Right now every buyer that we are encountering asks to see foreclosed properties or short sales. In order to have an opportunity for showings and offers owner occupied properties must have excellent curb appeal (eliminations are being made from the internet), and a price that is very competitive with the distressed properties.
Over 80% of buyers who consummate a purchase work with a buyer agent. If buyer agents are to have any chance of showing an owner occupied property to buyers in this market, there has to be a compelling reason. Sellers who believe they have a great house that will appraise above the comparable foreclosed properties are wasting time and face great disappointment and frustration.
My best advice is to make a decision - are you a seller or are you a tester?
If you are determined to be a seller, contact an agent who understands what it will take to compete and she will tell you what has to be done, without wasting your time or money.
Good luck

James -

The issues I see with the distressed homes is one of financing - the loans where "updating" can be rolled into the mortgage are all but gone. You know FHA/VA wants everything done and conventional loans are not fronting any credits, equity lines and seconds are also very restricted. It's not so much as not want to do the work, it's coming up with the money other than digging into their pockets. I know there are still a few first time and HUD programs, but those are very restrictive. When I do any appraisal (esp gov't ones) they want many pictures and a thorough description of deferred maintenace - they will mandate repairs (esp FHA) prior to closing. It's a catch 22 as that where the stimulus money should be - very low interest repair loans to buyers to get these homes back in shape and occupied.

My buyers tend to kick tires on those distressed homes but the ones that need work we blow right past. The best bargains right now are relo company owned homes and new construction short sales/foreclosures. Trust me, I see the other "distressed" stuff daily and many are brutalized!

Hank

Jennifer,

This is a great question because people often go overboard whan preparing for selling their home when the bottom line was only a few major items needed to be done.

Your approach to identify those things that can be improved by cleaning, painting, or decluttering. These improvements can be done at a minimal expense, keeping your budget under control.

Attention should be given to improving the appearance of the home from the road since a home's curb appeal is what often brings people into the home. Painting, gardening, mowing & trimming are again quite inexpensive if you are able to do the work yourself and can make the difference between an easy or difficult real estate experience.

Good luck

"Keep the grass cut and the leaves raked.
Freshen up flower beds with colorful blooms. (potted flowers look nice also)
Pull Weeds and replace mulch.
Trim hedges."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Aside from saving money by doing these things yourself there is another benefit other than the execise. When I was selling I had two impromtu showings within a couple weeks in the fall simply because I out working in the front yard. However, as with virtually all the other feedbacks, the spiral staircase was a downer.

BTW, whether you are represented by an agent or not, the blog attached to the link below may be of some interest to you. While it is directed to FSBOs, there are some ideas that you possibly could implement to augment your agent's marketing plan. Please, if represented always keep your agent abreast of anything you do on your own, and use your agent for the contact person. Good luck.

http://www.trulia.com/blog/rockinblu/2008/08/thinking_about_…

Hank,

I have to disagree!

Buyers are more educated about foreclosures that ever before. Buying "AS IS" is not as scary to them as it used to be.

The "fixer upper" is still in play! Not only have housing costs dropped, but so have materials and labor! It's cheaper than ever to update your home, finish a basement, and hire a contractor to do it all for you!

Buyers know this and do not fear buying a home "as is" that needs a little work.

If you can be the best looking house on the block at a competitive price it will sell.., but don't assume buyers are hesitant to take a risk and roll up their sleeves to do a little work just to get a good deal and secure some equity!

Jennifer,

DO NOT SPEND ANY EXTRA MONEY ON THE HOME, PERIOD (unless you need to fix things or "update" them).

The reason is simple. You are investing in a depreciating asset. If you spend $5000 on hardwoods, it WILL help you sell faster, but not necessarily for $5000 more.

Make sure you have a stager stage the home to look like a model home, key is LOOK like a model home, not have upgrades like a model.

I'm only a few minutes away, I've sold Apalachee Farms and up and down Dacula Road, I'd be happy to give you a good idea on what to spend money on and what may be a waste.

Jennifer -

I see homes all day, every day as an appraiser and a broker. I have suggested that my clients go out and preview their competition, see what's out there and how it compares to theirs. I'll make suggestions but many times walking through a few homes does wonders.

I will say that the homes that are selling are the ones that reflect care and pride. The days of "buying as is" or "I'll fix that later" are all but gone, you have to be the home others are compared to. Of course you beeter be accurately priced and very well exposed....but that's our job.

Shoot me the address, I can accurately bracket you with an address and a few questions - thanks

Hank Miller, SRA, ABR
Associate Broker & Certified Appraiser
Prudential GA Realty
678-428-8276

Jennifer,

Are working with a realtor? If not I work with many clients buying and selling in the Dacula area.

I would be happy to come by and assist you with preparing your home to sell. There are many things to do to prepare your home for this tough sellers market we are in, but you need to make sure that your money is spent in the right places. The last thing you want to do is price yourself out of your market by investing in upgrades that are not needed.

The condition of the home is usually very important and still is, but in today's market it's all about price, price, price!!! Buyers today are looking for a bargain and the key to selling your home if it's not a foreclosure is to be in great condition and still be a bargain. This will give novice buyers who want to take advantage of this market a sense of security they may not have buying a foreclosure, but confidence that they are not paying too much. Everyone is concerned about the housing market continuing to decline and buyers want to make sure they have a shot at having equity in the home they purchase.

I can schedule an appt. to view your home and provide you a up to date market analysis, staging tips, and a solid game plan for getting your home sold at a price you are comfortable with.

James Dudley
ERA Sunrise Realty
678-781-7418

Dana, great answer. You are absolutely right. That first impression is the first step to making the sale. You don't want your clients standing around outside looking at cobwebs or weeds while the agent is unlocking the door. Make sure the key works smoothly. If you need help with decorating, hire a stager, they are inexpensive in the long run. A home staged is a home sold in our area.

Here is my starter list for prepping your home:

You only get one chance to make a first impression!
Buyers believe the condition of a home's exterior speaks volumes about the interior.

Exterior:
Be sure the house number is clearly visible from the road.
A new coat of paint will earn you far more than it costs, including labor.
Clean stains from walks and driveways.
Vinyl siding should be cleaned and checked for gaps.
Does the front door need a fresh coat of paint?
Polish or replace the front door kick plate.
Wash ALL the windows inside and out.
Check to see if screens need replacing.
Keep the grass cut and the leaves raked.
Freshen up flower beds with colorful blooms. (potted flowers look nice also)
Pull Weeds and replace mulch.
Trim hedges.
If you have a pool that is open make sure it sparkles!

Interior:
Be sure all clothing is put away in a proper place
Organize all cabinets and closets.
Remove all personal mementos and photos.
Deep clean and deodorize the carpets.
Polish wood floors.
Wipe out the window sills and the baseboards
Open the blinds and curtains to let the sunlight in.
Dust, dust and dust again (blinds, fixtures, electronic equipment, tables, etc.)
Replace all non working bulbs.
Clean the oven and stovetop.
Be sure the bath is organized and stain free.
Put out fresh towels and decorative soaps in bathrooms.
Change heating and air filters.
Clean the fireplace.
Provide the last three months utility bills.
Make readily available manuals from appliances that will stay with the home.
Use place settings at the kitchen table and a centerpiece on any formal table.
Dab a little vanilla on a cool light bulb with a cotton ball.
Packs away your collectibles.
If your rooms look crowded you can temporarily store furniture or hold a garage sale before showing.


Your competition is ready to sell, are you?