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Archive for July, 2009

Left Behind…

Tuesday, July 21st, 2009

Many home sellers go ahead and move into their new home before they have a contract on their old one.  This is okay to do (and in many instances may be preferable).  But, if you do move out before you have found a buyer the critical issue is this: “don’t let your old home look left behind.”

 

Marketing a home that is vacant may require a different approach as far as the condition is concerned compared to marketing a home that is currently “lived in”.  When you have furnishings in your home, you can in many instances control how the buyer views your home.  What I mean by this is, you can control what they focus on as they walk through your home.  And, at the same time, you can de-emphasize negative aspects of your home by the way it is furnished and decorated.

 

But, when you move the furnishings out, many homes may look “left behind”.  You probably have viewed homes that look this way.  In many instances vacant homes look like the homeowners just left in a hurry – lots of dust balls and dead bugs in the corners, marks in the walls, stains in the carpets, small items left laying around the home, small projects started by the homeowner that are left incomplete, torn or damaged wallpaper, the yard looks like it needs to be mowed and edged – you get the picture.

 

If you move out prior to selling your home, your goal related to the condition of your home is to make sure it does not look left behind.  The key here is to take a good look at your home after the move-out and make a list of things to do that will make your home look fresh and “almost new”.  Your list will probably include items that are related to making your home look maintained and also items that are related to making your home look more appealing.  You want buyer prospects who come through your home to get a positive feeling about your home.  Some items may be more involved like replacing carpet.  Other items may be as simple as cleaning the kitchen and baths.

 

The cost of addressing these maintenance and improvement items at the initial move out is generally far less than the cost of maintaining your home for an extended period of time.  Don’t let your home look “left behind” and you’ll get a successful sale even if you vacate your home prior to signing a purchase contract. 

 

(Aaron Cole, the author of this information, is the creator of HomeSOLDin60TM, the simple six-step process that guarantees a home seller the best chance of getting the best price for his or her home in the shortest time.)

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Corporate Relocation… Not What it Used to Be

Tuesday, July 21st, 2009

Back in October, 2007, the article in our newsletter titled “What’s happening with market?” discussed the beginning of the real estate market slowdown and why.  The article noted one reason for the slowdown in our area was the reduction of corporate relocation of employees.  I just recently came across information in an online real estate news magazine that gives more insight into the state of corporate relocation.

The article notes when the economy tightens, decision making changes. Corporations look for ways to orchestrate moves that are more efficient, to create programs that are leaner relative to benefits available to those being transferred, and to be sure that there are compelling reasons relocation is warranted. Moves must be imperative rather than discretionary. 

An example of increasing the efficiency of the relocation relates to changes to the loss on sale (LOS) provision of many relocation packages. If the home the relocated employee is leaving was purchased for more than is able to be realized in a sale, the transferee is protected from absorbing that loss. Covering the loss on sale is the number one most expensive cost to the corporation. For those who are protected by such a provision, the average cost to the corporation is $20,000. In 2004, 33% of all companies had a LOS policy; 46% have one today. The percentage rose as a result of the value of homes declining and therefore the risk of loss rising quickly. Some corporations are controlling those rising costs by capping the allowable amount of the loss and by not including capital improvements made by the employee as a part of that loss on sale. Transferees might be paid 100% of loss up to a maximum amount of ‘X’.

Reasons for fewer employee relocations according to the article include the condition of the job market and how this has affected the employee’s ability to accept a transfer.  With the job market in turmoil and unemployment high, most people are just happy to have a job or to find one. If the employee is required to move to keep that job, so be it. However, with dual family incomes playing such a crucial role in making ends meet, giving up one salary is not always an option. That applies even in a new hire situation. In good employment times it was fairly easy to help the trailing partner find employment. That is no longer true. The quality of the job market at the destination will play a role in whether the employee is able to make the move.

Additionally, many transferees are ‘upside down’ in their mortgages. They owe more than the house is worth. The amount may be so significant that any loss on sale protection would do little to bridge the gap. Those folks are often just unable to move. It would be unusual for the corporation to just ‘make it happen’ as might have been the case at the height of the market.

As noted back in 2007, a tightening American economy means fewer corporate employee relocations.  Fewer relocations to our area means real estate transactions and therefore more competition for home buyers’ money

(Aaron Cole, is the creator of HomeSOLDin60TM, the simple six-step process created by Aaron Cole that guarantees a home seller the best chance of getting the best price for his or her home in the shortest time.  To learn more about Aaron’s 60-Home Sale program, visit www.HomeSOLDin60.com or contact him at (864) 292-3333.)

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