Q & A with Dottie Herman

---

Q1 - I am going to put my property on the market. It is very 80's and nothing has been updated in years. I have a limited budget to fix up the home before I put it on the market if you think it will help it sell faster at a higher price. There is a lot of inventory in my area so I am unsure what to do. If I am able to fix one or two rooms, where will I get the largest return in my investment?

A - Consulting with a real estate professional that specializes in your neighborhood can be an excellent resource. Often just de-cluttering your home, putting up a fresh coat of paint on the inside and out and making sure your garden is flourishing, will increase your home's marketability. No matter how extensive a renovation you do, many buyers will not be happy with your choices. It could be helpful to the marketing and later negotiating process to get some quotes on what renovating a bath and kitchen will be.  Pricing your property correctly is key in today's marketplace.

---

Q2 - If I am thinking of selling my house as a FSBO how do I go about setting the price? How would I see what other homes in the area are selling for? Is that how I should begin the process?

A - It is important for you to familiarize yourself with comparable properties currently on the market in your neighborhood. It is also important for you to have data on the properties that have recently sold and closed so that you can offer your home at a realistic asking price. Doing an internet search can save you a lot of time in acquiring the information you need. In addition, visit the Real Estate section of publications on line, such as nytimes.com and the various search engines (such as Yahoo) which will provide you with up-to-date information.
If you are not fully committed to taking on the marketing and sale process yourself, it is always advisable to consult with real estate professionals who specialize in your area. Top Brokers will be able to provide you with all the data so that you can make an informed decision. In addition, their skills in marketing, qualifying and negotiating can be key to a successful transaction.

---

Q3 - I am thinking of putting my home on the market for sale and also putting it on for rent. However, if someone were to rent it I would want it to be a short term rental and then they would have to purchase the home. Someone was telling me about a rent to buy option. How exactly does that work?

A - Renting with a purchase option can be complicated and it is best for you to consult with your Real Estate Attorney and Real Estate brokerage professional. Issues such as establishing a price and purchaser's financing must be worked out from the circumstances you describe at the time of the rental and that may be difficult to do. Proceed with caution. If someone wants to purchase, why would they want to wait six months when mortgage rates are still at an all time low?

---

Q4 - My friend just sold her home for $25,000 over asking price. She said she listed her home low, and got a lot of activity, and then had a bidding war. I am going to put my home on the market in a few months - is this a good strategy to employ?

A - What works in one market may not necessarily work in all markets. Before you can determine a pricing strategy, you need to ascertain comparable listings currently on the market in your area. If there are few or none, then you don't have to "under price", but if there are many, then under pricing can be an excellent way to create demand, often resulting in a bidding war.

---

If you have a real estate question for Dottie, please send it to; Reporters@WorldPropertyChannel.com

---