Smart Moves

Are you a wannabe home seller who planned to get your place on the market during the spring-summer selling season but are only now ready to sell? If so, don't despair. It's still very possible to strike a good deal this winter.

Real estate specialists say that although housing cycles are always in flux, there's no one "right" season to sell.

"General economic factors -- like the health of the job market and consumer confidence -- are much more important than seasonal variations in determining how much a home is worth," says Fred Meyer, a veteran real estate broker and appraiser.

While buyers are typically more numerous in the warmer months, sellers are as well -- and that means stiffer competition for your property.

"After nearly 50 years in the real estate field, I'm amazed at how it all seems to even out from one season to the next," says Meyer, who sells property around Harvard University.

Winter home-seekers often tend to be more earnest, according to Eric Tyson, a personal finance expert and co-author of "Home Buying for Dummies."

"On-the-fence buyers disappear in the winter. Most people making winter moves are doing so for work -- either a job change or transfer. These are very serious, highly motivated buyers," Tyson says.

Here are a few tips for wintertime sellers:

-- Realize that your home's value doesn't depend on the season.

Mary Biathrow, a longtime real estate broker, says the factors that most influence price are independent of time frame. How much you get for your home depends more on the desirability of your neighborhood, the quality of your local schools and the condition of your home.

No matter when they sell, she urges owners to avoid the most common of home-selling pitfalls: pricing on the basis of wishful thinking.

"Too many sellers are in denial about the value of their property. If their house is worth less than before the recession, they don't want to face that fact. Also, many people are in denial about all the repairs their home needs to be ready for sale," says Biathrow, who's affiliated with the Council of Residential Specialists (www.crs.com).

"Nowadays, buyers are educated on price. They spend a lot of time previewing homes online before they even call an agent and to start looking around," Biathrow says.

She says younger buyers are especially tech-savvy and can tell right away if a house is overpriced.

-- Don't worry about moving your kids during the school year.

A common fear of winter movers is that their kids have to make a change during the school year. They fret that their offspring will have a tough time adjusting both in the classroom and on the playground.

But William L. Bainbridge, president of the SchoolMatch Institute, which provides comparative information on public and private schools (www.schoolmatch.com), says children who make a mid-school-year change usually fare better than those who move in the summer.

One reason is that mid-year switchers are often showered with attention from teachers and classmates alike. In contrast, those who start a new school in the fall usually receive less academic and social support, says Bainbridge, a professor of education.

"Changing during the school year is a highly exaggerated problem. Kids are very adaptable. Most do just fine in their new schools," he says.

So long as you've picked strong and appropriate schools for your children, he says you needn't worry about a winter transition. The only major exception involves students in high school who are taking challenging pre-college classes, including Advanced Placement (AP) courses. He recommends they wait until the end of a school semester or term to transfer.

-- Remember that the math could work in your favor when trading up.

As the economic recovery continues, home values have already begun rising in many neighborhoods. But if you're living in an area where a housing recovery has yet to take hold, you might be tempted to wait until next spring or beyond, hoping your place might regain the value it lost.

However, Biathrow says this strategy may not be the best approach for sellers who now find themselves in the financial position to move up to a larger or fancier home in the same general area.

The reason has to do with simple math. Assume, for example, that in your neighborhood both starter homes and upper-end properties have lost the same percentage of their value since the recession hit. In that case, the discount you obtain on your trade-up purchase will more than outstrip the cut you take on the home you've sold.

"In a weak market, buyers moving up can do better than sellers moving down," Biathrow says.

-- Go light on the decor if you're selling during the holidays.

Have you decided to take the plunge and sell around the winter holidays? If so, Biathrow recommends you keep your decorations simple.

"Unless your rooms are large, this year you won't want a huge Christmas tree and a lot of bows and boughs everywhere in the house. Too much decor makes a home look overfilled. And no one wants to buy a place that seems crowded," she says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

Few would have believed it just a few short years ago, but the housing recovery has come far enough that in an increasing number of popular neighborhoods, buyers must now compete with rival bidders.

Are you a buyer seeking a home in a high-demand market? If so, real estate specialists say that you could be at risk of overpaying.

"Overpaying can be a real danger -- especially if you're one of these idiots who gets revved up when facing competition and wants to win no matter what," says Sid Davis, a real estate broker and author of "A Survival Guide for Buying a Home."

Of course, the risk of overpaying is that you won't recoup your investment when you move. That's especially likely if you have a career that requires you to move often.

"I'm not so concerned about people overpaying if they really expect to stay in the house for 10 or 15 years. But if you're not sure how long you'll stay, you've got to be cautious," says Leo Berard, charter president of the National Association of Exclusive Buyer Agents (www.naeba.org).

Do you plan to bid on a particular property that's for sale in a highly desirable neighborhood? Yet do you fear overpaying? If so, then even some basic research on local property values could help put your mind at ease.

Berard says astute buyers narrow their search for information to the exact area where they intend to buy. Data gathered on state or national real estate trends will have little relevance for you as you seek to learn more about values in your target area.

In fact, homes could be worth more in one section of a neighborhood than another, due simply to differences in housing styles.

A strong knowledge of local property values helps you craft an offer at the right price point, thereby reducing your chances of overpaying.

Here are a few tips for buyers intent on getting a fair deal:

-- Seek Internet information as a starting point.

Many websites now offer fast and free estimates on property values and can prove a valuable resource, Berard says. One example he cites is Zillow.com, which lets you search data at either the property or neighborhood level.

"To get started with your research on home values, these sites are a good starting point," he says.

However, statistics from websites are no substitute for guidance from a capable real estate agent with extensive knowledge of the area where you're looking. The right agent may even be able to recite recent sales figures from memory. But Internet information can be a good complement.

"Spend an hour or two one morning on the right websites and you can move up the learning curve while still in your pajamas," Berard says.

-- Ask your real estate agent for help evaluating any home you're considering.

The classic technique used by real estate professionals to estimate a home's value is called a "Comparative Market Analysis." This method is grounded in data on recent sales of similar homes to the one being judged.

"If you're looking in a community with lots of houses that have uniform floor plans, the process is pretty straightforward. But that's not the case where lots of houses are custom-built," Berard says.

In any case, your agent should find at least three completed sales that are roughly comparable. Then she or he should add and subtract value based on differences between the home you like and the others.

Real estate agents are the first to admit that their judgments on property values are based on more than data.

"Unfortunately, coming up with an opinion of value is never totally scientific. Your agent also has to draw on experience," Berard says.

-- Take neighborhood economic trends into account.

During a period when real estate markets are relatively volatile, as they are now, Berard says you need to look beyond closed deals to see where values are heading.

"Housing prices don't rise or fall as quickly as stocks on Wall Street. But over time, economic factors can have a big impact," he says.

In a suburb that's heavily reliant on one employer, such as a defense contractor, a wave of layoffs by the company could reduce property values nearby. On the other hand, values could rise in a community that's benefited from a school boundary change.

-- Request seller "concessions" rather than a lower price.

As a real estate broker, Davis recently helped a middle-aged woman buy a place for her elderly mother. It was an accessible, ranch-style home in a popular neighborhood where a number of properties were on the market at the time.

The statistics gathered by Davis for his client indicated that the two-bedroom condo was fairly priced. They also showed a high level of inventory in the area, which strengthened the purchaser's bargaining power.

Even so, Davis advised the buyer to offer full price for the place, while at the same time seeking a sizeable amount of seller assistance with her closing costs. The sellers readily accepted the deal and the elderly woman was soon able to move in.

Often sellers are much more willing to yield on closing costs than on the price, Davis says. This helps protect their pride.

"It's a cliche in real estate that people like to crow about how much they 'got' for their house. But when they boast, they never mention how many concessions they made," he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

As the economy heals, more people who've lost a job are finding new work, albeit often in a distant location. But moving for work often means selling a beloved home, and that transition can be painful, says Ronald Phipps, a veteran real estate broker.

To delay the need to sell, some homeowners postpone, believing their property will gain value as time passes. This strategy usually depends on converting the property to a rental unit for an interim period.

But Phipps says that overseeing a rental from a distance rarely works well -- even for owners who hire a rental management company.

"When you rent, there are always complications. Tenants never treat a house with the same care as the owners. In addition, there are always carrying costs involved with renting out a property," he says.

Instead of focusing on the possibility of renting, Phipps urges homeowners planning an out-of-state move to be pragmatic and do all they can to seek a speedy sale.

Phipps says home sellers, especially those who must move quickly, are best served by pricing accurately from the outset rather than trying to "test the market" on the assumption they could take price cuts later if necessary.

"Your highest impact comes at the beginning of your listing. That's when you're most likely to get fair market value -- not after people start to question why your house has been sitting unsold for so long," Phipps says.

Here are a few tips for homeowners seeking a quick turnaround sale in advance of a distant job move:

-- Don't ignore cosmetic upgrades, even if you're short on money.

"Here's the problem: few people have extra cash for fix-ups. But try to sell your house with a ratty carpet or an ugly interior paint color and you'll lose more than it would cost to fix those defects," Phipps says. This is because buyers often demand steep discounts as homes that appear in need of fixing up.

Suppose, for example, that three of your bedrooms have faded and off-color walls. Perhaps you'd pay a total of $1,500 to have these rooms repainted. But, as Phipps explains, a buyer might try to get a $5,000 or greater discount if you let the work go undone.

Are your savings depleted due to recent unemployment or other economic hardship? If so, Phipps says you're better off borrowing for basic cosmetic improvements than going on the market in "as is" shape.

If at all possible, Phipps urges home sellers in a financial pinch to avoid borrowing on their credit cards for pre-sale upgrades -- friends or family would be safer options, if possible.

-- Do the work needed to make your place clean and clear.

Not all home fix-ups cost money. Indeed, two powerful tools for home improvement are virtually free: cleaning and de-cluttering.

"People are used to thinking that 'sweat equity' is for homebuyers. But it's also for home sellers. The only costs necessary for cleaning and clearing are for basic supplies and your elbow grease," says Ashley Richardson, a long-time real estate agent affiliated with the Council of Residential Specialists (www.crs.com).

During the purging process, she strongly encourages sellers to remove family photos and other personal mementos.

"Personal items like photos of your grandparents only serve to distract buyers. Buyers don't want to see your relatives staring out at them from photos. These pictures make it hard for buyers to envision themselves living in your house," Richardson says.

-- Concentrate on your exterior image.

From their agents, buyers often receive listings of property they might wish to visit. But before booking an appointment, many buyers preview homes by computer.

"Nowadays, buyers' first impressions are often virtual. That's because they're using Google Earth to preview homes. In addition, they also drive by a place to check it out before committing to a showing," Phipps says.

He says that just as people judge books by their covers, so do they judge houses by their exterior appearance. Among the outside elements that could dissuade buyers from looking inside are peeling paint, unruly shrubs and clunker cars.

-- Schedule an event that gives you a concrete deadline.

If you're like many people, you need a rock-solid deadline to bring a project to its conclusion in a timely way. You fear procrastination could derail you from meeting your goal of preparing your home for sale quickly.

Assuming that's the case, Phipps encourages you to give yourself a hard deadline by scheduling a "broker's open house" on the day your home goes on the Multiple Listing Service.

A "broker's open," as it's known, is an event to which real estate agents throughout your area are invited. It's an effective tool for marketing an attractive property to those most likely to be working with serious buyers.

"Having a deadline is always a good motivator. You don't want procrastination to cost you valuable time that your house could be on the market," Phipps says.

-- Don't give up without trying.

By this point in the nation's recovery process, everyone has heard tales of homeowners who found it extremely tough to sell, no matter how hard they tried.

But as Phipps says, for every neighborhood where homes aren't selling, there are other markets gaining momentum --as both first-time buyers and move-up purchasers emerge to take advantage of very low interest rates and moderate home prices.

He cautions sellers, especially those who must move to take an out-of-state job, against concentrating on the tales of woe they've heard from people who had a hard time in the recent past.

"These other sellers might have hurt themselves by overpricing. Anyway, the housing market is improving in many areas. Rather than listening to unhappy sellers, I recommend you go out and get yourself some great strategic advice from true real estate experts," Phipps says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)