How effective is print advertising?

I was working on a continuing education class today when I found a nugget of information that was too startling not to share.

Before I share the statistic, let me share a little background. Whenever Luis and I list a house, we always talk with the potential seller regarding print advertising. We do pretty much no print advertising. There is a reason for this. Three years ago, we did quite a lot. However, we decided to keep some statistics ourselves on the return on investment for our print advertising. Care to guess what that return was?

ZERO

It was rather surprising and sobering, and we consequently discontinued doing print advertisements for ourselves and special ads for our properties. We warn our sellers that we do not do prints ads for this reason. Buyers are not looking for homes in the paper; only the sellers look there. We don't even have a good return on open house advertising in print. At the last two open houses we hosted, one had zero percent attendance because of the print ad run by our broker and the other had only one couple out of six list "paper" as how they heard about the open house.

So, today when I found the following statistic, it both surprised me and made perfect sense.

More buyers found the home they actually purchased from a yard sign rather than from an advertisement in a home magazine.

1%of buyers found the home they bought through a home magazine. 14% found the home they bought through the yard sign.

It is interesting food for thought for home sellers, is it not?

Did you get these chain emails?

There have been a couple email rumors going around regarding new federal legislation and the potential consequences for home owners. We thought it would be helpful to address these issues on our blog today.

Rumor: The new federal health care bill requires an additional 4% transfer tax on homes sold.

Fact: The new federal health care bill has a 3.8% Medicare tax for some high-income households with net investment income.

Starting in 2013, this tax applies only home households with adjusted gross incomes of over $250,000 and would only be charged on home-sale proceeds that exceed the capital gains exclusion of $500,000. If filing individually, these figures change to incomes over $200,000 and home sale proceeds over $250,000.


Rumor: The energy bill that Congress is working on would require home sellers to obtain an energy audit or make energy retrofits before selling.

Fact: The bill as written at this point would require new construction to be energy-labeled, but it does not allow states to require new ratings when the homes are sold.

FactCheck.org did a nice job answering this question with references on their website earlier this year.

If you come across any other rumors about these issues or others regarding changing rules for selling or buying a home, please ask our Facebook page, leave a comment, or drop us an email. We will check into it for you. We are here to help with all types of real estate questions here in the Green County area.

Carbon Monoxide Detectors

Carbon monoxide detectors are a good thing to have in a home.

Carbon monoxide is an odorless, colorless gas that is produced when a fuel is burned. Natural gas, wood, oil, liquid propane - all produce carbon monoxide. If the ventilation system for your furnace, heating stove or fireplace become blocked or stops working properly, carbon monoxide can seep in to your home without you ever being aware. This gas can be deadly, so a carbon monoxide detector can truly be a lifesaving device.

Carbon monoxide detectors are much like smoke detectors. They can be battery operated or electric, either hard-wired or plug-in. Like smoke detectors, it is recommended to have one on every level of your home. Placement in the hallway near any sleeping areas is highly recommended. The cost generally runs about $35-45 per detector. Dual smoke detector/carbon monoxide detectors are available as well for a little bit more.

Starting February 1, 2011, carbon monoxide detectors will be required in all residential properties. Now, the government is not going to come in to existing homes to insure that these are present and there is no penalty for non-compliance, but all home inspectors must check for carbon monoxide detectors effective that date.

Carbon monoxide detectors are good things for every home owner to have, but anyone who is considering selling a home should be aware of the changing laws. Pick up a couple detectors now and save yourself trouble later. Anything home sellers can take care of a simple fix to prevent a home buyer stressing over the inspection report, it is a good thing.

Hopefully that is the only thing that carbon monoxide detector will ever have to save, but it is good to know that if you need it, the detector will be there for you.


Image from First Alert.

Tips for selling in today's market

Today's market is a competitive one with a larger than normal inventory. The question for sellers today is how to make their home stand out from the competition?

This video has some tips on this subject:

Current Homebuyer Tax Credit

New $6500 Tax Credit for Current Homeowners

Are you eligible for the $6500 tax credit? We covered the details in December, so take a look if you want to check. There are 73 days and counting left to get an accepted offer.

You must have an accepted offer in place no later than April 30 and close on the home no later than June 30 in order to qualify for this tax credit.

Curb appeal in Winter

The days are growing longer, but we are still in the depths of winter here in Green County. Helping a home to have some curb appeal this time of year is a bit harder than in the summer months with gardens blooming, but it is still possible to do things to help.

~ Clear your driveway, sidewalks and porches of all snow and ice. Get out there right away after a snow storm to clean them off. If you do get a buildup in ice in spots from driving into the garage or people walking on the sidewalk, pick up a scraper at Farm & Fleet or Ace Hardware to clean that off. If buyers worry about slipping as they approach a home, it alters how they see the inside.

~ If you still have any holiday decorations or lights up, remove them immediately. By now, these are stale decor and they give the impression of a home that is not maintained as quickly as it ought to be.

~ Look up. Do you have huge icicles hanging down from your eaves or other issues on the roof or gutters? This isn't the best time of year to get up there to take care of an ice dam, but you can at least get out there with a roof rake if needed.

~ Store away that garden equipment and patio furniture. Having the chaise lounge sitting under a mound of snow on the deck doesn't remind people of summer entertaining. It can, however, make some people think you don't maintain your possessions.

~ Make sure all your exterior lights have working bulbs. This helps make your property more inviting for evening showings and helps people see the back yard.

~ Take advantage of whatever winter greenery you do have in your garden. If your evergreens are bowing low under the weight of snow and ice, get out there and shake them free. People are drawn to natural beauty, and while a dusting of snow on everything is lovely, it isn't so attractive to see bushes looking like they will collapse.

~ Throw some greens, ribbons or holly into your porch planters. These decorations look fresh all winter and help add some interest outdoors. Consider a decorative basket of pinecones next to your front door or create a small still-life decoration using those old snowshoes. Don't go overboard. Toss out the worn out welcome mats and get some neutral mats in modern styles.

~ Don't keep the snow shovels and bucket of salt right by the door. Put these into the garage or basement after use. It might not be as handy, but these things are not appealing.

~ Make sure your windows are sparklingly clean. It will show if they aren't. Also check your blinds and curtains. These are visible from outside, so make sure they are lined up in a nicely symmetrical manner. Symmetry makes things more attractive to the human eye, so don't have the blinds in one bedroom half open and fully open in the room next door. From the outside, it is a dissonant chord.

~ Encourage the kids to play in the back yard. The unbroken blanket of snow on the front grass is more appealing than one that has been crisscrossed with tracks, snow angels and half-created snowmen. As a mom, I know this is a party-pooper thing to say, but these things are visually distracting.

About that new $6500 tax credit

Much press has been given to the first time home buyer's tax credit, but the newest incarnation of the tax credit includes another very interesting element - the $6500 tax credit available to current home owners.

Not every current homeowner will qualify for this tax credit. Here is a summary of who is eligible:

• You have lived in the home your currently own for at least five consecutive years of the last eight years. This is very important detail that can help those home owners who have had to relocate for work purposes and who have been unable to sell their former home yet.
  
• You are purchasing a home for your primary residence. It does not matter if you are purchasing a traditional single family home, a condo, a townhome or a half duplex as long as it will be your primary residence. Investment and vacation properties do no qualify.
• Your income must be less than $225,000 for a married couple or $125,000 for a single person to qualify for the full tax credit. If your income is between $225,000 and $245,000 for a married couple or $125,000 and $145,000 for a single person, you will receive only a partial credit.
• The home you are purchasing must be less than $800,000.
• You must have an accepted offer to purchase no later than April 30, 2010 and you must close on the property no later than June 30, 2010.

As with the first time home buyer's tax credit, the amount of the credit is based upon the purchase price of the home. The tax credit will be equal to 10% of the purchase price of the property up to a maximum of $6500. If you are purchasing a property that is less than $65,000, your tax credit will be 10% of your purchase price only.

You will need to live in the home for at least three years. If you live there for less than that, you will need to repay the full amount of the credit.

This tax credit is exciting because it helps not just young families move up in their homes as many of these programs normally do, but it also help empty-nesters and retirees who want to downsize.

Should you move up?

The current dip in home prices along with historically low interest rates has some owners considering whether or not now is the time to move up to their next home. Should you?

There is no right answer for everyone when it comes to this question. Instead, there are few things home owners should think about before making this decision:

• The lower prices that are making homes seem more attractive to you also mean that your home will sell at a lower price than it would have two years ago. If you have owned your home for less than four years and did not put much money down, you might not be able to sell it for enough money to cover your mortgage and closing costs while still having enough to cover moving costs, closing costs for the new home and a downpayment.
  
  
• How much equity do you have in your home? If you have owned your home for a number of years, you might have a lot more equity than you realize. We'll be happy to do a market analysis to see what your home is worth in today's real estate market. Equity can become cash for your down payment, helping you move up without having to increase your mortgage load.
  
  
• Can you afford a larger mortgage payment? Most people move up the rungs of the ladder of home size and expense. You need to take an honest look at your finances to be certain that you can cover the increased costs of the larger home. The current very low interest rates do help buyers purchase more home for the money. However, the increased costs do not only include the mortgage payment. Do not forget to take into account larger property tax bills, home owners insurance rates and, very often, higher utility bills.
  
  
• Is your neighborhood still a good fit? If you live close to work or the children's schools, do you want to move? If your job or lifestyle has changed since you bought your home, you might considered looking at a location that better fits your current needs.
  
  
• Have your outgrown your current home? Has it outgrown you? Empty nesters might considering downsizing to a smaller yet more elegant home. Young families might be looking for something with a larger yard or more bedrooms. Remodeling is sometimes a more perfect solution than moving, but not everyone wants to tackle a remodeling project and not all yards will accommodate expanding a home.

There are many things to consider when thinking about moving up to another home. Give us a call if you would like to talk about your options here in Cheese Country. We would never pressure a homeowner to sell, so do not worry about calling just to talk.

First Impressions

"You never get a second chance to make a first impression."

Spare me the cliche, right? Or maybe not. Cliches get to be cliche because there is a strong grain of truth in them. This one is no different.

First impressions matter. It is human nature to judge, and most people judge very quickly. Many people will decide to buy a home after spending less than 20 minutes in it. Curb appeal is important because people will judge a home's interior based upon how it looks from the street as they drive by.

Fair or not, those are facts.

The feeling that a buyer gets upon opening the door and walking in for the first time is one thing that we never get a second chance at. They will judge the entire home based upon what they see and feel in those first few moments. Knowing this, pay attention to how a buyer enters your home.

What door are you having realtors and buyers enter through? Sometimes, sellers will have us enter through a back door, garage or a side door because it is easier for them to have the lockbox there. It may be easier, but is it the best place for a buyer to enter and fall in the love with your home?

Think about the emotions evoked as someone walks up to the entrance. If you were a buyer, how would it feel to walk up the utilitarian back entrance looking at the kids bikes and toys under the staircase compared to walking up the wide front stairs and porch while looking at the blooming flowers in the front gardens?

Does your door need a coat of paint? What is the condition of your doorknob? A rattling, loose doorknob and a shabby front door give the buyer the idea that the house has not been well maintained and needs work, even if it is not true.

What greets the buyers inside the home? If you bring the buyer in through the garage or back, they might be greeted with a view of your mudroom or laundry room. Compare this to the feeling of walking in your foyer and front entrance. Which is a better first impression?

Try to put yourself into the shoes of the buyer as you get ready to sell your home. Ask your realtor for help on creating a better first impression. It can be hard to look at our homes through new eyes, but give it a try. It can help your home show better and sell faster.

Moving Tips for Sellers

Real estate is moving and homes are selling here in the Green County area. If you are one of the home sellers in the area, here are some tips for getting ready for your upcoming move:

1. Give your forwarding address to the post office, usually 2-4 weeks ahead of the move.

2. Notify your magazine subscriptions, charge cards, and bank of the change of address.

3. Develop a list of friends, relatives, and business colleagues who need to be notified of the move.

4. Arrange to have utilities disconnected at your old home and connected at your new one.

5. Cancel the newspaper.

6. Check insurance coverage for moved items. Usually movers only cover what they pack.

7. Clean out appliances and prepare them for moving, if applicable.

8. Note the weight of the goods you’ll have moved, since long-distance moves are usually billed according to weight. Watch for movers that use excessive padding to add weight.

9. Have a “first open” box with the things you’ll need most—toilet paper, soap, trash bags, scissors, hammer, screwdriver, pencils and paper, cups and plates, water, snacks, and toothpaste.

Plus, if you’re moving out of town:

1. Get copies of medical and dental records and prescriptions for your family and your pets.

2. Get copies of children’s school records for transfer.

3. Ask friends for introductions to anyone they know in your new neighborhood or look for people from the area on social networking sites like Twitter and Facebook.

4. Consider special car needs for pets when traveling.

5. For safety's sake, let a friend or relative know your route.

6. Carry traveler’s checks or an ATM card for ready cash until you can open a bank account.

7. Empty your safety deposit box.

8. Put plants in boxes with holes for air circulation if you’re moving in cold weather.

adapted from the National Association of Realtors.

Moving is never simple, but hopefully with a little forethought, it can at least go smoothly for you.

Selling to a first time buyer

Yesterday's post included tips for first time home buyers. In today's market, the first time home buyer, someone who has no home to sell, is a very desirable buyer for many sellers.

The question is then how can sellers make a home more appealing to first time home buyers? It helps to know what first time buyers tend to look for in a home.

According to statistics from the National Association of Realtors, over 80% of first time home buyers want a home that is already in move in condition. These buyers want to be able to move right in without having to spend time or money getting a home in to shape.

This means that a seller should spend a little time before listing make sure that all the little things are taken care of. Take the trim that has been sitting in the garage and put it on to walls in the new family room. Put the quarter round in the dining room where you removed the carpet and exposed the hardwood floors. Replace the missing outlet cover, patch the hole in the wall from the doorknob, paint the dingy kitchen, clean the grout in the bathroom.

Many of these projects take more time than money. Take a look at the "honey do" list that has been hanging around your bulletin board for a few years. Are there some easy or inexpensive projects you can cross off? It may seem counterproductive to spend time and money fixing a house you plan to leave, but it can pay off in the long run. With the larger than average home inventory right now, the seller that presents a house that is most appealing to a first time buyer has an advantage over the competition.

Is That a Lawn or a Cross Country Ski Trail?

Sleigh bells ring, are you listening?
In the lane, snow is glistening.

It happened again today.

A beautiful sight,
We're happy tonight.

My buyer and I pulled up to a home in the country. The setting was wonderful - mature trees dotted the spacious yard. Such a peaceful spot. The snow stretched out in front of us, unblemished by anything more than the tracks of a few animals.

Walking in a winter wonderland.

Wait a minute. That unblemished snow covered the driveway and front walk.

We had 40 inches of snow in December, more in January. There was a thaw in between there, but there was still close to three feet of snow stretching out for about hundred yards between us and the house. Thankfully, we had an ice storm in there too, so there was enough of a crust of ice on the snow to allow us to balance on top of most of it, wading through only about six inches of powder.

If buyer cannot get to a house, they cannot fall in love with the house. If they cannot fall in love, they will not buy. An inaccessible driveway also makes the home feel difficult to care for in the winter months, a negative before they even walk in the door.

Even if a home is vacant, hire out a local service to come clear the driveway and walks. In our area, that will cost about $30 per snow in the city, $50 in the country. It is an investment in selling your home.

Walking in a Winter Wonderland is a lovely song, and a great description for yard stretching out behind a home. Just don't let it describe the sidewalk and driveway please.

Holiday Decorating for Home Sellers

The winter holidays are coming quickly. A quick glance in the window displays downtown and at the yards in town are enough to let us know even without a calendar.

This time of year is both harder and easier to sell a house. Traditionally, fewer people are looking to move in the next five to six weeks, so there are likely to be fewer showings. However, the buyers coming through your home between now and January are not tire kickers. These people are usually serious about buying a home. When sellers get a showing request during this time, they need to be sure that their home is in tip-top shape.

This is the time where a little extra effort can pay off big. Do something to set yourself ahead of the competition.

Many people like to do a little holiday decorating, and this is an area where some sellers slip up. Remember that you are hoping to move. This is not the year to set up a lights display that rivals the local landing strip. Start transitioning to your new home already.

Maybe you always have a yard full of decorations and your house draped in garland. Break that tradition this year in preparation for your move. Begin the mental process of moving.

As a general rule, less is more with holiday decorating and home selling. Take a minimalist approach. One arrangement on the dining room table. One holiday tree. A tasteful wreath on the door. Buyers do expect to see some holiday decorating. Do not forgo decorating completely, but do not over do it. A simple set of holiday towels can add a nice accent to a bathroom. The towels, a mini tree, scented pinecones and a holiday bathmat is overdone.

Ask your Realtor for frank and honest feedback on your holiday decorating plans, and follow his or her suggestions. You are paying for the Realtor's expertise, so use it.

Keep it neutral. Avoid highly personalized decorations like the handmade stockings with all the children's names embroidered on them. The point it to help the buyers see themselves living in your home. Also, ours is a multi-cultural society. While many do celebrate winter holidays, it may not be the same holiday as you. Bring out the creche or menorah for your celebrations, but not during showings.

Buyers can be sensitive to scents and noises, so choose yours with care. During the holidays, sellers may have strongly scented potpourris or spice scented air freshners out that are competing with the tree, the cookies they baked the day before and more. Keep scents soft and neutral. The same goes for music. Holiday music can be easily overdone and many get their fill from stores, elevators and more. Go neutral and non-holiday with your musical selection.

Once the holidays are finished, remove the decorations promptly. Those decorations can seem stale to buyers looking in January, so be sure to pack them away instead of putting it off.

May all of our home sellers receive the best holiday gift of all - an accepted offer.