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The Pitfalls of Overpricing Your Home
When a homeowner prepares to put their house up for sale, two things are usually top of mind: how long will it take to sell and how much can we get for it. During a seller’s market, when stories of bidding wars and cash offers abound, it can be tempting to put as high a price tag on your home as possible. But even when the market favors sellers, overpricing your home can jeopardize your efforts to sell quickly and get top dollar.
Missing Your Market
The vast majority of homebuyers start their search online, and the first criteria they often enter is the price range. If your home is above the high point of their range, buyers in your target market will never even see your listing—it simply won’t show up in their searches. In addition, it’s human nature to go after the top item in a collection. Buyers want the most house they can get within their budget. This means you want to be the best house compared to those in your price range, rather than among the bottom compared to those in a more expensive bracket.
Key takeaway: You want to shine against your competition, not pale by comparison
Playing the Numbers
Selling a home is a numbers game: the more potential buyers, the greater chance of an offer. Overpriced homes get fewer showings, both in person and online. Your agent will tell you that showings are critical to capturing the interest of buyers, but if the home is overpriced, they will have difficulty attracting attention to your home. This can slow the entire home selling process, leaving both you and your agent feeling frustrated.
Key takeaway: More showings = more offers.
Going Stale
It’s also human nature to be drawn to what’s new, the bright, shiny object, as the saying goes. New listings attract the most attention—that’s when buyer interest is highest. The longer your home is on the market, the less appealing it becomes. And at a certain point, you may be forced to lower the price. Many buyers and their agents will assume the reason the house has been on the market so long, and why you had to lower the price, is because there is something wrong with it. Once the price drops begin, they can continue, which creates the risk of selling your home for less than what it is worth.
In addition, the longer your home is on the market, the more expenses you incur. Mortgage payments, utilities costs, and seller’s fees will continue to pile up, making it harder to recover from these costs when your home does eventually sell.
Key takeaway: Be the bright, shiny object.
Losing at the Last Minute
Let’s say you do find a buyer at the overpriced cost. During closing, the lender will order an appraisal of your home. If the appraiser finds that the market value of the home is less than the selling price, they could deny financing. If that happens and you are forced to put the house back on the market, buyers’ agents will be able to see that it’s a relisting, could assume something is wrong with the house and share those concerns with their client.
Key takeaway: Be realistic about value.
Want an accurate idea of your home’s value in the current market? I can provide you with a Competitive Market Analysis (CMA). Unlike automated home value calculators, I take into account recent market trends, unique home features, competing properties, and your home’s overall marketability.
Adapted from an article that originally appeared on the Windermere blog August 5th, 2024.
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2026, Windermere Real Estate/Mercer Island.
Strategic Investments to Boost Value & Curb Appeal
When it’s time to sell your home, one of the biggest questions is how to make it as appealing as possible to today’s buyers. While market conditions, location, and timing all play a role, the updates you choose before listing can make a meaningful difference in both your selling price and how quickly your home goes under contract. The key is knowing where to invest your time and money. Not every project pays off, but some smart upgrades can give your home a competitive edge, help it stand out in online listings, and create the kind of first impression that gets buyers excited.
Here are some of the most impactful ways to invest in your home before putting it on the market.
Fresh Paint and a Neutral Palette
Few improvements have a more substantial return on investment than paint. A fresh coat instantly refreshes a space, making it feel clean, updated, and well-maintained. In fact, a recent report1 by the National Association of REALTORS® found that painting is the #1 project agents recommend sellers do before selling.
Neutral tones for interiors, such as light beige, soft grays, and crisp whites, appeal to the broadest audience and allow buyers to envision their own style in the home. Check out the Sherwin-Williams Colormix Forecast 2026 for some up and coming hues (and opt for the lightest shades). It’s crucial not to overlook trim, doors, and even ceilings, as these small details help create a polished, move-in-ready feel. And if your front door could use a pop of personality, consider a bold, welcoming color that complements the rest of the exterior.
Curb Appeal That Counts
Buyers often form an impression before they even step inside. Landscaping, exterior lighting, and simple maintenance go a long way toward making your home inviting. Think trimmed hedges, fresh mulch, pressure-washed walkways, and a tidy lawn. It’s also smart to ensure outdoor areas are safe, from repairing uneven paths to addressing any obvious hazards. Here is a printable checklist so you don’t miss anything.
Adding planters with seasonal flowers, updating house numbers, or swapping out an old mailbox can elevate your home’s appearance without requiring a significant investment. For buyers scrolling through listings, that curbside charm can be a deciding factor that gets them to schedule a showing.
According to the latest Cost vs. Value report for Seattle2, exterior curb appeal investments such as a basic new front door or garage doors can net you a profit when it’s time to sell:
Kitchen and Bathroom Touch-Ups
Kitchens and bathrooms continue to be high priorities for buyers, but you don’t need to take on a full remodel to make an impact. Small upgrades like replacing outdated cabinet hardware, installing new light fixtures, or swapping in modern faucets can transform the look of these spaces.
In the kitchen, consider updating your backsplash with a clean, timeless tile or refreshing worn countertops with a durable surface. In bathrooms, re-grouting tile, caulking any cracks, replacing mirrors, or updating vanities are simple ways to modernize without overspending.
The Cost vs. Value report2 also found that the kitchen can be a smart place to invest in a minor remodel of surfaces and newer mid-priced appliances and fixtures. In the Seattle area, a minor remodel is estimated to recoup 118% of its cost when you sell.
Flooring Matters
Floors are often one of the first things buyers notice when touring a home. If your carpets are worn or stained, professional cleaning or even replacement can make a big difference. Hardwood floors are especially appealing and refinishing them is often more cost-effective than replacing them.
For areas where replacement makes the most sense, consider durable and stylish options like engineered wood or luxury vinyl plank. Consistent flooring throughout the main living areas can also help a home feel more spacious and cohesive.
Energy-Efficient Features
Today’s buyers are increasingly focused on efficiency and sustainability. Investments like LED lighting, programmable thermostats, and updated appliances not only lower utility bills but also signal to buyers that the home is modern and thoughtfully maintained.
If your budget allows, new windows or improved insulation can add value while appealing to environmentally conscious buyers. Highlighting these upgrades in your listing helps showcase both comfort and cost savings.
Decluttering and Staging
Sometimes the most impactful upgrade isn’t about new finishes, it’s about presentation. Decluttering each room, minimizing personal items, and rearranging furniture to optimize space can dramatically change how buyers perceive your home. Here’s a printable checklist to help. And the best part? It’s completely free.
Professional staging takes this one step further, creating a warm and welcoming atmosphere that helps buyers envision living in the space—it can also help your home sell faster and for more money according to a 2025 report3. Even small touches, like fresh flowers, cozy throws, and well-placed artwork, can make your home feel more stylish, comfortable, and truly move-in ready.
Making Smart Choices
The goal of any pre-sale investment is to spend strategically, choosing projects that increase appeal without overextending your budget. You can also refer to this article on what NOT to do.
As a Windermere agent, I’m an expert at helping sellers decide which upgrades matter most. From recommending paint colors to connecting you with trusted contractors, I’m here to make sure you get the best return on your investment. Through our Windermere Ready program, we can even front the cost of improvements like painting, landscaping, cleaning, and staging so your home shines its brightest when it hits the market. With concierge-level service and no payments due until closing, it’s a simple way to maximize your home’s value and sell faster.
Connect with me today to learn more about how I can help you prepare your home for the market with confidence:
Adapted from an article that originally appeared on the Windermere blog October 1, 2025.
1Copyright ©2025 “2025 Remodeling Impact Report.” NATIONAL ASSOCIATION OF REALTORS®. All rights reserved. April 9, 2025, https://www.nar.realtor/sites/default/files/2025-04/2025-remodeling-impact-report_04-09-2025.pdf.
2©2025 Zonda Media, a Delaware corporation. Complete data from the 2025 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2026, Windermere Real Estate/Mercer Island.
How’s the Market? Year End Review of Seattle Area Real Estate in 2025
Home values held steady in 2025 with many communities seeing modest price gains. Seattle Metro’s median sale price and $ per sq. ft. both rose year-over-year, while the Eastside’s numbers remained similar to what we saw in 2024. Both areas saw double-digit spikes in the number of new listings and a slight slowdown in the number of sales.
Looking forward: this is a great year to invest! We’ve had a few back-to-back years of soft price gains, which feel like losses in our frequently HOT Seattle. This is as close to a “buyer’s advantage” market as we’ve seen in years. At the time of writing this, interest rates are available in the high 5’s. The cost of money is reasonable and the cost of property has not risen drastically in a few years. This is the perfect time to jump in for investors and first-time buyers. More specifically, anyone who can buy “unburdened” or without having to sell/carry two mortgages in order to buy. The condo and townhome markets continue to be a great opportunity for those looking to take the first step onto the property ladder. If none of this applies to you, remember: if you’re looking to buy and sell within the same market, you only get an advantage on one side.
Click or scroll down to find your area report:
Seattle | Eastside | Mercer Island | Condos | Waterfront
SEATTLE
It’s all good news in the city of Seattle! The median price rose by 5% to $985,000. Pricing remained competitive, with 64% of homes selling at or above their list price (despite the fact that new listings increased 12% from 2024 and the number of sales dipped slightly).
Sales activity moved quickly in many neighborhoods. Citywide, 55% of homes sold within the first 10 days on market. Several areas posted strong performance, including Ballard & Green Lake with 1,705 homes sold, and North Seattle with 1,040 sales. Median prices varied by neighborhood, ranging from $794,000 in South Seattle to $1,399,000 in Queen Anne & Magnolia, reflecting the diversity of Seattle’s housing market.
Remember, these statistics include new construction data. In an inventory-constricted market, new construction data can skew pricing stats significantly. Check with your agent for how this affects your neighborhood.
Click here for the full report and neighborhood-by-neighborhood statistics!
EASTSIDE
Across the Greater Eastside, 5,458 homes sold during the year, down 5% compared to 2024. New inventory increased, with 8,259 new listings coming to market—up 16%! Fifty-five percent of homes sold at or above their list price, and 53% sold within the first 10 days on market, highlighting consistent transaction pace and buyer confidence across the region. Despite this, the median sale price held flat at $1,599,000 compared to 2024, while homes sold for an average of $688 per square foot, also similar to last year.
Several communities recorded notable activity levels, including Woodinville with 1,235 homes sold and East of Lake Sammamish with 1,134 sales. East Bellevue saw a 13% increase in homes sold, while Redmond posted a 15% increase in sales volume. Median sale prices varied by community, ranging from $1,281,000 in Woodinville to $3,688,000 in West Bellevue, reflecting the diversity of the Eastside housing market.
Several communities recorded notable activity levels, including Woodinville with 1,235 homes sold and East of Lake Sammamish with 1,134 sales. East Bellevue saw a 13% increase in homes sold, while Redmond posted a 15% increase in sales volume. Median sale prices varied by community, ranging from $1,281,000 in Woodinville to $3,688,000 in West Bellevue, reflecting the diversity of the Eastside housing market.
Click here for the full report and neighborhood-by-neighborhood statistics!
MERCER ISLAND
The 2025 Mercer Island real estate data reflects a year of steady activity and modest price gains. Median home prices rose 3% year over year to $2,550,000. Homes sold for an average of $895 per square foot, and half of all homes sold at or above their list price. Sales moved efficiently, with 56% of homes selling within the first 10 days on market.
A total of 80 single-family homes sold on Mercer Island during the year. Activity varied by neighborhood, with sales recorded across Northend, Southend, Mid-Island, First Hill, Westside, and The Lakes. Median home prices ranged from $1,775,000 in Mercerdale to $5,831,000 on the Westside, highlighting the range of housing options across the island.
Click here for the full report and neighborhood-by-neighborhood statistics!
CONDOS – SEATTLE & EASTSIDE
The 2025 Condo Report shows steady, encouraging activity across both the Seattle and Eastside condo markets. Year over year, condo sale prices increased a combined 2% to a median of $630,000, with homes selling for an average of $633/sq.ft. Half of all condos sold at or above their list price, signaling stable buyer demand. Inventory also expanded, with 8,331 new condo listings—up 14% from 2024! This is great news, increased supply that didn’t cause a price ‘dump’, it shows our Buyers may be returning to confidence around condos.
In Seattle, 2,695 condos sold during the year, a 9% increase in sales volume. The median Seattle condo price rose 2% to $585,000, and 51% of homes sold at or above list price. On the Eastside, 2,050 condos sold, with median prices increasing 5% year over year to $730,000. Eastside condos averaged $643 per square foot, with 51% selling at or above list price and 36% selling within the first 10 days. The market showed a combined 52 average days on market, with a 99% list to sales price ratio. Though, when original list to sales price ratio is compared the average sits at 97%. This means that patience and active calibration are both required when marketing your condo.
Mercer Island’s condo market also trucked along with 27 sales and a slight 1% year-over-year boost in median prices. Condos sold for an average of $591 per square foot, up 13% over 2024. Thirty-seven percent of condos sold at or above list price, and within the first 10 days. Inventory expanded as well, with 355 new condo listings, up 19% from 2024.
Check out area-by-area details in the full condo report.
WATERFRONT
Seattle saw a boost in the number of waterfront sales in 2025, with 36 compared to 31 in 2024. Lake Sammamish sales were similar to last year (31 vs. 30 in 2024), while Mercer Island and the Eastside both saw slight dips their sales numbers.
Mercer Island had the highest waterfront sale of the year at $25 million for a nearly 10,000 sq. ft. European Modern home on 102 feet of prime west-facing North End waterfront. The most modest sale was in Bellevue at $1.75 million for an original 1960s beach house on 50 feet of lakefront.
This brief overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, illustrates the trends occurring in our region over time. This data is interesting and insightful but cannot replace an in-depth waterfront analysis with your trusted professional.
View the full waterfront report
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2026, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and Trendgraphix, and deemed accurate but not guaranteed.
Remodeling Impact Report: Projects That Bring Joy & ROI
Is your home ready for a refresh? Whether it’s for their own enjoyment or to prep their houses for sale, Americans are investing more and more money into remodeling each year. According to a recent report by the National Association of REALTORS® (NAR), the demand for top-condition homes is going up among buyers as well. So which projects will get you the most bang for your buck? Or, perhaps more importantly, which projects will bring you the most joy? Here’s what the Remodeling Impact Report revealed…
Projects That Boost Your Happiness
It’s easy to think about improvements in terms of monetary value…but what about the value of enjoyment and enhanced livability? As part of their report, NAR calculated a “Joy Score” for common remodeling projects based on the happiness homeowners reported with their renovations. Three projects stood out with perfect joy scores: adding a primary bedroom suite, upgrading the kitchen, and replacing roofing. Here are the projects with the highest joy scores:
Projects That Help Pay for Themselves
As a bonus to bringing you joy, many projects will also pay you back for at least a portion of their cost when it’s time to sell your home. Projects that increase your home’s curb appeal tend to bring you the highest return on investment (ROI), although closet renovation snuck in as a surprise gem:
What If You’re Remodeling to Sell?
In virtually any real estate market, a home that feels fresh, clean, modern, and move-in ready will always sell faster and for more money than its dated counterpart. This isn’t always tangible in the ROI studies but, as agents, we see it every day. The good news is that the updates you make to sell are often more cosmetic and less expensive than the upgrades you might make if you were planning to stay in the home forever (pssst…check out this article on remodeling projects you should avoid if you’re selling your home).
The two charts below show both the projects REALTORS® most often recommend sellers do before selling, and five projects we’ve seen increased demand for from buyers:
It’s critical to understand that every home, neighborhood, and situation is different. Your home’s unique characteristics and your personal goals as a homeowner will have more impact on which remodeling projects are best for you than any of these general trends. If you’re remodeling to sell, reach out for advice; I’m happy to help you choose the right projects—and avoid the wrong ones—to help you accomplish your objectives.
Data & charts copyright ©2025 “2025 Remodeling Impact Report.” NATIONAL ASSOCIATION OF REALTORS®. All rights reserved. Reprinted with permission. April 9, 2025, https://www.nar.realtor/sites/default/files/2025-04/2025-remodeling-impact-report_04-09-2025.pdf.
© Copyright 2025, Windermere Real Estate/Mercer Island.
How to Price Your Home for Sale
The right listing price is absolutely critical to a successful home sale. Price too high and you will miss your shot to generate interest with a sense of urgency for buyers—often, overpriced listings languish on the market and end up selling for less than they would have if they’d been priced more competitively from the get-go. Price too low, however, and you risk leaving money on the table if your home doesn’t attract multiple offers. So how do you price it right?
As agents, we track market conditions daily to understand where the “Goldilocks zone” lies for different neighborhoods and price points based on buyer demand and competing properties. Your best bet is to work closely with your agent on an effective pricing strategy before listing your home…BUT in the meantime, here’s some info to help you better understand what goes into this process.
- Understanding the Value of Your Home: Market Value vs. Assessed Value and More
- The Difference Between a Comparative Market Analysis and an Appraisal
What’s your home worth?
While nothing can replace an in-person evaluation by a real estate agent or appraiser, automated valuation models (AVMs) can be a helpful first step in determining what your home is worth. AVMs assess your home by comparing its information with the listings in your area. An algorithm can’t possibly know about the unique characteristics of your home or its neighborhood…but it can give you a rough ballpark idea of your home’s value and how it’s changing over time. Curious? Try my Home Worth Estimator here:
What factors influence home prices?
Understanding what factors influence home prices will give you a deeper knowledge of the market, give clarity to the selling process, and help you work with your agent to accurately price your home.
Comparable Home Sales
Comparable home sales—or “comps”—have a major impact on the price of your home. Comps refer to the comparable homes in your area, both pending and sold, within the last six months. I can provide you with a Comparative Market Analysis (CMA) to better determine the price of your home. CMAs factor in aspects such as square footage, age, and lot size compared to other homes in your area, to determine how your home should be priced among the competition. Reach out if you’d like to request one.
Your Home’s Location
Location, location, location. It plays one of the most significant roles in your home’s asking price. Market conditions in your area, whether you reside in a metropolitan, suburban, or rural location, and the home’s proximity to amenities, schools, and entertainment all contribute to the price.
Your Home’s Condition
If you have recently invested in upgrades or other remodeling projects for your home, they could increase your asking price. However, the price increase potential depends on the kind of renovation, its ROI, and how valuable it is to buyers in your area. If the home needs repair, it will likely generate less interest from buyers than better maintained homes at your price point. Any outstanding repairs or projects looming overhead will make the home less attractive to buyers and could lead to a low appraisal.
Seasonality
Any factors that impact market supply and demand are worth taking into consideration when preparing to price your home, and seasonality is one that cannot be overlooked. Typically, market activity slows in the winter and picks up during the spring and summer months. For more in-depth info, check out these articles on The Best Time to Buy or Sell a Home and Timing the Market.
Market Conditions
Finding a competitive listing price will be depend on local conditions, such as whether it’s a buyer’s or seller’s market. Some sellers think that pricing their home over market value means they’ll sell for more money, but the opposite can often be true. Overpricing your home presents various dangers such as sitting on the market too long, which can result in selling for well below what it’s worth.
Periodic Price Adjustments
Pricing a home isn’t a set-it-and-forget-it proposal. As with any strategy, you need to be prepared to adapt to fast-changing market conditions, new competition, a lack of offers, and other outside factors.
These are the basic tenets for understanding what goes into the price of a home. When you’re ready, I can interpret and expand on this information, perform a CMA for your home, and guide you throughout your selling journey.
Adapted from an article originally appeared on the Windermere blog October 5, 2022.
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2025, Windermere Real Estate/Mercer Island.
A Consumer’s Guide to Homeowners Insurance
If you’re a homeowner or looking to buy a home, insuring your property is critical to protecting your investment—and if you’re getting a mortgage, it’s a must. It can be daunting trying to navigate the many options available to you. What does your policy cover…and what isn’t covered? What does the insurance company provide if your property is damaged or destroyed? Recently, the National Association of REALTORS® released this helpful guide on understanding the ins and outs of homeowners insurance. Here is a quick rundown of what you need to know…
How does property insurance work?
For certain unexpected events that cause a loss to your home or property, homeowner’s insurance can cover the cost to repair/rebuild the property and other structures like fences or garages. Most policies also cover personal belongings within the home, legal/medical fees for accidents occurring on the property, and temporary housing if a covered event (like a house fire) makes your home uninhabitable.
What losses are covered?
Your insurance policy will list the specific “perils” that are covered. The most common type of policy covers both the structure and personal assets for losses from house fires, storms, freezing, theft, vandalism, and sudden plumbing bursts—this is known as a HO-3 or “Special Form” policy. Most policies don’t cover earthquakes or natural floods (although you can get additional policies for those perils).
Is insurance required?
There are no laws requiring you to maintain homeowners insurance. However, most lenders require it for the duration of your mortgage. Required or not, it’s generally a good idea to protect your assets (especially if you have a lot of equity in your home).
What is the cost, and how is it paid?
As with many costs, insurance premiums are on the rise throughout the country (here’s how much, where, and why). Your individual policy’s cost will be based on your home’s age, size, condition, location, and other factors like whether you have a security system or have added on additional coverage. You may have the option to pay the premium annually or break it into smaller payments. If you have a mortgage, the lender usually collects a monthly “escrow” payment that they keep in an account to pay the insurance premiums and property taxes from on your behalf.
What happens in the event of a loss?
Most insurers will cover “replacement cost”—the amount needed to buy a new, comparable version of what you lost up to a dollar limit specified in the policy. It’s important to understand that replacement cost is not the same as market value; you’ll be compensated for the actual cost to repair/rebuild/replace your home regardless of what you paid for it or what you could sell it for. Typically the insurer will reimburse you to have your home repaired or replaced with comparable quality if it’s insured to at least 80% of it’s replacement cost, less any deductible that your policy has.
Alternatively, “actual cash value” is the current value of an item that depreciates over time or with use (often used for replacing personal or under-insured property). For example, if you paid $2,000 for your new couch but now it’s only worth $1,000 due to normal wear and tear, your insurer will only pay $1,000 less the deductible. You may choose to upgrade your personal property coverage to replacement cost instead for an extra fee.
For extra peace of mind, you can also purchase an extended replacement cost policy that provides extra coverage up to a set percentage above the policy limit. This can protect you if your home costs more than anticipated to rebuild.
Are the premiums tax deductible?
The short answer is no, unless you run a business from your home or it’s a rental property. However, you may be able to claim a casualty loss deduction if you suffered a loss due to a federally declared disaster (but check in with your tax pro for advice specific to your situation).
Because laws vary from state to state, it’s important to do your homework if you’re purchasing a home in an unfamiliar area. You can either connect with me or your attorney for advice.
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2025, Windermere Real Estate/Mercer Island.
Selling Your Home: 5 Common Myths
Selling your home is a crash course in real estate education. My clients learn a LOT as we work together to find a buyer and sell at the right price. As you prepare to sell, it’s important to remember that that not everything you’ve heard is true. There are several common myths that can lead to costly mistakes in the selling process. Knowing the truth behind them will clarify your selling journey and help you align your expectations…
Myth 1: Home Value Calculators Are 100% Accurate
Online Automated Valuation Models (AVMs) are a great starting point for understanding how much your home could be worth. However, they are merely a first step in determining home value; to say they are 100% accurate is a myth. When it comes to pricing your home, you need to rely on a true Comparative Market Analysis (CMA), which uses vast amounts of historical and current data on real estate listings to arrive at an accurate and competitive figure.
To get an estimate of how much your home is worth, try our Home Worth Calculator here:
Myth 2: Selling FSBO Will Save You Money
Selling a home requires an intimate knowledge of the housing industry and how to solve the complex situations that arise throughout a real estate transaction. Despite this, some sellers will go it alone and attempt to sell their property without being represented by an agent.
Selling For Sale by Owner (FSBO) is a risky proposition. It requires the seller to bear added liability, fills their schedule with various marketing and promotional responsibilities, and can leave money on the table by inaccurately pricing the property, causing it to sit on the market for too long. The potential costs of selling a home on your own far outweigh the commission real estate agents earn on a home sale.
Myth 3: You Must Remodel to Sell Your Home
The question you’ll face when preparing to sell your home is whether to sell as is or remodel. The answer usually lies somewhere in between, but it depends on your situation and what kinds of home upgrades are driving buyer interest locally. When making improvements to your home, lean toward high ROI remodeling projects to get the best bang for your buck, and avoid trendy projects that can delay listing your home. If you’re considering major upscale renovations, talk to me about which projects buyers in your area are looking for.
Myth 4: Never Accept the First Offer
You’ve likely heard tell that the first buyer’s offer is nothing more than a springboard to up your asking price and to never accept it. In this case, “never” should be approached with caution. In reality, the best offer for your home is one that you and your listing agent have discussed that aligns with your goals. If a matching offer happens to be the first one that comes your way, so be it. The market can shift at any time, so you never know what may happen if you leave an offer on the table. And if the buyer backs out of the deal, you and your agent will find a path forward.
Myth 5: Home Staging Doesn’t Make a Big Difference
Staging your home is so much more than a cosmetic touch-up; it has been proven to help sell homes faster and at a higher price than non-staged homes.1 Staging ensures that your home has universal appeal, which attracts the widest possible pool of potential buyers. When buyers are able to easily imagine living in your home, they become more connected to the property. You should stage your home regardless of your local market conditions, but it can be especially helpful in competitive markets with limited inventory where even the slightest edge can make all the difference for sellers.
Now that you know some of the most common myths in the selling process, get to know its truths. Connect with me to get the process started:
1: National Association of REALTORS® – Why Home Staging Inspires the Best Prices in Any Housing Market
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
This article originally appeared on the Windermere Blog, written by: Sandy Dodge.
How to Avoid Overpaying for a Home in a Transitioning Market
Look Carefully at the Home Itself
Here are four home attributes beyond the number of bedrooms and baths that you should have your eye on…
Home (building) quality: Very well-built homes are a rare find and typically worth every penny of their price. Don’t confuse them with so-so homes that just measure up to the city inspector’s threshold. Lesser quality homes will cost you more in upkeep and replacement as systems and components wear out. If you purchase a lesser quality home for less, the differential might just cover the added maintenance expense. But, if you purchase a fair quality home at the going rate of higher quality homes, you might likely be overpaying.
Deferred maintenance: Different than home quality, deferred maintenance includes the to-do list of items that need to be done to maintain a home’s integrity. A home that has been well maintained over its life typically is a better investment than one that hasn’t. The true cost of deferred maintenance often adds up to more than the cost of the repairs themselves. Don’t forget to factor in the reduced life span of other components—like replacement of damaged wood beneath peeling paint or mold remediation in a damp basement caused by a clogged foundation drain.
Setting: The saying “location, location, location” didn’t get its fame from out of nowhere. A home with an ideal setting on its lot and in the neighborhood—away from busy roads and utility poles/boxes, with adequate privacy, good topography, best positioned to capture views if available, and not adjacent to undesirable elements (poorly maintained homes, water towers or other unsightly public structures, high traffic facilities, etc.) will have more value than a less-ideally sited home. When deciding what to pay for a property it is critical that you evaluate these aspects and any others relevant to a specific neighborhood to determine the +/- effect on value.
Floor plan: How a home lives—flow from room to room, size of rooms, open/closed-off spaces, and below ground vs. above ground living are every bit as important as the total home square footage. You can change a lot of things about a home, but it is very difficult to change a bad floor plan. When you are deciding how high to make that multiple offer bid, consider factoring in the added value or take-away of the floor plan.
Beyond the Four Walls
Interest Rates: In addition to being more selective about the home itself, it pays off to understand how interest rates impact your monthly housing cost. It’s a bigger deal than you might think. Every 1% increase in interest rate equates to roughly a 10% decrease in buying power. Said differently, a 10% drop in home sale price would be wiped out by a subtle 1% increase in mortgage interest rate. This means you can obtain a much more expensive home when rates are low, whereas higher rates get you less home—even though you still pay the same monthly payment.
If you have $5,000 a month to budget for a house payment (before taxes and insurance), you could purchase a $931,000 house at a 5% mortgage rate. If rates went up to 6%, the same monthly payment would only get you an $834,000 home. Your buying power diminishes considerably with each bump up in rates.
This second chart below shows how interest rates impact monthly payments. If you’re purchasing a $950,000 house at a 5% interest rate, you’ll be paying $596 less every month than if rates were 6%. That adds up quick…$7,152 in one year alone!
Job and Location Stability: Like nearly any investment vehicle, being able to buy and sell on your own time allows you take advantage of ideal market conditions or hold until a more favorable market returns. In an uncertain market, you should plan to be able to stay put for a minimum of 5-7 years if needed. If relocation or job loss is a distinct possibility, waiting to buy might avoid loss as a result of an untimely sale.
Homeownership Lifestyle: For many, homeownership represents a life accomplishment, independence, and financial security. For others, one more thing requiring maintenance and upkeep. Knowing where you stand (at this moment in time anyway) when it comes to evaluating the pros and cons of homeownership as a lifestyle choice is a better first step than an afterthought.
Final Thoughts
Want to know how you can best protect yourself in a changing real estate market? Reach out to us for help evaluating whether it would make financial sense to buy now or wait.
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