Smart Moves

Donna Goings, who's sold homes since 1985, has a wide-angle view of the home-buying market. Thinking back, she says it's only been within the last 10 years that buyers have become acutely energy-conscious.

Due to increased environmental awareness, Goings, a realty company owner affiliated with the Council of Residential Specialists (www.crs.com), says, "There's more of a stigma on buying a large, energy-consumptive house."

Because of this new trend, Goings says it can be difficult to sell an exceptionally large property, one with more than 5,000 square feet, especially if it still has outdated heating and cooling systems or poor attic insulation.

Art Godi, a real estate broker and past president of the National Association of Realtors (www.realtor.org), says Americans are increasingly ambivalent about ownership of large homes, given the high costs of maintaining them.

Energy costs aren't the only issue. It's also costly to keep a large property clean and in good repair. Then, too, there are major expenses to maintain the elaborate landscaping that typically surrounds many McMansions.

Sid Davis, a veteran real estate broker and author of "A Survival Guide to Selling a Home," advises sellers of very large houses of the importance of setting a realistic list price, which could mean asking less per square foot than for a smaller property in the same area. It's also important that you market the place strategically.

Here are a few pointers for home sellers:

-- Consider the international market for your large property.

One way to widen the pool of prospective buyers for a large, upscale home is to consider potential purchasers from abroad who have the means to buy and maintain an expensive property.

"The Web has made selling property to foreign nationals a lot more realistic. Real estate investment has gone global. For example, there are now many Chinese, Canadian and Latin American buyers searching for homes in the U.S.," Davis says.

Of course, not every neighborhood can attract well-to-do buyers from other countries. Could your large place have international appeal? That's plausible if you're located within or near a cosmopolitan city, like Los Angeles, San Francisco, New York or Miami. It could also be viable if it's set in an area with great scenery and beach views, like La Jolla, Calif.

Though an increasing number of listing agents are now aware of the overseas market, few have been specially trained to sell homes to this category of purchasers.

"It's important that you find an agent with experience dealing with foreign buyers," Davis says.

As the market globalizes, there's increased interest in the field within the membership of the National Association of Realtors. By going to the organization's website, you can find agents in your area who've earned the designation of "Certified International Property Specialist."

-- Ask your listing agent to create a website for your house.

Those seeking to market a very spacious house are often well advised to obtain a professionally designed website for the place -- one that showcases the property to the well-heeled buyers who can afford it.

"Face the fact that it can cost money to market your home to discerning buyers. It's not enough for the listing to simply appear on your agent's website. You need your own online presence," Davis says.

Once your website is live, how do you attract traffic to it? Davis recommends that you and your agent invest in classy advertising in newspapers and magazines that target upscale audiences.

-- Promote the energy-saving features built into your place.

Does your large house have features such as a "zoned" heating and cooling system, which permits sections of the property to be shut off when not in use? Does it also have energy-efficient appliances, including a state-of-the-art refrigerator that will convey in the sale?

If so, Godi says these features should be promoted in your marketing materials.

Besides the use of online and print marketing materials, Godi suggests you advertise your energy-smart house with a rider attached to your For Sale sign.

-- Seek out contractors' estimates for energy-saving improvements.

Was your jumbo-sized house constructed with little attention to energy efficiency, and there's little you're willing to do to upgrade it before it hits the market? In that case, how can you allay the worries of potential purchasers who fear jumbo-sized utility bills?

Goings suggests you call in contractors for bids on energy-saving work, such as attic insulation and new windows. Then give these bids to prospects, so they'll know how much it would cost to redo your place to save energy. Also, give them copies of your recent utility bills.

"It always helps when buyers see the numbers. That way they won't be in the dark about the cost of all the changes they'll want and need to do to your house," Goings says.

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

Many people think home-buying bargains are gone, a casualty of the nation's gradual economic recovery. They reason that given rising home values, the only remaining areas where you can nail a good deal are those with high unemployment or urban blight.

But seasoned real estate specialists beg to differ. They say you can still find a quality home in a desirable neighborhood for a very good price -- assuming you take a strategic approach, find motivated sellers and exercise care in the way you craft your offer.

"There are always people who want or need to cash out of their house quickly because of divorce, financial problems or a new job in a faraway location," says Tom Early, a real estate broker who specializes in helping buyers.

As the headlines attest, median home prices have risen in many neighborhoods in recent months. And this past spring marked strong sales in many areas due to a shortage of inventory relative to supply. But since then the supply-demand ratio has shifted to a somewhat more balanced market.

"Lots of baby boomers are now coming out of the woodwork to sell homes they've owned for years," says Early, a past president of the National Association of Exclusive Buyer Agents (www.naeba.org).

He contends that buyers can often snag a deal if they find sellers who have a sense of urgency about letting go. It's also important to package your offer in a way that's unlikely to offend the owners, thereby reducing the odds it will be rebuffed.

The term "lowball offer" has bad connotations for real estate professionals, because ridiculously low offers are nearly always destined for rejection.

"An overly low offer punctures (sellers') pride," Early says.

To prevail in negotiations, Early says buyers should stay within a reasonable range of current market value with their first bid, recommending an offer of "no more than 10 to 20 percent off market value."

Here are some other pointers for purchasers:

-- Seek to connect with the home's sellers.

Because nearly all homeowners have emotional attachments to their property, most sellers react badly to any remarks that denigrate their home, says Fred Meyer, a longtime broker who sells property around Harvard University.

When shaping your offer, how can you convince the sellers that you sincerely appreciate their place and would value living there? Meyer suggests you attach to your bid a handwritten note that introduces you and tells the owners why you like the home.

"The idea is to humanize your offer. By writing a note, you help the sellers visualize who you are and what you like about their place," he says.

-- Attach a pre-approval letter to your offer.

In extremely popular neighborhoods, buyers currently outnumber sellers, and multiple bidding situations are relatively common. In those areas, Early says it's especially important to attach a mortgage pre-approval letter to your offer.

"Sellers don't want anything to do with buyers who can't prove they have the wherewithal to finance their house," Early says.

In fact, Meyer says it's often wise for buyers to attach bank statements showing they have the funds to take the deal to closing.

-- Don't forfeit your chance for a home inspection.

It's true that a condition-free offer represents a stronger bid and gives you an advantage over other bidders. Even so, Early urges you not to waive your right to a professional home inspection.

"People who don't get an inspection are at risk of buying a pig in a poke. Very few people have enough money to cover the costs of the horrendous house problems," Early says.

Are you competing with other bidders to buy a highly desirable property and want to present as condition-free an offer as possible? In that case, Meyer suggests you arrange to have your inspection done prior to drafting your bid.

"That way you can make a very clean offer without surrendering the chance to have the house checked out for problems," he says.

-- Keep in mind that timing is critical to motivated sellers.

Whether the sellers of a home are willing to deal with a low bidder often depends on how much pressure they're under to sell, Early says. Those in a rush are usually more willing to entertain a low bid, even if it means making a counteroffer to bring up the dollar amount.

"Timing is often the single most critical factor in getting a great deal on a house. Speed is especially important to sellers under duress who must move soon or face foreclosure. That's why the willingness to move quickly can strengthen your hand as buyers," Early says.

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

Americans have been on a home-improvement binge for years. But at some point, many homeowners realize their aspirations can't be met through remodeling alone. That's when they start thinking seriously about buying a better property.

What spurs move-up buyers to action? Often, it's a job promotion, a growing family or the quest for better schools. Lately, it could also be the belief that if they don't act soon, home values might rise to the point that they can no longer afford to move up.

"At some point, people just say, 'Let's go ahead and take the plunge,'" says Ashley Richardson, a long-time real estate agent affiliated with the Council of Residential Specialists (www.crs.com).

She tells the true story of a couple of 33-year-old buyers who, until recently, were living comfortably with their 2-year-old son in a tiny Cape Cod with a dining room so small it could barely fit a table. Word that the wife was pregnant with twins sent them house-hunting.

After much discussion, they sold the house they bought in 2006, accepting the reality that it had gained little value since then, and found a colonial triple its size in a nearby neighborhood.

And it's not just people with growing families who are moving up. Richardson also cites an older group she calls "house tweakers" who make a hobby of home improvement.

"As soon as they make one house absolutely perfect, they feel compelled to find another house they can remodel," she says.

One common denominator to all trade-up buyers is the quest for upward mobility that Richardson believes is embedded in American culture.

Here are pointers for move-up buyers:

-- Let go emotionally of your current property.

Surprisingly, many people who want to sell their property in favor of a better one have a tough time letting go of their current domain, says Sid Davis, the author of several real estate books.

"Subconsciously, many sellers think they're entitled to a higher-than-market price because they love their house and think it's better than any other place for miles around," says Davis, a veteran real estate broker.

"Get greedy and you'll hurt your plans for moving any time soon," Davis says.

How can you loosen emotional ties to your current property so as to sell it properly?

Davis recommends that before setting your list price, you do a brief tour of the properties available in your price range in the area where you wish to live.

"Looking around at other options can flip the switch in your brain and cause you to get excited about buying that better house. This should help you on the selling end," he says.

-- Never ignore resale potential when buying a home.

If you're trading up to a better property for the second or third time, you may assume your next buy will be your last -- what real estate people call a "forever house." But statistics show that many owners sell sooner than expected, says Dorcas Helfant, a former president of the National Association of Realtors (www.realtor.org).

Regardless of how long you stay, you'll want a place that not only holds its value but appreciates. That's why it's wise to look for features that will gain in value over time, such as those that help keep utility bills to a minimum.

Helfant says one good bet is to look for energy savers, including extra attic insulation, double-paned windows and high-efficiency appliances. In addition, look for an open floor plan that should retain its popularity over time.

"Buyers don't like chopped up floor plans with a lot of small, self-contained rooms. They like a kitchen that flows directly into a large 'great room,'" she says.

-- Don't rule out a brand-new home.

As always, real-estate markets vary in strength, fluctuating through the seasons and economic cycles. But Davis says one constant is that better deals, on a per- square-foot basis, are typically found in upper-range subdivisions.

"Some areas now have a shortage of new housing at all levels, while others have an excess of new properties at the top. Builders with big construction loans are always eager to sell so they can repay their debts," he says.

-- Consider the purchase of an "over-improved" property.

The recent surge in home-improvement activity prompted some homeowners to go to extremes, making their properties fancier than their neighbors'. For example, they might have added exotic wood kitchen cabinets in an area without upscale kitchens. Or perhaps they've built on a fifth or sixth bedroom in a community of three- or four-bedroom houses.

When they first set their list price, the owners of an over-improved home may ask too much, on the hope they'll recoup every dime they spent on remodeling. But if they've outdone the local market, their home will typically sit unsold for a lengthy period, says Michael Crowley, a broker and former president of the National Association of Exclusive Buyer Agents (www.naeba.org).

Once a major price cut is taken, however, the over-improved home can become a genuine bargain, Crowley says.

"The key here is to be sure your agent is tracking the home and can tell you the minute a big price reduction occurs. At that point you might catch a wonderful buying opportunity," he says.

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