Inexpensive DIY Home Improvement Projects to Tackle this Weekend!

Home improvements are a revolving door process. As soon as the roof is replaced, the kitchen is outdated or the floors need a facelift. When buying a previously owned home, it’s more or less expected that repairs, upgrades, or improvements are going to be needed, but most homeowners (especially first-time homeowners) are completely unaware what these projects cost. Are new windows $1,000? $10,000? $30,000? What about appliances? Paint? Will your steal of a deal fixer upper end up costing you more than a brand new home?

Likewise, this can be confusing for people who are selling their home. Many sources will tell you that some upgrades can help raise the list price of a home more than they cost, but which ones? How much is too much to spend on a home that will be up for sale?

Many of these questions vary based on location, home type, market strength, and so much more. Weighing the pros and cons and talking to a knowledgeable real estate professional is always a good idea when considering upgrading before selling or buying a fixer-upper. Here are some general guidelines for basic projects to consider before buying or selling a home.
 
Under $30
 


 
Switch and Outlet Covers
Cracked or yellowed light switch and electric outlet covers cost about $1 a piece and make a world of difference. If the decor of the room is more specialized, consider spending a bit more to find one that will fit the room better.
 

 
Cabinet Hardware
Fully renovating a kitchen is time consuming, costly, and may be a waste when selling if the buyer has a different style in mind, but small tweaks can be made to refresh the space. If the plan is to refinish the cabinets entirely (a more expensive option than just pulls, but still less expensive than new cabinets), there’s no need to pay attention to existing style as the holes can be filled and painted over. If replacing to sell, the best option will be to find an inexpensive, modernized version of what is currently installed.
 

 
Replace Light Bulbs
Homes lighting is a bit of a Goldilocks dilemma, it shouldn’t be so bright that it looks like office fluorescents or so dim that it feels like a dive bar. Light bulbs come in a variety of brightnesses, tones, and styles so it’s easy to end up with a little of this, little of that all around the house, but this tends to look sloppy. While it’s okay to have cool lighting in one room and warmer lighting in another, be on the lookout for this mix-and-match style in the same fixture or burnt out bulbs anywhere and exchange them.
 
Under $100
 

 
Blinds
Blinds can run the gamut from really inexpensive models found at most big box stores to very expensive custom ordered versions from window covering retailers. If the goal is to simply improve the home, buying some inexpensive blinds is the way to go. Pets, kids, and dust tend to wreak havoc on blinds causing them to break, discolor, and generally not look great after some time while new ones brighten up the whole room. One thing for sellers to note, blinds are considered fixtures and need to be left in the home when selling (unless specified in the sales contract).
 

 
Light Fixtures
Light fixtures can be the focal point of a room and getting a new one can change the feel of the space. Brass accents may be making a comeback in the interior decorating world, but the shapes are different than the 90s version hanging around most homes. Replacing glass ruffle-edged fixtures or chain link chandelier with a more simple and modern fixture will.
 

 
Touch Up Paint
While a fresh coat of paint is great if it’s in the budget, when money is tight, a bit of touch up work will do. Pay attention to the areas that receive the most wear: near light switches, behind couches, chairs or headboards (look for the wear marks), and on walls that have inconsistent sun exposure (think places that had photos or tv mounts).
Keep in my that if the walls are boldly painted and/or badly in need of fresh paint, it might just be best to cut corners elsewhere and paint the entire room.
 
Under $250
 

 
Floor Steam Cleaning
In most cases, flooring is an expensive undertaking whether it’s new carpet, laminate, or hardwood. Unless the carpets are absolutely unlivable, this high ticket renovation can wait for a bigger budget or a new owner. This is especially true if the current carpeting is in relatively good condition, but simply out of style (looking at you, wall to wall shag!) In these cases, a good deep cleaning can help bring out the best and eliminate smells. Steam cleaning can be done on many types of flooring and the machines can be rented from most home improvement or hardware stores.
 

 
Revamp Your Outdoor Space
What a home needs in terms of landscaping can be very subjective, but generally, if the shrubs are overgrown and looking like they’re about to take over, it’s time to do some trimming. If there’s a pool it should be cleaned and maintained (or at least not green), if there’s a paver patio the blocks should be level enough to not be hazardous. The goal with this is not to create a perfect dreamy oasis (although go for it, if that’s the goal!), but rather to eliminate liabilities, hazards, and eyesores. The rest can come in time.
 

 
Remove Popcorn Ceilings (and/or repaint)
This one is so key that it made the list twice. If the funds are available, fully painting the interior of a home has some of the best return on investment and helps a new homeowner feel at home. For those looking for an even bigger impact (or for those who are just gluttons for punishment), removing popcorn ceilings can add value to the home, help it appear to a wider array of buyers, or instantly modernize an otherwise dated space.

#winwithrealtyhive: Northwoods Luxury

While many homes, especially starter homes, can fly off the market in a matter of days (sometimes hours!), others take a little longer. In fact, sometimes selling a home is a years-long process. Homes that are farther away from cities, bigger or more luxurious than average, or higher priced than other homes on the local market, may take awhile.

One of the recent RealtyHive success stories takes place under these exact conditions. Located only 20 minutes from the heart of Green Bay, Wisconsin was an immaculate home set on nearly 6 acres. The grounds were beautifully landscaped, a large outbuilding added to the appeal, and crowing this jewel was a large indoor, in-ground pool—a truly unique feature in this market.

The home had been purchased at the depths of the Great Recession in 2009 for more than $60,000 less than the tax-appraised value at the time and at an impressive discount from what the home was worth nearly a decade before.

In 2011, the home was traditionally listed with a local real estate agent for $599,900– more than double the purchase price only two years prior. This price and the tactics used by the agent at the time failed to entice any buyers and the price was reduced to $549,900. This reduction failed to bring any legitimate offers to the table and the homeowners decided to sit on their investment for a bit longer.

By 2016, the real estate market how almost entirely rebounded from the lows of 2009, but the luxury home market in the northeastern Wisconsin area was still sluggish. The home was again listed, this time with a different real estate firm and agent, for $649,900. After a review period on the market with little to no activity, the price was lowered to $599,900. This listing then expired and a sale wasn’t pursued any farther that year. It seemed as though the elusive $600,000 list price would not be reached.

In 2017, the homeowners were again looking to sell their home, but this time they weren’t interested in having the assistance of a real agent or adding to their home to the MLS. It was then that they heard of RealtyHive and decided to try it out.

Near the end of the year, the home was added to the RealtyHive marketplace– a time when sales tend to slow down thanks to the blustery cold of Wisconsin winters and hustle and bustle of the holidays. While there was some interest, it was the beginning of 2018 when the excitement began. Thanks to the exposure brought by the RealtyHive marketplace an offer was accepted. The final sales price? $625,000! In the many years of being on and off the market, this accepted sales price was higher than many agents had listed it at and was reached in less than 6 months on the RealtyHive platform.

To learn more about how the RealtyHive platform can help you sell your for sale by owner home, click here.

inspection inspector appraisal assessment

Appraisal, Assessment, Inspection: What’s the difference?

There are a lot of terms in real estate that are very industry specific. Whether you’re working with an agent or buying/selling on your own, it’s wise to have at least a basic knowledge of the process and terminology.

Among the terms that cause the most confusion for homeowners is home appraisal, property assessment, and home inspections. While these all involve a person coming into a home to form a professional opinion, these are done by different people and can have different results.

hand holding the word loans

Things They Don’t Teach in School: Home Loans 101

Before you start looking at what’s on the market and dreaming of paint colors, it’s important to figure out how you’re going to afford a new home. When it comes to getting financing, there are a ton of case-by-case scenarios so it’s important to talk to a professional about how much you can afford, what payments and terms are like, and more, but it helps to have a little background information.

When you begin to dig into your options, it’s important to ask about things like interest rates, whether they’re fixed or variable, if there’s a penalty for paying it off early, and many other details. However, to get started, it’s good to have some background knowledge on your options.
 
Conventional Loan
AKA: Conforming loans, non-conforming loans, portfolio loans, sub-prime loans
Property Type: Single-Family Primary Residence, Second home, rental property
How it works: A lender such as a bank or credit union issues the loan without any government backing
Benefit of Using: Can have lower down payment, lower monthly payments, and higher loan amounts for people with good credit
Down payment: As low as 3%
Credit: Generally best for people with a credit score of 680 or higher
Income Requirements: Varies by lender
Prepayment Penalty: Varies by lender
Mortgage Insurance: Not generally required with down payment of 20% or more, lower than FHA mortgage insurance costs, and is usually able to be cancelled with equity reaches 20%
Tips:

  • Standard loan limits exist, but are higher than with FHA loan ie. $453,100 for 1-unit home and can vary based on area

 
U.S. Federal Housing Administration Loan
AKA: FHA loan
Property Type: Single-Family, Condos, Multi-Family, and Manufactured
How it works: Private lenders issue the loans, FHA provides backing. If homeowner doesn’t repay loan, FHA will pay lender instead.
Benefit of Using: Lenders are willing to make substantial mortgage loans in cases they normally wouldn’t because of FHA backing.
Down payment: As low as 3.5% — can come from gift money or seller help
Credit: Can have thin credit or history of credit problems. Two or three years after a financial hardship is typically enough time to qualify.
Income Requirements: No minimum is required, but you need enough to demonstrate the ability to repay the loan. High incomes aren’t disqualified as with some other first-time buyer programs.
Prepayment Penalty: None
Mortgage Insurance: Required
Tips:

  • Check with several lenders. Lenders can set standards that are more strict than minimum FHA requirements, so if you’re having troubles with one, check with another.
    Credit scores below 580 typically require more than the 3.5% down payment
  • There are maximum loan amounts set that vary by area. Find out what your local limit is at the HUD website
  • For people with low or no credit, FHA can be a great choice, but those with high credit scores may find better rates through a different program.

 
USDA Rural Development Guaranteed Housing Loan Program
AKA: U.S. Department of Agriculture Mortgage Program
Property Type: Owner-occupied primary residences
How it works: USDA backs a mortgage issued by a participating local lender, similar to VA or FHA loans
Benefit of Using: Help low and very low income applicants. Income thresholds vary by region, but with subsidies, rates can be as low as 1%
Down payment: 0%
Credit: Applicants with scores about 640 receive streamlined processing, but those with lower scores or limited credit history can still qualify.
Income Requirements: Varies by region, but generally only for low income applicants.
Prepayment Penalty: None
Mortgage Insurance: Requires upfront fee of 1% of total loan amount and mortgage insurance fee equal to 0.35% of the loan balance per year.
Tips:

  • USDA mortgages are designed to help those with the greatest need. This means individuals or families that are 1) without “decent, safe and sanitary housing” 2) unable to secure a home loan from traditional sources and 3) has an adjusted income at or below the low-income limit for the area where they live
  • Typically issues direct loans for homes with 2,000 square feet or less
  • Metro areas are generally excluded, but some opportunities may exist in suburbs. Rural locations are always eligible

 
VA Loan
AKA: U.S. Department of Veterans Affairs Home Loan program
Property Type: Owner-occupied single family, Condos, manufactured home, and in some cases new construction can qualify
How it works: VA loans are issued by private lenders and backed by the U.S. government
Benefit of Using: Only available to active duty military member and veterans, this program helps service members purchase a home without a downpayment or excellent credit.
Down payment: 0%
Credit: No official minimum, but borrowers typically look for a score of 620
Income Requirements: No maximum, but does have a unique “residual income” qualifier
Prepayment Penalty: No
Mortgage Insurance: Not required
Tips:

  • In most parts of the country, VA loans can be used to purchase a home worth up to $453,100 without a down payment. In high priced markets, this can be increased. See your area here.
  • Like other government-backed loans, lenders may have more stringent requirements than the VA requirements. Shop around to find the best option for you.
market lake

#WinWithRealtyHive: Selling in Stiles

Everyone in real estate is talking about how hot the market is. In many areas, single-family homes can barely hit the MLS before an accepted offer is reached, but that isn’t always the case. In areas with more sellers than buyers, selling a home can take weeks or months if not years.

That’s what happened to one couple in Northern Wisconsin. They custom built their home in 2003 on a nice parcel of waterfront land. In Wisconsin, waterfront property is easier to find than in other states, however, it does still demand a premium price. Knowing this, the couple held on to their investment until January 2015 when they felt it was time to sell.

They enlisted the help of a local real estate agent in January 2015, but after 163 days the listing expired and was promptly renewed by another agent from a different firm. The next agent had the home on the market for 123 days and the sellers decided to hold off renewing the property listing for the holidays. In this area, at this time the average property only took 116 days to sell so the sellers were beginning to get anxious.

In February 2016, they chose a local “celebrity” agent to represent their home. This agent was well-known thanks to an impressive marketing presence, but still, after 156 days on the market, the home did not sell.

Throughout this process, the sellers and their agents had been lowering the sale price. While any real estate agent worth their commission will pull information on comparable homes and help properly price a home, sometimes it can be hard. There are differences in layout, views, upgrades and more that can make a substantial difference in what a buyer is willing to pay. Still, having an improperly priced home can not only make for a difficult sale outright, it can further harm the ability to sell even with price reductions because of the unattractively high number of days on the market.

After more than one year off the market, the sellers decided to try once more to sell their home. They enlisted the help of Alex Ryczek, a Realtor® with Micoley.com to help. In addition to making sure the home was properly positioned to sell with staging and professional photos, Alex encouraged the seller to try something new: using the RealtyHive platform to market and sell their property.

The RealtyHive event marketing platform allowed Alex and the sellers to expose the property to a global audience in addition to having range pricing displayed. Buyers who may have been deterred from making an offer too far from the original list price were encouraged to submit offers by seeing this range pricing and it helped the sellers realize the true market value of their home.

In total the home was listed for 442 days before it was added to the RealtyHive platform. After that, it only took 99 days to receive an accepted offer that met the sellers’ needs.

Do you have a property that could benefit from the RealtyHive platform? Learn more by click here!

unknown island remote beach

Island Escape 101: Unknown Islands

Many travelers get a special thrill when they tell someone about their latest adventures and get blanks stares and questions of “Where’s that?” While many people travel to Jamaica (more than 4 million a year) or the Dominican Republic (more than 5 million annually), it’s not as often that you hear of travels to Montserrat or Guadeloupe. Here are some of the best Caribbean Islands you’ve never heard of!

marie-galante

Marie-Galante
Country: Guadeloupe
Location: Northeast of Venezuela
Language: French
Getting There: There are no scheduled flights from Guadeloupe, although charter flights are available in addition to several available ferries which take about 45-60 minutes from Pointe-à-Pitre or St. François in Guadeloupe.
Best reason to Visit: The beaches of this tiny island are nothing short of spectacular, but the three rum distilleries found here are not to be missed!

Providencia
Country: Colombia
Location: East of Nicaragua
Language: English Creole
Getting There: Getting to Providencia is a challenge. Personal boat travel or chartered flights are the best options. Flights (15 minute ride) and ferries (2.5 hour ride) are available from nearby San Andres island, which can be accessed by direct flights from various Colombian cities.
Best Reason to Visit: The remoteness of this island makes it a truly unspoiled Caribbean gem. From golden sand beaches to idyllic turquoise waters to friendly locals, this is is the Caribbean paradise that movies and stories are made of.

st johns saba island

Saba
Country: Netherlands
Location: East of US Virgin Island, South of Antigua
Language: English, although Dutch is common
Getting There: Easily accessed by boat and has 4 flights per day from Saint Maarten. Take off and landing are sure to be memorable experiences as the runaway at Juancho E. Yrausquin Airport is only 400m in length–reported to be the shortest commercial runway in the world!
Best Reason to Visit: The diving is world renowned and the dense vegetation and dramatic landscape made this the perfect setting for the original 1933 King Kong movie.

Montserrat
Country: Montserrat
Location: South of St. Kitts & Nevis, West of Antigua and Barbuda
Language Spoken: English
Getting There: 20 minute flight or 90 minute ferry ride from Antigua
Best Reason to Visit: Check out the buried city of Plymouth. For more than 300 years this was the capital of Montserrat until 1995 when it was laid to waste by a volcanic eruption. You’ll need a certified guide to take you as this is area is now in a mandated exclusion zone.

Esperanza Vieques

Vieques
Country: Puerto Rico
Location: Southeast of Puerto Rico
Language: Spanish
Getting There: Ferries run from the Puerto Rican mainland, but the best way is to take a commuter flight from one of four airports in Puerto Rico. No passport is needed for US citizens as Puerto Rico is a Free Commonwealth of the US.
Best Reason to Visit: A peaceful island full of beautiful beaches and with wild horses strolling through grassy meadows, this beautiful island caters to any travel taste from beach huts to fancy hotels. The real gem of this island, though, is Vieques’ dramatic Bioluminescent Bay, a lagoon full of microorganisms that glow purple-blue when disturbed after dark.

Wanting to make a more permanent island getaway? Check out the latest Caribbean properties on RealtyHive here.

bank building in a city

Streamlining the OREO Sales Process: 2018 Market Update

According to information made available by BankRegData.com, the value of OREO property held by U.S. banks has been falling from $17.51 billion in Q2 2015 to $8.45 billion by the end of Q4 2017– a change of more than 50%!

While the overall market climate is changing, it is worth noting that the pace is not the same everywhere in the country. According to data provided by RealtyTrac and their parent company, ATTOM Data Solutions, foreclosure rates for the entire United States stand at 1 in every 1,776 homes, while New Jersey clocks in at the highest with 1 in 605 homes and South Dakota boasts the lowest foreclosure rate at 1 in 11,082 homes as of March 2018. This tool shows the rate for each state in the nation.

With the waning of the foreclosure tides, it’s important to make the most of these assets and simplify the process of liquidating them. In the previous months and years, it may have made sense to have a variety of people and companies handling the onslaught of properties that were consistently streaming into the pre-foreclosure phase. This is no longer true. To simplify processes and consolidate services is to see increased efficiency and reduced costs and to do this, banks need an all-in-one solution.

One of the easiest ways to consolidate is to find a real estate company with experience in OREO distribution. It’s important to partner with a company that is able to work in most or all of the states where the asset properties are located. Real estate licensing requirements vary on a state-by-state basis so partnering with a single firm that can handle all needs will eliminate the backend processing and cost associated with having multiple vendors. If a bank is looking to offer these foreclosure properties in an auction setting, choosing a real estate firm that is also licensed as an auction house can further streamline this process.

RealtyHive offers these solutions to financial institutions throughout the country. From Maine to New Mexico, the Realty Hive team has more than 30 years of experience and has helped sell everything from multi-million dollar commercial buildings to small parcels of vacant land for government financial entities to local credit unions. See more here!

wooded forest land

How to Write Quality Listing Descriptions for Forest Land

Writing a description for a plot of vacant land can be trickier than writing descriptions for other types of real estate. With a home there are a lot of features to mention, basics like number of rooms and floors, amenities and upgrades like security systems and pools, and when all else fails you can fall back on good photos to really help your property stand out. When you have vacant land, it’s a whole new ballgame. Unless the land features some amazing views, you will be heavily relying on a stellar description–lest your whole listing be based on photos of empty fields or dense trees. Here’s how to make your forest land listings shine!

As with any listing you’re needing to write a description you’ll want to start by listing the features of the property.

  • Great hunting land
  • Next to Shawano Lake
  • Paved road access
  • Power at the road
  • Access at two spots (can access hunting stands based on wind directions)
  • Walking trails
  • Close snowmobile trails, other lakes and rivers
  • Managed Forest Law
  • Mix of old growth trees, oak and conifer swamp land
  • Old foundation near road

 
Make sure to consider possible uses. Is this land buildable? Zoned for commercial, residential, or recreational? While there’s nothing there now, you’ll want to advertise the property in a way that will speak to the most likely buyer.

With the features listed above, you can begin to form a picture of what this property is like. Use this to start to string together a story. With home or building listings you want to be concise and keyword heavy, but with land you get to be a little more poetic.

Country living and hunter’s paradise within a stone’s throw of the popular Shawano Lake. This property is the perfect location for the active outdoorsman or nature enthusiast. Land has old growth hardwood and cedar swamp areas–just the type of place you envision those trophy Whitetails hiding out. With paved road access to the land from two separate entry points and walking trails throughout, you’ll be able to avoid detection while you slip into your hunting stand or blind.
 
This property is conveniently located from Shawano, Green Bay, and Appleton, Wisconsin– perfect for day trips, but a small residence is able to be constructed on a pre-existing foundation near the road to suit your lodging needs. When you’re not hunting, you’ll find excellent fishing, ATV and Snowmobile trails in the area making this a haven for year-round recreation.

You’ll also want to know about any potential incentives with this property. In some states or regions, the Department of Natural Resources has programs that incentivize landowners to selectively manage their forest and wildlife populations, and these programs can mean tax incentives for owners and purchasers. If the property is part of a managed forest land program currently, there may be a reapplication or transfer forms that will need to be filled out by the buyer.

Bonus Tip

Selling land can be very exciting, but also a test of your marketing skills. Having a great description, quality photos or videos, and knowing the right platforms to share your information on will help you achieve selling success.

How big of a home do you really need?

According the the U.S. Census Bureau’s 2016 Characteristics of New Housing, of the 738,000 new single-family homes completed in 2016 the median home was 2,422 square feet, nearly 1,000 more square feet than a home built 50 years prior! Homes in the United States have been getting larger and more spacious, but all that space comes with some downsides as well. As the population continues to age and prices on everything from building materials to cleaning supplies continues to rise, if you’re in the market for a new home, it may be a good idea to consider how much home you really need.
 



 
Requirement: Private Space Needs
Having a family of five move into a two bedroom home may be a challenge that leaves everyone a bit too close for comfort, but having too much space can be a problem as well. While it’s a nice idea to have a little extra room for guests, it’s important to balance that desire for space with the practicalities of maintaining a large home.

Consider: Try looking at different home layouts. If you like the idea of extra bedrooms because it creates a privacy buffer, try looking at a split home design where the bedrooms are on opposite sides of the home. Likewise a split level may offer you the same privacy without adding a lot of costly extra square footage.

 


 
Requirement: Shared Space
Homes with both a family room and living room or parlour/den/reception room have come and gone many times in home design. Some homeowners value the space this adds, as it allows entertaining for multiple groups at the same time, while others seldom use it.

Consider: If you’re the type of person who enjoys alfresco dining or reading on the porch, look at homes that make the most of outdoor spaces. You may be able to shave off some space (and the money involved with it) by finding a home that has the shared space you desire in an outdoor or semi-outdoor setting.

 


 
Requirement: Easy Maintenance
Whether you’re looking for a seasonal home or just wanting to ease your choreload, downsizing might be the way to go. Large homes, while beautiful, have more area which means more space to dust, vacuum, and repair. It also means more wear and tear on systems such as furnaces or air conditioners that have to work harder to heat and cool larger spaces.

Consider: Maintenance is a fact of homeownership. Looking for homes that are well-built and have newer fixtures can help to lower this cost (as will buying a home warranty at time of purchase), but there’s no guarantee you’ll be in the clear.

 


 
Requirement: Low Monthly Cost
In many places, the cost of owning a home is less than renting, even when taking mortgages and maintenance into account. While the price of a home is based on a variety of factors, higher square footage does tend to drive the monthly (and overall) price up. A larger home will also require more cleaning supplies, more furnishings, and more upkeep which can add to the overall cost.

Consider: In real estate, there’s typically a pick two scenario between home size, location, and price. If you’re wanting a large size in a great location, you’ll have to pay a premium price. If you’re wanting a great size and price, you’ll have to be flexible on the location, and so on. If price is a key decider for you and the location isn’t negotiable, you’ll probably have to consider a smaller home.

Beautiful and functional homes come in all shapes and sizes. By choosing a smaller home you may be able to save yourself the costs and hassles typically associated with large homes.

Curious to see the size of a new construction home the year you were born? Find out with this cool tool!

hands with laptops and papers

#WinWithRealtyHive: Avoiding the Price Reduction Talk

The Endowment Effect, sometimes called the Ownership Effect, is a psychological and behavioral economics principle that says people attribute a higher value to things they own simply because they own them. An excellent example of this effect in action is at rummage or yard sales. Instead of pricing something according to the actual market value an item may have, the item is instead priced higher simply because of the attachment the owner has to it.

Nobel Prize-winning economist Richard Thaler teamed up with two co-authors in a now-famous experiment detailing this exact phenomenon. In the experiment, the researchers gave half of a group of students a coffee mug, while the others were given pens, and then opened a market in mugs. Students who were randomly given the mugs regarded them as twice as valuable as those who did not get a mug.

As a real estate agent, it’s an agent’s job to help clients get the best price for their home. Understanding the psychology behind why people act and believe as they do can help to explain why a homeowner believes that their outdated home is worth more than it really is, but it doesn’t make the conversation about price reductions any easier.

In cases where the property has been on the market for a long period of time or is just slightly in a higher price bracket for search results, it might be easy to suggest a price reduction to an owner, but when that’s not the case, what’s a person to do?

One of the ways to avoid this difficult discussion is to introduce the seller to the concept of range pricing in an auction setting. This range pricing can help introduce a lower price point for the listing without making the owner feel as though they are losing out. With a suggested opening bid at or slightly below the actual fair market value, the listing will be more attractive to more potential buyers, the actual market value will be established during the auction, and in a reserve auction, the seller still retains control of whether they choose to complete the transaction. If they choose to sell to the highest bidder, it’s a win for everyone, but if they don’t this can lead to an easier discussion about proper pricing and current market values.

Want to learn more about how you can use the RealtyHive platform to avoid price reductions for your clients? Learn more here!