As you look at your outdoor living spaces with an eye for upgrades, where will your time and money be best spent? Fresh landscaping? Sprinklers? A new fence? A firepit?

There are two ways to look at your improvements.  1. Curb appeal to make your home more attractive to buyers when you’re ready to sell.  2. Personal enjoyment while you live in the home.

If you’re thinking strictly of return on investment, regular lawn care, landscape maintenance and tree care and trimming each restore 100 percent or more of the costs. Regular attention to watering and drainage will prevent unsightly dead spots in your yard. Removing dead tree branches or limbs growing too close to the house prevents storm damage.  Keeping bushes trimmed prevents overgrowth that obscures your home’s features.

But money isn’t everything.  What about personal enjoyment, convenience and satisfaction? How about an irrigation system,  a fire feature, a new wood deck,  a water feature, and an overall landscape upgrade.

Curb appeal matters, and landscape improvement is money well spent. You’re adding beauty and convenience to your home, which future homebuyers will appreciate.

The seller’s market continues in the Greater Lansing area and in most other areas across the country. In a seller’s market there are more buyers than there are homes for sale, which drives the price of homes up. Every home seller hopes for this, though most don’t take advantage of it as well as they could. So how can you use the seller’s market to maximize your home price? Here’s what you need to know when selling a house in a seller’s market, and how you can compete with the most attractive homes.

1. Know Your Competition
In a seller’s market there are more buyers than sellers, however the best homes will still go faster. Look at comparable homes in your area to see what you need to know about your own home when selling in a seller’s market. Does your home have similar features?

Remember that certain home updates can make a big difference in your home price, and they can be especially tempting to certain buyers. Noticeable visual updates are particularly important to some buyers; a home with a sleek and shiny new kitchen or luxurious bathroom will win over buyers faster than a lackluster space of the same size. If nearby homes have these features, you don’t necessarily have to remodel, but it will be helpful to update these rooms with some modern home design trends. Consider the following when looking at comparable homes:

• Kitchen or bathroom updates
• New roofs
• Pools
• Yard features
• Home additions
• New siding
• Basement or attic conversions
• Deck, patio or porch
• New windows

2. Know Your Negotiation Position
It’s often overlooked, but your negotiating position is important to know when selling your home in a seller’s market. When you know what makes your home valuable and any problems home buyers might point out, you can be ready for anything. This includes homes that are live-in ready as well as fixer-uppers.

Live-In Ready: If your home doesn’t have any major defects, the condition of your home is a major selling point. Tell your realtor about your home’s updates so they can be pointed out to buyers and highlight the updates with staging. If you live in a growing, sought-after neighborhood, a neighborhood with good schools, or other features, add this to your negotiating position as well.

Fixer Upper: When selling a home that needs work, your home’s features, amenities and condition won’t be a major part of your negotiating strategy. However, your neighborhood might be. If you live in an up-and-coming neighborhood, you have good schools, or the properties nearby are significantly more expensive, highlight the potential for buyers to get into a good area and build equity.

3. Know Your Buyer’s
The best thing to know when selling a house in a seller’s market is to know your ideal buyer. Who is looking at your home? There are as many types of buyers as there are types of homes. Knowing who is most interested will help you sell your home faster. You can make an educated guess about who is looking at your home by the location, price, amenities, and condition. Consider the following common types of buyers and ask yourself who will be most interested in your home.

First-Time Buyer: Usually newly married couples, these buyers want a safe neighborhood, but it doesn’t need a lot of amenities, and they’re probably not as concerned with the quality of schools yet. Their ideal home needs some updates but nothing major, has a small yard in a nondescript area, and it’s in a lower price bracket.

Move-Up Buyer: Move-Up Buyers are usually families growing out of their current space. They’re looking for more square footage and more bedrooms, a bigger yard, a safe neighborhood, and good schools. They want to invest time in their growing family, and they’re less likely to take on big home renovations.

House Flipper: These buyers make a business out of buying, improving, and selling homes for profit. They’ll be willing to take on home projects most other buyers won’t. Savvy house flippers will know when a home needs too much work, but a bidding war between competing house flippers is great news for homes in rough condition.

Neighborhood Hunter: This buyer’s number one priority is getting into a great neighborhood. They might be looking for schools, to be close to work, or to build equity in a good community. These buyers are ideal for homes that don’t have the same features as their neighbors.

Relocator: The Relocator is usually moving for a job, and they might be buying a home from a distance. Closing the sale within the right time frame is therefore important to them, and they also want to be in a safe neighborhood that is close to their workplace.

Equity Builder: Equity Builders are very much like House Flippers, except they’ll actually live in the house while they fix it. These buyers are ready for a project, but they draw the line at anything that makes the home especially difficult to live in or sell.

Dream Home Buyers: These buyers are looking for a certain home and, though they have a price ceiling, it’s probably flexible if they can get what they want. They don’t want a project or improvements, and may have specific amenities, square footage, number of bedrooms and other features that must be met.

4. Know What Buyers Think of Your Home
Try to look at your home objectively and see what prospective buyers see. Seeing what buyers see will show you what you need to know when selling your house in a seller’s market and changes you may need to make.

When you live in your house and see it every day, you can become blind to problems that might turn off buyers. If you find it difficult to assess your home objectively, ask your friends for help. Those that don’t live in the house will be able to point out issues you might not see.  Ask your friends about any of the following:

• Is there any strange odor anywhere in the house?
• Is the decor modern?
• Is the space neutral? Can they see themselves living there?
• What do they immediately notice in each room?
• Did they notice any cracks, off-color spots, pests, soft spots in the floor, or other issues?
• What features do they especially like?
• Would they want to live in this home? Why or why not?

5. Know When to Sell
Timing is an important thing to know when selling a house in a seller’s market. Spring and summer are ideal times to put your house for sale, since there are more buyers and your home will look more attractive. Remember, to sell your home in the spring or summer, you should have all preliminary steps completed by the end of winter. If you are buying a home contingent on the sale of yours, you’ll want to coordinate preliminary buying and selling activities well in advance to get the timing right.

You don’t always have complete control over timing, and you can still successfully sell your home in the fall or winter if necessary. There are fewer homes on the market in the fall and winter and buyers during this period generally need to move, so they’ll be more serious. If other nearby homes repeatedly upstage you and steal your offers, it may be helpful to sell in the winter when the real estate market is slower.

6. Know Your Price Points
Whether you have a large home with the latest amenities or a small fixer-upper, finding the correct listing price is one of the most important things to know when selling a home in a seller’s market. Your home’s listing price should be accurate, but it should also be priced with your buyers in mind. Remember that most buyers start their home search online within a price range, and where you set your price will determine which searches you appear in.

Most buyers set their price caps at round numbers like $100,000, $200,000 or in between at $150,000. If your home is just over these numbers at $107,000 or $155,000, you may be missing a pivotal group of buyers. Contrastingly, if your home is set just under these price breaks, like $99,000 or $148,000, your home will look like a bargain, which can set off a bidding war. Ask your realtor about your ideal buyers, their price ranges, and comparable homes in the area to find the perfect listing price.

A seller’s market means you have the advantage and you have a chance to get the maximum value for your home. But some homeowners take a seller’s market for granted; they don’t prepare and end up leaving money on the table.  What to know when selling a house in a seller’s market can make a difference between maximum and average value.

The Basics: What Is “As Is?”

Selling a home “as is” doesn’t automatically mean the house is in bad condition. It’s a legal term meaning you’re not making any repairs or providing any warranties; the buyer gets the home exactly as it is, in its current state. Buyers may still ask you to make repairs, but you can refuse.

This doesn’t mean you’re exempt from disclosures, though. You still must disclose any issues about the property to the best of your knowledge. Different states have different laws governing real estate disclosures, and Michigan law states that sellers must fill out a disclosure form. The disclosure form covers everything from appliances to roofs to basements to sump pumps and more. If you know about problems with any of the items on the form, it’s unlawful to conceal them.

Pros of Selling Your Home “As Is”

SELLER’S MARKET
Real estate market trends in 2018 support a seller’s market in Michigan, which can make affordable homes hard to find. This high-priced, competitive market makes buying a fixer upper a more attractive option to many buyers. Though selling a home “as is” will drive down the price, it won’t make as big of an impact when affordable homes are hard to come by.

NO REPAIR COSTS
When you make it clear that you’re selling your home “as is”, it’s generally understood you won’t be making any repairs. If your home needs a new water heater, roof, or other expensive repairs that simply aren’t in your budget, you don’t have to figure out how to afford them. Though the costs of repairs will drive down the sale price of your home, you can still profit from the sale.

EASIER SELLING PROCESS
Selling a home “as is” takes a lot of responsibility off the seller. If you’re not able to take on pre-sale inspections, repairs & renovations, staging, open houses,  and other preparatory stages, selling your home “as is” can make the process easier.

Cons of Selling Your Home “As Is”

LOWER SALE PRICE
A lower sales price is the biggest drawback of selling a home “as is”.  Obviously, the home won’t get the same sale price as the fully inspected, fully repaired and remodeled competition. The severity of the damage will determine how much lower the sale price ultimately is.  A real estate agent can help you lower your home’s list price fairly if you’re not sure.

BUYER DISTRUST
Sellers are required to disclose problems, but buyers know that not everyone follows the law. That means some buyers will expect damages that aren’t there and will lower their offer based on problems that don’t exist. Getting past this distrust is possible, but it can be a significant barrier.

LIMITED BUYERS
Fixer uppers attract buyers ready for a project, but many other buyers won’t be interested. If the necessary repairs are significant, the condition of the home might make it difficult to get financing, which will drive away all but cash buyers.

HAGGLING
Seasoned home flippers make a business out of selling fixer uppers, and these industrious buyers will probably make an offer as low as possible.  With buyers starting at low-ball prices, you’ll have to bring sharp negotiating skills to the table to keep the buyer interested and still get a good price. If you’re not sure about this step, bring an experienced real estate agent into your corner to help.

Selling a home “as is” isn’t the best option for everyone, but it can make the home selling process easier in some cases. If you’re not sure whether to sell your home as is or pursue a traditional sale, ask a realtor. Experienced real estate agents have worked with all types of home sales and can point you in the right direction based on your home and your needs.

If you purchased a starter home and are now considering moving up, you may wonder how long you should own your house before selling. While it’s impossible to know for sure what market conditions will be like in the Greater Lansing area in five or ten years, trends and calculations can help you make an informed decision.

5 Factors to Decide How Long You Should Own Your House Before Selling
Answers to this question vary because there is no one-size-fits-all for how long you should own your house before selling. This depends on your mortgage, capital gains, closing costs, equity, market conditions, and your own circumstances.

1. Your Mortgage
If you want to make money on your home sale and upgrade to a bigger home, the sale price must be greater than your remaining mortgage. During the first few years of your mortgage, you’re paying far more in interest than the principle. This makes it difficult to make money on a sale in under five years. However, if you purchased a more modest home with a larger down payment, you probably have a smaller mortgage amount and interest rate. With this arrangement, you can sell your first home faster and make a profit.

2. Capital Gains Tax
Regardless of other factors, it’s best to live in the home at a minimum of two years before selling. If you live in your home as a primary residence for at least two of the five years prior to sale, you can exclude $250,000 ($500,000 for married couples) of the profit from your sale.  If you don’t live in your home for at least two years,  you’re generally not eligible for a capital gains exclusion.  This means you must report any profits (sale price received minus sale price paid and expenses) from the sale on your taxes and deduct capital gains tax at a rate dependent on your income.

3. Equity
You build home equity when you pay off the principle on your mortgage or when you make improvements to the home that increase its value. How much equity you’ve acquired depends on your mortgage and on renovations or remodeling you’ve done. If the first home you purchased was already in pristine condition, it’s difficult to build sweat equity. However, if you remodeled the bathroom or kitchen, added a deck, refinished the floors, finished the basement or made other improvements, you’ve increased the home’s value and gained equity. You can conduct these projects quickly or slowly, but it’s best to take on projects that maximize your investment before selling.

4. Market Conditions
Real estate markets have highs and lows that tend to follow an 18-year pattern. If you purchased your home during a recession such as that between 2008 and 2013, selling now while the markets is at a sales peak may maximize the home’s value. However, if you purchased a home later during the recovery stage, such as around 2014 to 2016, selling too soon could cause you to lose money.

5. Buying and Selling Costs
The costs of buying and selling are an important, often overlooked, factor when determining how long you should own your house before selling.  When selling your home, a qualified realtor will generally require a commission of 6%. When buying a new home, you’re likely to pay closing costs between 3 and 6% of the new home’s price. Calculate these expenses first to know how much you need to sell your original home for to cover the costs of your new one.

Besides market trends and equity calculations, you also need to consider your circumstances. If you’re moving to be closer to a job or your family, other calculations may be less important. If your family is growing and you need more space, you may not have time to wait. However, if you have time to consider all your options, making these calculations can save you money in the long run.

Selling your home takes hard work and commitment to get it ready to impress buyers. While you can’t control the market, you can control your home’s appeal. Don’t let the following reasons make buyers pass on purchasing your home.

1. Price:  If you price your home too high, the right buyers won’t see it, and the ones who do see it will quickly realize other homes in the same range offer more value.
2. Clutter:  If your tables are full to the edges with photos, figurines, mail and coffee cups, buyers will be more focused on trying not to break something than considering your home for purchase. Too much stuff makes it confusing for buyers to see the rooms clearly, so they’ll move on to a clearer choice.
3. Deferred maintenance:  Buyers really want a home that’s been well-maintained, so it’s your job as the homeowner to keep your home in good condition. You don’t want buyers wondering what needs fixing and at what cost.
4. Outdated décor:  The reason people are looking at your home instead of buying brand new is because of cost and location. They want your neighborhood but not a dated-looking home. Take popcorn ceilings and flocked wallpaper down. Replace carpet with an upgrade or perhaps hardwoods.
5. Smells:   There’s not a buyer in the world who will buy a home that smells like pets, dirt or water damage. If you get an offer at all, it will be low and contingent on a positive inspection.

Buyers generally have three criteria for selecting the home they ultimately purchase.
These include  PRICE, CONDITION, and LOCATION.  Play these up to get your home sold quickly and for the best terms.

Make the price attractive:  Don’t price your home where you think it should be but instead, price it close to or slightly below market value. This strategy gives buyers the opportunity to compete for your home, and it could possibly sell above list price.

Make the condition move-in ready:  Keep in mind that many buyers are stretching their financial limits to afford your home. Buyer’s pet peeves are usually easy items to fix.  You don’t want your house to be disregarded because you failed to paint, mow, replace the carpet, fix leaky faucets, etc.  Your goal is to make buyers feel like they don’t have to do anything but move in.

Make the most of your location:  You can’t do much about your home’s location but you can make your home more attractive with lovely landscaping, fences to block out ugly views and sounds, and an outdoor entertaining area.  If your home is on a busy street, point out the easy access to amenities, like walking to the grocery store.

If these three criteria aren’t in alignment, you definitely don’t want to overprice.  Buyers expect to pay more for a great location near schools, transportation, shopping and restaurants but if you overprice, they will scrutinize the location and the condition more closely.

Housing inventory is low!  Mortgage money is available!  Interest rates are low!  The Lansing area is in “Seller’s” market!  So, why is your home not selling?

Overall, there are a variety of factors that can cause your home to not get any offers. However, by doing some investigation and keeping the following warning signs in mind you’ll be better equipped to know when it’s time to lower your home’s list price. 

 1. You’ve received multiple “low ball” offers
The first telltale sign that your list price is too high is if you receive multiple offers that you perceive as low ball offers. Receiving one or two low ball offers is expected in a buyer’s market where there is plenty of inventory. However, receiving low ball offers in a seller’s market could mean that your list price is too high. Don’t panic. Repeated low ball offers provides an opportunity to assess the offers that you’ve received to see what range they fall in, and adjust your list price accordingly to be more competitive. 

2. There’s been high traffic but no offers
Another sign that your list price is too high is if you’ve had a ton of traffic at open houses and through private showings, but still have yet to receive an offer. High traffic means that at first glance your home is appealing enough for buyers to check out. If there isn’t a major problem that is scaring buyers off, it could mean that the list price is simply too high. Lowering your list price could put you in a position of receiving multiple offers from interested buyers, driving up the price of the home through competitive bidding.

3. Comparable homes have much lower list prices
One thing you and your agent should always keep an eye on is if comparable homes come up in your neighborhood. As this begins to happen, you could notice that your home is priced much higher than comparable homes in your neighborhood. This is another sign that your list price could be too high and scaring off buyers. Adjusting your home’s list price as more comparable listings become available will make your list price more competitive.

4. Your home has been on the market for multiple months
A final sign that your list price is too high is if your home has been on the market for a long period of time. This is especially true during the current seller’s market with low inventory and a surplus of buyers. Lowering your list price could make your home more appealing to potential buyers and help get your home sold.