Is The Juice Worth The Squeeze???

When it comes time to plan the sale of your house most people heavily factor in their personal opinions about what they might like when buying a home. The problem is you are not buying your home…

Others have strong beliefs about the right and wrong way to sell a house and they let those thoughts dictate their decisions.

The average American owns 3 houses in their lifetime so therefore they sell two…
Do we paint?
If we do what color, neutral beige?
How about the kitchen?
Who would we even hire?
Should we redo the carpets and if so what color?
What if the buyer hates it?
How much would all that cost?
Would we get the money back if we spend all that?
What if we do all this work and the buyer plans on making it “their own” and changes everything?
If we choose to save this money won’t it be more money in our pocket?

There is a LOT to consider and the way you manage those decisions will determine the profit margins and potentially even whether or not it will sell (not every house sells even in this market!)

When Listing For Sale Is The Juice Worth The Squeeze?
There is obviously a LOT to consider and in the balance is tens of thousands of dollars – Choose wisely my friend ; )

Inflation & Interest Rates Are Up!!

Hey, it’s Chicken Little here! Just kidding! The sky is not falling but it is more expensive! Inflation is up over 7% and rates are going up as we speak.

What Does This Mean:
-For the real estate market?
-Your ability to buy a house?
-The economy?
Also:
-Are we in a bubble?
-How much higher will rates go in 2022?
-Is the market going to crash like in 2007?

Interest Rate Hike! Market Update February 2022
I can’t help but hear the Country Boy Can Survive! song in my head when I write this email haha. It is going to be alright for now so don’t panic.

That does not mean everyone has the same experience when it comes time to buy and sell though. Even in this market, about 30% of houses that list for sale don’t sell the first time. It DOES matter who you hire…

What To Do, Or Not Do,
That Is The Question…

One of the most frustrating aspects of a home sale is deciding what to do (if anything) to prepare.

If there is one thing I specialize in, one thing that separates me from all the other agents, and one thing that gets my clients the most money, it’s this process…

What Are The Best Upgrades When Fixing Up Your House For Sale?

This will be a long email but if you ever wanted to know if there is a secret sauce that gets some home sellers loads of cash and others wishing they had some, there is and it has to do with how you make people feel.

“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” ~Maya Angelou

This quote is about how you treat people but it very much applies when selling your house.
Here is the thing people miss – The average American sells 2 houses in their lifetime and maybe you watched a few TV shows or watched their sister-in-law sell their house and now you feel like “Hey this is easy, I can do this! It will be fun” Not so fast…

The thing is, buyers are looking for different things in different price ranges, the buyer is likely in a different age bracket, and buyers prioritize different aspects of a house vs a homeowner and especially you as a home seller.

Sellers say things like:
#1. “People need to understand, my house has great bones!” This is someone who is often defensive about their house’s lack of upgrades.

#2. “I don’t need to sell my house!!!” Okay but you called me over here to help you sell it lol. Again this is a person who is perhaps defensive about feeling pressured to take less money or make repairs/upgrades that they don’t want to do. My process will help ease the anxiety of not knowing your cost/profit ratio and upfront equity.

#3. “I am NOT going to spend a bunch of money on cosmetic crap only to have the buyer rip it all out!” First of all that won’t happen, unless your selling +800k most buyers do not walk into a home with the intention of removing all the flooring, paint, kitchen, bathrooms etc. Buyers move in tired and broke, the last thing they want to do is fix up a house while they are living in it…

You are likely moving somewhere right? You don’t want to fix up your house to sell but do how do you feel having to fix it up your new home before you move in?

Especially if you are not from the area and don’t know anyone who can do the work. Many homebuyers in MD are out of state Govt or Military who are moving here from far away.

#4. “I fixed the roof and replaced the furnace, the buyer can do all that painting and frufru stuff to their taste.” Having a new roof/HVAC/hot water heater/insulation/windows is nice but compared to a new kitchen, paint, and all the light fixtures and faucets replaced …think about how does your house make them feel when they walkthrough!

How a buyer feels in your house will determine how much money they offer and that’s the bottom line__________ like it or not
So let’s look at a few before and after photos of our listings we have sold. As you look closely, imagine this is your new home and how you would feel if you were standing in each room during your first time seeing your new home.

At the end of the day, this all comes down to as my previous client recently put it “the juice just has to be worth the squeeze.” I couldn’t agree more!

So without making this into a novel, let’s quickly summarize what I will do that will solve this conundrum. First, we need to have a long talk about your goals, budget, timeline, questions, and expectations.

Assuming I answered all your questions and you feel like the process I layout is the best to get your home sold for the most money, we sign an agreement that allows me to advise you on all the ways we can get you the most money.

btw you can watch a summary of our entire process here — https://youtu.be/UuwEUvE074I

Next I will send over my home staging consultant who will go through every room with you and show you how to rearrange, de-clutter, and stage your house. She will help you decide colors, what to pack, and what things you could and should do in order to get it in tip top shape for the likely home buyers in your market. Faucets, light fixtures, flooring types, landscaping ideas and whether or not the coffee table makes the room look too small.

Let’s face it I can get you 89% of the way there but I feel its better to hire a professional to tell you the 11% of stuff that I don’t know.

psst also here is a little secret – I don’t have to be the one who tells you that your curtains are ugly haha!!! Just kidding I have no idea what curtains are supposed to look like.

Next, we sit down and match up your budget and timeline with what items are going to get you the most juice for the least squeeze ; ) I have lots of contractors who will do the work at a small fraction of what most contractors charge and can get it done quickly.

After the house is ready, we give it a once over and review any last-minute items that need addressing, then …it’s SHOWTIME BABY!!!!

PS I would love the opportunity to help a friend, family or co-worker of yours. I promise to take excellent care of them! Just shoot me their number 443-624-9398 and I will reach out and make sure to let them know you send me.

PSS If you are considering a move in the next 18 months, the best time is now to get a free evaluation on what you can start working on to get your house ready. Just hit reply and I will reach out asap. I will also let you know how much money you are likely to walk away with!

How To Fix A Home To Max Profit On The Cheap…

What would be a strategy for buying a home if you only planned on living there for a very short amount of time? This scenario comes up a lot of times with military families that have orders for two years that may or may not extend past two years. Often the question becomes, do we rent or do we buy?

Well… when you go to sell your house, it will cost you about 10% There are Realtor fees, buyer’s closing costs, transfer taxes, + miscellaneous fees. Those are not required fees per se, but that’s just on average would it cost to sell your house in Maryland in 2019.

So the day you buy your house, you have to basically overcome a 10% deficit (if you use a VA loan it could be 13.3%) The national average of a 20 year over year home price increase is 2.5% so you could say after two years you’ve overcome 5%. How do you overcome the other 5%?

Payments? No, on a 300k loan after 2 years you have paid down about $11,250 just shy of 3%

So when you’re buying a house, what are you ging look for? You want to look for a home that is got a great layout and has a lot of appeal but there are some cosmetic things in the home that makes the desirability and the “perceived value” not the appraised value lower (it’s dated and ugly…)

For instance, it might have laminate countertops, mismatched appliances, ugly carpet, wallpaper, strong paint colors, old fixtures etc.

In those situations, typically you can come in and do minimal cosmetic work and get a huge return on your investment!

Let’s talk about a few things that you would probably want to avoid. This would typically include big-ticket items like needing a new septic, well, roof, replacing all the windows, or replacing all the siding… If you replace those things with new, you’re not going to get you your money back most of the time.

So the things that you can gain the most value with the shortest amount of effort or the least amount of money would be cosmetic upgrades starting in the kitchen. The number one thing would be granite countertops. The next thing that you want to do is appliances and not necessarily go buy brand new appliances, just get used appliances. The hot new thing in flooring is laminated vinyl planking, it’s waterproof, it’s easy to put down, it’s click-and-lock so most homeowners (even me 😁) can do it.

A few more real quick:
Sheet vinyl in the bathrooms, replacing faucets, door handles, light fixtures, ceiling fans, and of course lots of painting.

If you are looking for some advice on how to get your home fixed up for sale, get in touch with us and we would be happy to help you make some $$$ when deciding how to fix up your home even if you’re not selling for a long time…

According to statistics, home buyers believe that repairs and upgrades cost on average 6X times what they actually cost. That’s on average, some are going to be more and some are going to be less. Don’t let the X6 factor or the 6X effect cost you a bunch of money when you’re selling your house.

This flooring only costs $1.50 a square foot and for $250 it went from that cruddy looking vanilla looking floor to this really nice waterproof vinyl modern looking floor that has a wow factor to it.

Now when you walk into that bathroom, you think to yourself wow this is a really nice floor! Compared to, ah, now I’m going to have to replace that floor. Not only do buyers multiply the cost of the repair by six, let’s just be honest guys, a lot of people don’t have the money regardless of what it costs.

They’re going to be bringing their friends and family into this house that they’re buying and they’re going to be showing it off. If you have a really cruddy looking floor, old dirty carpet that needs updating, or a paint color that is really strong and it’s got a cringe factor to it…. I don’t think that’s a factor of six. I would say it’s a factor of 10 or 20! A lot of small cosmetic upgrades can make you a lot of money or lose you a lot of money when it comes time to sell your house.

People love to brag about the things they buy and when it comes to buying a house, people love to make their friends and family jealous. Understanding psychology is key to selling your house for the most money. Many times home sellers are thinking of things very pragmatically. Wanting to focus on the practical benefits of a home like added insulation 2×6 walls, the decking material. I hear things like “the roof is really new and the HVAC is great.”

When it comes to buying a house it really comes down to what will make my sister jealous or my mom and dad proud of me. When you’re sitting down with your budget and you’re trying to figure out what things you’re going to do and what things you’re not going to do. If you are going to cut corners on every single little thing and you’re going to make everything, let’s just use this word vanilla, you’re going to get someone who feels vanilla about your house.

If you’re willing to spend some money on the things that get people really excited, you can overcome a lot of negatives that would otherwise draw in a low ball offer. So things like granite counter tops, stainless appliances, and let me just tell you really quick guys. I have a contractor who puts in granite counter tops in my client’s houses for an average of $2,000 and we recommend a used appliance store where you can get all stainless appliances for about $1,500.

For $3,500 if you could take the average kitchen and put in stainless appliances and granite counter tops, and now give it a wow factor, that is an exponential improvement. But the point that I want to make here, guys, is you have to be looking at this home sale strategically and understanding the psychology or what makes people make decisions is crucial to positioning yourself to get the most money.

I think I paid $22 for this tripod. If anything ever happens to it, I can just throw it away and buy another one because it’s only $22. The greatest thing about this tripod to me is not anything to do with the tripod, it’s the price. You don’t want the person buying your house to think the greatest thing about it is the price! Unless of course, you don’t care how much money you make selling your house.

Understanding the psychology of how people make decisions and the buying process is really important when it comes to selling your house. Now think about whenever you’re talking to your friends and they’re talking to you about something that they bought and they’re bragging about some feature or whatever. People love to talk about the things that they bought and why it’s better than what someone else has.

You want to give the buyer something to be excited about so that they’ll give you the most money. In my experience, most of the time women make the home buying decision and the things that are most important to them are the kitchens, the master bedroom, and then the overall decor. You don’t want anything that has a cringe factor in it.

One of the things that we do at The Mayer Group is we hire a home staging consultant to come to your house and tell you all the things that you could and should do to get your house ready to sell and also explain to you what things will help get a buyer excited in today’s market. What are Millennials looking for and what are the people that are most likely to buy your house looking for, and how can we use your budget in order to be able to identify those things and then maximize that potential?

Many times what the homeowner thinks buyers are looking for is often different than when buyers are actually looking for. We will help take your budget and use it in a different way to help maximize the profit.

Just because a house is the best house on the market doesn’t mean its a good deal or that you should buy it right now.

In order to properly evaluate a home purchase its important to see what sold in the past 12-24 months to see the likelihood of another even better deal coming on the market. Based on your timeframe it might make sense to wait for a better house/deal to come on the market.

Get a list of every house that sold in a price range with photos and detailed descriptions. Go through the list and determine how many houses that are equal or better came on the market and evaluate the house you are considering. Look at the days/market | original price/sold price | Closing help paid by the seller | and based on your data you can make an educated decision for or against the house you are looking at and considering.

It’s no secret that Americans do not save a lot of money. In fact, compared to the rest of the world we are near the bottom and it’s going down. Many people use their home as a way to force themselves to save money and for good reason…

You need a roof over your head and why not make some money while you are paying for it. I was talking to my mortgage lender and we were discussing the fact that many Americans do not adjust their withholdings to match their tax return and end up letting Uncle Sam hold their money until they get it back in the form of a tax return. I asked him to help me figure out on average what would happen if a person invested that money into their home and here is what we came up with.