Friday, December 5, 2008
Warming up to making a holiday sale
Amid shopping for presents, attending holiday celebrations, and spending time with family and friends, who has time to buy or sell a home? The current housing market has been tough for sellers this year, and the holiday season brings its own unique set of challenges for homes on the market. The inventory of homes waiting for contracts grows as real estate transactions slow considerably in November and December.
Real estate experts predict that there will be even fewer folks in the market to buy this holiday season due to stricter lending practices and an uncertain economy. Couple those facts with the usual holiday slump, and some sellers may decide to take their homes off the market altogether until January.
"It's challenging because buyers and sellers are slowing down during the holidays because of conflicts with family and school commitments," said Sonatta Camara of Keller Williams Realty Inc. in Upper Marlboro.
She added that due to travels and out-of-town guests, some sellers choose to take their homes off the market during the entire holiday season or just during the weeks of Thanksgiving and Christmas.
Real estate isn't the only thing that hits the brakes during the holidays. Ms. Camara said that if buyers are working with a nontraditional seller such as a bank foreclosure or a short sale, banks slow down tremendously during November and December, resulting in a slower response time.
While having a for-sale sign in the front yard when everyone is focused on the upcoming holidays isn't ideal, Realtors agree that it's not all gloom and doom, either. Proper planning can lead to stress-free showings that could result in a signed contract before the new year.
Realtors offer mixed views when it comes to deciding whether to take an existing home off the market or list a new home during the holiday season. Tara Surlis-Kelly, associate broker with RE/MAX Leading Edge in Gambrills, said that although there are significantly fewer buyers during the holidays, she advises sellers to keep houses on the market because there are still buyers looking for homes.
"When you do get a showing, they are usually more serious buyers, and a lot of times they may have family in town and will bring them along for extra support," said Ms. Surlis-Kelly, adding that she prepares her sellers and tells them that instead of two people coming to look at the house, they may have six or seven people from one family coming to view the home.
She said that if a client is having a big family function, she just asks them to give her notice to not show the home during that time.
Charles Sullivan of RE/MAX Metropolitan Realty in North Potomac agrees and said that buyers looking at homes from Thanksgiving to Christmas tend to be very serious. "Sellers with nice products to show during this time frame often generate healthy traffic, inasmuch as many other sellers take the attitude 'I will wait until January to put the house on the market.'"
For sellers, a key determinant to getting their home sold is the number of showings. Mr. Sullivan said, "Someone who can't see your home will never be a prospect."
Some Realtors, however, have not found that buyers tend to be more serious around the holidays and say that in some instances, the buyers can be less serious. Ms. Camara believes sellers can end up with people looking at their home just because they have a lot of time on their hands since they're off work and the kids are out of school. She advises sellers who do have homes on the market to continuously "keep it warm and inviting" during the holidays. Realtors say that while the temptation is to turn off the heat when no one is at home, there's nothing worse than walking into a freezing cold house in the winter.
"Walking into a 40-degree home on a cold December day is a perfect excuse for buyers to turn right around and head for the comfort of their warm car," said Mr. Sullivan. "Cold homes equate to brief showings."
He added that vacant homes should be heated to at least 60 degrees. Mr. Sullivan also said that since it gets dark early, sellers should adopt the habit of leaving interior and front porch lights on to facilitate showings in the popular early evening hours.
"Cookies and sweet treats laid out for visitors encourage people to stay in the home a bit longer," according to Mr. Sullivan. He says that longer showings are good for the seller because potential buyers have more time to ponder what it might be like to live in the home.
Realtors seem to agree that holiday decorations are fine and can enhance the home's livability if they are tastefully done.
"Decorating for the holidays is a plus, as it makes buyers feel like they're in a home and not just a house," said Ms. Camara, adding that some houses can come across as very sterile during the festive season. She suggests having cinnamon candles in the house.
Ms. Camara suggests getting the decorations up in one day so boxes are not scattere). "Make sure it is clean and organized, maybe put presents under the tree and have light jazz Christmas music playing throughout the day."
Ms. Surlis-Kelly asks clients not to go overboard with the decorations. "I ask them to make sure every room stays visible and make sure that you can comfortably walk through each room."
Mr. Sullivan said to pay special attention to the dining room because many buyers, regardless of faith, harbor the notion of entertaining friends and family during the holidays.