By JUNE FLETCHER
The cherry blossoms are in full bloom in my hometown of Washington, D.C., marking the beginning of the spring home selling season.
If you, like me, are preparing to put your home on the market, that means that you not only have to stage your home's interior to impress potential buyers, but you have to spruce up your yard, too.
Although many sellers in my market hope that a drift of daffodils will clinch a deal, in truth, plants can hurt a home's curb appeal as much as they can help it. For instance, a drift of wild, weedy onions hidden in the grass can make a newly mowed lawn smell like a gas station restroom; trees planted too close to a house mask its best features and conjure alarming visions of weekends on a rickety ladder, cleaning gutters. That's not the impression you want to make on buyers who fantasize about lounging on the patio, not messing with pole pruners. So here are some tips for staging your yard for sale:
Baby the lawn. Find a high-quality weed killer with lots of micronutrients as well as nitrogen, phosphorus and potassium with pre-emergent herbicides (organic ones use corn gluten) to kill growth before it starts. Send your soil to your county or state's extension service, an agricultural resource center that you can find through the USDA's Web site, to have its pH levels tested; spread lime on your lawn if the pH level is below 6.0, or an acidifying agent like gardener's sulfur if it is above 7.0. And set your mower high (about three inches) to reduce the grasses' stress and cut down on the need for water.
Trim the overgrowth. Prune any branches that touch the house, cover a window or block a path. To reduce mold growth, keep plant material at least a foot away from siding.
Splurge on mulch. The new mulches that retain color throughout the season cost about a dollar a bag more than traditional mulch, but good first impressions are worth it. Although I normally use chipped mulches because they last longer, I plan to use a finely shredded texture this spring for its superior visual appeal.
Edge your flowerbeds. There's no easier way to make your yard look neat and groomed. Don't bother with the plastic edging; simply tie a string between two sticks and follow the line with a sharp, flat-ended spade pushed about four-to-six inches into the soil.
Powerwash everything. Cobwebs, mold and dirt accumulate on decks, patios, fences, trellises, eaves, windows and siding over the winter, but can be blasted away in an afternoon with a power washer. Just be sure not to get the water under the siding courses or in soffit vents, where the moisture can cause damage.
Plant annuals. Perennials are wonderful if you're building a long-term garden, but they are expensive and tend to have short blooming seasons. For color and impact, place low-care annuals like impatiens, petunias and geraniums in beds. Potted flowers and hanging baskets can brighten dull spots in your yard, draw attention to features you want to emphasize or flank an entrance—and you can take them with you when you move.
Plant a garden. If you have a sunny corner, a small raised bed with decorative veggies such as rainbow-stemmed Swiss chard and bush beans, or fragrant herbs like sage and rosemary, can suggest your yard is useful as well as pretty. (And hey, the Obamas did it.) But stay away from plants, like corn, that suggest a barnyard, or are prickly and prone to spilling out of bounds, like summer squash and pumpkins. If you must have tomatoes, choose pretty, bush-style cherry tomatoes rather than the regular vining varieties which need to be caged and are prone to unattractive wilts and fungal attacks.
String a hammock. Nothing suggests that the living is easy (and your yard is low-maintenance) as much as a hammock. If you don't have two trees close enough to string one between them, spring for a hammock stand.
Create conversation areas. To draw attention to a birdhouse, sculpture or other attractive feature in your yard, arrange two colorful side chairs and an end table facing it. When you have an open house, place a book and a small glass of water with yellow food coloring on it to suggest lemonade (don't use the real thing, or you'll attract bees).
Write to June Fletcher at fletcher.june@gmail.com
Copyright 2009 Dow Jones & Company, Inc. All Rights Reserved
Showing posts with label homes for sale. Show all posts
Showing posts with label homes for sale. Show all posts
Friday, May 22, 2009
Friday, April 10, 2009
4 Questions You Need to Answer Today
1. Why are the prices of homes dropping substantially in today’s market?
Prices are dropping because of the anomaly that occurred during the market boom. Professor Karl Case of Wellesley College and contributing author of the Case-Schiller Home Prices Indices, a quarterly nominal housing price report, looked closely at the appreciation of median home value over five-year increments dating back to 1980 (see chart: "Appreciation Went Into Overdrive"). His research shows that home values appreciated 26.5 percent on average for the 20-year period from 1980 through 2000.
In the six years that followed, average appreciation was 89 percent. Prices are now adjusting to the inconsistent and unsustainable growth that occurred during the first six years of this decade. In other words, the market is not on the decline. Rather, it is moving toward stability, which will mean healthier markets in the future.
2. How do I determine the direction of prices in my market?
Although there are no steadfast rules to determine future pricing, months’ supply of inventory (total inventory divided by the number of houses sold per month) is a great guideline. A normalized or balanced market has five to six months of inventory. If 100 houses sell a month, there should be 500 to 600 houses in active inventory.
Based on this principle, if you have one to two months of inventory, double-digit appreciation is likely to occur. Lack of supply will cause potential buyers to clamor over the few homes that are for sale, which in turn drives prices higher. On the other end of the spectrum—where many markets are right now—there is a seven- to eight-month inventory. With this abundance of supply, there simply aren’t enough buyers to support the number of homes for sale.
Current economic conditions will also have an effect on the direction of pricing, as pricing is directly connected to average income. Traditionally, the national average sales price of a home is two-and-a-half times the average household income. Through the boom years of 2004, 2005, and even into 2006, that ratio was distorted, reaching up to four times the average income. We’re now getting much closer to the 2.5 ratio. However, with unemployment rising, prices may have to drop further to stay in line with the average American family income (see chart: "Lots of Listings = Depressed Prices").
3. Why should I buy now?
Any investment consideration, whether it be real estate, gold, or fine art, follows a predictable cycle with nine stages (see chart: "The Stages of a Market Cycle"). Let’s start with optimism, the period in which many people are excited about buying a home. When the market is strong, people’s purchases quickly increase in value, which leads to euphoria, which can lead to rash decision making.
From euphoria starts a downward cycle. As prices start to fall, buyers go into denial, with statements such as "I’ll be in the house a few years, so this won’t be a challenge." After denial comes fear, as prices continue to fall, followed by panic, despondency, and depression. After depression comes hope and then optimism (back to stage one).
The point of maximum risk for any investment is during the euphoria stage. The point of maximum opportunity is at the lowest point, between despondency and depression. That’s exactly where we are in many real estate markets today. Clients who are motivated and qualified to buy will be able to look at the market cycle chart and understand why now is the best time to invest in real estate.
4. Is homeownership really a good way to build wealth?
According to NAR, home values appreciate 4.5 percent annually on average. That’s a great return; however, very few buyers pay in cash. Most try to put as little cash down as possible. The amount of cash buyers put into their home determines their return on equity, which is the total return on the cash they initially invested. So the return on equity can be astronomical. It’s easy to see that real estate isn’t just a good investment; it’s a great investment.
Source: Steve Harney specializes in negotiation and leadership training. He has been in the industry for more than 20 years, first in sales and then as broker-owner of a 500-associate real estate company. Visit him at www.KeepingCurrentMatters.com.
Prices are dropping because of the anomaly that occurred during the market boom. Professor Karl Case of Wellesley College and contributing author of the Case-Schiller Home Prices Indices, a quarterly nominal housing price report, looked closely at the appreciation of median home value over five-year increments dating back to 1980 (see chart: "Appreciation Went Into Overdrive"). His research shows that home values appreciated 26.5 percent on average for the 20-year period from 1980 through 2000.
In the six years that followed, average appreciation was 89 percent. Prices are now adjusting to the inconsistent and unsustainable growth that occurred during the first six years of this decade. In other words, the market is not on the decline. Rather, it is moving toward stability, which will mean healthier markets in the future.
2. How do I determine the direction of prices in my market?
Although there are no steadfast rules to determine future pricing, months’ supply of inventory (total inventory divided by the number of houses sold per month) is a great guideline. A normalized or balanced market has five to six months of inventory. If 100 houses sell a month, there should be 500 to 600 houses in active inventory.
Based on this principle, if you have one to two months of inventory, double-digit appreciation is likely to occur. Lack of supply will cause potential buyers to clamor over the few homes that are for sale, which in turn drives prices higher. On the other end of the spectrum—where many markets are right now—there is a seven- to eight-month inventory. With this abundance of supply, there simply aren’t enough buyers to support the number of homes for sale.
Current economic conditions will also have an effect on the direction of pricing, as pricing is directly connected to average income. Traditionally, the national average sales price of a home is two-and-a-half times the average household income. Through the boom years of 2004, 2005, and even into 2006, that ratio was distorted, reaching up to four times the average income. We’re now getting much closer to the 2.5 ratio. However, with unemployment rising, prices may have to drop further to stay in line with the average American family income (see chart: "Lots of Listings = Depressed Prices").
3. Why should I buy now?
Any investment consideration, whether it be real estate, gold, or fine art, follows a predictable cycle with nine stages (see chart: "The Stages of a Market Cycle"). Let’s start with optimism, the period in which many people are excited about buying a home. When the market is strong, people’s purchases quickly increase in value, which leads to euphoria, which can lead to rash decision making.
From euphoria starts a downward cycle. As prices start to fall, buyers go into denial, with statements such as "I’ll be in the house a few years, so this won’t be a challenge." After denial comes fear, as prices continue to fall, followed by panic, despondency, and depression. After depression comes hope and then optimism (back to stage one).
The point of maximum risk for any investment is during the euphoria stage. The point of maximum opportunity is at the lowest point, between despondency and depression. That’s exactly where we are in many real estate markets today. Clients who are motivated and qualified to buy will be able to look at the market cycle chart and understand why now is the best time to invest in real estate.
4. Is homeownership really a good way to build wealth?
According to NAR, home values appreciate 4.5 percent annually on average. That’s a great return; however, very few buyers pay in cash. Most try to put as little cash down as possible. The amount of cash buyers put into their home determines their return on equity, which is the total return on the cash they initially invested. So the return on equity can be astronomical. It’s easy to see that real estate isn’t just a good investment; it’s a great investment.
Source: Steve Harney specializes in negotiation and leadership training. He has been in the industry for more than 20 years, first in sales and then as broker-owner of a 500-associate real estate company. Visit him at www.KeepingCurrentMatters.com.
Friday, February 27, 2009
Ambassadors of Hope
Romans 5:3 "Rejoice in your sufferings because we know that suffering produces perseverance; perseverance, character; and character, hope."
WE AT SCHNEIDER Real Estate had our annual Awards Banquet on Wednesday. Our theme for 2009 is "Time to Shine in 2009" as an introduction to the goal signing (we all sign a big poster with the company goals and I hang it in my office) I quoted the following scripture as an introduction to the following:
2008 was a challenge and you proved you were up for it. It may have been to prepare you for what lies ahead. You've been in training, and you are better equipped than ever to take on 2009. I know for many of us our goals were not realized last year and there is that little voice of discouragement that lies to us and would like us to be fearful about the future. We must choose to respond with a resounding NO!
Winston Churchill said, "Success is going from failure to failure without losing enthusiasm". Hope is stolen when we misunderstand failure. Failure is natural, normal, and is going to happen. The way to success is to keep failure caged. Failure is caged when we realize it is not permanent. Henry Ford said "Failure is the opportunity to begin again more intelligently".
We need each of you to shine in 2009; Let's continue to encourage each other by lighting up the office with optimism and taking that spirit into our SOI. Hope is an act of the will and moves people to action- lets be ambassadors of Hope. Together as a team, we can make a difference! If we do that, WE WILL have a BRIGHTER 2009.
WE AT SCHNEIDER Real Estate had our annual Awards Banquet on Wednesday. Our theme for 2009 is "Time to Shine in 2009" as an introduction to the goal signing (we all sign a big poster with the company goals and I hang it in my office) I quoted the following scripture as an introduction to the following:
2008 was a challenge and you proved you were up for it. It may have been to prepare you for what lies ahead. You've been in training, and you are better equipped than ever to take on 2009. I know for many of us our goals were not realized last year and there is that little voice of discouragement that lies to us and would like us to be fearful about the future. We must choose to respond with a resounding NO!
Winston Churchill said, "Success is going from failure to failure without losing enthusiasm". Hope is stolen when we misunderstand failure. Failure is natural, normal, and is going to happen. The way to success is to keep failure caged. Failure is caged when we realize it is not permanent. Henry Ford said "Failure is the opportunity to begin again more intelligently".
We need each of you to shine in 2009; Let's continue to encourage each other by lighting up the office with optimism and taking that spirit into our SOI. Hope is an act of the will and moves people to action- lets be ambassadors of Hope. Together as a team, we can make a difference! If we do that, WE WILL have a BRIGHTER 2009.
Wednesday, February 18, 2009
Affordable housing price index supports renewed interest in housing market
Affordable housing stock is one of most important components that will stimulate the housing crisis, and in turn, provide a solid foundation for economic recovery as well. The good news is recent indicators reveal that, with the decline in prices, housing is more affordable and that buyers are beginning to sign more sales contracts.
According to the National Association of Realtors® (NAR), two reports show homebuyers just may be taking baby steps back to the market. First, buying a home is becoming more affordable because of reduced prices and mortgage rates predominant in a distressed economy. The NAR’s Housing Affordability Index for December 2008 revealed the affordability index increased 10.9 percent to 158.8, the highest level since 1971. The higher the index number, the more affordable housing is for prospective, qualified buyers.
The second indication is the Pending Home Sales Index, which topped out at a healthy 87.7 in December 2008, an increase of 6.3 percent from November 2008. This index is the NAR standard to judge pending sales of existing homes, and showed the strongest gains here in the Midwest and South.
Lawrence Yun, NAR chief economist, says these gains are supported by buyers who are responding to lower home prices and mortgage interest rates. He adds that the “biggest gains were in areas with the biggest improvements in affordability.”
What do these tracking methods mean in real terms for consumers? Increasingly affordable housing brings more traffic into homes for sale, and that results in more sales. That’s good news for buyers, sellers and the economy. Simple as it sounds, reaching that formula during the past two years has been a challenge for the housing industry and families who want to buy property.
However, the housing market is still uncertain, and will continue to be so in the near future. While federal stimulus packages will offer some relief, just as important is the emotional aspect of home buying, when Americans will again feel secure about their purchasing decisions.
According to the National Association of Realtors® (NAR), two reports show homebuyers just may be taking baby steps back to the market. First, buying a home is becoming more affordable because of reduced prices and mortgage rates predominant in a distressed economy. The NAR’s Housing Affordability Index for December 2008 revealed the affordability index increased 10.9 percent to 158.8, the highest level since 1971. The higher the index number, the more affordable housing is for prospective, qualified buyers.
The second indication is the Pending Home Sales Index, which topped out at a healthy 87.7 in December 2008, an increase of 6.3 percent from November 2008. This index is the NAR standard to judge pending sales of existing homes, and showed the strongest gains here in the Midwest and South.
Lawrence Yun, NAR chief economist, says these gains are supported by buyers who are responding to lower home prices and mortgage interest rates. He adds that the “biggest gains were in areas with the biggest improvements in affordability.”
What do these tracking methods mean in real terms for consumers? Increasingly affordable housing brings more traffic into homes for sale, and that results in more sales. That’s good news for buyers, sellers and the economy. Simple as it sounds, reaching that formula during the past two years has been a challenge for the housing industry and families who want to buy property.
However, the housing market is still uncertain, and will continue to be so in the near future. While federal stimulus packages will offer some relief, just as important is the emotional aspect of home buying, when Americans will again feel secure about their purchasing decisions.
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