The Dangers of Overpricing Your Home

Pricing a home for sale is one of the most strategic decisions home sellers must make. Of course you want to get the most possible money for your home. However there are definite dangers to overpricing a home or “testing the market” by starting with a bloated list price.

The best strategy for listing a St. Louis or St. Charles County home, or any property, is getting the price right the first time. We’d like to show you how proper list price saves time, money and creates better outcomes for the sellers. 

Timing 

You know the feeling of finding a brand new product that just hit the market? That feeling occurs in real estate too. Many eyes go to a property when it first comes on the market. If the home has an asking price that is beyond market range it can adversely affect the marketing of a property because marketing time is prolonged and initial marketing momentum is lost.

Percent of Buyers Who Will View a Property

The price of a property will definitely affect the number of potential buyers who will even view it. Online home search sites make it easy to filter out properties by price range in small increments. Homes priced higher than comparable homes for sale may not even filter into a homebuyer’s online search results.  Fewer buyers will be attracted and fewer offered received.

An overpriced property will likely attract “lookers” and will help competing houses look better by comparison. If the property does sell above true market value, it may not appraise, and the buyers may not be able to secure a loan. Finally, after many price reductions the property may eventually sell below market value.

Your First Offer is Often Your Best Offer

Seriously consider the first offer received. Just because an offer is received quickly doesn’t mean one should wait for a better offer from another buyer. A better buyer rarely appears. New buyers are waiting for the right home to come on the market and will come see your home. Dealers may consider a lower offer after the home has been on the market for a while.  Bottom feeders are attracted after multiple price reductions.

Properties priced correctly within market range generate more showings and offers, and sell in a shorter period of time. So how do you price a home accurately? Have an experienced local Realtor create a competitive market analysis for your home. You can’t depend on a computer-generated algorithm to know all the updates you’ve made to your home and how it compares to similar homes recently sold. Depend on a local Realtor that understands all these details.  If you do use a computer generated home value estimator, keep in mind that the results might not be completely accurate.

Thinking of listing a St. Louis or St. Charles County area home? Contact The Boehmer Team to create a competitive market analysis for your home. A Comparative Market Analysis considers similar properties that a) have sold in the recent past showing us what buyers in the market have actually paid for, b) properties similar to yours currently on the market that will be competing with yours for the attention of available buyers, and c) properties that failed to sell to understand what they did wrong and what can be done differently. An impartial evaluation of market activity is the most effective way to estimate a property’s potential selling price and an excellent opportunity for you to interview Realtors to work with. Contact The Boehmer Team for more information. 

Prepare a Home for Sale with KonMarie Method

In January, 2019, Netflix released Tidying Up with Marie Kondo staring Japanese organizer and author Marie Kondo. In the series Kondo visits various cluttered American homes and helps families get organized with the help of her KonMarie Method. The method consists of grouping all of your items together by category and keeping only the items that “spark joy”, then finding a “home” or specific place in your household for the items.

While this may sound unexciting, the show has been a viral success inspiring people of all ages to organize their spaces. The popularity of Marie Kondo’s KonMarie Method has been proven at resale stores that are reporting big increases of charitable donations this year. Meanwhile we’ve discovered that the KonMarie Method can be very helpful for preparing a St. Louis or St. Charles County home for sale.

Organizing and decluttering the interior and exterior of a home are of upmost importance to make it look good to potential buyers. However this task can be daunting if you have lived in a home for a long time and accumulated a lot of stuff. Getting rid of stuff can be tough for some people but we’ve found that Kondo’s view to focus only on the things you really love helps make it easier to say goodbye to the other stuff.

"I was obsessed with what I could throw away… And I realized my mistake: I was only looking for things to throw out. What I should be doing is finding the things I want to keep. Identifying the things that make you happy: that is the work of tidying." – Marie Kondo

Using KonMarie Method on a Home Exterior

Consider all of the items on the exterior of your home by category, for example patio furniture. Do you have extra chairs that are just “there”? Get rid of them. Do you have an old BBQ grill that doesn’t work correctly sitting next to a new one you love? Focus on the one you love and let go of the other one. What about lawn ornaments? Do you have more than one? Choose your favorite and donate the rest. Continue to do this by category until you are really happy with the exterior of your home.

Using KonMarie Method in a Garage

Garages are a great place for extra stuff to accumulate. Go through the garage by category. Do you have doubles of any tools, lawn maintenance equipment, or car maintenance equipment? Is anything broken or no longer needed or that no longer spark joy? Sell or donate the items. No longer playing a particular sport because you’ve fallen out of love with it? No need to keep that equipment any more. Someone else would love to have it. Finally, create spaces within the garage to rehome the items you are keeping in an organized manner.

Using KonMarie Method on a Home Interior

To best implement the KonMarie Method on your home’s interior, it helps to make a list of all the categories of items in your home. This way you can mark off the completed categories as you go. Categories might include: clothes, shoes, jewelry, towels, bedding, dishes, placemats, holiday decorations, chairs, couches, tables, porcelain collectibles, candles, books, keep-sakes, etc. Or, print the Ultimate KonMarie Checklist for a premade list of categories to use while organizing.

Basically, if you aren’t in love with something in a particular category enough to use it every year or display it all the time, it isn’t worth keeping as clutter that hides the things that truly bring joy to your home and life. When done removing the items that don’t spark joy, be sure to find specific places to display or store the items you are keeping.

Notice the special items displayed at right in an organized way so the homeowners can enjoy them.

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Check out our more detailed list of items to be sure to address when listing your home in our article: Prepare a Home to Sell. Or contact The Boehmer Team for a professional consultation on what you need to do to ready your home for sale. We’ve helped hundreds of folks determine the changes needed to bring in the most value from their home sale.

Here's a summary of KonMarie Method for reference. Enjoy!

Tax Perks of Home Improvements

Whether we like it or not taxes have been and will continue to be a factor in our income and purchasing decisions. For St. Louis and St. Charles County, Missouri homeowners, taxes additionally have implications on our decisions to make home improvements and remodel our homes.  How much impact? We’ll explain.

First you need to know the difference between a home repair and a home improvement. The IRS defines a repair as anything that's necessary to keep your home in good condition but doesn't necessarily add to its value. An improvement is anything that prolongs the useful life of your home and has the potential to increase its resale value. Your project needs to be considered a home improvement in order to take advantage of available tax perks. Be sure to consult your trusted tax advisor for tax advice regarding a specific project as not all home improvements are tax deductible.

Here are some of the home improvements that do have tax perks:

Solar Upgrades

Pictured: solar panels and solar water heater.

Solar water heaters and solar panels can still be claimed for a tax credit through 2021. The tax credit is currently 30% and includes the cost of installation. In 2020 the credit decreases to 26% and in 2021 it will be 22%. So if you are thinking of making solar upgrades it is best to do so sooner to claim a higher tax credit for the improvement.*

Modifications for Medical Necessity

Home improvements that are made to accommodate a medical disability may be deducted on your taxes. Some of the items covered include: adding handrails or support bars, widening doorways, adding a wheelchair ramp, and installing lifts. However to receive the tax perk for these upgrades you must itemize deductions instead of claiming the standard deduction. Talk to your tax advisor to determine if modifications made for medical necessity in your home are eligible for tax perks or refer to IRS Publication 502.

Selling a Home

Home improvements can decrease that amount of capital gains taxes when you sell a home. Capital gains are a type of tax levied on capital assets including investments and real estate when those investments are realized or sold. (Note: this doesn’t affect everyone. Individuals can exclude up to $250,000 of capital gains from the sale of their primary residence or $500,000 for a married couple). Increasing your adjusted cost basis, what you paid for the home plus costs incurred including home improvements, can reduce this tax. Be sure to keep receipts and paperwork from home improvements you make to increase your adjusted cost basis when you're ready to sell. As with the above, be sure to consult your tax advisor regarding capital gains taxes.

When you are ready to sell a St.Louis or St. Charles County area home, contact The Boehmer Team. We will help you achieve the maximum value for your property. We have over 55+ years of combined experience helping homebuyers and sellers. We’ve seen thousands of different situations and helped negotiate for our clients’ best benefit. Give us call or check out our website for more information about all that we do.

* Visit energystar.gov for requirements and additional information on tax credits for solar upgrades.

* Information herein is not legal tax advice. Please consult your tax advisor for specific tax information.

How to Survive A Competitive Sellers Market

St. Louis and St. Charles County area homebuyers: we hear you. It can be a challenge right now if you are looking to purchase the perfect home. Chances are you’ve found it - a few times - only to find out there is already a contract and backup contract on the home. So here is some great advice to help you survive the current competitive sellers market.

Start Early

As soon as you decide you are going to purchase a home get started with the process. How do you start?  By interviewing or contacting a qualified, full service Real Estate Agent that knows your desired area.  Select a full time, professional Realtor that has the resources and expertise to find the right home for you in this competitive market.  Ask your Realtor this question, “What resources would you use to best find me a home, possibly before it hits the market, and what strategies would you use to help me secure that home?”  Don’t be afraid to ask for a testimonial from a recent buyer client.

Get Pre-Qualified for a Home Loan

Your Realtor will have excellent Lenders that will help evaluate your buying position. Without knowing how much you can afford, you can’t confidently jump on the perfect home as soon as you find it. If you aren’t paying cash contact a reputable loan officer to help you determine how much you can afford and get you pre-qualified.   
It is important that you get pre-qualified for a home loan, as it is expected to be submitted with your offer to purchase. This process will qualify you for a home loan and help you determine the amount you can spend on a home. It also shows home sellers that you are serious about purchasing their home, which is expected in all home-buying situations.

Need help finding an experienced mortgage loan officer?
Contact The Boehmer Team for a list of recommendations.

Determine Your Must-Haves

What are the items that you cannot live without? Make a list of the things you must have in your next home. Keep in mind that the longer the list, the longer your home search could be in this current competitive market. If you still can’t find the perfect home, consider an almost perfect home that is under budget. This way you can make it into the perfect home with the money that you didn’t spend.

Search For Your Perfect Home

Now that you’ve figured out your finances, determined your must-haves and connected with an experienced real estate agent, you’re ready to begin searching for homes. Your real estate agent will be assisting you with this process by searching through their various contacts and systems. One suggestion, consult a real estate professional regarding the most accurate and updated resources for your home search. Many national home search websites, such as Zillow,  only update their listing data every few days. In a competitive market many of the homes that appear on those search results will already have a contract on them by the time you find them. Instead, try www.TheBoehmerTeam.com. Our website gets multiple listing data updates hourly and has more accurate local information.

The Boehmer Team Can Help

Are you thinking of purchasing a home in the St. Louis or St. Charles County area of Missouri? The Boehmer Team can help. We have over 55+ years of combined experience in real estate. We’ve seen buyers markets and sellers markets and made the best of both. Contact us if you have any questions about real estate or help buying or selling a property.  In addition, we have extensive experience representing buyers purchasing new home construction and consider ourselves experts in the field of new home construction. 

6 Ways a Buyer’s Agent Helps Your Home Search

In today’s competitive home buying market, a dedicated buyer’s agent is more important than ever in finding and securing the home you want. Most real estate agents in the St. Louis and St. Charles County areas of Missouri perform dozens of tasks for both buyers and sellers. But a dedicated buyer’s agent is focused on helping homebuyers. This provides a better experience for homebuyers. Here are some ways a buyer’s agent helps in your home search.

Stephanie Puszkar

1. A buyer’s agent takes the time to discover your needs and what matters most to you.
Stephanie Puszkar, buyer’s agent for The Boehmer Team, says “by establishing a communicative relationship we assist homebuyers by providing knowledge through the process and they help us determine exactly what they need, want and will accept for a new home.”

2. A buyer’s agent gets access to data in real time.
Did you know that most national consumer home search engines do not provide real time data and information on homes for sale? This is why the best homes are often gone before you even have a chance to look at them.

“The Boehmer Team uses the newest data available from our local multiple listing service, a large company network, social media groups and additional industry related resources,” says Linda Boehmer.

www.TheBoehmerTeam.com has advanced home search technology that lets you create a home search and sign up to receive immediate email notifications of new homes that match your search within minutes of hitting the market. Create a saved search yourself or contact The Boehmer Team to let us know your criteria and we’ll set it up for you.

3. A dedicated buyer’s agent has an inside advantage.

Linda and Kelly Boehmer

“We have several resources for coming soon listings via our connections and company network,” says Kelly Boehmer. “We also know of MLS-exempt homes the public is not aware of. Being a top producing team, we have our pulse on the market and recognize good opportunities when they are presented.”

4. A buyer’s agent knows new construction opportunities.
When looking at brand new homes, a buyer’s agent works to protect your interests and makes sure you are represented in the transaction. If you decide that a pre-owned home is not for you, The Boehmer Team can help. They have over 50 years combined experience in new construction sales. Sometimes the perfect home for you may be brand new.

5. An experienced buyer’s agent has contract negotiating expertise.
When it comes to reviewing and negotiating lengthy home contracts, experienced buyer’s agents like those on The Boehmer Team help achieve the best results for you. They know top techniques and options for the buyer when negotiating offers, including competitive offer situations.  Savvy buyer’s agents will think aggressively, within the buyers abilities, to present the buyers with options that may assist them in procuring a home.

6. A buyer’s agent sees the entire process through.

Shannon Lautenschlaeger

A full-time dedicated buyer’s agent can quickly show you property, promptly secure appointments, and obtain answers to your questions in a timely manner from the beginning to the end of the transaction.
“We attend inspections and walk-throughs, explain the inspection reports, and write repair requests,” says Shannon Lautenschlaeger, buyer’s agent for The Boehmer Team. “We make sure contractual deadlines are met, request invoices and warranties, schedule closing, and review the closing statement for accuracy.”

The best part? The sellers pay for buyer representation. So it is affordable to have an expert with you throughout the home buying process. If moving is on your mind, let the number one team in St. Charles County, Missouri go to work for you. The Boehmer Team has buyer’s agents that are ready to focus on your needs and results. Meet The Boehmer Team at TheBoehmerTeam.com and try the advanced online home search while you’re there.