Posted On: April 27th, 2018 4:22PM
So you’re trying to sell your house because you decided to take that amazing job halfway across the country, or you’re just sick of the traffic. Either way, selling your home will require similar methods used by your local real estate agent. While some homeowners prefer selling their home FIZ-Bow Style, For Sale By Owner (FSBO), this blog busts the 3 most common myths associated with selling your home yourself:
#1 Myth: For Sale By Owner Saves You Time and Money
Popular websites such as Zillow and Trulia have made determining the market value of a home much easier. Owners can go to these websites, search for their address and be magically provided with the market price of their home. Excellent! Now it’s time to take pictures, post the home on various websites, buy a “For Sale” sign, host open houses, follow-up with leads and negotiate the price. That’s not too time consuming, right?.
Homeowners with real estate agents are getting more money for their homes and saving their own personal time. Fact is, Zillow and Trulia do not gather data based on property upgrades or neighborhood conditions, which means you’re most likely getting a skewed number to begin with. If you really want to sell your home, you’ll have to spend a few hours conducting a thorough market analysis by comparing your home to at least five other similar properties for sale in your area. In a study by Levitt & Syverson (2008), the authors found that agents sell homes for 4.9% higher than unrepresented FSBO transactions. While not having a realtor showed to have little impact on the listing price of a home, homes with a realtor sold homes for higher than the list price (p. 5). Furthermore, similar studies have suggested that agents result in higher selling prices on homes with little difference regarding time-on-market (p. 6).
#2 Myth: For Sale By Owner Homes Receive The Same Exposure
The spawn of modern websites and apps have made it increasingly simple for homeowners to create a property ad and receive a decent amount of exposure. Free websites including Craigslist, Trulia, Zillow and Realtor are some examples of commonly used outlets for advertising a property that is for sale. Zillow, Trulia and Realtor offer amazing lead tracking technology as a homeowner can see how many times their property ad has been viewed, clicked on, saved and inquired by potential home buyers. This is the best way to get leads, right? Wrong.
Homeowners with real estate agents are getting more exposure on their homes. In a study by Pullig et al., (2008), the authors surveyed 1,175 real estate agents to collect data on the most effective lead generation activities. The data was then narrowed down to reveal the 9 most effective lead generating activities, with referrals in first place, Interactive Voice Response (IVR) technology in second place, and repeat business in third place. Homeowners who are interested in selling their own property will most likely turn to researching advice before getting started, and an abundance of articles suggest homeowners “make flyers” However, print advertising and direct mail have shown to be the least effective method for generating new leads and are all more cost intensive (p. 5). Fact is, many homeowners typically do not have a list of referrals, automated technology and repeat business clients in their back pocket.
#3 Myth: For Sale By Owner Homes Are Accurately Advertised
By this point you’ve researched to determine the market value of your home, you’ve take a few pictures with the new iphone you got for Christmas, and now you’re ready to welcome in potential homebuyers. You move forward with advertising a few open house dates and can’t wait for the leads to start rolling in. You’re excited because you know that tomorrow will bring floods of potential homebuyers who can’t wait to scoop up your home, right? Well, not always.
One of my good friends is currently in the market to buy a home and a consistent statement she keeps repeating is that “homeowners have stars in their eyes” Having been in the industry myself for several years now, I wouldn’t say that she is entirely wrong. Homeowners are individuals who have invested hard earned money and time into making their home a home. So, it is reasonable to understand their “my child can do no wrong” outlook. With their rose colored glasses intact, FSBO homes in your area may not be accurately advertised. As a real estate agent, it is my responsibility to sit down with my client and communicate the reality of the situation, which sometimes requires a carpet replacement, appliance upgrades or a new hot water heater to get the price they want. To make sure your home is accurately advertised, give us a call and I’ll be more than happy to provide you with a free evaluation and consultation. Also check out last weeks blog on 4 Tips To Get Your Home Spring Ready if you’re planning an FSBO transaction this spring.
The HomeSmart Realty Group
Levitt, S.D., & Syverson, C. (2008). Market Distortions When Agents Are Better Informed: The Value of Information in Real Estate Transactions. Department of Economics University of Chicago, 1-35. Retrieved from http://home.uchicago.edu/~syverson/realestate.pdf
Pullig, C., Indergard, L., Blake, S., & Simpson, J. (2008). Lead Generation: What Really Works?. Keller Center Research Report, 1-11. Retrieved from https://www.baylor.edu/business_new/kellercenter/doc.php/194248.pdf
Posted On: April 13th, 2018 1:10PM
Spring is in the air! The flowers are blooming, birds are chirping at five o’clock in the morning, and the Colorado real estate market is booming! After six long months of hibernation, it’s time to get your house spring ready! Here are four tips to get your house looking brand new for the in-laws, that open house you’ve waited all winter for, or just because you like things pretty:
#1 Landscape, Landscape, Landscape!
This first thing potential buyers or anyone driving past your home will see is your lawn. After a long winter the grass is brown and patchy, the flower bed has wasted away to mulch and those shrubs along the front of your home look like they woke up on the wrong side of the bed! It’s time to spruce up that yard and get your home looking alive again! Disagree? In a 2009 study of landscaping on perceived home value, 42% of survey respondents found “landscape sophistication” to increase home value by more than 12% . Curious to find out if your landscape is preventing your home from putting it’s best foot forward? Give us a call! We’ll be happy to provide you with a free evaluation.
#2 Irrigation Turn-On
Yes! The last frost date is predicted to be May 4, 2018. This means it’s time to break out the hose and get that water pumping! Without a sufficient amount of water, your landscape, landscape, landscape efforts may be for nothin’ We don’t want that! If you’re looking for a great irrigation turn-on vendor who won’t charge you an arm and a leg, give us a call. We’ll be happy to provide you with a reference!
#3 Power Wash Those Windows
I recently went to a friends home and immediately stopped upon walking in. She asked me what was going on and I said “It’s so bright in here! Something’s different. I’m just not sure what but it looks extremely clean in here” She responded “Oh! We got our windows power washed!” I do not advocate for many things, but getting your home windows power washed is not a waste of time my friend! Think of power washing as the shine cycle when you go through the car wash. Is it absolutely necessary for the car to look clean? No. But does it help? Oh man, does it! We would recommend power washing to any of our clients interested in selling their homes as it is the cherry on top!
#4 Talk to an Arborist
There are 14 major species of trees in the State of Colorado alone, and that’s only the “major” ones. Colorado’s mountain pine beetle epidemic has killed trees across more than 3 million acres. While the Ash Tree is not native to Colorado, it is a common sight in the front and backyards of residential homes across the state. Unfortunately, the Emerald Ash Borer has begun decimating our Ash trees here in Colorado. If your trees are looking a little gloomy or leaning towards the ground, we would highly recommend calling your local arborist for a free evaluation. This infestation has shown to be 99 percent preventable if the tree is treated prior to infestation .
If you’re curious about the value of your home, give us a call! We’re a no pressure, easy to work with group of Real Estate agents in Colorado that love helping out our neighbors.
That’s it for today! Stay tuned for our next blog post!
The Home Smart Realty Group
 The Effect of Landscape Plants on Perceived Home Value. Retrieved from https://pubs.ext.vt.edu/content/dam/pubs_ext_vt_edu/426/426-087/426-087_pdf.pdf
 Emerald Ash Borer: Fort Collins Ash Trees are in Trouble. Just Ask Boulder. Retrieved from https://www.coloradoan.com/story/news/2017/09/18/emerald-ash-borer-fort-collins-boulder-ash-trees/644376001/