Should I or should I not offer a commission bonus to the buyer's agent when selling my Silver Spring, MD home? That is a question & discussion that pops up regularly. My answer is:


Sellers, don't waste your money on a commission bonus. Do this [pick one] instead!

• Hire a professional organizer before you list to help you purge and organize your belongings as well as your home. Not only will it make your move easier, it will also show your home better.
  
  
• Hire a professional stager. Staging turns a house into a home and helps buyers envision how to use a space and get the warm and fuzzies. 
  
  
• Replace that old and worn-out carpet.
  
  
• Replace your (outdated) appliances.
  
  
• Spruce up your bathrooms, new paint & fixtures alone can make a big difference.
  
  
• Improve your curb appeal, you simply can't have too much of it.
  
  
• Create an outdoor living area in your back-yard.
  
  
• Catch up on regular maintenance items.
  
  
• Have a pre-listing home inspection.
  
  
• Hire the best REALTOR®. Hiring the agent who is quick to offer you a discount may seem like a financial savvy decision. At first. But consider that seasoned agents with a track record know their worth. The combination of experience, knowledge, being market savvy, negotiation skills, professional network, marketing tools, listening skills, education above & beyond the minimum requirement .. may just yield you a [much] bigger net in the end, and a less stressful experience. 

Quite honestly, a commission bonus is well.. a nice bonus and you'll make the buyer agent's day. But, the buyer's agent is NOT the one buying the house. The buyer's agent is NOT the one making the decision on which house to buy. The buyer's agent is NOT going to steer the buyer to your  house because of a commission bonus. 
Why not? Because this is a relationship business that is build on trust. We work for Thank Yous and referrals. Listening to what our buyer clients want, need and can comfortably afford are the top priorities. Whether or not a bonus is offered to us, doesn't even make the list. We want to see our buyers glow and hear all about how happy they still are in their home a year or five later. And we would love for them to return to us when they are ready to sell and buy again. 
It is all about the buyer. So do what is best for them. And do what is best for you. Show your home in its best possible light. Create a space that the buyer will love. Hire the best and price it right. But don't waste your money on a commission bonus. ​

The short answer is: yes - unless you fall under one of the exempt categories (Estate sales, condos & coops or if your home will either be demolished by the buyer or converted to a different use than residential).

Explanation: although Radon tests & contingencies became increasingly more common over the last few years and many - if not most - REALTORS®, including myself, have been advising their buyer clients to include a radon test contingency, the Montgomery County Council made testing a law in 2016. It was the first in the country to do so.
It's important to note that the law requires a test to be done before settlement but does not require the seller to remediate. Thus, it is strictly a disclosure law. Of course, requesting remediation is an option available to buyers - whether or not it's completed prior to closing or a credit is issued is subject to negotiation.

A seller can also ask the buyer to perform and pay for the test but is ultimately responsible for getting it done if the buyer declines.

Q: Do I have to hire a 3rd party to do the testing?
A: No, you don't. Hiring a 3rd party is just one of the options available. So is purchasing one of the approved test kits and performing the test yourself. Please note that the results cannot be older than 1 year at the time of settlement!
Consider your options carefully, having the test done by a licensed company may offer the buyer additional peace of mind and may be considered another selling point.

Q: What should I do if the radon levels come back above the established action level?
A: Again, you have options just as long as you fulfill the disclosure requirement. Remediate before putting your house on the market (make sure you only hire a licensed contractor to do so; you can search for one via the National Radon Safety Board or the National Radon Proficiency Program) or wait and see what the buyer requests, then agree or negotiate.
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Keep in mind, you want to sell your home and buyers want to buy the best home that fits their needs and budget. A healthy living environment is at the top of home buyers wish lists. Radon levels that are above the established action levels could scare some buyers away or prompt them to deduct $$$ off the list price to take care of the situation themselves.
Info: Department of Environmental Protection, Montgomery County, MD

Curb appeal, one of the items that should be high on every seller's must-do list before they put their home on the market. There are a number of things that can be done to - at the very least - spruce up the front of the home.
Curb appeal, or better, the lack thereof, is one of the top 5 reasons why buyers may not enter a home!

What not to do

5. Don't be bland
you want your home to stand out, in a positive way, and stay top of mind. Check with your HOA, if applicable, which kind of changes you are allowed to make that will make your home look a bit different than the rest. Can you change the style/color of the front door or shutters? Are window boxes allowed? How about light fixtures? Landscaping? Add some personal touches, a pillow in your front porch rocker , a wreath on the door or a welcoming sign.

4. Don't neglect your yard
trim overgrown bushes and trees so that your house can be seen from the street. Water your lawn, rake the leaves and add a few colorful plants.

3. Don't leave anything in disrepair
is your front door hard to open and people "must jiggle the key" to unlock, please replace the lock! Make sure railings are tight, gaps are sealed, bees nests are removed, downspouts are extended and draining away from the house.

2. Don't stay in the dark
As we enter the Fall and Winter seasons, pay extra attention to your outdoor lighting. Is your porch light functioning and bright? Could your front yard benefit from some extra lighting to show off your curb appeal?

Last, but not least, my new #1 Curb appeal, what not to do:

Don't leave anything out front that does not belong there!
Sadly, this is a true story. while showing homes in 20906 Silver Spring with my buyers, we spotted a toilet roll holder on the front porch! We had to do a double-take as we walked up to the front door.

What in the world ...? That was most definitely an item that did not belong anywhere near the front door, let alone on the front porch! That does not scream curb appeal or buy me!

While I'm house hunting with my buyers, we always end up assigning nicknames to the homes we toured. It's much easier than referring to the street address. Make sure you home will be remembered as the pretty house! You wouldn't put an offer on the crappy one, or would you?

Many buyers nowadays will do extensive research online and pick the homes they want to see based on their findings. Their own research is (ideally) complemented by their agent's search and together they come up with a short list of homes to see.
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Why a home won't make it on the short list, even if it meets all the buyer's search criteria, is a topic for a different blog post. Why would buyers decide to pass on a home they had scheduled to (and been looking forward to) see?

Top 5 Reasons Why Buyers Will Not Enter A Home

1. The house looks nothing like it does in the pictures online.
2. An important (to the buyer) adverse fact was not disclosed or obvious in the online property listing (the power lines or water tower right behind the house for example or the previously wooded lot next door is now a new construction site).
3. The neighbors' properties do not look maintained  (a junk yard next door, abandoned and boarded up properties, a Christmas display extraordinaire in June..)
4. Access problems: the owners or tenants were not aware of a showing, Fido who was supposed to be caged is clearly not in a cage, there is no key in the lock box.
5. Safety concerns. When we pull up to a property and the lockbox/door are open but nobody is around, we leave run. Fast.

As REALTORS® we use a lot of Real Estate lingo that makes sense to us but not always to our clients. Many of us have an alphabet soup behind our name or use abbreviations in our market reports and neighborhood spotlights.

One of the terms frequently used is absorption rate. But what is it exactly? And how can knowing it help you prepare?

The absorption rate is a measure that shows us how quickly Real Estate inventory moves. Calculating it gives us 2 important factors:

1. How long would it take to sell the current active inventory if market conditions remain stable and no new homes were to come on the market? Of course the latter is not realistic but the number of months is another indication of whether we are in a buyers', sellers' or balanced market.

2. Calculating the absorption rate for different time periods (previous 3, 6 and 12 months for example) gives us an idea if the market is stable, slowing or moving faster. This is a calculation required by all appraisers by the way and the information has to be included in the appraisal. A slowing market could result in a negative value adjustment.

How do we calculate the absorption rate? Let's take the Silver Spring, MD market as an example:

Number of homes active (as of 7/11/2014): 643

Number of homes sold over the last 12 months: 2666

Average per month: 222

Absorption rate: 2.91

Assuming that market conditions remain the same it would take less than 3 months to sell the current inventory.

What does that indicate? An absorption rate of 5 - 6 months is considered balanced, anything below that a sellers' market (appreciating values) and above a buyers' market (depreciating values).

The absorption rate for Silver Spring, MD Real Estate is 2.96 months when we look at the last 6 months and 2.45 if we consider the previous 3 months. Seasonal fluctuations are to be expected.

Knowing the current absorption helps set realistic market expectations and can assist with time planning. However, a fast absorption rate does not mean that Silver Spring, MD home sellers do not have to prepare their home for the market. When sellers make one or more of the biggest seller mistakes, it can result in longer days on the market and a lower sales price - no matter the market conditions. 

Silver Spring, MD Seller FAQ: What is the absorption rate and how can it help me?

When a Silver Spring, MD area home owner is preparing to list his vacant property, he sometimes wonders whether or not it should be staged. Staging has been a hot topic as of late but it may seem counter-productive at first glance.

After all, a vacant home has already been depersonalized and decluttered. There is nothing there that distracts from the product we are trying to sell.

However, it is not the goal of staging to decorate or clutter the house with stuff but to draw attention to its assets, create a warm welcoming home and to create feelings. Buyers are looking for a home, not just a house! We want them to walk into the home (better yet, drive up to it) and immediately fall in love with what they see. When buyers feel comfortable and at home, when they are wowed and love what they see, then they will be making an offer (and are less likely to low-ball it).

Staged properties also look much better in pictures. Just take a look at the above example, a townhome I listed in Clarksburg, MD. The response we received was amazing: Wow! This home is beautiful! Was this a former model home?

When we list your home for sale, your property will be marketed online through blog posts, single property websites, listings on 3rd party sites and social media. The problem is, the world wide web is a crowded marketplace, your listing will be competing with many others for attention. How can we make your home stand out? By showing it off in its best possible light, by preparing, decluttering and staging it, by making sure it is ready for buyers to fall in love! Pictures say a thousand words, wouldn't you agree?

If you are considering selling your home in Silver Spring, MD and beyond and would like to find out more about home staging, please contact me. I am an ASP® (Accredited Home Staging Professional) and can guide you through the process. I also have a network of ASPs® who can turn any vacant property into a welcoming home.

Silver Spring, MD Home Seller FAQ: Why shouldn't I sell my house as-is?

When you are getting ready to put your Silver Spring, MD home on the market, quite a few decisions have to be made: from choosing a brokerage & listing agent to showing instructions, from whether or not to allow listing syndication and 3rd party evaluations to filling out the property disclosure or disclaimer, from staging to whether or not you should list your home as-is.

As-is means that what the buyer sees, is what the buyer gets. You won't be replacing that 40 year old furnace or that stained carpet nor put in new triple pane windows. What it does not mean is that electrical, plumbing, mechanical items can be non-functional or inoperable.

Per the Maryland Residential Contract of Sale "All electrical, heating, air conditioning, plumbing (including well and septic), and any other mechanical systems and related equipment, appliances and smoke detector(s) included in this Contract shall be in working condition." (page 4, #21)

At first glance an as-is sale might seem like the most convenient solution for you, the seller. But once you consider the above paragraph, is it really? As-is doesn't mean including all broken down equipment - unless you can get the buyer to agree to strike the above paragraph.

Think about what message you are sending to the buyer as well: an as-is will always raise a red flag with buyers and buyer's agents alike.

They will walk into your home expecting to find (a lot of) things wrong with it and if nothing immediately stands out, they might wonder what you could possibly be hiding. Some will not even bother looking at your home because they expect problems, maintenance issues and/or a home in need of upgrades.

By checking that one little box, sold as-is, you could be losing out on the buyer, the one that could be bringing you the highest and best offer!

As a side-note, negotiations don't necessarily stop when the Contract For Sale is ratified. A counter-offer can be made to the buyer's repair request (you could offer to repair a few of the items or offer a credit instead) and you also have the option to declare the contract null and void if no mutual agreement can be reached.

Silver Spring, MD Home Seller FAQ: Why shouldn't I sell my house as-is? Because even an as-is comes with stipulations and because you don't want to raise a red flag and want to sell for highest and best.

*Blog post intended for informational purposes only. Consult an attorney if you are in need of legal advice*

Silver Spring, MD Home Seller FAQ Do I have to fill out the Property Disclosure? According to the Real Property Article of the Annotated Code of Maryland sellers are required to deliver a Property Disclosure/Disclaimer Statement to each potential buyer on or before entering into a sales contract.

Home sellers have to do one or the other, either fill out the property disclosure or sign the disclaimer. Regardless of which option is chosen, sellers have to disclose any latent defects. Latent defects are any material defects that are not obvious to a buyer during a visual inspection of the property and/or defects that could present a threat to one's health or could be found unsafe.

By signing "just" a property disclaimer statement the seller makes no representation as to the condition of the property. This does appear to be the easier route sometimes, however, when you put yourself in the buyer's shoes, wouldn't you want to know as much as possible about the property you are interested in buying?

The disclosure statement provides much more detailed information but only as much as the seller has actual knowledge of. It addresses things like the age and type of property systems, type, age & condition of roof, whether or not heat is supplied to all finished rooms, has there ever been any termite damage, are there any known structural problems, is there insulation in the attic ... 

Unless the sale is an estate, foreclosure, unimproved land, sheriff sale or new construction that has not been previously occupied, Silver Spring, MD home sellers are required to provide buyers with the Property Disclosure/Disclaimer Statement. The seller does not have to fill out the disclosure and can opt to sign the disclaimer instead.

However, when buying a Silver Spring, MD home wouldn't you want to know as much as possible about the home you are going to buy?

Silver Spring, MD Home Seller FAQ: Do I have to fill out the Property Disclosure?

*Blog post intended for informational purposes only. Consult an attorney if you are in need of legal advice*