Sell your home to yourself

This article is from Lifetime Products:

As you look around your home, it’s hard not to notice all the minor flaws. Maybe you want to move to something bigger and better, but your realtor thinks you’re better off staying put for a while. You don’t have to wait out the market in a house that makes you cringe. Instead, real estate expert and author Loren Keim offers a few simple tips to help you turn a flawed house back into your (temporary) dream home: 

Honey Do It Now- As you walk through your home, you’re bound to see little things that have been on the “honey do” list for years: the dripping faucet, broken closet shelves, ugly caulk in the bathtub. Set aside one weekend to tackle all these minor repairs; the house will instantly seem newer, and when it does come time to sell, you’ll already have these things completed. 

Treat Your Windows- Send those dated mini blinds packing. New curtains, drapes and modern blinds may be the quickest, easiest and least expensive method of changing the entire look of a room. Old or worn window treatments can make a room look drab and dated, but a bold new style or color can instantly update a room. 

Splash of Color- A home can be completely transformed by the addition of the right colors. A fresh coat of white paint on the ceiling brightens a room and gives the illusion of height, while bold wall colors drastically change the look of an entire space. Paint wall and door trim in a contrasting color to make it stand out, or match the wall color to blend into the background. Beware: dark colors generally make rooms feel smaller and liberal applications of wallpaper tend to make a home look old. 

The Grass Is Greener- Most realtors will tell you that beautiful lawns help sell homes because they make an entire house look new and fresh. Give your lawn an inexpensive makeover by trimming bushes and trees, weeding the garden and planting colorful flowers. Additionally, remove any large plants that hide the home’s facade and add new mulch to flower beds to really make the exterior pop. 

Spread Out- A major reason people move is for more storage space. However, you can add hundreds of square feet of storage to your current property with an outdoor shed from Lifetime Products. These sheds are weather-resistant, lockable, ventilated and they cost a mere fraction of what you’d spend on a home addition. They also have decorative shutters and a wood grain finish, so they’ll look great in your newly-manicured lawn. 

2:04 PM - Nov. 2, 2009 - comments {1} - post comment

How to compete against foreclosed properties

With distressed sales accounting for half of all home sales, many home sellers are finding that traditional sales are competing with discounted prices offered by foreclosed properties and short sales in their local area. To help home sellers attract buyers and compete against the discounted prices offered by distressed properties, ForSaleByOwner.com offers the following tips and advice:

Price the Home Correctly: Home sellers need to price their home according to today’s market and not based on the high price that a neighbor might have received a few years ago. Your Realtor can help you price the home to sell quickly.

Market the Home More Effectively: Traditional home sellers have access to more marketing channels than distressed properties, since not all distressed properties are found on the Multiple Listing Service (MLS), or by popular websites like Realtor.com. Traditional home sellers, with the help of their Realtor,  can market their properties with these resources to reach a larger audience of buyers than financially distressed homes.

Keep the Home in Top Condition: Foreclosed homes are typically in disrepair and are in need of some repair or renovation after having been left vacant. It can easily cost a new owner tens of thousands of dollars and months of work to get the home back in shape. A home seller should stage their home to give it the appearance of being in “move-in” condition. The house, as well as all closets, should be kept clean and free of clutter to create the appearance of a more spacious home. Sellers can make their home stand out by doing things like landscaping the front yard to improve curb appeal, replacing worn-out carpets and old appliances, applying new paint in key interior rooms, and tackling other minor home improvement projects.

Offer a Quick Closing: An advantage of being a conventional home seller is being able to offer a quick closing, often an advantage for buyers who wish to move quickly. Distressed properties can take many months to reach a closing date. Sellers should be prepared to offer a 30-day closing date to attract buyers who want to move quickly.

Qualify Interested Buyers: Nothing is more discouraging than spending weeks with a prospective buyer, only to learn that he or she is unable to obtain a mortgage. To avoid such situations, your Realtor should make sure that your buyer is pre-approved for the loan amount necessary to finance the purchase of your home.

2:29 PM - Jun. 9, 2009 - comments {0} - post comment

Getting ready to sell

As the all-important spring selling season approaches in an historically slow housing market, sellers need to do all they can to market their home - and that includes staging it to attract and “wow” potential buyers. Home stagers know just the right moves to take a house from bland to grand and bring home the biggest return on investment. “Attention to detail throughout the home can make the difference between a house that sells and one that sits on the market,” explains Kate Hart, one of America’s top home stagers and owner ofHart & Associates Staging & Design. 

“In particular, improvements to the kitchen and bath - the two rooms that sell a home - will always help bring in the buyers.”

Kate Hart shares some easy, effective home improvements and tricks of the trade that can make a big change without breaking the bank, and all the difference in selling and enjoying a home.

Curb appeal: First impressions are everything, and this has never been truer than in today’s market. To leave a positive impression on buyers, take care of any exterior maintenance issues before buyers arrive, such as power washing walkways and patios, cleaning your gutters, touching up peeling paint, replacing broken light bulbs, edging and mulching beds, and adding fresh annuals. Some free things you can do include polishing your front door hardware and sweeping away pesky cobwebs.

Kitchen: Give your kitchen a mini facelift on a budget by repainting your cabinets instead of replacing them. For a more contemporary look, consider a semi-gloss espresso brown. For a more traditional look, opt for a semi-gloss creamy white. Complete the makeover by adding new hardware. Considering professional help? Ask your local painter if they can spray a lacquer finish on your cabinets. This treatment is more expensive than painting the cabinets yourself but the result looks like a factory finish.

Bathroom: Give an outdated bath a pick-me-up by replacing your existing lighting, faucets and hardware with updated styles.

Bedrooms: Take your bedroom from lived-in to luxurious by creating a headboard that gives your room a more complete look. Measure the width of your bed and determine the height you prefer. Purchase a ¼ inch piece of plywood fitting these dimensions (ask the store to cut if for you) and cover it with 2 inch foam that fits the dimensions you selected. Wrap the foam and plywood with batting that can be purchased from a craft store. Finally staple gun a fabric of your choice around the headboard you’ve created. You can then hang the headboard behind the bed on the wall as if you were hanging a piece of art using “D” rings and hooks or attach it to your bed frame using bolts and washers.

Family room: Make your fireplace or great view the selling feature, not your entertainment center. Chances are your family room is currently centered around the things you do everyday, such as watch TV. Before showing, rearrange your room to showcase the architectural focal point of your family room.

Dining room: Keep the dining room de-cluttered and streamlined so buyers can imagine how they can enjoy this space with their families. Before showing, make sure to remove any knick-knacks and extraneous items from your china cabinet or sideboard. A rule to follow: pack up any items that are smaller than a softball such as salt and pepper shakers, wedding cake toppers, and small figurines.

Living room: Make sure you are selling your space, not your stuff. Before showing, remove any family photos from the mantle, end tables and bookcases. Give this space a less cluttered look by keeping no more than three items per surface. For example, go with a piece of art and a pair of candle sticks on the mantle instead of your favorite collection.

“It’s important to complete all your improvements before your home goes on the market because as the saying goes…you never have a second chance to make a first impression,” continues Hart. “And once the sign goes up, you need to keep up the clean, de-cluttered look because you never know when you’ll have a showing. It just takes one buyer to sell your home.”

5:42 PM - May. 12, 2009 - comments {0} - post comment

Should you go FSBO?

This article is by George W. Mantor, contributor to RISMedia.

Pronounced “fizzbo,” an FSBO (for sale by owner) is a Realtor acronym for a property that an individual is looking to sell on their own.

To a certain extent, the notion may be driven by tough economic times. With equity evaporating in many markets, it might be a necessity for some sellers to go the DIY route. It is a question brought about by the perception of high cost for very little real work and a nagging sense that, hey, maybe I could do that.

Maybe you can. Maybe you shouldn’t.

The market, motivation, familiarity with the process, knowledge of real estate law, disposition, time, and resources should all be considered before you begin the process of selling your own home.

The Market

They don’t call them buyers and sellers markets for nothing, and, to a large extent, market conditions are often mostly local. A gripping nationwide recession, industry-wide job losses, and lenders’ unwillingness to lend, tend to have nationwide implications. But, even at the darkest of times, there are pockets of prosperity where demand for housing is high. In most cases, even if you over or under estimate the price, the market will eventually catch up to you.

Not so in a declining market. If you don’t get the price right, you will be chasing the market down. Before listing your own home, you need access to good current data about sales prices, market times, and activity. Assuming a modest sixty day market time, you still need to analyze past sales to determine what the value will be in 60 days or more, before a buyer commits.

If you are unrealistic about price, you have no chance. The notion that a prospective home buyer is going to stroll down your street and fall in love with your house is a fantasy. The objective is to price the home for a quick sale but not leave money on the table. It’s a fine line that only an experienced professional, armed with facts, can determine.

Motivation

If at all possible, you should avoid selling into a buyer’s market. If you do not have to sell, don’t, unless you are doing so to buy something else. You also have to be willing to take the hit on your opinion of value and make it up on the bargain you are buying. If you must sell, be realistic about your situation and take your markdown sooner rather than later.

Familiarity with the process

There are two types of FSBOs; the ones who know it all and the ones who don’t know anything, and it isn’t uncommon for FSBOs to be engaged in the industry because they aren’t intimidated by the process.

The process appears daunting because it is, but it isn’t unmanageable. The basic issues are either contractual or regulatory, and there seems to be a tendency among novices to assume that selling real estate to someone is just like selling a used dishwasher.

As the seller, you will need to fulfill numerous legal and regulatory conditions applicable to the state in which the property is located. The consequences for failing to be in compliance are rather harsh. Before listing your home on your own, be familiar with the process and know the requirements for your state.

Knowledge of real estate law

Some sellers believe that because they are not licensed, laws and regulations do not apply to them. Ignorance of the law is a major hurdle. Unless they specialize, most attorneys don’t know much about real estate law. On the other hand, responsible real estate brokerages make a practice of avoiding litigation by knowing and complying with the law. Today’s real estate transaction files are an inch and a half thick and weigh three pounds, and it is all driven by caution. Know the law, or hire someone who does.

Disposition

Most people, even practitioners, haven’t the proper disposition for selling real estate, let alone their own property. The job of real estate requires a lot of patience while you deal with prospective homebuyers, until one transforms into a paying client. People who are buying or selling real estate are under a lot of stress. There is the stress of uncertainty and the underlying events driving their decisions.

There is also a lot of raw emotion throughout the home buying and selling process. Well trained professionals do not surrender control of their emotions to events or the actions of others.

Time

Time is of the essence. It isn’t just a legal phrase, you will need to invest time to market the property and be available to show your home and respond to any inquiries. Your time does have value which can be earned through the investment of the time in something profitable or the value of time for leisure and enjoyment. If the home doesn’t sell quickly, you aren’t likely to recoup the value of your time in savings.

Being on the market longer won’t get you a higher offer either; it will just eat away at your equity.

Resources

How will potential buyers know about your property? A homemade sign in the front yard is effective only if the potential buyer happens to drive down your street.

The best kept secret in real estate is that if the property is priced to reflect true market value and it is placed in the multiple listing service, nothing will stop it from selling. Sooner or later, every buyer turns to the MLS, if for no other reason than to prove to themselves that there is no better home out there. The challenge for a FSBO is to find a method as cost effective as the MLS.

Looking at the bigger picture, it is hard to imagine that someone would want to take the risks and the responsibility of selling for sale by owner unless they were certain they would net significantly more money upon closing. But, that rarely happens. Most, ultimately wind up engaging the services of a professional after wasting time and money. In a declining market, every month you don’t sell means a lower market value. And, if you are making mortgage payments, each payment is lowering your net equity. A fast sale is the most profitable sale.

One thing you are likely to discover is that real estate practitioners produce more potential buyers then you will. In fact, those FSBOs who do succeed often wind up paying at least half of the brokerage fee to the broker who produces a buyer. So, at best, you won’t be able to influence a higher than market value, you will likely pay a partial fee and, if that isn’t bad enough, the buyer of a FSBO also intends to pocket the brokerage fee. Like so many things, it really is harder than it looks.

Before selling your own home, interview a few brokers and get their opinions of value and overview of the market. If one is particularly helpful, you might want to consider listing with them if the home doesn’t sell quickly. And, remember what lawyers say, “Any attorney who would represent himself has a fool for a client.”

2:29 PM - May. 2, 2009 - comments {0} - post comment

Tips for selling in today's market

For home owners contemplating selling their homes in the current market, Relocation.com, a leading online consumer resource for moving services, offers several tips to help sellers maximize the final sale price, get the home sold quickly and move on to their new home. While many factors come into play with finding the right buyer at the right time, there are many things sellers can do to help put the odds in their favor.

“Despite the tough economic times, people who want to sell their homes don’t have to wave a white flag in surrender. Relocation.com wants to help educate consumers about the selling process so that they can make smart decisions about moving to a new home,” said Sharon (Ron) Asher, chairman and founder, Relocation.com. “With these sales strategies, consumers can get their homes sold and on to moving into their new residences.”

Tips for Selling a Home in Today’s Market

1. Do not overprice the home. Buyers today are looking for a bargain, and the seller in the end will likely have to bring the price down to meet market demands. The longer the home sits on the market, the stronger the negotiating position of the buyer.

2. Select Internet-friendly pricing. More than 80% of home buyers begin their real estate searches online. Most real estate sites filter the prices in $25,000 to $50,000 increments. So while a creative price of $555,777 may grab attention, buyers who set their search maximum filter at $550,000 will exclude it. Additionally, prices ending in 000 (such as $500,000) tend to sell at a larger discount than homes ending in 500 (such as $524,500).

3. List the home on a Friday. Most buyers are checking out new listings on Fridays so they can see what is new for the weekend.

4. Occupy or stage the home. Buyers appreciate a home that is well attended. A vacant home typically feels cold and empty, while one that is still occupied has a warm, cozy feel, attracting more buyers. However, keep the personalization minimal; having neutral decor and paint colors will make it easier for a buyer to visualize their own style in the home. If a seller moves to a new residence before selling the old residence, it is a good idea to have the home professionally staged as if someone still lives in it.

5. Monitor local foreclosures. Foreclosures are costing sellers money and have become very aggressive opponents in today’s market. If the seller’s neighborhood has a lot of foreclosures, wait until they are sold before listing the home, if at all possible. Most banks are extremely eager to sell, thus creating an underpriced competitor. If the seller cannot wait to list the home, it will need to be priced competitively with the foreclosures, which can dig significantly into the home’s equity.

6. Keep the home neat and clean. With so many foreclosures on the market today, buyers are seeing homes at their worst. If the home is presented in the best possible way, it will attract more positive attention.

7. Keep records. Foreclosures do not come with any disclosures. Sellers who keep updated records, photos and permits handy for the buyer to review will make them feel much more confident about buying the home, giving the seller a competitive advantage over foreclosed properties in the neighborhood.

6:03 PM - Apr. 18, 2009 - comments {0} - post comment

Tips to being a successful Seller

This article is by Paul Pastore, a Re/max broker in Chandler, Arizona.

1.  Be committed to selling.  In a buyer's market with inflated inventories, short sales, and repos, there is no place for sellers who want to 'test the waters'.  Don't even think "If I get my price".  You won't.  Money is only a secondary motivator to the serious seller.

2.  Make sure the price is right. Try triangulation.  Ask a few agents for their opinion.  Glance at www.zillow.com Consider a formal appraisal.  Focus on both current competition and current comps.  Sellers should realize they seldom see their property objectively or know the other properties the buyers have seen.

3.  Staging is a necessity.  Clutter eats equity.  Hire a professional stager or listen very carefully to your agent's suggestions.  View a staging DVD. Buyers 'horriblize' defects.  A faded front door suggests deferred maintenance.  A stucco crack may infer expansive soil.

4.  Consider a keysafe.  The new lock boxes are electronic and enable the listing agent to see who is showing the property.  Homes with easy access get more showings.

5.  Install a for sale sign.  If you don't want the neighbors to know you are selling, reread #1 above.  The people in your area will know with or without the sign your property is for sale.  They might even have a friend or relative who wants to be their new neighbor.

6.  Absorb all feedback.  If one buyer says something, others are thinking the same thing.  If several similar comments are made, do something about the problem.  Put your ego in storage with the excess furniture.

7.  Flexibility is fundamental.  No showings usually means the price istoo high.  No offers usually means the price is too high.  Be proactive especially if the market is flat or declining.  Regularly reduce the price until an acceptable offer is received.

8.  Accentuate the positives.  Selling, buying, and moving are stressful events.  Tell your agent you appreciate their efforts.  Ask them how you can help get the house sold.  Ask them what they would do if you were their relative, or it was their home.  Ask this question frequently.

9.  Time is of the essence.  This means sooner is better than later.  Do not underestimate the first buyer.  They may be the best buyer.  They may be the only buyer for a long time.  A lower asking price may net a seller more money in the long run.

10.  Patience is a virtue.  Ask your agent what the average days on the market is in your area.  The only way to get somewhere faster is to step on the gas if you are in a car.  Or, reduce the price if selling a house.

2:59 PM - Mar. 19, 2009 - comments {0} - post comment

A short sale primer

With unemployment figures reaching a 25-year high, the toll of the declining economy continues to impact hundreds of thousands of families each month, especially homeowners struggling with their mortgage. According to RealtyTrac, 303,410 foreclosure notices were served on properties in the month of December alone. This followed the 2,854,396 foreclosure filings throughout all of 2008.

For homeowners facing foreclosure, options do exist that can prevent the trauma of losing their home or facing long-term financial loss. Short sales are an alternative to foreclosure for struggling homeowners who do not want to stay in their homes but would also like to avoid the years of potential financial damage that a foreclosure could cause on their credit rating. If you or someone you know are looking for a "short" way out of a mortgage, keep reading and find out if a short sale is a feasible option.

Don't Be Short-Sighted
Before we dive into what a short sale is and how it can benefit some struggling homeowners, it's important to understand that you're not alone, and that just because you're struggling now doesn't mean you won't be able to recover in the near future. In today's tough economy, millions of Americans are facing challenging situations seriously affecting their finances right now that they can, and will, eventually overcome, including lay-offs, divorce, the death of a spouse, or even major losses in the stock market or their retirement investments.

That's why, before choosing to attempt a short sale, it's important to ask yourself if staying in your home is an option you'd like to explore, because there are opportunities, including a loan modification that may be a better path for some struggling homeowners to pursue. A loan modification would allow the homeowner, in many instances, to renegotiate the terms of their existing mortgage(s) to a more affordable monthly payment(s). This can be accomplished in a number of ways that bring about both temporary and permanent solutions but ultimately allow the homeowner to keep their home.

If you think that a change in your mortgage terms, like a lower rate or lower monthly payments, might help you make it through this rough patch, it's important to communicate with your lender, even if you're several months behind in your payments. Many lenders have reported that in over 50% of the cases where a homeowner is delinquent on his or her mortgage, they have been unable to reach the owner to discuss any options. Picking up the phone and placing a call is always in your best interest. More importantly, opening lines of communication with family members, in many cases, could help lighten the emotional burden that often comes along with these challenges.

When Staying is Not a Viable Option
If, however, you think a loan modification would not be appropriate for your individual needs, one solution to avoiding foreclosure could be a short sale. A short sale is an agreement from the lender(s) to allow the homeowner to sell the property for less than what is owed on the mortgage(s). An example would be an agreement to allow a sale of the home to take place for $175,000 when $300,000 is actually owed on the property.

For a lender to consider a short sale, there are a number of factors that the lender will take into consideration before an approval can be secured, including:

1. Current hardship, which can include a change of income due to job loss, loss of hours or salary reduction, illness, death of a wage earner, or a change in marital status.
2. The property is "upside down," which means the house is worth less in today's market than what is owed.

It's important to note that, unlike a loan modification, a homeowner does not have to be delinquent to be considered for a short sale. However, a hardship should be demonstrated showing that the homeowner would not be able to remain current on the mortgage in the future due to mounting financial obligations.

Why would a lender agree to sell your home at a loss? Well, in many cases, the foreclosure process results in a loss of up to 40% or more of the original mortgage balance for the lender. When borrowers and lenders work together on a short sale or loan modification, however, these losses can be reduced by roughly half, in many cases. For example, a foreclosure on a $300,000 home could cost the lender up to $120,000 or more in losses, where they might only lose $60,000 by working with the borrower. Add to that the record losses incurred on other foreclosures, and it's clear why lenders, in many cases, prefer to negotiate a solution.

Credit Benefit
Working with a lender to negotiate a short sale instead of a foreclosure can also be more beneficial to your credit as well, especially if you want to secure another mortgage in the near future when your finances are back on track. According to Fannie Mae, one of the largest mortgage insurers in the country, a foreclosure on your credit record will likely mean it will be between 3 and 5 years before you're able to secure a new mortgage. The typical timeframe to buy a new home with a short sale on your record, however, is only two years.

A short sale also has a lesser impact to your FICO score compared to a foreclosure, which is very important for obtaining future credit from everything including automobiles and consumer credit to getting reconnected with local utilities and cell phones services. Your credit score can even affect certain employment opportunities as well.

Start the Process
The first step of a short sale is to contact your lender and seek their assistance.

The second step is to enlist the help of an experienced real estate agent. An agent who is skilled at handling the negotiation process will not only minimize negotiation time, he or she will also help in limiting the time and costs of marketing the property.

Tony Sena, a real estate agent with North American Realty in Las Vegas, Nevada agrees. Sena, who is currently closing 10-15 short sale transactions a month says, "The single greatest reason for a distressed property not selling is selecting the wrong agent."

When selecting an agent, don't be afraid to ask questions about their experience. Sena says to look at the current inventory of listings the agent represents and ask:

• How many of the properties are currently short sale properties?
• Does the agent have testimonial letters from short sale sellers?
• If an agent says they have sold a number of short sale properties, how many of the transactions were listings sold, not just where they had the buyer.

The third step is to price the house properly, according to the market. While many buyers would love to "steal" your property for the lowest price possible, remember that the lender is already going to incur a loss and they are not interested in losing more than they have to. Sena suggests initially pricing the property at the current value and then reducing the asking price every two weeks until it attracts buyers. Then, once you have an offer, the negotiations on the final price can begin with the lender.

The last step is to be prepared for challenges in both the short sale process and in the market place. Remember, you have a lot of competition out there and getting a property sold can be tough, especially in a buyer's market. However, choosing the right agent and setting the right price can assist you in not only selling it more quickly but also in minimizing the friction of having to deal with the lender directly.

Be aware that, in some cases, not all, a lender will agree to a certain price, but only if the seller agrees to accept a promissory note for some amount of the deficiency – that means money that you will be responsible for paying back. In some cases, Sena has seen lenders ask that sellers pay up to $20,000. However, while early last year the interest rate for these notes was in the range of 4% to 8%, lately Sena has seen that lenders have also been extending offers with 0% and terms of repayment up to ten years.

Get Moving
Once you recognize that you are having problems keeping up with your mortgage payment, take action quickly. Decide whether you want to stay in the home or not. Then contact your lender to find out the best solution to your needs

3:44 PM - Mar. 5, 2009 - comments {0} - post comment

Cost effective home selling tips

This article is byDan Steward who is president ofPillar To Post.

In today’s real estate market, sellers need additional advice on how to cost-effectively prepare their homes in order to sell quickly. With an abundance of homes on the market, waiting several months to sell a home could leave many recession-plagued sellers in financial distress.

For example, in October 2008, the median existing-home price was the lowest since March 2004 at $183,200. This means that a homeowner who lived in his or her home for four-and-a-half years is seeing the value of the home as the same or less than when the home was bought (CNNMoney.com, November 2008).

The good news is that although some homes may need extensive upgrades or renovations, many may only require simple changes. For a limited cost, or no cost at all, home sellers can fix their homes to appear more appealing to prospective buyers.

Here are some quick and inexpensive fixes to sell a home more quickly:

Focus on outdoor aesthetics. Cut back overgrown shrubs and plants. Hose down a dusty, dirty house. Sweep the driveway, sidewalk and any stairs.

Cost: $0

Eliminate odors. Before showing the house, open windows to let fresh air in; use air fresheners or baking soda to rid odors; sprinkle baking soda on the carpet and leave it for at least 10 minutes to make carpets smell clean.

Cost: approximately $15

Wash windows. Purchase a window-cleaning product to avoid professional costs. Clean windows make a home look well-kept and outdoor views more crisp.

Cost: approximately $25

In addition, consider scheduling a prelisting home inspection, an inspection conducted prior to putting the home on the market. These early inspections aid homeowners in identifying problem areas that can be easily repaired. For example, existing electrical, heating, or plumbing systems may need to be upgraded, or mold growth in a basement may require professional advice on how to eliminate dampness.

The home inspector can also suggest additional work to be done and what could be postponed. And, remember, a home inspector is an objective, third-party consultant who does not stand to profit from work suggested. A good assessment of the current state of a home and its systems will allow for more accurate planning and estimating as homeowners prepare a home to sell.

3:31 PM - Mar. 3, 2009 - comments {0} - post comment

Seller Resolutions

The New Year is here, and many are more resolved than ever to achieve real estate goals that went by the wayside in 2008 due to economic and other concerns. But, what’s one to do to optimize their chances of success amid what’s still a tumultuous, highly demanding marketplace?

“While tricks of the trade abound to give buyers and sellers a leg up on the competition, there are also a number of basic pitfalls buyers and sellers should be sure to avoid lest they commence their real estate venture on shaky ground,” notes Robert Jenson, CEO of luxury Las Vegas real estate purveyor The Jenson Group.

With this in mind, Jenson offers these New Year’s Real Estate Resolutions to help sellers avoid common blunders and get the deal done:

Seller Resolutions:

1. I Will Not Overprice My Home. Every seller naturally wants to get the most money for his or her product. The most common mistake that causes sellers to get less than they hope for, however, is listing too high. Listings reach the greatest proportion of potential buyers shortly after they reach the market. If a property is dismissed as being overpriced early on, it can result in later price reductions, which reflect poorly on the listing. Overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price than they likely would have had they been priced properly in the first place.

2. I Will Not Limit Showings. Are you serious about selling your home? Then you need an open door policy and to ensure the home is ready to be shown at the drop of a hat…even if you’re not around. Pack up your valuables and provide an outdoor lockbox that real estate agents may access at their discretion. Most showings are fairly spur of the moment, and you don’t want to miss out on any qualified prospect.

3. I Will Properly Stage My Home. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant and fresh as possible. Plant flowers, wash the windows and screens, put on a coat of new paint, lay new carpet, add furnishings and décor items, eliminate clutter and remove personal photographs from around the house. It’s time to show off your beautiful home and make someone else feel completely at home in it. First impressions are critical, so ensure the junk is packed in boxes, and all boxes are put in storage vs. the garage so the prospective buyer can properly evaluate and appreciate that part of the house, too. Clean out the closets, so they look bigger.

4. I Will Not Wait for an Offer Before Making Needed Repairs. Would you buy a Ferrari with bent rims, stained rugs and cigarette burns in the seats, even if the seller was offering a “repair credit”? Doubtful, as the buyer would have an understandable poor impression of how the vehicle was treated and assume the worst. When selling a home, eliminate any need for such credits in advance. Even before you list it for sale, hire professionals to inspect the roof, pool, and other structural elements, and for termites and other important buyer considerations. Make ALL repairs before you list the house on the market to thwart anticipated objections in advance.

5. I Will Be Aware of All Contract Terms. It is extremely detrimental to be ill-informed regarding the details of your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what you are responsible for before signing any contract. Can the property be sold “as is”? How will deed restrictions and local zoning laws affect your transaction? Your real estate professional should ensure you know the answers to these kinds of questions, which can save you a considerable amount of money.

1:48 PM - Feb. 15, 2009 - comments {0} - post comment

Consider a "refresher" course

This article is by Melissa Birdsong who is vice president for Trend, Design & Brand, Lowe’s Companies, Inc.

Staging has been the buzzword in real estate for the past several years. But taking the next step to refreshing can really set one home apart from the rest.

Buyers look at a lot of homes. So how do you make sure a home is memorable to a buyer? Having a well-staged home is now the rule rather than the exception for a faster sell and a better price. Try to think beyond the obvious for ways to make the entire home feel updated and inspired.

A fresh coat of paint on worn walls provides a “wow” factor without excessive cost or effort. While this isn’t new news, something that tends to get overlooked (and can have just as much impact) is painting the trim and other accents that may have gotten scuffed or dingy over the years. Freshly painted trim work is cleaner and a healthy home environment is very appealing to buyers.

Hardware is a quick fix as well. Switching out knobs and pulls in the kitchen or bath will catch the eye and revive an entire room. Taking it a step further to update faucets, light fixtures and even switch plates can take a space from ordinary to inspiring. Area rugs, lamps and plants are also quick ways to add life and warmth to a room with the convenience of portability. Because they are easily changeable, updating “unattached” items can instantly modernize a space with a fresh style.

And don’t forget first impressions-exactly how fast are prospective buyers driving past the home? No brake lights? A quick tap and then accelerate? Or do they come to a full stop to get a better look? That fresh, new interior will never be revealed if the curb appeal of the exterior is blasé. Everything from container gardening and clean welcome mats to new storm doors and shutters can pull that buyer into your drive.

Artistic staging can showcase the best features in a home. But in today’s market, take a refreshing approach-go that extra mile and look for ways to make the home memorable to a potential buyer.

11:58 AM - Jan. 24, 2009 - comments {0} - post comment

Consider a pre-listing inspection

This article is by Dan Steward, president of Pillar to Post

With the residential real estate market clearly at a low, real estate agents are turning to new strategies to help home sellers protect their investments and to sell homes quickly at the highest valuations. The biggest development in this area is Realtors advising sellers to schedule a home inspection prior to putting their homes on the market.

Realtors who require prelisting inspections-a home inspection that is paid for by the seller before a house is put on the market-not only reduce the possibility of last-minute surprises during negotiations, but also give their clients’ homes a marketing edge. They give the more-educated buyer upfront information on the condition of the home, along with identifying hidden problem spots that could potentially push the home’s sale price downward during the sale transaction.

Knowing the home’s potential problem areas before sellers put the house on the market creates a trusting environment between the sellers and the buyers. The prelisting inspection reduces the stress that might be involved in a transaction if surprises (i.e., damages, hazards) were to be discovered during the time the house is in escrow.

For example, imagine that three weeks before a house was to close, the water heater broke down. The seller would need to rush to repair the problem, potentially costing far more than if the repair had been scheduled. If the faulty water heater had been discovered before the home went up for sale, the seller would have avoided the last-minute stress-and unforeseen expenditure-of replacing the water heater.

It’s less expensive for home sellers to replace a faulty system or fix a problem than to negotiate the price down. It’s been suggested that for every $1 of identified repairs, the buyer seeks double to triple that in a price reduction. Savvy home sellers who, for example, learn through home inspection that portions of the roof need repair may opt to repair that section immediately, rather than having the problem become a price negotiating tool. Paying $5,000 for the repair is far more enticing than losing $15,000 in the sale price.

Even a newer home with marble countertops and hardwood floors may have problem spots. Buyers who are looking to make a big investment may very much appreciate the added touch of a prelisting inspection, showing repair cost estimates and receipts for actual work done.

Furthermore, much of the increase in prelisting inspections has been driven by real estate practitioners. They have seen a definite effect on how quickly and easily they can sell a home with home inspection reports readily available for buyers to view. Having the reports re-emphasizes the fact that the seller has nothing to hide.

To ensure selling success, a prelisting inspection is a simple way to create a win-win scenario.

1:27 PM - Jan. 14, 2009 - comments {0} - post comment

Renovating in a buyer's market

With home prices on the decline, some homeowners may be tempted to renovate their home to make it more desirable or valuable to potential buyers. But there are certain renovations that can actually decrease the value of your home – even in an up market.

If you're trying to sell your home in the next 6 to 18 months, be extremely discerning about your choices, get advice from an expert real estate agent and appraiser before you begin any major renovations, and avoid these costly projects in today's buyers' market:

An in–ground swimming pool or hot tub – In certain parts of the country, yes, a pool or hot tub can increase your home's value. But, for many potential buyers with young children, these items are a true liability and will only decrease your home's value – not to mention the built–in maintenance and energy expenses that come along with them. If you're looking to sell your home in today's tougher market, you simply can't afford to isolate a large number of potential buyers.

New additions – Of course, home additions add valuable square footage, but one false move and your addition can be an eyesore that could hurt your home's value, even when the market turns. A well–designed new addition is time–consuming and expensive and needs to be properly planned and executed. If you're looking to sell your home anytime soon, save yourself the hassle. With just a portion of what it would cost to add a new wing, you could upgrade your kitchen cabinets, appliances, and counter tops and get far more bang for your buck.

Conversions – Yes, with so much competition, it's important that your home stands out from the crowd, but following today's trends could cost you big tomorrow. Right now, space for a home office or a recreation room might be trendy, but converting a den or your garage into one can be a costly mistake. A good real estate agent can achieve the same effect by defining a space through staging. If you want to upgrade your garage, a new door is much cheaper and adds valuable curb appeal.

6:53 PM - Jan. 10, 2009 - comments {0} - post comment

2008 Cost v Value Report

Every year Remodeling Magazine reports on the return homesellers receive for improvements they make to their homes.

To see this year's report, please go here:  http://www.realtor.org/rmohome_and_design/articles/2008/0812_costvsvalue_2008

The results show that, no matter the economy, proper renovations result in added value when it comes time to sell.

7:30 PM - Dec. 30, 2008 - comments {0} - post comment

10 ways to boost value

Homeowners play an important part not only in how their home is perceived by prospective buyers, but also its actual appraised value. To help sellers better maximize their profit potential, Robert Jenson, CEO of luxury Las Vegas realty The Jenson Group at RE/MAX CENTRAL, offers 10 tips for readily increasing a home’s worth:

1. Paint the exterior - A fresh coat of paint can give even a relatively new home a much needed facelift, and can often be done for as low as a few thousand dollars. Select a neutral tone that is consistent with other residences in the neighborhood. Also be sure to pay close attention to eaves, gutters and drains that may also need painting.

2. Complete all needed repairs - To maximize a home’s worth, it should be in good condition both inside and out. Don’t wait until there is an offer on the home. Hire an inspector now, and fix any and all problems, such as roof deficiencies, leaky plumbing and electrical concerns.

3. Purchase a home warranty - Establish peace of mind that comes with knowing a home and its contents are adequately covered in the event of a loss. A transferrable home warranty protection plan can provide added security to the home owner - and buyer - in this regard.

4. Furnish the home to sell - Appeal to the buyer’s emotion. Furnishing a home can go a long ways to getting your home sold, actually increasing the odds of it selling. Give buyers the option to procure the property with or without furnishings, and have a pre-established sale price set for either scenario.

5. Upgrade front yard landscaping - Curb appeal plays a big role more so than people realize. Potential buyers driving the neighborhood may never call on the For Sale sign, if your home doesn’t look appealing from the outside. As well, buyers waiting for their Realtor to show up will often spend a good amount of time critiquing the landscaping while waiting. In addition to purposeful foliage, add landscape lighting and a weather and soil moisture-based landscape irrigation scheduling device to boost value even more.

6. Create a quick kitchen makeover - Kitchens are one of the number one room in the home where you’ll get the most bang for your remodeling buck. Countertops and appliances are the quickest fix, as are faucets, fixtures, door knobs and other easily changed items that can have a large impact on the space.

7. Think spa, not bathroom - The master bath is an important a factor in a home’s worth. Think spa, or private sanctuary, where the master bath is concerned. A space meant to be relaxing, rejuvenating and more. Give buyers something to be excited about with upgraded faucets, fixtures, lighting, cabinetry, mirrors and the like. Then dress it up with plants, candles and other inexpensive, high impact décor.

8. Install soft and hard window treatments - There’s nothing more boring than a plain window. Take advantage of this easy opportunity to give the home’s interior design more impact, while also increasing the home’s actual worth. In addition to “hard” treatments such as blinds and shutters that offer privacy, also add soft treatments hung from decorative fixtures, which can alter the appeal of a room entirely. Look to a professional to ensure the best outcome.

9. Replace carpet rather than just cleaning - Rather than simply steam cleaning old, used carpet, replace it with fresh, neutral-toned carpet with an upgraded pad for an extra luxurious feel. Spending the extra money on new carpet will really make your home stand out from the crowd, in sight, feel and even smell.

10. Don’t overlook your closets - The better organized a closet, the larger it appears and the better it reflects on a home overall. Now is the time to box up those unwanted clothes and shoes and donate them to charity. Then, invest in a closet organization system - either by a professional or self-installed - which will positively impact an appraisal.

2:09 PM - Dec. 10, 2008 - comments {0} - post comment

Counter tops can be a good seller upgrade

This article is by Roselind Hejl who is a Realtor with Coldwell Banker United in Austin, Texas. 

1:49 PM - Dec. 4, 2008 - comments {0} - post comment

You can help sell your own home

This article is by  Roselind Hejl who is a Realtor with Coldwell Banker United in Austin, Texas

5:48 PM - Nov. 24, 2008 - comments {0} - post comment

Smell right and sale quick

This article is by Chris Kaucnik, marketing director forHome Warranty of America.

Humans can discern about 10,000 smells. Remember Cleopatra? She placed layers of rose petals on her palace floors to entice Mark Antony. She knew the power of scent and got that part right, but according to recent studies, the scents that most attract men are pumpkin pie and anise. Well, she didn’t have our science or pumpkin pie.

Retailers have been enticing prospects to buy their goods with thousands of scents for thousands of years. Scent has a power of its own.

We instinctively know that the power of scent can be good or bad. Strong smells from pets, cooking or other activities can make prospects run from buying a home. But the right, clean scent can have quite the opposite affect.

Scent Suggestions

Let’s say you are selling updated, contemporary condos and lofts in a hip urban neighborhood where younger singles and newlyweds are buying. You may decide you don’t want these prospects to be highly relaxed, but rather attentive and excited instead. This will help them make decisions more quickly. In this case, use scents of rosemary, peppermint or grapefruit for alertness and stimulation.

If you want to enhance the mood of an older home with many rooms that may invoke a bit of uneasiness or confusion, use any citrus scent. Citrus is refreshing and energizing, eases tension and promotes mental clarity. Or use lavender to promote calming.

Some scents and their reactions:

-Chamomile: calming and soothing-eases anger and anxiety
-Clary Sage: relaxing, euphoric-eases anxiety, tension and stress
-Eucalyptus: fresh, cooling and invigorating-promotes alertness
-Jasmine: alleviates anxiety and depression
-Lavender: calming
-Lemon: refreshing and energizing-eases tension, heightens mental clarity
-Mandarin: relaxing and calming-relieves insomnia
-Neroli/Orange Blossom: relieves stress, anxiety and insomnia
-Peppermint: refreshing and stimulating-increases alertness
-Rosemary: a stimulant that promotes mental clarity and alertness
-Sandalwood: warm, sensual aroma-euphoric and seductive

5:39 PM - Nov. 20, 2008 - comments {0} - post comment

Think like a retailer

This article is by Chris Kaucnik is marketing director for Home Warranty of America.

Yes, a home is a large asset-not a coffee maker or an impulse purchase-but employing the innovative techniques we discuss here, adapted from retail strategies, can help you achieve your goals.

See through your prospects’ eyes and consider these three factors about them:

1) Visual judgments are made in a second in today’s environment
2) Sound is a key factor in the sale and often overlooked
3) Distinctive benefits-not common features-impress their memory

Visual-Think Bling

Guide the first portion of your prospect’s walk-through. Show the most irresistible elements of the home first, from a benefits point of view. This mirrors the retail technique of putting the newest, most profitable vanity products toward the front of the store such as cosmetics and jewelry-the hot new merchandise.

Today, clients sort out the basics they are looking for in a home before they view it live. They know it has four bedrooms, a three-car garage, and 2.5 baths when they walk in.

But there may be hundreds of houses for sale in their geographic area that meet these and their other basic requirements. Focus on one or two outstanding aspects of the home, no more. This will set the positive impression.

Where’s the Bling?

A unique feature could be the great, old-brick patio and spa in the backyard, or the professional series appliances in the kitchen. No matter what, every house has them and they can be turned into benefits that sell. Creating this unique, first impression puts you and the house in a special place in your prospect’s memory-even if they go on to see many more homes.

Showing the Bling

While you are showing a unique benefit or two, start an informative conversation perhaps about the neighborhood, schools or shopping. Casually, find out a bit about their lifestyle. Then let the prospect move about the rest of the common areas in the home without you.

Keep your goal in mind which is to make a distinct impression. So instead of telling the prospect there is a clubhouse and pool, mention the fun they will have with the clubhouse and pool in the summertime. There is a difference.

You are painting a scene in their mind. One they could slot their family into easily. Remember, prospects will sub-consciously limit the mindshare they give you, so use it wisely.

This is what a great retail sales person will do. They won’t walk you back to the sales area, but will instead mention all the new, full-priced merchandise up front, ask you what you are looking for and steer you to a particular area. Then, they will let you move to the sales area by yourself.

Audio-Think Ambiance

Don’t discount the value of your prospect’s ears. Great retailers and retail brands view audio as a science and have seen it add greatly to their bottom lines.

Create an audio mood that makes them feel like they can live there and be happy. Sounds direct our feelings, thoughts, actions and speech. When the music fits our expectations, we stay in that environment longer and buy more.

Be creative, what music matches this home’s personality? Chances are it will match the prospect’s personal preference too or be close enough to please. After all, they did select this style of home to view.

Audio Buying Study

In 1998, there was a test conducted in a British wine shop. On certain days, French music was played and on certain days, German music. On German music days, German wines outsold the French by a ratio of three to one and visa versa.

Perhaps it makes sense then to play some music in your listings when prospects are present. Pick different selections for a classical home style then a contemporary one for example, or for a Victorian versus a Spanish and Mediterranean style. You get the idea. This will further differentiate this home from the others for sale in the neighborhood.

8:57 AM - Oct. 21, 2008 - comments {0} - post comment

"Must have" upgrades

It’s a simple formula: upgrades = sold. For a home to sell quickly and for the price desired, it must be “finished” with as many structural and interior design upgrades as possible-and nothing’s too small to leverage in establishing a home’s price point.

From crown molding to faux painting to door handles and cabinet handles/knobs with modern finishes, to more obvious upgrades such as appliances, window, counter, cabinet and floor treatments, to swimming pools and surround sound wiring-any functional or beautification enhancement to a home are considerations in establishing its true value and strategic sale price.

Consider these property value-enhancing upgrade ideas from Robert Jenson, CEO of luxury Las Vegas real estate purveyor The Jenson Group:

–Commercial grade appliances such as Viking or Wolf in a kitchen, along with dual appliances such as ovens, dishwashers, refrigerators and freezers, add greatly to resale value and are always a desirable upgrade.

–The “outdoor living room” concept is extremely popular right now. Whether a palapa, gazebo or other covered section, an outdoor furnished lounge area complete with wiring for lighting, fans, TV and surround sound, fire pit/fire place, and built in BBQ grill will add tremendous appeal - water features will take this asset to the next level.

–Other custom upgrades and finishing such as front entry (or panty) doors with decorative glass inlays, decorative wrought iron stairway balusters, and faux painting treatments will readily set a home apart from the pack…particularly a track home in a master planned community.

–Fixtures should be considered even beyond the kitchen and bath. Door handles, for example, with modern finishes such as brushed nickel, are a great way to add custom appeal to an interior.

–Granite countertops need not be reserved for the kitchen. Master bathrooms in particular, if not all baths in the house, should utilize some kind of stone counter - marble, granite, travertine, etc. - for a particularly notable enhancement that is sure to differentiate a home from others on the market.

11:49 AM - Oct. 15, 2008 - comments {0} - post comment

Understanding Short Sales

Here is part 1 of a 5 part series on short sales and foreclosures by Darryl Davis.  One of the most sough-after speakers in real estate, Darryl Davis has been a Master Trainer and Advisor for the past 15 years. He has been named one of the Highest Rated Speakers at the National Association Of Realtors® Convention for the past 9 years. Darryl has directly impacted hundreds of thousands of real estate professionals with his live events, best-selling books, learning systems and coaching program.

According to the Mortgage Bankers Association, every three months, 250,000 new families enter into foreclosure. One child in every classroom in America is at risk of losing his or her home because their parents are unable to pay the mortgage. One out of every 200 homes will be foreclosed upon. These statistics may be alarming, but they are the reality in today’s market. Fortunately, there is a win-win solution for all parties involved: the homeowner, the bank and the real estate agent.

The recent decline in property values has created many challenges for real estate agents and homeowners alike, but a “Short Sale” could be the key to a happy ending. One of the biggest misconceptions about short sales is that they are difficult and not profitable In fact, while a short sale does indeed help a homeowner tremendously, it is also highly beneficial for the market

So, what is a short sale? A short sale is a loss mitigation solution. The easiest way to explain a short sale is this: when you go into a seller’s house and ask the magic question, “how much do you owe on your home?” the answer is more than what the current value of that home is. Very simply put, a short sale is when the value of the mortgage is greater than the value of the property.

It is said that 90% of homeowners do not understand the difference between a foreclosure and a short sale, and many agents wonder the same thing. A foreclosure is the process of the bank taking back ownership of a house due to the homeowner’s inability to pay their mortgage. The home is now an REO or bank-owned property, and the lender will sell it for the listed price. A short sale, on the other hand, is sold by the homeowner before a foreclosure takes place. The listing price is determined by broker price opinions, recent comps in the area and the condition of the home. And ultimately, in a short sale, the lender agrees to accept less payment than what is actually owed to them.

By definition, any homeowner that is two months late on their mortgage payment and can also demonstrate the inability to pay their mortgage would be considered a short sale candidate. The homeowner is considered pre-foreclosure when the bank officially sends a notice of default or a notice that they’re taking legal action against the homeowner to collect the debt. Contrary to what most agents believe, a short sale can still take place during the foreclosure process. There are only two reasons that a homeowner is not eligible for a short sale:

The foreclosure has already taken place and the home is up for auction
The homeowner files for bankruptcy

According to a recent Freddie Mac/Roper poll, more than six in 10 homeowners who are delinquent in their mortgage payments are not aware of services available to them that would help their situation. Much of the population are unaware of short sales and their process. A short sale is a win-win. It’s a win for the bank because an agent is helping them along their sales process and helping them recapture as much of this non-performing loan as possible. It’s a win for the seller because they’re going to be forgiven for a large portion of the money they owe and are saving their credit. It’s a win for buyers because they can obtain a property that is priced right.

What’s more, stopping a foreclosure before it happens is in fact helping the economy and the real estate market. According to “Collateral Damage: The Municipal Impact of Today’s Mortgage Foreclosure Boom,” written by William C. Apgar and Mark Duda, just one foreclosure can result in as much as an additional $220,000 in reduced property value and home equity for nearby homes. In an already down market, any loss in home value is detrimental to everyone involved.

Another reason a short sale is a better option than foreclosure is because it saves the seller’s credit from being damaged. A foreclosure can drop a homeowner’s credit score by 300 points or more. A short sale will affect a homeowner’s credit score by 80 to 100 points on the average. It reads on your credit report as a paid lien or paid judgment, and is much easier and quicker to repair than a bankruptcy or foreclosure.

According to RealtyTrac Inc., home foreclosure filings more than doubled in the second quarter of 2008 from a year ago. They also stated that nationwide, 739,714 households - one in every 171 - received at least one foreclosure-related notice from April to June, as soft housing sales, declining home values, tighter lending standards and a sluggish U.S. economy left many homeowners with few options.

5:45 PM - Sep. 27, 2008 - comments {0} - post comment

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