the front door.  The first impression is made when they first see the property and if it doesn’t look good on the outside, they may not want to look inside.  There are unique challenges to keeping your yard looking nice when the weather is cooler and the days shorter. If you have a lot of trees dropping leaves, raking will be a full-time job.  You want buyers to see your grass!  Any dead or dying plants and flowers need to be removed or cut back.  Use a fall maintenance checklist to make sure you have your property in the best shape possible.  And if you really want to impress, plant some fall flowers in bold hues to add pops of color to your yard.

2. Stage your house for the season, but don’t go overboard.  There are holidays to look forward to during the autumn season.  Potential buyers will enjoy seeing your home decorated accordingly. It will help them picture celebrating the holidays with their own families there. Keep it simple though, because you don’t want to take the focus away from the home itself.  You risk having your house look cluttered if you have too many decorations.  Embrace autumn and the warmth and coziness it exudes.  The smell of a freshly baked apple pie, the crackle of a fire in the fireplace and tasteful autumn décor might be all it takes to seal the deal on a sale!

3. Make sure lighting is sufficient.  There will be prospective buyers who want to see your house after work and with the days being shorter, it might be dark outside when they get there.  You are not going to want them walking into a dark, unlit home.  Turn on the lights inside and out. Exterior walkways and entertainment areas, such as patios and decks, should be well lit.  If you know your house is going to be shown, leave lights on in every room.

4. Price your house appropriately.  It’s important to know what homes are selling for in your area and to price yours accordingly.  Utilize the current market analysis to determine the value of your home.  A professional Realtor can help you set the right price for your home taking into account the season and market in which you are selling.  You don’t want to scare buyers away by overpricing your house.

Contact Melissa Thompson at Your Key to Memphis and she can help you get your house on the market and sold this autumn!

http://www.yourkeytomemphis.com/Blog/America-Needs-Your-House

http://www.yourkeytomemphis.com/Blog/Home-Maintenance-Projects-You-Should-Start-Now

http://www.yourkeytomemphis.com/Blog/Fall-Curb-Appeal

America Needs Your House!!

by Melissa Thompson

The biggest challenge in today’s real estate market is a lack of housing inventory. How big of a challenge is the housing shortage? Here are what four industry economists are saying on the issue (emphases added):

Mark Fleming, First American’s Chief Economist

“The underlying fundamental issue is an overwhelming lack of supply… The supply of newly constructed homes is also sagging, adding to the supply challenges. Over the last eight years, housing demand has increased by 5.9 million, but the net new number of housing units has only increased by 3.5 million.”

Svenja Gudell, Zillow’s Chief Economist

“Everyone has been talking about tight inventory but I think we are OK calling it a straight up inventory crisis at this point. We just don’t have enough homes.”

Sean Becketti, Freddie Mac’s Chief Economist

“House prices today are higher than they were at the peak in the summer of 2006, near-record-low mortgage rates have boosted housing demand, and sales volume is robust. The spoiler is the lean inventory of houses for sale.”

Lawrence Yun, National Association of Realtors’ Chief Economist

“Listings in the affordable price range continue to be scooped up rapidly, but the severe housing shortages inflicting many markets are keeping a large segment of would-be buyers on the sidelines.”

Bottom Line

If you are considering selling your house soon, now may be the time to get it on the market. The lack of competition could lead to a faster sale at a higher price.

Contact your local expert’s at The Melissa Thompson Team at 901-729-9526 or Melissa@YourKeyTomemphis.com to find out how much your home is worth

 

By: KCM Crew

Hey, Millennial Homeowners!! It May Be Time to Sell

by Melissa Thompson

Contrary to what many believe, Millennials are not the ‘renter’ generation. Millennials purchased a larger percentage (34%) of homes in the U.S. than any other age group in 2017 and the most recent Census Bureau report shows that the homeownership rate among Millennials is finally on the rise.

Many Millennials took advantage of post housing crash prices and the First-Time Homebuyers’ Tax Creditand jumped into homeownership in 2010. If you are one of these buyers, now may be the time to sell for many reasons. Here are a few:

1. Equity Build-Up

Home prices have been on the rise since the beginning of 2012 and your house may have appreciated by more than you think. ATTOM Data Solutions, in their Q2 2017 U.S. Home Sales Report revealed that:

“…homeowners who sold in the second quarter realized an average price gain of $51,000 since purchase — the highest average price gain for home sellers since Q2 2007, when it was $57,000.

The average home seller price gain of $51,000 in Q2 2017 represented an average return of 26 percent on the previous purchase price of the home, the highest average home seller return since Q3 2007, when it was 27 percent.”

2. Projected Home Price Increases

If you just got married or just found out you are about to become a parent, you may have plans to move up a bigger home or perhaps move to a different area. Waiting to buy a more expensive home in this market probably doesn’t make sense. The experts contacted for the Home Price Expectation Survey are projecting home prices to increase by nearly 5% over the next year. Yes, your house’s price will increase but not as much as a home currently valued higher than yours.

3. Projected Interest Rate Increases

The Mortgage Bankers’ AssociationFreddie Mac, Fannie Mae and the National Association of Realtors are each projecting mortgage rates to increase over the next year.

Higher PRICES + Higher INTEREST RATES = LARGER MORTGAGE PAYMENTS.

Bottom Line

If you are lucky enough to be one of those Millennials who purchased a house in 2010 (or even later), now might be the perfect time to move up to the home of your dreams! 

Contact your local expert’s at The Melissa Thompson Team 901-729-9526 to find out how much your current home is worth! 

By: KCM Crew

Displaying blog entries 1-10 of 14