Bruce Nemovitz

There is much controversy as to the state of the real estate market across the nation. That is the key! The nation is huge and reports seem to sum up the price fluctuations into one large conglomeration of states. Market conditions are regional, even local. You can even see different conditions by subdivision or condominium complex.

Certain price ranges are holding up better than others, as we see the middle ranges ($350,000-$800,000) being affected more than other price points. First time buyers are still out in good numbers, and premium properties (those on water or in areas where few go up for sale) are holding steady.

It is true, that the market has softened in almost all sectors, but many areas are still holding there own. There are more homes and condominiums on the market now, then in past years. For instance, multiple listing statistics (MLS) show that in the current year there are roughly 27% more properties on the market than last year, and 40% more homes on the market than 2004. How does this addition of competition affect home sales in your area?

Due to the competitive real estate climate, buyers have the upper hand as they have so many more homes and condominiums to choose from. Taking that thought one step farther, condition and price are enormously important. Put yourself in a buyer’s shoes. If you have 10 homes to choose from, you are going to consider the appearance as well as how it is priced in the market. You would choose the home with the least amount of repair or updates needed. You would probably purchase the best value for your money. Therefore, as a seller, you should seriously consider repairing any structural defects such as a leaky basement, a curled roof, old furnace and water heater, or faulty plumbing and electric. If your carpet is worn and unattractive, replace it if you have the funds. Paint is probably the biggest bang for the buck.

If you make these repairs and updates, you will always be the first choice for a buyer in any market. Buyers today punish homes in their offers if the home does not show well or needs structural repair. Keep in mind that the money you receive will be tax free in most cases (you are exempt up to $250,000 in gain if you are single and $500,000 in gain if you are a married couple. You would qualify for this exemption if this was your primary residence 2 out of the last 5 years.) Due to this tax free situation, each dollar you receive becomes larger.

If you choose not to make updates, you can still sell your property, but the discount you may have to offer may be disappointing and painful. If you consider updates, look to the kitchen first, then bathrooms. Those are the rooms which when updated will bring the best return on the money invested. Start thinning out your home now, as a cluttered home, no matter what improvements you invest in, will never show well.

The message I want to convey is that today’s market conditions offer more choices to buyers, so if you have the funds to update your home, invest those dollars in cosmetic and structural updates, and you will be the winner when your home is eventually sold. If you wait, you may have to sell at a discounted price which may be hard to swallow. Every property sells, but the final sales price depends on buyer’s expectations and how many homes they have to choose from. Today’s buyers have higher expectations as they have more to choose from, so try to position your home to receive the highest possible sales price!

Bruce Nemovitz is a Senior Real Estate Specialist, as well as Certified Senior Advisor. Bruce has sold residential homes in the four county Milwaukee-Metro area for over 28 years. He works with his wife Jeanne and assistant Boni at Realty Executives Lakeshore.

Please feel free to call Bruce or his team with any real estate questions you may have at 414-303-4004, or email at Bruce@BrucesTeam.com