Wednesday, May 29, 2013

Home Staging Tips For Sellers Pays Off In Spades!

Why Staging your Home is Essential and Profitable to Sellers

The first steps of staging a home, including cleaning, painting,
and de-cluttering. Let's look at the next important steps, including de-personalization,
placement of furniture and accessories to maximize light and space, and setting the mood with scent and sound.













De-personalize.

Don’t take it personally when your stager or real estate agent tells you to pack away everything personal. All those photos, trinkets and treasures you’ve so artfully displayed throughout your home may be meaningful and even stylish, but to potential buyers, they are a reminder that the home has been lived in. Your mission, should you choose to accept it, is to take yourself out of the picture and help the next homeowners imagine themselves living there.

De-personalizing is the hardest part of staging for most people because it means getting rid of things they hold dear. Actually, it doesn’t mean getting rid of them — if you don’t want to sell or donate them, you can simply box them up and rent a storage unit. (We used PODS — they’ll deliver a storage box to you, you fill it up, then they transport it to a climate controlled warehouse and deliver to your new location whenever you say so.)

Pack up and store anything that suggests your family lives there. Paperbacks, knickknacks, extra food in the pantry — go through each room one at a time and take away anything that you wouldn’t find in a model home.

In the kitchen, pack up all unused appliances and gadgets, and put appliances you need (even the toaster) in a cabinet. Some stagers say no more than one appliance is allowed on the counter, and only if it sparkles. Take all magnets off the fridge. Remove all other items off the counter except for a vase of flowers and/or a bowl of fruit.

Ditto for the bathroom — open counter space gives the home a cleaner and more spacious feel. Put cosmetics, hair products, toothpaste and toothbrushes in a drawer after you use them each day.
Pictures personalize your home more than anything else, so, as hard as it is, put those precious memories into storage while your house in on the market.

Don’t forget to depersonalize the front of your home; remove name plaques or other items that personalize the home.
Group and place items to maximize light and space.

Everything you do should be geared toward creating the illusion of light and space. Think bright and airy, and look for opportunities to create vignettes so people envision themselves enjoying the space.

Move couches and chairs away from walls and into small, intimate groupings. If you have large furniture, consider getting rid of at least one piece of it (an overstuffed chair or love seat), and then group remaining items closer together (possibly at a diagonal). Some stagers recommend removing about a third of the furniture in a home to open up space; others suggest that once everything in a room looks perfect, remove one more item.














Remove wall clutter too, if you have it. The size of wall art should play well with the size of the room; too busy, too high, too large or too small can all spoil the look.
Don’t neglect living areas outdoors; buyers will see them as additional space, and it’s one more chance to imagine what it would be like living there. Put up a bright new umbrella and new cushions on your patio furniture to invite buyers outside.
We even set our patio table with colorful place mats and fun plastic place settings, so our buyers could envision themselves kicking back with their friends.

Empty homes are usually hard to sell because most people have a hard time understanding how a space is used or its actual size without furniture for scale. If you’ve moved all of your furniture out, your home sale may depend on having your home professionally staged with furniture and decor brought in. One goal of staging is to help buyers visualize the potential use for a room, which is why most stagers will ask you to move that pool table from your formal dining room.

Arrange furniture so as not to block the natural path through a room. For example, people should see the foot of the bed from the doorway, rather than seeing the side of the bed and having to walk around it. Speaking of the bedroom, stage for romance. Remove the television; most women don’t consider a TV in the bedroom romantic, yet studies show 80% of the time it is women who make the final decision to buy a home. Add pillows and go for luxurious beddings. If you have a mirror or dresser topper, consider removing it to open up the space.



















Keep scale and balance in mind when decorating. When accessorizing, repeat shapes and lines of other items in a room. A few large, bold accessories are better than small ones, which tend to look like clutter. Take a tip from photography and graphic design: You can’t go wrong with triangular arrangements and groups of threes.

Lighting. A good rule of thumb is to let in as much natural light as you can, then add main lights and ambient lighting in every room. Sconces can add additional ambient lighting and draw attention to walls and ceilings, making rooms appear larger. Open all window coverings, have them cleaned, and remove them completely if they are heavy or block too much light. Turn on all lights before a showing, even during the day.
Engage the rest of the senses.

Sound. Set the mood for your home with soft music playing in the main living areas. You don’t want to offend anyone if they don’t share your love of country music, but classical guitar is generally neutral and relaxing enough that it lends to, not detracts from, the ambience.

Smell. Scent is an often overlooked part of staging. The ideal scent in a home is freshly baked bread or cookies, but who wants to throw a batch in the oven every time there is a showing? A lightly scented candle (not overpowering) that smells like freshly baked sugar cookies is a good alternative. (My personal favorite: Gold Canyon’s Sugar Cookie candle. You can Google "Shop Gold Canyon" to order online.) To further freshen your staged home, run a lemon through the disposal, put out fresh flowers on the kitchen table, and place a bowl of fresh fruit on the counter. Pineapple and lemons both smell amazing.

Touch.  Adding or highlighting texture throughout your house can be a great way to create an interesting space where people feel comfortable and want to linger. Thick, luxurious towels in the bathroom evoke a spa feeling, and a rich, touchable comforter with extra pillows can make a bedroom feel like a posh hotel.

Hire out or do it yourself?
Should I hire a professional stager or do it myself? That depends. If you can emotionally distance yourself from your home enough to see it objectively, as a commodity, and are committed to doing everything it takes to make it stand out, and you have an eye for style but more importantly a marketing mind, you might fare well. Many real estate agents will insist that you at least consult a professional staging company, then decide whether to hire them or take on the job yourself.

Benefits to using a professional stager include their knowledge of the market and what level of staging buyers expect to see in your price range; they have vendors on hand to do any suggested repairs or updates (painters, handymen, etc.); and they have access to furniture, potted plants, and other art pieces on hand to immediately fill in spaces where you need it.

Keep in mind that paying to have your home professionally staged will usually pay off in spades. Homes that are well staged usually command 6 to 20 percent higher prices than their unstaged counterparts and sell more quickly. Less time on the market means fewer loan payments for you. Plus, if you can sell quickly and avoid one or more price reductions, professional staging could be a worthwhile investment.

If you are considering listing your home, now is a great time! Give Diane Neslund, Realtor/Designer at Distinctive Showcase Properties a Call at 480-948-6600, she is her to help.   

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Sunday, May 19, 2013

How To Market Your Rental Home In Greater Phoenix And Scottsdale

Institutional investors have dominated the market competing against each other renting their homes.If you own one or several renal properties you must be aware of the changes in the renal market to market your home right or it sits there for months without a tenant.

We manage homes for several institutional investors. A) their homes are rent ready, completely renovated. B) they require less initial deposits C) they rent it up to 20% below the current market rent. D) their standards to lease are a lot easier than most landlords. E) they are very generous when it comes to paying a commission to agents to rent their homes quickly, they pay the first month's rent or at least 75% of the gross rent amount.

Fannie Mae and several other institutional investors go as far as keeping the current tenants in place with very favorable terms and no deposits!

What should you do? Can you afford keeping your house on the market for months paying your mortgage or not having any income? Most insurance companies cancel your insurance if your house sits empty after 30 days and so on.

Here are a few solutions:

YOU WILL BE BETTER OFF TO SELL YOU HOUSE IF YOU CAN NOT AFFORD DOING THE FOLLOWINGS:
A) Make sure your house is rent ready. Today's tenants have too many choices. The fact that a few years back they were desperate and they had to hurry getting out of their home to rent yours is gone. Aside from Paint, Flooring, Appliances,  how does your front and back yard look? Would you live in it? 

B) Landlords use to require an initial security deposit equal to the first months rent plus a cleaning deposit. EX: If the rent was a $1000, SD was $1000 plus a $300 cleaning deposit. In most cases those days are gone. We recommend that initially you ask for less deposits on approved credit. Of course, after reviewing the tenant's application, you can adjust it to what makes more sense. In some cases you can ask up to 1 1/2 times of the rent amount if required.

C) Just because the prices have skyrocketed doesn't mean the rent have accordingly. Price you home right. The formula is rent equals to 7% to 8% of your today's market value. So if you bought your house a few years back for $110,000 and it rented it for $1100 and now it is worth $150,000, rent should be $1150 and not $1500.

D) A lot of tenants are re qualifying to buy homes these days. They are moving out. Who is moving in? the ones that have to wait a couple more years longer or so. So, they still have some credit issues. Some tenants are getting new jobs, some are moving in out of state, thanks to the economy improving in Arizona, However, we see a lot of government assisted tenants entering the market called section 8. It is a hit and miss thing with section 8 tenants but the rent is guaranteed. I would consider renting to them if you want to rent your house quicker. They still have to go through the same screening process and pay the deposits except they either get the whole rent or a good portion of it subsidized by the government.
On the other note, we are seeing a lot of owners that their homes are paid off offering to carry the note back themselves with a reasonable down payment and around 7.5% interest rate, amortized over 30 years, due in 3 to the tenants who can qualify to refinance it in 3 years or so washing their hands off all the expenses related to home maintenance, insurance, hoa fees and taxes, coming ahead on the game.
Consider lease with option to buy. 3 year lease with an option to buy, some of the expenses such as the normal maintenance fees such as landscaping and pool maintenance is passed on to the tenant, you receive a decent upfront deposit and worry less about the turn over and increase your bottom line.
Consider longer term leases at a reduced rent. If the rent is $1200 for 1 year reduce it to $1150 for two and $1100 for 3 year lease.

Is your house pet friendly? Instead of collecting a large pet deposit up front, charge a monthly pet fee and add it to the rent. You increase your bottom line and making it easier to rent. You need to look at your insurance policy to see what breed of pets are excluded. Even in such cases, you maybe able to ask the tenants to get an additional pet insurance up to $100,000 coverage. If they really love their pet, they do.

Lower the rent but ask the tenant to pay for the pool service or the gardening or even the HOA fees in addition to the rent or exclude some of the maintenance issues that are not health and safety related and are allowed by law and ask the tenant to pay for it such as fixing the reverse osmosis, garbage disposal,  routine pest control etc.

E) This is a deal maker folks. Hire a professional leasing agent and pay them all the money to rent it quickly the first time. Sales market is heating up. It takes as much time and effort to lease a home to these fussy tenants as it takes to sell them one with as much or more paperwork. I know our leases are 32 pages long! The difference is they make $600 leasing and $6000 selling. What would you do if you were in their shoes?  Most leasing companies charge $695 to lease your home. Offer the agent an additional $300 to $500 incentive if they rent it within the first 30 days. See how quickly your house is rented!
The companies or agents that settle for less don't now how to market your house for rent so you risk the chances of leaving it abandoned for months and possibly vandalized in the process or keep getting notices and fines from your HOA or the city for grass over growing or trash left out etc.

Interview at least two leasing agents in the area. Tell them before you make a final decision you want them to write a complete marketing plan or a complete description of how they would be marketing your house on MLS or other sites. Once you pick the right agent, review the description, see if they left something out or if you want to add to it or fine tune it and send it to them.

Pictures are worth a thousand of words. Ask the agent to send you 30 marketing pictures. Choose 15 of them and if you do have some good pictures yourself go ahead send them to your agent as well.

Ask your agent as part of the deal a) to send a link to all the marketing they do online, B)  they are to contact you twice a week preferably with a phone call or in an email,  to give you an update. If they don't call you, call them. If they do not answer, put it in the listing agreement that you have the option to cancel your listing if you are not 100% satisfied with their performance within 30 days from putting your house on the market.

DO NOT PUT YOUR HOUSE ON THE MARKET TILL YOU HAVE READ THE DESCRIPTION AND SEEN THE PICTURES. The first 10 days are crucial for renting your house. Otherwise it sits on line and counts days on the market that works against you. The longer you house shows on the market, the less showing, the longer it takes to rent.

The competition is very tight out there for homeowners to rent their homes.  The difference between you getting involved and not is crucial. THEN GET INVOLVED OR GET OUT OF THE GAME.

THE BOTTOM LINE: Treat your tenant the way you want to be treated if you were renting the house. A happy tenant takes care of your property better and stays longer reducing your overhead. They may even end up purchasing your home one day reducing most of the marketing and brokerage fees putting more money in your pocket at the end.

We are a full service Real Estate Company . We offer a broad spectrum of services including Relocations, Vacation Rentals, Move In Ready Furnished Rentals and Turnkey Investment Properties.  

We stage, furnish, prep your home for sale, market, furnish, and also we partner with investors in turnkey homes we remodel, upgrade and sell, or rent for cash flow initially!

You can contact Diane at 480-329-4498 and get  a detailed market analysis for sale or rent of your property and give you an indepth insight of what is going on in the market in your area, and how to maximize your property value!

To Receive Professional Tips & Straight Answers to your questions or request additional information CLICK HERE













Wednesday, May 15, 2013

Phoenix Has Risen from The Ashes...#1 Hottest Housing Market of 2013!


After a long and painful downturn in the housing market, home prices are finally beginning to head north. According to Zillow, a real estate listing website, home values rose 5.1% across the United States between February 2012 and February 2013.



Many local housing markets are performing considerably better than the country as a whole. Home values rose more than 13% in 10 of the 30 largest housing markets for which Zillow has data, and rose more than 20% in five of them. The biggest growth of all took place in Phoenix, where home values rose 24%.

Based on a review of the median home value of the 30 largest housing markets measured by Zillow, 24/7 Wall St. identified the 10 housing markets that have risen the most from the first quarter of 2012 to the first quarter of 2013. Zillow also provided data regarding expected growth from the first quarter of 2013 to the first quarter of 2014, the number of homes sold in February, as well as the change in the number of homes sold from a year earlier. 

Unemployment rates as of February 2013 were taken from the Bureau of Labor Statistics. Data on when home prices peaked and the percentage decline since that time was based on median home value from Fiserv.

Here is the hottest housing markets of 2013:


1. Phoenix, Ariz.

> Change in home value: 24.0%

> Current home value: $165,600
> Bottom in home value: Q3 2011
> Forecast change in home value: 10.6%

No other metropolitan area’s housing market has grown faster than Phoenix, where home values rose 24% over the past year. The growth is expected to continue as well. Between 2013 and 2014, home values are projected to rise an additional 10.6%. The unemployment rate in the Phoenix metro area was just 6.7% in February 2013, down a percentage point from the same month in 2012. Notably, construction jobs were up 8.2% from the previous year, likely an indicator of a more robust housing market.

Diane Neslund, CEO l Owner l Realtor l Designer at Distinctive Showcase Properties Knows The Scottsdale Luxury Real Estate Market.  Her Unique and Innovative Approach Has ReInvented Real Estate.  By Combining The Best of Her Companies Services, Diane Can Offer More Than Most Realtors In Preparing Your Home For Sale, Marketing Your Home To Sell Quicker, Furnishing, Staging, & Design Decor For Top Offers, and Handling Any Cosmetic Upgrades, Along With All Transactions.  Diane Has a Robust Inventory of Fine Homes In All Price Ranges.  Distinctive Showcase Properties Handles Relocations, as Well as Provides Move In Ready Furnished Short & Long Term Rentals In The Scottsdale Area.
Diane Also Offers Select Turnkey Property Investment Opportunities For Partners.

Because of The Powerful Combination of These Services, Our Clients Experience Unparalleled Satisfaction. List, Buy, Sell, Rent, Furnish, and Invest in Your Next Scottsdale, Arizona  Home With DIstinctive Showcase Properties. 

Call Diane at 480-948-6600  Email:  Diane@DistinctiveAz.com
Connect With Her On Linkedin at http://www.linkedin.com/pub/diane-neslund/13/8/602