Yes we sell houses during the holidays

pink flowers
Poinsettias

I answer this question several times each holiday season. Should I decorate my home for the holidays if it is on the market? My answer is always the same. That depends.

I don’t have a problem with holiday decorations but the same rules apply to them that apply to any kind of decorations in homes that are for sale. The decorations should not detract from the home or distract people who are viewing it. Less is generally more and it is all pretty subjective. We don’t have any data on whether homes with Christmas trees sell for more or less than homes without.

Some people decorate every square inch of their home for the holidays and display their beanie babies, snow babies, and Santa Bears. It’s not a good idea when your home is on the market.

Skipping the holiday decorations altogether is alright too. It is better to have no decorations than too many decorations. Don’t worry about offending anyone.

The home should be photographed without any holiday decorations if at all possible.

There you have it my typical “it depends on” non-answer type answer to the holiday decoration question. Happy Holidays, and yes every year homes are sold between Thanksgiving and the new year. Home buyers who are out looking during the holidays are motivated, qualified buyers who are ready to buy.

It isn’t over until it is over

House
House

Nearly 60,000 home purchase agreements were canceled in August, which is equal to 15.7% of homes that went under contract that month.

According to new data from Redfin, August’s percentage of canceled deals is up from 14.3% one year ago, and it is also the highest percentage since October 2022.

These cancellations are likely due to the fact that mortgage interest rates rose to more than 7%.

Yet, I think it is important for homeowners to understand that there is always the chance that a home buyer will back out due to a job loss or an accident or yes even cold feet.

We do our best to weed out the offers that have the most red flags but things happen that are beyond our control, or beyond anyone’s control. There were a few home purchases that were canceled in the early days of the pandemic as some homebuyers were laid off.

The home is sold after the closing and not before.

There is staging and there is staging

chairI believe that houses should be staged before they go on the market. I am finding that “staging” doesn’t mean the same thing to everyone. To me, it starts with cleaning decluttering, and, removing excess stuff as needed.

It means taking the magnets off the front of the fridge and I really encourage people to pack up the Hummel collection and the snow babies too. Sometimes rooms can be staged by rearranging the furniture, removing a piece or two, and adding fresh flowers.

I like to add green plants too but it is important to not overdo it. Plants take up space and they can make the home look cluttered.

Some houses need fresh paint. Choose neutral colors and keep it light. Do not paint every room’s walls and ceiling the same color. There isn’t any one color that everyone likes which is why neutrals work the best.

I often end up recommending that throw rugs be removed. It really depends on how many rugs and where they are. The whole idea is to de-personalize the home a bit so that buyers can imagine it as their own.

Loading a house up with rented furniture usually isn’t necessary but if the homeowners want to go that route I ask them to pay the rental fees.

All too often I see “staged” homes that have too much in them. It is as if every square inch of the place needs to look like it has a special purpose. I have seen some bad staging over the years.

Sometimes less is more as it allows the buyers to imagine the house with their own furnishings.

Mortgage applications hit a 27 year low

coinsMortgage interest rates are over 7%. Sure we have seen rates higher but home prices have also hit an all-time high.

“Mortgage applications declined to the lowest level since December 1996, despite a drop in mortgage rates. Both purchase and refinance applications fell, with the purchase index hitting a 28-year low, as prospective buyers remain on the sidelines due to low housing inventory and elevated mortgage rates,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The 30-year fixed mortgage rate decreased to 7.21 percent last week, but rates remained more than a full percentage point higher than a year ago, despite mixed data on the health of the economy and signs of a cooling job market. The refinance index dropped to its lowest level since January 2023, driven by a 6 percent decline in conventional refinances.”
The refinance share of mortgage activity decreased to 30.0 percent of total applications from 30.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.7 percent of total applications.
The FHA share of total applications increased to 13.7 percent from 13.2 percent the week prior. The VA share of total applications decreased to 11.3 percent from 11.6 percent the week prior. The USDA share of total applications increased to 0.6 percent from 0.4 percent the week prior. [Mortgage Bankers Association]
Locally we are not seeing a slowdown in home purchases but homeowners are less likely to want to sell.

If you live in a house in St. Paul assume the paint is lead based

I tell my clients to assume the paint in any old house in St. Paul is lead-based. Most of the houses were built during the time when lead-based paint was being used.  It was still being used in the late 70s.  Lead-based paint goes way back to colonial times in America and was most used in the mid-1920s. It is most often found on window trim and woodwork.

It can be found on old boilers and on those wonderful built-ins found in craftsman-style homes.  Most contractors test the paint for lead before replacing or repairing doors or windows. To learn more about lead-based paint and how it is especially harmful to children.

Lead-based paint that is covered or that isn’t chipping or peeling may not be hazardous.  When buying a house buyers have the option of having a lead-based paint inspection so that they know in advance if they will have to do any remediation.

Older houses and lead based paint
lead-based paint in older houses

Does it snow in August?

It happens every year. I look in the MLS to see what is new on the market and I find a picture of a house surrounded by snow. I suppose snow is a good look but it may also look like the house has been on the market for months rather than for a few hours.

A better way to market a home for sale and show off how wonderful it looks in the snow is to provide a recent picture of the house, which is how it looks in August. Include a picture of the house when there is snow on the ground but do not make it the first photograph the home buyers sees.

Homeowners who are planning to sell while there is still snow on the ground should take some pictures now to be included in the marketing. During the winter it is most appropriate to put the snowy picture first so people do not assume the house has been on the market for many months.

If the seasons change while a house is on the market I like t update exterior photos as the weather changes. Houses are rarely on the market for more than one season but it can happen. Right now the average days on the market is at around 20 for houses in St. Paul.

Happy August!