Realtor

Three P's of Selling Your Home

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In a hot real estate market, like the Washington, DC area, there sometimes is the misconception that all you need to do to sell a house is put a sign in the yard and list it on the MLS. However, there is much more that goes into selling a home...and doing it for the maximum price possible in the current market. 

While there is a list of more than 100 things I do before listing a home for a client, I like to focus on the "Three Ps" when advising homeowners on what to expect in our initial consultation:

1. Preparation: Depending on the condition of your home, the market and your ability to invest in repairs and updates, there may be a short or long list of recommended items to tend to. Some will be absolutely necessary, like ensuring major systems are operational or that there is fresh, neutral paint throughout; while others may be advisable to increase your potential of top dollar, like updating features and fixtures in kitchens and bathrooms or staging your home.

Every property is different, and we'll talk through the reasoning behind each recommendation and why it may be a smart investment. Some projects may take a quick trip to Home Depot and a day of labor and others may require more planning and a professional. For this reason, you should consult with a real estate agent as soon as you know (or are fairly confident that) you will be selling. This allows Realtors like me to prepare a recommended plan and timeline, so you don't add undue stress to the homeselling process.

2. Pricing: At every initial consultation with a client, I will be prepared with a range of market insights, including relevant comparables (aka comps), so that I can make a recommendation on list price after seeing a client's home. That recommendation begins as a narrow range and where we land ultimately depends on the repairs and updates made, recent sales and available inventory at the time we list and other circumstances and requirements (e.g., you need a buyer who will allow you to rent back your home for 30-60 days). 

Pricing, ultimately, is a means to an end...maximizing your net after paying off your mortgage (if applicable) and other closing costs. The right price will get the greatest number of potential buyers in the door and, in some cases, you may get multiple offers that could escalate above list price; in other instances, you may find the market telling you that it thinks your home is priced too high -- either by a lack of offers or only offers that are effectively below list. The goal is to price right from the beginning leveraging data but to be prepared to make a swift changed if needed.

3. Promotion: Preparing your home with repairs & updates, as well as staging and pricing it correctly are the foundation, but promotion is key to ensuring that you reach the right audiences. Promotion spans dozens of activities, including:

  • Professional Photography
  • Signage & Flyers
  • Custom Websites, Tours & URLs
  • Email Marketing to Agents & Potential Buyers
  • Open Houses for Neighbors, Agents & Buyers
  • Social Media Content, Especially Graphics & Video
  • Buyer Incentives, Like Home Warranties

There is no one-size-fits-all when it comes to promotion, so having an agent versed in PR, marketing and social media strategy is a huge asset. Strategic promotion will try to maximize the reach, but be targeted toward those who have the greatest potential of bringing or being a buyer.

As you can see in this brief exploration, there are seemingly limitless considerations that can have clear consequences on how much your home sells for (and how quickly). Ultimately, you're behind the wheel...but let a trusted agent be your navigator and partner on the road to the closing table. 

 

Amber Harris is the owner of At Home DC and a licensed real estate agent with Keller Williams Capital Properties working with clients in DC, Maryland and Virginia. 

Avoiding First-Time Home Buyer Flubs

There's nothing more exciting than making the decision to go from tenant to homeowner, but buying your first home can be daunting (the number of legal documents and signatures required before you even go under contract can be maddening enough).

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At times we all fancy ourselves chefs, handy(wo)men and more thanks to technology, social media and a generous dose of can-do spirit, buying a home is a big decision and commitment. While a wealth of information and tools — from seemingly up-to-the minute listings arriving in your inbox to mortgage calculator apps — are a great start for the novice, this is one area where a dollar spent (specifically on a real estate agent), will net more than that in one or more ways.

It's true there are about as many tales about challenging first-time home buyers as there are about annoying agents, but I find working with first timers enjoyable and rewarding. For that reason, I thought I'd share a few myths I have had to debunk with clients if you are considering starting your search:

  • Pre-qualification or pre-approval...it doesn't matter which I choose. If you are looking to buy in the Washington, DC area, you will likely face stiff competition. One of my key roles as a Realtor is to help you make the most competitive offer, and financing is a big component of that (we include a copy of your pre-approval letter in your offer). Before you walk in the door, you should know that you have the ability to buy that property if it's "the one." Pre-approval is one step beyond pre-qualification and means your lender has done due diligence and is even more confident that it can handle your mortgage needs (giving the seller confidence that if they accept your offer the deal will close).
     
  • As long as I have the money in time for close, I'm set. With the high price of real estate in the area, often clients are relying on family loans or gifts to help them with closing costs. As a part of the pre-approval process, you will need to document the sources of your funds, and extra scrutiny is usually placed on funds that haven't already been in your bank accounts for at least a few months prior. This means it's wise to have the funds in place as soon as possible and to be prepared to provide a loan agreement, letter or other documentation (sometimes from the person lending or gifting the money) in order to have your loan underwritten.
     
  • Every renovation is created equal. In the local market, many buyers want properties that are new construction or that have been recently updated. While those white kitchens with quartz countertops look amazing in the photos, not all updates are created equal. Look at the quality of the finishes when you visit the property and for signs of cutting corners (which sometimes can also been indicative of shortcuts taken behind the fixtures and walls).
     
  • New is always better. While I caution first-time home buyers against biting off more than they can chew (financially, maintenance-wise, etc.), some buyers are open to renovations — from a fresh coat of paint to kitchen and bath updates. If you can look past outdated fixtures, you may get your hands on a great property that others have passed over. Whether you have the cash in hand or are considering a 203k loan, make sure to add a healthy buffer in terms of budget and time to your plans. 
     
  • It's only a starter home... When you buy a new home, you invest more than just the down payment at closing. For this reason, it usually is beneficial to own property for several years before selling. If you think you are going to stay in the area, you may want to expand your search to find a property that meets your anticipated future needs (or that could). For example, if you are thinking of starting a family, you may want to find a home that allows you to not just comfortably raise a baby but also a young child (and that takes into account their educational needs). If your budget does not allow you to buy as much house as you know you will want (with the features you want), look for properties that may need cosmetic updates you can do over time or that have a lot that would allow you to expand the house to add livable space. 

As I mentioned at the top of this post, technology, social media, a can-do spirit and even a blog post are not substitutes for a professional. If you are (or know someone) thinking about buying your/their first home, please reach out!

Amber Harris is the owner of At Home DC and a licensed real estate agent with Keller Williams Capital Properties working with clients in DC, Maryland and Virginia. 

When Perfect Isn't Available or Affordable

Perfection. While we all realize it's in the eye of the beholder and can be overrated, when you are looking for your new home, it's where we start. 

When I am meeting with a buyer, a good portion of our initial discussion involves their must-haves, needs, wants and nice-to-haves. While there are many reasons to hire a real estate agent to help with your home search and purchase, having a partner and consultant to regularly remind you of your motivations and musts is one of the top reasons.

In the DC metro area right now, we still are experiencing limited inventory (aka available houses), which means it is even harder than normal for most to find their perfect home. Given this, it's easy to get discouraged, especially when you find "the one," make an offer and lose out to another. But...that doesn't mean you should lose hope; rather, you should open your eyes to other possibilities.

In the past few days, I've talked to two buyers who have chosen/are looking at two alternative paths that often are ignored:

1. Buy & Renovate with a 203(k) Loan: While most people want to offer, close and move in as swiftly as possible, you can gain the edge and equity if you consider buying a property that needs some work to make it livable, to your taste or both. In today's "need it now" culture, finding that hidden gem means we might be able to negotiate a better purchase price and you'll get exactly what you want in the end. With lots of 203(k) loan options that allow you to access the cash you need to renovate (everything from a kitchen remodel to full gut job), if you can muster some patience, you can land that perfect home. (Check out Lauren Bowling's experience for more insight.)

2. Explore New Construction: If you have even more patience, you might want to consider designing and building your new home. While the DC area is much more densely populated than other areas of the country, there is available land (or land that can be made available by razing a poorly maintained/unsalvageable structure. Most home builders offer a range of plans that can be customized in countless ways to help you get just what you want - from layout to finishes. And, while a builder may tell you otherwise, you should make sure you have buyer representation with your own agent before heading into a sales office. (Learn more about the process from The Balance.)

In either scenario, a REALTOR® can help you consider all the options and direct you to qualified professionals to help you create your own brand of perfect. So, would you consider a rehab or new construction?

Amber Harris is the owner of At Home DC, an interior decorator and a licensed real estate agent with Keller Williams Capital Properties working with clients in DC, Maryland and Virginia.