A Rising Tide Floats all Boats—How critical updates and a sound pricing strategy increase neighborhood demand

When people visit me for the first time, the first thing they ask is, why are so many houses for sale around here? Then they lean in and whisper, ‘what’s wrong with the neighborhood?’

It’s not just my neighborhood, Prospect Bay.  There’s lots of houses for sale in Queen Anne’s Colony, Southwinds and Cove Creek, just to name a few on Kent Island.  You probably see it where you are too. There are community amenities like golf, swimming, tennis, restaurants and fishing and crabbing too. Neighbors enjoy walking along the water, watching the sun rise and set.  The houses have big yards and lots of rooms and are in good school districts.

So why aren’t these houses selling like hot cakes?  It’s all about timing.

Between 1999 to 2006, the housing market was BOOOOOMING. Lots of homeowners were able to get a loan (and another, and another) pretty easily. Even if they had so-so credit or not a lot of money for a down payment. People were buying houses that were overpriced. 

Between 2006 and 2013, the nation learned the hard way that this pattern could not continue. The banking and housing crisis froze up all the mortgage money…and money for home renovations.  A good portion of these houses were bought and built in the 1980s. Now, they weren’t getting updated because their owners were saving for retirement and the kids’ education.

Cut to 2015.  The housing market is back.  A lot of the folks who bought their home in the 1980s currently have two household members living in houses with 4+ bedrooms. Now they’re ready to sell… at the price they were told they could sell it for back in the early 2000s. (By the way, that asking price can sometimes be upwards of 20% over current market value.)

As you’ve probably already guessed, they’re having problems getting an offer.

Here’s where I become a mind reader.  This is what everybody is thinking.

Sellers:

“This house was worth X when I re-financed it in 2000 and that’s the price that I’m listing it for.”

“I don’t have a mortgage, so I’ll yank it off the market and try again later this year.”

“I’m not investing a bunch of money in a house I’m leaving, so I’ll take it off the market.”

Buyers:

“The realtor says a good price is 10-15% below what they want.”

“I love the location, but the house needs a ton of updates.”

“There’s a bunch of homes for sale around here. Something must be wrong.”  

“Let’s go look somewhere else.”

How can sellers in these communities sell their homes? 

Here are two approaches:  Strategic Renovations and/or (preferably AND) a Sound Pricing Strategy.  These two remedies can really boost your home’s value AND decrease the time it’s on the market. 

Remember, A Rising Tide Floats all Boats.  Property values go up in the entire community as it becomes more in demand.  Your home has to have the updates and/or the asking price that buyers want.

Here are some strategic renovations that can increase the value of your home:

Let’s start in the master bathroom. Remove that carpeting that’s been harboring yours’ and the dog’s mold and bacteria for years. Whatever tile is under it is way better than that carpet! That elevated, colored tub with the side jets…replace or remove it. In the kitchen, swap out that brass hardware for a nickel finish and paint your oak cabinets white. Be sure to update those counters too! 

Here’s where it gets kind of personal.  Décor.

Please, I beg you, remove the wallpaper borders. It’s a super easy way to make your home more appealing to today’s buyers. That adobe brown paint scheme from Pantone’s 2001 Color of the Year has to go.  Please, please take down the heavy drapes so people can see outside to your wonderful yard.  Always expose your hardwood floors. Don’t hide money under a bunch of old rugs!

Strategic renovations and updates can help make up that gap between the asking price and market price.

The second approach is a Sound Pricing Strategy.  Here’s where your realtor can help.  For example, did you know that Homeowner’s Association (HOA) Fees are factored into a buyer’s affordability determination and their monthly payments?  Sellers need to know these and other facts to realistically price their homes for quicker sale. A buyer may lean towards a more expensive home in a neighborhood without an HOA, despite having no real amenities in the community.

As a realtor, one of the biggest privileges of my life is to fulfill people’s dreams as they look to sell and move onward or buy and put down roots near the Bay. If you catch me in the right mood, I may even help you remove that wallpaper border! For more advice on buying and selling your next home, contact me. 

Cheers to the New Year!

Courtney