May 9, 2011 | Real Estate, Sellers
The April/May 2011 REALTOR magazine (a trade magazine for REALTORS from the National Assocation of Realtors) published an article titled “6 Worth the Price Fix-Ups”. The list comes from HomeGain’s annual home improvement and staging survey who asked 600 real estate professionals to see what DIY home improvement projects give sellers the biggest return for their money. These six projects under $1,000 investment made the list.
- Cleaning and Decluttering ($290 Cost, $1,990 Return) Remove any personal items, unclutter countertops, organize closets and shelves, and make the home sparkling clean.
- Brightening ($375 Cost, $1,550 Return) Clean all windows inside and out, replace old curtains, update lighting fixtures, and remove anything that blocks light from the windows.
- Smart Staging ($550 Cost, $2,194 Return) Rearrange furniture, bring in new accessories and furnishings to enhance rooms, incorporate artwork, and play soft music in the background.
- Landscaping Enhancements ($540 Cost, $1,932 Return) Punch up the home’s curb appeal in the front and back yard by adding bark mulch, bushes, and flowers and ensuring current plants and grass are well-cared for and manicured.
- Repairing Electrical or Plumbing ($535 Cost, $1,505 Return) Fix leaks under the sinks, remove any mildew stains, and ensure all plumbing is in good working condition. Update the home’s electrical with new wiring for modern appliances, fix any lights or outlets that don’t work, and replace old plug points with new safety fixtures.
- Replacing or Shampooing Dity Carpets ($647 Cost, $1,739 Return) Steam-clean carpets, replace any worn carpets, and repair any floor creaks.
This is a good list to show how sometimes it doesn’t take much money to increase your home’s value. In this very competitive real estate market pricing and condition are critical to successfully selling your home. We always tell our clients (and potential clients) to get us involved in the process early to make sure you spend the money where you will get the most return for your house. For one home cleaning the carpets may be the most important item, but in another the landscaping may need the money – get a professional’s opinion before you spend a dime. We also offer staging to each of our clients because sometimes with the help of our crafty and creative stager it may not cost anything to rearrage the furniture you already have or you may just need a few accessories to make your house look great.
Again, the key to the whole process is to have a professional that can guide you through the process and help you get that home sold. The Marr Team has great results getting homes sold quickly and for more money so let’s talk about how we can do it for you too!
Apr 28, 2011 | Real Estate
When visiting with someone who may be considering selling their home I typically ask how much they think their home is worth. Sellers have generally either talked to a neighbor that recently sold or researched on the internet to come up with their number. Some of that research may include the popular website Zillow.com. While Zillow is a good platform for real estate information, many people using their Zestimate function do not realize that there is a margin of error and the level of accuracy varies by location.
Zestimate Accuracy Table
Each location is given a star rating based on accuracy. Notice the Dallas-Fort Worth area has two stars which is considered a “Fair Zestimate”. Now let’s look at what is considered “fair”. Zillow estimates that its Zestimate is only within 5% of the sales price 22% of the time, within 10% 39% of the time and within 20% of the sales price 63%. That means that for more than half of the estimates given on the site they can be off by as much as 20% – that is huge! Consider a home priced at $200,000 – that’s a $40,000 difference!
You certainly don’t want to price your home 20% higher (or lower) than what home are actually selling for so ensure you consult a trusted REALTOR(r) when you begin considering a move to see where you really stand in the market. We are always happy to discuss your home’s current value in the market, so don’t hesitate to ask!
Apr 26, 2011 | Buyers, Homeowners, Property Valuation, Real Estate, Sellers
Frequently when showing buyers properties or discussing making an offer on a particular property a buyer will want to know the tax valuation on the home. Of course we always provide the answer, but remind them that the tax assessment on the home is not related to the market value, the two figures are mutually exclusive. Market valuation is the price currently set for a home based on recent neighborhood sales and the overall real estate market, it is what a buyer would pay to purchase the property. Property tax valuation is the basis for which an owner will pay property taxes.
The appraisal district for a county assesses homes based on an exterior analysis along with general market knowledge as of January 1st each year. Since Texas is a non-disclosure state (meaning the price you pay for a property is not public knowledge) the appraisal district is not able to use an actual sales price of a property unless a new property owner replies to the appraisal districts optional purchase price survey giving them that particular information. Homeowners will receive the districts assessment in May each year with their valuation for the year. In order to save money on property taxes owners will want the tax assessment value to be as low as possible and have the option protest the valuation if they believe it to be too high.
Market valuation is determined through an analysis of similar properties that have recently sold. The information used to determine this value is not public information so you will need a real estate agent or an appraisers to share the information and how your home fits into the market.
To further demonstrate the disconnect between these two numbers, consider two home owners in the same neighborhood with the same floor plan and amenities. Owner A has consistently and successfully protested to keep his tax valuation lower for several years while Owner B has accepted the ever increasing tax valuation each year without protest. When these owners put their homes on the market should it really matter what the property tax valuation is? In fact as a buyer you may prefer the home with the lower valuation so your taxes will also be lower, but it does not mean the property is worth any less on the real estate market.
Tax valuations will be coming out in May so if your home goes down in value, just breathe a sigh of relief for a lower tax bill and if you need a market valuation on your home contact us to provide you with our solid, market information and knowledge without any obligation.
(Of course, this information is most relevant to to the North Texas area where I specialize. If you live in another area, please consult a local REALTOR(r) for information about tax assessments and valuations in your area.)
