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4 Documents You Must Have During A Successful Home Sale

I Want To Know My Home’s Value!

I want to talk to you today a little bit about documentation, preparing to sell your multifamily property, any property in between two and 20 units. Typically, we’re talking about two and four units, residential property, but this also applies to larger investment properties as well. Documentation, getting ready to sell. What are you thinking about? What are the documents that you need to gather? I’m giving you right here is four sets of documents that your potential buyers are going to want to ask you about, your realtor is going to ask you about, so you might as well go ahead and get these documents prepared as early as possible.

The first set of documents that you want are your tenant leases and the rent roll. You don’t necessarily have to provide the actual physical copy of your leases to your potential buyers, but what they’re going to want to know is when did those leases start, when do those leases expire, and then the second half of that is what each tenant is paying. That’s a big part of selling a multifamily. It’s a big factor when potential buyers are buying multifamily, are am I going to be able to move into a unit? If one of the tenants are below-market rent, when does that lease expire and when am I now able to increase the rent. Making sure that you’re collecting that information, understanding when are your leases expiring and what each tenant is paying and being able to provide that information to your realtor, so your realtor can provide that to potential buyers.

The second set of items that you’re going to want to collect are systems warranties. Did you recently have the roof changed? Did you recently install a new heating system or a new AC system? Appliances, did you recently install appliances into any of the units within the buildings and are they still within warranty? That is adding value. If you are able to take those warranties and provide those to the new potential buyer and show this refrigerator was installed last year and it’s still under warranty, that is a great way to provide value, so you really want to go out and see if you can collect any warranties that you have from roof to heating systems to appliances, anything else. Systems maintenance. When was the last time that your heating system was serviced? If you have a good maintenance schedule in place, you should have been documenting that over the years and being able to turn that over to a potential buyer is going to create value and give the buyer a sense of ease knowing that the systems were maintained over the years. That is something else that you should be looking for in preparation for selling your multifamily house.

Last but not least, we live in Massachusetts and then throughout the country, 1978 lead paint law. Lead paint is no longer used after the year 1978, but within Boston and a lot of the areas surrounding us, these homes were built 1910, 1920s, so a lot of them still do contain lead paint. If you have lead paint documentation, if your apartments have been lead paint certified, this, again, creates a lot of value, creates a lot of comfort with your potential buyers and if you can provide that documentation right up front to show them that that’s not something that they don’t have to worry about any longer, they can now move children under the age of six in and not have to worry about the lead paint hazard. That is going to create a lot of value for you. It’s going to help you potentially get a quicker sale and for a higher sales price in making sure that you are also collecting that lead paint documentation as well. Four things, tenant lease and rent rolls, warranties, maintenance schedules, and then a lead paint documentation. If you provide those four sets of items, you should be in really good shape to get your property sold.

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Why Your Rental Property Is Worth $50k Less Than Your Neighbors

 I often get the question, “why is my property worth less than my neighbor’s? My neighbor’s house sold for,” in this particular situation, “$600,000. My house is listed at the same thing but I’m not getting the attention or it’s not moving as quickly as my neighbor’s home.” I am going to try answer that question really briefly. Hopefully you like my little graphic here. I am really proud of myself, able to put this together. Not that artistic so it took me a little bit. Hopefully it shows the point pretty clearly.

In this particular instance we’re talking about multi-families. We are talking about, in this particular model, two triple-decker side-by-side. Let’s assume all else is equal. They were built the same year. In the same condition. The tenant base is just as strong. All the systems are working just as effectively or efficiently as one another. All else being equal, the only thing that differs between these two properties is the rental income being produced.

In property number one in our example, you have three units. Each one of them is collecting $1500 per unit. Let’s assume they’re three bedrooms. In property number two, again, all else being equal, you have three bedrooms collecting $2000 a piece. The difference typically that we find between buildings that are almost identical selling for two different prices is the rental income that’s being produced. When buyers buy a rental property, when they buy a multi-family building, a lot of times their intention is to … and not a lot of times, most times, I would say all times, their intention is to collect as much rent as possible to help them reduce their expenses. A lot of times their mortgage qualification relies on the rental income that comes in to help them qualify for a larger purchase.

In this particular example, all else being equal, this particular model, this particular property is worth $550,000. This one is worth roughly $600,000 because of the differences in income. Often you have the seller of property number one saying, “well my house, I’m putting my house on the market and you’re telling me it’s worth $50,000 less than the house two doors down that’s almost identical to mine that sold for 600. Well I know my neighbor and I talked to my neighbor and they’re getting 600 for their property. Why is my house sitting on the market and it’s not getting the attention when we’ve listed it at the same price?”

Again, there are a lot of different factors that go into selling property. The condition, the atmosphere, maybe this person sold in a nice summer market and this is coming onto winter. The rental income is not the only factor that goes into the final price. A lot of times whether you’re talking about multi-family properties, especially the triple-deckers that we have here in New England, the rental income is a big factor and the more rental income that you have being generated by the building, typically the higher the sales price of that building compared to similar buildings.

The point we’re trying to make is more money increases value. More money equals more value. The second point is staying up with the market. Staying up with the market. Staying in touch with what’s going on in your local rental market. By that I mean, typically the reason that you find a difference between these two buildings and what they’re renting for is this person has had long-term tenants. Very good thing, but while these tenants were staying in place, this landlord never systematically went back and increased the rents. The thought process is, and again, to no fault of this person, it’s very common that this happens, is my tenants are great. They’re great people. They don’t give me any trouble. I just want to keep them in place and I want to keep them happy. I’m not going to touch the rent. As long as they’re paying the bills. It is paying the bills that I’m covered. I don’t need much out of it.

Ten years down the road, fifteen years down the road when they’ve gone … when it’s time to now sell, this person has kept up with the market, systematically said, “okay, the three bedroom apartments are now renting for $1800, now they’re renting for $1900.” As tenants move out and new tenants are being replaced, or the tenants that are in place stay there and he systematically increasing two, three percent over time to keep up with the current market rents. When it’s time for these two individuals to sell, they’re cashing out, they’re retiring, they’re moving on, they’re trading up, whatever it is, this person now, despite how nice he was to his tenants or she was to her tenants, over the years is now put themself in a tough situation compared to the person who kept up with the market.

At the end of the day, buyers are going to look at what the property is producing and say, “I’m going to make my determination of value based on,” not solely, but again, in large part on what I can get back. Even if I occupy this unit, we’re looking at it from an investor standpoint, even if we looked at it from an own occupant standpoint and we said we took away this rent, we took away this rent. I now have $4000 to help me with my mortgage. In now have $3000 over here to help me with my mortgage. I can actually not only afford to pay more according to my mortgage broker, but it makes sense for me to pay more for this stream of income. That is exactly what buyers are purchasing. A stream of income.

You as a seller should over the years understand that you want to be systematically raising your rents, systematically increasing your rents, not to be troublesome to your tenants but to make sure when that sale comes sometime in the future that you are prepared for it and that the value of your building has been maximized because the rents have been maximized.

I Want To Know My Home’s Value!

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How Long Will It Take For My Home To Sell?

What is your typical selling timeline and why it’s important to you as a potential seller? If you’re selling a property, you really need to know what’s the next steps and What am I looking forward to. How soon do I need to move out of this property? How soon do I need to turn over the keys to the new buyer?

That’s what I’m going to try to lay out for you. Hopefully it’s pretty clear through my timeline sketch here. When you first put a piece of property on the market and you tell your realtor, let’s go ahead and let’s sell this property, the first thing that your realtor is responsible for doing is marketing and selling the property. Your realtor’s going out and they’re putting the property on the MLS, on Zillow, on Trulia, these different marketing websites, they’re putting it on their own company website. They’re going out there and they’re doing open houses, doing private showings. They’re trying to find that potential buyer for you.

Once that potential buyer is found, and by found what we mean is, a potential buyer has seen the property through an open house, through some type of marketing venue and they’ve now placed an offer on the property. You realtor at the time of receiving that offer is going to come to you, they’re going to negotiate with the potential buyer on your behalf to get the highest sales price with the best terms possible. Once you, the seller, and that potential buyer have agreed to a price, agreed to terms, we call that day one. That is your offer to purchase day, that is the day that the offer, or OTP, has been accepted. That starts your timeline.

You have agreed to sell for a particular price, the buyer has agreed to buy for a particular price, which starts your 45 day approximate timeline. From there, in a typical situation your buyer is going to go into their 10 day home inspection window. Most offers are submitted with a 10 day, standard 10 day window and this allows the buyer to now enter your property, and to your tenant units and to, if it’s a multi-family enter the property to inspect the home with a licensed home inspector, with a contractor, to make sure that the systems are working, to make sure that the roof is okay, to make sure that the windows operate.

They’re going to do a full inspection to make sure that the property is truly what was being presented to them and it is in good working shape. At the end of that 10 day period, you can go with the buyer, it can go in a couple different ways, the buyer can say, I love the property and I want to move forward. That’s what we hope that the buyer does. The buyer can say, there were some things I didn’t really agree with at the potential property, this is not the right property for me, I’m going to back out of this transaction, or the buyer can say yes, I like the property but the price that we agreed to on day one, I don’t feel like that price is appropriate any longer.

The heating system is not working the way it should be, or it’s working but it’s much older than I anticipated. The roof is fine, but it’s much older, it’s 20 years into it’s life and is going to need to be replaced. The buyer has three options, either back out, move forward or renegotiate after that 10 day period. They’ve done their home inspection, let’s say hypothetically we’ve renegotiated and you both, the seller and the buyer, have come to an agreement on price. After that, you as a seller, the buyer, would both hire attorneys and you would go into what’s called the purchase and sales contract, or P & S.

What that does, it solidifies the deal and puts all of the offer information and the final price with the terms into a nice contract that the attorneys can use and it helps us move forward into the sale with a more concrete contract than the offer and purchase. The buyer is also going to put down a larger deposit this time and say yes, this is the property that I want, I’m now going to pursue my mortgage. You’ve had day one, you’ve had your home inspection period, we’ve renegotiated the price, we’ve gone and we’ve hired two attorneys, we’re gone onto purchase and sales.

The buyer is moving forward, the seller is moving forward. Now for you as a seller, from that day 15 to day 45, it’s about a 30 day window, I’ll describe to you a little bit about what the buyer is doing. The buyer in this particular situation is putting their mortgage together. They’re going back to the mortgage company and they’re saying, I found the property that I want, I’m submitting my taxes now, I’m submitting my other documents and the mortgage company is processing all that information to make the distribution, to pay you for the property and to put a lien on the buyer’s property.

You on the other hand, you as the seller, are working with your realtor to do three main things. One is the bank of the buyer is going to send out an appraiser to appraise the property to make sure that the property is worth the amount of money that you have agreed upon. Your realtor is going to make sure that the appraiser has access to the property and that the appraisal is properly done for the bank. The realtor, your realtor is also going to work with the local fire department to make sure that you have a smoke certificate.

Any time a property is being sold, the property needs to come with a certificate from the Boston or local municipality saying that the smoke detectors are in working order. Your realtor is going to help you cover that and you also have to get a final water reading. What are you paying for water bills, at the closing day you want to make sure that all your water bills have been paid and leaving the new buyer, the new owner of that home with a clean balance, a clean water lien with the local municipality or local water department.

Day one, day 10, day 15 and then finally we get to day 45, sometimes there is delays depending on holidays, sometimes it’s bumped up depending on if the buyer can submit their mortgage documents sooner but it’s typically a 45 day timeline from the time that you receive that offer to the time that you get to closing day. At the closing table you would exchange keys with the buyer, you would get the check from the closing attorney for the balance, assuming that your mortgage will be paid off, all the liens will be paid off on the property and whatever is left over you would receive as the potential seller.

Again, when you’re selling a property you typically have about a 45 day timeline from the day that you receive an offer, that offer to purchase is accepted to the day that you close and the new buyer is now the owner of that potential property.

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Color Psychology for Home Staging

Do you like one color over another? Do you feel a different way depending on the color you see? There is a psychological response related to color choices. It is based on the mental and emotional effects it can have on a person. 

Warm colors: instantly grab people’s attention (red). Use this to draw buyer’s attention to a positive feature in your home. Use as an accent color. Yellow makes a home feel warm and inviting. A little 

Cool colors: It is relaxing and creates a spa like feeling depending on the shade. Green provides balance as it reminds people of nature. 

Neutral Colors: breaks up colors to let the eyes rest. 

Whites: Feeling of cleanliness,purity

Black: Authority and strength

Grey: Timeless, practical and provides perfect background for any color. 

For more resources and tips on how to prepare your home for sale, please do not hesitate to contact us.

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10 Minute Room Transformation

Transforming your home to appeal to buyers does not always involve buying new furniture or expensive upgrades. This video shows that it can be as simple as decluttering and allowing natural light to enter. Buyers want to envision themselves in your home so your goal is to keep the room as simple as possible. 

Remove personalized items from the walls and tables

Remove throws, blankets, extra “Stuff” from sofas and chairs

Remove electronics that are not pertinent to the space 

Have a “catch all” bin to toss all the items you do not have a storage space for currently.

For more tips on how to stage your home on a budget, please feel free to connect with us online at contact@mandrellco.com or call us at 617-297-8641.

 

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Home Improvements and PERMITS

In this fast paced, high demand Boston real estate market, agents have to ensure they are doing their due diligence for everyone. Never assume the other side has completed their checklist of items. I want to share part of a situation that occurred with one of my buyers. We found their dream house and submitted an offer subject 2 the seller finding suitable housing (not sure I will be doing that again with first time home-buyers because the ball is in the seller’s court no matter how you look at it). That’s another story, but today, I will explain the OTHER issue with the home and ultimately why we walked away. The home was in impeccable condition and the buyers fell in love with the deck. Everything was great, inspector said home was in excellent condition and well maintained (kudos to the seller)… then comes the appraisal. The appraiser researched the property and discovered the sellers had extended the deck without permits. BIG NO NO Sellers!

If recent work has been done on a home, appraisers are expected to prove and document that the work had been properly permitted.  If the appraiser notes that a bath or in my case, a deck has been added and does not determine if proper permits were issued, the underwriter will request documentation to determine that the bathroom was installed legally. In our case, there was no documentation so the underwriter would not allow the purchase of this home. The only way my buyers were getting this house was if the seller ripped out the deck and rebuilt it with a permit. Needless to say… we walked away. (We did find another home but the process of the sub2 deal was daunting at best)

Sellers, please do things by the book so as not to delay the sale of your home or cost you money in the long run. If you are planning to sell and plan to be handy or have a “friend or family member” do some updates for you, please spend the extra money to obtain a permit.

The worst thing you want is that you spend thousands on adding a new bathroom/deck/finished basement and weeks before closing, the appraiser discovers you did not pull permits… guess what… you will be ripping out ALL the work you did and watch THOUSANDS of dollars go in the trash…this will also reduce the value of your home so add a couple thousand to the LOSS column.

 

If you are thinking of selling, call us today for a FREE no obligation consultationFREE no obligation consultation.

We prefer to make it a stress free process for you and help you avoid these hiccups that are totally avoidable.

 

 

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4 Surprising Predictors of Home Values

In our aggressive market, homeowners and buyers want to know where the market is headed. Are valuations heading up, up, up, making it the perfect time to buy? Or are they beginning a precipitous decline from their peak—making it high time to sell? To read the tea leaves, they might focus on the latest jobs reports, check out what’s going on in other markets, or scrutinize the writings of economists.

But when it comes to nailing the best deal in real estate, you can get a jump on the competition! Inside-track insights can be found in the most unusual places—such as on a grocery run, or at the gas pump. Realtor.com has rounded up eight surprising indicators of change in home prices. Do they play a role in pushing the numbers skyward or down into the dirt? Or are they false prophets? 

1. Gas prices

Sure, it feels fantastic to fill up your car with gas for just $35 when it used to cost almost $50. But if you’re looking to buy a home, the financial benefit of cheap gas might be overrated—as gas prices fall, home prices inevitably go up. And homes sell faster, too, which takes a toll on available inventory.

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For every $1 decrease in gas prices, home prices increase by roughly $4,000 and the average time to sell a property decreases by 25 days, according to a study by Longwood University and Florida Atlantic University.

Lower gas prices lead to increased consumer confidence and more disposable income for potential buyers, Longwood professor Bennie Waller explains. In addition, the listing broker—who has to travel between properties—is more likely to market more aggressively and have more showings when gas is cheap.

2. Trader Joe’s vs. Whole Foods

When it comes to healthy eats, cost-conscious gourmet market Trader Joe’s and pricey, environmentally conscious Whole Foods each have their own massive cult following. But it turns out, if you’re seeking a neighborhood where homes are worth more—and gaining in value—you’d better know which store to look for.

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Homes near the two foodie superstores significantly trump the national average home value, but homes near a Trader Joe’s are worth 5% more than homes near a Whole Foods, according to RealtyTrac

Homes near a Trader Joe’s also appreciate faster, with an average appreciation rate of 40% from the time of purchase. Meanwhile, homes near a Whole Foods appreciated 34%, the same as the national average. So even if you do tend to shop at “Whole Paycheck,” you’d probably do better to buy a home near TJ’s—and load up on some Two-Buck Chuck while you’re at it.

3. Sports facilities

Walking distance to the big game? Score! Living near a stadium clearly is not a hard sell for sports fans, but even those without an obsessive rooting interest in the local teams should pay close attention if there’s a major sports facility nearby.

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Moving a residential housing unit one mile closer to a professional sports facility increases its value by $793. But the effect disappears after four miles, according to researchers at the College of William and Mary and University of Alberta, who extracted property data within 5 miles of every NFL, NBA, MLB, and NHL facility in the U.S. So sidle up to that stadium—just be sure you have a dedicated parking space.

4. Trees on the street

Everyone knows that stately old-growth trees add major charm to a neighborhood—and are probably an indicator of more expensive homes. But did you know just how expensive? A recent study found that houses on streets where there were trees fetched an average of $7,130 more than houses on treeless streets. Maybe it’s time to consider branching out.

 

If you are interested in selling your home or want to know your property’s value, please contact us directly at 617-755-4938 or email at contact@mandrellco.com.

We look forward to serving you.

 

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It is no surprise Boston rents have skyrocketed it seems over night. Some areas have seen increases as much as 25 percent over the past few years. Salaries are not keeping up with the pace of housing costs. This fact hurts middle to low income tenants but provides great benefit to landlords and young professionals with cash to burn for convenience. 

The hub is one of the most expensive markets in the nation. Overseas investors purchase properties without seeing them, they simply want somewhere to park their money and earn a great return on that investment. The Boston market is ideal because we are the educational hub, young professional and business hot spot.

Not only do we have oversees investors, but also new investors who want to own a property and have tenants help pay their mortgage. In the short term, the owner’s “rent” is cheaper as tenants pay the bulk of the mortgage. In time, as property values appreciate and owners take advantage of the many tax benefits of owning real estate, it becomes a more profitable and solid investment. If the market crashes, your home may lose value as far of sale price but your income from the property is stabilized and you are not financially affected if you are a responsible landlord. 

In addition to owner occupant investors, we have young professionals who are looking to diversify their portfolio by adding a little local real estate. They do not reside in the property but rather use it as a generator of additional income. Boston’s market is very strong and has weathered most of the financial downfalls of the nation so it is seen as a more safe investment.

Jamaica Plain and Roslindale are hot beds for hipsters and young professionals, and investors know this. Adding amenities and converting triple deckers to condo units is extremely lucrative and they are cashing in on the trend. Investors can spend full price on a triple ($600,000), convert each floor to a condo and sell each unit for upwards of $400,000 each unit. 

The benefits of buying a multi-family is very apparent to oversees investors and becoming more popular with young professionals. If you are interested in purchasing or selling your multi-family, please email us at Contact@MandrellCo.com.

One of our multi-family focused agents will be in touch and can walk you through everything you need to know, whether a buyer or a seller.

Contact us TODAY: Contact@MandrellCo.com 

 

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PREPARE for Winter Now to PREVENT Freezing Later

It’s not too late. Although the first frost has settled on our cars, there’s still time to winterize your home. Instead of waiting for the extreme cold weather to blow in, now’s the time to get everything in order so you’re not stuck catching up on the first sub-zero day. Boston, especially areas with longterm owners such as Mattapan, Roxbury, Roslindale, Hyde Park and Dorchester are laden with older homes so updating/improving your insulation is paramount, especially after winter of 2015. 
Getting your  home prepared for winter is essentially a two-step process: first you need to seal off any leaks, and second you need to make it as efficient as possible so you’re not wasting energy. Let’s start with sealing everything off.
Seal Off Windows, Doors, and Everywhere Else

The last thing you want in the middle of winter is a bunch of cold air leaking into your house. The more cold air that comes in, the more energy you’re going to waste heating up your home. For many people-renters and owners alike-this is an incredibly simple process. Here are a few ideas:

Affordable and Non-Permanent Winterizing for homes and Apartments:

Insulate Your Windows: Your windows are the biggest place you’re going to feel cold air leaking in from. Thankfully, covering them up is easy with an insulator kit. All you need to do is wrap the windows with tape, place the plastic insulation sheets down, and shrink the sheet to fit with a hairdryer. If the window is too big for the plastic sheets, bubble wrap can do the trick.
Use Thick Drapes: If it’s especially cold in your area, you might also want to add a set of thermal drapes to your windows as well. These make the world of difference and help you identify leaks because drapes should not move if air is not entering from the outside. 
Seal Off the Doors: The draft from your door is also a big place for cold air to leak in. You can buy an actual draft guard if you want, make your own from foam pipe insulator, or just toss an old blanket in front of the door. The key is to simply make sure you’re not letting in cold air from underneath the door.
Seal Off Everything Else: Finally, make a quick run through of your house and see if you can feel cold air leaking in anywhere else. You can check attics, basements, and everywhere else. From there, block the air any way you can (safely). 
For more suggestions on how to you can make money saving insulation, reach out to us directly at contact@MandrellCo.com.

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Price to Sell and Still Make a Profit

Many people think selling a house is a piece of cake. You list for the price you want and the buyers come running, or scrambling to have a bidding war on your property. Truth is, bidding wars occur on homes that are priced accurately based on the current market. The asking price you set for your home significantly affects how much you will profit and how long your home will sit on the market. Our agents understand their markets and what’s selling- or not selling. This knowledge will be invaluable in helping you determine the price. The objective is to find a price that is competitive to receive immediate offers yet wont leave money on the table.

Here are a couple points to consider:

Time

Time is not on your side when it comes to real estate. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. The reason being, everyone rushes to see a new house on the market and if the market does not warrant your price, then they keep looking for the next house on the market. Because all these buyers passed on your home, now you are forced to decrease your price to draw in a new crowd at a lower price point or attract the previous interests with the decreased price. Once potential buyers see you decrease your price, their next thought is… how low will you go? On comes the low ball offers. Therefore, if your goal is to make money, think about a price that will encourage buyer activity.
Value vs. Cost.

Pricing your home to sell in a timely fashion requires some objectivity. It’s important that you not confuse value with cost – in other words, how much you value your home versus what buyers are willing to pay for it. Don’t place too much emphasis on home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants an in-ground pool or hand crafted railings. While there are people who really want these features and are willing to pay for it, you have now drastically reduced your buyers pool to those specific buyers. Quick real estate sales cater to the general buyer than a specific clientele because more people want what you have to offer. Dorchester is not ideal for a pool, but creating additional parking is a definite win, considering New England Winters.
Keep it simple.

Because time is of the essence, make it easy for the buyers. Remain flexible on when we can schedule showings.  Let’s Schedule a meeting, there are a lot of alternative options that can get you the most money for your home and accommodate your needs. It takes open communication, an open mind, flexibility and patience.
For more tips on selling your home and staging/decorating ideas, Be sure to connect with one of our agents in your area

 

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Key Facts to Selling Your Home (Part II)

In our previous post, we started discussing some key facts to selling your home. Today we will continue walking you through the home selling process. As we stated prior, there are several important facts to consider when working with your real estate agent beyond just listing your home and waiting for offers to roll in. Here we will review the remainder of the process to get your home to SOLD status.

Receive an offer.

Once we receive a written offer for your home, together, we will review the proposed contract, taking care to understand what is required of both parties to execute the transaction. At this point, you have three options: accept the contract as is, accept it with changes (a counteroffer), or reject it. Remember: Once both parties have signed a written offer, the document becomes legally binding. If you have any questions or concerns, be certain to address them with me right away.

Negotiate to sell.

Most offers to purchase your home will require some negotiating to come to a win-win agreement. Our agents are well versed on the intricacies of the contracts used in Massachusetts and Rhode Island and will protect your best interest throughout the negotiation process. Hyde Park is an up and coming neighborhood in Boston that new families desire as it provides a suburban feel in an urban environment. Helping buyers see this as a commodity in why they should move forward is one of our strategies. 

Prepare to close.

Once you accept an offer to sell your house, we will make a list of all the things you and the buyer must do before closing. The buyer will have the property formally inspected, and appraised, and again negotiate any repairs if necessary. If each procedure returns acceptable results as defined by the contract, then the sale may continue. If there are problems with the home during inspection, the terms set forth in the contract will dictate your next step.

Close the deal.

“Closing” refers to the day when proceedings for ownership of the property is legally transferred to the buyer. The Mandrell Company will be present during the closing to guide you through the process and make sure everything goes as planned.
Selling a home is an emotional experience whether happy or sad. We will be by your side every step of the way to ensure a smooth process and eliminate as much stress as possible.
For more information on how The Mandrell Company can help you sell your home in 30 days, call today: 617-297-8641!

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Key Facts to Selling Your Home (Part I)

When selling your home, there are several important facts to consider when working with your real estate agent beyond just listing your home and waiting for offers to roll in. Below is a BRIEF overview. For detailed outline of the process, please contact us.
Define your needs.

Write down all the reasons for selling your home. Ask yourself, “Why do I want to sell and what is my ultimate goal after the sale?” For example, a job opportunity in another city may necessitate your move, a growing family may prompt your need for a larger home or conversely children moving out may signal it is time to downsize. For your goals, write down if you’d like to sell your house within a certain time frame or make a particular profit margin. Together, we can map out the best path to achieve your objectives and set a realistic time frame for the sale.

Name your price.

Your next objective should be to determine the best possible selling price for your house.Currently, the Roxbury Market is booming, you want to price your home to get the most traffic.  Setting a fair asking price from the outset will generate the most activity on your home. We know what comparable homes are selling for in your area and the average time those homes are sitting on the market. Remember: You’re always better off setting a fair market value price than setting your price too high. Studies show that homes priced above their market value take longer to sell. If your home sits on the market for too long, potential buyers may think there is something wrong with the property. 
Prepare your home.

Most of us don’t keep our homes in “showroom” condition. If you have kids, at any given moment, it can look like a bomb exploded in your living room. The condition of your home will affect how quickly it sells and the price the buyer is willing to offer. First impressions are the most important. As your real estate firm, we can help you take a fresh look at your home and suggest ways to stage it and make it more appealing to buyers. We can provide feedback on inexpensive things if you are on a tight budget. You want buyers to envision themselves in “their new home” NOT Your current home.
Get the word out.

Now that you are ready to sell, we will implement the marketing strategy specifically designed for your home. There are many ways to get the word out, including: The Internet, Yard signs, Open houses, Media advertising, Agent-to-agent referrals, and direct mail marketing campaigns. In addition to listing your home on the MLS, we will use a combination of these tactics to bring the most qualified buyers to your home. We also host monthly seminars to help potential buyers get pre-approved to purchase a home. We cover a range of topics with the goal of helping attendees improve their credit, earn a higher income, and understand the home buying process from start to finish. We are also very active in and around the community. Our Roxbury real estate consultant Terrance Moreau can be seen mingling with community members in Dudley Cafe, speaking with home owners and providing feedback to homeowners because he is passionate about his community.

Be sure to check back for Part II of this series.

For questions, feel free to contact our office at 617-297-8641 or email us at Contact@MandrellCo.com.

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As the Seller, You Need to Understand Your Buyers

As the seller, you control three factors that will affect the sale of your home:
* The home’s condition
* The asking price
* The marketing strategy
However, it’s important to note that there are numerous other factors that influence a buyer. The more your home matches these specifications, the more competitive it will be in the marketplace. When The Mandrell Company represents you, we will advise you on how to best position and market your home to overcome any perceived downsides.

Factors Affecting Property Value
Location
Perhaps one of the most influential factors for buyers is something you can’t control: location, location, location. According to the National Association of REALTORS, neighborhood quality is the No. 1 reason buyers choose certain homes. The second most influential factor is commute times to work and school.
Size
Home sizes continue to increase but do not be dismayed… smaller homes typically appeal to first-time home buyers and “empty nesters,”or couples whose children have grown up and moved out. There is always a right way to market your home, no matter the size.
Amenities
If your home lacks certain features, you can renovate to increase its appeal, but be sure to consult your agent to ensure you are updating to what the typical buyer wants. Using market conditions and activity in your area as a gauge, we can help you determine whether the investment is likely to help or hinder your profit margin and time on the market.
Together, we can work together to make your home appealing to typical buyers and get you strong offers from DAY ONE!
Feel free to contact us today!

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 Do you need to sell your home quickly but still want to get top dollar during the sale? Even in good markets the average time a typical house takes to sell is about 3-4 months. And that’s homes in great condition.  Unfortunately, in today’s market, many homes remain unsold for much longer periods of time. Even immaculate move in ready homes sit unsold and often unseen, let alone homes in less than perfect condition.

Fortunately our company can help. We are associated with a group of private investors buying several houses each month in the Boston area and many surrounding neighborhoods. They are seeking properties regardless of size, location, condition, price and situation.

Are you and your property facing one of the following conditions?

  • Facing Foreclosure?
  • Skyrocketing Payments?
  • Divorce?
  • Inherited Property?
  • Missed Payments?
  • Bankruptcy?
  • Relocating?
  • Vacant Home?

Especially in today’s economy homeowners often get into situations where they need to sell a house in quickly. For many going the traditional route and working with a real estate agent, or trying to sell the home themselves “by owner” is the only option they’ve considered. This is fine in a strong market or if the home has a lot of equity where the homeowner can dump the property at a heavily reduced fee. But if this is not at scenarios a homeowner must look for different, faster alternatives.

If your property qualifies one of our investors can make you a firm written offer, usually within 24 hours. Because they use private funds they can pay cash and close quickly, at your convenience. Our company will often make the connection with these investor as no cost to you!

If you’d like to find out if your property meets our requirements call us and find out. We can be reached at 617-297-8641 (MA Residents) & 401-641-5774

 

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Let’s assume you have two identical multifamily buildings on the same street, in the exact same condition and built in the same year. The tenant quality for both properties is similar and both properties have the same monthly expenses.  The only difference between these two properties is the amount of rental income being generated. Both properties started out with rental income of $3000 ten years ago. The owner of property number one has consistently increased rents to match the rate of inflation and is now achieving $5000 in monthly income.  The owner of property number two has only raised rents a few time during the years and is currently collecting $4000 monthly. He’s always felt as if he didn’t need the extra funds to cover expenses then why be greedy and bother his tenants.

 Both property owners are now looking to retire soon and considering selling their investments. Both owners speak with the same real estate agent and try to determine an appropriate selling price for the buildings. The owner of property number one was given a likely sales price of $500,000 based the numbers he provided the agent. Owner number two was provide a potential selling price of $400,000 based on the numbers he provide the agent.

There is a 20% different between the $500,000 that owner two received and the $400,000 that owner two received. There is also this exact same 20% difference in the rental income they are achieving!

Nothing affects the value of rental real estate more than its rental income. It sounds obvious but not everyone fully understand how underachieving on your rentals can affect your investment long-term. In the above (very close to real life) scenario, both owners ended up selling their investments for very close to what their agent quoted them. From her consistent attention to local rental rates and steady trend upward in what she charged, the owner of property number one was able to achieve close to $75,000 more than property owner number two. Owner number two was able to achieve a better than expected sales price ($426) partially because the buyers saw potential to increase rents after purchase and get the property back to achieving at its highest point.    

 Note: not only did the first owner retire $75,000 richer…she also achieved roughly $20,000 in additional rental over the 10 year span they both owned their properties.  

$3000 Initial Rental Income * Annual Inflation Rate: 5.5%  

Year 1 : 3169.22

 Year 2 : 3347.99

 Year 3 : 3536.84

Year  4 : 3736.35

 Year 5 : 3947.11

 Year 6 : 4169.75

 Year 7 : 4404.96

 Year 8 : 4653.44

 Year 9 : 4915.93

Year 10 : 5193.22

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Understanding the true condition of your home prior to selling can obviously help you make an accurate evaluation of your property’s worth. Home inspections are traditionally done by the buyer once a sales contract is in place, but can also be done by the seller before the property is listed. A professional home inspection can allow the seller to identify and fix any problems before the home is under contract.

Often there certain repairs that may be missed by a homeowner but brought to light during a professional home inspection. There are also some cases where repairs or upgrades must be done according to local laws. This is especially true when dealing with Boston’s older stock of homes. A good home inspector will help you discover these repairs and avoid any them from slowing down or breaking up a sale.

It’s always better to know the true condition of your home prior to determining your listing price. If a pre-listing inspection is not done, and an issue arises during a buyer inspection, it can put the sale on hold or at risk if the buyer determines it is something of significance. By taking a proactive approach and getting an inspection, you can identify and make any repairs ahead of time, saving yourself headache and possibly preventing a qualified buyer from walking away during from a contract You will also make a better first impression with buyers when you have the property in top shape prior to their first visit. 

Though making repairs may sometimes seem like an unnecessary expense, these repairs, especially to the kitchens and bathrooms can really help you increase your selling price as well as assist in the speed of the sale. Many home sellers that are very familiar with the needed repairs in their property but have chosen to avoid them for various reasons. Once you’ve made the decision to sell, you can no longer afford to put off these chores.

Take your home inspection report combined with your knowledge of the property, and create a written list of what repairs must be done vs. those that could be done. Preference should obviously be taken to those repairs that must be done and only once those improvements have been made should you consider any other work. Your Realtor can also help you uncover quick and inexpensive improvements that could be done before the home is listed and may also be able to put you in contact with good local contractors.

Not every home needs to be in mint condition to sell, but many times these small improvements will help you justify a higher asking price and gain an edge over the competition.  

 
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