A massage therapist in her 50s has been attempting to sell her spacious three-level house in Idaho Falls since February. Given that she faces challenges climbing stairs, she aspires to trade the place for a one-level rancher.
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The woman was especially hopeful of receiving a solid offer during the spring market when her garden was in full bloom and her yard, set against the spectacular Grand Teton Mountains, was particularly alluring. Visitors appreciate the home’s pecan hardwood floors and note its $25,000 price cut. But still the property sits unsold.
“I’m at a loss to know why this house hasn’t sold. ... I am just stumped about what to suggest to the owner, who’s very demoralized,” says Alecia Coburn, a Keller Williams real estate agent handling the listing.
Granted, affordability has become an acute issue for many homebuyers in Idaho’s metro areas. During the pandemic, when more people were permitted to work remotely, Idaho was a popular and affordable retreat for many buyers from California, Oregon and Washington. But the influx pushed up prices and squeezed out many who sought ownership there, according to Coburn.
During the pandemic frenzy, many were moving to Idaho to claim a big lot and all the advantages of outdoor living, like mountain hiking. Since then, however, sales have slowed dramatically.
Indeed, many communities in Idaho and across the nation experienced poorer-than-expected home sales this spring, and they’re now enduring a summertime slowdown. The result in some places is that buyers are gradually gaining slightly more bargaining power.
Kathy Scott, a Redfin agent in Phoenix, estimates there are still hundreds of thousands more home sellers than buyers nationwide. But some would-be sellers have moved to the sidelines as the market tilts more and more in the buyers’ favor in much of the country.
Of course, no matter the market, there are always some owners who must sell, even during the slower summer season.
“My advice for people who do need to sell -- I’m working with one couple that’s moving out of the country, for example -- is to set realistic expectations,” Scott says.
As a first step, she urges this summer’s sellers to assess market conditions in their local area.
“Talk to your agent about the market in your exact neighborhood. How long are homes taking to sell? Are they typically selling below asking price? And what are sellers doing in terms of repairs and concessions to get deals done? Price fairly based on those numbers,” she says.
Here are a few other pointers for sellers:
-- Seek solid counsel on upgrades.
Coburn, the massage therapist’s agent, knows that the relatively small size of the owner’s kitchen is hurting her prospects for a successful sale. But she cautions against expanding the kitchen through an extensive and expensive home renovation.
Mark Nash, a real estate analyst, recommends that prospective sellers contact three agents for advice on which home improvement projects are truly necessary.
Most well-established agents will visit your house and advise you even if you don’t intend to sell for another three to five years.
“Good agents are in their field for the long term. They’re not just looking for a quick sale,” says Nash, author of “1001 Tips for Buying and Selling a Home.”
As an added benefit, he notes that many agents maintain a database of reliable contractors.
“They’ll help you find people who will do your projects smoothly, within your budget and on time,” Nash says.
-- Restrict renovation projects to neighborhood norms.
Tom Early, a longtime real estate broker and past president of the National Association of Exclusive Buyer Agents (naeba.org), says current buyers won’t pick up the tab for any renovation work that raises a property above neighborhood standards.
“You can’t fool them into paying a premium for an over-improved home,” Early says.
What sort of upgrades constitutes “over-improvement”? For example, you wouldn’t want to install high-end designer light fixtures in a neighborhood of starter homes. By the same token, you wouldn’t want to construct a three-car garage in a neighborhood where most houses have no garage at all.
-- Cancel projects that prove too expensive.
If you think your contractors are going over the top, Nash says it’s better to cancel projects before they’re finished than to overspend on work that will cost much more than expected.
As Nash points out, real estate agents often recommend the use of less expensive products than are suggested by contractors. For example, you don’t need to spend your money on top-of-the-line carpeting when a mid-level grade will do just as well. Or you might wish to opt for generic hardware in your kitchen and bathrooms rather than ultra-stylish hardware.
“It’s true that bailing out of work with a contractor can cost you a penalty. But doing so might still be the wise course if a project has become too ambitious,” Nash says.
-- Avoid rushing the renovation process.
As Nash notes, many sellers realize too late that a thoughtlessly executed remodeling program can hit their wallet hard. That’s why he recommends you write on an index card the basic elements of a well-thought-out plan. Then have that index card handy as a reference guide when contractors come over to do estimates.
“Don’t let the contractors dissuade you from your goal of staying within your budget. What you need is a sound plan. Then stay true to that plan until it’s all done,” he says.
(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)