This is the first in a series of articles that talks about key elements surrounding real estate transactions, as we see them.  In order to understand something like real estate investing (which is what you do when you buy a home), you must break it down to some simple elements, see how they fit together and develop a plan that helps you come out ahead when you sell down the road. We believe that successful real estate investing is part Art, part Science and part Timing.  You can also think of it as a three legged stool.

Let’s explore the Art of real estate.  There are two main elements are: ‘beauty is in the eye of the beholder’ and ‘the art of the deal.’  What a home looks like when a buyer drives up is critical.  If they are a typical buyer, they have too much to do in their lives to do lots of fixing.  They want to drive up to a home that is nicely landscaped and they can see if it is easily maintained by themselves or a landscaper.  The other kind of buyer is happy when the house looks shabby because they feel that they can build instant equity by fixing it up.  These days, there are fewer of these buyers around. Except for more wealthy clients, most people need two incomes to purchase a home, their free time is important to them and they don’t want to spend all their time working in the yard.

On the inside of a home, how it looks is also critical.  If it is neat and tidy, the buyer automatically assumes that it is well maintained. If the paint is poorly done, the cabinet doors are scarred or it isn’t very clean, a buyer gets suspicious about maintenance and what they can’t see.  If there are stains on the ceiling, the roof may leak and if a seller hasn’t addressed it with a repair or new ceiling paint, the buyer gets a negative message about maintenance.  On the other hand, this is what an “investor” is looking for. An investor can see the difference between cosmetic problems and structural problems and make an offer accordingly. 

The moral of this story is, make your home as attractive as possible in this market.  Buyers have lots of houses to choose from, you want the majority of buyers to want your house and pay the highest price the market will support.  Next week – the Art of the Deal. How win-win is the best strategy for getting the house you want at the price that will work.