Curb Appeal – Setting the Tone, Attracting Home Buyers

Two important pieces of the marketing puzzle are web appeal and curb appeal. Getting both right is key to selling your home for top dollar in today’s market. I discussed web appeal in an earlier post entitled, “Web Appeal – Your Home’s First Impression to Buyers” (click on title to read). Today, we’re going to look at curb appeal.

Curb appeal sets the tone and attracts (or deters) home buyers. It makes your home stand out from the competition – hopefully in a good way. If done properly, it informs and attracts those just driving by as well as buyers/agents pulling up in their car to see the property in person. If done incorrectly, it will deter potential buyers and make your competition (aka similar homes for sale in the area) appear better and more appealing than yours which usually leads to the buyer placing an offer on your neighbor’s home rather than yours.

How do you go about getting an A+ grade on your home’s curb appeal? The same way you would go about getting your ready to sell. Give it a full detail. You won’t get top dollar of your car is dirty and doesn’t look well maintained. The same goes for your home.

Here’s a partial list of what should be done…

• power wash the exterior
• replace any damaged siding, bricks, wood, etc.
• give your home a landscaping facelift (mulch, shrubs, flowers, trees, grass, etc)
• fresh coat of paint if applicable
• bay and other window frames, shutter touch-up
• power wash (and possibly re-seal/stain) the deck

There’s more, but this gives you an idea of what I’m talking about.

One part of curb appeal which few agents/brokers talk about is the yard sign in the front yard. Why don’t they talk about it? Because the typical agent/broker yard sign does absolutely nothing to increase the curb appeal. In some cases, it detracts from the home’s curb appeal.

The typical agent/broker yard sign gives buyers only the following information…

• brokerage name and phone number
• agent name and phone number

The irony of it is that we, as agents and brokers are hired by you to market your home in the most effective manner possible in order to attract a ready, willing and able buyer with an offer acceptable to your terms. The bad news is that the typical yard sign gives no information about the property whatsoever which does nothing to attract a buyer which, in turn, does nothing to help sell your home.

The good news is that you don’t have to settle for the norm nor anything less than top of the line. Here’s why…

 

 

This is one example of a custom yard sign I made for a recent listing of mine. Here’s what this sign includes that others do not…

• price
• photos of the interior
• number of bedrooms and bathrooms
• description of other key interior features
• custom property web site URL

Why is this stuff on the sign? Because this is the type of information that buyers want and they want it right then and there. And as the saying goes, “If you got it, flaunt it” – inform potential buyers driving/walking by about your home, what it’s best features are and make them say, “I want to see this house!” This is key, because getting a buyer to want to see your home in person is the first step in getting an offer in your hands.

In the case of this particular listing, while the sitting at the settlement table, the buyer said, “We pulled up to the house and said, ‘Wow, that’s an awesome sign!’” That’s the kind of stuff that will make a buyer remember your home over others (i.e. “the home with the awesome sign”) which plays a part in getting your home sold for top dollar.

The bottom line is this… If you want to sell your home for top dollar in today’s market, you must have excellent and “stand out from the rest” web appeal and curb appeal. If you don’t your home will sit on the market while those around you sell or you lower the price. If your home’s web appeal and curb appeal is better than the rest, your yard sign will look like this,

 

 

Home Seller Tips, Part Three – Pricing (and Reality)

This is part three of my three part mini-series on how to sell your home for the most amount of money in today’s market. (If you missed them, click here for part one and click here for part two). This part deals with the number one most important issue when it comes to selling your house – pricing – as well as the issue of reality.

Pricing

In most cases, the reason why a home does not sell is pricing. If it’s not priced correctly, it will simply sit on the market collecting dust while other properties that are priced correctly sell all around it.

Folks, you can not fool today’s home buyer nor a good Buyer’s Agent.

In today’s day and age, there is an abundance of information available to every home buyer with an internet connection (which around here is pretty much everyone). Buyers can get information on recent sales, historical sales, tax records, assessed values, market trends, market statistics, photos, virtual tours, videos…the list goes on.

Buyers can and will quickly and easily figure out what the fair market value of your property is. If/when a buyer sees that you are priced above market value, they are typically very quick to pass on even seeing your property and will look at another similar property that is priced more attractively. Even if there are no properties similar to yours on the market, if a buyer thinks yours is overpriced, they will wait until one comes on the market that is priced well.

Even in the off chance they have no internet connection or don’t do the research themselves, any Buyer’s Agent worth their weight in salt will let them know whether a property is priced at, below or above market value based on the current market conditions. The Buyer’s Agent will share their opinion with their buyer clients (that’s part of what they’re getting paid to do) and once they do, the buyer will most likely pass on your property.

Tip: Once a buyer gets a list of properties that meet their general criteria, they first sort them by what they look like based on photos, virtual tour, etc. Then they sort again based on price. The remaining properties are then put on the “to see in person” list. If you are not priced correctly, you won’t make that list.

How do you price your property correctly?

Check the comps. Find out what similar properties have sold for within the last 90 days. This will show you exactly what buyers are willing to pay for similar properties. And also find out what similar properties that are currently under contract were last priced at before they went under contract. That will give you an idea of which asking prices are leading to offers from buyers.

Once you have the comps in front of you, add/deduct value based on what your property has versus what the other properties have/do not have. For example…if you have an in-ground basement while the other property has a walk-out basement, you need to deduct for that.

Another example…if the other property has an unfinished basement and yours is finished, that could be a difference of tens of thousands of additional market value for your property (depending on the square footage of the basement, quality of build, etc).

Check the current market conditions. Are prices appreciating, declining or steady? Is the home inventory increasing, decreasing or steady? Is buyer demand on the way up, way down or steady? Is the inventory mostly traditional resales, foreclosures or short-sales and what percentage does each type of property comprise? How many properties similar to yours have sold past month…3 months…6 months? And the list goes on…

Market conditions is very important when it comes to pricing correctly. This is where an experienced and knowledgeable Realtor who has his/her ear to the ground comes in. If they are on top of the market and what’s going on, they can spit out accurate statistics, advice and guidance at a split second even if you wake them up at 3am from a dead sleep.

Check how much competition you have and do some recon. In many ways, this is a battle. Your competition is made up of other sellers with similar properties that have their homes on the market as well. Home buyers that come across your property will most likely come across your competitors’ properties too. If a buyer feels that your competitors’ property is a better value than yours, they will probably place on offer on their house before they place one on yours.

This is what us Realtors call, “Selling your neighbor’s house” – a buyer comes across your house, then sees your neighbor’s house, yours makes theirs look like a better deal so they buy theirs. Congrats! You’ve just helped sell your neighbor’s house and lost a potential buyer for yours. This is the last thing you want to do – especially in a declining market.

Important: If prices are declining, you will probably get less for your home now that your neighbor has sold their house. And the less your neighbor accepted for their house, the less you’ll get for yours (see paragraph 3 above).

And do some recon. Have your listing agent take you through your competitor’s homes so you can see them with your own eyes and in person. This will help you see exactly how they compare to your property and you will know what buyers are comparing your home to and how, which helps tremendously come negotiating time.

Reality

You have to be realistic. If the comps and market conditions all point to a market value between$500K and $520K, don’t list it at $575K. Your property will just sit on the market until A) you lower your price or B) market values appreciate $55K to$75K (and we all have a pretty good idea of how long that could take).

You may say, “But I want $575K!” or “I think my home is worth that much regardless of what the comps/you say.” That’s great.

But it doesn’t matter.

Your home is worth what a ready, willing and able buyer will pay for it today. And the comps illustrate what a ready, willing and able buyer has been willing to spend on a property such as yours in the last 1 to 90 days. If you are not willing to sell your home for what it’s worth in today’s market, you may not want to list it for sale in the first place.

On a related note…If you figure out that what you owe is more than what you’ll make from the sale of your home based on your property’s current market value, you have three options,

1. Don’t sell it.
2. Do a short-sale (click here for more on that).
3. Foreclosure (I strongly urge you to avoid foreclosure at all costs for a variety of reasons).

So there it is folks…my three-part mini-series on how to get the most money for your home in today’s market.

If you have any questions or concerns about anything, click here to contact me at any time. And if you’re considering selling your home and/or are interviewing several Listing Agents in the area, I would love the opportunity to interview with you and see if we would work well together.

Home Seller Tips, Part Two – Marketing

This is part two in a three part mini-series for home sellers on how to sell your home for the most amount possible in the shortest amount of time. The first part dealt with “The Three C’s” (click here if you missed it). Part two deals with Marketing.

Who is your audience?

The first step is to determine who your audience is. Your audience consists of ready, willing and able buyers. This means buyers who are looking for a property such as yours in your area, can afford a property at your price point and are ready to make an offer on a property and can settle within the next 30 to 90 days.

How does your audience search for and find properties for sale?

In the Washington, DC metro area including Northern Virginia, approximately 90 percent of buyers start their search for real estate on-line. They search through a variety of real estate listing sites, as well as Google, Bing, Yahoo, AOL, etc. This means that you focus heavily on on-line marketing. This includes putting your property on the appropriate web sites and making sure that your property listing stands out from your competition (other similar properties for sale in your area).

Approximately 40 percent of buyers find the property they ultimately buy through a real estate agent/broker. This means that you must put your property listing in front of as many agents/brokers as possible. The best way to do this is to market your property on the MLS as well as word-of-mouth marketing by your agent/broker to other agents/brokers (via phone, email, in person, social media, etc).

How do buyers get more information about the community, amenities, proximity to major routes, etc?

Buyers don’t just buy your property. They buy the community, amenities, location, proximity to major routes, transportation, etc. The amount of information allowed by the MLS and real estate listings sites is limited. There is no place to put links or much information about amenities, the nearest shopping centers, major routes, etc.

That is why having a single property site specifically for your property is so important. Your property’s site should provide potential buyers with all the information they need to make an informed decision about not only your property, but the subdivision, town and general area it’s in.

To see what I mean, check out a few of the single property sites I have created for my sellers:

• 21377scaraplace.com
• coloniescondo.com
• 44039risingsun.com

Do yard signs work?

They used to work much better once upon a time than they do today, but they still help. The statistics a few years ago showed that 15 percent of buyers found the property they ultimately bought by seeing the sign in the yard. That statistic is now in the single digits.

Nevertheless, they do still work a bit so having a sign that stands out and mainly provides information about the property, not the agent or brokerage firm is key.

Let me repeat… The sign must stand out and mainly provide information about the property, not the just the agent or brokerage firm.

Too many real estate signs are the same size, just say “For Sale” and have the brokerage firm’s name, agent’s name and contact information in bold lettering – nothing else. Maybe I’m wrong, but I don’t believe having nothing about the property itself makes a buyer driving down the street say, “Wow! That sounds like a great house on the inside! I want to see it ASAP!”

That’s why a custom signs specific to your property listing is important. Put some photos of the interior of the house on the sign. Point out the main selling points of the property. Share some special features of the property and/or community. Make the sign odd sized. And put a link to your property’s web site. This will make the sign and your property stand out above the rest.

Every sign I create for my listings is unique and specific to the property. All of the things I just mentioned along with some others help my signs stand out and help sell the property. After all, I wasn’t hired to promote myself or my brokerage firm – I was hired to market and sell my clients’ property.

Do Open Houses work?

The answer to this question depends on where you are. If you’re in a market such as New York City, open houses are very effective. In areas such as Northern Virginia, they are not. Statistics shows that about one percent of buyers found they home they ultimately bought through an open house.

So why do agents still do open houses? Because it appeases their clients and they’re afraid to “lose the listing” if they don’t agree to do an open house regardless of whether they’re effective or not. Another reason they do it is to get future listing and buyer leads.

All of your nosy neighbors that come through your open house to see what you have inside, how you’ve decorated and how your property compares to theirs are potential seller/listing clients. Your agent hope to chat with them and get their information at the open house so they have a shot at being hired by your neighbors when they decide to sell their home.

The consumers that go through open houses are typically in the very early stages of house hunting and are usually 6 to 12 months out from actually buying a home. Remember, your target audience is ready, willing and able buyers – not, “not quite ready, not quite willing and not able to buy yet” home browsers.

The next and final part of this three-part mini-series will focus on pricing, which is the most important aspect of selling your home in today’s market.

Related Articles

Home Seller Tips, Part One – “The Three C’s”

Home Seller Tips, Part One – “The Three C’s”

This is the first in a three part mini-series for home sellers on how to sell your home for the most amount possible in the shortest amount of time. The first part deals with the “Three C’s” – Cleanliness, Clutter and Cohesiveness.

Cleanliness

If you’ve ever been house hunting, you know how it is to walk into a dirty home. I’ve heard my buyer clients say things such as,

• “Ewwwww”
• “I can’t believe they can live like this”
• “If the house is this dirty, they must not take care of the rest of the house much either”

These are not things that you want potential buyers saying while going through your property.

Here are some of things that my buyer clients say while going through a very clean house…

• “Wow! They really take good care of their home!”
• “The carpets and hardwoods are in great shape!”
• “The house looks much newer than it really is!”

What a difference in buyer perception, isn’t it?

The cleaner your home is, the more attractive your home will be to potential buyer. And the more a buyer will perceive the house being in good shape which translates to the buyer seeing more value in the property and offering a higher price for it.

Clutter

Though your definition of clutter may be different, the definition of clutter when it comes to real estate is,

• No more than one to two items on any one piece of furniture or wall
• Having no more furniture or items in a room than is necessary to fill it up and make it look lived in

An example of the first would be one lamp on a nightstand…or… two items on the fireplace mantle…or…one item on top of the dresser…or…one painting on the outside wall of the family room.

An example of the second would be a medium sized couch in a medium sized room rather than a huge “L” shaped couch that takes up 1/2 of the room’s floor space…or… a small circular table and two chairs in a small eat-in-kitchen rather than a medium-sized square dining room style table with four chairs that takes up the majority of floor space in the eat-in-kitchen and makes it looks formal when it shouldn’t.

Clutter clouds a buyer’s mind and makes them focus on the items creating the clutter rather than property itself. The less a buyer notices the actual property, the less they will remember the good things about it let alone the property itself. This translates to less of a perceived value by the buyer and less of an offer price – if they make an offer at all.

Cohesiveness

Cohesiveness is how well everything flows together throughout the entire property – furniture, decorating, paint schemes, landscaping, outdoor decorations, etc. If things do not flow, buyers will focus more on that then the  physical property itself. This doesn’t help their perceived value of the property and hurts your chances of getting a high offer price.

For example…Buyers are thrown off when one room is burgundy and has contemporary furniture in it while the next room over is burgundy and has traditional or country style furniture.

Stick with one theme and try to make things match as best as possible.

• If you have contemporary furniture in the family room, do the same in the kitchen and dining room
• If you have neutral paint in two of the bedrooms, do the same or something very similar in the other bedroom(s)
• If you have lots of bright flowers and bushes as part of your landscaping in the front of the home, plant some in the back of the home as well

If you would like to find out how your property does in a “Three C’s” test, call or email me – danilo.bogdanovic (at) gmail (dot) com – 703.582.6900. I would be happy to stop by, give you my professional opinion and be of help.

RELATED READING

Home Seller Tips, Part Two – Marketing

Home Seller Tips, Part Three – Pricing (and Reality)