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Selling A Home
Question: Is there a best time of year to put my home on the market?Answer: Good question. When I first started selling real estate over 10 years ago, there seemed to be 'seasons' to list and sell properties—but I believe these no longer exist.
Listing after the first of the year, from mid to late January, can allow you to get a jump on the market. "Rates are good and are more likely to rise than drop, so let's not risk the market jumping up on us," would be my response to anyone thinking of selling their home now.
There is always some risk to listing a property in January or February, because of the unknown weather conditions. However, with the exception of 2003, we have had relatively mild winters for the last several years. It can be troublesome to show your home in the snow and sleet, but the competition is not as keen.
My advice would be to get your holiday decorations taken down, clean your house and list your home by the end of January. If your home is priced right and shows well, you'll probably have it sold in 60 days, if not sooner.
If time of possession is an issue, we're doing a lot of leasebacks and specific possession dates these days. As long as this situation is dealt with up front, it is normally a non-factor. But I would prepare for the potential of a double move, should you get a full price offer in the first or second week of the listing from a buyer that needs to be in the house at closing or soon after.
Another consideration is curb appeal. Landscaping will not be prevalent in January and through most of April, so make sure you have taken pictures from the past year or two, especially if there are specific areas of interest that might be selling points like a pool, perennials, gardens or patios. Display these photos in a prominent place.
It's so easy to put off preparing your home to sell, but I recommend doing it now and getting a jump on your neighbors.
Tim Catton
Century 21 At the Crossing
Question: We have lived in our first home for 24 years, but now that our kids are grown, it is too much house for us. We need to find something smaller with a more manageable yard, but haven't started seriously shopping yet. Is it a good idea to sell or list our current home before making an offer on a new property?
Answer: The best time to put your home on the market is as soon as you know you want to make a move. Finding and buying a new home while still tied to an existing home is a dilemma faced by many Hoosier families.
Prepare your home to sell—clean, sort, organize and prepare yourselves for the transition as well. You can grow pretty deep roots in 24 years. It's quite possible that a good offer, resulting in a quick sale with an immediate possession clause, could have you facing a temporary housing situation. For many folks, moving to an apartment or in with family is an overwhelming concept.
If your personal finances permit, go ahead and select your next house, negotiate and close while your other home is still on the market. This will permit you to better control the entire process, including the timing of your move. Knowing where you are moving to and what costs you have in your purchase makes it easier to determine what furnishings, appliances and equipment you'll take with you, what can be left behind, and will give you a good idea of what money you have to work with for your selling expenses.
If this approach is beyond your budget, you can protect yourself from the possibility of owning two homes simultaneously by making an offer subject to the sale of your current home. In buying while selling, you'll find yourselves in a much stronger negotiating position if you can keep the two transactions separate and independent.
Dee A. Young
NEW DAY, the real estate company
Question: We are planning to upgrade to a larger house soon, and we wanted to take the summer to make all the improvements to our existing home before putting it on the market. Several people have told me this is a mistake, and that we should get the house on the market as soon as possible to take advantage of what's left of the summer selling season.
Answer: There are pros and cons to both sides of this issue. A home does need to be in top-notch condition to market it for top dollar and sell it in the quickest possible amount of time. There is a lot of competition out there, so it is important that your home look its best. However, its important to remember that repairs you feel are important may not actually be critical to selling success. I recently had a seller replace loose doorknobs on interior doors prior to marketing their home, even though they would not affect their price or market time. Your REALTOR® can help you identify which improvements will help your home the most.
If there are major items that need improvement, a buyer will often view those items as a basis for a reduced offer. Or, if the repair is significant, it is possible not to receive offers at all. Many prospects need a home in "move in condition," so they will not consider anything with even minimal repairs. I once read that approximately 70 percent of people have no vision to imagine what a home could look like with fresh paint, new carpet, etc. That means for most people, you need to have your home in as good of condition as possible.
To address your concern about getting your home ready to market before the summer selling season slows down, I would say that you should be able to take advantage of an active market until at least November. The number of buyers decline in the winter, but so do the number of listings. You may not have as many showings, but the buyers who will be looking should be serious shoppers with less to choose from or compare your home to.
Just remember—selling in late fall may lead to relocating in the winter months. If this isn't a practical option for your family, take your time doing the repairs and place your home on the market early next year instead.
Leslie Cooper Pyle
RE/MAX Real Estate Associates
Question: I love to decorate my home for the holidays, and not just Christmas! We have our home decked out from top to bottom for Halloween, and are known for this in the neighborhood when Trick or Treat time rolls around. It is one of our favorite times of the year. This fall, however, we plan to have our house on the market during Halloween. Can we still decorate our house and yard and maintain our tradition?
Answer: My suggestion would be to downplay the decorations for any holiday, but especially at Halloween. For many people, it is considered a Pagan or even demonic celebration, and it offends their religious values, just as an overabundance of religious symbols can offend others not of that faith.
I ran into clients in the grocery store just before Halloween, and their kids were in the cart with them. I asked rather innocently, "Are you kids getting ready for Halloween?" I was informed that they certainly were not, and they didn't believe in celebrating that event. That was the first time I had ever heard that people were opposed to Halloween, rather than being neutral or indifferent.
If sellers understand that having seasonal or religious decorations may limit or offend some buyers—and that some may reject or not even view their home simply because of the décor—they can weigh the risk of adhering to their holiday traditions versus minimizing or eliminating such decorations. Although Halloween has become a key event from a retail viewpoint, following the trend might cost you the sale to an otherwise ready, willing, and able buyer.
Kaye Hirt Eggleston
Carpenter, REALTORS®
Question: My wife and I are moving up from our starter condo to a larger home. We have found an updated home in an older neighborhood that we love, as well as a newer home in a more modern neighborhood with a better school system. The home in the older neighborhood has almost everything I want, lots of character and is much larger, but which makes the most sense as an investment?
Answer: You are wise to consider the investment potential before making any real estate purchase, including your primary residence. For most families, the personal residence is their biggest single investment. From your question, it sounds as though you have found two good homes to pick from, meaning you have two great possibilities, and one hard choice.
There is no clear-cut answer. This is the age-old dilemma of new verses used, and classic verses modern. You will find supporters behind every decision you could make. Your goal should be to determine which home meets the most of your own criteria and ultimately, which home best suits your needs.
You will want to analyze each property independently, and then compare them to see how they measure up to each other. It is important to try to understand what a property is worth on the current market and what it could be worth when it comes time to sell. A well-researched Comparative Market Analysis (CMA) prepared by your REALTOR® will help you to evaluate the purchase and to structure the best price and terms for submission of your offer.
Among the items to consider as you begin your long-range investment strategy is time. You should consider the length of your anticipated holding time—that is, how long you intend to own the property, and what might change to lengthen or shorten the estimated duration. Obviously, it is better to sell at your optimum time verses an emergency or necessary time.
Consider overall expense, too. What will it cost to acquire each property today, and do either of them need serious updating, or replacement of key systems or equipment? Try to assess the value and quality of the components in place, or used in the construction of the home, and how well each is performing at this time. Then based on your agent's report, try to determine if the home's current value will support any needed additional investment.
Consider how each home fits your current finances and family size, then think into the future and try to project any changes to either. Consider the layout and design, and your ability to use each property as it now exists, without incurring the expense of redesign or retrofit.
When looking at school systems, take time to examine what information and what data that was used to determine what schools are "good." School systems can impact the marketability of a property, but it's important to realize that demand trends and opinions will change over time, as well. Often, you will find that many who aren't directly involved in the schools, or don't have school age children, might not have current facts. There have been many exciting changes in the way the schools systems perform in the past few years, providing many new options available to parents with students.
Do your homework, consider all data, and pick the house that feels most like home to you.
Dee A. Young
NEW DAY, the real estate company
Question: Where can I get information about the asking price of properties that have sold during the last six months? I have found information on the selling prices, and would like to compare them to the asking prices. Can this information help me get ready to sell my home?
Answer: Checking the listing price as well as the sale price of similar properties is one of many things you should do prior to listing your house for sale. Ask your REALTOR® for a Comparative Market Analysis (CMA) of your house. REALTORS® who are members of the Broker Listing Cooperative™ (BLC™) listing service have ready access to complete pricing information about recent sales, and also have the experience and expertise to interpret the data to ensure that you are getting a meaningful analysis. Price alone, while important, is only part of the picture.
A complete CMA should include a detailed look at houses that are comparable to yours that have sold during the past six to 12 months. It may also include those comparable houses that are actively on the market (providing competition for your house), and houses similar to yours that have failed to sell.
Pricing houses is not an exact process, and involves looking at similar houses, or comps, to see what buyers have been willing to pay for houses similar to yours. Houses in the Indianapolis metropolitan area generally sell for about 97 percent of the asking price, but that percentage can vary widely from neighborhood to neighborhood. Your home's location and condition are extremely important factors in determining the pricing for your house. An experienced REALTOR® will analyze the sales data from your house's comps, and can guide you toward setting a realistic list price, enabling your house to sell at its true market value within a reasonable period of time.
In addition to pricing, your REALTOR® can give you lots of guidance in preparing your house to be shown. REALTORS® are in and out of many houses with buyers and have a keen understanding of what buyers are looking for. Your house is probably your biggest investment, and you want to make sure that you receive the greatest return when you sell it.
Most of today's buyers want a house that is in first-rate condition, ready to move into without having to do a lot of work. (However, there are always buyers looking for a house that needs a lot of work, too.) Your REALTOR® can help you decide if your house might need some work, such as fresh paint or carpet replacement, to improve its appeal to buyers. A little work on your part prior to putting your house on the market will go a long way to improve your chances of securing a buyer in the shortest period of time.
In short, you want to work with an experienced REALTOR® who can help you price your house, help you understand current market conditions, and who can work with you to prepare your home and make the best possible impression on qualified potential buyers.
Dave Goff
Carpenter, REALTORS®
Question: We are planning to sell our home, but there are a few things I love that I want to take with us to our new home—namely, the light fixtures in our bathrooms and the hanging lamp in the kitchen. I also have brushed nickel wall plates and outlet covers that I think should go with us. How can I make it clear to prospective buyers that those items don't go with the house? I think it will show better with them up, and I really don't want to pay to replace them, if we can avoid it.
Answer: This is an interesting dilemma, and one that comes up often. Most families do customize their homes, adding many special touches that are purchased over the years. This is how we personalize our houses, turning them into our homes.
You can create a problem by leaving your special items in place for the public to see as they tour your home. People always want what they can't have. If they see it, they'll want it. Typically, a buyer will want everything that is installed in the home at the time they walk through it. If you think the brushed nickel wall plates and outlet covers are a big improvement, chances are the buyer will, too. If the light fixtures are especially attractive, you'll be asking the buyers to imagine what the room might look like without them. Unless you are working with an irreplaceable family heirloom or sentimental gift, consider carefully before deciding you must move it with you.
I have seen sellers make tags and signs to mark items to be removed, but this is not often successful. The more attention you draw to an item, the more you can increase the desire for the item. This can also backfire, because the buyers will often expect the replacement item to be of the same quality or better. The perception could be that by removing these items, you are removing value. If you remove value, you should adjust the price down to compensate for value loss. You could be much better off if you simply remove the temptation to create an issue over decorator details.
I understand that you don't relish the idea of buying the replacement items. But since you want to take them with you, the reality is that you'll pay the price for replacements sooner or later—why not solve the problem before it becomes an issue?
I recommend that you purchase and install your replacements before the buyer prospects start to tour. By handling this in advance, you can shop and find suitable, affordable replacements on your own terms. You might find good bargains in a clearance department that could be very workable.
Another approach is to consider buying the new set for your new house. This way you would be able to move your new light fixtures, fresh in their boxes and complete with new warranties, to your new home. Ask yourself—why would you want to use your own recycled, used items when you could have the new ones? While shopping, you might find new exciting styles and colors that you'll like even more. Also, it is possible that what you initially intended to reuse might not actually work in the new place for very practical reasons. As an example, you might not have enough matching outlet/switch covers for the new rooms, and discover that extras are unavailable. Styles and designs of decorator finish goods are fashion-driven and discontinued and reinvented rapidly.
Good luck!
Dee A. Young
NEW DAY, the real estate company
Question: We spent a lot of time personalizing our home—especially our kids' bedrooms and the large common area upstairs that we used as a game room. We decoupaged an underwater ocean scene on one wall of my son's room, and have a colorful beach mural with sailboats covering one wall of the game room. We have loved them and guests have always raved about these unique touches. But we are thinking of selling in the next year or so, and I am starting to wonder if they will attract buyers, or turn people off. What are your thoughts?
Answer: Murals and other permanent art in a home almost need to be considered on a case-by-case basis when it comes to resale. I think a lot depends on the quality of the mural. Something simple—such as a border design, a rope mural, grapevines, etc.—rarely are cause for any concern. Bigger murals like those you described are another story. If it fits the whole mood of the room, that is great. Some buyers may be attracted to the uniqueness of your home. However, if they don't like the feel of the room, they might want it painted.
Even if they don't like the mural, it may not be a deterrent to sale at all if potential buyers like the rest of the home. Many buyers expect to redecorate and put their own touch on a home. When I counsel my selling clients, we say to strive to achieve a "Pottery Barn" look. For the average home on the market, it is kind of a standard now to allow red, mustard and other bold paint tones, as long as the rest of the decor fits that room's mood. Neutralizing everything to white or eggshell isn't necessary anymore.
If your decorating carries the mural though the rest of the room, buyers probably won't turn up their nose. I just sold a home that had a very sweet, gender-neutral garden mural in a child's room, and it was not a deterrent at all. You may limit the type of buyers that are interested in your home (i.e. those with children), but it shouldn't stop your home from selling.
Kaye Hirt-Eggleston
Carpenter REALTORS®
Question: We are preparing our home for sale. What are the pros and cons of "for sale by owner" home sales? —Suzanne and David McCarty, Greenwood, IN
Answer: Every year a certain percentage of home sellers attempt to sell their homes by themselves, without the assistance of a real estate professional. Some are successful, but most give up and list their homes with a REALTOR®.
A homeowner who wants to sell his own home can be successful under some circumstances, such as the right home in the right neighborhood in a "seller's market." But selling by owner is not as easy as you might think—remember, Indiana requires that a real estate professional be licensed, following an intensive period of study in an approved real estate school and successfully passing the licensing examination. Continuing education is also required of REALTORS® to keep their licenses.
The advantages of selling by owner? The primary advantage is saving the real estate professional's fee. But do you really save that fee? Many buyers who approach a home for sale by owner, or FSBO, are looking for a bargain, hoping that the commission that the seller is saving can be deducted from the sale price. The seller is trying to save the commission and generate a greater return, and the buyer is hoping to save the commission and pay less.
The negatives of selling by owner are many. A REALTOR® brings many things to the table when listing a house. One of the key advantages of listing your house with a REALTOR® is inclusion in the BLC™ listing service —the kind of exposure for a house that a FSBO cannot get on its own. And with the use of the REALTOR's® lockbox system, a REALTOR® may show your home when no one is home, increasing the hours during which a potential buyer may see your home.
Safety and security should be major concerns for a home seller. As a FSBO, do you know whom you are letting into your home? Is the person ringing your doorbell really an interested buyer or does he have other intentions?
As a FSBO, how do you know that a prospective buyer is qualified to buy your home? REALTORS'® clients are much more likely to have been pre-approved by a mortgage lender, so your time is not being wasted by an unqualified buyer.
As a FSBO, how will you get the necessary forms to sell your home? How will you even know what the necessary forms are? Who will order the title work and set up the closing? Are you a skilled negotiator who can approach the negotiations unemotionally? REALTORS® provide objectivity and concern. Have you said something to the prospective buyer that you shouldn't have said?
A real estate transaction is complicated. It involves multiple forms (purchase agreement, disclosures, inspection reports, mortgage documents, insurance documents, deeds, and more). A knowledgeable guide through the complexity can help you avoid delays or costly mistakes. Having an objective third party helps keep you focused on both the business and emotional issues most important to you.
Dave Goff
Carpenter, REALTORS®
Question: Is there a big difference in the length of time it takes to sell a home if you list in the winter rather than the peak summer season? We have our home ready to show now, but we can't decide if it makes more sense to wait until there are more buyers in the market. We don't have any rush to move.
Answer: Do you want the fastest sale or the highest sale price or the least inconvenience? Understanding your motivation for selling your home may help you determine "the best time."
Here are recent statistics collected by the Metropolitan Indianapolis Board of REALTORS® (MIBOR):
| Jan 05 | Jun 05 | |
| New listings | 4,642 | 5,955 |
| % Active at month end | 90 | 87 |
| % Pended at month end | 7 | 10 |
| # Pended at month end | 328 | 586 |
| % Sold at month end | 1 | 1 |
| # Sold at month end | 43 | 80 |
The numbers show that a large number of properties came on the market in January, but almost 6,000 (28 percent more) homes were listed in June. The number of homes that pended and closed during the same month listed is statistically similar for "winter" listings and "summer" listings.
Properties that are listed in January on average generate a sale price of 94 - 95 percent of the list price. Houses listed in June will average a sale price of 97 percent or more of the list price. Before you say, "Okay, June it is!" remember that your particular situation may be unique. For example, if you "don't have any rush to move," you will have a stronger negotiating position with the fewer, but more highly motivated buyers who must buy in the winter. Or, if your home is very similar to many of the homes on the market in June, will it get lost in inventory?
If your home is ready to show, priced properly and marketed aggressively, it will sell at a good price and in a reasonable timeframe. Remember to explore your own motivation for selling and choose a listing period that works best for you.
Roger Howard
1st Home Realty
Question: We have been using a REALTOR® to try to sell our home. However, we have friends moving back to Indy from out of state that would like to purchase our home directly from us. Since we found buyers on our own, how does this work?
Answer: I would caution most homeowners against representing themselves—it can be very costly to handle your own sale. A REALTOR® protects the interests of their client. Agents know the procedures and laws of real estate, and have learned how to handle transactions. The real estate experience can be very emotional and difficult. It deserves the attention of a professional. The answer to your question depends on the language in the listing contract. Most Indiana listings are "Exclusive Right to Sell"—no matter who sells the listing, your REALTOR® is entitled to a commission. An exclusion can be negotiated beforehand in the listing contract if the seller suspects they have a buyer. This exclusion is usually specific to a particular buyer, and clearly states what the commission will be if that buyer purchases the home.
In the absence of an exclusion, it is sometimes possible to renegotiate with your agent. Personally, if my seller came to me with a ready, willing, and able buyer for their home, I would be likely to work out a reduced commission for that sale, depending on how much representation the buyer needs.
And remember, most REALTORS® are paid on commission only. By the time you found your own buyer, your REALTOR® had probably begun marketing your home and invested much time and money in the effort—so some compensation is probably appropriate.
Lori Choate
RE/MAX Connection
Question: We are selling our home, and have a signed purchase agreement with a buyer that hinges on a delayed closing in May. We plan to move out of state, and took a few days over the holidays to house hunt in our new town. We just wanted to get an idea of the neighborhoods, but unfortunately, we fell in love with a vacant home that has been on the market for over six months already. We can't afford two mortgages. Are there any options that would allow us to get the house in May when we move—like another delayed closing—or should we just wait it out and hope it doesn't sell?
Answer: Congratulations on finding a buyer! This is a most important step when you have a house to sell. Finding and buying a new home, while still tied to an existing home, is a dilemma faced annually by thousands of Hoosier families. It's hard to plan your own move when you don't know how long you'll be on the market. Without a confirmed legitimate buyer in hand, most sellers don't know how to accurately estimate their selling expenses and their net proceeds. Most families have the majority of their nest egg tied up in their current home, and most folks need to sell before they are able to buy, which makes it hard to plan the move forward.
Since you have already selected your next house, and you have your buyer, you now need to negotiate the new home purchase agreement. I would not recommend waiting to make your offer, as the house could sell out from under you. You also now know from first hand experience that sometimes sellers do consider offers with time-delay elements. The fact that the home has been on the market for a while can work in your favor.
The new purchase offer can be written with a closing in May, tied to a set number of days after the first closing. You can also request immediate possession, since you know the home is already vacant, and this should help you with your move from the first home. You'll want to include a provision that the closing of the new house is subject to the closing of the sale of your current home. This will help to protect you from the possibility of owning two homes simultaneously, in case something goes wrong with your buyer's financing.
Having both the selling and buying ends tied up in contracts will permit you to better control the entire process, including the timing of your move. Knowing where you're moving and what costs you have in your purchase makes it easier for you to determine what furnishings, appliances and equipment you'll take with you and what can be left behind, and will give you a good idea of your closing expenses.
Dee A. Young
NEW DAY, the real estate company
Question: I need to buy a house with a good resale value. How do I determine if the house will increase in value in the next five years so that we can upgrade at that time? I can buy a smaller house in a great location, or get twice as much house in an okay location. Which is the wiser decision?
Answer: Unfortunately, I don't know any REALTOR® with a crystal ball to predict the future. However, a REALTOR® can provide you with comparable sales for neighborhoods you have an interest in. These past sales can show you how homes in the areas that appeal to you have changed in value to the current date. You should then look to area conditions that might affect future value, such as the installation of municipal sewers and water, enlarging nearby streets, anticipated changes in zoning, or new schools in the area. Ask your REALTOR® to identify situations that might affect future sale prices, but be aware that no one can anticipate all future occurrences.
It has long been believed that the three most important features of any home are "location, location, location". But it is still important that your home is large enough to live in comfortably for five years. Are you anticipating a change in marital status, the addition of family members—children or parents—or an employment change that might necessitate a home office or workspace? When past clients call me to list their present homes for sale, they often tell me that the only mistake they made in buying their current home was that they "did not buy enough house". Other than that, it's my recommendation that you buy a home in a location that will benefit your family and your lifestyle. Resale value is not the only factor to consider when buying a home. It would be unfortunate to have to make do with a less than ideal home for five years when there are so many wonderful neighborhoods in central Indiana. Call a REALTOR® to help you identify those areas.
Jan Endes
RE/MAX Legends REALTORS®
Question: Is there a percentage a seller will mark up the price of a home? For example, if the asking price is $114,000, is an initial offer of $95,000 too low?
Answer: Every situation is different. Sometimes a seller is convinced a buyer will try to give him a low offer, so he does build in a little "wiggle room." However, you can't assume all sellers are alike. Some of my sellers ask me to provide a market analysis to determine average home price, and they expect to get that price for their home when it sells. A buyer should also be represented by a REALTOR® who will do a market analysis of the home they are wanting to buy and determine if the home is priced close to what it should be. Then, the buyer will make an offer of what he is willing to pay without feeling like he is giving too much for the property. A buyer does not always know if another offer is going to come in while he is negotiating an offer, so he should go close to the price he is comfortable giving. That way, if another, more attractive offer comes in, he won't be sorry that he didn't offer more. If the property is priced right, chances are other people are looking at it also. You don't want to get caught in offers and counteroffers, and lose sight of what you wanted in the beginning. In doing this, you also take the chance of insulting the seller and creating a situation where he won't want to work with you. Sometimes that alone can incite a seller to accept another offer over yours.
Anne Elsbury
Century 21 Realty Group Elsbury
Question: "I am selling my home, and have multiple animals—four cats and a dog. Do I need to have them caged during showings? Should they be kenneled and not there at all? They are well-behaved and normally have the run of the house."
Answer: If you have your house on the market, it is best to take your pets with you for a ride while the home is being shown. Some people are very afraid or allergic to pets, and as long as the house doesn't have an animal smell, it will keep that from being an issue and they will judge the home for the home it is.
If you work and can't take the animals out, they should be caged to allow the buyer the freedom to look without distraction. It is very important to not have an animal smell—most people can detect this odor as soon as they enter the home. If there is odor in the carpet, the carpet should be replaced and the floor deodorized before new carpet is put down. Litter boxes should be kept clean. There are a few people who actually ask if a cat or dog have been in the house before they will even make an appointment —just as some potential buyers will ask if the owners smoke in the home. It is very rare, but I have had the experience. People love their animals, but it does cost the pet-owning sellers occasionally.
Anne Elsbury
Century 21 Realty Group Elsbury
Question: I am putting my home on the market this fall, but plan to spend the winter in Florida. We are leaving immediately after Christmas. Can I still sell my home if I am not around? If so, what will I need to do differently?
Answer: Yes, you can sell your home while in Florida, but there are a few things to set up before leaving. Contact your REALTOR® to determine how offers and correspondence will be handled. Do you want to attend the closing? Or do you have a family member, attorney, or someone else who can manage the closing paperwork through power of attorney? In Florida, will you have a fax machine or e-mail access to communicate offers and status changes on the property?
Your REALTOR® can arrange all the details for you. They can even have the closing package sent to you in advance, allowing you to sign your own papers. They will have to be notarized during signing, but most of the time a title or real estate company in your area can assist with the paperwork and notarization needed for a remote closing.
There also should be a discussion about repairs and maintenance of the home in your absence. Many real estate companies have property management divisions that can handle any necessary repairs and maintenance, or your REALTOR® can oversee those tasks at your request. You can also designate a family member in the area to be in charge of those items, and instruct your REALTOR® to contact that person in your absence. With a little planning and preparation in advance, you can go enjoy the sunshine and have your REALTOR® handle the details back at home.
Kathy Hall
Century 21 Realty Group Elsbury
Question: If I make an offer on a house and the owner comes back with a counter offer and we agree to it, can the owner still change his mind and sell to someone else?
Answer: When you have an offer or a counter offer, it is important to get signatures. Once a counter offer has been accepted—meaning that it is signed and the buyers have received a copy of the accepted counter offer—than the home is sold. If another offer comes in, the seller can accept it as a back-up offer, but can't remove the first buyer's right to purchase the home under the terms agreed to. It is also important that earnest money accompany the acceptance. If the earnest money is to be delivered later, then it should be in the contract.
A purchase agreement is a contract between the buyer and the seller. All Indiana contract laws are enforceable, so it is very important that the terms of the agreement are understood by both parties, and that they are all followed through.
John T. Creamer
Century 21 At the Crossing
Question: "Is there a best time of year to put my house on the market?"
Answer: Spring or early summer has traditionally been the time for buying a first home or selling current property and moving into a larger home. There are many benefits to a spring or summer move, including favorable weather. The mere thought of lugging boxes of personal possessions through the January snow is enough to cause anyone to opt for a spring move! Furthermore, for many parents of school age children, a move has calendar ramifications. Most people want a return to normalcy when school starts, so moving and being settled by late July is a must. To accomplish this, many purchasing decisions must be made by spring.
Aside from personal reasons, there are also some good market reasons to sell your home in the spring. Curb appeal, one of the most important factors in selling a home, is usually at its highest in the spring. Green grass, blooming flowers, and beautiful trees all help in the appearance of your home. Make sure any seasonal decorations are taken down and stored. Santa doesn't come in June, and you don't want a potential buyer to think your furnace has been neglected like the plastic light-up Rudolph lying next to the garage.
Simply put, with so many people wanting to move in the spring or early summer, you'll likely have the highest number of potential buyers for your home at that time of year.
However, other seasons have their benefits as well. Since late last fall, interest rates have been at a historical low. Many people who may have not considered a winter move did just that this past year to take advantage of the low interest rates. At the same time, sellers who put their homes on the market last winter enjoyed less competition. The total number of homes on the market in a winter season is traditionally lower than at any point in the year. That means fewer choices for buyers and better opportunities for sellers. While exterior curb appeal may be less in the winter than the spring, the interior of your home can shine in winter. Holiday decorations inside your home can add a special element of charm and character. I've always believed that a sense of smell in a home is also important. During the holidays, the smell of certain foods, candles, or a fresh pine tree can go a long way toward making a potential buyer feel at home.
In the end, making a decision about when to put your home on the market comes down to a combination of factors. The economy, interest rates, personal circumstances and having the right place to move to are all a part of that decision. Being aware of how each of these factors impacts the money you'll net in the sale of your home can help you realize the best return on your property.
Greg Cooper
Century 21 Realty Group 1
Question: Will I still have good resale value if I purchase a manufactured home?
Answer: I, personally, have never sold a manufactured home, but module homes—homes manufactured off-site and placed on a lot—are growing in popularity.
Older manufactured homes were usually placed on someone else's property, so the structure's resale value was never very good.
Today's modular homes are quite different than manufactured homes of the past. Unlike their predecessors, they sit on their own lot, are of good quality, and are not mobile.
Modular homes are manufactured off-site in a factory. It is more cost-effective to simply assemble the kitchen, put the bath in place and build a structure that can be placed on a basement. In some cases, the home's exterior will even be bricked. The result is usually great quality at a more-affordable price. These homes are a win-win situation for developers, builders, consumers, and the community.
The resale value of a mobile manufactured home will depend on its condition and where it can be relocated. In communities with few mobile parks and waiting lists for vacant pads, a manufactured home may have very little resale value.
But remember, the term "manufactured home" is changing. If you are looking for appreciation, the land a modular home sits on may make all the difference in future values.
John T. Creamer
Century 21 At The Crossing
Question: I'm selling the first home I ever bought and need to know what to expect from the REALTOR® who will sell my home for me. What type of contract will I be asked to sign?
Answer: All REALTORS® who will potentially work for you as a listing agent have different services and styles—there is no one set method here in central Indiana, or across the country. Generally speaking, you should interview several REALTORS® to get a feel for their approach to marketing your home, the length of time they have been in the business and their familiarity with the market.
A contract between you and the listing agent will ultimately be part of the transaction. A listing contract details all the basic information of a property sale, including the seller's name, where the property is located, asking price, length of the listing contract, desired time from purchase to possession by the new owner, what items will stay with the property and which items are excluded from the sale. There may be other details included in the contract as well, but these are the basic parameters you should expect to see.
More important than providing a basic outline, however, the listing contract also helps clarify the REALTOR'S® role in the home's sale, and specifies tasks the seller will need to perform to facilitate the showing and ultimate sale of the home. Although this is the general goal of all listing contracts, factors such as term length, responsibilities of the seller and agent and other details can vary greatly from contract to contract.
Many sellers are most interested in the length of the listing period—this will vary and should be negotiated between you and your REALTOR®. The agreed upon length of contract should be reasonable in allowing the listing agent the time needed to sell the property, and warrant the time and monetary investments an agent makes to market the home. Make certain your listing contract includes a date for the contract to start and a date when the contract will end.
Lana Detro
Ala Carte Realty
