The Storm Lake Home Market is trending down, just as Alta's is. It appears to have started in November 2014, Since August 2015 this market has not had more than 68 available homes, the number of properties available in January 2017 is less than half the number available in January for the last 3 years. Sellers - this is a heads up, supply and demand are driving up price and competition for properties.

It is Spring! Real Estate markets are beginning to pick up but there is a quiet desperation this year, an elephant in the room. That elephant is the lack of inventory, it has been present for the last 3 years and has grown every year. The result of this lack homes to sell is that the Storm Lake Iowa area is in a perpetual Strong Sellers Market and getting stronger every year. 

High demand and very low supply are the reason for this Seller's Market. The result is multiple offers on many properties, properties selling for more than list price, and appraisers and realtors struggling to find comparable property to enable them to accurately value and list new properties coming on the market. 

Multiple offers aren't a bad thing, they are good for sellers. Normally this kind of thing is unusual in our area but last year I had 6 transactions with multiple offers. One had 6 offers within 2 days, that home sold for more than appraised value. That can be a problem, because if the buyer needs a mortgage to purchase they will have to bring money to the closing table or will not be able to get the mortgage. 

Buyers are offering without negotiating for the usual contingencies like inspection, closing costs paid by sellers and home warranty, buyers also must have loan pre-approval to even have an offer considered by a seller. Sellers are not allowing time to get financing in place after accepting an offer. 

The perfect scenario is to have between 4 and 6 months of inventory available in any particular market. Right now the Storm Lake market has 13 properties without accepted offers. Only 1 under $100,000, 7 under $200,000, 3 under $300,000 and 2 over $300,000. 

If you have a property you are thinking of selling, NOW IS THE TIME! You will own the Storm Lake IA area market if your property is in good condition and fairly priced. Call me I can make sure you get the maximum amount for your property in this Seller's market. Georgia Weaver 712-291-0118.

Countdown to LISTING Your Home!

The work to prepare your home to sell will pay you back in higher sale price and fewer days on the market! Buyers will see the care you have taken of your home and that is always worth $$$$ to a buyer.

So, where do you begin?

 #1 REDUCE and DECLUTTER:
Yes we all have stuff, we realize just how much stuff when we plan on selling a home and moving.  So that you do not get overwhelmed begin with one thing at a time. The first area I recommend reducing is clothes, you want to have at least 1/3 of your clothes storage empty. Next, I would reduce is books/media and if you don't just love it donate it, what's left, pack and remove from the house. Do this for each category of items in your house (Click here to get the checklist emailed to you). If you don't reduce a LOT, most homes feel too small and like they do not have enough storage. Decluttering is like instant staging and it will make you feel GREAT!

#2 DE-PERSONALIZE: If you have a lot of personal photos reduce them, but keep a few. The buyers need to be able to envision their things in your space so help them do that. 

#3 FRESHEN UP: Nothing looks better than a fresh coat of paint to give a room that new look. Neutral color is important. 

Bathrooms all need freshening up, fresh coat of paint, replace/repair dated or drippy  faucets, replace old dated light fixtures, new shower curtain, matching towels. Clean to a sparkle!

Carpeting seen better days, or does it need cleaned? If the carpet is really worn, replace it instead of try to clean. If it doesn't come completely clean it should be replaced. 

Kitchens need to be super cleaned too, including all appliances, cabinet doors, floors, walls, and counter tops. How is the paint in the kitchen, do you have old wall paper - if so remove it or it will cost you a lot in the buyer's offer. 

Basements need to be cleaned and the floor painted with a good floor paint. Remove cobwebs, install a dehumidifier if there is any musty smell.

#4 Bright and Light: Clean all your light fixtures, replace blown bulbs, lots of light will make the room feel larger. 

Curtains, blinds, shades should be clean and in top condition. Clean windows, open all blinds, curtains or shades for every showing. 

 #4 CURB APPEAL: How about the outside - it is equally important!

Outsides of houses and garages need to be cleaned like the insides of houses. There are several house washes on the market that attach to a hose. You may only need to use a hose and water if it isn't bad. 

How's the trim on your house and garage, if it is wood it may need painted or at least touched up. 

Yards should be neat and well maintained like the inside of your house, grass cut, bushes trimmed, trees trimmed, sidewalks and garden beds edged. If you have plantings close to your A/C condenser trim them back.  Do the flower beds look good, they may need some fresh mulch to really pop. 

Does your front door and entry say, "Welcome Home", most homes need either a new front door or at least a fresh coat of paint on the existing one. How does the hardware on the door look, is it worn and doesn't polish up to look new - replace it. It is part of your first impression and you know what they say about that.  Your entry should be welcoming, clean, and representative of the rest of your home. Fresh flowers are a nice touch, but please NO scented oils, candles or plug in. They arouse suspicion that they are covering up some other smell and many (over 30%) are allergic to petroleum products like these. 

Gutters and downspouts should be clean and in good condition, extended out at least 3 feet from your foundation. 

#5 PRE-LISTING HOME INSPECTION: When you have completed the above work and review it could pay off having a Pre-Listing Home Inspection - it is a great idea and can save you a lot of money and possibly a sale. Anything that is an obvious problem that you have been planning to fix - do it before the inspection. This inspection is a HUGE SELLING TOOL, cost is between $350 and $500 and help the buyers feel comfortable with you and your property. 

Want hands on help - call me I will come to your property and help you put together a plan to get your property in great condition and ready to sell. Georgia Weaver 712-291-0118. 

Dealmaking in Negotiation: Six Strategies for Creating Value 

Here is a link to the Harvard Law School's Negotiations Daily Blog - Everyone can learn some strategies for haggling in negotiations.

This blog is a great resource for everyone, but especially if you are buying or selling real estate. It includes business negotiation scenarios.

Daily they post interesting scenarios on real life and world negotiations and what techniques, skills and factors were used and the success of each. 

You learn BATNA - BATNA is a term coined by Roger Fisher and William Ury in their 1981 bestseller, Getting to Yes: Negotiating Without Giving In. It stands for "Best ALTERNATIVE TO a negotiated agreement."

Checkout their free reports, they will help you in your everyday life

How do you know if you should rent or buy? 

Fannie Mae has a great page of resources that you can work through that will give you more insight if you should rent or buy.

First things first -

1) do you plan to be in one place for at least 3-5 years, yes - probably buy, no - probably rent
2) can you afford the down payment and fees needed to purchase, if no you shouldn't buy,
     keep saving
3) do you need a potential tax break,
4) can you physically and financially afford to take care of a property, if no you shouldn't buy
5) do you want to build some financial equity through real estate

These are just some of the important questions you need to be able to answer before you decide. Check out the link above to see more on how to determine if you should buy or rent.

HOW TO GET THE MOST MONEY FROM THE SALE OF YOUR STORM LAKE AREA HOME

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum value for your house?

This assumes your home is in tip top condition, you have reduced and staged the property to sell. We also recommend a pre listing home inspection to avoid bad surprises after an offer is accepted. Here are two keys to ensuring you get the highest price possible.

1. Price it a LITTLE LOW

This may seem counterintuitive. However, let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actuality, this just dramatically lessens the demand for your house.

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. In that way, the seller will not be fighting with a buyer over the price, but instead will have multiple buyers fighting with each other over the house. I had 6 Storm Lake homes in 2016 go over list price!

Realtor.com, recently gave this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

2. Use a Real Estate Professional

The seller may think they would net more money if they didn’t have to pay a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional.

Research posted by the Economists’ Outlook Blog revealed that:

“The median selling price for all FSBO homes was $210,000 last year. When the buyer knew the seller in FSBO sales, the number sinks to the median selling price of $151,900. But, homes that were sold with the assistance of an agent had a median selling price of $249,000 – nearly $40,000 more for the typical home sale.”

Bottom Line

Prepare your home first with a home inspection, declutter and stage. Price your house at or slightly below the current market value and hire a professional. That will guarantee you maximize the price you get for your house.