November 2006
|
In this Issue: Should You Try to Sell During the Holidays?
|
|
Should You Try to Sell Your Home During the Holidays?
When thoughts turn to turkey, mistletoe and cozy evenings by the fire, the last thing people want to do is get out boxes and start throwing things in them — except, of course, when they're wrapping last-minute holiday gifts. Moving seems like too much of a hassle during the holidays. If ever there was a time to take your house off the market and let your listing "refresh," this might be it.
With the housing market having cooled off this year, you might make better use of the time during the holidays to re-assess your home and whether it's priced too high for current market conditions, and start fresh after the holidays.
Use the time while your house is off the market to create a more aggressive marketing plan, one that throws your net as wide as possible. Yes, you or your real estate agent should be contacting other real estate agents who have customers in the pipeline, but you should also be canvassing remodelers, neighbors and others who might know someone who'd like to own their own home.
With that in mind, spend some time cleaning and decluttering your home and keeping the landscape trimmed, even if you don't want to spend the money and effort to replace outdated items that buyers care about, like flooring, countertops, roofing and appliances.
Thinking of Remodeling? Think GREEN
Here are some green ideas, ranging from inexpensive to long-term investments: Weatherstripping Applying this around doors and windows can help reduce drafts and keep heat inside the home. Any hardware store sells it. ''It's not so fun or sexy,'' says Jennifer Roberts, a green expert and author, ''but it makes a difference.'' Lighting A 20-watt compact fluorescent light bulb provides the same amount of light as a 75-watt incandescent bulb. Long-term savings are about $25 when using the fluorescent bulb. They are widely available at retail stores. Paint The U.S. Environmental Protection Agency has labeled paint the leading cause of health problems attributed to polluted in-home air. No- or low-VOC (volatile organic compounds) paints are considered safer because they release lower levels of toxic emissions. They can be found at specialty paint stores, such as Benjamin Moore or Kelly-Moore, or by using the Accessgreen directory. Insulated Curtains Insulated and thermal curtains help block a home's heat from escaping through glass, especially single-pane windows. In turn, this can reduce energy bills. They are available at most home and department stores. Duct Leaks Few owners realize about 30 percent of cold or hot air escapes through leaky ducts, says Brian Gitt, executive director of Build It Green. Heating and air-conditioning suppliers usually have technicians that can test for leaks. Those leaks then can be fixed with sealant available at hardware stores. ''That's a low-cost item that definitely yields dividends,'' Gitt said. Appliances By now, most consumers know the benefits of EnergyStar appliances, which use less energy consumption over the long term. These are widely available at retailers. ''Side by side, you might pay more up front for the energy-efficient appliance,'' Gitt said, "but you will make that money back in two to three years, if not sooner.'' LaundryPure No laundry detergent or hot water is needed with this new appliance, which attaches to a standard washing machine. New to the market, the product comes from Advanced Environmental Systems. It works by injecting oxygen, peroxides and other gases into the wash water line and lifts dirt and odors from clothes. Insulation Blow-in-type fiberglass insulation has no added formaldehyde and contains 25 percent post-consumer recycled content. Heating Radiant floor heating systems pass heat under the floor through tubes. The even distribution means, on average, thermostats can be lowered 2 to 4 degrees from a forced-air heating system, saving 10 percent to 40 percent on energy costs. ''It's much better than air blowing,'' says Gary Gerber, whose company, Sun Light & Power, is one installer of this system. ''Who knows what else — dust, dirt, whatever — is blowing around, too.''
Don't Try to Time the Market
There are times when the economy is brisk and everyone feels confident about his or her prospects for the future. As a result, they spend money. People eat out more, buy new cars, and…They buy houses!
Then, for one reason or another, the economy slows down. Companies lay off employees and consumers are more careful about where they spend money, perhaps saving more than usual. As a result, the economy decelerates even further. If it slows enough, we have a recession.
During such a time, fewer people are buying homes. Even so, some homeowners find themselves in a situation where they must sell. Families grow beyond the capacity of the home, employees get relocated, and some may even find themselves unable to make their mortgage payment - perhaps because of a layoff in the family.
Supply and Demand When the supply of available houses is greater than the supply of buyers, appreciation may slow and prices may even fall, as happened in the early eighties and the early to mid-nineties.
If you are lucky enough to purchase a home during a slow period, you can be reasonably certain the economy will begin to show strength again. At times, real estate values may even surge drastically. In many regions of the country, this is precisely what occurred in the late eighties and nineties.
Market Timing is Difficult
Why You Should Not Wait Plus, "timing the market" generally works best for first-time buyers. People who already have a home usually need to sell it in order to buy their next one. If a "move-up" buyer wants to buy a home during a depressed market, that means they usually have to sell one during the slow market, too. If a seller wants to sell his home to take advantage of a "hot" market when prices are fairly high, they generally have to buy their next home during that same hot market.
It Tends to Equal Out. The business cycle can change over time. Since 1983, we have had two fairly long expansions with only a slight recession in between each. You would not want to wait nine years to buy a home, would you? You could miss out on a substantial amount of appreciation by waiting, and end up paying much higher prices.
|
