As counterintuitive as it seems, the trends we’ve been seeing here in Central Massachusetts are accelerating rather than moderating. Housing is in short supply, and prices are continuing to rise at a surprising clip. Looking at data supplied by Zillow, here are the trends for Westminster and Princeton:
These price increases are due to a number of factors, but the two big ones are inflation in general, and more people wanting to move to our area than there are homes for sale. Secondary reasons for these increases are that even at these levels, central Massachusetts prices are a bargain compared to closer to Boston; and it’s hard to build new construction homes in this area, due to a lack of suitable land, zoning restrictions, wetlands, lots of preserved land, and strict building codes/regulations. Put another way, it’s a Catch 22: People want to move here for the same reasons that make it hard to build here, leading to a housing shortage.
Closely linked to inflation, the supply of homes for sale is severely constricted by older mortgage interest rates. People who already have homes, and were savvy (or just lucky) enough to refinance and lock in those long gone rates of 2.75%, have to have a really good reason to sell, as well as somewhere else to live.
So it’s an unusual and tight market, so how do you navigate it? Well, it’s sort of like the rules for a knife fight–-there aren’t any rules (a quote from an old Paul Newman/Robert Redford movie, Butch Cassidy and The Sundance Kid). Nevertheless, here are some guidelines, in this case for selling your home (listing your house for sale):
#1: You need a realtor.
This is like the old lawyer joke–”Any lawyer that represents themselves in court has a fool for a client”. You absolutely can sell your own house for sale by owner (FSBO), but it rarely pays off, and even in cases where it makes sense, like selling your house to your child, you still need to handle the transaction, with a real estate transaction attorney and/or an experienced realtor (this type of transaction typically isn’t commission percentage based).
#2: You need a very good realtor.
There aren’t a lot of barriers to entry to becoming a real estate agent. Basically, you just have to take a 40 hour course and pass a test, so since you are dealing with what is probably your biggest financial transaction ever, do your research. Ask around. Read through online reviews about any agents you’re considering. See if the agents you’re considering maintain a website with reviews or try Google. Most importantly, ask them what they are doing for that commission rate.
Professional photos? Staging? Having your house cleaned? Professional level guidance? Marketing? Ask them about their process. You’ll get a sense of what they care about more–you, or their commission. Think of it like a doctor–you want one who cares about you, not his income. In many professions like this, the fact a person cares is what leads to higher income, not the other way around.
I love when people want to talk through my process, and ask questions about what I do that nets them the most in the end. To be honest, when someone calls me and the absolute first question they ask after initial introductions is ‘what do you charge’, I think ‘they just don’t get it’.
Quick sidebar: We are in the market for a new accountant and we got a solid recommendation from a client of mine. We met with this new potential accountant and I intentionally didn’t ask him what he charged. I wanted to know what he can do for us. As we were walking out of his office after our initial consultation, solidly convinced that this guy is who we need, Jay said to him ‘we forgot to ask you what you charge’ … and I said ‘he’s exactly who we need and I have confidence in his process’. It turned out this new accountant wasn’t charging us any more than our current accountant, who wasn’t a match for us.
#3: Keep your eye on the ball.
This should actually be #1 on the list. Don’t confuse saving money with making money. Let’s say your house will list for $500,000 (to make the math easy). If an agent comes in and offers to do the transaction for 2.5% instead of 3.5% (these percentages are just examples and wouldn’t include whatever the buyer agent might get), but let’s say this agent simply lists the house online and doesn’t get much more creative than that, your costs are reduced by $5,000. But, what you’ve done is lowered the possibility for a much higher sale price, particularly in this market, because if the photos aren’t great, the house wasn’t staged and cleaned, and the marketing is mediocre, odds are there won’t be a lot of excitement around at your open houses, and certainly no bidding wars. It’s a gamble, but the odds are heavily in your favor if you hire the person who approaches your listing at a high level.
#4: Jay personally gets a kick out of looking at houses where the agent takes their own photos, doesn’t even clean up the place at all: toilet seats up, trash bags in the corner, clothes strewn on the unmade bed, countertops covered with all kinds of small appliances, magnets on the fridge, more clothes on the floor, lawn not mowed, and a bathroom photo with the realtor in the mirror….it’s funny as long as it’s not your house for sale.
Great service can be expensive; bad service can cost you a fortune in the long run.
–Ryan Serhant
Here are 2 client reviews I received this week:
“After our parents passed away last year, my sister and I inherited three properties (two in Fitchburg and one on Wyman’s Pond in Westminster) that needed to be sold. Living in North Carolina, I had to work remotely with my sister and the realtor, making good communication essential. My wife, a Realtor in North Carolina, suggested we interview several realtors. We included Jen Shenk because she had recently sold another property on Wyman’s for what we thought was a great value. After talking with everyone, Jen stood out above the rest. Jen provided excellent advice and assistance in preparing the properties for sale. Her marketing strategies were top-notch, and she recommended a stager who significantly enhanced the properties’ appeal. Jen went above and beyond, organizing an estate sale and coordinating the clean-out of our parents’ primary home. Her pricing and negotiation advice were spot on. Jen and her team hosted multiple open houses for each property, resulting in multiple offers and contracts on both properties after the first weekend. Jen’s communication was excellent throughout the process, keeping us up to date on every step. We believe all of her efforts helped us get top dollar for both houses. We have one more house to sell, and we’re definitely sticking with Jen. We highly recommend her!”
— Andre Fredette, North Carolina
“We recently had the pleasure of working with Jennifer Shenk from Keller Williams to sell our home, and we couldn’t be happier with the experience. From start to finish, Jennifer demonstrated professionalism, expertise, and a genuine commitment to helping us achieve our goals. Communication was seamless, Jennifer was always prompt in responding to our questions and concerns, keeping us informed every step of the way. Her attention to detail was remarkable, from staging suggestions to the marketing materials that showcased our home in the best possible light. We wholeheartedly recommend Jennifer to anyone looking for a top-notch real estate professional. Her commitment to client satisfaction makes her a true standout in the industry and a pleasure to work with! We also want to thank Jen’s transaction coordinator Laura Thomason, who helped with all the closing preparations. We are forever grateful!!”
–Theo & Ronel Willemse