Author: Ali Palacios - Broker

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Getting your home ready for a home inspection

Posted on by Ali Palacios - Broker

Your home is usually your largest asset. A buyer’s agent will use an inspection report to re-negoicate the terms of the contract. With a little preparation you can avoid further negotiations (price reductions and repair credits) or “deal breakers”.

In most cases cosmetic issues and normal wear and tear usually don’t have to be fixed. That doesn’t mean the buyer won’t want a paint credit to cover a purple wall :).
That said, there are issues that come up that involve structural defects, building code violations, or safety issues. These are issues that can impair or make financing on your home conditional on repairs. As a seller you don’t have to complete any repairs or offer credits in lieu of repairs but keep in mind that it’s always better to negotiate. If your current buyer has a problem with it, you will most likely have issues with other future buyers. If your contract is cancelled and you have been given a copy of the inspection report, you must disclosure this inspection report to future buyers. 
Below you will find the most common items that come up during an inspection report. Keep in mind that every home is different and this is not an all encompassing list but it’s a great starting point. For more info on a home inspection
When preparing your home for sale keep in mind: Repair, Replace or Remove
  • Repair when ever possible. It will usually cost you less to repair in advance than it will after inspection.
  • Replace if it’s a necessary component of the home (such as roof shingles)
  • Remove if broken and not a necesary home’s component (example: a non functioning ceiling fan)
TOP 5 ISSUES
1. Plumbing
Major issues will include plumbing leaks under the foundation. This issue will require a plumber to find the leak with a camera then they have to dig a trench under the slab foundation to repair the leak. This is very costly and can be a deal breaker for most buyers. More info on slab leaks
Other issues include:
Leaks – If it’s leaking, fix it. This is usually a cheap fix that can be more costly after an inspection. Remember to address any water damaged caused by these leaks.
Water Pressure – A home inspector will check water pressure by turning on multiple faucets and flushing toilets at the same time.
Backed-up lines – does water flow well down the drains? A home inspector will fill up the sinks and bath tub and then release the water. Slow draining water in sinks and bathtubs usually means there is a clog somewhere. If the water is slow to drain, have the drain checked. There might be a backup
2. Electrical
Serious electrical issues on a home inspection report can include things like faulty wiring, old wiring, bad junction box connections, spliced wiring, and defective electrical panels. If you think there is an issue in these areas, it’s best to have an electrician check them out.
Electrical codes change constantly so you won’t be able to avoid all issues. Before listing your home check to see if all electrical outlets are working. Replace burned out light bulbs. Replace non-working light fixtures. Do you have GFCI outlets in wet areas?
3. HVAC
We can not live without air conditioning in the Houston metro area. During a home inspection, the inspector will visually check the units and the furnace.  Common issues will be rusted pans, clogged drain lines, not enough walkway space to and around the units, dirty filters and temperature differential (Large gaps in temperature differential can signal a potentially major problem to the HVAC system).
I’d recommend to have your HVAC serviced before listing the home. Almost every inspector will request that the HVAC system be serviced. Might as well do it in advance.
 
4. Foundation
Most homes in the Houston metro area are on pier and beam or the slab (concrete) foundation. Most homes in our area will have foundation issues at some point. Most of the soil in Houston has a high content of clay, which is usually very sensitive to moisture fluctuations. Water will make the soil expand and drought will make the soil contract. The contraction and expansion in the soil under a home causes the house to settle, shift, crack and potentially move.
Concrete does not give much without breaking. Signs of potential foundation issues: sloping floors, difficulty opening and closing windows, doors not latching properly, separation of brick from the home, large sections of missing mortar from the brick, etc. If you are concerned, let’s chat about your options.
One thing you can address that shows up in every report is grading. The soil (mulch/rock) around your foundation should slope away from your foundation not towards. A slope away from the foundation will allow water to flow away from the foundation and not pool along the foundation. The concrete foundation should not be completely covered by soil, mulch or rock. More info
5. Roofing
A roof can be a major issue and could deter financing. Certain loans will require that the roof have a certain number of years life left in it. Redflags:
  • Evidence of prior leaks. The decking is the plywood layer of roofing to which the felt and shingles are attached.  You (and your inspector) can visually inspect the decking from the attic where the underside of the plywood will be exposed.  Large water spots, dark areas, and rotted plywood will be evidence of a prior leak.
  • Missing Shingles. The inspector should physically climb onto the roof and “walk it” to inspect its condition or they will position a ladder close to the roof to visually inspect the roof with binoculars.
  • Loose or missing nails on shingles
Other smaller red flags:
  • Caulking: Caulk every area that should be caulked. Around windows (inside and out), tubs, sinks, showers, counters and backsplashes.
  • Foggy windows. Double pane windows have a gas within the two panes. This gas with time will escape and cause condensation within the two panes. For more info
  • Sprinklers: Run your sprinkler system and adjust or repair any broken sprinkler head.
  • Wood rot in the exterior of your home. This problem is best to remedy before you put the home on the market. There are types of loans that will not permit financing until this is repaired.
  • Exhaust fans: In the past builders would vent the exhaust fans into the attic. New codes don’t allow this because in theory the exhaust fans could be pumping moisture into the attic.
  • Window: Missing screens, windows that will not open or close properly. The windows must open for safety.
  • Chimney: is it gas fireplace? does it work? Do you need a key to turn on the gas? Do you have the key?
  • Doorbells: Does it work?
  • Water heater: The T&P values on your water heater are recommended to be changed every 3 years. For more info on this
  • Appliances: The stove, dishwasher, microwave and range typically stay with the home unless it’s excluded. Do they work?
  • Pests: do you have pests? I would recommend you treat your home before putting it on the market. Check for termites. This can be a big expense to treat. For more info

It’s Time We Had A Realistic Discussion About Your Home’s Value

Posted on by Ali Palacios - Broker

When you go to sell your house, there’s a good chance you’re not going to agree with what a real estate agent suggests for a list price.

It’s one of the most common issues real estate agents deal with, and help homeowners understand.

Problem is… many homeowners don’t necessarily see it as agents trying to help them, so much as convince them to do something they don’t want to do.

Naturally, you want as much as you can get for your home. And, you’ll certainly have your own opinion on the value of your home. You’re totally entitled to your opinion. And it’s totally your call to ignore the agent’s advice, and list your house for as much as you like… if the agent is still willing to work with you.

But if the agent is not willing to, it doesn’t matter, you can always find any number of agents who will put it on the market for as high of a price as you want.

But, it might be the biggest mistake you can make…

In the least, you’ll just waste your time. (And the agent’s time.)

But, it could also lose you money, instead of makeing you money…

There’s lots of ways this happens, but one of the biggest reasons is that the longer you are on the market, the more it impacts how buyers perceive your home, and what it is worth.

And that is hard to hide…

It has become more and more of an issue as so much data and information has become available online. Like, how long a house has been on the market, and how many times it has been listed without selling.

So, the best thing to do, is list your home based upon the current market data… not what you want, wish, or think.

When it comes to pricing your home for sale, Jack Welch, former CEO of General Electric, has such an appropriate quote…

“Face reality as it is, not as it was or as you wish it to be.”

Let’s break that down and apply it to pricing your home… starting in reverse.

As You Wish It To Be

This is so human, isn’t it? Everybody has things in life they wish were different and better.

 

And so it is when many homeowners want to sell their home.

Not to say that everyone thinks that their home is worth a million dollars. But almost every owner feels like their home is worth a good amount more than the actual market value. Usually by tens of thousands of dollars. Regardless of price range.

But the market value is based upon what buyers have paid for similar homes recently. So you need to base your price against the prices similar homes have sold for.

You can’t expect your 3 bed, 1 bath Ranch style home, to sell for as much as a 4 bed, 3 bath Colonial in a similar (or better) location and condition than yours.

You can wish it would. But it probably won’t.

Not As It Was

A lot of times, when they hear how much their home is worth in the current market, say something along the lines of…

“There’s no way my house is only worth $525,000. Back in 2005 my house would have gone for $700,000! And, sure, I know that the market was crazy high back then, and the market took a dive. But the market is bouncing back now. So, I can’t see asking anything less than $650,000.”

OK. Deep breath. Phew. Here we go…

But, let’s just say it was worth $700,000 back in 2005. And now it truly is only worth $525,000. That is the reality. Now. And that is all you can deal with. You can decide not to sell. Wait out the market until prices go up to a point you are happy with.

You cannot, however, turn back time. You can’t price your home based upon such distant history… as it was. It won’t do you any good.

Face Reality As It Is

It is that “simple”. But yet, so hard.

So many homeowners overprice their homes, and lose money in many ways by not facing reality as it is.

And a lot of real estate agents reluctantly allow homeowners to do it. It takes a pretty special agent to be firm about pricing with a homeowner.

Because many agents will do as you wish. And they’ll put your house on the market and wish right along with you.

First, they’ll wish for a miracle…

Then, they’ll wish they were firmer with you on the price to begin with…

And the whole entire time, they’ll wish that you would just lower your price already…

And they will bring up lowering your price. Constantly. And you will be annoyed. And feel like that’s all they are doing. And you’ll start thinking about who the next agent you hire will be, once your listing contract expires with the agent who did as you wished.

So, save yourself some time, aggravation, and make as much money as you can and should on your home, by facing reality as it is, not as it was or as you wish it to be.

You’re better off listening to and hiring an agent, who is firm about your market value, and helping you face reality, than you are working with an agent who is, well… wishy-washy.

Source: http://www.bestrealestateblog.com/time-realistic-discussion-homes-value?m=JnojPGPgYwNqRUqKIeuc

Pricing your Home

Posted on by Ali Palacios - Broker

Correct Pricing is Critical

Pricing your home correctly from the very start is the single most important thing you can do to ensure a successful sale – one that is quick and puts the most money in your pocket.

Homeowners are often tempted to set the initial list price higher than fair market value because they think they can simply lower the price later if the property doesn’t sell. Most people don’t realize, however, that setting the price too high in the beginning can drastically increase the time it takes to sell and typically achieves a final sale price that is well below market value.

  • The higher the list price, the more buyers will automatically exclude your property from consideration. By pricing your property at fair market value, you increase the number of potential buyers.
  • A listing generates intense interest during its first two weeks on the market, but activity drops off by more than 80% in the third week and beyond – subsequent price reductions notwithstanding. A property that is priced too high will not get the necessary attention during this critical period of peak activity.
  • Buyers are wary of price-reduced property, thinking something might be wrong with it or that it may still be priced too high.

Statistics clearly indicate that the longer a property is on the market, the lower the final sale price will be. Properties that sell in the first four weeks typically achieve a sale price within 1.9% of their fair market value. This discount increases to 3.6% after four weeks on the market, 5.6% after 12 weeks, and 8.9% after 24 weeks! By pricing your home correctly from the start, you greatly increase your chances of selling your home faster and for more money.

As experts in your neighborhood, my team and I have the knowledge and experience to choose the best list price for your property. Our goal is to maximize your proceeds while minimizing the time it takes to sell your property. 

For more info:

Pricing your home

In a neighborhood of similar homes, why is one worth more than another?

The answer is simple. Every home is different. When a home is sold, a willing seller and a willing buyer have just announced to the world the value of that home. From there, other similar homes are benchmarked, but other factors come into play. The most important are:

Location – The closer a home is to jobs, parks, transportation, schools, and community services, the more desirable it is. The opposite can happen if the home is located near a railroad track, next to a busy street, built in immediate proximity to power lives or cell towers, an airport, etc.

Size – Square footage impacts home values because they’re built using more materials. Larger lot sizes mean more privacy. Today, family members want more privacy. The median home purchased today is a three-bedroom, two-bath home. It is easier to sell a 3 bdrm, 2 bath home, than a 2 bdrm 1 bath home. The larger home favors more potential buyers.

Features and finishes – Features such as outdoor kitchens and spa baths make a home more luxurious. A home finished with hardwood floors and granite countertops is going to cost more than a home with carpet and laminate countertops.

Condition – The closer a home is to new construction, the more it will retain its value. It’s perceived as more modern, up to date, and perhaps safer. Homes that are not updated or in poor repair sell for less. It’s a good idea for homeowners to keep their homes updated and in top repair.

Curb appeal – From the street, the home looks clean, fresh, and inviting. Fresh landscaping and flowers won’t change the size or location, but they certainly add charm. When two homes are identical in the same neighborhood, a higher price may come down to something as simple as views, or paint colors, or the overall taste of the homeowner.

Valuing a home will never be an exact science, but if you buy wisely, keep your home updated and in good repair, you should recoup most if not all of your investment. Maybe even gain equity over time.

Source: HAR.com

Progressive Open House – March 18, 2018

Posted on by Ali Palacios - Broker
Join us for 14 property tour in Lakes of Bella Terra this Sunday, March 18, 2018 from 1-4pm. We will be serving snacks and refreshments. Each time you visit a property, you will be entered into a gift card drawing!
Lakes of Bella Terra is a beautiful community located at the corner of Westpark Tollway and Hwy. 99 in Richmond, Texas.
Enjoy a resort style living with miles of walking trails, junior olympic pool, water playground, tennis courts, volleyball court, fitness center, soccer field and dog park.
Minutes from shopping and restaurants. Simply a wonderful place to live!
Ali Palacios
Realtor
Today’s Home Realty
832-418-0670
ali.palacios@todayshomerealty.com

Richmond Texas Community Wide Trail Network

Posted on by Ali Palacios - Broker

Wouldn’t you love a more pedestrian/bicycle-friendly community?

Having the opportunity to travel all over the Houston metro area, the one thing I envy about the inner loop area are the bike and walking trails implemented throughout the city. I wish we had better trails near by and I really wish they were all linked!.

It looks like Richmond is working on it. I know that this is a long way away but I’m happy it’s being considered. For more info check out the link below.


 

 

For more information