PAM DENT

Jump into Greener Pastures


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No Need To Make Common Mistakes

A successful home sale, considered by many owners, is to maximize their proceeds in the shortest time with the least inconveniences. Just because it is a seller’s market doesn’t mean that homeowners can shortcut some of the steps that make it happen and they certainly need to avoid commonly made mistakes.

Pricing too high

Low inventory and high demand have contributed to the rising prices of homes. NAR reports that the median sales price is up 17.8% in the past year and CoreLogic recently released data that July set new record growth of 18% year over year. This might give sellers a false sense of security about overpricing their home

Pricing a home too high initially can limit activity, attract the wrong buyers and ultimately, cause the home to realize a lower price than optimum. There is an interesting dynamic that takes place when there is a shortage of homes to show, and a new home hits the market. Buyers, who have been in the market but not purchased yet, will rush out to see the home. They are familiar with what homes are selling for and possibly, have even lost bids on one or more.

These savvy buyers expect certain amenities based on the price of the home. They can tell if a home is priced right or not.

Failure to do Market Preparation

There are people who will buy a home that is not pristine and does not have everything in good working order, but they usually will not pay top dollar for the home. They recognize the money that needs to be spent and will adjust the price accordingly.

To command the highest price, the home needs to be spotlessly clean with everything working as it should be. The home needs to be depersonalized to appeal to the broadest group of people. The clutter needs to be removed so it isn’t distracting or give the impression that the rooms, counters, or closets are small.

It is important to evaluate if painting is necessary along with replacing floor covering, appliances and/or light fixtures.

Thinking the agent doesn’t matter

Market time is down to 17 days and 89% of homes are sold within a month. These statistics might be used to rationalize that an agent is not currently playing an important role in the home but that would be a mistake.

Nine out of ten homeowners use an agent, and the four most important reasons were to help sell the home within a specific timeframe, help price the home competitively, help seller market the home to potential buyers and help the seller find ways to fix up home to sell it for more money.

Being present during showings

It may not be convenient, but sellers should try to leave the home when it is being shown. Buyers like to look at the home freely and ask questions or point out things to their agent. Sellers may have the best of intentions, but they have not established rapport with the buyer and don’t really know what is causing the questions.

Not letting your agent negotiate for you

The role the agent plays as third-party negotiator is one of the most important things an agent does for a seller. It begins long before buyers even make an offer. The protocol is for the buyer’s agent to go to the listing agent with the question and if necessary, they can ask you and get back to the buyer’s agent.

Buyers and sellers have inherently different objectives. Sellers want the highest price and buyers want to pay the least. Sellers want the terms of the contract in their favor and the buyers want them to favor them. Buyers want lots of contingencies to let them out of the contract and sellers want the fewest possible contingencies. Sellers want the most earnest money and buyers want to put up the least possible.

Agents are skilled at negotiation not only because of training but also experience. Sellers’ experience is usually limited to personal transactions separated by years in frequency. Agents see multiple transactions in their daily business and can guide people through difficult areas.

Not responding to offers in a timely manner

Normally, an offer can be withdrawn, at any time, up until the point that it is accepted. The expression a bird in the hand is worth two in the bush reminds us that the offer you have is real and the ones in the bush, may never come to fruition.

A common situation occurs when there is large amount of activity on the home and an offer comes in quickly. Instead of negotiating on that offer, the sellers wait to see if any better ones are received. By waiting, the seller runs the risk of the buyer changing their mind.

Alternatively, in the same situation described, the seller may decide to put the home on the market on Saturday morning and let prospective buyers know that they will be deciding on all offers received over the weekend on Sunday evening.

Your agent is a valuable part of selling a home who can offer advice, bring perspective to the transaction, and suggest different ways to help you achieve your goals. Once you have the right agent, everything else will start to fall into place.

Filed Under: Blog, Home selling tips, Information for buyers, Information for sellers Tagged With: information for sellers

Sad Real Estate Story That Keeps Repeating

Ask any real estate agent and they will tell you a similar sad story. The seller, whose home just hit the market, received an offer which was less than the list price, but felt secure that their home would sell quickly … so the seller countered for more. For whatever reason, the buyer did not continue to negotiate and moved on. After a week or two and no other offers, the seller instructed the listing agent to contact the buyer’s agent and say that the seller had reconsidered and would now accept their original offer.

However, the initial enthusiasm the buyer had was gone and they were looking elsewhere. This is a story that frequently happens across America, in all price ranges. The lesson to be learned is that sometimes the first offer is the best.

Consider the rationale, a home is fresh on the market,, and buyers (especially the ones who have lost bids on other homes) act quickly to hopefully avoid some of the competition. When an offer is not accepted, it voids the original offer and, in this case, the seller might make the buyer a counteroffer. The buyer can accept it, make a counteroffer, or walk away. Even if afterwards, the seller reconsiders and says that he will accept the terms of the original offer, the buyer is under no obligation to accept it. Alternatively, if the seller accepts the buyer’s original offer, a contract has been agreed upon based on the terms within. The house is sold and closed once any contingencies such as financing and/or inspections have been satisfied.

Think of an example where a seller countered for an additional $5,000. If he had accepted the original offer, the home would have been sold. In essence, he bought the home back from himself in hopes of making an extra $5,000. To put it in perspective, on a $350,000 home, the additional $5,000 would have been 1.4% of the value. As an investor, the risk involved in having to continue to own the property may not be justified by such a low rate of return. Having the property sold may actually provide peace of mind and convenience that far exceeds the $5,000.

When a seller receives an offer, they are faced with three options.

  • (1)They can accept the offer and the house is sold considering the contingencies can be met.
  • (2)The seller can reject the buyer’s offer outright and wait for an acceptable offer.
  • (3)The seller can counteroffer the buyer with terms that are agreeable to the seller.

Many agents feel that if the offer is not acceptable, the counteroffer alternative presents a greater likelihood of negotiating to an acceptable agreement between the parties. Every situation is unique, but compromise has brought buyers and sellers to agreement in many situations. One of the valuable advantages sellers have is their agent’s experience and lack of emotional connection to the property. Your agent can provide objectivity and alternatives for you to consider in making your decisions.

Recent trends in home prices suggest that this past year has, indeed, been extraordinary. While price growth will remain strong throughout 2021 and into 2022, it is likely that the pace of home price appreciation will slow as demand softens, mortgage rates tick up, and inventory expands.

 

Filed Under: Blog, Home selling tips, Information for buyers, information for home owners, Information for sellers Tagged With: Home Selling Tips, information for sellers

VAR Realtor Survey – Spring 2021


Our Virginia Association of Realtors has recently published the results of a survey conducted among their Realtor members. Below are the shared nuances of the Spring 2021 real estate market in Virginia.

Making An Offer

• Nearly every REALTOR® responding to this survey said that buyers are making offers over list price or including an escalation clause in their offer. Nearly 90% said offers over list price were “very common” and another 8.5% said they were “somewhat common.”

• Buyers in this market are facing stiff competition, and almost all are offering some type of concession in an attempt to make a successful offer.

• About 87% of Virginia REALTORS® said it was “very common” or “somewhat common” for buyers to waive the home inspection. Some REALTORS® commented that buyers were having an inspection done for information purposes only, but not making the offer contingent on the home inspection results.

• Nearly 70% of Virginia REALTORS® said that waiving appraisals has become “very common” or “somewhat common.” Many REALTORS® note that buyers are including a provision that they will pay a certain amount over any appraised value. Other REALTORS® have pointed out that this trend in waiving appraisals has put VA buyers at a disadvantage because they cannot opt out of an appraisal.

• The following tradeoffs are also “very common” or “somewhat common” in today’s market: increasing the earnest money deposit (79.2%), waiving the home sale contingency (66.2%), and offering a shorter loan contingency timeline (68.6%).

Buying A Home

• The fast-paced market and historically low inventory has forced buyers to re-evaluate their housing and neighborhood preferences, widen their search, and make tradeoffs on amenities. Nearly nine out of 10 Virginia REALTORS® members (87.7%) said that it is “very common” or “somewhat common” for home buyers to look outside of their preferred neighborhoods as they realize how few homes are available.

• Buyers in this market seem less likely to make tradeoffs on the size or style of the home they are looking for, but they are willing to consider homes that need major upgrades or updating.

• Only 34.2% of Virginia REALTORS® said that it was “very common” or “somewhat common” for buyers to settle for a townhome or condo instead of a single-family home.

• A little more than half (51.0%) said that it was “very common” or “somewhat common” for buyers to compromise on space or number of bedrooms.

• More than three quarters of Virginia REALTORS® (75.2%) said that buyers were willing to consider homes that need major upgrades or updating.

• As the inventory of existing homes shrinks, some buyers have turned their sights to new construction. About 56% of Virginia REALTORS® said that building a new home, rather than purchasing an existing home, had become “very common” or “somewhat common” among buyers.

• Finally, the tight market has discouraged many buyers. In fact, more than 70% of Virginia REALTORS® said that it is “very common” or “somewhat common” for buyers to decide to put off buying a home altogether in this market.

Contact your realtor to learn how these findings apply in your particular area and price range.

 
   

Filed Under: Blog, Home selling tips, Information for buyers, information for home owners, Information for sellers, Market Reports, Real Estate Tagged With: home inspections, information for buyers, information for sellers

Transferring Property Prior to Death

Sometimes, as people approach the inevitable, they start trying to get their things “in order”. They may even have a will, but they decide to transfer title to real estate prior to their death which could be an unnecessary expense for the would-be heir.

Generally, when property is passed through direction of a will, the heir will receive a stepped-up basis which means that the fair market value of the property at the time of death becomes the cost basis for the heir. If the property were sold for that fair market value, there would be no gain and no capital gains tax due.

However, if the property is gifted prior to death of the donor, along with the title to the property comes the cost basis of the property. The transfer of title does not trigger the capital gains tax but when the property is sold, the gain is calculated by subtracting the basis from the sales price leaving a capital gain subject to tax. In other words, the person receiving the gift does not get the stepped-up basis.

There certainly can be advantages to transferring the property prior to death. It completes the transfer without having to wait for the death and bypasses the probate process that might be required to settle the will. Another advantage to the donor may be to remove the property from the owner’s name which could lower the taxable estate.

Some owners may transfer title prior to death to qualify for Medicaid. The value of the asset may make them ineligible. It may trigger a Medicaid Transfer Penalty when the gift is made within five years and the basis of the property is less than fair market value.

Once a property is deeded to someone, the donor loses control of the asset and it cannot be reversed. Depending on the value of the estate, there could be gift or estate tax implications. As mentioned earlier, it may have capital gain tax consequences for the donor when they dispose of the property.

If the person receiving the gift has creditors or judgements, the gift becomes an asset subject to those creditors or judgements.

Even though the mechanics of transferring title to a property is simple, there are many things to consider for both the person giving the property and the one receiving it. Consult an attorney and tax professional to determine the best informed decision available. There could be other alternatives that would better serve your situation.

Filed Under: Blog, Home selling tips, Information for buyers, Information for sellers, Mortgages Tagged With: Home Selling Tips, information for sellers, taxes

Pre Listing Inspections for Sellers

A prelisting inspection can provide an advantage to Sellers. The process of selling a home can come with unwelcome surprises, and a prelisting home inspection can eliminate one of the most common Seller stresses.

The buyer contracts for the home with a provision for a professional home inspection. Their inspection could unearth things that the buyer didn’t expect or even anticipate. If it doesn’t trigger an action to terminate the contract, the buyer will inevitably ask the seller to make all or most of the repairs.

When presented with the buyer’s request, the seller may take the opposite position of not wanting to do any of the repairs. The buyer then must accept the property in its “as is” condition or negotiate a reduced price or credit with the seller in lieu of the repairs.

Any experienced agent can tell you that sometimes a mutually agreed negotiation is reached and other times, an impasse is met that cannot be resolved. Then the buyer elects to terminate the contract, and the house has to go back on the market. But this time the property may be stigmatized in the eyes of buyers. Importantly, deficiencies may be uncovered that require a disclosure that has to be made to all parties looking at the home and that may deter future showings and offers.

Taking a pro-active approach, by obtaining a pre-listing inspection, sellers can find out about things that will probably show up in a buyer’s inspection. The sellers can get the deficiencies repaired before the home is shown and it will help the buyer feel more confident with the home. Another option would be to disclose them as not working and make a price adjustment. Either way, the seller is in control and is taking a position of transparency with potential buyers.

In some cases, the pre-listing inspection may show things in working order that the buyer’s inspection indicates as needing repair. No two inspectors will find everything or see everything the same way. However, home inspectors are required to be licensed by the state and inspect accordingly. With two disinterested parties having opposing professional opinions, there is the basis for negotiations which will have a more likely chance for a mutual agreement.

Disclosing things that are not in working order can reduce liability in the future. The pre-listing inspection by a professional, combined with the seller disclosing major deficiencies properly, can reduce potential liability.

For the small investment in the pre-listing inspection, the benefits to the seller are well worth the expense. You and potential buyers will have a better idea of the condition of your property and know what to expect. You can present the property in a transparent way that will build confidence with the buyer. You’ll avoid unpleasant surprises as well as possible delays. Pre-listing inspections can lead to faster sales and satisfaction for everyone involved.

If you want to know more details about what happens with a home inspection, CLICK HERE.

 

Filed Under: Blog, Home selling tips, information for home owners, Information for homeowners, Information for sellers Tagged With: home inspection, home inspections

What Adds Value to a Charlottesville VA Country Home?

You can add value to your country home in Charlottesville by emphasizing the advantages of rural life. The peace of rural areas is important to many people, however having good roads for access to urban areas is a boost. Adequate space for horses and other animals adds value too. The quality of the home and improvements should be optimal. While many appreciate a rustic appearance, modern amenities hold value indoors.

Selling homes in an urban area may be easier than in rural areas. This boils down to more people living in urban areas, thus a larger buyer pool. Modernity appeals to many people. For some folks, though, they want to be among nature, with peace and quiet. For these people, homes in the country are their first choice.

Over half of Virginia’s landmass is rural. There are also over 1 million people living in rural areas in the state. So while urban areas are more populated, rural living is very much in demand. And as a result of the pandemic, an increasing number of people are moving out of the city and into the country. If you’d like to sell your country home in Charlottesville, VA, this is the optimum time to put it on the market.

Before you sell your country house, you want to get as much value as you can. There are things you can do to increase the selling price of your home.

What Can Increase the Value of my Country Home?

Many home improvements can increase the home’s value  beyond the price it costs to get them done. Knowing the appropriate ones can turn a good profit. These range from minor renovations to more considerable additions.

  • Make all repairs: Ensure that all necessary repairs are complete before selling. You may be able to sell a house with a leaky roof, but it’ll take money out of the asking price. If you fix these deficiencies yourself, you won’t leave money on the table. Be sure electricity and water are in perfect working order. All light switches and power outlets should be functional. Don’t forget to make sure all windows and doors open without any issues. Proper repairs enable you to show the house without any worries. You will know there’s nothing you need to be concerned about!  You may even want to have a pre-listing home inspection so that you will know what will be found in a buyer’s inspection and you can take care of those items before your home goes on the market. 
  • Ensure easy access: Even if you don’t like the bustle of cities, being able to get to town easily is important. As much as you stay within rural confines, you will have causes to go to the city occasionally. Buyers coming for house showings will likely arrive from the city too. Private roads leading to your property should be free of any obstacles, well maintained and easy to navigate. Have your mailbox somewhere prominent and well-labeled. Buyers want to know packages can get to them without stress.
  • Get the property looking good: For taking pictures or having a showing, you want the property to look its best. Rural houses can take a lot to maintain, and most buyers know this, but if it looks shabby, they will reconsider whether they should take it on. Don’t add to the work they have to do if they buy. Ensure any grass is freshly mowed, and bushes and trees are presentable. Clean the windows, scrub floorboards, and make the house look pristine. The rustic charm of a country home is one of the major attractions. Take advantage of that, and make it look good before buyers show up. It’s sure to bring more value.
  • Market in the strongest season: You can sell a country home in any season, but you need to know which is optimal. A home in Charlottesville with abundant green is best marketed in spring or summer and don’t forget the display of fall color in the background. That way, the trees and shrubbery are as beautiful as can be! The value of a property is higher when its beauty is evident.
  • Renovate where necessary: If your country home is relatively aged, it may need some renovations. These can bring modern amenities to the home, in both functionality and appearance. Renovating bathrooms and kitchen space is one of the easiest ways to add value. Most buyers won’t want to do that themselves.

What Are Home Improvements That Don’t Add Value?

Adding renovations may seem like a sure way to increase your country home’s value. Unfortunately, that’s not true for the most part. Some home improvements will not do much to improve value. It’s essential to know which ones do, and which don’t. This will prevent you from spending money on non-profitable upgrades.

These improvements may not increase value, but they can seal the deal from prospects.

  • Improving infrastructure: There are many vital parts of a home hidden from sight. This includes water and sewage pipes, as well as electrical wiring. An old house can have older infrastructure in this regard, but upgrading won’t put much money in your pocket. It improves the description of the home, but putting a premium on account of these won’t yield much.  However, if these essential features are not up to date, it could deter a potential buyer from making an offer.
  • Bedroom renovations: A bedroom is a personal space. Putting your own touches on a bedroom to improve the home’s value can prove far from successful. Most buyers will want to design their bedrooms themselves. So doing it for them won’t add more to your asking price.
  • Re-purposing rooms: Changing a spare room into a gym or a theater may seem like a good idea. This is only if the buyer wants exactly that. More often than not, these additions will only frustrate buyers. Sometimes, this means a room that they cannot use. They can re-purpose rooms on their own, if you leave the space for them to decide.  In today’s market, rooms become offices or school rooms.  Buyers will want flexibility.  And with the prevalence of netflicks and streaming, home theaters are no longer popular.
  • Swimming pools: Pools can be fun to have, that’s a fact. Unfortunately, installing one is costly, and so is maintaining one. A home with a pre-existing pool can be a tough sell due to maintenance costs, and many buyers consider a pool to be a lot of extra work. There are also safety issues, particularly for families with children. Don’t expect a pool to add value for every buyer. 

In the end, these are a few of the elements that can add value to your home. Some are quick to put in place, and others may take some time to complete. Don’t forget decluttering and staging which are both inexpensive ways to add value to your home. It’s important to be practical and consider all the factors when planning to sell. Getting a fantastic agent makes selling a breeze. Pricing, location, and the house itself can determine which improvements you should consider.

In Charlottesville, VA, you’ll want to get an agent familiar with the area and with country homes. This way, you’ll get the greatest value, and a sale before you know it.

Don’t hesitate if you have a country home that you want to sell. Call up Pam Dent, Realtor, at 434-960-0161. Not only will she help you maximize value and get the most profit. She’ll make sure you have your country house sold before you can imagine.

Filed Under: Blog, Charlottesville, Charlottesville VA Homes, Home selling tips, Homes in Charlottesville VA, Pam Dent, Real Estate, Real Estate Properties for Sale in Charlottesville VA, Virginia Tagged With: Blog, Charlottesville, Charlottesville real estate, Charlottesville VA Homes for Sale, Charlottesville VA Real Estate Properties for Sale, Country Homes in Charlottesville VA, Home Selling, Home Selling Tips, Homes in Charlottesville VA, Pam Dent Best Real Estate Agent in Charlottesville VA, Virginia

Top Summer Staging Tips for Homes for Sale in Charlottesville VA

Top Summer Staging Tips for Homes for Sale in Charlottesville VA


Summer is a great season for homes for sale in Charlottesville VA. The increase in listings and buyers makes the real estate industry really busy during this season. Don’t let this discourage you if you want to be among the brave sellers hoping to sell their homes this summer. There are plenty of ways to capture the right audience. Your home is your stage and you have all the help you need right here.

Top Summer Staging Tips for Homes for Sale in Charlottesville VA

1. Enhance your “curb appeal”

The first thing that buyers are going to see is the outside of your home. Make sure you get their attention right away. This is what they call “curb appeal.” You’d want to enhance the curb appeal of your home by making sure your driveway is smooth and clean. If needed, have your driveway repaired. Make sure your walkways are clean. Consider repainting or power washing the exterior of your home. Don’t forget your windows! Wash them clean and go further by polishing them for that extra shine. Plants add a lot to the aesthetics of your home as well.

2. Maintain general cleanliness

The size of Charlottesville horse farms can be hard to manage especially if you want to stage it for selling. No matter what the size of your home and property is, with proper planning and time management, you’ll surely make it in time for summer. Cleanliness is easy to understand. Always think about your potential audience. Think of what they might consider as clean. Think of areas that would easily stand out and make sure to get them spic ‘n span and ready for your potential audience. You’d want to carefully clean the floor, furniture, appliances, fixtures and even the sinks in the kitchen and in the bathrooms.  If you are selling a horse farm don’t forget that the stable needs to be clean and neat as well.  You’ll never know what your viewers might see or think so make sure you clean your home to the best of your ability.

3. Utilize the space to your advantage

Just like horse farms, Charlottesville golf communities would definitely have much space you can play with for staging. Different homes come in different sizes and no matter how small or big the space you have, there are always ways for you to utilize the space to your advantage. Consider rearranging your furniture. Is there too much clutter in your home? Try to get rid of things that you haven’t been using. Consider the functionality of every item in your home and see which items you can give up in order to give your home more space.

Every home for sale in Charlottesville VA is surely unique. You can also come up with your personalized staging methods. If you want to know more, you can visit this site www.JumpIntoGreenerPastures.com.

Call me, Pam Dent today at (434) 960-0161. I can assure you of the best quality service. I have the professional and expert knowledge on Charlottesville real estate, the local housing market, horse farms and golf communities that will guide you through the exciting and fulfilling journey of finding your dream home.

Filed Under: Blog, Charlottesville, Farms and Estates, Home selling tips, Information for sellers, Virginia Tagged With: Charlottesville equestrian properties, Charlottesville golf communities, Charlottesville horse farms, Charlottesville real estate, Charlottesville VA Homes for Sale, Jump into Greener Pastures, Pam Dent

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Contact Pam

Pam Dent
Phone: (434) 960-0161
Email: [email protected]
Gayle Harvey Real Estate Inc.
198 Spotnap Rd, #C-5,
Charlottesville, VA 22911


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