Trying to sell a home in today’s market can be much like trying to sell swampland in Florida!  Sellers are having to fix up, price down, and sit and wait for their house to sell.  Sellers can offer incentives to try and sell their home but both buyers and sellers have to ensure that they don’t exceed the lender’s allowable seller-paid assistance.  In the end, the condition and location of the home are the major selling factors.  But, with the right incentives, sellers may be able to do less and get more for their home.  Bottom line is how low the seller is willing to go, incentives included, to sell their home.  Here are six of the most common incentives used by sellers today:

1.  Pay Points (Buy Down Rate)

Sellers can offer to pay mortgage points for a buyer.  One point is 1% of the loan amount, charged as prepaid interest.  Instead of having an interest rate at 6% for example, a seller could offer to pay points so that the rate is only 4%.  This can be huge for the buyer because it not only allows them to worry less about when they should “lock in” their interest rate but is also an indication to the buyer that they are basically getting better than the market rate.  In addition, the buyer is saving money over the life of the loan AND seller paid points are typically tax deductible when the buyer goes to file taxes next.  How many buyers could resist all of this?

2.  Pay Closing Costs

Sellers can offer to pay various costs in closing to entice the buyer such as taxes, title fees, and insurance.  Closing costs can range between 2-7% (according to Freddie Mac) so many buyers will be swayed by aid in paying these costs.  Especially if they’re struggling to make a down payment.  This has become almost expected by buyers here in Phoenix, as sellers compete in the market.

3.  Pay Toward Down Payment

A great incentive for buyers is having part or all of their down payment paid by the seller.  Especially for first time home buyers and those who just don’t have the additional cash.  Buyers should remember however, that they will probably end up financing the extra amount because in order to do this, the seller will probably be less likely to come down as much on the price.

4.  Buy A Home Warranty

Buying a home warranty for the buyer is a good seller incentive since it can include major things in the home such as plumbing and cooling and heating systems.  Those of us who live in Arizona know how valuable the cooling system is for example!  For just a few hundred dollars typically, the seller is offering the buyer peace of mind as well as incurring the cost of the warranty.  In these instances, the buyer may want to choose the home warranty company and should certainly understand the coverages and terms of the warranty.

5.  Pay HOA Fees

Sellers typically pay for HOA transfer fees and the like in escrow but they can also offer to pay for upcoming HOA dues and other HOA fees as an incentive to the buyer.  Here in Arizona as an example, HOA fees can include the transfer fee, dues, sometimes additional maintenance fees, and if there is more than one community association involved, this can double the fees altogether.  So the seller can save the buyer thousands of dollars in fees with just HOA costs alone.

6.  Pay Broker Fees

Sellers can also offer to pay for any broker fees associated with the buyer’s loan.  More than 90% of buyers in the market today are represented by a broker who requires a broker fee.  Depending on the price of the home, this can be pretty costly and having it paid for pretty appealing to the buyer.  Not to mention that by including this in the offer, the seller is also likely to have brokers showing their home more since a broker’s incentive will make the home stand out among the multitude of listings out there right now.

8.  Price Reduction

Reducing the price is probably the most common buyer incentive.  If a buyer is stalled between two similar properties, they will surely go with the one that is cheaper.  Sellers should definitely try other incentives first before reducing their price such as including an HD TV or some furniture with the house.  If all else fails, price will definitely be a good motivator.

When it comes to real estate in the past you’d always hear, “location, location, location” and that was the key to finding the right property.  Recently however, studies show that for today’s home buyers lifestyle options are now a higher priority.  Things such as health and safety, family-friendly neighborhoods, and cultural activities are the prominent factors for home buyers in buying their homes.  Not that location doesn’t matter anymore, but today’s home buyers seek a sense of belonging in a community as well as creating a desirable lifestyle with the home they buy.

Of people who were surveyed on the subject about 84% were homeowners and an additional 10 % had plans to buy within three years.
Here are some survey results:

•    Ease of commuting by car: 38%
•    Access to health and safety services: 34%
•    Family-friendly neighborhood: 33%
•    Availability of retail stores: 32%
•    Access to cultural activities: 21%
•    Public transportation access: 19%
•    Nightlife and restaurant access: 18%
•    Golf-friendly area–access to golf courses: 6%

For sellers this is an opportunity to target buyers based on their priorities and interests.  Much like a business who targets their market so they can build a brand and solicit to consumers, now sellers can do the same thing.

Often sellers focus on the upgrades and amenities in their homes.  Even though those things are relevant, any home can be upgraded.  Being in a great location near shopping, public transportation, or in a nice neighborhood is a huge plus and not always easy to find.

When showcasing a home, sellers should highlight these types of advantages.  Homes can be showcased in videos on social media sites and giving a taste of the neighborhood in a well-produced video can be a great marketing tool.  This type of storytelling can really increase interest in your home and, ultimately, the sales price.  Showcasing your home, neighborhood, and nearby restaurants allows potential buyers an opportunity to imagine the things that they would do if they lived in your home.  In today’s visual society many properties are viewed first, (and sometimes exclusively) on the Internet, so it’s worth making what buyers see online persuasive and valuable.  Seeing the home and what its surrounding area has to offer in a video is as close as buyers can get to actually experiencing it.  The next step is literally stepping into your home for a closer look.

A little extra effort and promotion to highlight what’s important to buyers may be just the ticket to make a sale faster and get you the price you’re hoping for!

Buyers may find more than one perfect home in today’s housing market but there are many challenges left in the home buying and selling process.  Following are 10 things to be aware of when buying or selling a home:

1. Undisclosed Items

Sellers should always share all information when selling their home.  The “411″ will inevitably come out and then the deal can fall through.  Problems will appear worse than they are if they are discovered by a buyer after they are in contract.

2. Large Buyer Purchases

Making large purchases while in escrow is a bad idea for buyers.  These type of purchases impact your credit score and can in affect impact the funding of the loan for the home.  Buyers are better off to wait until the closing on the home is final before they rush out to buy that new dishwasher or refrigerator and should stay away from additional revolving debt as well until they close on their home.

3. Problems With The “Ex”

A divorce needs to be final to avoid holding up the sale of a home.  Banks will want proof of the divorce so the seller should provide a divorce decree up front if the title to the home included both spouses.  If there is a pending divorce, spouses have to release their rights to the home in order for the sale to occur in just one name.  In general, all title issues such as an HOA lien, should be cleared up right away when selling a home.  Otherwise, major delays can occur.  The title company should provide a preliminary title report and the seller and their agent should review it promptly and tie up any loose ends.

4. Permit Problems

Many cities have implemented pre-sale inspections to address any permit issues.  In many areas, additions or remodels have stopped a sale.   If city inspections are required, they should be obtained in advance and any requirements should be cleared up right away.  This can be time consuming in some instances, so the sooner the better.

5. Inspection Issues

Inspection periods can reveal many issues that will cost time.  It is not uncommon that a deal is moving along smoothly – until the inspection stage.  It’s advisable to get inspections before the property is actively on the market.  Buyers will probably still get their own, but at least serious issues can be resolved that will avoid losing a buyer toward the end of the process.  Unaddressed repairs will surely come out in the inspection and cost not only time but money on the seller’s part.

6. Appraisal Nightmares

Appraisals are no longer an informality.  The days are gone when the appraisal comes in right where it needs to.  Ensure up front that the lender has a qualified appraiser.  When possible, agents should accompany the appraiser when they do their appraisal of the property.  Sellers and buyers should be prepared in advance that the purchase price may have to be renegotiated or a higher down payment may be involved in if the appraisal comes in low.

7. Rule Changes From Lenders

In today’s repressed market, lenders are more thorough and demanding than ever.  Their demands and rules can often be the thing that holds up the sale/purchase.  Unfortunately, there is not much that can be done to avoid it other than working with a reputable mortgage broker or lender.  Buyers should leave their loan contingency in place until the loan is funded.  If market conditions don’t permit this, buyers need to be aware of the ramifications if the loan doesn’t fund.

8. Banks Changing The Rules

If the property being purchased is a short sale, the bank holds all the cards.  Short sales for example, can take upwards of a year in some instances.  The buyer doesn’t care what the buyer or seller’s timeline is.  Buyers must have realistic expectations when buying, especially when buying repressed properties.  Education about the process is key and buyers should work closely with their lenders to lock in their desirable loan terms and keep them long-term.

9. Fixtures and Personal Property Problems

For some buyers and sellers it can be difficult to distinguish between personal property and things that are affixed in the house and are to remain.  Try to avoid disputes over fixtures and personal property.  Buyers and sellers should be educated about the difference between attached appliances and personal property.  If something is really special to a homeowner, sellers should remove it before the house goes on the market.  If this isn’t possible for any reason, it should not be included when the offer is written or on MLS.  Buyers should be aware of what’s in the house and include any items that are important to them as well.  This negotiation should be done up front so as not to hold up the deal.

10. Ownership Questions

Easements and the like can become big issues during the buying/selling process.  Lot lines, shared driveways, and fences are common stumbling blocks in a transaction.  The preliminary title report should point out any issues like this and they should be dealt with right away.  Legal descriptions may not be easy to read, but should be thoroughly reviewed and understood up front.  Title companies should explain anything unusual and have it addressed.  Sellers and buyers can also go to the city or county courthouse and review the items on the title.  For instance, if there are questions about lot boundaries, a survey can be performed.

In the end, it pays to get as much information up front as possible and address any of these issues that can arise.  Otherwise, what seems like a great deal that should have a smooth transaction, can turn into a nightmare!

Foreclosures

Foreclosures have been at the forefront of the real estate market, no doubt, but on the other side of distress is opportunity – for those who are able to take advantage of it.

In Phoenix there has been a steady flow of foreclosures averaging about 4,000 units per month and buyers are grabbing them up.  While bank owned homes make up a small percentage of active homes, they make up the largest share of sold homes – around 40% depending on the month.

Investor Role

Investors have played a large part in purchasing these properties, first as regular purchases and now at auction.  In 2008, only about 5% of the properties sold to third parties were trustee sales but that number has been gradually increasing for the last three years.  In Phoenix alone thus far for May, 2011, distressed home sales incorporated 63.3% of sales.

Pricing

Generally people are under the misconception that buying a short sale or a foreclosure will allow for a substantial discount on the listing price but this is often not the case.  The property has to be sold for what is considered a reasonable market value and that would mean in comparison to other homes in the area and would also take into consideration the condition of the property. 

Banks are out to recoup as much of the loss as possible on a foreclosure for their shareholders and investors.  For the most part the listing prices of bank owned homes are already discounted, that’s why they are having such a detrimental affect on traditional sales and the market prices overall. 

Distressed sale prices are closer to listing prices than regular sales at this point in the game.  In Phoenix from the beginning of 2010 to the end of the 1st quarter of 2011, while regular homes have been selling at 95.5% of the list prices, foreclosures are selling at almost 98% of their list prices.  This is happening in most other markets as well, not just in Phoenix.  (Note:  that this is considering the final list price, not the original list price).

Notably, in a highly distressed market buyers are a lot less likely to get a bank to negotiate on price than they are in a less-distressed market.

In some markets, banks are putting homes up for sale at well below the market value, which encourages multiple bids and average sale prices that are higher than the list price.  Various trends show distressed listings were more than twice as likely to sell for over list price than non-distressed listings.

Distressed Doesn’t Mean a Steal

So if you’re thinking about taking advantage of the distressed part of the market, you should consider that distressed doesn’t mean a steal.  Don’t expect to unrealistically negotiate.  And remember, the more distressed your market is, the better the banks are at pricing homes compared to their owner-occupied competition.  If you’re seeing a lot of distressed homes for sale in your market, chances of negotiating a better price with the bank are not good.

This wave of foreclosures and short sales isn’t likely to disappear anytime soon, so if you’re thinking of taking advantage of it, plan your offers accordingly!

Selling a home can make you feel vulnerable to both the agents who show your home and potential buyers rummaging through your things while you’re not there. It is not easy to let people go through your home that you don’t know, and the worst thing is to get numerous showings without an offer.

If you are not getting offers after a certain amount of showings, there is usually a problem. In order to combat this problem, a good listing agent will ask buyers agents for feedback on how their showings went.

Does your agent seek showing feedback?

Not all listing agents will try to get feedback on showings and I believe these agents to be lazy. As a listing agent it’s our job to do the best we can for our clients. Getting feedback from the buyers agent should be a high priority to service our clients best interest. If you’re not getting feedback from your listing agent, you need to have a talk with them. See if they can setup some sort of system to inform you of any negative or positive comments by other agents.

What’s the point of showing feedback?

This can be an effective way for a listing agent to inform their sellers of market conditions. But the number one reason showing feedback is important is for you, the seller, to get the information you need to get your home sold.

It’s a competitive market out there, and if you can accept the feedback with an open mind, you have a better chance of making your home the best out there. Selling feedback gives you actionable insights into a buyers mind, and you can act on those insights to get your home sold.

How to deal with negative showing feedback

Showing feedback is a necessary evil. You will get negative feedback on your home and it’s going to hurt. You can’t take this personally. If 4 out of 5 buyers say they don’t like your wallpaper that you love, maybe it’s time to remove it and paint the walls with a neutral color. If buyers say they don’t like the pet smell of your, understand that some people are very sensitive to pet dander, and you may need to ship fluffy off to a friends house while your home is on the market.

Negative feedback should be taken as constructive criticism. In my years as a real estate broker, every time I have gotten negative feedback I’ve used that to help my seller get their home sold. It’s not personal, these buyers don’t know you. Take the advice of your agent and deal with any negatives on your property to the best of your ability. Some things you can’t change, but those that you can such as wallpaper or removing pets should be taken seriously if it’s affecting the sell of your home.

Not all agents will give you feedback

Selling a home is stressful and not knowing what’s going on when buyers view your home can be extremely frustrating. Some agents out there will not give feedback on their showings. Some say it could potentially hurt their buyers interest, while other agents just don’t have any.

Not every agent asks their clients the right questions when showing homes so they simply don’t have anything to tell you. Other agents are just uncooperative and refuse to answer their phones. Whatever the reason, you can’t expect feedback from every showing, so don’t let it bother you to much.

The best feedback is an offer

If you take all of the considerations of your showing feedback to heart and do the necessary things to adjust to what buyers want, you’re going to get an offer. An offer is the best feedback you can get, as it shows you your home is desirable.

In a buyer’s market showing feedback is extremely important if you’re getting showings but no offers. Problems that contribute to a home not selling are usually fixable such as price, condition, and terms. If buyers are complaining about these three attributes of your home, do something to combat the problem and you should be selling your home in no time.

Guest contributor: Lisa Udy, a Farr West Utah real estate agent servicing both Davis County and Cache County in Northern, Utah. You can read more by Lisa by visiting her website.

Arizona real estate purchases are increasingly popular with Canadian buyers. Technology has allowed for those who are not even at retirement age yet, to shop for real estate from afar and ultimately join Arizonians for perfect weather, golf, and so much more.  Summers can be spent at home in Canada while winter can bring the gorgeous sunshine and pleasant temperatures of the Valley of the Sun. 

Second Home

Arizona’s real estate, including Phoenix, Scottsdale, and Glendale area properties offer great second home investment opportunities for Canadians.  Due to the recent recessive years in the Arizona housing market, the state has many low priced homes, foreclosure properties, and short sales for experienced, savvy real estate investors to grab onto!

Recreation and Sophistication

Whether Canadian investors are looking to relocate to a climate with 325 days of sunshine each year or just acquire a second home, Phoenix properties offer a great mix of outdoor recreation opportunities and metropolitan sophistication.  The beauty and individuality of the Sonoran desert is unlike anything on the Canadian continent. Phoenix area golf communities offer more than over two hundred golf courses as well as low maintenance homes and landscaping and neighborhood amenities such as pools, community recreation centers, and great dining and entertainment options.

Phoenix is Growing

Phoenix is the fifth largest city in the United States allowing residents access to many different terrains as well the urban economic opportunity and social life of a great metropolitan area.  However, some investors have no intention of moving to the area but rather simply want to take advantage of the over fifty thousand people who are moving to the area each year.  

Rental Properties

With properties available at about $50 a square foot, Canadian investors can get a phenomenal deal on real estate in Phoenix and the surrounding areas.  Utilizing the property for rental income can provide a revenue stream that can be managed by local realtors or a Phoenix AZ property management company.  For Canadian investors, home can be wherever they choose while they have Phoenix properties they own working for them to generate monthly cash flow.  Relocation, rental properties, or second homes in these communities are all great opportunities for Canadian people who wish to buy property in Arizona.  Phoenix area realtors can offer a listing of Phoenix real estate that will entice potential Sun Valley residents as well as investors located from western Canada to the Eastern seaboard.

Great Properties to See

• Scottsdale Ranch: click here
• Troon North: click here
• Terravita: click here

Selling a home in today’s market is difficult enough without making unnecessary mistakes.  Following are 9 tips to selling your home in a timely manner at a fair price:

1. If your agent tells you that your house needs cleaned, rather than take it personally, you may want to get out your white glove.  The impression of the home is greatly affected by the cleanliness and appearance. A dirty home is certainly likely to sit longer than a spotless one.
2. Be sure to keep your home free of clutter. Have things organized and neatly put away.  Again, clutter and uncleanliness are sure to only lengthen the time your home is on the market and gives potential buyers a bad impression.
3. Make sure you list your home at a fair price. Potential buyers have likely just sold a home themselves or have one on the market.  They can also easily get information on comparable homes in the area.  Not to mention, you never know who you’re dealing with.  Your potential buyer could be an appraiser or work in the real estate industry themselves!
4. Be discrete about why you’re selling. Advertising that you’ve lost your job or have problems with your neighbors is just a way to shoot yourself in the foot.  If the buyer knows you are in a pinch, they will surely try to take advantage of that fact when negotiating the price.  And who wants to move into a neighborhood you want to move out of?  This is definitely one of those times to be “tight lipped” and think about what you say and to whom.
5. If your house has been on the market for a long time, be sure to keep your pictures and information updated.  Changes in weather and conditions of the property are hard to hide in actual pictures so make sure you keep them updated online and otherwise.  If your house appears to be sitting for a long time, even if it’s because of the market, the first thing the buyer may think is, “What’s wrong with this house?”
6. Try to avoid leaving out things that indicate potential problems with the home such as ant traps or rodent poison.  This is like advertising that you have a serious problem and your buyer surely doesn’t want to inherit that.
7. Be smart when you are preparing to sell and be willing to put a little work into it.  Buyers may decide that the red wall in the living room just won’t match their furniture and if they’ve seen five other homes that have neutral colors, they have no reason to accept the red wall.  Also reconsider any out of the ordinary things such as a bright pink bathtub.  The time and money you spend to change such a thing could mean a much quicker sale or getting a much better price for your home.
8. If your house has been on the market for a long time or had very little interest with substantial advertising, you may need to consider a price change. Sellers can certainly have pride in their homes and judge its worth accordingly, but being unrealistic about price only keeps your home on the market.
9. Consider minor upgrades to your home.  Selling your home will be easier if yours is the only one in its price range with an alarm system.  The few hundred dollars you spend could be the deal breaker for your sale.

It’s already a buyer’s market out there folks, so try not to make it harder on yourself.  Considering these small but significant things can mean the difference between selling your home or having it on the market indefinitely.

Reasons for Price Declines

An article based on Standard & Poor’s/Case-Shiller 20 city home price index released in January, 2011, reflects home prices dropping yet again in the nation’s largest cities and price drops are expected to continue as fewer people purchase homes and foreclosures dramatically increase.  Most experts expect these price declines to continue through mid 2011 with prices decreasing another  5 to percent on average.  The worst price drops are predicted to  happen in cities with struggling economies and the highest foreclosure rates such as California and Arizona.  Increasing  foreclosures pushed the median price for a U.S. existing home to $158,800 in January, the lowest level since 2002, according to the National Association of Realtors (NAR).  Simultaneously, sales climbed 22 percent from October and mortgage rates started to rise from record lows in November.  When you add to that the excess supply of homes on the market, even more price decreases are imminent.

Waiting for Buyers

According to Trulia, Inc., a company that tracks how many homes listed for sale in a city have had a price reduction while waiting for a buyer, sellers are still lowering prices to sell their homes.  In Arizona for example, Mesa and Phoenix have both seen enormous changes from year to year.  Both cities had a 28 percent score a year ago with Trulia, but this month they hit 43 percent and 42 percent, respectively.  In San Francisco, California, 29 percent of listed homes have had a price cut with an average price reduction of nine percent.  In Oakland, 25 percent of listed homes are cheaper than when they were first listed with the average price cut there at 11 percent.

Fannie Mae Prediction

Fannie Mae, the largest mortgage-finance company, forecasts home prices will fall further this year and sales will jump.  Discounts on foreclosed properties are eroding the values of other homes, making houses more affordable and opening the market to more people.  An ongoing increase in sales may signal a bottom in values as prices fall to levels buyers can’t resist.

Tax Implications

Prices are falling again after fluctuating in 2009 and 2010 because of the federal tax incentives for home buyers.  The credits cost $16.2 billion in tax revenue, according to the Government Accountability Office in Washington.  One opinion has it that the tax incentives are why we are seeing such dipping prices and that without the tax credits, prices would not have been so unstable because they would have decreased straight to a bottom and we would be in recovery by now.

Worse Than The Great Depression?

Prices have fallen for seven straight months currently and are 31 percent below their 2006 peak, according to the NAR.  The decline has exceeded the 27 percent price drop from 1928 to 1933, the worst years of the Great Depression, said Stan Humphries, chief economist of a Seattle-based real estate data company.

Existing home prices which are measured on an annual basis, will likely decline an additional 2.2 percent in 2011, according to Washington-based Fannie Mae. The median price for a new home may drop 2.4 percent, the company said in a February forecast.

In discussing how your home for sale will be marketed, don’t be surprised if your real estate agent tells you there won’t be an open house. Once a tried and true method for showcasing a listing, fewer than 28 percent of homes for sale were opened to the public in 2000 according to the National Association of REALTORS®.

Why the Change?

The simple explanation for this change in marketing techniques is the dominance of the Internet. Prospective home buyers like looking at listings in private, viewing photos, comparing properties on their own, and taking virtual tours. They have neither the time nor the inclination to drive around to open houses, and in a world where gasoline prices are headed steadily north of $3 a gallon, that attitude will only become more entrenched. Modern home buyers tend to be highly focused animals.

There is also the sad truth that open houses are not always safe either for agents or homeowners. Thieves can use the event to “case” a house and agents place themselves in a vulnerable position sitting in an unlocked home by themselves for hours at a time. Most real estate offices will hold a “preview” of a new listing for their own agents to familiarize them with the property, which maximizes the home’s exposure with a group of professionals in a position to actually get the property sold.

Properties for sale are placed on the local Multiple Listing Service with a set of interior and exterior images. These will generally be augmented by a fuller collection of photos on the agent’s own website. Homeowners will want to discuss the option for a virtual tour and how the agent will use his or her own network of contacts to work the listing. Agents will also outline the process by which the homeowner will be contacted when a prospective buyer wants to see the property. In theory these appointments are scheduled well in advance, but last minute showings are common and an inconvenience the homeowner simply has to accommodate as part of the sale process.

For the Better

Thanks to the influence of the Internet, the marketing of any home today is a combination of old and new methods. In that shuffle, the open house has fallen by the wayside in favor of surfing properties online. Most agents agree this is actually a positive change, allowing buyers to use their time and that of the real estate professionals involved in looking at properties in which they are really interested. This is more effective and more efficient than an open house and much safer for all concerned.

Guest contributor: Are you relocating to Dallas, buying or leasing a home in Dallas | Fort Worth Texas (DFW)? Darrell Self can help you if you’re shopping for homes for sale in University Park. And you can find Darrell Self on the real estate website Trulia. Visit DMD Realty DFW.com and browse ALL the homes for sale (and ALL the lease homes) listed in the MLS on 1 website … no registration required.

Whether in Phoenix, San Diego or Miami, making properties sell and move in a challenging market takes more than luck. Hesitant buyers can be swayed with good first impressions and improving a home’s features like window treatments can be one smart way to do that. Sellers should be encouraged to check the home’s window coverings and make sure they’re looking presentable and clean. The way windows are displayed or covered can also dramatically change a buyer’s perception and the room’s atmosphere. Specialty window treatments that help improve a home’s energy efficiency or provide automated convenience are attractive upgrades to consider for improving a home’s value, too.

Window Coverings

The first thing is to review the conditions of existing window coverings. Determine whether they need cleaning, repairing or complete replacement. Unless a home has been abandoned or abused by poor tenants, most will be found in good condition and just need some feather dusting and light vacuuming. Look for the fabric’s tag for particular cleaning instructions if washing is required, but ironing and machine drying should usually be avoided since they tend to warp the material. If the window cord or chain is jammed or there is a damaged blind vane, contact the manufacturer or a local window treatment shop to ask for help repairing the window shade and finding replacement parts. If the window covering was purchased in last few years it may also still be under warranty. The blinds or drapes may be too damaged or dirty to repair or clean, and then it might be a good idea to look at installing replacements before showing the home to prospective buyers. It can also be a good opportunity to install new shades that will add to the home’s value with practical benefits like energy saving cellular shades that help insulate or with motorized shades that can be remote controlled for ease, which is also a nice way to impress visitors when showing a home.

Some believe it’s better to remove window coverings entirely to have an open look. This works in some cases with large modern windows and beautiful views, but it’s usually more beneficial to have a functional and attractive window covering in place and not leave that burden on a buyer’s mind. Simply pull up the shades or blinds and use tiebacks on drapes to create the same open effect with the additional decor. Imagine a painting without a frame or a stage without a curtain, they’re just not the same, and neither are windows without window coverings. Some homes don’t have the most appealing views and would be better presented with windows completely covered. Covering windows to highlight indoor lighting features and create a cozy sense of privacy is also a good idea. If you have smaller rooms, opening the window coverings is a simple trick to make cramped spaces feel larger and more spacious.

Since you can’t predict what individual tastes in style will be, it’s always safer to use more subtle and neutral colors that are more widely accepted. This is usually less expensive than choosing bold styles and colors. Nice welcoming window treatments that work to create space and not be too distracting will help a home look better and adding function to decor will give an even bigger advantage when trying to sell a property.

Guest contributor: Tom Vatury is a writer for the windowtreatmentstalk.com blog and has over 10 years experience working with window coverings in the real estate and interior design fields.
Image credit: CileMontgomery