3 Crucial Steps of the Home Prep Process

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Home prep and staging your home are essential steps in the home selling process. The ultimate goal is to make your home more favorable to buyers. First impressions go a long way in the real estate industry, and a poorly staged property will turn away many homebuyers. The same is true for a home that is need of significant repairs. If you are preparing your home for sale, here are three crucial steps of the home prep process.

Don’t overspend on staging

Staging is an investment. In most cases, a home seller will need to spend some money to stage their home. However, as stated before, you don’t want to go overboard when prepping your home for sale. While staging is important, you do not want to obsess over minutia details that going to cost you to lose money.

Only make unnecessary repairs

There is no reason to break the bank on unnecessary repairs. This is where many home sellers go wrong. They think they will recoup all investments made on repairs; however, this is not always the case. A good rule to follow is to repair any known mechanical or structural issues with the home. This will make the home significantly more favorable to buyers and should help your home sell faster.

Declutter every room of the house

One of the first steps home sellers should be to remove clutter inside of the home. Clutter not only will make your home look messy, but it makes rooms appear smaller in pictures. When it comes to home staging, it is in your best interest to limit the amount of clutter and stick to the essentials. For example, a bedroom should feature a few pieces of furniture (bed, nightstand, bureau) and only a few decorative pieces, like a vase of flowers or a picture or two.

HUD Foreclosures

HUD foreclosures and VA Foreclosures are some of the best homes to buy when price is part of the equation. As with most Americans, price is always a concern. If not buying the same house for less, why not buy more house for the same dollar invested? When looking for a good deal it is hard to do better than the VA or HUD foreclosures market. The simple truth is that there are just more VA and HUD homes on the market, as they represent such a large number of mortgages that are generated each year. This translates into more foreclosures just by the magnitude of difference between all others comparing to the two largest.

The two largest also being government owned and operated means that they have less time to wait to make money back on the home. The FHA is especially known for selling HUD homes for less than the average sales price in a given area. FHA foreclosures represent a fraction of HUD but they are still a significant number of homes and both should be considered.

VA (Veterans Administration) and HUD (Housing and Urban Development) have different and unique opportunities for the buyer. Both are often forgiven for the local taxes normally associated with the purchase of a home (this is on a county by county basis). Be sure to ask the local title company or escrow company to look into it for you before closing as this is often missed due to their are not used to dealing with the 2 to 3 percent of the market that VA and HUD foreclosures represent.

Foreclosure Listings Increasing

As the market settled after the mortgage meltdown foreclosure listings also settled and fewer homes were on the market with a placard reading “Bank Foreclosure” in big red lettering. This was a good thing for the entire real estate market. Having an abundance of foreclosures brings the entire market down and it makes it harder for home owners, who would like to move, to get the appropriate price for their home as a similar home down the same street was sold for substantially less and the appraiser is using the foreclosure as a comparable sale.

This is just one of the problems when there are too many foreclosure listings in any area. Another issue is the television set that sits in everyone’s living room harping about the price of homes based on the number of foreclosures and this constant barrage of negative information makes most people sit on the sidelines waiting for the market to either implode completely or to correct itself. Meanwhile while they wait, others are buying foreclosure listings and making great investments.

Whatever the reason, a market can only handle so many foreclosure listings at any given time. The more foreclosures, the lower the market gets and this is a lesson the banks that were foreclosing and selling off realized too late. The market and their investments would have been better off if there had not been a rush to divest themselves of the toxic assets made more toxic by their own actions.