UNDERSTANDING POCKET LISTINGS IN REAL ESTATE

Have you ever noticed new owners moving into a home you didn’t even realize was for sale? 

Have you ever wondered why some homes only appear on the market for “one day” in MLS databases? 

It’s time you understood what a “pocket listing” is in real estate.

Not every home sold gets a shiny new for sale sign out front. Some change hands quickly and quietly without any public advertising whatsoever. In the industry, these are known as “pocket listings.” Pocket listings are sometimes referred to as “coming soon” listings or “whisper” listings.

Pocket listings used to be the domain of the very famous or the very wealthy. People who liked to protect their privacy would typically work with an agent who could find a buyer among word-of-mouth networks of agents representing high-end buyers. Often this happened only in urban areas or in the luxury segment, but now in markets where inventory is tight and bidding wars are not uncommon, pocket listings are becoming somewhat more mainstream.

You might ask yourself: Why not advertise a home in a market where multiple offers are the norm? It can depend. In some cases, the seller may want a quick and painless sale, and would prefer not to go through the traditional process of cleaning, curb appeal sprucing, and open houses. When the seller’s agent happens to know the buyers directly, often a simple walk-through with prospective buyers is enough to secure one acceptable offer.

Sellers should understand that it’s possible for a pocket listing to generate a slightly lower price. While it’s not always the case, the trade-off for a quick, quiet sale may be worth it. If you’re considering a pocket listing, you’ll be asked to sign something which indicates your consent to avoid a wide-scale advertising effort. An agent has a responsibility to try and secure a seller the best possible price, and will want to make sure there’s a clear understanding.

One slight marketing advantage the pocket listing retains is the idea that buyers are getting special access to a property others will never know hit the market. For the seller, a pocket listing can also prevent the unfortunate experience of having a home’s value decrease because it sat on the market too long.

On the whole, casting the widest possible net for a buyer is the best strategy for securing the highest closing price, but if you’re more comfortable with a quick and quiet approach, you might want to talk to an agent about the prospect of a pocket listing.

Thinking of selling, but would like to have a conversation before you commit? Get in touch with me today: valerie@valeriemcconville.com

VIRTUAL HOME STAGING: PROS & CONS

Staging a home can be a great way to help buyers visualize the potential of every room and help sell your home faster. But if you’ve ever had concerns over staging costs, you may be interested to learn about a new trend in staging: Virtual staging.

When it comes to marketing and selling a home, staging can be a powerful tool. Some may argue that home staging isn't worth the cost, but there are many good arguments for making the investment in a professional home stager.  Staging not only helps a home sell faster in many cases, but it can also boost buyer desire for a home, resulting in a potentially higher closing price. What’s more, a commitment to staging can prevent you from procrastinating when it comes to decluttering. (After all, you need to have a nice clean canvas for a staging expert to work with.)

Now, though, some agents are turning towards virtual staging. Virtual staging, broadly defined, is the use of computer imaging technology to create realistic listing photos which display a staged home, even though the property itself is not actually staged. Photos of empty rooms are transformed through 3D modeling and photo editing. The results can be quite impressive.

Proponents of virtual home staging say the benefits are obvious. Not only is it less expensive than traditional home staging, but it can also be completed in less time. Stagers, on the other hand, feel the practice is somewhat deceptive. The main argument seems to be that buyers will be disappointed when they arrive at the empty home after seeing staged photos online.

Clearly, stagers don't want to see their business undermined by virtual competitors, but do they have a point? Are buyers put off by empty rooms after seeing virtually staged properties online? Is this disparity between staged online and empty in real life a deal breaker?

It might depend on your philosophy when it comes to staging. If your primary motivation is generating interest in the home online, you might want to go with virtual staging to create appealing photographs to drive more leads. If you want buyers to viscerally experience a home’s potential when they visit at an open house or walk-through with their agent, you’ll probably want to go for a traditional home staging.

In either case, it’s a good idea to view staging not as an expense but an investment, much like minor renovations you hope to recoup when the home sells for a better price. If you’re thinking of selling soon and would like to work with a stager, get in touch with me today. 

I can connect you to trusted professionals who will make your home look its best: valerie@valeriemcconville.com

FIVE QUICK TIPS TO GET YOUR HOME READY FOR WINTER

The winter months are quickly approaching, and it's time to prepare your home for the coming months. 

In fact, I'm including some quick tips for making sure that you and your new home are ready for the winter months ahead!  I hope that you find these tips to be helpful and useful.

Roof repairs: If you can safely get onto your roof to inspect for missing shingles or other factors that may lead to a leaky roof, now's the time to do it!  If not, call in a professional organization and have them take care of the rooftop work for you.

Seal it off: Inspect doors and windows to ensure that the weather-stripping is in good condition.  This will keep your house warmer and cozier in the winter months.

Hot stuff: Make sure that your heater and ventilation systems are in good working order!  Clean out accessible ducts and replace filters where necessary.

Chimney sweep: Creosote, a black substance that builds up in the chimney when wood is burned, can cause chimney fires.  Inspect your chimney for creosote and call a chimney sweep to keep your fireplace safe and functional.

Gutter check: Now's the time to clean out those rain gutters again!  If you want to do it yourself, make sure that you can safely access the gutters and then scoop out any debris, blast the drains clean with a high-powered hose, and repair any leaks you may find along the way.

To learn what else you can do to prepare your home for winter, contact me today! email: valerie@valeriemcconville.com

APPLYING FOR A JOINT MORTGAGE LOAN WITH YOUR SPOUSE

When you are ready to buy a home, applying for a mortgage is one of the first and most important steps.  

For married couples, this usually involves applying for a mortgage loan jointly.  This means that the loan will be in both of your names and you will be co-owners of the house.  

While it may seem like the obvious thing to do, there are a few situations when applying with only one name might be wise.  Here are a few tips on joint mortgage applications.

Is Your Credit Looking Good?

If one of you has a poor credit rating, it could strongly affect your chances of qualifying for the loan and will definitely raise the interest rate even if you do qualify.  If the person with poor credit does not make a large sum of money and their income is not required to qualify for the loan, it might make more sense not to apply jointly.

Employment Doesn't Matter

If one of the partners is unemployed, a stay at home mom or dad or homemaker, or for any other reason, they won't have much impact on the amount of money you can qualify for.  That doesn't mean you shouldn't apply jointly.  First of all, marriage is a partnership, and having the home in both names gives a feeling of equality even if one person makes the income.  Secondly, the person with no income might still have a very good credit rating, making it easier to get the best interest rate!

A Financial Commitment

When you apply for a home loan together, you are connecting yourselves financially in a major way.  Joint mortgage loans aren't just for spouses; many life partners also purchase a home together.  Just be certain that you are committed to the relationship before you sign mortgage papers.  It can make things very complicated later if you don't.

A joint mortgage is usually a good choice for any couple, because you can combine your income to get approved for a larger mortgage or a better rate.  Just bear in mind that there are situations when you are better off keeping the loan in one name only, mainly for financial reasons.

USING YOUR FIREPLACE SAFELY

A fireplace is a great feature in any home, and can create that warm, homey feeling on a cold winter evening that every homeowner dreams of.  Whether you have a gas fireplace or a wood-burning fireplace, there are a few important precautions you should take and safety measures to follow every time you use your fireplace.

Keep The Fire Contained

Especially if you have an older home, you should verify that the fireplace and hearth are up to code.  The hearth is required to be a certain size to prevent sparks or embers from the fire hitting the carpet or wood floors and starting a fire.  You should also ensure that you have appropriate metal doors or a mesh curtain that will keep the fire and any sparks inside the fireplace itself.

Keep anything flammable away from the fireplace, including paper, blankets, furniture, or anything else that could easily catch fire.  If you have a wood-burning fireplace, keep the wood in a spot where a stray spark or ember won't reach it.  The same goes for kindling or anything you use to start the fire.

Maintaining The Fireplace And Chimney

In a wood-burning fireplace, a substance known as creosote can build up on the inside of the chimney, putting you at risk for a dangerous chimney fire.  Every year before the winter season begins, you should have a professional chimney sweep clean out your chimney.  They should also inspect everything to ensure your fireplace is functioning properly.  Be sure to clean out ashes and soot from the fireplace regularly; this is recommended every time you use it.

Even with a gas fireplace there is some maintenance to consider.  You should have a chimney sweep perform a yearly inspection and cleaning of the inside of your fireplace, especially in hard to reach places like the fan.  They should also make certain that the gas lines and ignition switch are working properly.

             

Fireplaces And Children

If you have children, use caution with your fireplace.  Never leave a child unattended in a room with a lit fireplace.  Be certain that lighters and matches are always kept well out of reach.  Before you start the fire burning season, sit down with your children and discuss the safety rules for the fireplace, making sure they understand the dangers.

Your fireplace can provide warmth and ambiance, and will serve you well for a long time as long as you take care of it.  Keep up on maintenance and ensure that everything is safe and up to code before you use your fireplace.

HOW TO HIRE A GOOD INTERIOR DESIGNER

What is interior design? As the name implies, it's all about designing a living area – such as a bathroom or basement – while taking into account your needs, tastes, and budget, as well as the characteristics of the space itself.

If you've ever sketched out an idea for a renovation – to add a wall, install hardwood floors, or paint – then you've done interior design, as least at an amateur level. Home improvement contractors, when they make suggestions about how to renovate a room, are also acting as interior designers.

According to the Association of Registered Interior Designers, "Interior Designers will analyze your needs and budget, prepare and present conceptual solutions and then manage the implementation of the project."

Although hiring an interior designer may seem like a luxury for many homeowners, it can actually be quite affordable. Plus, consider that your interior designer can manage your project from concept and design all the way through to a finished renovation – including managing the renovation work itself.

How do you find a good interior designer?

In Canada, check out Interior Designers of Canada at www.IDCanada.org. In the U.S., visit the American Society of Interior Designers at www.asid.org. Both websites have search tools to find qualified registered interior designers in your area.

A REALTOR® who is an expert in the local market can also give you a recommendation.

When reviewing possible interior designers, take a close look at their portfolios, which are usually in the form of pictures of completed projects. Consider the style of work they've done for other clients, as it is likely that’s what you can expect for yours.

According to an article in The Epoch Times by Lloyd Princeton, it's also important that you get along with the interior designer. You'll be working closely with that person. If you have a gut feeling that you're not going to like him or her, then you won't be satisfied with the result – even if the design is actually good.

DON'T FEAR A HOT HOMEBUYER'S MARKET

A recent survey of would-be home buyers revealed fears that the market is too hot, driving many people to sit on the sidelines. Don’t let “macro fears” drive your decision-making process. There’s still plenty of opportunity to find the right home at the right price.

If you’ve found yourself paralyzed by this active market, you’re not alone. According to a recent survey of 3,500 buyers, a whopping 58% of potential homebuyers are sitting on the sidelines because they’re afraid the market is too hot. Here’s a breakdown of their top concerns:

1. Affordability: Prices are rising or too high (27%)

2. There's too much competition from other buyers (17%)

3. There aren't enough homes to choose from (14%)

While it’s true we’ve seen a dramatic increase in market activity over the past few years, it’s important to remember that what you want isn’t necessarily what everyone else wants. Where you want to live and the type of home you want to live in isn’t necessarily subject to the “macro trends” in any given market situation.

Your dream home is as unique as you are, and the only way to understand what’s out there is to take the time to share the details of what you’re looking for with a professional who is tuned into the market. What’s more, an agent can help debunk market myths and keep an eye out for properties which fit your specific criteria.

Now is a good time to make a list of criteria for your next home. Begin with your “must haves” and move on to your “nice to haves.” Consider square footage, neighborhood, amenities, and your budget as you put together this list. Reflecting on this information will help you have a productive discussion with a buyer’s agent and also contribute to your understanding of “what’s out there” in your immediate market.

Often our fears turn out to be unfounded. If you’ve been letting your perception of the market stymie you from pursuing your dream, now is a good time to start a discussion with someone who can help you see the whole picture.

Questions? I’m happy to help you answer them! Get in touch today: valerie@valeriemcconville.com

[Survey source: https://www.redfin.com/research/reports/real-time-market-sentiment]