One of the first things we discuss with prospective buyer and seller clients is agency; who we work for during the real estate transaction. It is actually a New York State requirement that all real estate salespeople discuss agency at first substantial contact. Ensuring our clients understand agency and who we represent is extremely important to us so we thought we’d take a few moments to explain it.
For the last two and a half years, the local real estate market has been heavily weighted towards sellers, and the Capital Region has seen home values increase by 15-20%. Multiple offers have been the norm, and to be competitive buyers often needed to pay cash, offer well over asking, be willing to waive structural inspections or waive appraisal contingencies. Even though interest rates were at historic lows, the lack of inventory thwarted people eager to move from finding a house, and after making offers and losing out to other buyers multiple times, even the most optimistic buyer found themselves disheartened. So while it was a great time to sell, it was a tough time for most buyers, and particularly brutal for anyone trying to buy their first home.
During our initial meetings with home sellers, one of the topics of conversation is what needs to be done prior to listing. Here's the handy checklist we share.
Before you begin, you will need to change your perspective from that of a home owner, to that of a property seller. Most of the suggestions below are relatively inexpensive and can primarily be completed simply with some elbow grease. Allow yourself ample time to tackle this checklist so that you are ready for showings when the house hits the market.
Since we sell about 50-60 homes a year, and about half of those sales are to buyer clients, we attend roughly 25 home inspections each year (which means 250 since opening McSharry and Associates and at least double that if you count Patrick’s first 16 years in the business) so we have been to a LOT of inspections and we are big fans! A home inspection is the buyer’s best opportunity to uncover any potential issues AND to learn about their prospective new home.
Buying and selling real estate comes at a cost and it’s important to know what your expenses will be before you begin the process. While we will give you a brief summary below, please make sure to consult with your specific service providers to ensure you have a thorough understanding of the fees associated with your transaction.
Real estate agents, in the Capital Region, use the same boiler plate contract for the purchase and sale of real estate. This enables us to quickly put together an offer on behalf of a buyer as well as easily explain the details of an offer to a seller. We make sure to tell our clients that once the terms are fully agreed upon and both parties have signed the contract, it becomes a legally binding document, so it’s very important the parties understand what they are signing. Both parties are strongly encouraged to have a real estate attorney review and approve the contract during a standard attorney review period (which is outlined in the contract) but we want our clients to have a strong grasp of what they are agreeing to well before they talk with their attorney.
Since we currently have both a townhome and a condo listing, we thought it would be a good time to provide a brief primer on the difference between the two homes and the ways in which they are similar. A condominium is akin to an apartment in that it is in a building with several other units. A townhouse shares a wall or walls with neighboring properties. But there’s more to it than that.
Buying a house these days is tough. There are more buyers looking than there are homes on the market. As a result, there simply aren’t that many options to select from and when you find a house you like, chances are you aren’t the only buyer interested so you find yourself having to decide quickly whether you want to jump into a bidding war. While we are a bit biased, we think now more than ever buyers need to have a seasoned professional on their team to help them navigate the process.
Here are some of the tips we have been sharing with our buyer clients to increase the odds that they are the winners of a bidding war.
Another phenomena that we credit to HGTV is the increase in the number of flipped homes available for sale. Flips are homes that someone purchases with the intent to renovate and sell, at a profit. In the past, they were few and far between, but now it seems everyone and their cousin is buying and renovating homes or at least considering getting into the business.
Flipped listings can be a sign of a healthy community as flippers are drawn to homes in locations with a strong real estate market. For buyers, it can be very appealing to purchase a home with a brand-new kitchen, updated baths, refinished floors, etc. We don’t advise our buyer clients to avoid flips, but we do suggest they tread carefully and thoughtfully. And we speak from personal experience, as our current home was purchased, renovated top to bottom, and listed by a local contractor.
On this late January day, with snow coming down outside my window, I am thinking about gardening. For the first time since moving to this house, we had a vegetable garden last year and I am planning to double the raised beds and build more permanent fencing around them. I am also excited to order and plant new varieties of dahlias and zinnias as their splash of color lasts well into the fall.