Columbia SC Home Selling Tips

These days, when it’s tougher than ever to sell a house, homeowners are turning to renting as a way out.

Renting may be a good option when you can’t sell, but not everybody is cut out to be a landlord. And while renting may seem like an easy short-term fix, it may not be a long-term solution.

Make sure you consider all the factors before deciding whether renting will solve your problems…or create more.

Problems With Renting Your House

While you may have excellent reasons for renting your house, consider the following before giving up on selling your house.

Buying Another Home – Leaving equity behind in your house may prevent you from purchasing a new house.

Property Management – Managing receipts, maintenance, repairs, emergencies, and other requirements associated with renting requires time, money, and effort. You can choose to do it yourself or you can choose a property manager to do it for you.

Market Recovery or Market Bust – It may take longer than you think for real estate prices to recover. Right now, the economy remains weak. Downward pressure on home values will continue for the foreseeable future. Who can say how much longer or steeper prices will sink before an eventual upswing. Once the market is on an upward trajectory, it will take years for prices to return to previous highs.

Depreciation – While the IRS allows you to take deprecation as an expense against rental income, don’t think of ‘depreciation’ as only a tax deduction good for improving cash flow. Since tenants are unlikely to treat your home as well as you would, physical depreciation is a very real aspect of turning your home over to tenants.

Capital Gains Taxes – If you rent your house for only two years, you can still sell your house and be exempt from paying IRS taxes on up to $250,000 of capital gain (when single) or $500,000 (when married). However, the depreciation you took against rental income may have to be recaptured. Be sure to consult your tax accountant.

Re-lease or Try to Sell Again – In this climate, you’ll find tenants quickly. Once the first year’s lease is over, you’ll have to decide whether to continue renting your house or try selling. Either way, you’ll have to invest in cleaning, painting, landscaping, replacing carpet, upgrading appliances, and making repairs before the next tenants or buyers move in.

Damaged Goods – When you’re ready to sell, your house may be considered ‘damaged goods’. Homebuyers can immediately tell if a house has been lovingly cared for or simply lived in. And they will take this into consideration when making offers.

Selling With Tenants in Place – Let’s face it, tenants don’t care if you sell your house or not. They don’t have a stake in the outcome. They only know it disrupts their schedule. They won’t keep the house as neat and clean as you would. They won’t be as flexible to accommodate showing appointments as you would. And they may hang around the house during showings, making homebuyers uncomfortable and eager to leave. Once their lease is up, you’ll find yourself in a negative cash-flow position and may very well be forced to rent once more.

Rental Merry-Go-Round – After renting your house for what was supposed to be no more than a year or two … just until the market turned around … could turn into a long-term commitment. You may get stuck on the rental merry-go-round, unable to jump off. The window between leases will leave you with only a short time to list and sell your house. Before you know it, you’ll be back on the rental merry-go-round, still waiting for the opportunity to unload a monumental burden.

Rental Prices May Go Down – Right now rental prices are what they are, and they may be just fine for your needs. But renting your house as a short-term solution may not be a long-term solution. With so many homeowners turning to renting as an expedient to selling, tenants will have more homes to pick from. In time, instead of facing a ‘Buyer’s Market’ on the selling end, you may very well face a ‘Renter’s Market’ on the rental end. Such a circumstance would drive rents down year to year. After factoring in rising insurance rates and property taxes, you may eventually find yourself in a negative cash-flow position.

Mortgage Rates – Mortgage rates are the lowest they’ve been in recent history. But they can’t stay low forever. When the economy recovers, the Federal Reserve will start raising key interest rates. Mortgage rates will climb in lockstep, making homeownership more expensive. To make up for higher monthly costs, buyers will bargain that much harder, forcing prices down once again.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Do you want to sell your home right away? Don’t be tempted by “We Buy Houses” or “Sell Your House in 9 days for Cash” ads, signs and billboards.

Savvy real estate investors run these ads and put up posters looking for sellers under duress. These investors want to make the money you earned for holding your home. Investors only want to pay you up to seventy percent of the (low end) market value. Many investors who studied late night infomercial real estate scams want you to be their bank and carry the financing.

You do not need to be at the mercy of these scavengers. Selling your home is stressful enough without worrying about getting a fair price.

Follow these tips for getting fair market value for your home quickly.

For Sellers with No Money to Spend:

  • Start at the street and clean up the weeds
  • Remove dead plants and trim overgrown limbs
  • Plant brown spots with cuttings of ground cover from friends
  • Remove empty pots and containers or fill with cuttings
  • Wash the windows
  • Inside, take down tatty window coverings
  • Pack personal effects: family photos, memorabilia, magazine piles
  • Open window coverings, let the sunshine in
  • Air your home out
  • Get rid of excess furniture, especially pieces with holes
  • Hold a yard sale and use the money to buy flowers
  • After a thorough purging and cleaning, your shining home is ready to sell!

For Sellers with a Little Cash:

  • Spend your money wisely on enhancements that boost net proceeds
  • Freshen paint
  • Fix everything you possibly can
  • Use Design and Marketing Psychology to stage your home

Redecorating your home and adding upgrades for the potential buyer’s profile brings you the greatest return for your money. Then, you retain your equity and sell your home at full market value to a motivated buyer.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

While it’s a good time to buy a home, it’s a brutal time to sell. So it may pay to make your home look its best. One way to do that is via staging…

Have you ever staged a home for sale, or know of someone who has? We’d love to hear how it went? Just use the comment link below to tell us about it.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

In the process of selling a home, the single most important item to address is pricing. Pricing a home has several factors which must be addressed in order for the outcome to result in successfully attracting a buyer. This is especially true due to the fact that most local markets are experiencing what is termed a “buyer’s market.”

A “buyer’s market” is, in simple terms, one in which there are more homes for sale than there are buyers for those homes; basically a glut on the market. This can occur when the banking industry experiences a record number of homes they have in foreclosure. In this case, these foreclosed homes have saturated the real estate market, increasing inventory beyond the market. Another factor may be that people who are currently renting are hesitant to commit to a long term mortgage, even at lower interest rates, because of job instability.

What this means to someone who is attempting to sell a home is that the asking price must fall within the range of what a buyer will pay for a home in a specific location. This “magic” price is determined by the following statistical facts:

  • comparison of asking price of other, similar and non-similar, homes that are in the vicinity of the subject home
  • comparison of actual sold price of other similar and non-similar, homes in the vicinity of the subject home that successfully closed escrow
  • how many homes are currently on the market that are comparable to the subject home
  • how long other homes in the vicinity of the subject property have been on the market
  • location of the subject home
  • condition of the home

A seller’s true competition is the other homes on the market. By looking at the asking price of other homes, it can be determined what the current competition is. Upon analyzing competition, whenever possible it is best to come in slightly under asking prices of the other homes if at all possible. This places the seller’s home in the primary position when buyers are making their lists of the best priced homes. It is a mistaken belief that buyers and sellers are in an adversarial position. In actuality, a buyer and a seller want the same thing.

The actual sold price of other homes provides guidance as to how much the market will bear for the property. It is best to look at homes that are the same style, similar amenities, and within the same area as the subject home, but not absolutely necessary, especially in today’s market. Buyers are looking for the best deal, not necessarily a particular style. The actual sold data is the strongest indicator as to how to price a home to sell.

There are a couple of helpful pointers when reviewing how long other homes have been on the market: those that are currently active on the market, those that have received a contract on them but have not closed escrow, and those that have closed escrow. This number, termed “days on market” or “DOM,” provide information on an estimated time it will take to sell the home. This figure needs to be analyzed with the asking price history.

The location and condition of a home are generally the easiest to consider.  If the home is located in a desirable area, but is in poor condition, or vice-versa, it will have an impact on the price.

In essence, you need to tie the contributing facts together, starting with the hopeful sale price based on other listings, then what they are actually selling for, and the volume of houses in your price range, and neighborhood. Then, throw in the desirability and condition of your home, and your price will finally be set. This takes some patience and courage, but the final result will be more showings which means more potential for a successful sale.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Other than selecting the best price, staging your property is the most important thing you can do to ensure that your house sells for what it’s worth. Homebuyers today like to find good deals, and also want a property that is move-in ready.

Sometimes, you will find people willing to purchase properties in distress if the price is right, especially if they are looking to flip that house for a profit. Other than that, the average person is looking for a house that is as esthetically pleasing as possible. With that in mind, here are a few tips that can help ensure that your property is ready to go when buyers start expressing interest.

Start from the outside, and work your way in. The front lawn and driveway are going to be what you need to focus on first and foremost. When people begin the process of scoping out properties they are interested in, they are going to be doing a drive-by before they request to see the inside of the house. Make sure the lawn looks nice, and any and all bushes are orderly and well-kept. If you have the ability to plant some flowers, consider doing so.

Everything you can do to make the house look appealing on the outside will entice more buyers to actually remember the property for an inside visit. Also, make sure the driveway and sidewalk are as clean as possible. There are hose attachments you can get that are power cleaners, as well as different cleaning supplies that will ensure that your concrete is clean and appealing.

Once you make your way to the inside of the property, take a look at what stands out most the second you walk in the door. Do you have nice crown molding? Are there custom draperies? Anything that catches the eye, or is unique to your house, you want to make sure is cleaned and ready to be seen. Do this throughout the house. If you have new appliances, make sure they are clean and polished.

Finally, an area of great focus should be on the bathrooms. Making a bathroom extremely presentable will tell a lot to a buyer about the condition that he or she can expect regarding the rest of the house. The bathroom is where we tend to see extra problem areas that go overlooked, but can be picked up, and frowned upon, by a savvy buyer.

These three tips will help make sure you are ready to present your home when the time comes. Other than hiring a professional stager, you as the home owner need to ensure that you take the time to fix up the property and make it look as move in ready as possible.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.