Bob Smith

No Stage, No Play

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Although, in Shakespeare's words, "All the world's a stage," in the world of theater, a play is rather hard to enact without a stage. It's been tried over the years, but traditional theatergoers prefer a conventional stage.

And so do homebuyers.

GREAT. Yet another blog on staging, you say. One more appeal to get sellers to pay money they don't have to sell their home in a market that's upside down like the Poseidon. Why bother? Haven't we heard it all?

In the immortal words of Bullwinkle the Moose, "BUT WAIT! There's more!"

The three pillars of a successful sale are: Preparation, Promotion and Price. Of the three legs, price is without question the most important of the three. Using the Pareto Principle, price actually accounts for 80% of a successful sale. Currently, discount pricing reigns supreme as REOs are flooding into the market like water through the cracked levees of New Orleans. How can a normal seller HOPE to float a normal sale against the incoming surge of lower priced homes?

Believe it or not, there are buyers out there who don't want an REO.

They aren't "handi" types. They don't have the will or desire to "make the house their own." They can't "see the potential" and quite frankly, aren't interested. And not everyone has the Martha Stewart gene for using a twisted fork as a curtain tieback. Many of these buyers are actually willing to pay more to buy a nice house that's ready to move into.

Scratch most REOs off your list.

This is where an understanding of buyer psychology is critical. Sellers need to realize that before buyers visit their listing they've already been shopping. And not for homes, either. They've been to Pottery Barn, Ashley Furniture, Crate & Barrel and more. They already have all the furnishings picked out for their new digs. They know what colors they like. You get the idea. Savvy sellers and their agents understand what buyers are looking for.

A place that ALREADY feels like home.

THEIR home. The one they want to live in. A home that resonates with them from the very first moment they walk through the front door. A home that has effectively been prepared to be a "stage" upon which they can live out the drama of their lives. Make no mistake about it: when you stage your home, you are trying to connect with the psyche of potential buyers. You are trying to manipulate their emotions and excite them into action. Just like a fine actor works the audience when you go to the theater.

If a seller wants to compete in today's market with REOs and come out ahead, staging is not an option. Sellers have to remove Price as the primary consideration -- in other words, they have to attack the 80% (Price) with the remaining 20% (Preparation and Promotion): and they have to win.

And they can - if done well. I‘ve actually seen buyers walk around and stroke the furniture in a well staged home. That caress is a touch of identification. New home builders know this all too well - if you've been to one of their showrooms lately you'll understand that even in these depressing times, their model homes sizzle.

Only good stagers need apply.

This is not for the faint of heart or the not-so-skillful. You need a stager who is at the top of their game and understands the psychological makeup of the buyers you are targeting. One with an eye for making rooms pop. If done right, the staging in a seller's home will resemble a Tony Award winning production, alongside of which the "reality shows" of REOs will pale in comparison. And get equally poor ratings.

No stage? No play. No sale, either.

Bob Smith. GRI, ABR, HHS

Spring Cleaning Checklist

With spring selling season arriving, take the time now to polish your home to perfection.

1. Let the sun in. Make any room look brighter with clean blinds and windows. Mix a solution of one part white vinegar to eight parts water, plus a drop or two of liquid dishwashing liquid, for a green window cleaner. Spray on and wipe with newspaper to avoid streaks. (Washing on a cloudy day also reduces streaking.)

Showing tip: Replace heavy drapes with lightweight shears during warmer months to give a room a brighter, lighter feel for prospective buyers.

2. Sniff out smells. Check the drip tray underneath your refrigerator and wash out any standing water from

defrosting. Remove inside odors by washing the inside of the fridge with a baking soda and water solution. Boil lemon juice in your microwave and add it to your dishwasher to eliminate bad smells. Also, put the lemon rinds down the disposal. Add activated charcoal in the fridge to keep odors at bay.

Showing tip: Make the fridge smell fresh instantly with cotton balls soaked in vanilla extract or orange juice.

3. Make your bed better. Vacuum mattresses and box springs, and then rotate and flip over. Do the same for removable furniture cushions. This is also a great time to wash or dry-clean the dust ruffle and mattress pad.

Showing tip: Add new loft to a lumpy comforter by having two people vigorously shake the quilt up and down to redistribute stuffing.

4. Clean those coils. Improve energy efficiency by vacuuming grates, coils, and condensers in your furnace, stove, and refrigerator (either underneath or in back). If a vacuum won't reach, try a rag tied to a yardstick.

Showing tip: If during the Summer, shut some air conditioning vents on the first floor or basement so that more air will reach and cool the second floor. Reverse the process in winter for heat vents.

5. Wash the walls. Grease, smoke, and dust can adhere to walls and make even the best decorating look dingy. Wash walls using a general-purpose cleaner with hot water. Start at the top of the wall to avoid drips and in a corner so that you wash one wall at a time. Rinse the mop head frequently in clean water. And don't press too hard because flat latex paint won't absorb too much water.

Showing tip: Resist the temptation to spot-clean walls since it will make the rest of the wall look dingy.

From Buyers, I hear a number of thoughts as to why they "are not ready yet ..." to buy a new home.

The number one reason usually is "we have to sell our home first". This is certainly understandable. NO one wants two mortgages unless you have won the lottery and want the tax deduction. I think most sellers are running so hard, nose down and tail up as we say, that they do not realize that NOW is the time to sell and then buy, not in September, October, etc.

Consistently for years we always see the greatest number of buyers coming to the market in April, May and June. From then on, the numbers of buyers drop off until December. After December we have another three months before the market again picks up. We see this cycle every year.

Knowing the buyers market has a cycle it goes through; sellers need to have their home drive up friendly and ready to show. Fresh paint, clean carpet, flowers in the yard, weeds removed and grass fertilized ... all of the things that need to be done to a home to make it show good if not well( look on my website for tips on making your home presentable to sell).

Bottom line:

Now is the time to sell. If your home is presentable, clean and organized and priced properly, it will sell and you're free to move on to buy your new home.

Interest rates are about as low as they are going to be... what better time is there then now to buy? IF the November elections throw the market into a crisis, the former seller may not be able to male a move for a number of reasons not his choosing.

Mortgage money IS available to buyers with good credit.

Market prices are only 4% lower then last year so home prices are holding.

Choose a home closer to work or your family. Now is the time to sell with interest rate as low as they are ...

Do not waste your time trying to sell the house yourself. There is not enough time in the day to do your job and sell your house. An experienced real estate agent knows what your home is worth and the best way to sell it. There is just one of you selling the home and there are over 40,000 realtors in the North Dallas market who have interested clients and can help make the sale. Even more important, do not waste the market's time in trying to make the sale. If you are not making milestones you can track in getting it sold, the buying market will discount the house as either over-priced or something is wrong with it. Now, you may not sell it at all... at least this year.

Go to my website and read the article "Seller's Secrets", then call me and let me walk you through the maze of selling your home. www.exceptionalhomesonline.com

This article published on the internet from CNN is stating that this may be the best time to buy a house in more than four years.

Many future home buyers are sitting on the fence waiting for a better deal to come along and they will lose out. The interest you pay on your mortgage is the majority of the monthly house payment for the first 15 or so years of a 30 year mortgage. Save your family a ton of money and act now while rates are very favorable as they may go up near the end of the year.

Per CNN - "Home prices have dropped so quickly and so far that valuations - the difference between what a home should cost and its actual price - are the lowest they've been since 2004, according to a report.

The Cleveland-based bank National City Corp., together with financial analysis firm Global Insight, revealed Tuesday that more than 88% of the 330 housing markets surveyed showed price declines and improved affordability during the last three months of 2007.

"Housing valuations are almost back to long-term norms," said National City's chief economist, Richard DeKaser. He called current affordability "the best in the past four years."

But DeKaser cautioned that home prices could fall even further.

"This isn't to say home price declines are over," he said. "We could move below historic norms. By the end of 2008, housing markets could be broadly under valued."

Prices still improving (Notice the Dallas market below)

There are still 21 housing markets, or 6% of those surveyed, that are severely over valued, including Atlantic City and Madera, Calif. That's down from 56 overvalued markets at the peak of the housing bubble in 2006.

The report compares actual median home prices with what the authors determine are proper home values based on population density, relative income levels and interest rates, as well as historically observed market premiums or discounts, to determine whether markets are over or under valued.

The report also factors in market intangibles that make some areas more desirable places to live, and more expensive.

"Declines are no longer confined to once-frothy markets," said DeKaser.

The survey covered home valuations during the last three months of 2007, but DeKaser pointed out there's reason to believe that valuations are even more favorable for buyers today.

Price declines have continued into 2008 and interest rates, although they have inched up lately, have been steady or lower compared to late last year. There have even been wage gains; personal income rose 0.5% in December. Soaring foreclosure rates have added inventory to many housing markets, depressing home prices further.

The biggest gains in affordability occurred in California, Michigan and Florida, which are areas that have also been some of the hardest hit by foreclosures. Those states registered 43 of the 50 biggest price declines.

Bend, Ore. currently tops the overvaluation list. Home prices there were judged to be about 59% higher than their fair-market value. Miami, despite a median home price decline of 5.7% last year, is the most overvalued big city, by 44%. All the best bargains were found in Louisiana and Texas. Houses in Houma, La. were under valued by 31.2%, according to the report. Dallas was the most undervalued big city, by 30%."

Give me a call and let me set up my MLS search to send you properties based on what your families would like to have in their next new home - Bob @ 214-263-0816.