Staging your home helps it sell in a saturated market

Today’s housing market is saturated with inventory: homes for sale or in foreclosure. So how do you set your home apart from the rest? Most real estate agents will agree staging is the answer.

Contrary to what you may think, staging isn’t cleaning, painting and repairing. It’s what you do after that’s all done. It’s manufacturing an atmosphere; be it brighter, warmer or homier. Of course, giving each room ambiance is an art. Professional home staging can cost as little as $400 or as much as $5,000 or more. If you choose to do it yourself, visit one or two new home models and take notes. You’ll undoubtedly see large bowls of vibrant fruit in the kitchen with colorful cookbooks on the counter. Bathrooms commonly have spa treatment baskets and towels tied with ribbon. You get the idea. It’s all about fantasy; creating an illusion.

But does staging really work? According to stagedhomes.com, from November 2008 through May 2009 94.8% of ASP (Accredited Staging Professional) staged homes sell on average in 37 days or less. The average sell time for non-staged homes was 182 days.

“You deserve to get the most money for your home”, says Michelle Morris of Home Staged Designs in Baltimore, Maryland. “Staged houses sell for 7% more and in half the time. That’s $35,000 more on a $500,000 home. [Additionally,]93% of staged houses sell in under one month.”

In today's tough real estate market, many Marylanders are finding it necessary to sell and feel that putting a few thousand dollars into staging is not an option. However, before you decide if staging is right for you, consider: the investment in staging is far less than a price reduction on the home and, if time is an issue, the additional cost of keeping your house on the market longer.

While your home is on the market protect your belongings, protect your privacy

Selling your home requires opening your doors to the masses. Potential buyers need to see the house in person and visualize themselves living there. And they won’t be passively walking through; they will be looking in your closets, opening cabinets and probing storage areas, and understandably so. Anyone seriously interested in purchasing your home will want to look in these places to see if they suit their needs.

Unfortunately, not everyone coming through may be interested in buying. The sad fact is that, though rare, there are individuals who will visit a listed property with the intention to steal valuables, personal information and even prescription medication. Of course realtors will typically accompany their client through a home if for no other reason than to point out features and try to make the sale. But sometimes (especially in open houses) agents will let potential buyers browse on their own. Even if you have a diligent agent , these criminals will work in groups of two or more and wonder in separate directions to make it difficult for her to keep an eye on everyone.

The easiest way to avoid being a victim is to put everything away. And that doesn’t mean stick your mail in the kitchen “junk drawer”. I spoke with a colleague a few weeks ago and she told me that while showing a home, her client opened a kitchen drawer and the homeowners credit card bill was laying face up in the drawer—account numbers and all right there for the world to see. This is obviously something that you will want to avoid.

Purchase a lockbox or two and put all your important papers in them. Empty your medicine cabinet of prescription drugs, which contain not only the drugs but substantial personal information as well! Don’t leave spare house or car keys sitting out or on key holders. It may seem like a lot of work, but your peace of mind is worth it.

Has Maryland's real estate market hit bottom?

If you’re interested in buying a home in Maryland, then without doubt you have been wondering if the time is right to finally pull the trigger. Most experts agree that Maryland’s housing market has indeed hit bottom and, according to this article on somd.com, is beginning to climb. Yet many potential buyers aren’t certain. “Has the market really hit bottom or should I wait a little longer?” It’s a common question these days, but not necessarily the correct one. With interest rates at a 40-year low, (hovering around the 5% mark) a more important question may be, “How much longer will interest rates remain this low?” That’s because every ¼ percent increase in your rate adds $6,000 per $100,000 financed for a 30-year fixed mortgage over the life of the loan.

So assume you are looking at a house whose current price has fallen to $425k and the current interest rate is 5.00%. If the rate jumps to 5.25%, you will add over $25,000 in interest. Consequently, even if the gamble works and the homeowner dramatically lowers his price to $400,000, you still lose. Is it really worth waiting to see if home prices fall a few thousand dollars more in lieu of locking into a fantastic rate? One thing is certain--rates are going to climb. The question you have to ask yourself is, “Do I feel lucky?”