The Five Biggest Turn-offs For Homebuyers

A lot of sellers don't listen to their real estate agents, we'll tell you what your agent wants to say, but can't say to you and this is it – your agent can't get you the price you want unless your home is in pristine move-in condition.

That means no sticking drawers in the kitchen. No leaning fences. No rust-stained plumbing fixtures. We could go on, but maybe we need to make it clear. If you have even one of following "turn-offs," your home won't sell.

Buyers can get instantly turned off. Here are their five biggest turn-offs:

1. Overpricing for the market

2. Smells

3. Clutter

4. Deferred maintenance

5. Dark, dated décor

Overpricing your home

Overpricing your home is like trying to crash the country club without a membership. You'll be found out and escorted out.

If you ignored your agent's advice and listed at a higher price than recommended, you're going to get some negative feedback from buyers. The worst feedback, of course, is silence. That could include no showings and no offers.

The problem with overpricing your home is that the buyers who are qualified to buy your home won't see it because they're shopping in a lower price range. The buyers who do it will quickly realize that there are other homes in the same price range that offer more value.

Smells

Smells can come from a number of sources – pets, lack of cleanliness, stale air, water damage, and much more. You may not even notice it, but your real estate agent may have hinted to you that something needs to be done.

There's not a buyer in the world that will buy a home that smells unless they're investors looking for a bargain. Even so, they'll get a forensic inspection to find out the source of the smells. If they find anything like undisclosed water damage, or pet urine under the "new" carpet, then they will either severely discount their offer or walk away.

Clutter

If your tables are full to the edges with photos, figurines, mail, and drinking glasses, buyers' attention is going to more focused on running the gauntlet of your living room without breaking any Hummels than in considering your home for purchase.

Too much furniture confuses the eye – it makes it really difficult for buyers to see the proportions of rooms. If they can't see what they need to know, they move on to the next home.

Deferred maintenance

Deferred maintenance is a polite euphemism for letting your home fall apart. Just like people age due to the effects of the sun, wind and gravity, so do structures like your home. Things wear out, break and weather, and it's your job as a homeowner to keep your home repaired.

Your buyers really want a home that's been well-maintained. They don't want to wonder what needs to fixed next or how much it will cost.

Dated décor

The reason people are looking at your home instead of buying brand new is because of cost and location. They want your neighborhood, but that doesn't mean they want a dated-looking home. Just like they want a home in good repair, they want a home that looks updated, even if it's from a different era.

Harvest gold and avocado green from the seventies; soft blues and mauve's from the eighties, jewel tones from the nineties, and onyx and pewter from the oughts are all colorways that can date your home. Textures like popcorn ceilings, shag or Berber carpet, and flocked wallpaper can also date your home.

When you're behind the times, buyers don't want to join you. They want to be perceived as savvy and cool.

In conclusion, the market is a brutal mirror. if you're guilty of not putting money into your home because you believe it's an investment that others should pay you to profit, you're in for a rude awakening. You'll be stuck with an asset that isn't selling.

The decline in sales at the bottom end of the market is easy to explain. For homes and condos priced under $150,000, the number of sales fell from 203 in 2012 to 110 in 2013. The reason for that precipitous drop is that there were simply far fewer properties listed for sale under $150,000, unlike 2012 when the inventory of inexpensive homes and bank-owned properties was quite high.

The biggest gain in home prices occurred in the south valley, which had been hard hit by the Great Recession. For the year the median sales price of single family homes in Hailey and Bellevue rose 14 percent above the levels recorded in 2012. In the resort market of Ketchum and Sun Valley, median sales price of single family homes was up seven percent in the resort condo market, 183 sales were recorded in 2013, compared to 199 a year earlier. While the volume of sales in the condo market was down slightly, the average sold price was $297 per square foot. That’s a 21 percent increase from when the condo market hit bottom is 2012 at $245 a square foot, but still well off the peak set in 2007 when the average selling price of resort area units was $523 a square foot. For newer and larger condos listed for sale above $500,000, the annual gain in price per square foot was less. These units sold for 9 percent more in 2013, according to the Sun Valley Board of Realtor database.

At the top of the market, the sale of luxury properties listed for sale above $2 million declined significantly in 2013. There were 14 such sales in 2013, compared to 36 in 2012. At the same time, the number of Blaine County real estate sales between $1 million to $2 million climbed nearly 25 percent in 2013. As of mid-January 2014, there were five individual properties with list prices in excess of $3 million in escrow and set to close during the first quarter of this year. These five transactions will total over $20 million in sold volume.

Delta Air Lines will introduce jet service on its Sun Valley to Salt Lake City route beginning Jan. 6, 2014. The flights will be operated by Delta Connection carrier Sky West Airlines using 65-seat, two-class Bombardier CRJ-700 regional jets. Each aircraft is equipped with nine first-class seats, eight economy-comfort seats and 48 economy seats, as well as on board Wi-Fi.

Jet service from SLC to SUN!

The jets will replace the 28-seat Embraer 120 turboprop airplanes currently in use by Sky West.

According to a news release from Friedman Memorial Airport, the change to a larger aircraft will add about 3,100 additional Delta seats into Sun Valley in 2014, though with a reduction in the number of flights. The current schedule of six round-trip flights per day during the peak season and three daily flights off-peak will be changed to three round-trip flights during peak times and two flights during off-peak times.

However, Airport Manager Rick Baird said the change would be an enhancement to air service for both local residents and visitors.

“While the daily flight frequency will be reduced in the short term because of the increase in seat capacity of the jets versus the turboprops, we are optimistic this new aircraft, along with competitive fares and enhanced cooperative marketing between our community and Delta Air Lines, will encourage more people to fly (to Sun Valley),” he said. “And if we can fill these additional seats, we can continue to discuss additional frequency with Delta, because we know that is very important for our business and leisure travel market here.”

During a review process in 2012 to gain approval for regional jets to fly in and out of Friedman, airport officials said the jets would provide more reliable service in inclement weather and would be slightly less noisy than the turboprops.

VIEW FROM THE TOP

SVPN’s Justin Williams sat down with Dan Gorham, President of the Sun Valley Board of Realtors, (prior to the wildfire) to discuss the performance of the real estate market this summer.  Gorham is also a member of the SVPN board and managing broker of Windermere.

Q.  When reviewing the summer activity of real estate transactions, what has been the stand out news of the season this year?

For most price points, there’s a greater balance in the market between buyer demand and inventory available. There is one notable exception at the very high end, where the sales of properties priced over $2,000,000 has been sluggish through the first half of the year.. We are now seeing more activity in this price point as buyers have come to recognize there are some outstanding values available in Sun Valley, particularly when compared to other Western mountain resorts.

Q.  Inventory levels have increased over the same period (1400 for August versus 1100 for June) and transactions continue to build.  Are there any signs of price inflation in the market? Sellers appear optimistic about the future and less willing to negotiate steep discounts off of the list price. However, with the summer selling season winding down in the resort area, that could change in the next few weeks. Many sellers were overly exuberant in the spring, after reading various reports in the national press about strong growth in the housing sector. There’s typically a real estate reality check in September, but it all depends on the seller’s motivation level.

Q.  What price levels are selling the most in the market and how does this compare to last year. 

In 2012, we saw a huge increase in the sale of entry level homes priced below $200,000. The buyers were either first-time home owners or investors responding to the tight rental market. For 2013, we are seeing strong buyer demand in the mid-market, homes and condos priced between $400,000 and $800,000. Sales in that price point are up 33 percent over 2012 and the transaction count and dollar volume is double of what sold locally in 2011.

Q.  What’s happening with the median prices in the north and south valley?

The median prices changes regularly as new sales are added into the equation. But as of mid-August in the resort area surrounding Sun Valley, the median single family sale closed at $360 a square foot. Last year at this time the median in the resort area was $342 a square foot. That’s a five percent increase. But you need to be cautious with the median prices in the resort area, because all the homes, lot sizes and neighborhoods are so different. It works better in the south valley, where the neighborhoods are more consistent. The median price in Hailey as of mid-August was in the Woodside subdivision and it closed at $143 a square foot. In 2012, a similar Woodside home closed at $109 a square foot. So for the sellers who waited until 2013 to list their property, there net proceeds were nearly 30 percent more than what a similar home sold for in 2012. As the wags have always correctly said, in real estate, timing is everything.

Q.  Is there any correlation between activity in the large cities across the country and the valley?  Is activity 'trickling down'?

The answer depends upon whether you are talking about the primary or secondary market. The gain in large cities is driven by job growth and individuals purchasing primary residences. We are experiencing that in our sales of owner occupied homes, where buyers are taking advantage of low prices and favorable interest rates in the south valley. A second home in a resort community, is quite different, and it remains largely a discretionary buy, driven by personal choice and a love of the area.
 

United Airlines in December will begin daily, nonstop winter and summer flights between San Francisco & Friedman Memorial Airport.  The once-per-day United Express flights -which will be operated by Sky West Airlines-will use Canadair CRJ700 regional jets with 66 seats.  The service between Friedman & San Francisco International Airport will run daily from Dec. 12 thru March 30 for the 2013-2014 summer season.  The flights will offer seats in first class, United Economy Plus & United Economy.  Jack Sibbach, marketing & public relations director for Sun Valley Resort, said the new connection will not only make it easier for people to travel to and from Sun Valley, it will have a positive economic benefit for the entire Wood River Valley community.  "This the best economic news we've heard in sever eight years," he said.

The summer season is in full swing in Sun Valley, with outdoor activities galore during the warm August days and free live music filling the evening skies from the Sun Valley Symphony Pavilion to the  Reggae tunes at Ketchum’s Forest Service Park.

Summer is also the busiest time for real estate sales in the Wood River Valley. Too often articles analyzing real estate activity focus on the most expensive sale in the neighborhood or the steal of the century on the other end of the price spectrum. Today we’d like to do something different and look at the median sale price in segments of our community. The median sale price means half the homes that have sold for more than the median amount and half sold for less. It’s the middle of the market and an area of interest to both buyers and sellers.

As of August 6, 2013 in the resort area surrounding Sun Valley, the median single family sale was located at 604 Elkhorn Road The buyers paid $900,000 for a 2,494 square foot home with two bedrooms and two baths on just over a one acre parcel. The home was built in 1994 with vaulted ceilings and log accents. Although it was located with easy access to Ketchum and Sun Valley, the property was located in a very private setting and offered abundant sun and gardening opportunities.

Last year at this time the median sale was a single family home located at 121 Picabo Street. That property sold for $950,000. The house was built in 1971 and had five bedrooms and contained 2,778 square feet. It was located a half-acre lot with immediate access to both the Warm Springs lifts and ski slopes. Given the rarity of true ski-in ski-out properties in Sun Valley, this home was highly sought after and went under contract after just 10 days on the market.

For the condo and townhouse market in the resort area, the median sale thus far in 2013 was 110 Wood River Drive. This condo was in the Snowstar complex and built in 1999. The unit featured three bedrooms, two baths and 1,252 livable square feet. It sold for $357,000. The HOA offers underground parking, hot tub , exercise area and easy access to the River Run Lodge and gondola. One year earlier, the median sale was in the Bigwood Condos on Saddle Road. This unit was built in 1973 and remodeled in 2000. It was 1,313 square feet in size with two bedrooms and two baths. It closed at $290,000 after three months on the market.

In the Hailey single family market, the median sale thus far in 2013 was located at 720 Sunrise drive in the Woodside neighborhood. It closed at $232,000 and featured 1,626 square with three bedrooms and two baths on a 12,000 square foot lot. It was built in 1991 and had a remodeled kitchen. The transaction closed after just 28 days on the market at $143.23 per square foot of livable space.

For 2012 in Hailey, the median sale as of early August was 2940 Glenbrook Drive which closed at $172,500. The home was built in 1999 and featured 1,577 square feet with three bedrooms, two baths and a quarter acre lot. It was on the market for 74 days from the list date until closing. With a closing price of $109.38 per square foot, these buyers paid nearly 30 percent less than what a similar home sold for in 2013.

 The median price changes regularly as new sales are added into the equation. The goal of my newsletter topic today was simply to provide some insight into the middle of the market, rather than focusing  on properties on the high and low ends. It’s always good to remember there are only two buyers and two sellers involved in those transactions, while the sweet spot for most real estate investors is somewhere in the middle. Please let me know if you have any questions or comments. I would be pleased to offer assistance.

“Summer is officially underway in the Wood River Valley, with wildflowers blanketing the hillsides and an assortment of outdoor activities in full bloom. As always, there’s a busy calendar of events planned with theater productions, live music and creative workshops to be enjoyed. The Farmer’s Markets begin this week in Hailey and Ketchum and will continue each week until early October.

I’ve just completed an analysis of the local real estate market over the past 24 months. In this historical overview, it’s clear we’ve witnessed some significant changes. After local home prices and sales volume tumbled from 2009 to 2011, a sustained rebound is now underway. The mid-valley and south valley have showed strong gains in both the number of single family homes sold and the average selling price. In the resort area, the statistics are much more mixed. Sales have increased, but  by a smaller amount, and the average selling price per square foot is dependent on the neighborhood.

I think there’s an important lesson here for both buyers and sellers. We all have seen the media reports of a robust rebound in the housing market. While that’s true on the national level, each real estate market is unique and prices are established locally. Whether you are buying or selling, I’d be happy to have a Windermere agent who is familiar with the area prepare a detailed Comparative market Analysis on a particular property which shows you the long-term trends in that neighborhood or subdivision.

Blaine County remains a highly desirable place for young families to relocate, as well as haven for urban dwellers to rest and recreate. I look forward to a summer of strong real estate sales, as sellers enjoy the rebound in home prices and buyers seek out the best values in the marketplace. As I mentioned earlier, if I can be of help in the coming months, please don’t hesitate to call.”

Sincerely,

Dan Gorham

One of the huge changes in the real estate industry today is the vast amount of data available to buyers and sellers. Consumers in the Information Age can do their own research on market conditions, listings and emerging trends. The real question is what’s the source of the data being presented and is it reliable?

The March issue of REALTOR magazine examined this trend. The article written by Brian Summerfield acknowledged that consumers can be often be misled by sites such as Zillow, which offers it visitors a “Zestimate” of what a particular property is worth. These types of values are often gathered from the average sales price of a particular zip code.

“You hear a lot of talk in the industry about “empowered consumers”—those who enter into a contract with you armed with a boatload of information about homes for sale and local market conditions,” says Summerfield.

“Consumers can access a host of real estate resources anytime, anywhere, from their desktops or their smartphones, whether it’s information about a specific house or inventory level in their community.

But more—and more varied—sources of information can cause confusion as consumers come across data that’s incomplete, contradictory, outdated, or flat-out wrong. That may lead buyers and sellers to erroneous conclusions about a home’s value, the prevalence of distressed sales, or the costs involved in a transaction, to name a few things.

That’s where you, the knowledgeable real estate practitioner, can show your value. When it comes to information, you can help sort fact from myth or provide context to the random data points consumers regularly come across. ”

While consumers will continue to use the Internet daily to research available properties, there’s no substitute for a full-time real estate professional who knows and understands the local marketplace. Windermere Real Estate prides itself in providing timely and accurate reports on the Sun Valley real estate market. If you would like to receive our monthly Market Snapshot via e-mail, contact your Windermere agent today. If you are currently not working with a Windermere agent, e-mail us at sunvalley@windermere.com and we will add you to our monthly mailing list.

Dan Gorham

Managing Broker

Windermere Real Estate

208/622-2700 Ketchum

208/788-1700 Hailey

208/720-4077 Cell

Sun Valley’s high-end real estate market is enjoying a strong 2012. There have been 24 sales as of 11/12/2012 on homes with list prices in excess of $2 million. This compares with 21 homes sold in 2011. While the average selling price in 2012 is $3,267,174 compared with $2,427,619, the more interesting statistic is the selling price per square foot. This year the average price on a luxury home this year is $567 per square foot, compared with $490 per square foot in 2011. While variances need to be made for neighborhoods, location and parcel size, this 16 percent increase is worth noting for both sellers and buyers. The average size of a luxury home sold in 2012 was 6,206 square feet and the average days on market (DOM) was 405, an increase of 14 percent over 2011.

The entry level market has also seen some dramatic price escalation in 2012. In developing these numbers we examined Hailey single family sales for the first 10 months of 2012. We divided the year into two 5 month periods (Jan 1-May 30 and June 1-Oct 30). In the first half of the year, 74 Hailey homes were sold with an average sold price of $191,258. The average selling price per square foot was $102. The average size was 1,820 square feet with 163 days on the market. When we look at the second half of the year, we saw a number of encouraging signs for the south valley market. The average selling price of the 63 homes sold was $235,428, a 23 percent increase from earlier this year. The average size remained about the same, 1849 square feet, but the selling price per square foot has jumped to $122, a 20 percent increase. The inventory of homes for sale in Hailey is dwindling fast, which should fuel further price increases as we move into 2013. As I stated above, this changing trend needs to documented by both Buyers and Sellers as the Sun Valley market, and real estate everywhere,  never remains stagnate.

Dan Gorham

Managing Broker

Windermere Real Estate

208/622-2700 Ketchum

208/788-1700 Hailey

208/720-4077 Cell

To view all Blaine County listings, click here: http://www.dangorham.mywindermere.com