Increase your chances of your rental application being accepted. Helps in a tight rental market or with low credit score.
By: Robin W Shidler, Broker June 1, 2019.
Understandably landlords want the best tenant they can find who pay their rent on time, and finding landlords that don’t check credit or are okay with a low credit score is rare. Most landlords want to delve deep into your financial past. Plus California has a tight rental market. So how can you help improve your application?
A landlord will check your credit score; which sums up how well you’ve paid off past debts. So what if your credit score is less than stellar due to a few late or missed payments, or worse? Poor credit doesn’t mean you’re destined to live on a relative’s sofa. There are landlords that accept bad credit out there.
Check your credit report.
Your first step toward getting a home or apartment (with bad credit or not) would be to check your credit report. You are entitled to a free copy at AnnualCreditReport.com you want to do this before you start looking around; because it’s one of the worse things you can do is go thorough the entire process of applying for a lease and then you don’t get approved because you had no clue you had bad credit or an eviction.
Plead YOUR case.
Because you checked your credit report and know you have a low credit score: Consider writing a letter to go with your application to the landlord explaining your financial situation, be sure to include what steps you are taking to repair your credit: That may help swing the landlord and perhaps help convince them to let you rent with a low credit score. In a tight rental market a letter covering the reasons why you want to rent that particular home might help.
Use a co-signer.
Renters with low credit scores often get help from a co-signer (also called a guarantor). If you use one, that person’s credit score is taken into consideration, which helps compensate for your lower score. But before you ask Mom or Dad to co-sign, make sure they understand the risk involved.
Increase Money paid in advance to the landlord.
Tight rental market and/or low credit score: One way to strengthen your application is by offering to pay some rent in advance or increase the security deposit, because it gives the landlord more assurance that you’re going to be a responsible tenant. NOTE: For unfinished residences paying more than three-times the rent violates California law or paying more than four-times the rent for furnished residences also violates California Law.
Include written recommendation from past landlords.
Tight rental market and/or low credit score: To demonstrate you will be a good tenant, provide positive letters from previous landlords. These should specify that you paid rent on time, respected neighbors, and kept the property in good shape.
Your Employer can help.
Tight rental market and/or low credit score: Many landlords will contact your boss to verify income, and this is especially true if you’re making a case that you should rent a residence with a low credit score in your past. Take an extra step and get your manager or Human Resources to write a letter to the landlord. “Have them speak to the fact that you are a valued employee”. This should demonstrate to the landlord that you have job stability-a compelling factor for every rental applicant that may just give you the edge to get a home despite your low credit.
Robin Shidler, California Real Estate Broker for Shidler Development Inc. Real Estate & Property Management, actively engaged in renting, leasing, management since 1969.
BOOST RESALE OR RENT VALUE WITH KEY HOME RENOVATIONS
By: Robin W Shidler, Broker, February 21, 2019
$340 billion spent on home renovation 2018, but which of those improvements are the key to increased value.
Consider these key home improvements.
- Paint your walls. A fresh coat of paint is an affordable and effective way for a client to beautify a home. Both greys and earth tones are the hot home colors for kitchen designs.
- Plant and landscape for curb appeal. Consider a new walkway and fill planters with colorful plants and shrubs is a great way for a client to improve curb appeal for a few thousand dollars.
- Replace old windows. Get rid of old windows with rotting broken frames and freshen up the home with new energy effecent windows. May result in saving $25 yo $450 per year with energy efficient windows.
- Remodel the kitchen. A new kitchen adds an immediate WOW factor to the home WITH good marketing photos. The average return on a kitchen remodel is 65%. Clients can remodel at a lower cost by resurfacing cabinets, changing hardware and/or replacing applicances.
- Fix the roof. One of the most visible part of a home. A new roof may seal the sale. The average return on investment for a new roof is reported to be nearly 70%.
- Replace the flooring. If your carpeting is 5 to 10 years old, it probably shows it, so replace it. Considering If you have hardwood floors that have been carpeted over, remove the carpet, pad and tack strip, wood flooring is in. Consider refinishing the hardwood flooring to provide a fresh and clean look for a few hundred dollars.
- Paint your front door and replace the porch light. Curb appeal starting at the walkway up to the front door freshly painted an inviting accent color and a new porch light.
FAQ QUESTIONS WHEN RENTING AND LEASING
By: Robin W Shidler, Broker February 20, 2019
QUESTION: WHAT IS THE MAXIMUM AMOUNT A LANDLORD MAY REQUIRE A RESIDENTIAL TENANT TO PAY FOR A SECURITY DEPOSIT?
ANSWER: Residential property is broadly defined to include all dwellings. The amount a landlord may charge for a security deposit is highly regulated. Residential landlords are limited to a maximum-security deposit equal to two month’s rents for unfurnished units and three month’s for furnished units (Cal. Civ. Code § 1950.5(c)). These limits cannot be waived by the tenant. While the landlord may describe some of the security deposit as “last month’s rent,” “cleaning deposit” or “pet fee,” the landlord may not collect or demand any additional amounts for these categories. (Cal. Civ. Code § 1950.5(c).)
However, a landlord is permitted to increase the deposit by one-half of one month’s rent when a landlord is accepting a tenant with a waterbed. In that situation, the landlord is also permitted to charge a reasonable fee for administrative costs. (Cal. Civ. Code § 1940.5(g).)
In addition to the security deposit, a landlord may collect the first month’s rent in advance. Beyond the first month’s rent, requiring a greater advance rent payment is permissible only if (1) the amount pre-paid is six months or more rent and (2) the term of the lease is six months or longer. (Cal. Civ. Code § 1950.5(c).)
Furthermore, landlords may also charge a nonrefundable application screening fee. This permissible fee was limited to $30 (in 1996) but may be increased annually commensurate with an increase in the Consumer Price Index after January 1, 1998, in 2012, the maximum screening fee could not exceed $44.51. The application screening fee may not exceed the “actual out-of-pocket costs of gathering information concerning the applicant.” (Cal. Civ. Code § 1950.6(a).)
QUESTION: DOES THE LANDLORD EVER HAVE A RIGHT TO ENTER THE LEASED PROPERTY AFTER THE TENANT TAKES POSSESSION?
Answer: Yes, but only under certain conditions and for some of these conditions written notice is required, for some no notice is required, and for others oral notice will suffice. In addition, the extent of these rights depends on whether the property is residential or commercial.
Residential: For purposes of this discussion, residential refers to any “dwelling.” It includes multi-unit apartment complexes (i.e., not limited to 1-4 units).
The rights of a landlord to enter a dwelling are severely limited by statute. A landlord may enter only under the following circumstances:
- In case of emergency; 2. To make necessary or agreed-upon repairs, decorations, alterations or improvements, supply necessary or agreed-upon services, or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers or contractors or to make a pre-move-out inspection as described in Civil Code § 1950.5; 3. When the tenant has abandoned or surrendered the premises; or 4. Pursuant to court order. 5. For the purpose of installing, repairing, testing, and maintaining single station smoke alarms. (Health and Safety Code §13113.7) 6. An owner or owner’s agent may enter a multifamily residential or commercial property for the purpose of installing, repairing, testing and maintaining water-conserving plumbing fixtures required by Civil Code § 1101.5 consistent with the notice requirements of Civil Code § 1954. 7. An owner or the owner’s agent may enter any dwelling unit intended for human occupancy owned by the owner for the purpose of installing, repairing, testing, and maintaining carbon monoxide devices required by this section, pursuant to the authority and requirements of Section 1954 of the Civil Code. (Health and Safety Code § 17926.1)
- It’s important to note here that a landlord does not have the right to enter a property for the purpose of making a general inspection or an annual inspection.
(Cal. Civ. Code § 1954(a).)
The following rules apply regarding entry into residential properties:
(1) Entry During Normal Business Hours
With the exception of emergencies, cases of abandonment or surrender, the landlord can enter only during “normal business hours” unless the tenant consents to an entry during other than normal business hours at the time of entry (Cal. Civ. Code § 1954(b)). There is no statutory definition for “normal business hours,” but some practitioners interpret it as excluding evenings and weekends, with the exception of showing the house to prospective or actual tenants or purchasers. See “Open Houses” below.
(2) Reasonable Written Notice
“Reasonable” notice must be given to the tenant, and 24 hours is presumed reasonable. In addition, the notice must be in writing–except as indicated below–and include the date, approximate time, and purpose of the entry. The notice may be personally delivered to the tenant, left with someone of a “suitable age and discretion” at the premises, or, left on, near or under the usual entry door of the premises in a manner in which a reasonable person would discover the notice. (Cal. Civ. Code § 1954(d)(1).)
(3) Mailing of Notice
The notice may be mailed to the tenant. At least six days prior to an intended entry is presumed reasonable notice in the absence of evidence to the contrary. (Cal. Civ. Code § 1954(d)(1).)
(4) Purpose of Entry to Show Unit
If the purpose of the entry is to show the unit to a prospective or actual purchaser, the notice may be given orally, in person or by telephone, if either the landlord or his or her agent has notified the tenant in writing within 120 days prior to the oral notice that the property is for sale and that the landlord or agent may contact the tenant orally to show the unit (Cal. Civ. Code § 1954(d)(2)). As with written notice, oral notice should be given at least 24 hours advance to be presumed reasonable. At the time of entering the unit, the landlord or agent must leave written evidence of the entry inside the unit (e.g., a business card) (Cal. Civ. Code § 1954(d)(2)).
(5) Purpose of Entry to Make Agreed Repairs
The landlord and tenant may agree orally to an entry to make agreed repairs or provide agreed services. The agreement must include the date and approximate time of the entry and must be within one week of the oral agreement. (Cal. Civ. Code § 1954(d)(3).)
(6) No notice is required to respond to an emergency (Cal. Civ. Code § 1954(e)(1)).
(7) No notice is required if the tenant is present and consents to the entry at the time of the entry (Cal. Civ. Code § 1954(e)(2)).
(8) No notice is required if the tenant has abandoned or surrendered the unit (Cal. Civ. Code § 1954(e)(3)).
(9) Open Houses. The law permits the landlord to hold open houses on weekends with reasonable notice. This was the ruling in the case of Dromy v. Lukovsky in 2013 which set down the guidelines for holding open houses. The case allowed that open houses could be held on either Saturday or Sunday, but should be limited two a month. The tenant should be given 10 days’ notice, and the tenant should have the right to propose alterative days for the open house. Please see the article “Entering Tenant-Occupied Property” from the 2015 June/July edition of California Real Estate Magazine.
Finally, the tenant cannot waive these rights (Cal. Civ. Code § 1953(a)(1)).
Commercial: Here, a landlord’s right of entry may be much broader than in the residential setting. Commercial landlords’ rights of entry are a matter of contract. There is no statute which specifically limits the landlord’s access to the premises. However, if the contract is silent as to access rights, the landlord should not presume to have any.
QUESTION: WHAT HAPPENS TO THE TENANTS SECURITY DEPOSIT WHEN LANDLORD SELLS THE PROPERTY?
ANSWER: Upon termination of a landlord’s interest in the property, whether by sale, death or foreclosure, the landlord must do one of the following acts in regard to the security deposit.
The residential landlord can either 1) transfer the deposit minus lawful deductions to the tenant or 2) the landlord can transfer the deposit minus lawful deductions to the new owner and notify the tenant of the name and address of the new owner (Cal. Civ. Code § 1950.5(h)). In either event, the landlord must within a reasonable time after closing notify the tenant. C.A.R Sample Letter “Owner to Tenant Security Deposit” (Form OTSD) can be used for this purpose. A landlord who properly follows this procedure is relieved from further liability with respect to the security deposit held.
Prior to close the landlord/seller must deliver to the buyer a statement in writing indicating his or her election of one or two. Additionally, if the deposit is passed on to the new owner, the landlord must also deliver a statement to the new owner accounting for all deductions lawfully taken from the deposit (Cal. Civ. Code § 1950.5(i)).
Even though the law gives the landlord/seller the option of choosing one of the two above options, the C.A.R. Residential Income Purchase Agreement (Form RIPA) under paragraph 9 requires that the balance of the deposit be transferred to the buyer at close of escrow (although the landlord/seller would still have the option of making deductions). For any of the C.A.R. purchase agreements, where the tenant is to remain on the property after close, the Tenant in Possession Addendum (Form TIP) is recommended. This form, too, contains a provision that requires the landlord/seller landlord/seller to forward the balance of the security deposit through escrow (again giving the landlord/seller the option to make deductions).
The current and former landlords are jointly and severally liable for the payment of the security deposit if these procedures are not followed (Cal. Civ. Code § 1950.5(j)).
For a complete discussion of residential and commercial security deposit law, please see the C.A.R. Legal Q&A, Security Deposits.
QUESTION: DOES A TENANT HAVE TO ALLOW A SELLER OR SELLERS AGENT TO SHOW THE PROPERTY?
ANSWER: The answer to this question depends on whether the tenant is occupying residential or commercial property.
Residential Property: Yes. As discussed in Question 31, California statutory law specifically limits a residential landlord’s right of entry. This law does allow a landlord to enter the leased premises for the purpose of showing the property to “prospective or actual purchasers” (Cal. Civ. Code § 1954(a)(2)). Of course, reasonable notice must be given, and the property can only be shown during normal business hours (Cal. Civ. Code § 1954(d)(1)). As a practical matter, however, residential landlords should probably include a provision in the lease that discusses this subject because tenants probably will not be aware of the California law. Finally, should a tenant refuse access to the property, neither the landlord nor the real estate agent may enter the property. However, refusal may be grounds for eviction.
Commercial Property: Maybe. Commercial landlords should negotiate for this right before executing a lease agreement. The law discussed above applies to “dwellings.” Therefore, if the lease is not specific about the landlord’s right to show the property, a commercial landlord should not enter the premises for that purpose without a tenant’s written permission.
QUESTION: HOW DOES A RESIDENTIAL LANDLORD OR TENANT TERMINATE A MONTH-TO-MONTH TENANCY?
ANSWER: Landlord Terminating the Tenancy
60-Days Notice:
- For residential leases the landlord must provide sixty (60) days written notice to terminate any periodic tenancy, if all tenants and residents have been in the property for at least one year (Cal. Civ. Code § 1946.1(a) and (b)).
30-Days Notice:
- In cases where any tenant or resident has been residing in the property for less than one year, then thirty (30) days written notice is sufficient (Cal. Civ. Code § 1946.1(c)).
• Additionally, the landlord can give just thirty (30) days written notice to terminate a periodic tenancy when all of the following conditions have been met:
- the dwelling is a separately alienable unit (e.g. condo, single family residence, townhouse; but not a duplex, triplex or other multi-unit property);
2. the owner is in contract to sell the unit to a bona fide purchaser for value;
3. escrow has been established with a licensed escrow agent or licensed real estate broker;
4. the buyer is a natural person (or persons);
5. notice is given within 120 days after escrow is opened;
6. notice was not previously given to the tenant; and
7. the buyer intends to live in the property for at least one full year.
(Cal. Civ. Code § 1946.1(d).)
90-Days Notice:
Effective until December 31, 2019, a month-to-month tenant (or subtenant) in possession of a rental housing unit at the time a property is sold in foreclosure must be given 90 days’ written notice to quit.
If the tenant (or subtenant) is in a fixed term lease, all rights and obligations of the lease survive the foreclosure. However, the tenancy may still be terminated on 90 days’ notice to quit if any of the following apply:
- The purchase or successor in interest will occupy the housing unit as a primary residence; or
2. The lessee is the child, spouse or parent of the former owner; or
3. The lease was not the result of an arms’ length transaction; or
4. The lease requires the receipt of rent that is substantially less than fair market rent of the property (unless governmental subsidy).
To evict a tenant who remains after foreclosure on 90-day notice or more, special information apprising the tenant of various rights must be incorporated into the notice. C.A.R. form, Notice of Termination of Tenancy within One Year After Foreclosure (Giving Tenant At Least 90 Day to Vacate) (Form NTAF) may be used for this purpose. It provides both the notice and the special information in a single form.
However, when notice terminating tenancy within one year after foreclosure gives the tenant less than 90 days’ notice, then the special information must be provided as a cover sheet. In this case C.A.R. form, Additional Information Regarding Termination of Tenancy within One Year After Foreclosure (Cover Sheet Attached To Notice (C.A.R. Form NTT) Giving Tenant Less Than 90 Day to Vacate) (Form NTAF) may be used for this purpose.
Where a party to the note is occupant, such as where there is a deed of trust and the homeowner is in the property, then none of these rules apply (Cal. Code of Civ. Pro. § 1161b(d). In such circumstances, a 3-day notice is required to evict the borrower/homeowner, and a 30-day notice is required to evict other tenants or subtenants residing at the property with the borrower/homeowner.
The above residential tenant protections expire at the end of 2019. Unless extended, the current 90-day notice period will revert to a 30-day notice period under Cal. Civ. Code § 1161a for residential month to month tenancies.
See also the C.A.R. Legal Q&A, Foreclosing on Rental Property.
The landlord with a Section 8 tenant must give the tenant at least 90-days notice to terminate the tenancy (Cal. Civ. Code § 1954.535).
Tenant Terminating the Tenancy
A tenant giving notice to terminate a periodic tenancy must give written notice for a period at least as long as the term of the periodic tenancy prior to the proposed date of termination (Cal. Civ. Code § 1946.1(b).) In other words, if the tenant is in a month-to-month tenancy, she/he must give 30-day notice to terminate. This notice may be given at any time. For example, if the tenant gives notice to terminate on March 9th, then the tenancy terminates April 9th, regardless of when rent is due or when the tenant first took possession.
If a tenant receives a 60-day termination notice from the landlord, the tenant is still able to vacate earlier by delivering their own 30-day notice.
Landlord’s Notice of Termination of the Tenancy
The termination notices must be given in the manner prescribed in California Code of Civil Procedure Section 1162 or by sending a copy by certified or registered mail (Cal. Civ. Code § 1946.1(f)). C.A.R. standard form NTT, “Notice of Termination of Tenancy,” may be used for this notice.
The procedure for giving the notice is as follows:
- By delivering a copy to the tenant personally; or,
2. If he or she is absent from his or her place of residence, and from his or her usual place of business, by leaving a copy with some person of suitable age and discretion at either place, and sending a copy through the mail addressed to the tenant at his or her place of residence; or,
3. If a place of residence and business cannot be determined, or a person of suitable age or discretion there cannot be found, then by affixing a copy in a conspicuous place on the property (e.g., on the door of the rental property), and also delivering a copy to a person there residing, if such person can be found; and also sending a copy through the mail addressed to the tenant at the place where the property is situated. Service on a subtenant may be made in the same manner.
(Cal. Code Civ. Proc. § 1162.)
IS THE RENTAL PROPERTY TAKING TOO LONG TO RENT?
By: Robin W Shidler, Broker, February 19, 2019
QUESTION: WHAT ARE SOME OF THE REASONS A HOME IS TAKING TO LONG TO RENT?
Trying to find a tenant to fill a vacancy at your rental property can be a stressfull experience. You may be attracting tenants who do not meet your qualifying standards, or you may not be getting any calls from prospective tenants. Here are some reasons why you can’t get your property rented.
Asking Rent Is Too High for the market
Everything comes down to price and value. If your rental is priced correctly, it will rent. If your rental is overpriced, the high price may be discouraging prospective tenants from coming to view the property or prospective tenants that do come to view the property, may fell that it’s not worth the rent you are asking and pass it up, but one or two may apply in hope your greed to get over market rent will overlook their flawed rental history.
Your Options:
Do Nothing: You could decide to keep the asking rent where it is in hopes that the “right” tenant will come along. Your math should include the big picture. If you are asking $1,000 for the unit, you will be losing $1,000 each month the unit sits vacant without a paying tenant. Despite the vacancy, you will still have to pay the property taxes, insurance, and the mortgage; if you have one then you need a tenant to be your mortgage partner as well.
Lower the Price: Your next option will be to lower the askng rent. If you lower the price by $100 and it gets you a tenant immediately, yes, it’s potentially $1,200 less per year, but you will loose $1,000 every month the apartment sits vacant, so you may break even or even make more money in the long run by lowering the price.
Add an Amenity: Finally, you could decide to do nothing to the asking rent, but fix up something in the home. For example, you could replace all the black appliances with newer stainless steel appliances. While this may be more expensive in the short run, it may make your apartment more desirable in the long run, making it easier for you to rent out the unit and fewer vacancies. You may even be able to charge higher rent.
Accept a pet: Check the other offerings, if there are only a few that are pet friendly; consider corning that market and make your home the best pet friendly place out there and get good rent while at it. Pet owners make good tenants if you make allowances for the pet such as easy clean flooring, a fenced yard, and a doggie door and get it rented to a pet owner.
Security Deposit Is Too High
Prospective tenants may have no problem with the monthly rent you are charging, but they may be turned off by a security deposit that is too high. California limits the amount you can charge a tenant, to total amount required deposit and rent not to exceed three times the monthly rent, but other states do not. Consider the amount of deposit you are requiring from tenants. Three months’ rent is probably excessive, especially if all the other landlords in the are only collecting one month’s rent as security.
Inefficient Marketing.
If you cannot get your property rented, you should take a look at your marketing strategy. You could have one of two problems:
Attracting the Wrong Type of Tenant: If the tenants who are inquiring about your property are not meeting your qualifying standards, then you need to reassess your marketing strategy. You need to make sure you are putting the proper information in your ads so you are not wasting the renter’s time and they are not wasting yours. In your ad, make sure to include the income requirements, how much you require as a security deposit, whether or not you allow pets and the length of the lease agreement that must be signed.
Not Receiving Any Interest in Your Property: If no one is calling to come see your property, you will also need to look at how it is being marketed. Are you advertising the vacancies on multiple websites, such as Trulia and Craigslist? Does your ad contain high quality color images? Does the title of the ad describe the property concisely, stating the location, the number of beds and baths, as well as a pleasing adjective, such as spacious, sunny, quaint, quiet, cozy or renovated?
Current Tenants.
Something else to consider is how you current tenants can influence the way a prospective tenant views your property. The two biggest culprits are noise and dirt.
Noise: If the prospective tenant is met with loud music, barking dogs or other tenants screaming when they come visit your property, it is very unlikely they are going to want to sign a lease to live there. People want to be able to enjoy their home in peace and quiet.
Dirt: In addition, if the prospective tenant questions the cleanliness of the other tenants, they are unlikely to want to rent your property. They will have concerns about bugs and vermin in the property.
Enforce the Rules: Make sure you enforce a quite hours policy with your current tenants. In addition, make sure to maintain the cleanliness of the exterior and all common areas of the property. Tenants are also responsible for maintaining their rental unit to meet certain health and safety codes, so if you have a concern about their cleanliness, you can need to send the tenant a notice to quit the behavior.
Undesirable Feature
You may be having difficulty getting your property rented because of an undesirable feature of the rental unit or of the property in general. This could include:
Issues That Could Require Price Drop:
Too Many Stairs: If the unit you are trying to rent is on a higher floor, such as a third floor walk-up, you may have a difficult time renting it because of the number of stairs tenants will have to go up and down.
Small Room Size: The size of the rooms in your property could be turning off some tenants as well. The rooms may be too small to fit their current furniture. For example, they may have a king size bed, but the bedroom in your property may only be able to accommodate a queen.
Not Enough Bathrooms: Another problem you could be experiencing is that the tenants are looking for more bathrooms than there are in your property. They may be looking for a three bedroom with two baths, but your property is a three bedroom with only one bathroom.
Location: You may be having trouble finding tenants because of the location of your property. Tenants in the area may value properties that are close to public transportation, but your property requires a car. Your property could be located on a busy street, which could put off some tenants or it could be isolated, in the middle of nowhere, which could also be unappealing.
Issues That Could Require Renovation:
No Washer and Dryer: Some tenants do not want to go to a laundry mat to wash their clothes. They will only look for a property that has on site laundry, either accessible in the common area or in the unit itself.
Not Updated: Another reason your property may not be renting is that it is outdated. Tenants may be looking for apartments that have newer kitchens, baths or hardwood floors.
Exterior Is Unappealing: The exterior of your property could be keeping tenants from even coming inside to see the property. Problems could include the property looking rundown from the outside or a tenant not feeling safe due to a lack or lighting or secure entry into the
PROPERTY WON’T SELL OR RENT
By: Robin W Shdier, Broker February 19, 2019
QUESTION: HOME WON’T SELL OR RENT, CONSIDER THE FOLLOWING:
Reason No. 1. Marketing photos are subpar or not enough photos
Over 70% of home buyers are looking on line with their smart phone. In the digital age buyer’s start looking online, so photography is key to making a great first impression, with the most flattering pictures possible. If buyers are not coming around to see your property and your photos leave a lot to be desired, hiring a photographer could help. Professional photographs can drastically improve the online presence of a listing. Cost vary, but range is $250 to $500 for interior and exterior.
Reason No. 2. Your home is not prettied up.
We are not saying your home doesn’t look nice, but is there oil spills and cracks in your driveway? Does your kitchen scream 1970’s & 1980’s If so, then you’re sending out all the wrong signals.
Think of like dating: When you go on the first date, you expect your date to have showered and be dressed in their best. In home terms, that amounts to staging by a professional who arranges your home for maximum appeal.
Staging can help your home sell faster too… about 20% quicker than a home that is not staged. Cost vary depending on the service. To give you a general idea, the National Association of Realtors found the median cost of staging a home to be $675. Then you do your part and keep it clean. If not a professional home staging, then perhaps a good pre-packing, uncluttering, cleaning, and painting.
Reason No. 3. Your home is too… you
Hey, we’re not judging you—but buyers might. Your flamingo-pink porch and painted black bedrooms might be a bit, um, much for the typical home shopper. It’s time for a candid talk with your Realtor about whether there’s anything around the house you could do to make it more of a neutral backdrop for other people’s home dreams.
You should also make yourself scarce, if not absent, when the property is being shown—no matter how lovely and helpful you are, your presence can make sellers feel self-conscious or pressured to politely ooh and ahh rather than speak their minds.
Finally, make sure to make your house available for showings at times convenient for buyers—not just for you. So expect to give up a few weekends for property browser.
Reason No. 4. You priced your property too high
If you’ve tried all of the above and still can’t get a buyer, then what’s wrong with your home may be the price you’re asking for it. When it comes to homes that are stagnating, Alex Bracke, owner of the Alex Bracke Real Estate Group in Sterling, VA, says he makes one point clear to sellers: “I don’t set the value of their home; they don’t set the value of their home,” Bracke says. “The market sets it.”
Translation: The home is worth no more than what someone is willing to spend for it. So to stir up interest, reduce the price. And don’t be coy—slash it.
“In order to make a splash and get buyers excited, the price reduction must be significant,” says Robin Shidler Broker of Shidler Development Inc. in San Bernardino CA. “Reduce the price by at least 5%, and 10% is even better.”
A price cut doesn’t even mean you’ll take a huge hit.
“Just because a home’s price is reduced does not mean that’s the maximum it can sell for,” says Michels. You’ll hear from new buyers because your house will be in a new price range, and you might even get a bidding war that will bring the price back up to where you started.