Joe Valenti
Published Tuesday April 19, 2011
If you’re one of the homeowners thinking about selling your house this spring, consider this: It’s competitive out there, with more than 5,300 houses listed at the end of March.
To make sure yours is one that sells, Omaha real estate specialists say houses need to be priced and staged correctly from the start.
They also say to have confidence: Omaha’s job market is strong, with unemployment rates lower than the national average.
“The biggest misconception is sellers think that it is not a good time to sell their home because they don’t think they can get the money from the sale,” said Andy Alloway, president of Deeb Realty. “Our market compared to a lot of other areas is very good.”
Real estate is all about location and so are housing market statistics, which indicate the Omaha area market has weathered the national housing price correction very well, said Robert Wiebusch, vice president of operations for NP Dodge.
CBSHome President and CEO Joe Valenti agrees: “People think the market is depressed, but that it is not the case. It is a great time for people to sell homes in Nebraska. In addition, interest rates continue to be in the 5 percent range.”
Valenti, Wiebusch and Alloway — along with Tasha Moss, an agent for Prudential Ambassador — offer advice for sellers.
Q. What is the biggest mistake people make when selling a home?
Alloway: They overprice it. A third party should show them the legitimate data of a house’s worth and what the market is willing to pay. The best market time is within the first three weeks. If you overprice your home to begin with, you end up chasing the market. In the end, you might actually get less than the house is worth.
Moss: Having the idea that you are going to get out what you’ve put into it still isn’t realistic. The biggest mistake is not listening to the agent’s opinion on where the house should be priced and ways to make the houses market-ready.
Valenti: People tend to price on inaccurate information or try to compare it to what they paid for the home. Homeowners should consult with a Realtor to figure out a competitive price in their location.
Wiebusch: Effective pricing from day one is key. There’s a pool of buyers out there looking at every neighborhood in town and if a new home hits the market with a competitive price tag, there is a much greater chance of it selling in a relatively short period of time. The idea of pricing a home high to start with and then lowering the asking price at a later date leaves a home seller with a situation of just grabbing the attention of new lookers one by one.
Q. What important changes does a seller need to make in staging a home for sale?
Alloway: Family photos overshadow the house and buyers don’t see themselves living there. People are drawn away from the room size or the large closet because they get interested in the family. Displaying dated photos also ages a home.
Moss: Get the clutter out and make sure there is no deferred maintenance. You can tell when the home has been cared for by the seller. (If they see a needed repair), buyers might ask what else didn’t they take care of? It’s not a good idea to have a vacant home. People need to see nice furniture in place, even if it has to be rented. Sometimes we can call in a home stager.
Valenti: Put on a fresh coat of paint if the home needs it and trim the landscaping to give the home street appeal. Make sure the inside is decluttered. Easy fixes include neutralizing colors, photos, wallpaper and paint. I don’t think taking down family photos is as critical as some people say, but a wall of memorabilia can be overwhelming.
Wiebusch: Home sellers need to put themselves in the shoes of a buyer. What things would a buyer notice? It doesn’t have to be perfect, but it does have to beat the competition.
Q. What home improvement can homeowners do to make the home sell faster? Do any home improvements hurt?
Alloway: Your house should have a couple of wow factors, but don’t do a whole kitchen remodel before selling your home. If all of the homes offer vinyl floors, Formica counters and oak cabinets, but another one in the same price range has hardwood floors, granite countertops and maple cabinets, that would probably be a wow factor for most people. Essentially, anything that has the amenities that most people really want and don’t see in many of the other homes they have seen. The most inexpensive ways are carpet and paint. Some other things to consider might be landscaping, staining your deck, replacing old hardware and light fixtures, replacing appliances if they are very old. Most homeowners can do wonders to their home by simply deep cleaning, decluttering, manicuring the yard and rearranging/staging.
Moss: I think deferred maintenance is big — don’t have windows with broken seals or paint missing above a door, or a leaking roof. You never want to overbuild or overimprove the home when your neighborhood’s high price is $135,000. Doing updates doesn’t hurt, but it will if you end up with a negative investment. Painting your home neutral colors helps, too. You should shampoo the carpet if it’s in OK condition and replace it if it’s stained, smells or is blue or green.
Valenti: I advise sellers to paint the home inside and out and clean the entire house, the carpet and the oven. We would rather they remodel the kitchen or bathroom if they are going to stay at the property and live there for a while. Remodeling before you move is overwhelming and expensive. If homeowners want to do this, a Realtor can calculate what those improvements would cost and the market value on those improvements.
Wiebusch: If you put in a lot of personality into your home, it makes it more difficult for a potential buyer to visualize themselves living there. If the carpet is worn out, replace it. The most popular neutral paint colors right now are crisp khaki and mocha.
Q. How long should a seller expect to have a house on the market?
Alloway: Average market time in Omaha is about two months. Home sales depend on if they’re priced right for the condition they’re in.
Moss: It’s hard to say. Some sellers are realistic (about pricing), some are not. It is very important for a seller to appropriately price and stage a home for showing. … When the Omaha market was at its worst, around 120 to 180 days. In the height of the housing market it was 30 days. Now we’re around 60 days.
Valenti: It’s going to depend on a couple of factors. If you price your home at the appropriate level, it should take about 90 to 120 days to sell. If your home is in the upper price ranges, it is going to take longer because, as you move up in price, you have few buyers. With a price range of $150,000 to $350,000, it could take three to four months to sell. … Qualifying for a home (loan) is a bit more difficult today than a few years ago.
Wiebusch: The average days on market year to date for the greater Omaha area is 75, but every home is unique and there are a great deal of factors that impact how quickly a home will sell. The number of days it takes a properly priced home to sell has ranged anywhere from 60 to 90 days, depending on the time of year.
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