My Home Isn't Selling: Now What?

Selling a home is stressful. It’s almost always a task that is met with at least some anxiety by homeowners, investors, and even realtors. Selling a home is a major upheaval that can disrupt daily life and is often emotional as well (as we discussed in last week's blog). When a home is put on the market, there is always hope that it will sell quickly, which is pretty common in today’s market. There have been listings that go under contract the day of listing or the weekend after listing, and on the flip side…months after listing. You just never know what buyers will see or not see in your particular home that will make them take the plunge and make an offer.

We know that is not necessarily comforting, but it is realistic. However, there are certainly things we can do to make your home as appealing as possible to as many buyers as possible. Go back and look through our many blog articles focused on staging, curb appeal, and valuable home updates for more advice than you might actually want regarding preparing your home for sale! Now, what if we do all of that and after listing, days, weeks, and even months go by without an offer? Then what? 

Our focus in this blog is sharing four strategies that have worked in some cases when something about the property just isn’t clicking with buyers. It’s so hard to take a step back and reevaluate a listing. Everyone involved puts a lot of time and energy into the preparation for the sale, and when it doesn’t happen as quickly as anticipated, frustration, doubt, and of course more anxiety can set in. Our advice is to stay positive and concentrate on what you can do to make a sale happen.

1. Offer a selling bonus to the agent who brings the buyer. This is a great motivator for agents who might have overlooked the property or showed other properties ahead of yours. Depending on the market, price of the home, and length of time for sale, determine a monetary amount you’re comfortable offering. Locally, we see bonus amounts from $1,000 - $5,000, and agents are always very willing to bring clients in to tour the homes for which the bonus is offered.
2. Price reduction. This strategy can be painful. We always try to price a home competitively and net the sellers as much as possible, but if a home is not getting offers, it might be priced too high for the current market. Agents typically ask for feedback on the listing from other agents who bring clients for a tour, so that is a great way to gauge whether the price is right for market conditions. Reducing the price could open the listing to more buyers and potentially bring buyers back who toured and considered the home previously. 
3. Offer an allowance for updates. This strategy is only effective for properties that are older or maybe a bit outdated. We have written many times about the plight of buyers who are unable to see beyond what the home looks like at first glance. If you know your home needs fresh paint, new flooring, new fixtures, etc., then offer an allowance instead of reducing the price. Allow the buyers to choose the contractor, make their own choices, and simply set a budget. This tactic could really help buyers see what the home “could be” with them as the owners.
4. Get creative with marketing. There are certain markets that showcase listings with an event or party. This idea can be risky and ineffective in a lot of places, but think about it. In big cities, it’s common to invite agents, investors, and certain clients to a cocktail party, dinner, or brunch at a listing. If you’ve ever watched Million Dollar Listing, you’ve probably seen the most extravagant events of this type. It’s basically a glamorous open house. A scaled-down version might be a nice broker’s open or marketed luncheon that serves as an open house by invitation or for the public. The point is to garner attention for this listing that is not selling for whatever reason. Do something different. Get new people in the home to increase the potential of a sale. Your ERA First Advantage agent can be a tremendous help if you consider this strategy.

We hope these ideas have both eased your mind and given some realistic options to try if you are struggling to sell a home. We’ve been there, so we understand how difficult this process can be. Again, we encourage you to do what you can to take action and see what happens in time. As always, feel free to drop us a line or comment on social media with questions or comments!

Photo credits: southernliving.com

When It Gets Real: The Emotional Side of Real Estate

We are taking a bit of a different approach to the blog in this post. Typically, we stick to informational posts about the process of a real estate transaction, home improvement, and financial matters. But this week we want to talk about the emotional and sentimental side of home ownership because it really can have an effect on all parties involved in the transaction.

Buying or selling a home truly is a milestone in life. Buying a first home is incredibly exciting and often a little scary. (Hello, 30 year mortgage commitment!)  Selling a home usually means we are moving on to a new chapter in life — upgrading, downsizing, relocating, family changes, etc. The reason we want to take time to chat a little about this aspect is because it can make the process difficult for many of us.  However, if we can change our perspective a bit, it will be helpful for all of us -- real estate professionals and our clients.

For buyers, our usual advice is to prioritize what you really need and understand that you’re probably not going to get everything you want if you need to stay within a budget. This was actually a hard lesson for your resident blogger to learn when my husband and I bought our home. My own “wish list” included many items that are not in our current home, nor in our budget at the time. Some of them have been added by us or we have created a version of what we wanted, but there are still things that I would change. However, I could not love our home more. In fact, the thought of selling our home (which we are doing, coincidentally)instantly makes me emotional. It’s our first home as a family.  When I think about all the memories associated with this house, none of them include the color of our kitchen cabinets or our lack of hardwood floors. Despite a few cosmetic “flaws,” I am incredibly attached to this house. — Please tell me some of you also feel that way about your home?

These feelings make it very difficult for many to make the leap to sell, and when they do, their emotions so color the issue that their asking price is astronomical and simply not realistic for the property. How many times in the past year or so have you heard agents and investors say “it’s a great time to sell.” In terms of our local market and the financial aspect, yes, it has most certainly been an excellent time to sell. There are so many ready buyers and a shortage of homes on the market.

 However, crunching numbers isn’t all that goes into making the decision to sell and move. The business side of the decision is the easy part! The difficulty begins when an offer is accepted and the reality of leaving a home sets in. Most of us have been through the moving process for one reason or another, so if you’re an agent, try to be sensitive to your clients’ feelings as they move on to the next chapter of their lives.

 As realtors, this is what we want to be able to say to our sellers when they get emotional:

I understand that you’ve celebrated birthdays, hosted holidays, and gathered for family dinners in your home. I understand you have spent countless hours painting rooms, mowing your yard and nurturing that flower bed to get it just right. I also understand that your home may be the place where you brought your kids home from the hospital after they were born.  I know that front porch is where you took their pictures on the first day of school. Your home has been so much more than those “wish list” items you checked off when you first bought it. I get it…truly....because I have been there too. Now, let’s give another family the opportunity to make some memories here too. Meanwhile, you get to move on to your own new adventure.

While being sensitive to our clients’ emotions, we also have to put our business hats on and remember that we must help them think logically and rationally about their homes because they are an investment — a major investment. As much as many of us tend to be sentimental, we also resolve to help my clients make smart financial moves so they can reach new milestones.

 As hard as it may be to leave a beloved house, it might be the best decision right now, in six months, or two years down the road. We hope you all can trust and confide in your ERA First Advantage realtor and know that he or she will act in both a sensitive and logical manner when the selling process begins. Here’s to taking on new adventures!

Ready to Refresh Your Nest?

For many of us, this new year brings an opportunity to get some indoor projects done around the house. It's frigid outside, kids are back in school, and many of us are back to our normal work schedules after some time off to enjoy the holidays. But now, the humdrum winter season is here and we have to do something to liven it up and make it through to spring! To get through the often-dreary Tri-State winter, we thought it would be nice to share a few of our favorite local hot spots to find some fabulous decor options to liven up your home, no matter your budget or style!

Shopping Local:

The Barefoot Cottage: Be sure to check out their beautiful location in Downtown Newburgh. A great mix of small accessories, furniture, rugs, gifts & much more! Some newer additions this past year have been more Magnolia and Annie Sloan paint, plus tons of clothing (if you still need any new pieces after Christmas). Some items are definitely pricier investment pieces, but there are plenty of budget-friendly options to add to your favorite spaces. Another tip? Check out their sale room upstairs! There are always amazing finds! This is a must-stop on our list, and be sure to stop by our ERA First Advantage office a few doors down and say hi!

Serendipity Designs & Decor: One of the newest additions to the Tri-State home store scene, this gorgeous shop has definitely made a splash. The shop, located on Lincoln Avenue, has a range of stylish wall accents, furniture, candles, and other interior design needs. Their customer service is outstanding too! If you haven't been in to visit yet, we recommend getting in there asap.

The Red Poppy: Another locally owned favorite, The Red Poppy is the perfect place to find farmhouse-inspired furniture, accents, & much more. The Red Poppy moved locations in 2017 and now resides across Lincoln Avenue from Barnes & Noble book store. They have expanded and improved (if that was even possible), and the shop is lovelier than ever. There is always a treasure to be found to that perfect nook in your home.

Honeysuckle Finds: This addition to Downtown Newburgh is a beautiful little shop with unique vintage finds, painted pieces, and handcrafted gifts. Prices are reasonable and you will certainly find items that no one else will have! The owner of the shop does an outstanding job sourcing unique items that are a blend of antique and still current. Also be sure to ask about customized pieces with a name, single initial, or special date.

Tracy's Attic: This west side shop headed to Franklin Street earlier in 2017, so be sure to visit! Tracy is usually in the shop and can offer great advice on how to decorate your home based on what you have and what you need. She carries furniture, gifts, rugs, lighting, accessories & great seasonal additions.

Sweet Peony Gift Shoppe: Another favorite on Franklin Street is Sweet Peony, owned by the same family that runs Milk & Sugar ice cream. Sweet Peony is so beautiful and right on trend with their farmhouse-inspired inventory. It's like an extension of Magnolia Market in Waco, TX if you've had the pleasure of going there, or picture some of the original remodels Joanna Gaines did on early Fixer Upper episodes. It is such a fun stop, and difficult to leave empty-handed!

There are also many more OUTSTANDING local shops around the Tri-State, particularly in Jasper, Henderson and Owensboro. They are well worth the short drive from Evansville or Newburgh to spend a day enjoying finding the perfect items for your space. If you'd like to hear about some of them, just send us a message and we'll be happy to pass along recommendations.

Another idea? Venture out to the numerous consignment shops around the Tri-State for some amazing bargains -- just know that you will have to search a bit for that treasure to take home. This is the perfect time to try your luck because many people really clear out their homes after the holidays.

Be sure to share your favorite local shops from your town with us. Our clients are always eager to hear recommendations on where to find furnishings for their new home or to stage when selling.

Have a great week and stay warm!!

Ringing in the New Year with New Goals

Happy New Year everyone (a couple days early)! We're almost ready to say good-bye to 2017 and usher in 2018 with a warm welcome. We hope you enjoyed a wonderful holiday and are as ready as we are to make 2018 the best year yet. We have so enjoyed a busy few weeks filled with festive gatherings, delicious meals, gifts, and a little work too! The cooperative winter weather (no snow/ice yet but goodness has it been cold this week), plus a busy local market set the stage for a fabulous December for ERA First Advantage agents. We have loved getting out and about with clients who were in town not only to celebrate the holidays, but also to find their new home. We have not missed a beat as our agents hosted busy open houses and continued listing properties. Real Estate never sleeps and we like it that way!

Our offices have been buzzing with such energy as we prepare to start the new year, so we decided to share some intentions for this fresh start. We all take time to make goals, and action plans to better ourselves and our business, and we encourage you to do a bit of the same whether personally or professionally. The following notes are just a few aspects of our business that we will be focused on in 2018 -- always improving and growing to meet the needs of our clients!

1. Attend agent training and conferences to better our business and bring the latest and greatest real estate knowledge back to the Tri-State. Our top priority is being the best in our field, and that means continuing education as much as possible because the real estate business is always evolving.

2. Continue to do volunteer work in the community. Our agents serve on many committees and boards for deserving non-profits, and everyone is ready to continue their involvement and of course try to do even more this year to help those in need.

3. Use our available technology to make the home buying and selling process as easy as possible for our clients. There is so much we can do digitally now, and we can get the deal done much quicker for the families we work for. We will also focus on learning and utilizing new technology that becomes available, including social media because it is clearly part of life now!

4. Cultivate lasting relationships with our clients. We know a real estate transaction is business, but as we've talked about many times, buying or selling a home is deeply personal and we really get to know the families we work with. We want to focus on staying in touch with all of you to see how things are going weeks, months, and even years after your big move.

What are some intentions or goals you're setting for yourself for the year? We'd love to hear all about them! And, if you're planning to buy or sell, check out this article for some "real estate resolutions"!

We hope you all have a happy & safe New Year's celebration! Cheers to 2018!

Home Financing Options You Might Not Know About

Today’s post is a little more business, and a little less "festive" than the past few have been. With the joyous holiday season also comes the promise of a new year and a fresh start. Many people around the Tri-State start to make plans for the upcoming year after the holidays conclude, and those plans often include a move. You will feel so much more empowered and confident buying or selling a home when you put your money matters first. So, today I'd like to share some general information about a few home loans that are not as commonly used or well-known. In fact, before my research for this piece, I had only seen their definitions in real estate licensing course work. 

The Jumbo Loan

If a borrower is requesting a loan amount that exceeds the mortgage industry’s conventional mortgage cap, the Jumbo Loan is a good option. Typically, this type of financing is secured to purchase a home above $500,000. The conventional mortgage is currently at $424,100 (it is reviewed and adjusted each year), so if a borrower needs to borrow more than that amount to purchase a home, he or she would need to look into a Jumbo Loan. At this level of lending, terms of the loan tend to be a bit more stringent because the lender is taking a higher risk in loaning a high amount of money, plus these loans are not secured by Fannie Mae or Freddie Mac. A Jumbo Loan usually requires at least a 5% higher down payment than a conventional loan, so borrowers should expect to have a down payment of 10%-25% depending on lender requirements. Additionally, a Jumbo Loan carries a higher interest rate, sometimes up to 1.5% higher than conventional rates. While that doesn’t seem like much, it can change the monthly mortgage payments on a $500,000 loan quite a lot, so be sure to work through your numbers carefully before committing.

The Bridge Loan

I have encountered many clients who have difficulty understanding the idea of a Bridge Loan. If you think about it as literally “bridging the gap” between financing options, that might help. The Bridge Loan is utilized while a person or company secures a permanent financing option or removes an existing financial obligation like an existing mortgage. For example, if a family finds a new home they want to purchase before they sell their current property, they can apply for a Bridge Loan to secure immediate cash flow. These loans are short term (typically one year) and have high interest rates compared to other types of loans. They also must be backed by some type of collateral such as a piece of real estate. Lenders require these additional guidelines because they are taking a risk in loaning to a borrower taking on two mortgages; they are just trying to protect their interests should the borrower lag in payments or default.  If you’re very well-established financially, this is a fantastic short-term option in many situations. Just be sure you have excellent credit, and a low debt-to-income ratio. Another consideration? A Bridge Loan only covers up to 80% of the combined value of the two properties, so it is in your best interest to build up significant equity and a well-padded savings account before securing this type of loan. Talk at length with your loan officer about this lending option.

The Balloon Loan

At first glance, the Balloon Loan looks very similar to a 30-year fixed rate loan. Interest rates remain low, comparatively speaking, as well. The monthly mortgage payments are calculated the same way, but after a period of five to seven years, the outstanding balance of the loan must be paid in full. That means low initial payments, but at the end of the term of the loan, a borrower could owe tens or hundreds of thousands of dollars. Who would ever apply for that type of financing? Well, if a buyer is incredibly self-disciplined and ready to make that large payoff payment at the end of the loan period, their mortgage is paid off and they own the home. While that scenario happens on occasion, a more likely setting involves a borrower using this loan when he or she anticipates a major cash flow, like an inheritance, stock cash out, or another sale of some magnitude. Generally, if someone secures a Balloon Loan, he or she can validate that a large sum of money is imminent, but if that doesn’t happen, some Balloon Loans carry the option to refinance at the end of the term. Just remember that refinancing does require some investment and closing costs. 

The mortgage process does not have to be overwhelming or scary with a little self-educating and the right local loan officer. Your ERA First Advantage agent can certainly help you with that! If you’re working through the preapproval process, best of luck and enjoy shopping for your new home sweet home!

Space Planning in a New Home

Walking into a new home for the first time can feel like heading into a foreign land. You love the home, or you wouldn’t have bought it, but it can still be a bit strange and unfamiliar. Where will everything go? How will you arrange each room? Will your furniture and décor look “right” in this new place? As agents, we understand these feelings. In fact, for your resident blogger, these exact thoughts have been on my mind for weeks as we look for our new house. If you'll indulge me this week, I'm going to write from a little more personal perspective because a move, and your "stuff" that goes with it, is...well...personal.

I assumed that a lot of other people have shared these feelings and asked themselves the same questions during a move, so thought I would share the ways I am preparing and planning, so our new space feels like home. I should also disclose that I am fighting the strong urge to get rid of most of our stuff and buy all new furniture to fit the new house. As tempting as it is, I’m not going to overhaul just yet and I’ll tell you why.

The first piece of advice I have is to walk through the house as much as possible. Once you decide it’s the one, carefully stroll through and try to envision how you will live in the house. How will you use each room? Where will large pieces of furniture fit and where will conveniences like TVs be hung or set up? Once you decide those basic elements, I recommend getting a bit more specific in your plans, meaning furniture placement and finally decor and finishing touches.

I like to see things laid out before I arrange a room, so I always sketch how I want furniture and important decorative pieces to be placed. I highly suggest trying this strategy before a move. Measure each room to be sure your pieces will fit, and then roughly draw the space including windows, doorways, and closets. You can look at your rooms with fresh eyes each day and change as you see fit. This strategy helped me realize we do not need to get a new entertainment center to replace the loss of our built-ins. I plan to use a buffet from our current dining room and open shelving to accomplish the same purpose. Allow yourself to be creative and consider multiple uses for your favorite pieces.

That thought leads me to discuss fighting the urge to buy all new stuff. Don’t get me wrong – I would love a fresh look for the new house, but that needs to wait. First, see what you can work out with existing pieces. Don’t buy without a plan. I know we will invest in a few key pieces down the road, but at first I really encourage editing what you already own and determine whether it will work long-term. Give yourself three months or so to get settled and decide whether you like your current room arrangements. At that point, if you feel like new items are the way to go, then you’ll be confident that you’re not just buying for the sake of buying. You’ll be investing in things that will create comfort and ease in your new home.

Another strategy I have embraced is cutting the clutter. This is critical whether you’re downsizing or upgrading. I am donating or selling items we don’t need or no longer love. In our next house, I want to be surrounded only by things we use, need, and love. Those old guest room dressers that were hand-me-downs? Gone. The ugly old chair my husband has had since college? Bye-bye. This is a chance for a fresh start, so embrace the opportunity to let go. Weeding out things that tend to just take up space will also help you take inventory of what you have and brainstorm how it can be used in your new house. It’s also incredibly liberating to be able to let go of stuff and have faith that you will be fine without it.

Finally, the strategy I am still working on myself is giving yourself a little grace and a little credit. Moving is hard and stressful, even when it is an exciting change. There is a lot to do and a lot to think about during the moving process, so please don’t worry about creating a magazine-worthy space within weeks of moving. In time, as you become settled and acquainted with your home, you’ll figure out what works, what doesn’t, and make changes accordingly. If you’re anything like me, it’s likely you’ll still be rearranging and adjusting your rooms several years after moving in, and that is quite alright!

Real Estate During the Holidays

Welcome back, everyone! Who else has had a busy couple weeks now that we are in the midst of the Christmas season? Like our ERA First family, you're likely staying very busy shopping, attending holiday gatherings and programs, decorating, cooking, and volunteering during this festive season. In addition to our holiday activities, we are staying busy around the office with clients who are buying and selling this season.

In the past, the holiday season (Thanksgiving through January) has been considered an unpopular time for many people to buy or sell a home. However, in the past five years or so, we have seen quite an increase in transactions during this time. It's not as busy as spring and summer was as the market has slowed a bit, but we are pleased to share that our wonderful clients are keeping us busy and jolly right through the holidays. We know people need to move 12 months out of the year, and typically the ones who are selling or buying right now truly need to do so for a variety of reasons.

If you're thinking of testing the waters and feel like you're ready to put your home on the market, we would like to share these helpful tips for you!

1. Go ahead and decorate for the holidays, but don't go overboard. Homes look so warm and cozy this time of year with the tree, garland, cheerful snowmen, etc, so you have the opportunity to showcase that as a selling point. However, don't put out so much extra holiday decor that it distracts from the features of the home that are lovely year round.

2. Hire a reliable, ambitious agent. There is definitely some truth to the notion that there are fewer buyers this time of year, as we noted earlier in the post, so your ERA First agent might have to network a bit and utilize some creative marketing to find the right buyer. You definitely want your agent to be willing to work for you!+++

3. Price the home to sell. This is another big perk of hiring the right agent. Be sure he or she does a comparative market analysis and be very realistic in your pricing. If your house is priced competitively, you won't need to do a bunch of little price reductions (which we know is frustrating for sellers!).

4. Ramp up your curb appeal. This time of year, we do not have the advantage of free-flowing greenery and leafy trees, nor can we put out potted flowers and showcase a lush, green yard. That's just not what winter in the Tri-State looks like! So our recommendation is to do all you can do make sure your home looks as great as possible and is as clean and spruced up as possible. A tasteful winter wreath, some potted evergreens or other hardy plants, plus a little garland make a very nice impression.

5. Create a cozy atmosphere. In addition to holiday decor, make your home feel as inviting as possible for showings and open houses. Light candles, turn on the fireplace, put out freshly baked goodies, place a nice blanket on the couch or a chair, and have some pleasant music playing when potential buyers come through. Make them feel like they could just curl up and stay awhile!

6. Be prepared to negotiate with motivated buyers. Like we mentioned, buyers who are looking at houses during the holidays need to find a home, sometimes quite quickly. Maybe they've been transferred for work or want to move closer to family, but they are likely moving out of necessity and potentially have a deadline, so be ready to work with them when an offer comes through.

7. Be flexible. Peoples' hours of availability vary during the holiday season because they are off work or only in town for a couple days. If you don't get your preferred notice before a showing or have a request for a showing a little earlier or later than usual, try to accommodate. It's likely those buyers are devoting an entire day to house hunting and might be pressed for time. Let them see your beautiful home -- it just might lead to an offer!

Please let us know if we can do anything to assist you with your winter real estate questions and decisions. ERA First Advantage agents are always very willing to take calls and answer emails throughout the holidays and will be happy to work with you and your schedule!