FIVE FACTORS IN GETTING TOP DOLLAR FOR YOUR PROPERTY

Did you know? The best chance for selling your property is within the first seven weeks! Studies show that the longer a property stays on the market, the less financial return the seller will net.

There are 5 main factors to achieving your goal of getting top dollar for your property.

Factor 1: PRICING

It is very important to price your property at a competitive market value right when you list it. The market is so competitive that even over-pricing by a few thousand dollars could mean that your house will not sell. I have found your first offer is usually your best offer.

An overpriced home:

• Minimizes offers
• Lowers showings
• Lowers agent response
• Limits financing
• Limits qualified buyers

When you think about it, 80% of the marketing is done when we decide on what price to list your home.

For people unwilling to list a property at current market value, I usually recommend holding off on putting the property on the market for awhile.

Factor 2: CLEANING

Most people are turned off by even the smallest amount of uncleanliness or odor when buying a home. Sellers lose thousands of dollars because they do not adequately clean. If your house is squeaky clean, you will be able to sell your home faster and net hundreds, if not thousands, of dollars more.

If you are planning on moving, why not get rid of that old junk now so that your house will appear larger? Make more space!

Odors must be eliminated, especially if you have dogs, cats, or young children in diapers, or if you are a smoker. You may not notice the smell, but the buyers do! Most agents have a difficult time communicating to their sellers about odor. If you employ an agent to get the most amount of money for you, please don’t take offense if he/she must confront you about odor problems.

Factor 3: ACCESS

Top selling agents will not show your home if both the key and access are not readily available. They do not have time to run around town picking up and dropping off keys. They want to sell homes! The greatest way to show a house is to have a key!

When your home is being shown, be sure to do the following:

• Keep all lights on, including exterior “coach” lights by your front door
• Keep all drapes and shutters open
• Keep all doors unlocked
• Leave soft music playing
• Take a short walk with your children and pets
• Let the buyer be at ease and let the agents do their job

Factor 4: PAINT AND CARPET

Paint is your best improvement investment for getting a greater return on your money. Paint makes the whole house smell clean and neat. If your house has chipped paint, exposed wood, or the paint looks faded, it is time to paint.

If your carpet is worn, dirty, outdated, or an unusual color, you may need to seriously consider replacing it. Many houses do not sell because of this problem. Don’t think that buyers have more money than you do to replace carpet. They don’t. They simply buy elsewhere.

Factor 5: CURB APPEAL

The first impression a buyer gets of your home is from the curb.

Your front yard immediately reflects the inside condition of your house to the buyer. People enjoy their yards. Make certain that the trees and bushes are trimmed so the house can be seen from the street. Have the grass mowed, trimmed and edged. Walkways should be swept. The front door should be freshly painted or freshly stained.

Clean away debris. Remove parked cars. This all adds to curb appeal.

If a buyer does not like the outside, they may not stop to see the inside!

Well, now you know all of the 5 main factors to getting top dollar for your property.

If you carefully consider these factors, you will maximize your chances of selling your property within the first seven weeks for top dollar!

Steps to Finding the Best Foreclosure Properties

Buying a foreclosed home, whether it’s a pre-foreclosure or already in the foreclosure process, can be the answer in finding your perfect home at a bargain price.  If you are thinking about purchasing a foreclosed home, you will need to have the right information available in order to find the property that meets your needs.

There are a lot of things to consider with a foreclosed home that you don’t have to worry about with a traditional sale.  Many people have found it pays off in the long run to get some foreclosure assistance as far as what to look for in foreclosure properties to make sure you get the best buy.

Read on for tips on what you should know when looking for a pre-foreclosure or foreclosure property.

Understand the Foreclosure Process

Before you start looking for foreclosure property, you should be sure that you understand the procedure for buying a foreclosed home.  You need to be aware of the differences between making an offer on a home during the pre-foreclosure period, bidding at public auction, and buying bank-owned properties.

Get Pre-Qualified First

Before you begin seriously looking for a home, you should contact a mortgage lender and get pre-qualified.  Pre-qualifying for a home loan will tell you exactly how much you can afford to spend.  If you can only qualify for a $150,000 mortgage, there is no sense wasting time looking for a $200,000 home; but if you discover you can afford to spend more, then you will be aware of your options.

Decide What You Need/Want in a Foreclosed Home

Before getting into the foreclosure listings, you will want to pin down exactly what your needs are and what you really want in a home.  Are you looking for a single-family home in the suburbs with room for the kids to play, or would you prefer a condo in a quiet community?  The number of bedrooms and bathrooms you need are a major consideration, as well as the number of floors, lot size, and condition of the neighborhood.

Once you have narrowed down your requirements, you will be able to focus your search on the properties that make sense for you.  I can help you locate properties that are right for you.

Visit the Neighborhoods with Foreclosure Properties

Before you make an offer on the home, take a drive around the neighborhood.  Do the other homes present curb appeal, or is the neighborhood in disrepair?  Is it close to schools, shopping, major highways, and other amenities that are important to you?  Only if you would feel comfortable living in the area should you consider buying a home there.  If you have doubts at any time during your search, don’t be afraid to back away and start over.  If one property is not suitable for your needs, keep looking – don’t buy into something that does not meet your requirements.

Research the Property

This is a critical step in choosing a property that will work for you.  Once you have located a home that interests you, you should get all of the information you can.

• Keep in mind that foreclosure properties are sold “as is.”  Any necessary repairs will be your responsibility once you own the home.  The price of a professional home inspection is well worth the trouble it will save you if there is structural or roof damage that entails expensive repairs.
• A title search will reveal any existing liens on the home.  If you buy during the pre-foreclosure period, any liens on the property will still be attached.  Any back taxes and other assessments must be satisfied before closing – you do not want to close on a home without a clear title.
• Look up recent real estate deals in the surrounding area.  Finding out the selling price of similar homes nearby will give you an idea of the market value of the home you are considering; this is important in determining whether you are getting a good value for your money.
• Calculate all of your costs, including purchase price, closing costs, and any necessary repairs, as well as any back taxes and legal fees.  Make sure that your expenses will not outweigh the discounted price you expect to pay on the home.
• I can help you with the research.  I know the local market conditions.  I understand the foreclosure process and I can help negotiate the best deal for you.  Call me today!

4 Buyer Incentives that Sell Homes

In today’s market, it’s pretty easy for a seller to find themselves in a serious state of stuck: home stuck on the market with no bites from buyers, and family stuck in the home until the home sells. And that doesn’t even account for the feeling of stuck that comes from having gone just about as low as you can go on price without turning your transaction into a short sale. If you’re trying to sell, and you’ve lowered the price but still find your home struggling to compete against a bunch of other, similiarly priced homes with similar features, selling can seem difficult at best, impossible at worst.

The worst part of this particular flavor of stuck is the feeling that the whole situation is out of your control, that there’s nothing within your power that will move your home off the market.  You’ve already painted the place, replaced the carpet, tricked out the curb appeal and lowered the price as far as you can go.  So what else is a seller to do?

Offer incentives.

Incentives are perks – they can be big or little – that a seller offers to their home’s eventual buyer.  The most outlandish incentives are the ones that make the headlines, like the Ferrari one Malibu owner threw in with the sale of their condo last year, or the year’s worth of cookies that actor George Hamilton reportedly negotiated into the sale of his home
from a bakery owner.  But the incentives with the most power to get your home sold tend to be much less exciting perks that actually fill a real need the average home buyer has.

Here are four basic incentives you should consider offering if you’re having a hard time getting your home sold:

1. Interest rate buy-down.  When you hear sellers say they will “pay points,” what they are doing is offering to award the buyer a certain number of percentage points of the sales price, which will, in turn, be paid to the buyer’s lender as discount points that bring the buyer’s interest rate down. For the buyer, this is a big deal, as it decreases the pressure they feel to guess the right day to lock in their interest rate (a common source of serious stress among buyers), and sends the message that if they buy your home, they’ll automatically beat the market rate. And what buyer doesn’t want that?!

Seller-paid rate buy-downs also save buyers money on their monthly payment over the entire lifetime of their loan, and the seller-paid points are usually tax deductible, to the buyer, the next time they file taxes. You can see why these incentives are so powerful at attracting buyers!

2. Closing cost credit.  Many buyers trying to break into the market while prices are low are already scraping the bottom of their savings account barrels to come up with their down payment money.  With most home loans, the buyer will have to come with anywhere from 3 to 6 percent of the loan amount, in cash, on top of their down payment, to cover closing costs like loan fees, escrow services and title or mortgage insurance.  (And strangely enough, the buyers putting the 3.5 percent minimum down payment on an FHA loan are likely to have to come up with the higher end of the closing cost range, 6 percent, to cover their mortgage insurance.)

Some smart sellers (and their agents) include in their home’s listing and marketing materials the offer to pay a credit of 3, 4, 5 or even 6 percent of the home’s sale price at closing, to defray the buyer’s closing costs. A closing cost credit is a great financial help to buyers and a strong differentiator that can make your home much more attractive than nearby listings.  Your listing agent can help you run the numbers on how much of a credit you can afford to offer, and how to make an overall package – listing price and credit – that will be maximally magnetic to prospective buyers.

3. HOA dues credit.  If you are selling a home that is in a homeowners’ association (HOA) that charges monthly or even annual dues, then surely you recall buying that home and being overwhelmed at the prospect of going from rent being your sole monthly housing expense, to having a laundry list of expenses starting with your mortgage, including property taxes and insurance and then having HOA dues as the unpleasant cherry on top.

One way to overcome that concern in the minds of buyers and to differentiate your unit from all the other, similar units for sale in your complex is to offer a credit at closing that covers the buyer’s HOA dues for 6 months, a year, or even longer.  Talk with your agent about how to do this strategically, in a way that will offer the maximum lure for buyers but will not run afoul of any guidelines for seller credits imposed by the buyer’s lender.

4. Broker incentives.  Some savvy sellers who can’t afford to offer buyers several percentage points’ worth of the proceeds of sale toward closing costs take a different route, offering to pay a bonus percentage point (or more) in
   incentives to the eventual buyer’s broker or agent – on top of the commission, rather than to the buyer themselves.  Over 90 percent of buyers who are ready, willing and able to buy a home on today’s market are represented by a broker.  And brokers have to sort through sometimes hundreds of pretty similar listings to decide which ones to show a buyer any given Sunday.

Offering a broker’s incentive makes your home stand out among all those listings to the brokers and agents who put buyer’s property tours together.  While these aren’t “buyer incentives,” strictly speaking, but they do operate to boost the number of buyers that come view your home – in turn, boosting your home’s likelihood of getting an offer.

10 Quick & Easy Energy-Saving Summer Tips

1. Limit fan use to only when you are in the room with them. Ceiling, oscillating and standing fans give you the feeling of being cooler without actually changing the temperature of the air.

2. Use compact fluorescents, which burn cooler than regular bulbs. Not only will you save year-round, up to $40 over the life of the bulb, and in the summer you’ll reduce the heat generated into a room.

3. Use evaporative coolers and whole-house fans. Both are cost-effective methods of keeping a house cool without spending a lot.

4. If you have central air conditioning, keep your thermostat at 78 degrees. Each degree above 78 can knock off an additional six to seven percent off your cooling costs.

5. Get rid of hot air. Use an exhaust fan to blow hot air out of your kitchen while you’re cooking. The savings on your cooling costs far outweigh the electricity used by the fan. Also, take lukewarm showers and baths to avoid humid air, which holds more heat.

6. Turn your water heater down to 120 degrees. This saves you money and is a safety measure if you have children in the house.

7. Hold off on doing laundry and dishwashing until nighttime to avoid generating extra heat in your home. Also, consider taking advantage of the warmer air and dry your laundry outside.

8. If you have a pool, turn off your filter overnight when the pool is not in use.

9. Use your microwave or smaller, countertop appliances for cooking instead of the oven or stove.

10. Close blinds, drapes and shades during the hottest part of the day. This keeps the strong sunlight from heating your home.

Bonus Summer Safety Tips!
* When possible, avoid outdoor activities during midday, when the sun’s rays are strongest.
* Keep perishable food cool on longer trips. When outside, keep the cooler in the shade and continue to replenish the ice!
* Check for hazards in the yard during thunderstorms. Secure any unstable items on your house or in your yard that could be blown away or knocked over.

4 mistakes to avoid when buying a foreclosure

Foreclosures continue to flood real estate markets across the country, and buyers are looking to cash in on what they view as some of the best real estate deals. But experts say that while some foreclosures are a great purchase, buyers need to be cautious before jumping in. They must make sure they’re really getting a bargain.

Dan Steward, president of Pillar to Post Professional Home Inspections, advises buyers considering a foreclosure to avoid the following top mistakes:

1. Don’t judge a house by looks alone. A $2 million mansion may look fabulous but have mold hiding beneath the walls or need numerous, costly repairs. A fixer upper, on the other hand, may look rundown but have excellent bones and be repaired at a reasonable cost. A home inspection prior to purchasing a property can help buyers determine if they might be getting in over their head, Steward says. He cautions buyers to not just rely on previous inspections, however, since vacant homes can deteriorate rapidly.

2. Don’t focus on price alone. Buyers may focus on the ultra-low price so much that they forget to factor in other qualities, such as the home’s school district, view, location and local crime rate. Steward cautions buyers not to assume that a previous owner’s financial problems cause all foreclosures.

3. Don’t be tempted to “flip.” Purchasing a home at bargain price, updating it and trying to sell it for a lot more may seem tempting, but Steward warns buyers to be cautious. Unless the buyers are pros at house flipping, they’ll likely run into several novice mistakes in trying to make fast money on flipping a foreclosure. Steward recommends buyers consult a real estate professional, home inspector and contractors before considering a flip.

4. Don’t go over budget. Foreclosures often require some fixes so buyers need to make sure they have the money to afford needed repairs. Steward recommends that buyers have at least half of the money in cash for needed repairs. He says that buyers will want to avoid taking more loans than needed, particularly private loans, because the interest on them will slowly chip away at their initial foreclosure bargain.

Source: “What to Watch Out for When Buying a Foreclosure: Help Your Clients Know Which to Buy … and Which to Walk By,” RISMedia (April 7, 2011)

Avoiding Home Buyer’s Headaches

When you’re buying a home, would you know what to do if your financing fell through the day before closing, your home inspection found a termite infestation, or your future neighbors had just built a wall on your property?

1. Find a REALTOR® who you can relate to. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the agent you choose is both skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, any more than there’s a right time to sell. If you find a home now, don’t try to second-guess the interest rates or the housing market by waiting. Changes don’t usually occur fast enough to make that much difference in price, and a good home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision.

4. Accept that no house is ever perfect. Focus in on the things that are most important to you and let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price may lose you the home you love.

6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself – room size, kitchen – that you forget such issues as amenities, noise level, etc., which have a big impact on what it’s like to live in your new home.

7. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be some costs. Don’t leave yourself short and let your home deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big commitment, but it also yields big benefits.

10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of more than 6 percent annually over the past three decades, a home’s most important role is as a comfortable, safe place to live.

Winter 2011 Energy & Cost Savings Tips

 Save Energy This Winter
11 Ways to Cut Energy Costs in 2011

  1. Turn down the dial.
Set your thermostat to 68 degrees. With each degree you lower, you can save 2-5% on heating costs. Layer warm weather clothing while at home and you won’t even notice the difference. At night or when leaving the home for an extended period of time, lower the thermostat to 55-60 degrees. An automatic thermostat will make this even easier! Just program the temperatures based on your daily schedule. Doing this will knock off 5-20% on your heating bill.

2. Don’t overreact to a cold home.
When you come home after a day of work to a frigid home, or are home in the middle of the day when your thermostat is programmed to 55, don’t overreact and crank the heat up to 75. You only need to heat to 68 degrees and setting the thermostat to 75 won’t heat the home any faster than if it’s set to 68. If you are home before the furnace has turned on, you can simply override your thermostat to 68. Be patient and throw on a sweater. You may not realize when the thermostat reaches 68, and before you know it you’ve been heating your house at 7 degrees higher than you need – or want – to pay for!

3. A clean furnace is an efficient furnace.
Replace or clean furnace filters once a month. Dirty filters restrict air flow and increase energy use.

4.    Hot water can still be hot and save you money!
Set your water heater to the normal setting or 120 degrees. You can save up to 11% on heating costs!

5.    Go green with ENERGY STAR®.
Consider replacing old gas appliances with ENERGY STAR® qualified products or add HWA’s GreenPlus to your plan. If your appliances are more than 12 years old, you should consider the upgrade. The Consumer Energy Center recommends replacing your old gas appliances with ENERGY STAR® qualified products. Gas water heaters are labeled with an EF number the higher the EF, the more energy efficient the appliance will be.

6.    Beat the cold weather dryness.
Use a humidifier to add moisture to the dry winter air in your home. Moister air feels warmer, so by using a humidifier, you will be more comfortable in your home even when the thermostat is set to a lower temperature.

7.    If you don’t use it, don’t heat it.
Close off unused rooms such as spare bedrooms. When the room is not in use, close the floor or wall registers and keep the doors closed. If you have guests coming to visit, you can re-open everything and the room will warm up in just a couple hours.

8.    Let the sunshine in.
Open south or east facing window curtains and blinds in the morning and during the day to take advantage of sunny days. At night, close window coverings to keep the heat in.

9.    Let your radiators and heating vents do their job. 
Don’t block your radiators or vents with furniture or draperies. Keep them free of dirt and dust and position your furniture so the heat can fill the room.

10. Cold water can do it better. 
Cold water does more for your disposal. Run cold water when you are using your garbage disposal and it will work even better. Hot water uses energy to warm the water. Cold water saves energy, plus it solidifies grease, moving it more easily through the garbage disposal and pipes.

11. Cook small.
Prepare meals with small appliances rather than firing up the range. A microwave, toaster oven, electric skillet and slow cooker use much less energy than the range. Plus, the smaller appliances heat up much quicker. You can reduce cooking energy by as much as 80% when using your microwave for small portions. So when you’re preparing smaller recipes or just need a quick warm-up, the smaller appliances are perfect!