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Premiere Property Group

Premiere Property Group

(503) 670-9000
info@premierepropertygroup.com

About Selling

Improvements That Pay

If you’re thinking about remodeling your kitchen or finishing your basement, you probably want to get your investment back when you sell your home. But when it comes to payback value of home improvements, some are definitely more profitable than others. There are a number of factors that go into determining how well a project will pay back. Payback value depends a lot on the current market conditions in your neighborhood. If the market is hot and homes are selling fast, you can expect a higher payback value than you would get in a slow market.

The type of project you do and how it fits in with other homes in the area can have a big influence on payback too. If you put your money into the wrong type of improvement, you won’t get your money back. But if you're smart about what you do, you can add value to your home which will make marketing it in the future even easier. The payback will be better on improvements that are in demand and conform to your neighborhood’s standards. Adding a second bathroom in a neighborhood where most homes have two bathrooms will give a high return on investment. Building a large addition that makes your home twice as big as the other homes on the block probably won’t pay back very well. Likewise, the popularity of a project will factor into how much it pays back. An improvement heavily customized to your wants and needs won’t pay back as well as something more common to other homes in the neighborhood and desirable to the masses.

Another factor to consider is the cost of the improvements. If you can do the work yourself, you can save significantly on the cost of the project and greatly improve the chances of getting a good return on the investment.

The list below is compiled from several published surveys and shows typical payback for some popular remodeling projects:

  • Kitchen remodeling – 90%
  • Add a bathroom – 90%
  • Bathroom remodeling – 80%
  • Install central heating – 90%
  • Install central air – 75%
  • Add a deck – 70%
  • Replace windows – 70%
  • Add a room – 55%
  • Build a pool – 45%
  • Finish a basement – 40%

If you are considering selling your home in the next 24 months, contact us to discuss your improvements and whether they make sense for your needs and how they will impact the marketing of your home.

Pricing Your Home

Everyone selling a home has different goals that need to be factored in when calculating the selling price. Market conditions and comparables sales will play a role in setting the sales price of your house. We will factor in how quickly houses are selling in your area, current interest rates (which impact the buyers looking at your home), the strength and desirability of the local school system, and finally whether it is a buyer's or seller's market. We'll then recommend a price at which to list your home which takes into account your goals as well as the local market.

Please provide us with some brief information in the fields below or click on live chat. We will contact you at a time convenient for you to view your home and prepare a Comparative Market Analysis. You can also click the link below to receive an instant home value estimate.

Getting The Highest Price

Effective marketing is the key to selling your home quickly and getting the highest price. Comprehensive, innovative and effective marketing of our listings by every available medium is how we've become Portland's leading real estate firm. It's our job to give you the best chance at getting as many qualified offers as possible, allowing you to extract the highest price the market will bear.

One of the most important elements of marketing your home effectively is setting the right price. Set the price too high, and your home won't even get shown. This, of course, will result in no offers. Then, by the time you do finally reduce your price, your home will already have been on the market for some time and have become what is known as a "stale listing". This means that most prospective buyers who tour your home will have an underlying nagging concern that something is wrong with it or why else would it have stayed on the market for this long.

Set your price too low and you cheat yourself by not getting your home's full, fair value. As an expert in the Portland real estate market, we analyze community data and set area home prices every single day. We will work closely with you to ensure that everything is done to get the highest price possible, in the time frame you need.

The condition and appearance of your home are also critical factors in getting the best price for your home. We will personally walk through your home with you and advise you of what you can do to properly stage your home most effectively. Some areas are much more important and more likely to pay off than others! Often, the buyer is motivated by emotional responses as much or more as they are by financial issues. There are usually things we can point out to you that are easy and inexpensive, yet go a long way toward triggering those "buy" emotions.

As your real estate partner, we will do all things necessary on your behalf throughout the entire process to ensure that your best interests are protected.

What's My Home Worth?

One of the first steps in selling your home is establishing a competitive listing price as well as analyzing the current market trends, comparable sales and the unique characteristics of your property.

We will prepare a Comparative Market Analysis or CMA, which is a detailed report to help you determine fair market value for your property. The analysis will contain a summary of the homes currently for sale as well as the recent real estate transactions in your area for properties that are similar to yours. While none of the properties will be exactly like yours, they will provide a good basis by which to compare your home with other properties in the neighborhood.

Please provide us with some brief information in the fields below or click on live chat. We will contact you at a time convenient for you to view your home and prepare a Comparative Market Analysis. You can also click the link below to receive an instant home value estimate.

Reasons Homes Don't Sell

If you have had your home on the market for several months and haven’t seen much activity or any offers, chances are that one or more of the reasons below are to blame.

Your price is too high

No doubt about it, the most common reason for a home not selling is that the asking price has been set too high. The reasons for setting your price too high to begin with are many. Regardless of the reason though, if you’ve priced your home too high, you’ve set yourself up for a number of obstacles to selling your home. Even if you do get an offer for the overly high asking price, the deal may fall apart before closing because the buyer may have problems financing at too high a price when the appraisal report is sent back to their lender. Look at other homes for sale, ones as similar and as close to yours as possible. If they are going for less than you are asking, you may be priced too high. The fact is, your home is competing against those other homes, and what buyers are willing to pay is what will determine final sales price.

The condition of your home

Your home has to compete against other similar homes on the market, as well as competing against shiny brand new homes. The more you can do to make your home look appealing to a buyer, the better your chances for a quick sale. Look at your home with a critical eye – put yourself in the buyers position. A buyer doesn’t want to have to do anything except move in. Your best “bang for the buck” in improving the condition of your home are paint and flooring. Make sure that all of the paint is in great condition, both inside and out. Repainting doesn’t cost too much, and will usually make the biggest impact on buyers. Make sure all of the flooring looks good too. You may want to consider putting in new carpet. Again, it’s not that expensive but it does make a significant impact on buyers coming to look at your home.

Location, location, location

It’s the oldest cliché in the world, but it’s true. When it comes to real estate, it’s all about location! When it comes to homes, things like how good the schools are, crime rates, visual appeal of the neighborhood and noise or the smell of pollution can all affect how desirable the location is. If you’re in a bad location, we can help to minimize some of the impact by suggesting improvements to the house. But the only really reliable way to overcome a bad location is with a lower price.

The market is slow

You’ll hear it described as a slow market, or a buyer’s market, or maybe a cold market. But it all means the same thing: Home sales in the local area are slow. There are too many homes for sale and not enough active buyers. There are several things you can do to combat a slow market. The most effective strategy is to sell at a lower price. Buyers expect to find bargains during a slow market. You can also offer to pay some concessions to help a buyer that might not have a lot of cash.

Your home isn’t easily accessible

To get your home sold quickly, it’s important that other agents in the area show it to as many potential buyers as possible. When a busy agent is compiling a list of homes to show a buyer, the agent will naturally tend to show those houses that are easiest to gain access to first. If you have several days and times during the week, especially weekends, which you do not allow showings then the likelihood of agents wanting to show your home will not be very good. The easier it is for an agent to show your home the more likely it will be to have a lot of buyers come and take a look.

Selling One, Buying Another

In a perfect world, you sell your old home and buy the new one on the same day. Given that it is virtually impossible to time it that way, here are some things to keep in mind as you navigate the sale of one house with the purchase of another.

Selling First
  • Selling your home before buying a new one minimizes financial hazards.
  • Get pre-approved for a loan on the new home prior to putting yours on the market.
  • If you’re ready to accept an offer on your home, but haven’t found the right new home, negotiate a long escrow or a rent back. This will give you more time to look for the new home. Otherwise, look for temporary housing. Even if you have to find temporary housing, it’s generally cheaper than two mortgages.
Buying First

It happens. You’re only thinking of selling, and suddenly the right home shows up. Now you have to sell your old home quickly. Here are some tips on making things work in your favor:

  • Negotiating a long escrow on this side of the sale works, too. You can also make the purchase contingent on your house selling. This will work better in a slow market, but it’s worth a try in any market. You never know what may also work best for the seller of your new home.
  • Try and schedule the closing date of your current home prior to the closing on your new home. A rent back of your current home until your new homes closes can be a great way to bridge the gap without needing to make a double move. Keep in mind that this needs to be meticulously planned and negotiated upfront when you first receive the offer on your current home and not as an afterthought later when the buyer of your current home can choose to say no. Otherwise, temporary housing is still often a better situation than two mortgages.
  • Take a close look at what price you’re going to ask for your home. Make sure it’s realistic in the current market.

As Oregon & SW Washington’s largest and most successful real estate brokerage that sells over 2 Billion in real estate per year, we are experts at this process and welcome the opportunity to discuss your unique situation and how we can best structure your transition.

Home Owner Warranties

A home warranty pays repair or replacement costs for the mechanical systems and built-in appliances that break down in a home. Warranties can be purchased by either the buyer or seller in a real estate transaction. When the seller is paying for the warranty, it is usually paid for and goes into effect at closing. The coverage period is normally one year. Usually, central heating and air conditioning systems, electrical, plumbing and major appliances are covered. It's important that you read the policy closely and understand what is and is not covered. The cost for a one year home warranty typically runs between $300 and $450, depending on the size of the home and the specific types of coverage. In addition to the policy premium, there is normally a deductible of $50 - $75 to pay when making a repair claim.