For Home Sellers

Got brown carpeting?

Posted on by Teresa Boardman

I really hate carpeting. I have an indoor-outdoor type rug in my office and a couple of throw rugs in the kitchen. No carpeting makes house cleaning a breeze. I must use a Swiffer or a damp mop.

If your home has old carpeting in it with hardwood floors underneath, it makes sense to remove the carpeting before you sell. A hardwood floor that is in less-than-perfect condition is better than old carpet.

Hardwood floors increase a home’s resale value. I don’t recommend having hardwood floors installed before the house goes on the market, but if you are looking for a home improvement that you will enjoy for many years, replace the carpet with hardwood floors.

Studies have shown that a significant percentage of buyers are willing to pay more for a home with hardwood flooring. This preference is often attributed to hardwood’s durability, ease of cleaning, and ability to enhance a home’s aesthetic appeal. 

There are even some health benefits. Hardwood floors are better for people with allergies.

cat on wood floor
Harwood floors are pet-friendly too

. . but what does fair housing mean?

Posted on by Teresa Boardman
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Homeowners who are selling their houses this spring have an opportunity to promote fair housing. Here are some things you can do:

  1. Be open to accepting different types of financing, like FHA and VA.
  2. Treat offers that include downpayment assistance the same as you would treat offers where the buyer has cash for a down payment. That cash may be coming from family, which is just another form of assistance.
  3. Do not favor an offer because it is coming from the kind of person you want to sell your house to.  Fair housing means that you don’t get to choose who buys your house based on Race, Religion, Familial status, etc.
  4. Your neighbor does not have a say in who you sell your house to. Be kind to people who wish to purchase your home, and if your neighbors give you a bad time, move out in the dead of night and leave no forwarding address.

If you get an offer and it comes with a letter from the buyers, do not read the letter.  Your agent will be happy to let prospective buyers know that what you want for your home is the best terms possible, not a letter.

Homebuyers should put their best foot forward and let the offer speak for itself. Home sellers appreciate clean, fair offers.

For homeowners, fair housing is all about looking at the buyer’s offer instead of looking at the buyer. It is also about being open to different types of financing.

In Minnesota, there’s a significant racial disparity in homeownership, with white households having a much higher homeownership rate than Black households. While approximately 77% of white households own their homes, only about 29% of Black households do, according to the Minnesota Housing Partnership. This disparity is one of the largest in the nation. Which is why every month should be fair housing month. 

If you are a fair housing nerd, here is some reading: The Color of Law

Fair housing rules and laws in Minnesota, and where to get help if you have been discriminated against.

Fair housing and deed restrictions

Fair Housing and Love Letters

Real estate commissions are negotiable

Posted on by Teresa Boardman

Coins, moneyI shouldn’t be surprised, but so far, I have not noticed any negotiation on commissions paid to a buyer’s agent. Commissions for agents who assist the home buyer used to be listed in the MLS (multiple listing service) for every home for sale.

That all ended last year after the National Association of Realtors lost a lawsuit.  Sellers often want to negotiate for a lower commission, but when a buyer makes an offer and asks the seller to pay a buyer’s agent commission, sellers are paying it with no negotiation.

As a small company, I don’t have a ton of data for this, and real estate brokers are not allowed to discuss how much they charge or are paid amongst themselves. All I can say is that the commissions that are being paid out to buyers’ agents are pretty consistent and appear to be the same as what they were when they were listed in the MLS.

Redfin reported that the average percentage of commission paid to buyer’s agents has gradually fallen since the NAR settlement was announced, although the decrease “is small and the dollar amount paid to buyer’s agents has held steady.”

It could be that because sellers often pay the buyer’s agent’s commission, buyers don’t feel the need to negotiate. I am not sure why sellers negotiate with their agent for a lower commission and then turn around and pay the buyer’s agent with no negotiation.

There is a point to this post, and that is that real estate commissions are always negotiable, and so are any fees charged by your real estate agent. There are many excellent real estate agents in the area looking for work every day, and it is always alright to negotiate and to pay less.

If you are a home seller, your agent should not be advertising the fact that you will pay the buyer’s agent commission. There is a better way.

Cold weather home buyer/seller tips

Posted on by Teresa Boardman

It has been a couple of years since we have had a real Minnesota winter with double-digit below-zero temperatures and windchill in the -20 to -40 degree range so I thought I would post a refresher for cold weather home buyers and sellers.

There aren’t as many people out house hunting on bitterly cold winter days but those out are ready to buy today.

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Here are some winter tips for home sellers:

1.  Leave some lights on so we can open the lock box and unlock the door.

2.  Remove the snow and ice from the walkway.  Clearing the sidewalk makes it less likely that someone seeing your home will fall on their a$$ and sue yours off.

3.  Place a walk-off mat near the front door big enough for four pairs of shoes.  This small act of kindness will keep my feet dry because I won’t end up standing in a puddle made by my clients and it will keep your floor dry and your home cleaner.

4.  If your home is vacant please have it winterized, that means that you have the water turned off.

5.  Light is a good thing, especially in the winter.  You want to make it look warm and inviting.   If you normally live like cave people with every blind drawn and every shade pulled consider making some changes so that your home will sell quicker and you will get more money for it.

7.  If your home is occupied and you have a bunch of burglar alarms and maybe some barbed wire and a guard dog consider easing up on the red alert status.  (this has nothing to do with the weather . . I was on a roll)

Here are some tips for home buyers:

1.  Wear shoes or boots that are easy to slip on and off.

2.  Go to the restroom before you begin house hunting.  Homes that are winterized have no running water.

3.  If you are interested in a home that you saw in the dark please schedule an appointment to see it when it is light out before you make an offer.

4.  Flashlights can be handy when touring houses.

5. Bring a tape measure.

 

Try Senior Linkage Line

Posted on by Teresa Boardman

There are times when we need help. Moving is one of those times. Maybe there is a house to sell and the owner wants to downsize and buy something smaller. There are plenty of real estate professionals who are eager to help but there are limits to what a real estate agent should be doing. Even though they sometimes act like it real estate agents are not social workers.

Real estate agents should not be giving legal advice or tax advice. A real estate agent should never discourage a client from having an attorney review contracts. Agents are not education experts either. Always verify the school district if that is important in selecting a home.

It is never a good idea to contact a real estate agent and tell them your life story and include comments about your finances. Give out little information when contacting a real estate agent you do not know. Ask a lot of questions.

Real estate agents and Realtors are salespeople first and foremost. Sometimes it helps to talk to a third-party expert, so I recommend calling Senior Linkage Line if you are over 65. They can also recommend resources for older Minnesotans who are aging in place.

The service is free but unlike some of the other “free” services Senior Linkage Line is provided by the State of Minnesota. It isn’t paid for by a third party for making referrals to housing or service providers. House

Don’t sit on that offer

Posted on by Teresa Boardman

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Turrets
I love turrets

If your home is for sale and you receive an offer, it’s best to accept, reject or counter it promptly. Even if there’s no specific deadline in the offer, homebuyers can and do cancel. If there is a reason for sitting on an offer then let the other party know what is going on. Let them know when they can expect a response.

Remember, an offer in hand is worth more than potential future offers. If the offer doesn’t meet your expectations, don’t hesitate to make a counteroffer. Rejecting an offer works better than trying to wait it out.

Buyers should respond promptly to counteroffers. Don’t play a game of “we had to wait, now they can wait”. That just causes hard feelings and can make the home-buying process harder.

Both home buyers and sellers sometimes believe there is a special way to “game” the process of buying or selling real estate. After working with hundreds of clients, I have found that the best way to handle any transaction is to keep it simple, have open communication, and to always be honest.