Comps and Coffee- Chatting about New Jersey Real Estate

The biggest question that a home seller will ask is how to maximize the selling potential of a property. Sellers must be aware that current market participants include first- time home buyers who may not have the extra capital to invest in the property after the sale. Therefore, theses buyers search for affordable properties that are move in ready with few or no repair issues. With such a  presence of FHA and first-time home buyers, sellers need to prepare the property for the fussiest market participants.

There are a plethora of home improvement shows on television demonstrating how to maximize property selling potential, the shows are mostly geared toward sellers willing to invest exorbitant amounts of money. This is not realistic for most sellers who can only invest a small amount of money to market their property; however, even a small investment can go a long way. Many real estate professionals will agree on the most popular methods to increase profit and decrease marketing time which include some simple solutions to freshen up a tired or outdated decor. So, before you list your property for sale, take a look at a few tips to capitalize on the potential of your property.

• Attend Open Houses Open houses in your area are a great way to peek at area listings. You will be able to get a first- hand look at the condition of the other properties directly in competition with yours as well as get a feel for your local market. At the same time, you can meet local real estate agents and set them up for interviews for possibly listing your property.
• Pre-pack Pre-packing includes removing needless items from around the property such as personal items and family photos, cleaning out cabinets and closets, and extra furniture. Pre-packing and removing excess items can make rooms and spaces appear larger. If the space is cramped and cluttered, the buyer may feel that the house is not going to suit his/her needs. A little work ahead of time will also save you time when your property sells and you are ready move.
• Paint Once you remove wall hangings and photos, patch up any holes in the walls and add a fresh coat of neutral toned paint. Paint is the least expensive way to brighten up any space and can even transform outdated paneling for a more modern look. A light color can make a space appear larger and do not forget to add accessory items such as decorative pillows and wall-hangings for a pop of color and a warm and cozy feel.
• Flooring Professional carpet cleaning may revitalize a stained carpet; however, if the flooring is badly stained and worn, consider replacing it with inexpensive laminate, tile, or new carpet in the main rooms as well as kitchen and bathrooms.
• Professional Cleaning Unfortunately, many homeowners are turned off by everyday odors such as cooking, cigarette smoking, and pets. A deep professional cleaning can help remove some odors by cleaning all surfaces including kitchen cabinets and baseboards. Wash soft surface items such as pillows, linens, and curtains to eliminate odors. Scented candles just mask odors, so professional cleaning along with a fresh coat of paint, addressing the flooring issues and soft-surface odors help the home appear and smell better.
• Kitchen Updates If you have older kitchen cabinets that are functional but outdated, a new coat of cabinet paint coupled with some new hardware economically update the appearance of an old kitchen. There are many options for cabinet paint but be sure to use the paint specially designed for kitchen cabinets. The same goes for outdated bathroom cabinetry.
• Bathrooms Stained and dirty grout are easy fixes that can be accomplished in a day. A simple cure could be as easy as scrubbing the grout with bleach or cleanser and a toothbrush. If the elbow grease fails,  remove any discolored or stained grout and replace with new grout and caulk. Add some fresh towels and candles for a spa- like feel.
• Exterior Like the interior, remove excess items outdoors. Add some colorful plants, pull any weeds, trim overgrown vegetation, mulch the flower beds, and fill in any lawn holes with dirt and sow some grass seed. Painting the front door with a contrasting color adds visual interest as well as curb appeal.
• Overall Repairs– Chances are that if you feel something requires repair, it does. Examine all levels of the dwelling for missing electrical outlet/switch covers, loose wires, roof leaks, missing floor and wall trim, etc and repair/ replace any items that seem deficient. Some of these minor issues become bargaining chips after the buyer receives a home inspection report.

Choosing the right real estate agent is the key to successfully marketing your property. Do not just choose and agent by a recommendation from a friend or hire a real estate agent just because he/she is a friend. This is your biggest investment and you must choose an agent wisely so choose one that you trust. and like.

• Agent Interviews– Interview at least three local agents who know and understand the complexities of your market area. A good real estate agent will inform you how he/she will market your property.
• Professional Photos Ask if the agent will provide professional photos to captivate the buyers looking online on real estate websites and social media which is now another item in a good agent’s marketing toolbox.
• Marketing Plan Listen to the strategies the real estate agent uses to sell property and find out the success rate of the agent. Don’t be afraid to ask for their statistics and if he/she has a presence on social media.
• Commission Do not select an agent based on the commission rate. Instead, ask the agent to detail a marketing plan for selling your property and ask for their listing/sales statistics. Commission rates mean nothing if a property does not sell. On the other hand, a good agent will be worth his/her commission.
• Home Warranty Most real estate agents offer a home warranty for a predetermined amount that is paid only when your property closes. A home warranty offers an effective tool to make your property stand out among the competition.
• Competitive Market Analysis (CMA) A real estate agent should provide you with a CMA to determine a list price based on active listings in your area as well as closed sales. While a CMA suggests a listing price, if your property is unique and has beneficial or adverse location challenges, a CMA may not reflect the most probable listing price.
• List Price Appraisal Similar to a CMA, a list price appraisal will provide an opinion of the most probable market value for your property. However, a list price appraisal is more detailed than a CMA and specific to all the characteristics of your property that a CMA cannot address. The appraisal will assess the overall condition, size, and amenities of your property in detail to conclude its most probable selling price. Yes, an appraisal costs you money; however, if the property is not listed at the correct price, you could lose money. Properties not priced correctly suffer in the long run with excessive marketing time. Proper list price is key to marketing and selling a property, so a small investment upfront could have a big impact.

Simple and cost-effective repairs transform a tired property into a fresh listing with a little bit of work and small amount of money. Spending money to prepare your property for selling opens your listing up to all the market participants for the most exposure and shorter marketing times. Stick to a predetermined budget for  repairs and updates in order to take full advantage of the potential of your property.

Maria A. Nucci, SCRREA