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So you’re looking to sell your home and you’re proud of how well you’ve cared for it. However, that care won’t go far if it can’t be seen in terms of value. That means if you want to get top dollar back on your investment, you’ll want to try and invest in ways that will actually bring up the asking price and help you increase your home’s overall value.

While you’ll likely hear of many different ways you can increase the value of your home, some are more effective than others, and sadly many of these effective ways are often overlooked. So on this blog, we’ll show you five ways that you can increase your home’s value that you likely didn’t expect.

Replace the Garage Door

You’re going to notice something about a few of these tips: they’re all improvements to the exterior of your home. That’s because one of the most important factors in regards to the value of your home that’s overlooked far too often is its curb appeal, or the impression it gives potential buyers as they approach it from the street. A home that looks beautiful is one that will immediately appeal to nearly any buyer, whereas one that doesn’t look great at first glance will usually bring the entire value down.

When it comes to the exterior of your home, the garage door is one of, if not the biggest influencer over your home’s condition. It makes up a large chunk of the front of your home, is one of the first things everyone sees, and is something everyone notices. An old, tattered door will not inspire confidence and really doesn’t look good, whereas a new door or even an older door that’s been freshly painted is a big boon to the overall curb appeal of your home, and thus its value.

Update Exterior Siding

This is a pretty big investment for someone who’s considering selling their home, but cracked, old, and damaged siding is a huge curb appeal killer and has even led to a number of potential buyers running away at first sight. Siding is a big project, and therefore shouldn’t be undertaken lightly, but new siding can add loads of value to your home. Especially when most siding panels on modern homes can last anywhere from 25 to 30 years or more if they’re properly cared for. For a potential buyer, not having to worry about replacing the siding on your home for a long time to come is something they’ll be more than happy to take in exchange for a higher price tag.

Improve Your Front Door

So your buyers have seen the siding of your home and the garage door, but there’s one more aspect to your curb appeal: the front door itself. And old, outdated, or worn-out front door gives off the vibe that the house inside is going to be as tattered and beaten as what’s protecting it. However, a door that’s new, or has recently been repainted to look fresh and clean can make the entire front of your home appeal well-kept and tidy, even if the paint on the stucco or siding around it isn’t exactly pristine. To go a step further, re-paint the trim around your door, pressure wash the side of your home to remove any dirt and dust accumulation, and even consider planting a few new flowers or shrubs near your front door to give it an even greater appeal as an entrance.

Furnish Your Attic

This may or may not be possible, depending on your floorplan and layout, but attics that have larger and more open spaces could make excellent extra bedrooms. Remodeling Magazine’s 2016 data estimated that remodeling an attic had an average national cost of around $1,200 and recouped around $1,482, a 116.9 percent increase on your return. This can go even further if you have exposed brick in your attic, where you could get nearly five percent higher than your expected price listing and sell your house as much as 36 days faster!

If You Choose One Room, Make It a Bathroom

Most people think that if you’re going to invest in one room in your home to increase its value, they always lean towards the kitchen. However, while the kitchen is an extremely important room and most people won’t buy a home with worn-out or dated kitchen, the fact of the matter is you really don’t get a lot of return on your investment. In fact, most people who remodel their kitchen before selling wind up actually failing to recoup their investment in its entirety, making the effort a pretty hefty loss.

Bathrooms on the other hand, go much further. According to Zillow Talk, a bathroom remodel has recovery rate of about a $1.71 for every dollar you spend on the project, or a 71 percent increase in your home’s value compared to the cost of your investment! Bathroom remodels are also significantly easier too due to the smaller space: you can likely find new plumbing fixtures, cabinetry, and lighting options that don’t have to cost a ton, and even major remodels are usually done in less than a week!

If you’re considering selling your home, speak with a Valencia Realtor as soon as possible! Call Dippy Real Estate at (661) 441-3304 to request a consultation and start listing your home on the market!
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If you’ve struggled to sell your house for some time, then your realtor may have suggested staging your home in an effort to try and drum up business. When looking for a home, most people look at listing photos straight away, and visually-appealing photos are much more likely to grab someone’s interest. However, staging a home can cost thousands of extra dollars, and the question then becomes whether or not the staging photos become worth this extra investment. We’ll answer this question on this blog.

How Is The Property Showing?

The longer your property is on the market, the more likely it’s seen several potential buyers who have walked away after one or two viewings without making an offer. This then often begs the question as to why. Does your home simply not have the features that others in the neighborhood do? Is your asking price too high? In the case of the latter, if asking price cuts still fail to bring in serious suitors, then odds are the price isn’t what’s scaring people off; it’s the home’s impression.

In cases like this, a makeover may work wonders in attracting new and even higher offers. How much of a makeover your home warrants depends on several things: your budget, your impression, and what you’re trying to highlight. In some cases, a simple de-cluttering of the home and better listing photos with brighter lighting and organization can immediately drum up more business than even an open house ever could. However, if you’re trying to sell a home that’s clearly dated, you may need some extra help, and this is where the question of cost versus return comes into play.

Can Home Staging Help You?

Buyers are visual—they want to take a look at a home and be able to picture themselves living there. The better your home looks in this regard, the more likely you’ll receive an offer, and the better the offers you’ll receive will be. However, in some cases staging isn’t necessary. If the home you’re trying to sell is small, having it empty may actually be more beneficial than placing a bunch of staging furniture in it. Empty homes aren’t necessarily bad for buyers, as they make it easier for them to picture their own things in the home and how they’d arrange it. Not to mention, empty spaces almost always look bigger than those that are filled with stuff.

However, if your home is already on the larger side, keeping it empty can have the opposite effect on some potential buyers, making it look too big, and thus scaring off potential buyers who think they can get something more reasonably sized for less cost. There’s another side to large houses as well: open houses. Staging may look great for photos, but it doesn’t really tell the whole story when compared to seeing a home in person. Having bright, modern furniture in a space when a potential buyer can come and see the home for themselves can really help solidify interest in a home, particularly when there’s a crowd of potential buyers all seeing a home at the same time.

Extreme Home Staging

If the home you’re trying to sell is worth a substantial amount (for example, $1 million or more), then odds are good you’ll want to stage your home, and do so to a much greater degree than you would with a small condominium. If your home is worth a lot but struggling to bring in offers, staging with a complete re-design could be the key to start attracting the right types of buyers.

For example, if you’ve been using your own furniture, which is fine for your tastes, but doesn’t seem to be pulling in a lot of bids from buyers, consider staging your home with modern furniture, different color schemes, and even replacing some light fixtures with new recessed lighting that is more appealing to a broader market. Some people have even gone so far as to do minor renovations on certain rooms, including widening doorways, replacing doors, and even replacing cabinets to give a more modern, attractive look to potential buyers.

This may cost you thousands in the long run, but proper staging and strategic asking prices at this point could actually bring in tens or even hundreds of thousands of additional dollars from a buyer who gets a much better impression upon re-listing than those who were taking tours of the property before.

Get help selling your home from a skilled and experienced Valencia Realtor by calling Dippy Real Estate today at (661) 441-3304!
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Homebuyers are often so eager to close a deal and get into the home they’ve fallen in love with that they often undermine their own best interests and pay more than they have to, which only leads to frustration as well as thousands of unnecessary dollars spent over the life of their mortgage. Buyers in hot markets as well as first-time homebuyers are the most susceptible to this fault, primarily because they have a hard time exercising restraint and discipline when it comes to the price.

If you want to avoid tumbling into this same pitfall and spending way more than you should, here are five things you should keep in mind to know if you’re paying too much for your house.

Avoid Staging & Open House Buzz

Realtors will often host open houses to try and drum up business and seek out a potential buyer. But all the crowds, food, music, and ooh-ing and aah-ing fellow-lookers will often bring out the competitive nature in everyone, who often have the mental resolve that they won’t be beat. This becomes especially true if the house has been staged properly, or made to look beautiful and attractive with bright lights, sample furniture, and more.

Remember: how a house looks when you see it isn’t how it’s going to look when you finally move in, so you want to temper your expectations. Also, it’s better to request a private showing of the home in order to ask the important questions, like “How’s the plumbing?” “When was the roof last replaced?” and “Is the air conditioner still under warranty?” Knowing the true underbelly of the home will make you far less inclined to overpay.

Take Your Time

Buyers who are in a hurry almost always wind up overpaying. In some cases, this can be a couple who has already sold their home, or someone who has recently experienced a major life change such as a new job in a new area. Buying a house is a process that takes time, and condensing it to a two-week ordeal means you’re bound to make a mistake or two, including not really getting the opportunity to negotiate or see just what it is you’re getting.

Having a real estate agent represent you who’s familiar with the area is a good way to mitigate this issue. Agents are often familiar with loads of different properties and can help you reasonably condense the amount of time necessary to complete a sale with minimal mistakes if you’re on a time crunch.

Lowball Offers

A “lowball” offer is one that’s substantially below the asking price, and is a tactic that you’ll sometimes see used on homes that have been on the market for months with little to no interest from potential buyers. In some cases, a homeowner who simply wants to get rid of their property will take the offer and accept the losses. But this isn’t all that common.

In most cases, sellers won’t take the offer seriously, or worse, see it as an insult. As a result, they’re likely not going to present a reasonable counteroffer, or even present one at all, and you’ve essentially shot yourself in the foot. Being respectful and reasonable with your initial offers will not only help you pay less for your home, but open the door for reasonable and productive negotiations.

Know the Neighborhood

A home may look beautiful and have everything you’re looking for, but what if it’s located in a neighborhood that’s riddled with crime, noise complaints, and all sorts of other problems? You may not realize this at first glance when driving through a neighborhood, but you definitely need to be well-informed about the home you’re considering buying.

Your best ally for learning more about a neighborhood? An experienced realtor, who can tell you all about reported crime rates, school quality, parking availability, and more.

Falling for “Shifting the Goalpost”

Sellers have figured out a few underhanded tactics to try and drive up the price they’ll get for their home without ever actually doing anything to improve its value. One such tactic has been dubbed “moving the goalpost,” and is when the seller continually reneges on the deal they initially agreed to, only to jack up the price. The hope is that the buyer loves the property so much they’re willing to go along with this increase out of fear of losing it, particularly if it doesn't seem like it's a big increase. Sometimes a greedy seller will renege two, three, or even more times throughout the process in an effort to jack the price up as high as possible.

Don’t stand for this: if the seller initially agreed to a particular deal, hold them to it. If they refuse to drop back down to the offer they initially accepted, odds are they likely weren’t going to go through with that deal in the first place, and you’re probably going to be paying too much for the home if you do eventually buy it.

Need an experienced Valencia realtor to represent you when purchasing a home in the Santa Clarita valley? Call Dippy Real Estate today at (661) 441-3304 to request a consultation and start searching for your dream home!

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When potential buyers drop in to see your home, whether with an agent or not, there are several things you can say that might sink your deal before negotiations even get serious. Here are three things you should never say when selling your home, as they could wind up doing far more harm than good.

“I’m Not Taking Less than X For My Home”

It’s perfectly normal not to want to be low-balled in offers for your home. Everyone wants a good deal, but you also don’t want to be fleeced on your home’s value just to make the sale. However, as a seller there are some things you’ll have to budge on. It’s normal to expect initial offers to come in low, but that’s why you have negotiations: if a buyer is truly interested, you’ll be able to eventually come to a final agreement on an amount you’re comfortable with taking. Showing you’re unwilling to negotiate beyond a certain point gives buyers little incentive to even try, and they’ll move on to the next home where the owners will likely be more receptive.

“The House is In Perfect Condition”

No house is in perfect condition. Period. Even brand new, never-before-lived-in houses have little quirks here and there that will need fixed. As homes sit in the sun and are pelted with rain, they’ll sustain damage. Saying your house is in perfect condition only makes you look like a stubborn, defensive seller who is unwilling to admit their property has faults and likewise will be unwilling to negotiate. Be open and straightforward with the faults in your home—it likely won’t hurt your final sale value all that much.

“We Spent a Ton of Money on [Insert Features]”

Just because you love the cherry wood floors you installed throughout your home or the modern, cutting-edge light fixtures you put into every room doesn’t mean that your potential buyer will feel the same. The fact of the matter is any reasonable buyer and their agent will look at comparable units throughout the neighborhood and use that along with the condition of your property to offer a similar price. They might not even like the feature you installed and are planning on replacing it as soon as they move in! Some features add considerable value to a home, but it may not be the ones you think.

Selling your home? Make sure it’s properly presented and your best interests are represented by a skilled Valencia realtor! Call Dippy Real Estate today at (661) 441-3304 to schedule an appointment!
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Unless you have a huge pile of cash just sitting in the bank, you may think purchasing a home is an unachievable goal. Credit history, rising home prices, and qualifying for a mortgage are all difficult tasks, but none more so than it takes to build up the tens of thousands of dollars necessary to make the sizeable down payment required to buy a house. However, this isn’t always true—buying a home doesn’t have to be difficult, and in fact you can save up enough for your down payment in as little as a year’s time! Here are a few tips for saving up so you can buy your first home.

Slash Your Rent

The rent on your current place is probably the biggest chunk of your monthly budget, and therefore the biggest hindrance to your savings. Cut your rent down and you can save the extra money towards your down payment. Consider moving in with a friend or family member, or consider getting a roommate to slash this monthly cost down.

What’s Essential?

There’s an important question anyone who is saving needs to ask themselves: do I need this, or do I want it? Can you get to work every day by taking public transportation or ridesharing? If so, then is a car payment plus insurance really worth it? Do you even really need television? Do you frequently dump money into a hobby that you could do without for a little while? Cut back on these things and you could find your savings grows substantially in no time at all.

Ditch Little Expenses

Do you need to be subscribed to Netflix, Hulu, Spotify, and many other different entertainment services? Do you stop at your local coffee shop for a latte on the way to work each morning? Do you eat out multiple times per week? If the answer to any of these questions is “yes,” then you have small expenses that you can afford to cut back on and save. Even something as simple as packing your own lunch and bringing it to work can save you hundreds of dollars per month.

Consider Selling Old Possessions

Do you have some things you bought and have barely used? That set of golf clubs you bought because you wanted to try to learn and gave up after two lessons? That mountain bike you bought at your friend’s encouragement? That dress you loved in the fitting room but haven’t worn since buying? All of these things could get you a fair return by selling them on Craigslist or Facebook Marketplace. Not only will this help you get your new home faster, but you’ll have less to pack and move there when you finally do.

Get help buying the home of your dreams by calling Dippy Real Estate today! Dial (661) 441-3304 and let our Valencia realtor help you get the best deal on a home that fits your needs perfectly.
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Buying a home can be an intimidating experience, but the ability to invest in your home, build equity, and get on the path to owning a home of your own is a dream for many people. However, the jump from rental to ownership can be a huge and intimidating task, one which makes a lot of potential buyers nervous. Because of the uncertainty, there are a lot of myths we frequently hear from renters. On this blog, we’ll set the record straight on a few of them and show that home ownership is closer than you might think.

I Don’t Have a Down Payment

Traditionally, a down payment on a home is thought of as 20 percent of the home’s total cost. Let’s face it, no matter how large of small the home you’re buying, that’s a lot of money, and for first-time home buyers in particular, it’s an amount of money that you very likely don’t have on hand. Believe it or not, this is fairly normal, and believe it or not, you can still get a mortgage with a lower down payment amount. Talk to potential lenders about their options for reduced down payments—some lenders will offer mortgage loans with a down payment as low as three to five percent! These will carry extra fees and mortgage insurance requirements, so your monthly payment will be more expensive, but if your down payment is all that’s holding you back, you have more options than you think!

I Can’t Find a Home I Like in My Price Range

Santa Clarita has thousands of homes and dozens of them are for sale at any given moment. The market changes every day, so while you may not be able to find something you like that today, that literally could change tomorrow. That being said, if you’ve been searching for months and haven’t found something that fits your needs, take a closer look at your needs to figure out what’s the most important to you: is a location near good schools important, or are features in your home more necessary? Also, can you afford a home that matches what you’re looking for?

You can find the home you’re looking for, but what you’re looking for might take some adjustment. Make a list of what’s the most important to you as a buyer and then start your search again based on that list. You may be surprised how quickly you find a home that makes you happy simply by changing your perspective.

The Housing Bubble will Burst

California is in an interesting position in terms of a housing market right now. Mortgage rates are at historic lows, making loans cheaper than ever. This has led to lots of potential buyers on the market. However, the number of homes on the market is still low. When mortgage rates increase, home prices will have to drop to accommodate for the budgets of potential buyers. Let’s look at an example: if you purchase a one-million dollar home here in the hills of Valencia, that same home will have to sell for $900,000 to keep monthly payments the same if interest rates were to rise a single percent. While mortgage rates will rise eventually, prices probably aren’t going to drop anytime soon.

I Can’t Compete Against Cash Offers

Anyone who’s selling their home knows that an offer to purchase a home in cash is usually a much quicker transaction with fewer contingencies and a faster close. However, they usually also come with a much lower price tag. Therefore, there are two types of sellers: those who will take a faster, cash-based sale at a lower cost, and those who want to get the best price for their home and are willing to work with those who have a lender. Your realtor is your best ally in these cases, and can work with your seller, their agent, and your lender to help you craft a deal that’s ideal for everyone involved, including making your seller see the benefit of working with you instead of just opting for a cash bargain.

If you’re looking to purchase a home, Dippy Real Estate can help! We take pride in helping residents of the Santa Clarita Valley find the home of their dreams and close the sale quickly while getting the best possible deal. Dippy is passionate about helping her clients find a home that fits their needs and their budget, and makes the experience as personalized as possible.

Looking to buy a home? Call Dippy Real Estate today at 661-441-3304 to set up an initial appointment and start looking for the right fit for you!
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Summer is a time for fun, freedom, vacations, and a chance to break away from the normal daily grind of the rest of the year. What this also means is that those wanting to move will be in the market for a new home. This means that summer is also the best time to sell your home, so if you’re looking for the best time to put your home up for sale, you need to take advantage of these few months. Here are seven things you should know that might increase your chances of selling your home during peak season for the real estate market.

Go On the Market at the Right Time

Most people want to move during the summer months. Kids are out of school and can be transitioned easily, and the weather is nice, which makes a move far easier with less chance of property damage. A typical peak season homebuyer will often start reviewing the houses available on the market around March or April, but they’ll really get down to business after Memorial Day. This means June traditionally sees the highest number of homes sold every year nationwide. This trend usually continues through July and August, but by that point the number of homes on the market usually exceeds the number of remaining buyers, so it can be harder to close a deal. If you want to sell your home this summer, have it ready to go up for sale by the end of May at the absolute latest.

Prepare Your Exterior

It only takes a few seconds for a potential buyer to form an opinion about your home, and that first opinion will be based almost exclusively on the appearance of your home’s exterior. Putting in a few hours of work to make the outside of your home look clean and well-kept can inspire confidence in buyers and make them excited to see the rest of your home, while a dirty and unkempt exterior can turn them off from your home almost immediately. Mow the lawn, trim the bushes, water the plants, and touch up any paint that’s looking old or flaky and you could see potential buyers show a lot more interest in your home.

Keep the Home Cool

One of the biggest turnoffs to home buyers is a house that’s no cooler than the scorching temperatures outside. Buyers want to know they can come in from the heat to a cool and comfortable home, and if your home doesn’t show that, it’s a pretty big turn-off. If you have central air conditioning, consider having a maintenance tune-up service performed to get it running well again and be sure to have it on and working when potential buyers come to visit. If the system is off, it could be a red flag to the buyer, giving them the impression it isn’t working. It may cost a little more in your electric bill, but selling your home makes the investment worth it.

De-Personalize Your Home

Homes often contain our own little fingerprints on them everywhere. Things such as drawings and report cards on the refrigerator, family portraits hung on a wall, and artwork or paintings displayed proudly in a gallery or hallway all add those little touches which turn a house into a true, genuine home. Here’s the thing, they turn it into your home, not your potential buyer’s home. Buyers are usually more attracted to homes where they can envision it as their home. That means taking your personal touches off of it and allowing them to picture their own personal touches on it. If a buyer can establish this vision, they’re a lot more likely to put in a serious offer on your home.

Stage Appropriately

There’s a good amount of debate about staging and whether or not it’s really necessary to sell a home. On one hand, some people argue that seeing someone else’s stuff in a home makes it harder to envision that home as their own. On the other, an empty home can be seen as cold and uninviting. Generally, it’s pretty widely established that properly staging your home to make it look appealing to buyers is a good idea, but going all-out on doing it isn’t usually worth the cost.

Instead, you can take advantage of the season and stage your home to reflect the beauty of summer. Open the windows, place bright flowers on the tables, and have summer scented candles burning in a few places in your home are a few inexpensive but attractive things which make your home seem that much more inviting. You want to show your buyer what their home could be, not what it looks like with you in it, and not what it looks like completely empty, primarily because neither of those situations really matter once the house changes hands.

You should also consider hiring an experienced Valencia realtor who can represent you and get the best deal possible for your home. Dippy Real Estate can provide you with the experience and knowledge you need to sell your home quickly and at the best possible price. Dippy has a passion for working with people and can help you take full advantage of the peak sales season with excellent representation, quality marketing, and friendly, dedicated service.

Call Dippy Real Estate at 661.441.3304 and schedule an appointment to find out more about selling your home today!
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Selling your home can be difficult, especially when the market is slow and there aren’t a lot of potential buyers in a particular area. Most people believe that when it comes to being competitive in the market and attracting a buyer, a low price goes a long way. While this may be the case with things like regular retail stores, home buying is a different animal. In fact, believe it or not you may actually be able to sell your home faster by raising the price a little bit. Here is why this seemingly counter-intuitive method actually helps generate interest and locate a buyer for your home faster than simply waiting patiently.

Perceived Value = Selling Power

The price on an item tells a consumer more than just how much they’ll have to pay in order to receive it, it’s also a reflection of the quality of that item. For example, if you have a pair of shoes that costs you $20 and a pair that costs you $100, you’re automatically going to assume there are things about the $100 pair that makes them better and justifies that price difference.

The price on a home is the same: the more expensive it is, the more value your potential buyers will perceive it to have. Say you and your neighbor are both selling your homes and have identical floor plans (same square-footage, number of bedrooms/bathrooms, and same location), but you choose to price your home higher than they do. What that signals to potential buyers is that your home has more to offer than your neighbors, either in terms of features, quality, or condition. As a result, someone may choose to snap up your home faster, believing they’re getting a better-quality home.

A more expensive home also usually receives higher bids, which means the sale will close for a higher value, and you’ll actually make more money on the deal!

Buyer’s View

When you bump the price on your home, you can completely change the way a buyer views your home in several ways. For starters, some home buyers will actually not even consider a home unless it’s at a particular price threshold, thinking they’re not going to get what they’re looking for at anything less than that. A slight bump (say going from $345,000 to $350,000) might put you over that price floor, and generate the interest of buyers who may not have considered your home an option before.

When a buyer sees two similar homes priced differently, they’ll also start to look into why your home costs more and what it means they’re bidding on. When they start looking for answers, they start to focus on selling points, creating “confirmation bias” and actually possibly making them more interested in your home than they would your neighbor’s even though your neighbor’s house is cheaper.

A bump in the price also creates an illusion of interest amongst buyers. If someone is interested in your home and notices that the price has increased slightly, this is a sign that perhaps there are a number of bids coming in on the property, and the seller has chosen to raise the value to gauge who’s really interested. This is key, especially for properties that may have been on the market for a while, since a listing that has sat stagnant for a while often makes buyers question why the home isn’t being sold, and wonder what’s wrong with it.

Justifying the Higher Price

Let’s say a potential buyer goes and visits both of your homes to compare the two and determine why your home is more expensive than your neighbor’s. If your homes are identical, including identical appliances, similar flooring, other features that are comparable, they’re probably going to say your house is overpriced and they’ll bid on your neighbor’s. This means you have to justify the increased asking price in some way—make your potential buyers believe your home is truly worth the extra cost. Here are a few ways you can do that.

  • Staging: Stating your home is simply setting it up for viewers in a way that shows it in a positive light, such as with clean, well-arranged furniture, clean floors, and ideally set-up rooms. This is an extremely effective tactic when it comes to making a sale; homes which are tastefully staged have been shown to sell over 40 percent faster and for as much as six percent more in price.
  • Curb appeal: The first glimpse of a home’s exterior is a major chunk of a potential buyer’s first impression, and the first impression will have a huge influence over whether or not they submit a bid. Simply cleaning up your front yard, including mowing the grass and washing off the front of your home, can go a long way towards a positive impression, but you can go even further by spending a little bit of money on some landscaping. High-quality landscaping has led to homes selling for as much as 11 percent more than those with unattractive front yards.
  • Capital improvements: Is your home powered by solar? This is a highly in-demand feature in California right now, and will no doubt add to the appeal of your home. Newly-remodeled rooms like the kitchen or bathroom can also go a long way towards justifying a higher price.
  • Professional tours: Listings with professional photography or a video tour are perceived to have far more value than those with just a description and maybe a low-quality cell phone picture or two. In fact, a survey found that quality photographs increased perceived value for buyers by over 11 percent, while a video tour added an additional six percent!
It’s also highly advised you work with a Valencia realtor who can help you navigate the market and get the most value for your home. Call Dippy Real Estate today at (661) 441-3304 to schedule an appointment and get help selling your home faster!
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Selling your home can be difficult, especially when the market is slow and there aren’t a lot of potential buyers in a particular area. Most people believe that when it comes to being competitive in the market and attracting a buyer, a low price goes a long way. While this may be the case with things like regular retail stores, home buying is a different animal. In fact, believe it or not you may actually be able to sell your home faster by raising the price a little bit. Here is why this seemingly counter-intuitive method actually helps generate interest and locate a buyer for your home faster than simply waiting patiently.

Perceived Value = Selling Power

The price on an item tells a consumer more than just how much they’ll have to pay in order to receive it, it’s also a reflection of the quality of that item. For example, if you have a pair of shoes that costs you $20 and a pair that costs you $100, you’re automatically going to assume there are things about the $100 pair that makes them better and justifies that price difference.

The price on a home is the same: the more expensive it is, the more value your potential buyers will perceive it to have. Say you and your neighbor are both selling your homes and have identical floor plans (same square-footage, number of bedrooms/bathrooms, and same location), but you choose to price your home higher than they do. What that signals to potential buyers is that your home has more to offer than your neighbors, either in terms of features, quality, or condition. As a result, someone may choose to snap up your home faster, believing they’re getting a better-quality home.

A more expensive home also usually receives higher bids, which means the sale will close for a higher value, and you’ll actually make more money on the deal!

Buyer’s View

When you bump the price on your home, you can completely change the way a buyer views your home in several ways. For starters, some home buyers will actually not even consider a home unless it’s at a particular price threshold, thinking they’re not going to get what they’re looking for at anything less than that. A slight bump (say going from $345,000 to $350,000) might put you over that price floor, and generate the interest of buyers who may not have considered your home an option before.

When a buyer sees two similar homes priced differently, they’ll also start to look into why your home costs more and what it means they’re bidding on. When they start looking for answers, they start to focus on selling points, creating “confirmation bias” and actually possibly making them more interested in your home than they would your neighbor’s even though your neighbor’s house is cheaper.

A bump in the price also creates an illusion of interest amongst buyers. If someone is interested in your home and notices that the price has increased slightly, this is a sign that perhaps there are a number of bids coming in on the property, and the seller has chosen to raise the value to gauge who’s really interested. This is key, especially for properties that may have been on the market for a while, since a listing that has sat stagnant for a while often makes buyers question why the home isn’t being sold, and wonder what’s wrong with it.

Justifying the Higher Price

Let’s say a potential buyer goes and visits both of your homes to compare the two and determine why your home is more expensive than your neighbor’s. If your homes are identical, including identical appliances, similar flooring, other features that are comparable, they’re probably going to say your house is overpriced and they’ll bid on your neighbor’s. This means you have to justify the increased asking price in some way—make your potential buyers believe your home is truly worth the extra cost. Here are a few ways you can do that.

  • Staging: Stating your home is simply setting it up for viewers in a way that shows it in a positive light, such as with clean, well-arranged furniture, clean floors, and ideally set-up rooms. This is an extremely effective tactic when it comes to making a sale; homes which are tastefully staged have been shown to sell over 40 percent faster and for as much as six percent more in price.
  • Curb appeal: The first glimpse of a home’s exterior is a major chunk of a potential buyer’s first impression, and the first impression will have a huge influence over whether or not they submit a bid. Simply cleaning up your front yard, including mowing the grass and washing off the front of your home, can go a long way towards a positive impression, but you can go even further by spending a little bit of money on some landscaping. High-quality landscaping has led to homes selling for as much as 11 percent more than those with unattractive front yards.
  • Capital improvements: Is your home powered by solar? This is a highly in-demand feature in California right now, and will no doubt add to the appeal of your home. Newly-remodeled rooms like the kitchen or bathroom can also go a long way towards justifying a higher price.
  • Professional tours: Listings with professional photography or a video tour are perceived to have far more value than those with just a description and maybe a low-quality cell phone picture or two. In fact, a survey found that quality photographs increased perceived value for buyers by over 11 percent, while a video tour added an additional six percent!
It’s also highly advised you work with a Valencia realtor who can help you navigate the market and get the most value for your home. Call Dippy Real Estate today at (661) 441-3304 to schedule an appointment and get help selling your home faster!
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Home ownership is a dream or life goal for many people, but the cost of a home means few people can actually afford to pay for one outright. Instead, the overwhelming majority of people will have to borrow money from a lender in order to pay for the cost of the home, which they’ll then pay off in monthly installments. These loans are called mortgages, and they can come in many different, shapes, sizes, and forms. So how do you know you’re getting the best deal for you? What options should you consider when shopping around? Here is a brief look at just a few issues people take into consideration when shopping for a loan and how you can find the best mortgage for you.

Keeping a Low Monthly Payment

When determining their budget for buying a home, many people will often look primarily at how much they’ll have to pay per month over the life of their loan. As with any other loan, the more you put down up front, the less you’ll have to pay off over time and the smaller your monthly payments will be. The median home price in Santa Clarita right now is about $500,000, which spread out over a 30-year fixed mortgage with an interest rate of 4 percent means you’re going to pay $2,387 per month. But let’s say you buy that same median-value home and put a standard 20% down payment on your purchase. This means you’re only borrowing $400,000, and drops your monthly payment over 30 years to $1,909. That’s a savings of nearly $500 per month, and saves you nearly $72,000 in interest over the life of your mortgage. The more you can put down up front, the more money you’ll save in the long run, so keep that in mind when shopping around.

Unconventional Mortgages

Young adults are in a difficult spot when it comes to housing right now: rent is extremely expensive all across the city, making even small apartments difficult to afford, but very few of them also have enough money saved up to make a 20 percent down payment on a mortgage. If this sounds like your situation, there are options available to you. A 10 percent down payment loan requires less money from the buyer upfront, but also requires the purchase of private mortgage insurance from the Federal Housing Administration. Before you jump at this option, remember your monthly payment will be higher due to the smaller down payment, and you’ll have the added cost of the insurance, but if the only thing holding you back from buying a home is the cost of a down payment, this could be the option for you. In fact, FHA-insured loans allow down payments as low as just three percent.

Paying Off Quickly

If you’re a parent with young children, you may want to have your home and other large expenses paid off before your kids head off to college, which in itself is far from cheap. While most mortgages are 30 year loans, a 15-year fixed-rate loan can allow you to rapidly build equity in your home and fully pay off your loan in half the time. While you’ll officially own your home sooner, you’re going to pay a lot more per month. If your budget is going to be tight, you’re going to want to think twice about this option, as sudden expenses are an almost certainty when it comes to young children.

Planning on Moving?

Many different jobs and careers involve people to move from city to city fairly frequently. When this is the case, is it really worth it to buy a house? After all, mortgages are one thing, but the actual costs associated with buying the house itself are also expensive. In fact, some estimates say it can take as much as five years to fully recoup the costs of purchasing a house. While it’s always better to invest your money into a home rather than renting, you may want to consider an option that will help you build equity quickly, such as a 15-year loan. You’ll pay more per month, but you’ll build value faster and recoup your costs quicker for when you have to pack up and move again.

Downsizing Properly

What if you think you purchased your dream home but in reality you’re paying too much for too much house? One of the smartest things you can do when investing in your home is to purchase a home that meets your needs, but does not exceed them, and that may mean selling your current home and purchasing a smaller, less expensive one. The good news is you can use the equity you built up in your previous home to significantly reduce your monthly payment in your new one.

This is a popular option for older individuals, who have been in their home for some time, but now that their kids have grown up and moved out, they’re ready to downsize into something more comfortable and appropriate for their needs. It’s actually not uncommon for these buyers to be able to buy their new house outright thanks to all of the equity they’ve built up from their previous house. In this case, you might not even need a mortgage. However, if you do, you may want to consider a shorter-term mortgage on the new place, like a 15-year, so you can pay it off and take full ownership of your home quicker.

Shop Around

A mortgage loan is arguably one of the most important decisions you’ll make in your life, so it pays to do your homework. Shop around before making your decision. A difference in just half a percent in your interest rate can mean tens of thousands of dollars in savings over the life of your mortgage, so make sure you’re getting the best deal. Get offers from at least a few different lenders or consider using a mortgage broker to help you find the best possible deal. Mortgages can take anywhere from a few weeks to a few months to get, so you have plenty of time on your hands to do some homework.

A qualified Santa Clarita real estate agent can also help you get the best deal on the home of your dreams! Call Dippy Real Estate today at (661) 441-3304 and schedule an appointment if you’re looking to buy a new home for yourself!
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