Relocating? Pack it Up!

With the economy being what it is today, competition for employment is fierce. More people are determining they’re willing to move wherever they can find a decent job and attempt to regain some stability.

If the new employer offers a relocation package, it’s typical that moving expenses are paid, but the movers only insure what they themselves pack. For homeowners who now need to sell their homes to relocate, they may be hesitant to box up anything themselves. This may be fine for décor and wardrobe minimalists, but few homeowners fall into that category.

So, if this scenario applies to you, congratulations on your new opportunity! Now go get some boxes.

It’s wonderful that someone else is going to do all of the packing and moving for you, but you likely still have some work to do to get your home photo-perfect and show-ready. If you don’t take the time to prepare your home for public viewing, you could be cheating yourself out of thousands of dollars of sale proceeds. It’s also unfair to expect your real estate agent to put all sorts of time and money into marketing efforts when you haven’t done your job as homeowner first.

Take a good look around your home, paying particular attention to areas that attract clutter – and that could be anywhere. Begin to edit furnishings, décor, collections, pantry items, and overstuffed cabinets and closets. Be careful not to over-edit – you don’t want to pack up items you’ll need to have accessible until you move, and you don’t want your home to seem cold or completely devoid of personality. You just want buyers to see the great space they’ll be buying, and that’s easier to see with fewer items to distract them.

Now, there’s no need to pay for boxes, since the movers will surely come with their own packing materials. Think back to your years of apartment dwelling – and moving. Call grocery stores and office supply stores to find out when they receive their shipments, and tell them you’d like to take some boxes off their hands. You just need to be timely in your pick-up, or else they’ll have broken down the boxes already.

Since the movers will need to properly pack the items you’re temporarily placing in mismatched boxes, you don’t need to be overly careful with your packing techniques. Begin with items that aren’t fragile – clothing, seasonal shoes/boots/coats, towels, blankets, linens, metal baking pans and cookware that aren’t often used, games, books, DVDs, CDs, toys, etc. Extra furniture might be shuffled to a less furnished room or storage space.

When it comes to breakables, consider moving them to another space that you’ve managed to empty of non-breakables – like a cabinet, closet, or even inside a piece of furniture that buyers won’t look in because it’s your personal property. You get the idea.

In this housing market, you can’t leave success to chance – and you can’t place all of the responsibility on the shoulders of your real estate agent. So, get crackin’ and get packin’!

Open Houses - Still Worth Consideration

Open houses are not appropriate for all properties. They’re best used for homes that will attract a broader number of buyers in a given market. Today, they are increasingly being debated for their current value and relevance. As technology offers more online photos, virtual tours, and videos to millions of buyers at any hour, actual open houses are losing their original appeal.

Many real estate agents have lost their enthusiasm for them – especially if they’re standing around in homes for two hours, without any foot traffic.

A growing number of sellers are opting out of open houses. They’re aware that home sales rarely result from open houses in most areas, and are more of an opportunity for agents to meet prospective clients – be they buyers or future sellers.

Open houses also attract curious neighbors and looky-loos, who simply want to see inside the home or collect decorating ideas.

Open houses may soon follow print advertising as a largely extinct form of effectively marketing properties. Until then, here are some reasons to continue to hold them:

For sellers: Having agents host open houses gives them the opportunity to point out features and answer questions about the property. The more people who see your property, the better – be they actual buyers, neighbors, looky-loos, or other agents. You never know when even a looky-loo encounters someone for whom they realize your home may be perfect.

For buyers: If you haven’t selected an agent to represent you yet, open houses are a great way to observe and meet a variety of agents in what should be a low-pressure environment. Open houses allow you to quickly move through many properties of different price ranges to learn what you really get for the money. Photos, virtual tours, and video can only do so much. There is no substitute for seeing a property, a neighborhood, and an entire community with your own eyes.

For agents: Depending on the location, open houses continue to be an opportunity for you to get in front of buyers in a more relaxed setting. They allow you to answer questions buyers may have about the property, or about home buying, in general. You also have the chance to ask questions – to stay on top of what buyers are seeking. Meeting neighbors and looky-loos may provide you with some unique information about the area that would be helpful in your marketing efforts. The more we can interact with the public, the better our odds for achieving success in our business.

Questions Every Home Seller Should Ask

Now that you have done your homework (see my post, “All Agents are NOT Created Equal”), and you’re ready to schedule interviews with each of the agents you’d like to consider, what should you ask?

Agents who have been in the business for many years may suggest that you ask the following:

1. How long have you been an agent?
2. How many listings do you have?
3. How many sales did you close last year?
4. What’s your average sale time, from listing to close?
5. For what percentage of the list price did your listings sell?

On the surface, these seem like great questions – and the answers are not completely without merit, but they could be very misleading. Let’s review them for a moment:

1. Longevity in this business can be helpful if the agent has been very active AND has embraced the numerous changes that have taken place in the industry. Many seasoned agents are uncomfortable with technology and new forms of research and communication. This discomfort can be an enormous disadvantage for today’s buyers and sellers, where time is of the essence and online marketing is a must. Newer agents are entering the industry with an understanding of what is required to compete in today’s market. They are also fresh from other industries, coming into real estate with a variety of skills – and new energy – that may be just what your listing needs.

2. The number of listings an agent has may not indicate how well the agent performs. The current market and other factors determine how many buyers and sellers an agent is working with. Agents with fewer listings may be be working with more buyers, which could be an advantage for sellers seeking an agent. Those with fewer listings may also dedicate more time to marketing them. That's by no means a hard and fast rule. There are agents with many listings who do an excellent job of serving their clients because they have perfected their service and communication. Then there are others with many listings who may simply show up to list the properties and then collect the commissions, with little contact in between. Some clients are comfortable with this type of service - others are not.

3. The number of sales closed by an agent in a given year does not offer great insight either. In 2008, many agents had numerous deals fall through because buyers could not obtain financing – even when they had good credit. Our current housing climate is throwing seasoned agents for a loop, as much as the rookies.

4. Again, average sale time does not necessarily reflect the efforts and abilities of the agent. It does reflect the nature of the market, but it may also be impacted by the seller. If sellers are unrealistic about how their home should be priced, their home may sit on the market even longer. With all of the options buyers have today, they certainly don’t need to settle for an overpriced home. Moreover, lenders won’t lend a buyer more than the property is actually worth, in current market conditions.

5. The ratio of sales price to list price may or may not be helpful information. If you’re a buyer, you want the sale price to be as low as possible, and as a seller, you want that figure to be high. Also, is the agent figuring the ratio from the original list price, or the most recently reduced list price? Again, this figure is going to reflect what’s happening in the market. And while that is vital information, it’s not going to tell you if the agent is right for you.

So, what questions should you ask? What questions will help you compare the abilities and resources of the agents you wish to consider? Here’s a list that may offer you insight:

* Based on current market stats for your area, how long is it typically taking to sell homes like yours?
* How do they plan to attract buyers to your home? What marketing methods will they use?
* Where will your listing be presented online, for buyers to find it?
* Aside from the yard sign and placing the listing online, what other marketing do they do?
* Do they have any suggestions for how to make your home more salable?
* What do they expect from you, as a client?
* How will they communicate with you, and how often? (Will they use your preferred method of communication?)
* How will you be contacted about showings?
* How will you receive feedback about showings?
* What price do they recommend for your home? How have they arrived at that price? What research did they do?
* What is their commission for the services they (and their company) provide?
* Do they offer a written performance agreement? (This is VERY important.)

And consider these basics:
Do you like the agent’s presentation, communication skills, energy, and personality? Can you see yourself working with this person for at least the next 6 months or more?

If you first take the time to prepare – as I suggested in my last post, “All Agents are NOT Created Equal” – and then pause to interview your top choices, you can then feel comfortable leaving the final decision to your instincts. Information always leads to sharper instincts, which are needed now more than ever.

All Agents are NOT Created Equal

It’s a common misconception that all real estate agents are the same. People assume that since we all carry the same basic licensing credentials, that we all practice real estate the same way. Of course, that’s as silly as suggesting that everyone with a driver’s license practices the same driving habits. So, how might you go about choosing a real estate agent to help you with the all-important business decision of buying or selling a home?

Here are some tips on how to find the agent who’s right for you.

1. Spend at least one day attending open houses – not necessarily to see the houses, but to meet the agents hosting the open houses. This will give you a feel for the variety of agents out there, and how they present themselves. Get a business card from agents you wish to research further online.

2. Ask friends or colleagues for the names of agents they would recommend, and research them further online.

3. Select several real estate companies located where you’re looking to buy or sell, and review the company, as well as the agents on their websites.

Typically, agents share information about themselves and/or their expertise in the “About Me” section of their website. If they haven’t written anything about themselves, or it’s riddled with misspellings and grammatical errors – move on. You want an agent who makes use of all available resources, and cares enough to pay attention to detail. Legally binding contracts and the processes of buying or selling a home are all about the details.

If an agent passes the “About Me” test, take a look at the agent’s listings next. They should also appear on the agent's website. Pay particular attention to the photos and worded description of the properties. As a consumer, you know what marketing grabs you. Photos rank #1 in importance for marketing a property. How does the agent measure up?

As you narrow down the list of agents who peak your interest, be sure to look at their company’s website. This may tell you a lot about the resources the company offers its agents, as well as its customers.

Finally, select at least three agents to interview. Before contacting them to set up appointments to meet, make a list of everything that’s important to you in an agent. This will help keep you focused as you make your final decision. Also, write up a list of questions in advance, so you’re sure to have all of your questions answered.

It may seem like a lot of preparation, but keep in mind the financial significance of what you’re looking to buy or sell.