Harrisonburg Real Estate Guru

Harrisonburg’s Blizzard of 2010 Creates a Snowstorm of Real Estate Interest

Harrisonburg Real Estate News and Commentary

THROUGH RAIN SNOW, SLEET, HAIL, A REALTOR’S JOB…….

I know how important it is that we get our mail, and the creed for the mail carrier is a familiar one, but you might not apply it to my line of work. You might just think that after repeated snowfalls that caused cancellations of nearly everything, accumulations measured in feet, that people would not be interested in going out and looking for new homes- you’d be wrong and so was I.   

The day following our 19″ + snowstorm I received a phone call from clients asking me if it would be possible to see some houses in the Harrisonburg area.  I had just settled inside my own home after hours of shoveling out my sidewalk and driveway. My back was already hollering “uncle”, but as I considered it, I recalled my father saying  “you should make hay while the sun is shinning boy”.  So even with no sun shinning, I agreed to make some appointments and much to my amazement many sellers out there in the frozen tundra were anxious for me to bring my clients to see their homes. On this snow swept and cold winter’s day we trekked through what looked like Minneapolis rather than Harrisonburg Virginia, and I showed seven homes that day.   

One of the homes I toured that day was a foreclosure on nearly 2 acres. This stately home set in the middle of the nearly 2 acres and was vacant. The snow plows had created a five foot wall between the house, my investor client, and me. We decided we would slog through the back of the property in order to get to the front.  The white fluffy snow was up around our knees and higher as neared the house and I never felt more out of shape. No one had shoveled the lovely semi circular driveway and the grand front entrance had drifted to three feet deep. Even with all of this, we were able to see this house and the buyer put in an offer and in the coming days and after some tough negotiation the seller finally accepted our offer.  Both the buyer and the seller were happy that we ventured out in the snow that day.  

A few days later the Harrisonburg-Rockingham County area received another storm and I again received a call from buyers wanting to see houses in the Harrisonburg area. This time I showed five homes and wrote another offer!    

Two storms plus 20″+ of snow =  2 offers in that week-  go figure.  I guess my wise old father dad was right.  There is never a bad time to buy and sell a home.  If you are buying or selling a home in Harrisonburg or the surrounding area, call me for a no obligation interview.  I can help you achieve your goals and I’m anxious to serve you no matter the weather!   

Barry Suttles - REALTOR   

Kline May Realty   

540-246-5666 anytime mobile   

540-437-3671 office   

www.BestValleyHomes.com

Playing Chess, Time Machines, Beauty Contests, and Ugly Children

Harrisonburg Real Estate News and Commentary

HGTV Can’t Sell Your House

Many people these days are wondering why the home they have loved and enjoyed has been on the market for many days and months without a contract….without a sale. One woman said to me, “I have had a professional designer stage my home, and I had a landscaper help to create the curb appeal HGTV said was so important.”  “We listed our home with professionals, and we have done everything you have asked without success.” “What are we doing wrong?”  She was doing a lot, but the most important thing that lures buyers to your home is price. She priced her home too high and then wouldn’t take sound advice to lower it to market price.

It’s a Chess Game and You Are Protecting Your King

Staging, curb appeal, and all of the other HGTV buzzwords are only a small part of what ultimately helps to sell a home. Like a game of chess there are a number of winning strategies you can employ.  But, protecting your king (price) so fiercely that you ultimately fail to achieve the goal of selling your home is ridiculous and a game loser. Your king may have to move to win the game!  Why are you wasting your time, and your Realtor’s time marketing a wonderful property when you really are not ready to sell?  When you have had your property listed for months with no bona fide offers or interest in your home, what makes you think that holding your price steady will sell your home? It has been rejected by the market! Ouch! 

It’s the bigger sucker theory at play, hugh?  You know the one I’m talking about….there must be someone out there so stupid that they won’t know my home is overpriced.  Likewise a strategy of reducing the price over time while following a retracting market is even more fool-hearty. You’re chasing your opponents queen all over the chess board with your pawn….another losing strategy.  If you consider the time value of money you will find that holding out for a price actually costs you money in the long run.  Like the true chess-master you need to see all the angles of the board in order to beat your opponent (that pretty little rancher or cape cod down the street) and secure that elusive buyer in today’s market.

A Time Machine Would be Helpful Right Now

In a buyer’s market where there are many sellers in competition, your best move is to price your home aggressively below the market right from the start.   Also keep in mind that all of the money you think you’ve made as your home appreciated in value over the years fluctuates up and down.  No real gain is recognized until you actually sell!  So if you are agonizing over the fact that your home would have sold for more money 3 or 4 years ago, try building a time machine, go back, and sell. That will be easier than trying to convince a savvy buyer, who has all of the information of the internet at their disposal, to pay you more today.  No one should try to time the market, buying and selling your home in order to make quick money.  This is a strategy best utilized in the stock market and even there should be done over a long term. 

More Than Just a Beauty Contest

Many people make the mistake of believing “..my house is better, bigger, nicer, newer, prettier, etc.. than they guy’s across the street, so I’ll be able to get more than he got.”  We all think our children are more beautiful than anyone else’s children. Is that the truth or are we deluding ourselves?  Where did all of us ugly people come from?  (Come on….my mother used to tie a pork chop around my neck so that the dog would play with me, but she thought I was beautiful.) Just because you added this upgrade or that addition to your home,.. or built and painted that,..your home will not necessarily sell for more. 

Case in point, I sold a house to someone who installed a beautiful pool soon after they purchased.  Years later they asked me to help them sell their home. We eventually sold it to someone who really loved everything about the home, but the pool.  The new purhaser wanted to pay less for the home because they saw a pool as a liability and they subsequently had it filled in. 

So remember, home buying is more about emotion to the buyer and seller than any other purchase in our lives. Which brings me to my final point…….

Hire a Professional to Help You to Win the Contests

Emotions aside, buying and selling a home is often the most significant financial event in our lives.  After you have uttered these words, “I think I would like to sell my home”, or “I think it is time to buy a home”, the next step is to hire a professional who will put emotions aside and guide you through the myriad of complex processes and negotiations with a goal of insuring you get your best deal. It will pay you dividends in the long run.

Barry Suttles - REALTOR

Kline May Realty

540-246-5666 anytime mobile

540-437-3671 office

www.BestValleyHomes.com 

Homebuyer Tax Credit Extended and Expanded

Harrisonburg Real Estate News and Commentary You Can Use

The Unemployment Insurance bill President Obama signed on November 13 included included a change critical for Realtors^®: An extension of the $8,000 homebuyer tax credit. Income limits have been raised, and now some existing homeowners can also claim a credit if they buy a new home.

The basics:

• To claim any credit, buyers must have a contract by April 30, 2010 and close by July 1, 2010.
• The income limit has been raised to $225,000 for couples.
• First-time buyers can claim an $8,000 credit, as before.
• Buyers who already own the home they are selling (or have sold), and have lived there for five of the past eight years can claim up to a $6,500 tax credit (on homes worth $800,000 or less).
• Both credits apply only to primary residences.

Barry Suttles – Realtor

540-246-5666 anytime mobile

New Homes Group – Kline May Realty

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