Spring is prime time for the housing market

Spring is an optimal time to buy and sell, especially when temperatures are beginning to rise and snow is no longer in the forecast.

Jenny Morgan, realtor at Elliot Realty in Washington, said the housing market has been doing well for the last several years and because of the recent nice weather, she has even seen an increase in showings and listings.

'Nobody wants to move when there's three-feet of snow and it's 10 degrees or a holiday is upcoming,” she said of why spring is so popular.

For those looking to sell a house there are a few things that can be done ahead of time to help with a quick sell. Decluttering the space, even just for pictures can make a big difference, she said.

'People want to look at the house, not your things,” she said.

Morgan suggests organizing shelves and even cleaning magnets off the refrigerator. Although the perspective buyer is there to see the home, having a clean, organized home for them to look at can help.

Neutral paint colors on the walls are also recommended. Bright colors can be fun, she said, but are hard to tone down in pictures. A room that may be gold in appearance may turn out to be bright yellow in pictures and could turn buyers away.

Natural light is also a big selling point, she said, and suggests sellers open curtains to let the light in. Especially for pictures, this is an important step because that will be the first time a potential buyer will see the home and encourage them to come in and see it in person.

'If you don't love it on the internet you're not going to walk in it. We are really trying to get people to love it online so they'll step foot in the house. We focus huge on photography and giving them a picture of what it's going to look like before they get there,” she said.

On the outside of the home, Morgan said curb appeal is a big pull to get buyers inside. A quick fix she recommends is painting the front door to give the home a fresh look.

Minor landscaping and picking up leaves are also recommended.

'Do the last minute honey-dos that you always put off because people notice those things and it might just take you a couple minutes,” she said.

Upgrades can be beneficial but Morgan warns not to make them too custom. For example painted cabinets are trending now but may not be the taste of the next buyer. Instead she suggests buyers look into installing a fence for the yard or new windows because those are both items buyers are looking for.

For those looking to purchase a house while waiting for theirs to sell, Morgan said there are safety clauses that can be put into effect to assist. After speaking with a realtor and getting the property on the market, an agreement can be added that the home will only be sold contingent on the current owner finding a specific property.

'That allows them to say if they get an offer from a buyer, they are only entertaining that if they get the specific property that they have their mind set on,” she said. 'Most of the time it all works out and it's fine, but there's definitely a way to ease people's worry and give them that assurance that everything is going to line up and work the way it should.”

Morgan said contrary to popular belief, there are more buyers than sellers which means those with move-in ready homes have a better chance of selling. Most people are looking for move-in ready homes under $150,000 she said.

Flippers, those who are looking to take a property and upgrade it to sell again are still purchasing, but not as many. Ranch homes are also popular, she said, as well as homes with basements.

For buyers, Morgan said the average number of homes a person looks at before purchasing is eight to 20. That may seem like a lot, but she said buyers need several options so they can compare and contrast to see what is available for what they are willing to spend.

Most buyers have a three to six month time line of when they want to purchase a home, but that is not always feasible she said. It can take long or go by faster, but it all depends on how prepared the buyer is before it is time to submit an offer.

Meeting with a finance lender is key, she said, because it will allow the buyer to know how much they are approved to spend and will make the purchase process go faster.

'We always tell people to shop around and see who will give you the best deal,” she said.

Morgan said there are many first time homebuyer grants available as well as USDA or conventional loans that allow 100 percent financing with no down payment.

When speaking with the lender, she recommends buyers have a number in mind of what they are willing to pay a month for taxes, the house payment and insurance. This way the lender will be able to give them a price range for homes to begin looking in to.

Once financing is approved and the house hunting begins, Morgan said most people remember to ask about updates to roofs, windows and furnaces but forget to ask about the price of utilities.

'You can get into a house and get your fist bill in the winter and cry,” she said.

Morgan suggests buyers look up the home on Alliant Energy's website to see what the average utility cost is. This will allow the buyer to be prepared to factor those costs into monthly payments they will be making for the home itself.

As soon as buyers see a home they like, Morgan tells them to sleep on it to make sure but also to act fact.

'We are in a market where if there is a house that just gets listed, there are a lot of people looking at the same house,” she said.

The first step to submitting a bid is ensuring the buyer is preapproved. Next they will need to sit down with the realtor to go over the offer and supply earnest money, she said.

'That is money that goes with your contract to show you're serious about buying this,” she said. 'That money goes with the offer saying ‘I'm serious, I really want this' and you get that money back at closing but really it's insurance to show that it's not just paper. It's a contract and you have money involved.”

Once the bid is submitted closing costs come into play. These go directly toward the loan, she said and vary depending on the lender, which is why she suggests buyers shop around for a lender.

Most buyers request the seller cover these and they can range from $2-4,000 she said. The buyer needs to have a specific number for the seller to pay which can be alarming to some sellers, but Morgan said is usually minor.

'It's a new thing where a lot of new buyers don't have cash up front and ready so the $2,000 is hard for them to pay for at closing. If they get that paid for, they are not making a payment for sometimes six to eight weeks after they close so that lets them get caught up with all the moving expenses acquired,” she said.

Morgan said one of the most common mistakes buyers make is not visiting a lender first and doing the process backward. By first getting approved then house hunting, the process is much easier for both buyer and seller.

'The process goes so much smoother when people have all the work done ahead of time,” she said.