By Katherine Salant
"Use common sense to make sense.
"It sounds like Ben Franklin, but the speaker in this case is David Johnston, a green-building consultant in Boulder, Colo. His Ben Franklin-sounding aphorism, he said in a recent interview, has proved to be a useful, shorthand way of explaining sustainable green-building principles and practices.
Although these have been embraced by more and more home builders, there is still much confusion among the general public as to what exactly makes a house green. One way to keep things straight, Johnston said, is simply to remember to "use common sense to make sense."
For example, Johnston is regularly asked if a green house is one that is petroleum-product-free. His common sense answer: "If you eliminate everything that contains petroleum, you can't enjoy the accoutrements of a 21st century lifestyle." All the heating and cooling equipment and standard appliances contain plastic, he pointed out, adding that "even something as basic as a toilet has plastic parts.
"The make-sense part of green building, Johnston went on to say, has to make sense both environmentally and economically. For example, building materials that have recycled content are generally considered to be a plus because recycling can significantly reduce both the volume of the waste stream and pressure on overflowing landfills.
But, speaking like the hard-headed home builder that he once was, Johnston said you shouldn't select a product solely on this basis. A product with recycled content may be much more costly than the conventional product it is intended to replace, and it may not perform any better.
Materials have to make sense from a health perspective as well, Johnston said. Many building materials are made with unstable, volatile organic compounds, called VOCs. They can off gas into the air for weeks and sometimes years after they are installed in your house. Of the hundreds of VOCs that have been identified, the one that concerns most people is formaldehyde, a potent eye and nose irritant that can cause respiratory problems. It has been classified by the World Health Organization as a confirmed human carcinogen. You can easily avoid it by using one of the many building products now available with low or no VOC content, Johnston said. Though the non-VOC products often cost more, this is one instance where a higher cost is worth it, he added.
Segueing from materials to other aspects of green-home builders Johnston talked about household energy use. His common sense rule: Use as little as possible. His common sense reason: to save money and the planet. If you use less energy, you'll save money on your utility bills. You'll save even more as the price of natural gas, fuel oil and electricity inevitably goes up.
If you use less energy you'll help save the planet because you will be reducing the greenhouse gas emssions associated with your house. Unbeknownst to most homeowners, buildings are the largest source of the greenhouse gas emissions that are causing global warming. In the United States, half of building-related emissions are from houses.
Johnston feels that energy issues are so important, he urges homeowners to put them front and center in the design of any new house -- "from the first sketch of a floor plan to the final dotting your I's and crossing your T's."But, Johnston hastened to say, energy savings should not come at the cost of having a great-looking house with lots of windows and great views. The trick is to get all this and save energy.Johnston's common sense strategy for supplying household energy needs: Use what's free before using what you have to pay for. That is, tap as much free solar energy as you can for your heating and lighting needs before turning to conventional solutions.
To do this, you really do have to think about energy from the start because the feasibility of passive solar solutions depends on how you place your house on your building site, the first step in any building project. To capture the sun's rays for heating your house during the winter, your living areas must be oriented to the south. You can keep the same spaces cool in the summer by adding overhangs. With some additional refinements to the overhangs, the sun can also supply your lighting needs during the day. To maximize the benefit of passive solar heating and cooling, you need to carefully tailor your building envelope to reduce heat loss or heat gain through the walls and roof. This generally requires adding insulation to the walls, attic and basement in amounts far above code requirements and upgrading windows to get ones with a low-emission coating that helps to keep the heat inside during winter and outside in summer.
Unless you live in Hawaii or Santa Barbara, Calif., where passive solar strategies can supply all your heating and cooling needs, you'll still need a furnace for those cold days when the sun's heat is not enough to keep you comfortable. But with your upgraded building envelope, you can use a smaller furnace and air conditioning condenser, and that is a cost savings, Johnston said.
You'll also need electric lights for nighttime use and cloudy days. Surprisingly, lighting accounts for about 12 percent of household energy use in the average household. Solar daylighting shaves part of this, but you can shave it further with compact fluorescent bulbs, commonly called CFLs, Johnston said. They use about 75 percent less energy to produce the same amount of light as an incandescent bulb, and they last six to eight times as long. CFLs can be screwed into almost any conventional light socket and their color correction has vastly improved in recent years.
The other part of the home energy puzzle that green building can affect is the sizeable energy draw for hot water. The luxury of having 40 to 50 gallons available 24/7 consumes another 12 percent of household energy use. But, Johnston said, it's another instance where you can tap free solar energy by installing a solar collector on your roof. For those cloudy days, though, you'll need a backup hot-water heater.
The other 35 percent of the energy that the average household consumes is out of a builder's hands, because it is the "plug loads" that homeowners bring into the house when they move in -- appliances, computers, home-entertainment equipment, and all the other doodads that most households accumulate. The most effective way to reduce this load is to purchase Energy Star products, now available in more than 40 categories.
How does Johnston's "common sense to make sense" work in real time on a real house?
To find out I contacted McStain Neighborhoods, a small production-home-building firm in Boulder that has built sustainable, green houses for more than 40 years. The firm builds about 350 houses a year in the Denver and Boulder markets.
Like all home builders, McStain evaluates everything from a cost-benefit perspective. But, unlike almost all the others in the United States, McStain has a research and development department that carries out in-depth reviews of about 50 new products and building techniques a year. Periodically, the firm builds a test house that incorporates the most promising of these innovations. The test houses are eventually sold, but the firm continues to monitor them for several years afterwards, said McStain marketing head Barr Hall.
Jeff Medanich, who heads up McStain's research efforts, said that much of his work is a balancing act, spending more here but saving more there so that in sum, the cost of an innovation is relatively small.
Medanich offered as an example McStain's current exterior wall construction. Instead of the dimensional wood studs that are used by most home builders (a single piece of wood sawn from a tree log), McStain uses finger jointed studs, which are made up of several smaller pieces of recycled scrap lumber that are glued together. These cost more but their superior quality means that fewer are tossed as unusable -- only about 4 percent compared with 20 percent of the dimensional studs. The cost difference is a wash, but the finger-jointed studs have the added benefit of lowering costs down the line. Because they are straighter, the walls are plumb, and this makes the work of subsequent trades go more smoothly and faster.
Tuesday, March 27, 2007
Friday, March 9, 2007
13 Tips for Selling Your Home in Winter
From MSN.com:
Sure, there are fewer buyers and the skies are gloomy. So warm and brighten up the place; make it look like a refuge from the weather.
By Bankrate.com
What makes selling a home more stressful? Selling it in the middle of winter.
The lawn is brown, the weather is usually bad and, unlike the longer days of summer, you have less time to show it off during daylight hours.
But not everyone has the luxury of waiting until the traditional spring or summer home-buying season to plant that "for sale" sign. And while it's true that in most areas you'll probably have fewer buyers during the winter, you will have less competition from other sellers.
The season makes staging -- the concept of showing your house at its best -- even more important.
Be prepared to put a little effort into it. "It's more difficult to make something look really appealing this time of year," says Ron Phipps, broker with Phipps Realty in Warwick, R.I.
If you do it right, you can really make your house stand out.
1. Keep snow and ice at bay.
The top tip from realtors: If the buyer can't get in easily, the house won't sell. That means keeping walkways and driveways free of the frozen stuff. Just like trimming the lawn in the summer, you want to make the home look like it's been maintained. If you're away frequently or live in an area that's subject to bad weather, it can pay to hire a service to regularly salt or shovel the driveway and sidewalks.
2. Warm it up.
If you're showing during the winter, think "warm, cozy and homey," says Ken Libby, owner of Stowe Realty in Stowe, Vt., and a regional vice president of the National Association of Realtors.
Before a buyer comes through, adjust the thermostat to a warmer temperature to make it welcoming. "Sellers like to turn the temperature down because of heat costs," says David Ledebuhr, president and owner of Musselman Realty in East Lansing, Mich., and a regional vice president of the National Association of Realtors. "But buyers who come in and aren't comfortable won't stay long."
If you have a gas fireplace, turning it on right before the tour can give the house a little ambience, Libby says.
With a wood-burning fireplace, you've got to be a little more careful. If the house is vacant, don't chance it. But if you're still living there and will be there during the tour, it can be a nice touch.
Many times, sellers leave right before the agent and prospective buyers arrive. In that case, adjust the heat to a comfortable temperature and have the hearth set for a fire. Buyers feel the warmth and see the potential, and you don't have to worry about safety concerns.
3. Take advantage of natural light.
"Encourage showing during the high-daylight hours," Ledebuhr says. At this time of year, "if you show after work, you're totally in the dark."
Make the most of the light you do have. Have the curtains and blinds cleaned and open them as wide as possible during daytime showings. Clean all the lamps and built-in fixtures, and replace the bulbs with the highest wattage that they will safely accommodate. Before you show the house, turn on all the lights.
4. Get the windows washed.
"Buyers act on the first impression," Ledebuhr says. Windows are one thing that many sellers don't even consider. In winter, that strong southern light can reveal grime and make it look like the home hasn't been well-maintained.
5. Play music softly in the background.
To create a little atmosphere, tune the radio to the local classical station. Turn it down so that you barely hear it in the background. "It's soothing," says Libby, who finds that soft classical music tends to have the most appeal to buyers. "I think people tend to stay around a little longer and look a little longer."
6. Make it comfortable and cozy.
Set the scene and help the buyers see themselves living happily in this house. Consider things such as putting a warm throw on the sofa or folding back the thick comforter on the bed. Tap into "the simple things this time of year that make you feel like you're home," Phipps says.
7. Emphasize winter positives.
Is your home on a bus route or some other vital service that means it's plowed or de-iced regularly in bad weather? Be sure to mention that to the buyers.
8. Set up timers.
You want your home to look warm and welcoming whenever prospective buyers drive past. But you're not home all the time, so put indoor and outdoor lights on timers, Phipps says.
Look at the outside lighting around the door. Is there enough illumination to make it inviting? If not, either get the fixtures changed or have new ones added.
9. Make it festive.
Even if you're not actually going to be present, greet your buyers as if they were going to be guests at a party, Phipps says. Set up the dinner table with the good china and silver. Have a plate of cookies for your guests, some warm cider or even chilled bottles of water.
"First impressions are so powerful," Phipps says. "If it looks like you're expecting me and greeting me as company, that's a powerful impact."
10. Give the home a nice aroma.
The No. 1 favorite? "Chocolate chip cookies," Libby says. "Just about everybody likes that smell."
Other popular scents: cinnamon rolls, freshly baked bread, apple pie, apple cider or anything with vanilla, cinnamon or yeast.
"But don't overdo it, either," Ledebuhr says. Scented candles in every room or those plug-in air fresheners can leave buyers wondering what you're trying to mask.
Watch the bad smells, too. Pet smells, smoke and musty odors can cling to curtains and carpets. Ask your real estate agent or a friend to give it a sniff test. Then clean the house, air it out and replace drapes, carpets or rugs before you show it.
11. Protect your investment.
Some sellers (or their agents) will ask buyers to either remove shoes or slip on paper "booties" over their footwear before touring the house. Many buyers like that, Phipps says. It indicates a "pride of ownership and meticulousness that resonates with buyers," he says.
12. Use the season to your advantage.
While the holidays are over (and the Christmas and Hanukkah stuff should come down), you can still use winter wreaths and dried arrangements around the door to spark interest. "Anything seasonally appropriate is fun," Phipps says.
In the winter, with the leaves off the trees, you might also have a nice view that isn't as apparent in the spring and summer months. It's a great time to sell waterfront properties, Phipps says. "You can see the views better this time of year."
13. Consider the area.
In some parts of the country, such as ski areas or warmer regions where the snow birds flock, winter weather can actually be a selling point. "We're right in the middle of our selling season," says Libby, who is located in Vermont. "It's not always spring and summer."
This article was reported and written by Dana Dratch for Bankrate.com.
Sure, there are fewer buyers and the skies are gloomy. So warm and brighten up the place; make it look like a refuge from the weather.
By Bankrate.com
What makes selling a home more stressful? Selling it in the middle of winter.
The lawn is brown, the weather is usually bad and, unlike the longer days of summer, you have less time to show it off during daylight hours.
But not everyone has the luxury of waiting until the traditional spring or summer home-buying season to plant that "for sale" sign. And while it's true that in most areas you'll probably have fewer buyers during the winter, you will have less competition from other sellers.
The season makes staging -- the concept of showing your house at its best -- even more important.
Be prepared to put a little effort into it. "It's more difficult to make something look really appealing this time of year," says Ron Phipps, broker with Phipps Realty in Warwick, R.I.
If you do it right, you can really make your house stand out.
1. Keep snow and ice at bay.
The top tip from realtors: If the buyer can't get in easily, the house won't sell. That means keeping walkways and driveways free of the frozen stuff. Just like trimming the lawn in the summer, you want to make the home look like it's been maintained. If you're away frequently or live in an area that's subject to bad weather, it can pay to hire a service to regularly salt or shovel the driveway and sidewalks.
2. Warm it up.
If you're showing during the winter, think "warm, cozy and homey," says Ken Libby, owner of Stowe Realty in Stowe, Vt., and a regional vice president of the National Association of Realtors.
Before a buyer comes through, adjust the thermostat to a warmer temperature to make it welcoming. "Sellers like to turn the temperature down because of heat costs," says David Ledebuhr, president and owner of Musselman Realty in East Lansing, Mich., and a regional vice president of the National Association of Realtors. "But buyers who come in and aren't comfortable won't stay long."
If you have a gas fireplace, turning it on right before the tour can give the house a little ambience, Libby says.
With a wood-burning fireplace, you've got to be a little more careful. If the house is vacant, don't chance it. But if you're still living there and will be there during the tour, it can be a nice touch.
Many times, sellers leave right before the agent and prospective buyers arrive. In that case, adjust the heat to a comfortable temperature and have the hearth set for a fire. Buyers feel the warmth and see the potential, and you don't have to worry about safety concerns.
3. Take advantage of natural light.
"Encourage showing during the high-daylight hours," Ledebuhr says. At this time of year, "if you show after work, you're totally in the dark."
Make the most of the light you do have. Have the curtains and blinds cleaned and open them as wide as possible during daytime showings. Clean all the lamps and built-in fixtures, and replace the bulbs with the highest wattage that they will safely accommodate. Before you show the house, turn on all the lights.
4. Get the windows washed.
"Buyers act on the first impression," Ledebuhr says. Windows are one thing that many sellers don't even consider. In winter, that strong southern light can reveal grime and make it look like the home hasn't been well-maintained.
5. Play music softly in the background.
To create a little atmosphere, tune the radio to the local classical station. Turn it down so that you barely hear it in the background. "It's soothing," says Libby, who finds that soft classical music tends to have the most appeal to buyers. "I think people tend to stay around a little longer and look a little longer."
6. Make it comfortable and cozy.
Set the scene and help the buyers see themselves living happily in this house. Consider things such as putting a warm throw on the sofa or folding back the thick comforter on the bed. Tap into "the simple things this time of year that make you feel like you're home," Phipps says.
7. Emphasize winter positives.
Is your home on a bus route or some other vital service that means it's plowed or de-iced regularly in bad weather? Be sure to mention that to the buyers.
8. Set up timers.
You want your home to look warm and welcoming whenever prospective buyers drive past. But you're not home all the time, so put indoor and outdoor lights on timers, Phipps says.
Look at the outside lighting around the door. Is there enough illumination to make it inviting? If not, either get the fixtures changed or have new ones added.
9. Make it festive.
Even if you're not actually going to be present, greet your buyers as if they were going to be guests at a party, Phipps says. Set up the dinner table with the good china and silver. Have a plate of cookies for your guests, some warm cider or even chilled bottles of water.
"First impressions are so powerful," Phipps says. "If it looks like you're expecting me and greeting me as company, that's a powerful impact."
10. Give the home a nice aroma.
The No. 1 favorite? "Chocolate chip cookies," Libby says. "Just about everybody likes that smell."
Other popular scents: cinnamon rolls, freshly baked bread, apple pie, apple cider or anything with vanilla, cinnamon or yeast.
"But don't overdo it, either," Ledebuhr says. Scented candles in every room or those plug-in air fresheners can leave buyers wondering what you're trying to mask.
Watch the bad smells, too. Pet smells, smoke and musty odors can cling to curtains and carpets. Ask your real estate agent or a friend to give it a sniff test. Then clean the house, air it out and replace drapes, carpets or rugs before you show it.
11. Protect your investment.
Some sellers (or their agents) will ask buyers to either remove shoes or slip on paper "booties" over their footwear before touring the house. Many buyers like that, Phipps says. It indicates a "pride of ownership and meticulousness that resonates with buyers," he says.
12. Use the season to your advantage.
While the holidays are over (and the Christmas and Hanukkah stuff should come down), you can still use winter wreaths and dried arrangements around the door to spark interest. "Anything seasonally appropriate is fun," Phipps says.
In the winter, with the leaves off the trees, you might also have a nice view that isn't as apparent in the spring and summer months. It's a great time to sell waterfront properties, Phipps says. "You can see the views better this time of year."
13. Consider the area.
In some parts of the country, such as ski areas or warmer regions where the snow birds flock, winter weather can actually be a selling point. "We're right in the middle of our selling season," says Libby, who is located in Vermont. "It's not always spring and summer."
This article was reported and written by Dana Dratch for Bankrate.com.
Friday, March 2, 2007
Key words do magic in selling real estate
I just read this article and thought it might be interesting to you...
It just talks about how the wording on real estate listings may affect
the end resulting sales price....
Have a great real estate day!!!!!
What's 'beautiful' worth? About $12,500
The right phrasing in real estate listings can speed a sale and even
boost the final price, a Canadian study says. And here's a tip: If you
must sell, don't put "must sell" in your ad.
By Marilyn Lewis
In real estate listings, what's the difference between describing your
home as "beautiful" versus "move-in condition"? About $12,500 on a
$250,000 home.
Professor Paul Anglin, a real estate economist in Guelph, Ontario, says
that homes described as "beautiful" in real estate listings sell for 5%
more while "move-in condition" has no effect on sale price.
Anglin and his colleagues from the University of Windsor and researchers
from Canada Mortgage and Housing examined about 20,000 real estate
listings and sales data in Windsor and Essex counties, Ontario, from
between 1997 and early 2000. Among other things, they studied how
listings' phrasing affected sale prices and the length of time it took
for the listings to close.
When speed is of the essence
Listings with the words "beautiful" or "gorgeous" sold 15% faster.
"Landscaping" in a listing hastened a sale by 20%. Describing a property
as in "move-in condition" quickened the sale by 12%. Calling a home a
"handyman special" cut sale time by half (researchers excluded listings
that used the term to describe a workshop or hobby area).
Other familiar jargon, such as "must see" or "vacant," or including the
information that a seller was moving, had virtually no effect on the
time before a sale.
The kiss of death appears to be language that reeks of desperation --
words such as "motivated" and "must sell." These slowed sales by 30%.
The term "ranch" house slowed sales by 10%. Properties described as
rentals (income producing) took 60% longer to sell.
Though Anglin assumes the basic effects he identified are universal, the
size of their impact will vary by locale, he says.
Do you believe in magic words?
Is there magic in these words? Does the concrete, visual nature of
"landscaping," for example, fire a buyer's imagination?
Stella Frize, a real estate agent in Cerritos, Calif., believes so. But
for her, the magic word is "turnkey."
"Anytime I see the word 'turnkey,' I expect that house is in immaculate
condition," she says.
Frize's business partner has his own favorite turn of phrase: "He always
writes, 'This could be the best buy in town.' He believes in this
wholeheartedly. We put it on every listing. It's like good karma for us.
We have sold 100% of our listings."
What surprises Anglin is that some hot words not only speed a sale but
also seem to raise the closing price. "If a house is described as
'beautiful,' everybody expects it to sell for a higher price," he says.
"The thing that surprised me is that it sells for a higher price -- and
faster. . . . I don't have a good explanation for it."
Maybe, he says, buyers' idea of beauty includes features such as
structural integrity, a good neighborhood and excellent upkeep,
qualities agents call "curb appeal," which allay the fears buyers
usually bring to big transactions.
The right words pay off in speed and money*
Term Effect on time until sale Effect on list price Effect
on selling price
Beautiful -15% +5% +5%
Move-in condition -12% Insignificant Insignificant
Good value -5% -6% -5%
Must see Insignificant +4% Insignificant
Starter home -9% -10% -10%
Vacant Insignificant -5% -8%
Rental property +60% -7% -9%
Handyman special -50% -30% -30%
Moving Insignificant -1% -1%
Motivated +30% -6% -8%
Landscaping -20% +5% +6%
Source: "House Prices and Time-till-sale in Windsor," professor Paul
Anglin, University of Guelph, Ontario *The study examined roughly
20,000 listings in Windsor and Essex counties, Ontario, from between
1997 and early 2000. The effects shown are averages; wide variations
appeared within categories.
Language + price = sale
None of this is to suggest that opting for "must see" over "must sell"
is all it takes to sell your house quickly and garner a higher list
price. The hot words have to be used accurately, and they must be
combined with the right price.
"The single most important message that a seller can send to a buyer is
their choice of list price," Anglin's study says.
Thus, the study does not illustrate a triumph of style over substance,
Anglin says, but how certain words, used accurately, can boost a
listing's power. Although "beautiful" seems to make a house sell faster,
using the term dishonestly can offend buyers and create distrust that
will backfire on a seller.
"The basic idea is that you are trying to find the one buyer who is
going to buy the house. As a seller, you hope they'll pay a high price
and quickly find your house. But usually it does not work that way,"
Anglin says. "It takes some time to find a buyer, and usually the buyer
does not want to pay a high price. The purpose of the listing
information is to attract not just any buyer but the buyers who would
like the house that you are trying to sell."
That's why, although "handyman special" may sound negative -- "most
people do not want to go anywhere near that place," Anglin notes -- it's
an efficient, positively framed means of isolating such properties for
the specific buyers interested in tackling fixer-uppers.
Size matters
Home size, too, is another important factor. The smaller the property,
the quicker the sale. One-bathroom homes sold 13% faster. Homes with
three bathrooms took 50% longer to sell. Homes with two stories or more
took more than 20% longer.
The size-speed relationship makes sense to real estate agent Joe Dobson
of Coldwell Banker Schneidmiller Realty in Coeur d'Alene, Idaho. Smaller
homes usually cost less, and there's more competition in lower-price
ranges, he says.
For the most part, Dobson says, his experience bears out Anglin's
research, with a couple exceptions. " 'Motivated,' that's been beat to
death. In a slowing market, every seller is 'motivated,' " Dobson says.
But sometimes, he says, desperate language can work when accompanied by
an emotion-laden explanation such as "must sell due to health reasons"
or -- a phrase Dobson likes but has found occasion to use only three
times in his 35-year career -- "divorce dictates dumping."
Call Roxanne for all your real estate needs:
619-778-0577
roxanneshomes.com
It just talks about how the wording on real estate listings may affect
the end resulting sales price....
Have a great real estate day!!!!!
What's 'beautiful' worth? About $12,500
The right phrasing in real estate listings can speed a sale and even
boost the final price, a Canadian study says. And here's a tip: If you
must sell, don't put "must sell" in your ad.
By Marilyn Lewis
In real estate listings, what's the difference between describing your
home as "beautiful" versus "move-in condition"? About $12,500 on a
$250,000 home.
Professor Paul Anglin, a real estate economist in Guelph, Ontario, says
that homes described as "beautiful" in real estate listings sell for 5%
more while "move-in condition" has no effect on sale price.
Anglin and his colleagues from the University of Windsor and researchers
from Canada Mortgage and Housing examined about 20,000 real estate
listings and sales data in Windsor and Essex counties, Ontario, from
between 1997 and early 2000. Among other things, they studied how
listings' phrasing affected sale prices and the length of time it took
for the listings to close.
When speed is of the essence
Listings with the words "beautiful" or "gorgeous" sold 15% faster.
"Landscaping" in a listing hastened a sale by 20%. Describing a property
as in "move-in condition" quickened the sale by 12%. Calling a home a
"handyman special" cut sale time by half (researchers excluded listings
that used the term to describe a workshop or hobby area).
Other familiar jargon, such as "must see" or "vacant," or including the
information that a seller was moving, had virtually no effect on the
time before a sale.
The kiss of death appears to be language that reeks of desperation --
words such as "motivated" and "must sell." These slowed sales by 30%.
The term "ranch" house slowed sales by 10%. Properties described as
rentals (income producing) took 60% longer to sell.
Though Anglin assumes the basic effects he identified are universal, the
size of their impact will vary by locale, he says.
Do you believe in magic words?
Is there magic in these words? Does the concrete, visual nature of
"landscaping," for example, fire a buyer's imagination?
Stella Frize, a real estate agent in Cerritos, Calif., believes so. But
for her, the magic word is "turnkey."
"Anytime I see the word 'turnkey,' I expect that house is in immaculate
condition," she says.
Frize's business partner has his own favorite turn of phrase: "He always
writes, 'This could be the best buy in town.' He believes in this
wholeheartedly. We put it on every listing. It's like good karma for us.
We have sold 100% of our listings."
What surprises Anglin is that some hot words not only speed a sale but
also seem to raise the closing price. "If a house is described as
'beautiful,' everybody expects it to sell for a higher price," he says.
"The thing that surprised me is that it sells for a higher price -- and
faster. . . . I don't have a good explanation for it."
Maybe, he says, buyers' idea of beauty includes features such as
structural integrity, a good neighborhood and excellent upkeep,
qualities agents call "curb appeal," which allay the fears buyers
usually bring to big transactions.
The right words pay off in speed and money*
Term Effect on time until sale Effect on list price Effect
on selling price
Beautiful -15% +5% +5%
Move-in condition -12% Insignificant Insignificant
Good value -5% -6% -5%
Must see Insignificant +4% Insignificant
Starter home -9% -10% -10%
Vacant Insignificant -5% -8%
Rental property +60% -7% -9%
Handyman special -50% -30% -30%
Moving Insignificant -1% -1%
Motivated +30% -6% -8%
Landscaping -20% +5% +6%
Source: "House Prices and Time-till-sale in Windsor," professor Paul
Anglin, University of Guelph, Ontario *The study examined roughly
20,000 listings in Windsor and Essex counties, Ontario, from between
1997 and early 2000. The effects shown are averages; wide variations
appeared within categories.
Language + price = sale
None of this is to suggest that opting for "must see" over "must sell"
is all it takes to sell your house quickly and garner a higher list
price. The hot words have to be used accurately, and they must be
combined with the right price.
"The single most important message that a seller can send to a buyer is
their choice of list price," Anglin's study says.
Thus, the study does not illustrate a triumph of style over substance,
Anglin says, but how certain words, used accurately, can boost a
listing's power. Although "beautiful" seems to make a house sell faster,
using the term dishonestly can offend buyers and create distrust that
will backfire on a seller.
"The basic idea is that you are trying to find the one buyer who is
going to buy the house. As a seller, you hope they'll pay a high price
and quickly find your house. But usually it does not work that way,"
Anglin says. "It takes some time to find a buyer, and usually the buyer
does not want to pay a high price. The purpose of the listing
information is to attract not just any buyer but the buyers who would
like the house that you are trying to sell."
That's why, although "handyman special" may sound negative -- "most
people do not want to go anywhere near that place," Anglin notes -- it's
an efficient, positively framed means of isolating such properties for
the specific buyers interested in tackling fixer-uppers.
Size matters
Home size, too, is another important factor. The smaller the property,
the quicker the sale. One-bathroom homes sold 13% faster. Homes with
three bathrooms took 50% longer to sell. Homes with two stories or more
took more than 20% longer.
The size-speed relationship makes sense to real estate agent Joe Dobson
of Coldwell Banker Schneidmiller Realty in Coeur d'Alene, Idaho. Smaller
homes usually cost less, and there's more competition in lower-price
ranges, he says.
For the most part, Dobson says, his experience bears out Anglin's
research, with a couple exceptions. " 'Motivated,' that's been beat to
death. In a slowing market, every seller is 'motivated,' " Dobson says.
But sometimes, he says, desperate language can work when accompanied by
an emotion-laden explanation such as "must sell due to health reasons"
or -- a phrase Dobson likes but has found occasion to use only three
times in his 35-year career -- "divorce dictates dumping."
Call Roxanne for all your real estate needs:
619-778-0577
roxanneshomes.com
Thursday, March 1, 2007
Private Transfer Tax Prohibition
LOS ANGELES (Feb. 28) – Because of a loophole in existing law, developers can impose private transfer taxes on unsuspecting home buyers. The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today announced it will sponsor SB 670 (Correa), “Private Transfer Tax Prohibition,” to eliminate this unfair tax on Californians.“Under current law, developers legally can impose private transfer taxes on home buyers at the time of purchase, with no oversight from government, no accountability on how the money is spent, and no limit on who can impose the tax or how many private transfer taxes can be added to a home when it’s sold,” said C.A.R. President Colleen Badagliacco. “Senator Correa’s legislation, which C.A.R. is sponsoring, will put a stop to this unfair, costly practice.“This is an alarming trend in California, one that gives non-government entities like developers the power to tax, while threatening the dream of homeownership by pushing prices higher,” she said. “While the highest private transfer tax rate we are aware of currently is 1.75 percent of the home’s value, under existing law there’s no upper limit.”A private transfer tax of 1.75 percent on a $500,000 home skims nearly $10,000, while inflating the cost of a home. Private transfer taxes also impact affordability in California. According to C.A.R. research, for every $10,000 increase in the cost of a home, another 200,000 potential home buyers are eliminated from the marketplace.“Developers levying private transfer taxes are free to use the money for any purpose including their own use,” said Badagliacco. “There are no controls in place over how revenue collected from private transfer taxes is spent. Under current law, the private transfer tax assessments may never expire, so that every time a home is sold, the tax is collected again. It’s time to eliminate this loophole.”SB 670 (Correa), “Private Transfer Tax Prohibition,” will next be heard in the Senate.(From www.car.org)
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