Monday, March 30, 2015
Saturday, March 28, 2015
Friday, March 27, 2015
What's That Smell?
"Week after week, buyers turned up their noses during showings of the tidy single-story home in the hot San Jose, Calif., market. Their resistance was easy to pinpoint, but harder to address: the aroma from years of heavy cooking with curry was turning off buyers, and the sellers didn’t care."
Their agent tried delicately to explain to the sellers that buyers found the scent—which permeated the walls, floors, and furnishings—overwhelming. Still, the sellers refused to undertake a deep cleaning or change their cooking habits.
Their resistance cost the sellers time and money at the bargaining table. In an area where time on market was typically just 10 days and bidding wars were the norm, the $229,000 home sat on the market for 35 days. The sellers dropped their listing price several times until it eventually sold for $175,000 in a short sale.
It’s not just food odors that turn buyers off. A 2013 study of Canadian home owners sponsored by Pfizer Canada found that smoking in a home could reduce the resale value by up to 29 percent. Daniels views it as a fiduciary duty to talk with sellers about the effect odors can have on a home sale. In many cases, sellers simply don’t realize the impact, and most will be open to your suggestions about how to address the stench. Stager Tori Toth, owner of Stylish Stagers Inc. in New York, offers ideas about how to discuss this sensitive subject with clients as part of the overall strategy for prepping a home for sale. “Scent can be the strongest of our senses,” Toth says. “It can make you form an instant impression.”
Here are ideas for countering offensive smells in your listings.
Chocolate chip cookies, potpourri, gourmet foods, and other baked goods actually may be the worst scents for real estate open houses. Researchers studied 402 people in a home décor store in Switzerland to find the most pleasing scents for customers, and researchers say their findings, published in the Journal of Retailing in 2013, also can be applied to real estate.
The most pleasing smells that study found were lemon, green tea, cedar, pine, basil, and vanilla.
Researchers say complex scents, like baked goods, can be a distraction to buyers. They’ll subconsciously be trying to figure out what the scent is rather than staying focused on the house. In contrast, researchers found that simple scents are easier to identify and so less distracting, which promotes buying.
Tell Sellers to Live Meticulously
Let clients know of steps they can take to keep smells at bay. Toth recommends:
Their agent tried delicately to explain to the sellers that buyers found the scent—which permeated the walls, floors, and furnishings—overwhelming. Still, the sellers refused to undertake a deep cleaning or change their cooking habits.
Their resistance cost the sellers time and money at the bargaining table. In an area where time on market was typically just 10 days and bidding wars were the norm, the $229,000 home sat on the market for 35 days. The sellers dropped their listing price several times until it eventually sold for $175,000 in a short sale.
It’s not just food odors that turn buyers off. A 2013 study of Canadian home owners sponsored by Pfizer Canada found that smoking in a home could reduce the resale value by up to 29 percent. Daniels views it as a fiduciary duty to talk with sellers about the effect odors can have on a home sale. In many cases, sellers simply don’t realize the impact, and most will be open to your suggestions about how to address the stench. Stager Tori Toth, owner of Stylish Stagers Inc. in New York, offers ideas about how to discuss this sensitive subject with clients as part of the overall strategy for prepping a home for sale. “Scent can be the strongest of our senses,” Toth says. “It can make you form an instant impression.”
Here are ideas for countering offensive smells in your listings.
Don’t Mask. Treat
Tell Sellers to Live MeticulouslyOdor is caused by bacteria that attaches to ceilings, walls, carpets, and draperies. Common household offenders include pets, food, dirty laundry, mold, smoking residue, and air vents. Identify the source of the smell and eliminate it. The remedy is likely a professional deep cleaning or do-it-yourself nontoxic fogger like DynoFresh that neutralizes odors. “If you temporarily treat the air with sprays or plug-ins, the odor will resurface by your next showing,” Toth says.
Let clients know of steps they can take to keep smells at bay. Toth recommends:
- Take out the trash after every meal.
- Clean refrigerators often.
- Change air filters regularly.
- Do laundry regularly to avoid dirty clothing pileups.
- Use the fan over the stove when cooking.
- Avoid cooking strong-smelling foods like fish, broccoli, and garlic before showings.
- Bathe pets regularly and clean bedding, toys, and litter boxes often.
Add New Smells Sparingly
While air fresheners in large doses may send a red flag that the seller is trying to mask something, they may be useful in moderation. After eliminating the source of smells, Toth will sometimes advise clients to introduce subtle, simple scents. This may include laying fabric softener sheets between clothes stacked on closet shelves, placing lemon peels in the kitchen garbage disposal, or adding plug-ins near bathroom doors.Chocolate chip cookies, potpourri, gourmet foods, and other baked goods actually may be the worst scents for real estate open houses. Researchers studied 402 people in a home décor store in Switzerland to find the most pleasing scents for customers, and researchers say their findings, published in the Journal of Retailing in 2013, also can be applied to real estate.
The most pleasing smells that study found were lemon, green tea, cedar, pine, basil, and vanilla.
Researchers say complex scents, like baked goods, can be a distraction to buyers. They’ll subconsciously be trying to figure out what the scent is rather than staying focused on the house. In contrast, researchers found that simple scents are easier to identify and so less distracting, which promotes buying.
Tell Sellers to Live Meticulously
Let clients know of steps they can take to keep smells at bay. Toth recommends:
- Take out the trash after every meal.
- Clean refrigerators often.
- Change air filters regularly.
- Do laundry regularly to avoid dirty clothing pileups.
- Use the fan over the stove when cooking.
- Avoid cooking strong-smelling foods like fish, broccoli, and garlic before showings.
- Bathe pets regularly and clean bedding, toys, and litter boxes often.
Thursday, March 26, 2015
Tuesday, March 24, 2015
Wednesday, March 18, 2015
February Home Sales and Prices Move Higher
Unlike last February, this February experienced increased home sales, but with only a moderate rise in prices. Home sales in February rose 7.1% from January and 2.2% from February 2014. Sales through the fall and winter months held ground, as four of the last six months saw higher sales than the same month in the previous year. The Median Sales Price in February rose 5.5% compared with a year-over-year increase of 11.6% in February 2014. The inventory of homes for sale was 11.9% lower than one year ago. At the current rate of sales, the corresponding Months Supply of inventory fell to 4.7 on a scale where 6.0 indicates a market balanced equally between buyers and sellers.
Dave Liniger, RE/MAX, LLC CEO, Chairman and Co-Founder
Median Sales Price
In the 53 metro areas surveyed for the February RE/MAX National Housing Report, the average number of home sales increased 2.2% over sales in February 2014 and were 7.1% higher than January sales. In the seven-year history of the RE/MAX Housing Report, monthly sales growth averaged only 4.8%. Despite a tight inventory and rising prices, many homebuyers decided to move forward with a purchase. This February, 34 of the 53 metro areas surveyed reported higher sales on a year-over-year basis.
Days on Market
The average Days on Market for all homes sold in February was 80, unchanged from January and just one day higher than the average in February 2014. Other than January and February, Days on Market has been below 80 since March 2013, when the average was 85. Higher Days on Market averages could be the result of higher quality inventory and corresponding higher sales prices. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.
Month's Supply of Inventory
The inventory of homes for sale in February was lower than both the previous month and the same month last year. Inventory was down 11.9% from February 2014 and was 3.2% lower than January’s inventory. For the last two months, sequential inventory losses have slowed down. Based on February’s rate of home sales, the average Months Supply of Inventory was 4.7. Months supply was 5.2 in January and in February 2014. A supply of 6.0 is considered balanced.
Tuesday, March 17, 2015
Why Renters May Be in Trouble
The gap between rental costs and household income is widening to unsustainable levels across the country. As more renters face steeper costs, it may put them even further away from home ownership, according to a new study released by the National Association of REALTORS®. NAR evaluated income growth, housing costs, and changes in share of renter and owner-occupied households over the past five years in metropolitan statistical areas across the U.S.
Over the last five years, a typical rent rose 15 percent, while the income of renters grew by only 11 percent, according to their research.
"The gap has worsened in many areas as rents continue to climb and the accelerated pace of hiring has yet to give workers a meaningful bump in pay," says Lawrence Yun, NAR's chief economist.
New York, Seattle, and San Jose, Calif., are among the cities where combined rent growth far exceeds wages, according to the survey.
"Current renters seeking relief and looking to buy are facing the same dilemma: Home prices are rising much faster than their incomes," says Yun. "With rents taking up a larger chunk of household incomes, it's difficult for first-time buyers – especially in high-cost areas – to save for an adequate down payment."
Meanwhile, those who were able to buy a home in recent years have been insulated from the rising housing costs since they were able to lock-in a low 30-year fixed-rate mortgage with a set monthly payment, according to NAR's study. As such, home owners were able to grow their net worth as home values increased and their mortgage balances went down.
"The result has been an unequal distribution of wealth as renters continue to feel the pinch of increasing housing costs every year," according to NAR’s study.
The markets that have seen rents rise by the highest amounts since 2009 are:
The key to relieve housing costs: Builders need to ramp up the supply of new-home construction, according to Yun. He estimates that housing starts need to rise to 1.5 million. Over the past seven years, housing starts have fallen far short from that historical average – averaging about 766,000 per year.
"With a stronger economy and labor market, it's critical to increase housing starts for entry-level buyers or else many will face affordability issues if their incomes aren’t compensating for the gains in home prices," Yun says.
Source: National Association of REALTORS®
New York, Seattle, and San Jose, Calif., are among the cities where combined rent growth far exceeds wages, according to the survey.
"Current renters seeking relief and looking to buy are facing the same dilemma: Home prices are rising much faster than their incomes," says Yun. "With rents taking up a larger chunk of household incomes, it's difficult for first-time buyers – especially in high-cost areas – to save for an adequate down payment."
Meanwhile, those who were able to buy a home in recent years have been insulated from the rising housing costs since they were able to lock-in a low 30-year fixed-rate mortgage with a set monthly payment, according to NAR's study. As such, home owners were able to grow their net worth as home values increased and their mortgage balances went down.
"The result has been an unequal distribution of wealth as renters continue to feel the pinch of increasing housing costs every year," according to NAR’s study.
The markets that have seen rents rise by the highest amounts since 2009 are:
- New York: 50.7%
- Seattle: 32.38%
- San Jose, Calif.: 25.6%
- Denver: 24.14%
- St. Louis: 22.26%
The key to relieve housing costs: Builders need to ramp up the supply of new-home construction, according to Yun. He estimates that housing starts need to rise to 1.5 million. Over the past seven years, housing starts have fallen far short from that historical average – averaging about 766,000 per year.
"With a stronger economy and labor market, it's critical to increase housing starts for entry-level buyers or else many will face affordability issues if their incomes aren’t compensating for the gains in home prices," Yun says.
Source: National Association of REALTORS®
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