10 Step Plan to Get Top Dollar For Your Home In 2019

Zac Bacon • September 23, 2019

Is 2019 the most profitable time to sell your home?

 

If you have thought about selling your home and asked if now is the time then you may be right. Why? Recent research shows 20% of fiscal economists say we are due for a recession. (The economic cycle proves we can expect a recession once every 10 years)

 

While some claim the recession may come at the end of 2019, many believe it will happen at the beginning of 2020…. Which means this year may be prime real estate selling season and the final push to get top dollar for your home before a possible market shift. A market shift does not mean selling your home will be impossible…. it just means we will shift toward a balanced or buyer’s market. In a buyer’s market, commanding top dollar for your home is much more difficult. 

 

But have no fear! If you have been thinking about putting your home on the market this year, but you are not sure where to start, here’s a 10-step plan to help you get top dollar for your home in 2019.

Step 1 – Delve into your financial goals

Understanding your long-term financial goals and buying real estate are crucial items to consider before you think about listing your home. Where do you want to be five, ten even 15 years from now? And how can you set yourself up for financial success today. For example, if you believe you want to live in a specific neighborhood because of the school district, what are the additional costs associated with being in that neighborhood (like HOA’s or Mello Roos)? Are you saving enough for your children’s college? Would you rather pay less for a mortgage so you can travel? Do you have enough income for your retirement OR do you need to downgrade because it will be the only way you will have enough stocked away for retirement?…

 

This is the first step and the most exciting step. You can start by spending just 15 minutes with your significant other or a key decision-maker. Make sure it’s someone you trust to review your financial decisions. When you have a deep understanding of your financial goals, you will know if you are considering paying too much for a home and if your current home no longer meets your desired lifestyle.

Step 2 – Always go to an expert real estate agent in your area

An expert agent in your area is the second step to help you navigate the rest of your ten step plan to sell your home for top dollar.

If you are considering handling one of the biggest financial sales of your life by yourself, I’d strongly recommend you consider the pitfalls! It’s smart to have an expert real estate agent in your corner to help you navigate the comprehensive process. An expert real estate agent in your local area with years of experience understands the market better than the average agent. They care about the success of your transaction and your financial health.

 

Once you have selected the agent you’d like to work with, make sure to talk with your agent about your financial goals for the future. A professional real estate agent desires to make sure you are not only happy with your home sale and your future home purchase, but that the steps you have taken align with where you want to be in the future.

Step 3 – Get an in-depth report on what your home will sell for today

You are missing the most up-to-date information if you have only taken a look at Zillow to determine your home’s value. Once you have reviewed your financial goals with your agent and showed your agent your property, your agent should deliver a comprehensive report explaining what your home can sell for as-is in today’s market. This goes deeper than just a comparative market analysis or an estimate off of Zillow. Why? Because an agent who is an expert in your area will understand one thing you will not find by googling online…. The home buyer’s psychology in your local market.

 

It’s not just about the numbers when selling a home…it is also about the agent’s network. Studies show a vast number of home buyers still use a real estate agent to help them with their home purchase. A top agent who excels in your local market will regularly show buyers properties in your area AND have created a network of agents they can call at a moments notice to sell them on taking their buyer’s to see your property.

Step 4 – Discover critical repairs to get top dollar

I understand you might not want to make any repairs to your home, but it comes back to two important factors…. your financial goals and the return on investment. If you desire to create a certain amount of cash out of the sale of your home, then your agent may suggest making any necessary repairs to help you reach that goal. Again, they will know your local market better than anyone else. But make sure to double check with your agent that you are making the most cost-effective repairs that will increase your return from the sale.

Step 5 – Have a smart pricing strategy

It’s not enough to slap a number on your home and pray it will sell. A good agent is going to help you strategize your price point so that it attracts the most amount of buyers. A few points to consider are your personal timeline, how many other similar listings will you be competing with, and how does the condition of your home measure up with the other available properties. If fair market value for your home is approximately $605,000, it could make more sense to list at $600,000 so that you dont miss all the buyers that are only looking up to $600,000. That’s not all you should consider… also think about the third party sites like Zillow and how the property’s positioned for a local buyer. Here’s what I mean…when Buyers search for a property online and look at the estimate on websites like Zillow, if you have strategized with your pricing they will see your home as deal which can increase desire for your home

Step 6 – Develop a trouble-free exit plan

A trouble free exit plan is another discussion you will have with your local agent. We know there may be a market shift on the horizon, although it’s difficult to predict when or how drastic. That means it makes sense to have more than one exit strategy in place if staying in your property creates a financial burden. if you know regardless you have to move or you need to make an adjustment in your finances and selling your home is crucial then you may need to have more than one exit strategy.

 

A top local real estate agent will help you price your home to sell. But, if you find yourself in a predicament where your home is not selling as rapidly as you would like, lots of homeowners choose to rent their property as their exit strategy. But, maybe having a long-term rental is not the best option for you. Maybe doing a rent to own is your best option or turning your home into an Airbnb. No matter what you decide, there are additional laws associated with these exit strategies so you must make sure you’re not setting yourself up for financial trouble or a large tax bill at the end of the year. It all comes back to your financial goals. Noticing a pattern here?

Step 7 – Create interest by adding energy efficient upgrades

Many new homeowners desire smart technology in their home. Smart technology is on the rise and we’re even starting to see smart technology in apartments now! As utility costs continue to rise, homeowners and buyers are looking for more ways to save money. However, spending thousands of dollars on certain upgrades may not return an equal increase in sales price. Work with local professionals to determine what upgrades would give the best return when prepping for an upcoming sale.

Step 8 – Outshine the competition by staging Your Property to Sell

You may have made the upgrades and priced your property to sell, but now it’s time to allure home buyers by staging your home. Staging your home is still a vital component to helping homeowners like you get top dollar. No matter how beautiful your home is many buyers just do not have the capability to picture what it will be like living in the home. That is why staging is so important. Ask your agent for a referral for a good staging company with a proven track record of creating a high yield for the sale. Or if you want to be economical, ask your agent for staging tips using your current furniture.

Step 9 – Allure home buyers through eye-catching property photos and listing descriptions

You may not realize it, but when you have beautiful images paired with persuasive property descriptions your listing is lethal. We’ve all seen the property with dark photos and a description that says “porch and backyard’…those properties in no way entice anyone to want to hop in the car and go see the property immediately!

Your listing should paint a picture of what it’s like living in the home..and you accomplish this with eye-catching photos and captivating words that make the home buyer imagine what it would be like to live there.

 

For example consider:

Property has a Porch and backyard 

Vs

After a hard day at work, you can Soak up the sunset while relaxing on your cherry wood porch. 

I think you I think you get the picture!

Step 10 – Make a straightforward move into your next home

Whether this step is higher up on your list depends on your financial goals and the state of the market. The agent you’re working with will help make it a smooth transition from home sale to your next purchase. The process may include helping you hire movers, meet with a preferred mortgage lender Etc. No matter what you decide, your agent will help you know the ins-and-outs of your local market to help you make the best decision.

 

Selling your home can be complicated if you don’t have a plan to guide you through the process. So if you found this information helpful, bookmark this post so you can refer to it often.

And if you know you would like help navigating this process please feel free to contact us by sending an email. We would love to help you any way we can.

Home Sellers: Does staging really work??

By Zac Bacon • April 11, 2024
What are the benefits of staging? I'm glad you asked! 1. It helps buyers envision the potential of a room - Seeing it complete with furniture allows them to focus more on the house and the flow, not spending time trying to figure out where furniture would go. 2. Sellers get more $$$ - Recent studies revealed that 81% of Buyer's agents stated that Buyers reacted more favorably to a staged home. Buyers also ranked rooms in which they found staging most valuable with the Living room first, primary bedroom second, and the kitchen third. Lastly, 20% of Sellers agents stated that staging increased the price offered by between 1% to 5%. 3. Professional staging improves marketing and presentation - Photos used in print and media show better, and are more inviting potential buyers. Photos appear more complete and more inviting as opposed to photos of empty spaces. Online listings draw potential buyers in to take more time viewing the rooms and photos, and have a better change of resulting in a showing. 4. Professional staging shows potential in tough spaces - If a buyer doesn't see the flow or potential of a space, they may choose to pass on a home. Awkward rooms and spaces can be a noticeable turn off to Buyers. Staging shows that there is a solution to any space! There's a reason that new home builders always stage their model homes! It works. Subscribe to our channel for more information about the area, Seller/Buyer tips, and to browse our active listings!

How to Successfully Sell Your Home to Buy Another One - Move up Buyers!

By Zac Bacon • January 19, 2024
Selling your existing home can unlock vital equity for your dream home purchase, but timing can be challenging. This video explores the strategies and intricacies of contingent sales, allowing you to seamlessly sell-and-buy simultaneously. Learn how to navigate this powerful tool and make your move with confidence. Here are the main points to know! 1. Make sure your current homes is sale/marketing ready 2. Are you a Level 1, 2 or 3 Contingency? 3. Make sure you have enough time to move smoothly 4. Hire an agent with Contingency experience, and a strong reputation in the local market Subscribe to our channel for more information about the area, Seller/Buyer tips, and to browse our active listings!

The Progression of the Goofy Christmas Card

By Zac Bacon • November 30, 2023
2012

5 Tips to Know About Real Estate

By Zac Bacon • November 29, 2023
Sellers and Buyers ask me questions all the time about how real estate transactions work. Here are 5 things that you should be aware of if you're considering a move in the current market. 1. Information and home value sites are not always accurate! They're truly marketing platforms at their core; designed to sell the site traffic in one way or another. Many sites create more "sensational" content to get clicks, so be careful about the information you use to make financial decisions. 2. Both Sellers and Buyers have their own closing costs. Many clients are surprised to see that both sides have their own individual cost/fees. In the current market, it’s traditional for each party to pay their own costs. However, that can change depending whether it's a Buyer/Seller market. 3. Buyers don't have to put 20% down to purchase. There are loan programs with as little as 3% down. Some even allow Zero down, but keep in mind that sometimes the true cost of those low-down loan programs can be very expensive. 4. Traditionally sellers pay commissions for both sides of a home sale. Many buyers have asked me how the commission is paid. In real estate, everything is negotiable, but traditionally the Seller pays the commissions for both the Seller's Agent and the Buyer's agent. 5. List price is a starting point. The initial listing price doesn’t always indicated actual market value! Some seller choose to list their property higher, or lower, than the current market values. That can impact how fast a home sells, and how many offers it may have. Subscribe to our channel for more information about the area, Seller/Buyer tips, and to browse our active listings!

5 Things to Know About Short Sales

By Zac Bacon • November 14, 2023
While you may not have heard the term recently, there's a possibility that this type of real estate sale may be slightly more popular over the next couple years. This information is related to short sales in the Sacramento area, as the legal process may be different in other states/areas. I don’t expect there will be nearly as many as the 2007-2011 real estate meltdown, but some home sellers in the Sacramento area may have no other option. As usual, this is general information and not intended to be legal or tax advice. If you’re considering a short sale, you may also want to talk with your CPA and/or attorney once you have more detail from your real estate professional. Let’s dive into it! 1. What is a short sale? When a homeowner has a financial hardship of some kind and needs to sell a home, but owes more than the value of the home, it is referred to as a Short Sale. The reason behind this is because the lending institution that holds the loan on the house agrees to take less than they’re owed when the sale closes. In effect, the lender is being “shorted” on the amount they’re owed. For example, a home owner loses their job and can’t afford to keep the home, so they decide to sell. They owe $700,000, but the home will only sell for $650,000. In this case the bank may agree to receive only $611,000 instead of the $700,000 they are owed ($50,000 loss + $39,000 in sales costs/fees) 2. Who qualifies for a short sale? While there is no “standard” answer to this, there are some general guidelines. Lenders will want to review a full financial package from the homeowners. They will want to verify that the financial situation has changed, and that there is truly a permanent hardship situation. This can be job loss, death, divorce, or any other life change that has a detrimental impact on the home owner’s financial situation. In some situations the lender/bank may offer to re-negotiate the terms of the loan to help the home owner get back to financial stability. In some cases the lender may decline the short sale, if they don’t feel home owner hasn’t shown a valid hardship. 3. How long does a short sale take? This can also vary greatly. I’ve personally seen short sale approval in as early as 30 days, or as long as 18 months. This depends on the size of the bank/lending institution, their familiarity with Short Sales, owner response times, or their work load. Sometimes the short sale package gets reset, or expires, and the process has to start over from the beginning. Other blogs on the site outline how to get a short sale approved faster! 4. What are the benefits of a short sale? Depending on the situation, a Short Sale may be a better option than a foreclosure or deed in lieu. The waiting period before someone can apply for a new loan is often shorter than with a foreclosure. Additionally, a deed in lieu or a foreclosure can cause a larger drop to credit scores. In many cases, a short sale can be completed in a shorter time frame than foreclosure proceedings. This can mean that there will be fewer non-payments showing up on a credit report. A deed in lieu can fall somewhere in the middle and also has it’s pros/cons. (Those are covered in other posts) 5. What is the liability of a short sale? Liability can vary based on each situation. In some cases the lender can require repayment of a small loan amount in order to approve the short sale. Sometimes this is a small percentage of the total amount. Additionally, the home Seller may have tax liability for the amount of the loan that was forgiven and the IRS can consider it “income” in certain situations. This can vary based on a few details. Is the home a primary residence or an investment property? Has the original loan be refinanced and cash taken out of the property? If you’d like a confidential review of your home for a potential short sale, contact me directly. I understand discretion in these situations is a primary concern. Having completed many short sales over the years, I understand how challenging and emotional they can be. My goal is to make sure you have the best chance to sell your home and walk away with as little financial damage as possible! Subscribe to our channel for more information about the area, Seller/Buyer tips, and to browse our active listings!

What you need to know about buying solar before April 2023!

By Zac Bacon • February 26, 2023
The topic of solar has been front and center recently due to the continued increase in utility costs. Homeowners are interested in saving money over the long run, but sometimes it can be a challenge to know if you’re getting the right value! Is it better to buy solar outright, get a loan, or take a lease? There are pros and cons to each, but consulting with a trustworthy professional will help you determine the best solution for your specific needs. Here are 3 things you NEED to be aware of if you’ve thought about solar. The clock is ticking! If you’re not familiar with the term Net Energy Metering (NEM), you should be. NEM 3.0 goes into effect on April 14, 2023!! This will cut the consumer credit for excess power by 75%! This means consumers will need to purchase a much larger solar system in order to break even on a yearly basis. You must be aware of this impending change if you’ve considered solar! Net Energy Metering relates to the way that local electricity providers bill their customers for usage. Years ago, customers were placed on NEM 1.0, and currently new solar customers are placed on NEM 2.0. As an example, imagine that a solar system collects $10 worth of electricity during the day, but no one is home to use it. That energy gets put back into the power grid during the day. During the evening and night time the panels are not producing power, but homeowners are home watching TV, doing laundry, charging devices, and using lights. Let’s assume that a home then uses $10 worth of electricity during the evening. That one day would net out to a $0 cost. Over the course of the year some days produce more, and some produce less. The goal is to end up at a “net zero” when determining how many panels to install on a home. That means that when the energy provider does a “true up” at the end of the year, you have as close to a $0 bill as possible. Under NEM 3.0 a homeowner might only expect to get a credit for $3.50 in the same example. Meaning they would need to purchase 4 times the number of panels to break even at the end of the year! That’s why its so important to act quickly if you’ve seriously considered solar. The push for energy storage. Another way to work around the upcoming changes would be to purchase a battery storage. This would allow a solar system to charge up the battery, or batteries, during the day, and then use that free energy during the evening and avoid drawing expensive power from the electric grid. This is a great option, but the cost for battery packs is still very expensive. Purchasing fewer solar panels and a battery pack will be similar to the cost of a larger solar panel system under NEM 3.0. There are still some energy tax rebates available. Some up to 30%! This is a great opportunity to take advantage of before these incentives start to wind down. Additionally, there is an opportunity to add a battery pack in the future and still utilize NEM 2.0. What are the options?? Currently there are multiple options to purchase a solar system. For this example, let’s assume the purchase of a 22 panel solar system that could cost around $30,000, and produce approximately 5.5-6.0 kW of solar. This is roughly enough to cover the average utility bill for a 2,000 sqft home. Since the cost of electricity is expected to go up, locking in your rate/production for the next 10-25 years is a positive no matter which option is chosen to obtain solar. Two of the most important questions are how long someone intends to own the home, and what the average monthly electric costs are. Many homeowners choose to pay for a solar system in full at the time of purchase. If the average electric bill is $300/mo (higher in summer, lower in winter) then the re-capture rate would be 8.3 years in order to start saving money. So if you plan to move in 8 years, that might not make much sense. However, if your average bill is $500/mo, you start saving money after year 5. That could be a better option depending on the timeline to sell the property. Another option is to lease the solar system. Much like leasing a car, you pay a solar company monthly for the use of the solar panels. There are pros and cons to this approach. Often homeowners have little or no money out of pocket which is very enticing. They pay a low monthly payment (probably close to $200/mo in this case) so the savings is almost immediate. However, payments usually last for anywhere between 15 and 25 years depending on the company and the plan. The other consideration is that if the home is sold, a new buyer will have to qualify to take over the payments on the lease. Lastly, the homeowner doesn't usually get the advantage of the tax credit since they didn't actually “purchase” the solar system. The third common option is to take out an energy efficiency loan to purchase the solar system. This payment may be higher, but at the end of the term, the panels and the system are owned outright. Additionally, the home owner would be able to apply for any tax credits that are available. In summary, there is an option that could work for almost any homeowner, but it’s advisable to act before April 2023!! Talk with a qualified professional that has your best interest in mind, and can explain each option thoroughly to empower you to make the best decision. Our mission here at Quantum Real Estate is to bring maximum value to our clients. Whether that is during the course of a sale or after! In order to add more value for our amazing customers, we’ve partnered with Apricot Solar! If you want to take advantage of this opportunity before NEM 3.0 impacts the industry, just call me to schedule your consultation, and text 916.677.9813 or email zac@quantumcalifornia.com a copy of your electric bill! It’s that easy, and there is no obligation.

Case Study: The Home on Brewery Ln

By Zac Bacon • September 25, 2022
Most often, selling a home is an emotional process, whether you’re leaving behind good memories or hoping for a fresh start. It’s another part of a real estate agent’s job. We’re there to acknowledge and support your emotional needs, while asking you to trust us to take the best possible care of your investment. That’s the story of the home on Brewery Ln in Auburn, California. Deal History Agent Elizabeth Turner first met this home seller years ago and they quickly became best friends. The seller inherited this house and lived there for several years making it her own. Like many Californians though, she was looking to move out of state. So when it came time to sell her home, she went straight to Turner to help her sale her home and move on. Deal Challenge With every new client, the Quantum Team takes a personalized approach. We aim to empower our clients by providing detailed information, data from the local market, and recommended next steps. In this case, Turner and Zac Bacon performed an extensive consultation with the seller and identified key areas where she could make minor property improvements with minimal costs. These repairs would greatly help how the property showed to potential buyers. Like many sellers, they want the highest price for their home, even if it’s overpriced for the neighborhood. However, Turner had a different strategy. She wanted to price it competitively to generate a bidding war. She asked the seller to trust her and her knowledge of the local market. Deal Success Turner was right to trust her instincts! After only six days on the market, they received six offers above-asking! They ended up closing for $30,000 over the asking price, higher than the seller’s original desired number! The seller was able to move out of state happily with extra funds from the sale in her pocket. To our seller, we wish you the best and thank you for trusting us with your home.

Buying a House With Bad Credit

By Zac Bacon • May 19, 2022
Buying a house is a big decision, and it can be challenging when your credit score is low. Research what loan options are available to you in your area, and try talking with a few different lenders to get all your questions answered.

How to Stay Sane While Buying a House

By Zac Bacon • April 7, 2022
If you’re in the market to buy a house, it can be an especially stressful time while you work to find the right house and compete with other buyers. The process can take quite a toll on your mental health, so it’s important to take some steps to minimize the stress as much as possible.

Should You Buy a Fixer Upper?

By Zac Bacon • March 10, 2022
Buying the right house is a big decision, and there’s even more to consider when trying to decide if you should buy a fixer upper. Fixer uppers can take a lot of money and effort to get them back in good shape, but for many people, the work is worth it in the end. For others, it may make the most sense to skip a house that needs a lot of work, and opt for a move-in ready home instead. So how do you decide if a fixer upper is right for you? Let’s look at some of the reasons why you should buy a fixer upper, and then we’ll look at a few reasons why a fixer upper may not be for you. Reasons to Buy a Fixer Upper To Save Money One of the biggest reasons people are drawn to fixer uppers are their lower prices. Buying a fixer upper can save you tons of money versus buying a new home, especially if you are able to do a lot of the renovations yourself. Do keep in mind the costs it will take to fix up the house once you’ve bought it. This way you can get a more accurate picture of how much you’ll spend on the home total, which will help you make your decision. HomeAdvisor places the typical range to remodel or renovate a house at roughly $18,000 to $77,000. This of course will vary depending on the amount and size of projects the house needs. You could be looking at at least double that amount if the house needs extensive work. The Location Another reason to consider buying a fixer upper is if you absolutely love the location. A lot can be changed in a house through upgrades or renovations, but the location is obviously something you can never change. Buying a fixer upper may be worth it to you if it’s in your dream location, has a stunning view, etc. The Character/Style If you love the character that comes with older homes, buying a fixer upper could be a great option for you. There are features you just don’t see in modern homes like you do in those built many years ago. By buying an older house that needs some work, you can decide what features you want to restore and let shine again, and which ones you want to make completely new. To Make it Your Own When you buy a fixer upper, there will be many renovation decisions you get to make. You may even take the house down to its bare bones and rebuild it exactly the way you like. You get to choose what to fix up and how you want it to look, which is a great benefit to buying a fixer upper. Less Competition Buying a fixer upper means you’ll have less competition from other home shoppers. Most people are looking for a move-in ready home, so if you decide to buy a fixer upper you may not have to go into a bidding war with other buyers. You may also have an easier time negotiating a good deal with the seller if they don’t have as many offers to choose from. Reasons a Fixer Upper May Not Be for You
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