Sellers: The Five Biggest Turn-Offs For Buyers

A lot of sellers don't listen to their real estate agents, so we'll tell you what your agent wants to say, but can't say to you and this is it - your agent can't get you the price you want unless your home is in pristine move-in condition.

That means no sticking drawers in the kitchen. No leaning fences. No rust-stained plumbing fixtures. We could go on, but maybe we need to make it clear. If you have even one of following "turn-offs," your home won't sell.

Buyers can get instantly turned off. Here are their five biggest turn-offs:

1. Overpricing for the market
 2. Smells
 3. Clutter
 4. Deferred maintenance 

5. Dark, dated décor
 

Overpricing your home

Overpricing your home is like trying to crash the country club without a membership. You'll be found out and escorted out.

If you ignored your agent's advice and listed at a higher price than recommended, you're going to get some negative feedback from buyers. The worst feedback, of course, is silence. That could include no showings and no offers.

The problem with overpricing your home is that the buyers who are qualified to buy your home won't see it because they're shopping in a lower price range. The buyers who do it will quickly realize that there are other homes in the same price range that offer more value.

 

Smells

Smells can come from a number of sources - pets, lack of cleanliness, stale air, water damage, and much more. You may not even notice it, but your real estate agent may have hinted to you that something needs to be done.

There's not a buyer in the world that will buy a home that smells unless they're investors looking for a bargain. Even so, they'll get a forensic inspection to find out the source of the smells. If they find anything like undisclosed water damage, or pet urine under the "new" carpet, then they will either severely discount their offer or walk away.

Clutter

If your tables are full to the edges with photos, figurines, mail, and drinking glasses, buyers' attention is going to more focused on running the gauntlet of your living room without breaking any Hummels than in considering your home for purchase.

Too much furniture confuses the eye - it makes it really difficult for buyers to see the proportions of rooms. If they can't see what they need to know, they move on to the next home.

Deferred maintenance

Deferred maintenance is a polite euphemism for letting your home fall apart. Just like people age due to the effects of the sun, wind and gravity, so do structures like your home. Things wear out, break and weather, and it's your job as a homeowner to keep your home repaired.

Your buyers really want a home that's been well-maintained. They don't want to wonder what needs to fixed next or how much it will cost.

Dated décor

The reason people are looking at your home instead of buying brand new is because of cost and location. They want your neighborhood, but that doesn't mean they want a dated-looking home. Just like they want a home in good repair, they want a home that looks updated, even if it's from a different era.

Harvest gold and avocado green from the seventies; soft blues and mauves from the eighties, jewel tones from the nineties, and onyx and pewter from the oughts are all colorways that can date your home. Textures like popcorn ceilings, shag or berber carpet, and flocked wallpaper can also date your home.

When you're behind the times, buyers don't want to join you. They want to be perceived as savvy and cool.

In conclusion, the market is a brutal mirror. if you're guilty of not putting money into your home because you believe it's an investment that others should pay you to profit, you're in for a rude awakening. You'll be stuck with an asset that isn't selling.

Homeowners Associations: Be Sure To Pay Your Fair Share

Every time a condo sells, the new owner inherits obligations passed on by the former owner or required by the Homeowner's Association (HOA). There are the obligations to obey the rules, pay the homeowner fees and to volunteer for HOA service.

But now and again, someone gets the bright idea that new owners should pay a special fee at closing as a contribution to working capital or reserves. This idea appeals to current members because they are exempt from paying it, like a hotel tax foisted on tourists. It also seems fair since new members haven't contributed to reserves. A newcomer contribution seems to level the playing field.

There are several fatal flaws with these rationales. Requiring new members to pay a special fee redefines the homeowner fee allocation. Redefining the fee allocation requires up to 100% approval by all members. And even if you could get the required vote, unless the fee applies to one and all, present and future, it is neither fair nor legal.

Secondly, while new members have not paid into reserves is true, they don't owe the money. New members are not responsible for reserves which should have been collected in the past. Reserves should be paid by those that are receiving the benefit. So, part of the monthly fees are reserves to pay for repair or replace things like roofs, paint and siding as they deteriorate.

The reserve contribution should equal a month's worth of that deterioration. In other words, current members should pay for the portion of those deteriorating assets they just got the benefit from. New or future owners have received no benefit so owe nothing to reserves. If there is a current shortfall in reserves, it's because past members did not pay enough.

If your operating budget or reserve plan is inadequate, fix it and have current owners pay the freight. If you haven't hired a Professional Reserve Analyst (PRA) credentialed reserve study provider to perform a reserve study, do so as soon as possible. See www.apra-usa.com's Member section for a list of PRAs.

A Reserve Study is an indispensable planning tool that every HOA needs. It will provide a maintenance and funding schedule for the Board that fairly divides costs among all owners along the time line.

So, current members, pay your fair share. New members, pick up the baton passed by the outgoing members. There are obligations that go with that baton, to be sure, but one of them is not paying for the HOA's past mistakes.

Now Is The Time To Plan The Perfect Back Yard This Summer

Getting ready for summer may be the last thing on your mind when you are trying to dig your way out from under three feet of snow, but it's never too soon to start making backyard plans - especially if you are envisioning big changes.

Here are few tips for some of the most popular backyard additions and changes, with planning you can start right now.

Pools

If you're a fan of having a pool in your backyard, you undoubtedly know that building one can be an expensive and time-intensive proposition. Experts say a pool can be built within six to eight weeks, but keep in mind that's for a very simple pool with no weather delays or other

issues popping up. More complex pools can take three to six months. And that's just for the build itself.

Pool planning can drive anyone nuts - how big should it be? What style? What shape? Should it get full sun or should it go partway under a tree, which will create shade but also a leaves-in-the-pool situation? Do you want a spa? What materials should you use? And which company?

This is all part of the fun of building a pool. Heed a few tips from Pool Spa Outdoor.

"Think you might be ready to take the plunge? If you're planning to buy your first backyard swimming pool, you probably need a few tips to get started," said Pool Spa Outdoor. "Learn how to establish a budget, find a pool builder, and always remember to put fun on the list.

Outdoor Kitchens

No one addition to your backyard is hotter right now than adding an outdoor kitchen. But, the planning is critical to making sure you get a kitchen that functions well, looks great, and makes the best use of your space.

"Before you do anything else, spend some time thinking about what you really want and need in an outdoor kitchen," said HGTV. "Ask yourself how you'll actually use the new space and what makes the most sense in terms of your home's architecture and its existing

landscaping."

See HGTV or Houzz for some design ideas or learn a few key tips from Better Homes and Gardens, and make sure before you get started, you ask yourself a few key questions from Red Beacon:

1. Will you be using the kitchen year-round? If so, there is weather-proofing to consider.
2. Where will you locate the kitchen? The closer to the house, "the lower expense for electrical and plumbing work."
3. What do you plan to cook in the outdoor kitchen? Is a barbecue enough or do you need a range, a refrigerator, maybe even a pizza oven?
4. Do you need a sink? The plumbing costs will increase (but so will the convenience).
5. Where do you envision seating? "Decide on the seating area keeping in mind that the seating has to be comfortable and appropriate for outdoor use."

For more planning tips, see Red Beacon. And if you need a new barbecue grill, Lifehacker says the best time to buy is January through March, before the weather starts to heat up, so keep your eyes open for sales.

Your Lawn

Everyone knows spring is the best time to plant flowers. But do you know when the best time to perk up your lawn is?

Many experts say that laying sod is best in "spring and early autumn... because cool

temperatures combined with occasional rain help sod quickly root," said Better Homes and Gardens. But, "you can lay sod anytime during the growing season," if you care for it properly. "If you lay sod in summer, water at least once a day for several weeks."

For DIY sod tips, see Better Homes and Gardens.

If you don't want the expense of sod - it costs "about $400 to cover a 1,000-square-foot backyard (double that installed) - said This Old House, you can seed.

Best results for seeding are often achieved in the fall in cold-weather climates, because "fall's cooler temperatures prevent the seeds from drying out, but there's still enough sun and rain to help them germinate before going into hibernation for the winter, without the competition of crabgrass and other weeds that die off this time of year," said This Old House.

But grass seed can be planted in the spring with good results, said Greenview, if you heed a few tips, mainly: "Do not apply weed control products to the grass. Delay the weed control application until the grass seed has germinated and you have mowed the grass at least three times."

$1 million-plus home sales hit record in metro Detroit

A red-hot auto industry, bullish stock market and steadily recovering home prices ignited the top end of the real estate market last year in suburban Detroit.

The number of home sales in the lofty $1 million-plus category hit a new tri-county high in 2013 as more C-suite executives moved up in property and out-of-staters transferred in for high-paying jobs.

There were 210 new and existing residences that sold for $1 million and above within Oakland, Wayne and Macomb counties, according to data compiled by Farmington Hills-based Realcomp, a multiple listing service. That is a 42% increase from 2012, which itself was a surprise boom for million-dollar homes sales after several molasses-like years during and after the housing collapse.

It was a solid year across all price points, with total sales in the tri-county region rising 26% from the previous year, according to a review of property transfer records by Bloomfield Township-based Advertising that Works, which tracks home sales.

The median home sale price was $116,250, up 29% from 2012 but still about 25% off the metro Detroit region’s price peak in 2005 and early 2006. As a whole, prices in metro Detroit were back to spring and summer 2008 levels.

Why the big rush for $1 million-plus homes? Experts attribute the boom in part to the return of strong profits in the auto industry, which translate to greater confidence and job security among the region’s executives, even those who aren’t directly in the car business.

\Doctors, lawyers, business owners and other top professionals were also feeling buoyant from the improving economy and, in many cases, were lured into buying by the still-low mortgage rates that most economists expect to continue rising this year.

What’s more, many of these high-net-worth individuals were in positions to benefit from the big stock market gains of 2013.

Home Sales Are Highest In Five Years

Just when it seemed that home sales were taking a breather, new data from the National Association of REALTORS® (NAR) says that home sales in 2013 were the highest since 2006, well before the housing meltdown.

For all of 2013, housing sales totaled 5.09 million units, which is 9.1 percent higher than in 2012.

Lawrence Yun, NAR chief economist, explained, “Existing-home sales have risen nearly 20 percent since 2011, with job growth, record low mortgage interest rates and a large pent-up demand driving the market. 

Yun says some momentum was lost toward the end of 2013 from disappointing job growth and limited inventory, but the year ended close to normal given the size of the population.

The national median existing-home price for all of 2013 was $197,100, which is 11.5 percent above the 2012 median of $176,800. That's the strongest gain since 2005 when prices rose 12.4 percent.

One bright spot was the decline of distressed homes in the mix. Foreclosures and short sales were 14 percent of December 2013 sales, down from 24 percent the year before.

Total housing inventory at the end of December fell 9.3 percent to 1.86 million existing homes on the market, a 4.6-month supply at the current sales pace.

Homes took longer to sell in December from November, but less time than in 2012.

The NAR suggests that home buyers and sellers face a few challenges in 2014. Mortgage rates are expected to continue to rise, and lenders and borrowers face new mortgage rules, such as new Qualified Mortgage underwriting standards.

But there's still plenty of pent-up demand, with more young adults moving out of their parents' home and into their own homes. The key is job growth, says the NAR. Only the confidence that stems from job security can enable first time buyers to buy and move-up buyers to purchase their next homes.

Fortunately, a new report by the U.S. Conference of Mayors suggests that nearly all U.S. cities are forecast to see economic growth this year, including some cities that have not really recovered from the Great Recession.

Southeast Michigan home prices increase by double-digits for 10th straight month

Growth for metro Detroit median home sales prices continued in December, rising by 40 percent year-over-year according to Farmington Hills-based Realcomp.

Realcomp, the multiple listings service for southeast Michigan, reported a median selling price of $120,800 for metro Detroit homes in December 2013, compared to $85,750 in the same month of 2012.

Sales in terms of units were flat at 4,077 homes sold in December 2013, compared to 4,069 a year prior.

Here's a closer look at year-over-year home sales by county in December:

Wayne
The median selling price jumped 67 percent to $75,000, while total units sold dropped 12 percent to 1,467 homes.

Oakland
The median selling price grew 21 percent to $168,250, while total units sold rose 9 percent to 1,452 homes.

Macomb
The median selling price rose 28 percent to $111,750, while the number of units sold increased 11 percent to 940 homes.

Livingston
The median selling price increased 13 percent to $180,950, while the total units sold fell 3 percent to 218 homes.

In the Grosse Pointe area, in which Realcomp includes all of the Pointes and Lake Township, the median selling price climbed 23 percent year-over-year to $214,900, while total sales by units grew 21 percent to 57 homes sold in December.

In the Detroit area, which includes the city of Detroit, Hamtramck, Harper Woods and Highland Park, the median selling price rose 30 percent to $13,000. Home sales by units dropped 23 percent to 358 homes.

Homes sold quicker in Metro Detroit in December of this year, spending 28 fewer days on the market at 49 days.

Across Realcomp's total coverage area, which includes southeast Michigan and a small portion of northern Ohio, on-market inventory shrunk 8 percent to 19,044 homes.

November Housing Prices Increase

The Detroit metro area's residential real estate market has been on a strong, nine-month rebound.

According to Farmington Hills-based Realcomp, the Multiple Listing Service for southeast Michigan, the median selling price of metro Detroit homes jumped 41 percent year-over-year in November to $120,250, The median selling price in metro Detroit in November 2012 was $85,100.

Real estate tracking firm Zillow reports that home values were up 23 percent in metro Detroit year-over-year in November. That's according to its Home Value Index, which it calculates by taking the median estimated home value for a given geographic area on a given day, including all residential, single-family addresses.