Posted on

8 Hints to Help Sell Your Home Fast

By Jenny McCune • Bankrate.com

In a hurry to sell your house? Here are some ways to set a winning pace in the home-sale race.

1. Hire a top-notch sales agent – “You need a good agent, an agent who knows your neighborhood” says Julie Greenwood, co-owner of Greenwood King Properties, a Houston real estate agency.

2. Price it right – The No. 1 thing that will sell a house quickly is price. “That’s the name of the game,” says Tom Innes, president of Re/Max Commonwealth in Richmond, Va. “If you price it right, it will sell. If you price it wrong, it won’t sell.” OK, so just how do you play the home-sale-version of “The Price is Right”? That crackerjack agent you hired should have a good sense of what price will help sell your home sooner rather than later. As the owner, you are probably not objective, so give your agent free rein, within reason, to set the price. The broker will look at the average days a home in your neighborhood is on the market, how your home compares to others in the area and its condition.

3. Create an adjustable sales plan – Come up with a sales strategy, but make sure it’s flexible. What’s your initial asking price? How long will you insist on it before making a reduction? How much of a cut will you accept? What about after that? Having a plan in place will help you react quickly, according to Greenwood, and will move your home that much more quickly.

4. Clear out the clutter – “Get the clutter out of it,” says Stephen Roulac, author of the forthcoming “360 Housing Mistakes and How to Avoid Them.” It will make your home more inviting to buyers. “After you thought you got out the clutter, take out more. Get it spare, open and fresh.”

5. Offer incentives – Incentives can help shorten the sales cycle, but be careful. Agents are divided on how much they help. “I think it can be a fine line between wanting to sell a house quickly and having it look like it’s a fire sale,” Greenwood says. If prospective buyers get the idea that you’re desperate to sell, they will try to get you to accept a bargain-basement price.  Roulac, however, believes that adding premiums can help speed a house sale. A popular incentive offered purchasers is closing-cost help. You also can encourage your sales agent: Offer a higher commission for a speedy sale or give your broker show tickets, a meal at a fine restaurant or some other perk if the property moves quickly.

6. They buy houses, don’t they? – What about those “cash for homes” ads you see on matchbook covers, billboards and late-night TV? Agents say houses sold this way are heavily discounted. You will sell your property quickly, but it will go cheap, probably at a price that really won’t make you happy. “If it’s too good of an offer to be true, it is too good of an offer,” says Re/Max’s Innes.

7. Ask for company help – If you’re relocating because of a job change or company transfer, you may be eligible for home-sale help from your employer or a relocation company representing your employer. “Generally speaking, these buyouts are fair,” says Todd Thornton, a real estate instructor, consultant and author of “Home Buying Without the BS.”
“An appraiser would appraise the property and the buyout would be for the suggested fair market value less a sales fee,” he explains. “The company would then put the home on the market with a local real estate professional.” While that’s a great deal for the home sellers, Thornton notes that many companies are scaling back on their relocation packages, so it may not be an option.

8. Rent it – If time runs out and you’ve got to get out of Dodge without selling your home, consider renting it. Just be sure to strike a deal with the renters so your home will be available for showing. For example, if a home such as yours normally rents for $1,000 a month, offer a discount (say $750) in exchange for the renters making the house accessible for showings to potential buyers.  The downside of renting a house that you’re trying to sell is that its condition probably won’t be as pristine as you or buyers would like. One way around this problem, says Innes, is to rent with an option to buy. “Let people move in six months and pay rent and then close,” he says.

Posted on

7 Reasons to Own Your Own Home

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, and some of the costs involved in buying your home.
Gains.
2. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
3. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
4. Predictability. Unlike rent, your mortgage payments don’t go up over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will rise.
5. Freedom. The home is yours. You can decorate any way you want and be able to benefit from your investment for as long as you own the home.
Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

To calculate whether renting or buying is the best financial option for you, use this calculator courtesy of Ginnie Mae: http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?Section=YPTH
Posted on

5 Reasons You Need a REALTOR®

  1. A real estate transaction is complicated. In most cases, buying or selling a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page government-mandated settlement statements. A knowledgeable guide through this complexity can help you avoid delays or costly mistakes.
  2. Selling or buying a home is time consuming. Even in a strong market, homes in our area stay on the market for an average of 150 days. And it usually takes another 45 days or so for the transaction to close after an offer is accepted.
  3. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with someone who speaks that language.
  4. REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. That’s why having an expert on your side is critical.
  5. REALTORS® provide objectivity. Since a home often symbolizes family, rest, and security, not just four walls and roof, homeselling or buying is often a very emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you keep focused on both the business and emotional issues most important to you.
REALTORS®are members of the NATIONAL ASSOCIATION OF REALTORS®, a trade organization of more than 1 million members nationwide. REALTORS® subscribe to a stringent code of ethics that helps guarantee the highest level of service and integrity
Posted on

5 Factors That Decide Your FICO Score

Credit scores range between 200 and 800. Scores above 620 are considered desirable for obtaining a mortgage. These factors will affect your score.

  1. Your payment history. Whether you paid credit card obligations on time.
  2. How much you owe. Owing a great deal of money on numerous accounts can indicate that you are overextended.
  3. The length of your credit history. In general, the longer the better.
  4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay promptly.
  5. The types of credit you use. Generally, it’s desirable to have more than one type of credit—installment loans, credit cards, and a mortgage, for example.

For more on evaluating and understanding your credit score, go to http://www.myfico.com.

Posted on

20 Steps to Help You Sell Your Home

  1. MAKE THE MOST OF THAT FIRST IMPRESSION – A well-manicured lawn and shrubs, and a clutter free porch welcome prospects. So does a freshly painted or a freshly scrubbed front door. If it’s autumn, rake the leaves. If it’s winter, make sure there’s no ice on the sidewalk or steps. The fewer obstacles between prospects and the true appeal of your home, the better.
  2. INVEST IN A FEW HOURS FOR FUTURE DIVIDENDS- Here’s your chance to clean up in real estate. Clean up in the bedroom, the bathroom and the kitchen. If your woodwork is scuffed or the paint is fading, consider some minor redecoration. Fresh wallpaper adds charm and value to your property. Prospects would rather see how great your home looks than hear how great it could look with a little work.
  3. CHECK FAUCETS AND BULBS – Dripping water rattles the nerves, discolors sinks and suggests faulty or worn-out plumbing. Burned-out bulbs leave prospects in the dark. Don’t let little problems detract from what is right about your home.
  4. DON’T SHUT OUT A   SALE – If cabinets or closet doors stick in your home, you can be sure they will also stick in the prospect’s mind. Don’t try to explain sticky situations when you can easily plane them away. A little effort can smooth the way towards a closing.
  5. THINK SAFETY – Homeowners learn to live with all kinds of self-set booby-traps: roller skates on the stairs, festooned extension cords, slipperythrow rugs and low-hanging overhead lights. Make your residence as non-perilous as possible for visitors.
  6. MAKE ROOM FOR SPACE – Remember potential buyers are looking for more than just comfortable living space. They are looking for storage space too. Make sure your attic and basement are clean and free of unnecessary items.
  7. CONSIDER YOUR CLOSETS – The better organized a closet, the larger it appears. Now’s the time to box those unwanted clothes and donate them to charity.
  8. MAKE YOUR BATHROOMS SPARKLE – Bathrooms sell homes so let them shine. Check and repair damaged or unsightly caulking in the tubs and showers. For added allure, use your best towels, mats and shower curtains.
  9. CREATE DREAM BEDROOMS – Wake up prospects to the cozy comforts of your bedroom. For a spacious look, get rid of excess furniture. Colorful bedspreads and fresh curtains are a must.
  10. OPEN UP IN THE DAYTIME – Let the sun in. Pull back your curtains and a drape so prospects can see how bright and cheery your home really is. Be sure your windows are sparkling clean too.
  11. LIGHTEN UP AT NIGHT- Turn on the excitement. Turn on all your lights, both inside and out, when showing your home in the evening. Lights add color, warmth, and make prospects feel welcome.
  12. AVOID CROWD SCENES – Potential buyers often feel like intruders when they enter a home filled with people. Rather than giving your house the attention it deserves, they are likely to hurry through. Keep the company present to a minimum.
  13. WATCH YOUR PETS – Dogs and cats are great companions, but they are not when you’re showing your home. Pets have a talent for getting in the way. Do everybody a favor: keep your dog or cat outside if you can, or at least out of the way. Also, be sure your home does not have any pet odor that could make the buyer feel uncomfortable.
  14. THINK VOLUME – Rock ‘n roll will never die, but it might kill a real estate transaction. When it’s time to show your home, it’s time to lower the volume on the stereo or TV.
  15. RELAX – Be friendly, and don’t try to force conversation. Prospects want to view your home with a minimum of distractions or interruptions.
  16. DON’T APOLOGIZE – No matter how humble your abode, never apologize for its shortcomings. If a prospect volunteers a derogatory remark about your home, let Michelle handle the situation.
  17. KEEP A LOW PROFILE – Nobody knows your home as well as you do, but Michelle knows the buyers. She will know what they need or what they want. Michelle will have an easier time articulating the virtues of your home if you stay in the background.
  18. DON’T TURN YOUR HOME INTO A SECOND-HAND STORE – When a prospect comes to view your horne, don’t distract them with offers to sell your furnishings. You may lose the biggest sale of all; that is, your home.
  19. DEFER TO EXPERIENCE – When prospects want to talk about price, terms and conditions, or other real estate matters, let them speak to the expert, Michelle Fradella. That’s when a good agent earns his or her pay by putting highly effective negotiating and training techniques to use.
  20. HELP MICHELLE – Michelle will have an easier time selling your home if showings are scheduled through the agent’s office. You’ll also appreciate the results. If a prospect contacts you directly, get their name and number and give it to Michelle.
Posted on

15 Tips for Packing Like a Pro

1. Plan ahead by organizing and budgeting. Develop a master “to do” list so you won’t forget something critical. To estimate moving costs, use a moving calculator.
2. Sort and get rid of things you no longer want or need. Have a garage sale, donate to a charity, or recycle.
3. But don’t throw out everything. If your inclination is to just toss it, you’re probably right. However, it’s possible to go overboard in the heat of the moment. Ask yourself how frequently you use an item and how you’d feel if you no longer had it. That will eliminate regrets after the move.
4. Pack like items together. Put toys with toys, kitchen utensils with kitchen utensils. It will make your life easier when it’s time to unpack.
5. Decide what, if anything, you plan to move yourself. Precious items such as family photos, valuable breakables, or must-haves during the move should probably stay with you. Don’t forget to keep a “necessities” bag with tissues, snacks, and other items you’ll need that day.
6. Use the right box for the item. Loose items are prone to breakage.
7. Put heavy items in small boxes so they’re easier to lift. Keep weight of each box under 50 pounds, if possible.
8. Don’t over-pack boxes. That will increase the chances that items inside the box will break.
9. Wrap every fragile item separately and pad bottom and sides of boxes.
10. Label every box on all sides. You never know how they’ll be stacked and you don’t want to have to move other boxes aside to find out what’s there.
11. Use color-coded labels to indicate which room each item should go in. Color-code a floor plan for your new house to help movers.
12. Keep your moving documents together in a file. Including important phone numbers, driver’s name, and moving van number. Also keep your address book handy.
13. Back up your computer files before moving your computer.
14. Inspect each box and all furniture for damage as soon as it arrives.
15. Remember, most movers won’t take plants. If you don’t want to leave them behind, you should plan on moving them yourself.
Posted on

10 Tips For First-Time Sellers

At first the task seems daunting: You haven’t sold a home before, the market looks complex, and what worked for owners 10 or 20 years ago seems inappropriate today.
What steps should you take? Here’s a baseline list to get you started.  You Can Do It. Other owners have done it and so can you.
Define Your Goal.
Do you want the highest sales price — or the biggest check at closing? They’re not necessarily the same. Imagine that two homes sell for $300,000, but one owner pays 2 points and agrees to replace the roof. The owner who sold without such costs got a bigger check at settlement. The bottom line: To have a successful sale you need to look at both price and terms — you must have a strong negotiator in your corner.
Times Have Changed.
Today’s real estate marketplace is radically different when compared with 10 years ago. Purchasers now use the Internet, receive seller disclosure forms, get home inspections, and are routinely represented by buyer brokers. The result is that buyers can be better prepared than in the past.
Sparkle And Shine.
Imagine going to a supermarket and seeing dusty fruit or aisles filled with old shelving and cans. It doesn’t happen because the grocery store knows how to present its goods. Sellers must do the same. Get rid of things you don’t want to move, organize closets and storage areas, and clean everywhere.
Mechanics Count.
Buyers expect everything to work. Home inspections are now entirely common and what buyers miss home inspectors will catch. Fix and paint things now and they won’t be an issue in the future.
Think Broadway.
When buyers see your home, it’s showtime. They want an environment where they can see themselves. Given them a show where everything is painted, arranged, and attractive, a home where the only issue is when to move in.
How’s The Market?
Real estate is local. Your broker can explain current market trends in your community, including what’s selling, what isn’t selling, and why. This information is central to getting the best possible price and terms.
Know Your Rivals.
Your property will be competing with other homes for buyer attention. Ask your broker how to be competitive — and how to have an edge.
What Time Is It?
Markets differ by location and time. When interest rates are low and the local job base is growing, it’s great to be a seller. But when times are slack and mortgage rates are rising, homes also sell. In 1981, when the prime rate topped 20 percent and the population was smaller, 2.4 million existing homes were sold. The trick is to be realistic, to get as much as market conditions will allow.
Understand The Plan.
Real estate marketing involves far more than a sign in the yard and an ad in the paper. Successful brokers use a variety of methods to attract and qualify prospects, including the latest Internet and communication advances.
Posted on

5 Common First-Time Homebuyer Mistakes

  1. They don’t ask enough questions of their lender and miss out on the best deal.
  2. They don’t act quickly enough to make a decision and someone else buys the house.
  3. They don’t find the right real estate professional who is willing to help you through the homebuying process.
  4. They don’t do enough to make their offer look good to a seller.
  5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.
Posted on

10 Steps to Prepare for Homeownership

  1. Decide how much home you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
  2. Develop a wish list of what you’d like your home to have. Then prioritize the features on your list.
  3. Select three or four neighborhoods you’d like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.
  4. Determine if you have enough saved to cover your down payment and closing costs. Closing costs, including taxes, attorney’s fee, and transfer fees average between 2 percent and 7 percent of the home price.
  5. Get your credit in order. Obtain a copy of your credit report.
  6. Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you.
  7. Organize all the documentation a lender will need to pre-approve you for a loan.
  8. Do research to determine if you qualify for any special mortgage or down payment assistance programs.
  9. Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
  10. Find an experienced, full-time REALTOR® who can help you through the process.
Posted on

Can You Afford to Sell your Home?

by Michelle Fradella, Associate Broker – Keller Williams Realty Professionals

With the market changing drastically over the past few years, there is a new question that must be asked – “Can you, Mr/Mrs Seller, afford to sell your home?”  Now this question may be a bit alarming to some people, but the fact of the matter is sellers are finding that the market is not able to sustain the amount of money they owe on their homes (if they have refinanced in the past 5 years), and they may not be able to get enough for their home to actually close without bringing money to the table.

Many sellers may have heard about, and think they are in the position to consider a “short sale”, but unfortunately not everyone realizes the intricacies of doing one.  It’s important for a seller to notify their Realtor AT THE TIME OF LISTING, that they will come short of the amount they need to pay off their loan, and will need to ask the lender for the possibility of a short sale.  Keep in mind, however, that the lender is never, in any way, obligated to actually take less than what is owed on the house, and that there are specific circumstances that must be present, in order for this to be considered.

A short sale is not something that can be handled overnight, either.  The process will all depend on many variables that are not the same in each case.   A short sale can take as short as a few weeks, or a few months, to over a year to get approved.  A buyer may not be willing to wait for you to get that approval, or their lender may not let them wait, either.

Another important factor to know is that (even if you are in the process of working a short sale with your lender, and have a buyer ready to buy) if you don’t make your regular payments to your lender, they can, AND WILL, foreclose on your home.  If you aren’t able to make the payments during this time, your Realtor needs to know this, so they can also be in touch with the Foreclosure Department for your lender, and communicate with them constantly to assure that the house isn’t taken in foreclosure.  It’s standard practice that the foreclosure department and short sale department of a lender do not communicate with each other, and things can go wrong very quickly.

When putting your house on the market, you have to disclose to all Realtors and parties that your home can only go to closing if the lender approves a short sale.  You will also need to get all the contact information for your lender to your Realtor so they can be in constant contact with the lender to assure that things are moving in the right direction.  Be aware that not all Realtors are experienced in the intricacies of short sales.  It’s very important for your Realtor to know and understand the process, to be able to assist you in the best way possible.  Look for a Realtor that has the “SFR” designation (Short Sale and Foreclosure Resource).

Remember to always disclose to your Realtor, up-front, what your true situation is, and be prepared to be in the process for the long haul.