Many people think about selling their home but first decide to renovate so that the house will sell for more money. This is a mistake and I would like to explain why.
When you are living in a house you do the upgrades necessary to keep your house up, things like changing windows, painting, upkeep on gutters and roofs and even sometimes a small addition for the kids to have an extra room. These changes and updates to your house are things that you have to do in the course of owning a house for years. When you go to sell your house buyers will be comparing your home to other houses in the neighborhood and hopefully it is the same because those buyers are there to buy a house in a certain price range.
Lets say as an extreme that your neighborhood has houses that are in the 150,000 -180,000 dollar range and you decided to add an extra floor to your home that costs 50,000 dollars. Now once you have put that extra floor on the house you will want to sell your house, trouble is since you just sunk 50,000 into the house and you would like to get 60,000 for your trouble then you will need to get 240,000 for the house when it is listed and sold.
The kind of buyers that buy a 150,000 dollar house and the kind of buyers that buy a 240,000 dollar house are different people that have an idea where they would like to own. No one wants to have the best home in a poorer neighborhood instead they would like to have an OK house in a better neighborhood.
In the end you will of course get your home sold but you are not likely to get what you wanted for it. I remember the days back when I was a Realtor and you would go through a fantastic house that really didn't belong in the neighborhood that it was in, Realtors would marvel at this and that in the house but in the end didn't bring offers. People looking in that price range were not interested in the neighborhood they were interested in another area altogether.
Please remember that if you are thinking of doing an addition or adding some feature to your house that is out of place with where you live that it is better to thing of it as a feature that you want to have and live with and not think about how it will affect the resale price of your home.
Saturday, March 04, 2006
Monday, February 20, 2006
New Kitchen Appliances site
I am always on the lookout for more sites that have to do with home purchase and home sales. I just found a new one that has articles on Kitchen Appliances as well as top sites for kitchen appliances. The Kitchen appliance site is broken up with lots of info on individual topics like GE microwaves or Amana Fridges that kind of thing
Monday, February 13, 2006
Real Estate Investment
Many people are interested in becoming real estate tycoons like Donald Trump. There are many ways to make money in real estate but the very best way is to become a real estate investor. To become a real estate investor you must do the following.
1. Buy a property with low or no money down
2. Rent out the property
3. Take the extra monthly income and buy another property
4. Repeat until you have a ton of houses
The key to this process is to buy a house with as little money as possible and also to make sure that your mortgage, tax and other costs are paid for by the renter that you have put into the house or apartment. For most people to do this they need to have some seed money, this in this day and age is difficult as you will need a lot of money to get into the market. The following books will show you how to buy properties with no money down.
• Buy A House In 10 Days! Guaranteed!
Buy your 1st investment property or get a house of your own in 10 days! All with No Money Down, No Credit Check, No Job Check!
• Make Real Money Flipping Foreclosures!
Our Usa Foreclosure Manual Offers The Best Advice On How To Purchase Forclosures With No Credit Or Money Down! - #1 in Google.
• Own Real Estate With No Money Down.
Formula for building massive wealth with no money down.
• For Sale - No Money Down.
Buy your Dream House or make money for no money down!
There are a lot of scams out there to try to part you from your money so watch out.. The next thing that you have to work on is finding these properties. Often the best markets for buying investment properties are out of major cities as what you are looking for is a low purchase price so your monthly costs are low. When you have more money coming in from your renter then you have to pay out for the property then you are in a position known as positive cash flow. Positive cash flow is the holy grail of real estate investing as it allows you to go as long as you want with your property without putting money into it.
Good luck with your new real estate investment business!
1. Buy a property with low or no money down
2. Rent out the property
3. Take the extra monthly income and buy another property
4. Repeat until you have a ton of houses
The key to this process is to buy a house with as little money as possible and also to make sure that your mortgage, tax and other costs are paid for by the renter that you have put into the house or apartment. For most people to do this they need to have some seed money, this in this day and age is difficult as you will need a lot of money to get into the market. The following books will show you how to buy properties with no money down.
• Buy A House In 10 Days! Guaranteed!
Buy your 1st investment property or get a house of your own in 10 days! All with No Money Down, No Credit Check, No Job Check!
• Make Real Money Flipping Foreclosures!
Our Usa Foreclosure Manual Offers The Best Advice On How To Purchase Forclosures With No Credit Or Money Down! - #1 in Google.
• Own Real Estate With No Money Down.
Formula for building massive wealth with no money down.
• For Sale - No Money Down.
Buy your Dream House or make money for no money down!
There are a lot of scams out there to try to part you from your money so watch out.. The next thing that you have to work on is finding these properties. Often the best markets for buying investment properties are out of major cities as what you are looking for is a low purchase price so your monthly costs are low. When you have more money coming in from your renter then you have to pay out for the property then you are in a position known as positive cash flow. Positive cash flow is the holy grail of real estate investing as it allows you to go as long as you want with your property without putting money into it.
Good luck with your new real estate investment business!
Saturday, January 14, 2006
Getting PreQualified for your mortgage
It is important that you understand the basic difference between being "pre-qualified" or "pre-approved" by a mortgage lender as you are looking for a home to purchase. A pre-qualification is not the same as pre-approval. The buyer, seller, and agents involved in the transaction need have the same agreement regarding the buyer's ability to close the purchase.
Your realtor will want you to talk with a mortgage company as soon as possible. The reason is that the realtor needs to know the top price range you can afford and housing expense you are comfortable with. It also helps your realtor when presenting an offer to the seller's agent to show that you have taken steps to approval. It may very well help persuade the seller to accept your offer. In many housing markets the pre-qualification or pre-approval letter is accepted as part of the purchase presentation to the seller's agent.
When you are speaking with a loan officer to be pre-qualified you are giving information about your financial condition. The loan officer will also ask questions regarding your credit. There may even be a credit bureau drawn to see where you stand. Then the loan officer will give you an opinion of how much you can afford based on the information you have told that person. This is not a commitment to make the loan! You should be given a letter that states the pre-qualified mortgage amount and type of loan. It should state further that loan approval could be issued after the information you gave is verified & formally underwritten.
When you receive a pre-approval it has more weight than a pre-qualification. The pre-approval letter will give the maximum loan amount with the specific details of the total mortgage. It should have only conditions such as clear title report, underwritten appraisal, general closing conditions and no negative change in your status as a buyer.
If you are serious about buying a home, and you are satisfied with the mortgage company, you should get as solid a pre-approval as you can. You don't want any surprises along the way.
About the Author
Bill Wehr has been in home loan origination for over 25 years. He is the owner of Great Pacific Northwest Mortgage http://www.billwehr.com , a residential mortgage company serving Oregon and Washington.
Your realtor will want you to talk with a mortgage company as soon as possible. The reason is that the realtor needs to know the top price range you can afford and housing expense you are comfortable with. It also helps your realtor when presenting an offer to the seller's agent to show that you have taken steps to approval. It may very well help persuade the seller to accept your offer. In many housing markets the pre-qualification or pre-approval letter is accepted as part of the purchase presentation to the seller's agent.
When you are speaking with a loan officer to be pre-qualified you are giving information about your financial condition. The loan officer will also ask questions regarding your credit. There may even be a credit bureau drawn to see where you stand. Then the loan officer will give you an opinion of how much you can afford based on the information you have told that person. This is not a commitment to make the loan! You should be given a letter that states the pre-qualified mortgage amount and type of loan. It should state further that loan approval could be issued after the information you gave is verified & formally underwritten.
When you receive a pre-approval it has more weight than a pre-qualification. The pre-approval letter will give the maximum loan amount with the specific details of the total mortgage. It should have only conditions such as clear title report, underwritten appraisal, general closing conditions and no negative change in your status as a buyer.
If you are serious about buying a home, and you are satisfied with the mortgage company, you should get as solid a pre-approval as you can. You don't want any surprises along the way.
About the Author
Bill Wehr has been in home loan origination for over 25 years. He is the owner of Great Pacific Northwest Mortgage http://www.billwehr.com , a residential mortgage company serving Oregon and Washington.
Friday, January 06, 2006
Interviewing Realtors
When it is time to pick a Realtor then it is also time to interview. The best way to choose a Realtor is to have a few com in and tell you what your house is worth and what they will do for you. Here is a good start.
When you are ready to select a REALTOR®, here are a few questions you can ask.
Make sure the REALTOR® presents a "listing presentation" to you. This presentation should answer many of these questions. If you will need a buyer's agent, also make sure everything is explained up front.
When you are ready to select a REALTOR®, here are a few questions you can ask.
Make sure the REALTOR® presents a "listing presentation" to you. This presentation should answer many of these questions. If you will need a buyer's agent, also make sure everything is explained up front.
- How long have you been a REALTOR®? Full or part time?
- What professional organizations do you belong to?
- Do you have a valid Department of Real Estate License?
- What is your responsibility to me as your client?
- Do you represent both buyers and sellers at the same time? If so, Who's best interest are you looking out for?
- How will you keep me informed of new listings that I may be interested in?
- What does the listing agreement entail, what are the beginning and expiration dates, and what are the fee amounts I will be paying?
- Is there a charge or contract when working with buyers? (Some brokers/agents DO have contracts and fees)
- What is your marketing philosophy? Ask for their complete marketing plan A-Z.
- What can the Realtor's company do for you? What is their company's share of the local market? Are they part of a large or world wide referral network?
- What types of things separate you from your competition and will you give me some feedback? How effectively will they advertise? Do they have 24-hour advertising capability?
- What disclosure laws apply to me and what do I need to be aware of?
- How does the Realtor market to other Realtors?
- Are they a Realtor or a Real Estate agent? (There is a difference)
- Does the Realtor have a strong internet presence? If not, why? Will your home have enough exposure for all potential buyers to view? (85% of buyers go to the internet first)
Cecilia Sherrard is a full time dedicated Realtor in Northeast Ohio. With years of experience and knowledge, she has maintained a multi-million dollar producer status.
Servicing areas such as: Westlake, Lakewood, North Olmsted, Rocky River, Cleveland, Brook Park, Parma, etc. Visit her website at http://www.youshouldown.com
Article Source: http://EzineArticles.com/?expert=Cecilia_Sherrard
Thursday, January 05, 2006
How to sell as a FSBO
This article is written by a Realtor knowing full well that most people that try to sell on their own end up using a Realtor if they have to sell. great tips for the do it your selfer.
Do you know that homeowners across the country sell their own homes every day? It is true that 80% of Fsbo’s’ end up listing with a real estate agent. But with these 7 easy steps you can save thousands of dollars for you and your family.
1.Determine Your Market Value: Some of leading edge real estate brokers offer a free over-the-net home evaluation. Online; city and county tax records, Realtor.com, bank on line home evaluation tools. Local legal business newspapers.
2.Preparing Your Home To Sell: The idea is to have the best home on the market in your price range. Hire a home inspector; get all repairs complete, spruce up landscape add fresh mulch, flowers. Clean windows, touch up painting. Move to storage all extra furniture clothes garage/basement stored items.
3.Make The Most Of Low Cost Real Estate Brokers: Discount or minimum service real estate brokers (some are internet based) offer a low cost option to place your home in the MLS at $200 to $500 it’s a steal. Pay the extra charges for additional photos and virtual tours these will place your home higher on the web page searches.
4.FSBO Marketing & Advertising: Get an 800# call capture system a pre recorded message to capture buyer information, use it on all signs and ads. Advertise in newspapers only on the major real estate ad day. Open houses piggyback on area realtor open houses.
5.FSBO Paperwork: Hire a real estate attorney. Mortgage brokers will qualify your buyers. The State Real Estate Commission has all the required forms. Title companies/closing attorneys handle all the closing paperwork.
6.Working With Real Estate Agents: Buyers Agent, the fastest way to sell is to co-operate with real estate buyers agents. Offer to co-broke, co-operate or broker protect for a quicker sale. Cost is normally 2 ½% to 3% of sale price sometimes you can get as low as 1 ½ % to 2% if the agent sees a quick easy deal. You can save this money by selling yourself, weigh the cost benefits of a quicker sale versus 2 to 3 months more on the market.
7.Close And Move On: Buyer selects closing attorney, Title Company, Mortgage Company, Survey engineer and pest control inspector. Your job is to have a marketable title be legally able to transfer the property, complete all agreed on repairs, move out (leave a clean home), sign all necessary paperwork, grab your check and move on.
There are costs to sell your home properly and quickly. In the end a savings of 3% on a $275,000.00 home is $8,250.00 in your pocket a nice prize for not a lot of effort. It’s a good start toward your daughter or sons college tuition next year.
Bill Carey with over 30 years in real estate sales, investments, and home building offers a unique perspective to the buying and selling process of residential real estate for F*R*E*E consumer information and reports log on to http://www.CharlotteNCExecutiveHomes.com and see "Insider Real Estate Secrets Revealed" ...a must-read for Home-Owners and Renters! It's a F*R*E*E 12-lesson e-course covering more than 20 topics exposing the realities behind buying and selling a home. It Could Make(or Save) You Thousands of Dollars
See http://www.BillCareyRealtor.com and sign up for our monthly e-newsletter with tips for buyers, sellers, home owners and soon to be home owners.
(Your Comments are Welcome)
Article Source: http://EzineArticles.com/?expert=Bill_Carey
Do you know that homeowners across the country sell their own homes every day? It is true that 80% of Fsbo’s’ end up listing with a real estate agent. But with these 7 easy steps you can save thousands of dollars for you and your family.
1.Determine Your Market Value: Some of leading edge real estate brokers offer a free over-the-net home evaluation. Online; city and county tax records, Realtor.com, bank on line home evaluation tools. Local legal business newspapers.
2.Preparing Your Home To Sell: The idea is to have the best home on the market in your price range. Hire a home inspector; get all repairs complete, spruce up landscape add fresh mulch, flowers. Clean windows, touch up painting. Move to storage all extra furniture clothes garage/basement stored items.
3.Make The Most Of Low Cost Real Estate Brokers: Discount or minimum service real estate brokers (some are internet based) offer a low cost option to place your home in the MLS at $200 to $500 it’s a steal. Pay the extra charges for additional photos and virtual tours these will place your home higher on the web page searches.
4.FSBO Marketing & Advertising: Get an 800# call capture system a pre recorded message to capture buyer information, use it on all signs and ads. Advertise in newspapers only on the major real estate ad day. Open houses piggyback on area realtor open houses.
5.FSBO Paperwork: Hire a real estate attorney. Mortgage brokers will qualify your buyers. The State Real Estate Commission has all the required forms. Title companies/closing attorneys handle all the closing paperwork.
6.Working With Real Estate Agents: Buyers Agent, the fastest way to sell is to co-operate with real estate buyers agents. Offer to co-broke, co-operate or broker protect for a quicker sale. Cost is normally 2 ½% to 3% of sale price sometimes you can get as low as 1 ½ % to 2% if the agent sees a quick easy deal. You can save this money by selling yourself, weigh the cost benefits of a quicker sale versus 2 to 3 months more on the market.
7.Close And Move On: Buyer selects closing attorney, Title Company, Mortgage Company, Survey engineer and pest control inspector. Your job is to have a marketable title be legally able to transfer the property, complete all agreed on repairs, move out (leave a clean home), sign all necessary paperwork, grab your check and move on.
There are costs to sell your home properly and quickly. In the end a savings of 3% on a $275,000.00 home is $8,250.00 in your pocket a nice prize for not a lot of effort. It’s a good start toward your daughter or sons college tuition next year.
Bill Carey with over 30 years in real estate sales, investments, and home building offers a unique perspective to the buying and selling process of residential real estate for F*R*E*E consumer information and reports log on to http://www.CharlotteNCExecutiveHomes.com and see "Insider Real Estate Secrets Revealed" ...a must-read for Home-Owners and Renters! It's a F*R*E*E 12-lesson e-course covering more than 20 topics exposing the realities behind buying and selling a home. It Could Make(or Save) You Thousands of Dollars
See http://www.BillCareyRealtor.com and sign up for our monthly e-newsletter with tips for buyers, sellers, home owners and soon to be home owners.
(Your Comments are Welcome)
Article Source: http://EzineArticles.com/?expert=Bill_Carey
Should you use a Realtor
This is the first article on choosing a Realtor. The first question you should ask yourself is whether you should choose a Realtor or sell yourself as a for sale by owner. Although I was once a Realtor I want to make sure I give balanced information. This article is why you should choose a Realtor. The next article will be why you should sell yourself.
When it comes time to sell your home, should you try to sell it on your own, or should you list it with a licensed Realtor? Consider the following factors to help you decide:
EXPOSURE
Realtors, or real estate agents, are part of an office of agents, and each of them knows of buyers that are currently in the market for a home. Their buyers are pre-qualified, that is, they have already seen a lender and have qualified for a loan so the buyer knows exactly how much they can afford, and the Realtor does too. In many areas, a realtor won’t even show homes to a buyer until they pre-qualify. The process saves a lot of wasted time on everybody’s part.
Contrast this with the prospect of you putting up a “For Sale” sign in your front yard, and having to deal with people that will be calling you to talk about your house and want to walk through it, even though they don’t have the resources to actually buy it. In the end, they are just wasting your time.
Realtors also have contact with many people from out of town who are relocating to your area. Each realtor in town gets contacted frequently through their website, by people that are looking for a home by long-distance. They may be coming to town soon to look at available homes for a few days. The Realtor lines up a number of homes for them to tour that fit their criteria. One of them could be yours. But, if you FSBO, that potential buyer won’t know your house is on the market until they get to town, if then.
EXPERIENCE
A real estate agent will be able to assist in setting the right price to list your home, according to the current market conditions.
A real estate agent is a trained professional who will spend the necessary amount of time it may take to get your home SOLD.
The agent understands and will take care of all the necessary paperwork to complete the buying process. The agent will also act as a liaison between you and the inspectors, the buyer’s agent, and between attorneys, if they are involved.
Most buyers prefer to deal with a real estate agent because the agent will give them the unbiased professional opinion on a house, and how it stacks up against other houses on the market.
Agents understand all the different types of loans and financing options. They can provide information to buyers about local lending institutions to fit their needs.
ADVERTISING
Realtors have many ways to advertise your home, not just a newspaper ad and a “For Sale” sign in the yard. They also utilize the following ways to advertise a home:
The Multiple Listing Service Open Houses Web sites like Realtor.com and Yahoo Real Estate Direct mail Newspaper inserts Regional Real Estate Magazines Cable TV Word of mouth through Realtor “Caravans” where 30 or more Realtors will tour your home and then match it to their prospective buyers.
How much of this marketing muscle will you be able to flex if you FSBO?
SHOWING YOUR HOME
Agents have expertise to help you get your home in top shape before your prospective buyers arrive. They can help you “stage” your home to look more like a model home that would appeal to a larger group of buyers. They know how to emphasize and focus on your homes good points.
If you FSBO you will be learning the process as you go, a costly education when you are trying to sell your own home.
SUMMARY
With all the time, knowledge, effort, and paperwork it takes to sell a home, you should partner with a Realtor and save yourself the headaches and frustration. Hire a Professional!
Vicki Walker is a Realtor serving clients in the Northern California towns of Davis and Woodland. You can find more great information by visiting her two websites Selling a Home in Davis or Woodland California Real Estate.
Article Source: http://EzineArticles.com/?expert=Vicki_Walker
When it comes time to sell your home, should you try to sell it on your own, or should you list it with a licensed Realtor? Consider the following factors to help you decide:
EXPOSURE
Realtors, or real estate agents, are part of an office of agents, and each of them knows of buyers that are currently in the market for a home. Their buyers are pre-qualified, that is, they have already seen a lender and have qualified for a loan so the buyer knows exactly how much they can afford, and the Realtor does too. In many areas, a realtor won’t even show homes to a buyer until they pre-qualify. The process saves a lot of wasted time on everybody’s part.
Contrast this with the prospect of you putting up a “For Sale” sign in your front yard, and having to deal with people that will be calling you to talk about your house and want to walk through it, even though they don’t have the resources to actually buy it. In the end, they are just wasting your time.
Realtors also have contact with many people from out of town who are relocating to your area. Each realtor in town gets contacted frequently through their website, by people that are looking for a home by long-distance. They may be coming to town soon to look at available homes for a few days. The Realtor lines up a number of homes for them to tour that fit their criteria. One of them could be yours. But, if you FSBO, that potential buyer won’t know your house is on the market until they get to town, if then.
EXPERIENCE
A real estate agent will be able to assist in setting the right price to list your home, according to the current market conditions.
A real estate agent is a trained professional who will spend the necessary amount of time it may take to get your home SOLD.
The agent understands and will take care of all the necessary paperwork to complete the buying process. The agent will also act as a liaison between you and the inspectors, the buyer’s agent, and between attorneys, if they are involved.
Most buyers prefer to deal with a real estate agent because the agent will give them the unbiased professional opinion on a house, and how it stacks up against other houses on the market.
Agents understand all the different types of loans and financing options. They can provide information to buyers about local lending institutions to fit their needs.
ADVERTISING
Realtors have many ways to advertise your home, not just a newspaper ad and a “For Sale” sign in the yard. They also utilize the following ways to advertise a home:
The Multiple Listing Service Open Houses Web sites like Realtor.com and Yahoo Real Estate Direct mail Newspaper inserts Regional Real Estate Magazines Cable TV Word of mouth through Realtor “Caravans” where 30 or more Realtors will tour your home and then match it to their prospective buyers.
How much of this marketing muscle will you be able to flex if you FSBO?
SHOWING YOUR HOME
Agents have expertise to help you get your home in top shape before your prospective buyers arrive. They can help you “stage” your home to look more like a model home that would appeal to a larger group of buyers. They know how to emphasize and focus on your homes good points.
If you FSBO you will be learning the process as you go, a costly education when you are trying to sell your own home.
SUMMARY
With all the time, knowledge, effort, and paperwork it takes to sell a home, you should partner with a Realtor and save yourself the headaches and frustration. Hire a Professional!
Vicki Walker is a Realtor serving clients in the Northern California towns of Davis and Woodland. You can find more great information by visiting her two websites Selling a Home in Davis or Woodland California Real Estate.
Article Source: http://EzineArticles.com/?expert=Vicki_Walker
Wednesday, January 04, 2006
Showcasing your home to sell
OK, I know we have almost kicked this one to death but I found one last article on how to get your home ready to sell. It is a short one but is a good final walk through before you choose your Realtor...or not? I will get to picking Realtors next.
by: W. Troy Swezey
One of the great challenges to selling a home can be showing all of its space, decor and natural light potential. For example, every home has crowded closets and dead space. Sellers should be aware that areas such as these are easy to spruce-up with a little elbow grease and old-fashioned innovation.
Begin by evaluating your closet/storage space, determine which areas can cut-down in clutter. Go through old clothes, shoes, etc., and get rid of anything that will not be used and in turn create more space. Consider organizing shelves and other areas to make better use of your storage space, including your garage and basement. Also, try to throw out or give away any old furniture that is no longer of use. All of the discarded items can be given to Good Will, Salvation Army or even sold at a yard sale.
Although most sellers keep their homes clean and well-decorated, it can be difficult to convince a buyer of a home's potential when clutter is noticeable. As brokers, it's our responsibility to offer any tips that will expedite the sale and make the experience more enjoyable for the seller.
Once you've eliminated the unwanted items and furniture, begin the 'renovation' process. For non-storage spaces that could use a little more decor, consider adding a small bookshelf complemented with a cozy reading chair. Always be sure you're filtering as much light into your property as possible. Open or replace curtains. For example, light from a window overlooking the backyard offers a room more color, a great view and the illusion of more space.
Always maximize the potential of existing decor; wash old curtains, re-stain old wood casings, anything that refreshes and emphasizes all the potential of the space and decor of the home.
Prospective buyers are often more drawn to homes with features that they don't have, those with clutter-free closets, open sunny rooms, and cozy little corners. To ensure you've realized all of the above characteristics the last step should be to bring in a friend and observe their reaction. Make sure it's an honest friend, who will offer suggestions as well as notice the improvements. Seeing your own home through someone else's eyes is a great way to make a home optimally attractive and more sellable to prospective buyers.
Be diligent in your efforts and be sure the renovations improve the aesthetic appeal of the home. All the hard work will be worth the reward of a successful sale.
by: W. Troy Swezey
One of the great challenges to selling a home can be showing all of its space, decor and natural light potential. For example, every home has crowded closets and dead space. Sellers should be aware that areas such as these are easy to spruce-up with a little elbow grease and old-fashioned innovation.
Begin by evaluating your closet/storage space, determine which areas can cut-down in clutter. Go through old clothes, shoes, etc., and get rid of anything that will not be used and in turn create more space. Consider organizing shelves and other areas to make better use of your storage space, including your garage and basement. Also, try to throw out or give away any old furniture that is no longer of use. All of the discarded items can be given to Good Will, Salvation Army or even sold at a yard sale.
Although most sellers keep their homes clean and well-decorated, it can be difficult to convince a buyer of a home's potential when clutter is noticeable. As brokers, it's our responsibility to offer any tips that will expedite the sale and make the experience more enjoyable for the seller.
Once you've eliminated the unwanted items and furniture, begin the 'renovation' process. For non-storage spaces that could use a little more decor, consider adding a small bookshelf complemented with a cozy reading chair. Always be sure you're filtering as much light into your property as possible. Open or replace curtains. For example, light from a window overlooking the backyard offers a room more color, a great view and the illusion of more space.
Always maximize the potential of existing decor; wash old curtains, re-stain old wood casings, anything that refreshes and emphasizes all the potential of the space and decor of the home.
Prospective buyers are often more drawn to homes with features that they don't have, those with clutter-free closets, open sunny rooms, and cozy little corners. To ensure you've realized all of the above characteristics the last step should be to bring in a friend and observe their reaction. Make sure it's an honest friend, who will offer suggestions as well as notice the improvements. Seeing your own home through someone else's eyes is a great way to make a home optimally attractive and more sellable to prospective buyers.
Be diligent in your efforts and be sure the renovations improve the aesthetic appeal of the home. All the hard work will be worth the reward of a successful sale.
Tuesday, January 03, 2006
How to get a 30 year old home sold
Here are some great tips on what to do with a 30 year old home to get it to sell for top dollar.
Your home is not in great shape, 30 years old and it looks every day of it. There are some things you must do just to get rid of it, why not do a little more and make some money on the deal. 7 fix ups to help you sell fast and get top dollar.
1)Flooring – Ceramic tile if in good condition consider cleaning and staining the grout for a new fresh look. Replace carpet and padding use good quality not high end. Vinyl flooring if not newer replace. Hardwood floors scratched dull no shine refinish.
2)Curb Appeal – Dress up the landscape add mulch at all planting areas shape into curved borders, use to cover around all trees spread wide and cover bare areas. The mulch will help define the landscape, add flowers and shrubs, cut and edge lawn. Keep trim and turn mulch for fresh appearance.
3)Appliances and Mechanical Systems – If your appliances are more than 10 years old replace them they don’t work efficiently and are way out of style. No need to buy high end but they must be high style. Match all kitchen appliances pick a contemporary look. No doubt the mechanical systems are big ticket items a 30 year old a/c unit must go, air handler unit compare cost of refurbish versus replacement. Water heater should have been replaced 10 years earlier if not replace.
4)Exterior Problems – Roof is way past its life span (the buyers home inspector or Bank appraiser will require it to be replaced, so why not do it before at a cost you can negotiate) replace roof use Architectural grade shingles costs more in material but the labor is the same. Replace any damaged or rotted wood including decks and porches. Repaint exterior siding, trim, windows and shutters.
5)Doors and Windows – Make sure every one is operating properly it is well worth the cost to have a contractor come in and make everything work. New window balances, locks, replace broken and fogged glass, adjust all doors, thresholds, and locksets. Patio sliders always are misaligned replace rollers for better operation, install new screen.
6)Kitchens and Baths – Your counter tops are beat up replace or refinish. Wood cabinets can be repainted or refinished, change out hardware new door handles and drawer pulls. Replace faucets with new contemporary look. Check light fixtures there are great low cost designer fixtures at the big box stores.
7)Walls and Ceilings - Repaint every room paint walls and trim in complementary neutral 2-color. Paint ceilings white. Paint all doors both sides same as trim. Make house as fresh and new as possible.
Every item on this list will affect your listing agent their market analysis and suggested list price of your home. They each will affect the buyer and the buyer’s agent in what the offer price will be. Even if they over look some items when the home inspector comes in they will nail every one of these repairs with an estimated cost of two to three times the actual cost you can negotiate.
This home in 30 year old condition will sell at 20% below the market with these fix ups as a top condition home with warranties you can get 10% to 15% above the market. A 35% difference and a great part of that stays in your pocket.
Bill Carey offers insights to the buying and selling process of residential real estate for F*R*E*E information and reports see http://www.BillCareyRealtor.com."Insider Real Estate Secrets Revealed" ...a must-read for Home-Owners and Renters!It's a FREE 12-lesson e-course covering more than 20 topics exposing the realities behind buying and selling a home.It Could Make(or Save) You Thousands of Dollars
Your home is not in great shape, 30 years old and it looks every day of it. There are some things you must do just to get rid of it, why not do a little more and make some money on the deal. 7 fix ups to help you sell fast and get top dollar.
1)Flooring – Ceramic tile if in good condition consider cleaning and staining the grout for a new fresh look. Replace carpet and padding use good quality not high end. Vinyl flooring if not newer replace. Hardwood floors scratched dull no shine refinish.
2)Curb Appeal – Dress up the landscape add mulch at all planting areas shape into curved borders, use to cover around all trees spread wide and cover bare areas. The mulch will help define the landscape, add flowers and shrubs, cut and edge lawn. Keep trim and turn mulch for fresh appearance.
3)Appliances and Mechanical Systems – If your appliances are more than 10 years old replace them they don’t work efficiently and are way out of style. No need to buy high end but they must be high style. Match all kitchen appliances pick a contemporary look. No doubt the mechanical systems are big ticket items a 30 year old a/c unit must go, air handler unit compare cost of refurbish versus replacement. Water heater should have been replaced 10 years earlier if not replace.
4)Exterior Problems – Roof is way past its life span (the buyers home inspector or Bank appraiser will require it to be replaced, so why not do it before at a cost you can negotiate) replace roof use Architectural grade shingles costs more in material but the labor is the same. Replace any damaged or rotted wood including decks and porches. Repaint exterior siding, trim, windows and shutters.
5)Doors and Windows – Make sure every one is operating properly it is well worth the cost to have a contractor come in and make everything work. New window balances, locks, replace broken and fogged glass, adjust all doors, thresholds, and locksets. Patio sliders always are misaligned replace rollers for better operation, install new screen.
6)Kitchens and Baths – Your counter tops are beat up replace or refinish. Wood cabinets can be repainted or refinished, change out hardware new door handles and drawer pulls. Replace faucets with new contemporary look. Check light fixtures there are great low cost designer fixtures at the big box stores.
7)Walls and Ceilings - Repaint every room paint walls and trim in complementary neutral 2-color. Paint ceilings white. Paint all doors both sides same as trim. Make house as fresh and new as possible.
Every item on this list will affect your listing agent their market analysis and suggested list price of your home. They each will affect the buyer and the buyer’s agent in what the offer price will be. Even if they over look some items when the home inspector comes in they will nail every one of these repairs with an estimated cost of two to three times the actual cost you can negotiate.
This home in 30 year old condition will sell at 20% below the market with these fix ups as a top condition home with warranties you can get 10% to 15% above the market. A 35% difference and a great part of that stays in your pocket.
Bill Carey offers insights to the buying and selling process of residential real estate for F*R*E*E information and reports see http://www.BillCareyRealtor.com."Insider Real Estate Secrets Revealed" ...a must-read for Home-Owners and Renters!It's a FREE 12-lesson e-course covering more than 20 topics exposing the realities behind buying and selling a home.It Could Make(or Save) You Thousands of Dollars
Saturday, December 03, 2005
Getting ready to move - Mortgages
If you are planning to move now or sometime in the near future then now would be a good time to visit the bank and mortgage broker.
Even though you will not have to fund your mortgage or refinance your mortgage for a few months yet it is good to get your self preapproved for a mortgage and get a good rate in case mortgage rates go up in the next few months.
Most banks and trust companies will lock your mortgage rate for a few months and this way as you shop for a new home you will know what the maximum will be for your mortgage payments
The other thing to do besides visiting the bank is to talk to a mortgage broker. Your mortgage broker can often get you a better rate for a mortgage because he or she goes through all the banks and trust companies to get the best rates and terms. A mortgage broker is paid a commission by the bank or trust company when you fund your mortage but don't worry you will still get a better rate then you would shopping on your own for a mortgage.
Even though you will not have to fund your mortgage or refinance your mortgage for a few months yet it is good to get your self preapproved for a mortgage and get a good rate in case mortgage rates go up in the next few months.
Most banks and trust companies will lock your mortgage rate for a few months and this way as you shop for a new home you will know what the maximum will be for your mortgage payments
The other thing to do besides visiting the bank is to talk to a mortgage broker. Your mortgage broker can often get you a better rate for a mortgage because he or she goes through all the banks and trust companies to get the best rates and terms. A mortgage broker is paid a commission by the bank or trust company when you fund your mortage but don't worry you will still get a better rate then you would shopping on your own for a mortgage.
Thursday, November 10, 2005
Home Seller Tip - Preparing your home to sell
Preparing your home to sell is incrediblly important. When you have a nice uncluttered, clean and fixed up home it will sell faster and for more money. Here are some tips to get your home ready to sell:
Firstly, put your home in the best condition possible. That means taking care of any major repairs that could deter a buyer (such as replacing any broken windows or replacing a leaky roof) if you can afford it.
Next, look outside the house itself. Make sure your landscape is pristine. Mow the grass, clean up any debris and weed the garden beds. Plant a few annual flowers near the entrance or in pots to be placed by the door.
Don't spend much money on fixes to your home as a renovation will not likely pay back as much as it costs but be sure to do the following:
Clean the windows and make sure the paint is not chipped or flaking if so do a little painting.
Be sure that the doorbell works if not it is usually pretty easy to fix.
Clean and freshen up rooms, furnishings, floors, walls and ceilings. Make sure that bathrooms and kitchens are spotless.
Organize closets.
Make sure the basic appliances and fixtures work. Replace leaky faucets and frayed cords.
Eliminate the source of any bad smells, such as the kitty box. Use air freshener or bake a batch of cookies before your open house to ensure that the house smells inviting.
Invest in a couple of vases of fresh flowers to place around the house and next to any information about the house you have prepared for buyers.
Replace things that people would like to point out before buying leave no excuse. Replace the furnace filter, replace cracked windows, paint or stain the fence if it is time to, and adjust the gates so that they close properly.
Firstly, put your home in the best condition possible. That means taking care of any major repairs that could deter a buyer (such as replacing any broken windows or replacing a leaky roof) if you can afford it.
Next, look outside the house itself. Make sure your landscape is pristine. Mow the grass, clean up any debris and weed the garden beds. Plant a few annual flowers near the entrance or in pots to be placed by the door.
Don't spend much money on fixes to your home as a renovation will not likely pay back as much as it costs but be sure to do the following:
Clean the windows and make sure the paint is not chipped or flaking if so do a little painting.
Be sure that the doorbell works if not it is usually pretty easy to fix.
Clean and freshen up rooms, furnishings, floors, walls and ceilings. Make sure that bathrooms and kitchens are spotless.
Organize closets.
Make sure the basic appliances and fixtures work. Replace leaky faucets and frayed cords.
Eliminate the source of any bad smells, such as the kitty box. Use air freshener or bake a batch of cookies before your open house to ensure that the house smells inviting.
Invest in a couple of vases of fresh flowers to place around the house and next to any information about the house you have prepared for buyers.
Replace things that people would like to point out before buying leave no excuse. Replace the furnace filter, replace cracked windows, paint or stain the fence if it is time to, and adjust the gates so that they close properly.
Wednesday, November 09, 2005
New Home Seller tips
I thought that I would just pump out a few tips that anyone could use to get their home sold and sold fast.
Make sure you have a good reason to sell. If you want to sell your home make sure that you are selling to move away, or closer, or to have a smaller house, or have a bigger house. Never sell just because prices have gone up or down. Also if you are selling to get money out of the house make sure you do not list until the price you are listing for is realistic in the market not just a price your friends think is right.
Just to reinterate, the reason for selling is incredibally important because when an offer comes in you want to make sure that the offer is acceptable because you are moving on, the emotion is the only thing that really kills a real estate deal. When you are offended by a price or by the terms you can then go back and realise that your reasons for selling are more important than that offence and you can get the deal finished and move on.
Links to other sites:
All Buyers and Sellers Realty of Florida - Ocala Real Estate
Search all the Ocala Marion County Florida real estate MLS listings. As Florida Realtors® and buyers agents we promise to save you time and money. We ARE fla!
All the Winter Park real estate listings you need!
We love Winter Park. And we've dedicated ourselves to mastering the Winter Park real estate market so that you'll be happy for years to come.
Bellingham Real Estate with Kathy Auerbach
I will help you buy or sell your home in Bellingham, Birch Bay, Blaine, Ferndale, Lynden, and other areas in Whatcom County, Washington.
Buy and Sell Charleston
Customer service is our top priority! Buying and selling Charleston Tri-County area real estate.
Caribbean Real Estate: Roatan Honduras Property
Real estate on Roatan Honduras. Come and find your tropical paradise!
Davis California Real Estate
Realtor serving the Davis and Sacramento region. Search the MLS, view homes, and take our exclusive virtual tour of Davis real estate where you can tour neighborhoods and see homes.
Eugene Oregon Real Estate - Eugene Real Estate
Eugene Oregon Real Estate - Springfield real estate. Also specializing in Cottage Grove, Junction City, Veneta, Creswell, Coburg, Oregon, and Lane County. Find buyer/seller tips, community information, free reports, and more
Fort Lauderdale Condo Company
The Condo Company is a highly specialized real estate agency that focuses on the Fort Lauderdale Condos market.
High Country Real Estate Services, Inc.
Taos, New Mexico real estate sales, management, home staging, interior design,landscape and window coverings services. Real estate remarkable.
Jonathan Dalton's Phoenix Arizona Homes
Providing full-service real estate in Glendale, Peoria, Surprise & Phoenix Arizona. Useful information on relocation, investment, schools and the community. Free MLS Search!
Lake Norman North Carolina Real Estate
Specializing in Lake Norman Real Estate, Mooresville, Huntersville, Cornelius, Davidson, Concord & more.
Las Vegas Condos
The Condo Company is a highly specialized real estate agency that focuses on the Las Vegas condominium market.
Lisa Hall, Realtor
Serving the eastern Contra Costa region (in the San Francisco Bay Area). Working with real estate buyers and sellers in Antioch, Discovery Bay, Brentwood, and Oakley.
Memphis Real Estate - Joe Spake
Representing Buyers and Sellers of Fine Memphis Homes, specializing in Downtown, Midtown, and East Memphis - luxury homes, condos, historic properties.
Miami Condo Company
The Condo Company is a highly specialized real estate agency that focuses on the Miami condos market.
Nobody knows Ventura real estate like we do!
We provide the best real estate service in Ventura. Visit our site today!
Palm Beach Condo Company
The Condo Company is a highly specialized real estate agency that focuses on the palm beach real estate market
Seattle real estate, Everett real estate - RE/MAX
Residential and investment Seattle and Everett area real estate. King and Snohomish counties: Bellevue, Edmonds, Lynnwood, and others.
Vail Condo Company
The Condo Company is a highly specialized real estate agency that focuses on the Vail Colorado condominium market.
We Buy Houses-Sell Your Home-IBuyHouses.com
We want to buy your home. We pay Cash at closing, and can give you an offer for your home as soon as today with no hassles or headaches. With a network of homebuyers across the US and Canada, we'll have somebody in your area.
Your East Bay Real Estate Solution
Providing residential Real Estate services to the Norhtern Claifornia East Bay area. Specializing in Alameda, Oakland and San Leandro.
Make sure you have a good reason to sell. If you want to sell your home make sure that you are selling to move away, or closer, or to have a smaller house, or have a bigger house. Never sell just because prices have gone up or down. Also if you are selling to get money out of the house make sure you do not list until the price you are listing for is realistic in the market not just a price your friends think is right.
Just to reinterate, the reason for selling is incredibally important because when an offer comes in you want to make sure that the offer is acceptable because you are moving on, the emotion is the only thing that really kills a real estate deal. When you are offended by a price or by the terms you can then go back and realise that your reasons for selling are more important than that offence and you can get the deal finished and move on.
Links to other sites:
All Buyers and Sellers Realty of Florida - Ocala Real Estate
Search all the Ocala Marion County Florida real estate MLS listings. As Florida Realtors® and buyers agents we promise to save you time and money. We ARE fla!
All the Winter Park real estate listings you need!
We love Winter Park. And we've dedicated ourselves to mastering the Winter Park real estate market so that you'll be happy for years to come.
Bellingham Real Estate with Kathy Auerbach
I will help you buy or sell your home in Bellingham, Birch Bay, Blaine, Ferndale, Lynden, and other areas in Whatcom County, Washington.
Buy and Sell Charleston
Customer service is our top priority! Buying and selling Charleston Tri-County area real estate.
Caribbean Real Estate: Roatan Honduras Property
Real estate on Roatan Honduras. Come and find your tropical paradise!
Davis California Real Estate
Realtor serving the Davis and Sacramento region. Search the MLS, view homes, and take our exclusive virtual tour of Davis real estate where you can tour neighborhoods and see homes.
Eugene Oregon Real Estate - Eugene Real Estate
Eugene Oregon Real Estate - Springfield real estate. Also specializing in Cottage Grove, Junction City, Veneta, Creswell, Coburg, Oregon, and Lane County. Find buyer/seller tips, community information, free reports, and more
Fort Lauderdale Condo Company
The Condo Company is a highly specialized real estate agency that focuses on the Fort Lauderdale Condos market.
High Country Real Estate Services, Inc.
Taos, New Mexico real estate sales, management, home staging, interior design,landscape and window coverings services. Real estate remarkable.
Jonathan Dalton's Phoenix Arizona Homes
Providing full-service real estate in Glendale, Peoria, Surprise & Phoenix Arizona. Useful information on relocation, investment, schools and the community. Free MLS Search!
Lake Norman North Carolina Real Estate
Specializing in Lake Norman Real Estate, Mooresville, Huntersville, Cornelius, Davidson, Concord & more.
Las Vegas Condos
The Condo Company is a highly specialized real estate agency that focuses on the Las Vegas condominium market.
Lisa Hall, Realtor
Serving the eastern Contra Costa region (in the San Francisco Bay Area). Working with real estate buyers and sellers in Antioch, Discovery Bay, Brentwood, and Oakley.
Memphis Real Estate - Joe Spake
Representing Buyers and Sellers of Fine Memphis Homes, specializing in Downtown, Midtown, and East Memphis - luxury homes, condos, historic properties.
Miami Condo Company
The Condo Company is a highly specialized real estate agency that focuses on the Miami condos market.
Nobody knows Ventura real estate like we do!
We provide the best real estate service in Ventura. Visit our site today!
Palm Beach Condo Company
The Condo Company is a highly specialized real estate agency that focuses on the palm beach real estate market
Seattle real estate, Everett real estate - RE/MAX
Residential and investment Seattle and Everett area real estate. King and Snohomish counties: Bellevue, Edmonds, Lynnwood, and others.
Vail Condo Company
The Condo Company is a highly specialized real estate agency that focuses on the Vail Colorado condominium market.
We Buy Houses-Sell Your Home-IBuyHouses.com
We want to buy your home. We pay Cash at closing, and can give you an offer for your home as soon as today with no hassles or headaches. With a network of homebuyers across the US and Canada, we'll have somebody in your area.
Your East Bay Real Estate Solution
Providing residential Real Estate services to the Norhtern Claifornia East Bay area. Specializing in Alameda, Oakland and San Leandro.
Monday, October 31, 2005
Going offline for a few weeks
I am going to be busy with a project during the month of November, sorry. I hope to post a few times but there are no guarantees at this point.
Go back though the archives if you need motivation. I know that I have linked to some great sites and articles in the last little while and that can keep you busy.
Have a great November!
Go back though the archives if you need motivation. I know that I have linked to some great sites and articles in the last little while and that can keep you busy.
Have a great November!
Friday, October 28, 2005
Home Buyer Pitfalls - Watch out for these
1. SHOP FOR A HOME BEFORE YOU SHOP FOR A MORTGAGE. It's normal for prospective home buyers to get excited about buying a home. According to the National Association of Realtors, more than 70 percent of today's home buyers start their quest on the Internet, usually at www.realtor.com.
But that's the wrong place to start buying a home. The first step to a successful home purchase is for buyers to check their FICO (Fair, Isaac Corp.) credit scores to be certain a mortgage can be obtained.
The best spot I've found on the Internet to check my credit is www.myfico.com. It costs about $45 to review all three credit reports there from the three national credit bureaus, Equifax, Trans Union and Experian. The last time I checked, to my surprise, my FICO scores varied about 40 points among each of the three credit bureaus.
By checking credit reports at all three bureaus, there is time to correct any errors (reportedly, about 33 percent of credit reports contain mistakes) before applying for a mortgage.
Although you can now obtain your free credit reports from all three major companies at www.AnnualCreditReport.com, or 877-322-8228, those reports are virtually worthless because they don't include FICO scores, which all major mortgage lenders now use.
Armed with your credit reports and FICO scores (anything above 700 practically assures you will get the lowest mortgage interest rate), it's time to shop for written mortgage pre-approval.
Although mortgage brokers can arrange such pre-approvals, be sure your pre-approval letter or certificate comes from a bank or mortgage broker. Disregard any "pre-qualification letter," which is worthless because it isn't a lender's written promise to grant you a home mortgage, subject to an appraisal.
2. RUSH TO BUY A HOUSE OR CONDO WITHOUT CAREFULLY RESEARCHING THE LOCAL MARKET. After you have your written mortgage pre-approval 30-day or 60-day letter or certificate from an actual lender, it's time to get serious about researching the local home market in your price range.
Although you might buy the first home you spot on the Internet, or at a weekend open house, that rarely happens. Most home buyers take several months before their purchase offer is accepted by a seller.
3. BUY A HOME WITHOUT YOUR OWN BUYER'S AGENT. Too many home buyers purchase with only the help of the seller's listing agent (called a "dual agent" when that person also represents the home buyer).
It costs home buyers no more to have their own "buyer's agent" representing the buyer's best interests.
Buyer's agents, in addition to showing listings of other agents from the local MLS (multiple listing service), can show prospective buyers the local "for sale by owner" (FSBO) homes. Smart FSBO sellers are only too happy to pay buyer's agents half of a normal sales commission, typically around 3 percent. This is a major advantage of working with a buyer's agent.
Any licensed real estate agent can be your buyer's agent to look out for your best interests (unless that agent works for the same brokerage, which also listed the property for sale; then dual agency or designated agent rules apply).
However, most home buyers find it wise not to sign an exclusive buyer's agent contract, just in case the agent turns out to be a dunce.
4. BUY A HOME WITH AN INCURABLE DEFECT. No house or condo is perfect. Each one has some defect. Even brand-new houses have problems (hopefully not significant).
After I became friends with a local building inspector a few years ago, he revealed to me some of the defects he routinely discovered in new homes. Unless the problem was dangerous or in violation of building codes, he explained he had to ignore the defects, which he knew would result in problems several years later.
Fortunately, most houses and condos don't have defects that are not tolerable. Serious problems, called "economic obsolescence" by appraisers, might include a bad floor plan, poor location (such as near high-voltage power lines or adjacent to the city dump), heavy street traffic, and lack of convenient parking.
5. DON'T INSIST ON A COMPARATIVE MARKET ANALYSIS (CMA) BEFORE MAKING A PURCHASE OFFER. This is a major mistake too many home buyers make, often resulting in overpaying for a home.
The CMA is the same document that the listing agent should have presented to the home seller before the asking price was determined. It includes recent sales prices of similar nearby homes, asking prices of comparable neighborhood homes now listed for sale, and asking prices of similar homes that didn't sell (usually because they were overpriced).
Only after reviewing the CMA, and discussing it with the buyer's agent, can a reasonable purchase price be offered.
6. FORGET TO INCLUDE THE TWO KEY CONTINGENCY CLAUSES. Especially in very competitive local home sales markets, some home buyers let their buyer's agents talk them out of protecting themselves with the two key contingency clauses.
"All cash, no contingency" is what every home seller wants to hear. But it isn't realistic or very smart for most home buyers.
Instead, smart home buyers include contingency clauses for (a) a satisfactory professional appraisal of the home for at least the purchase price, and (b) the buyer's approval of a professional inspector's report.
Additional customary local inspection contingencies might include termite (pest control) inspection, building code compliance, energy efficiency, and radon test.
SUMMARY: These six home buyer mistakes to avoid help protect buyers from making major, costly errors. Home buyers who protect themselves can feel confident of making a sound purchase, which they will enjoy for many years.
(For more information on Bob Bruss publications, visit his Real Estate Center).
But that's the wrong place to start buying a home. The first step to a successful home purchase is for buyers to check their FICO (Fair, Isaac Corp.) credit scores to be certain a mortgage can be obtained.
The best spot I've found on the Internet to check my credit is www.myfico.com. It costs about $45 to review all three credit reports there from the three national credit bureaus, Equifax, Trans Union and Experian. The last time I checked, to my surprise, my FICO scores varied about 40 points among each of the three credit bureaus.
By checking credit reports at all three bureaus, there is time to correct any errors (reportedly, about 33 percent of credit reports contain mistakes) before applying for a mortgage.
Although you can now obtain your free credit reports from all three major companies at www.AnnualCreditReport.com, or 877-322-8228, those reports are virtually worthless because they don't include FICO scores, which all major mortgage lenders now use.
Armed with your credit reports and FICO scores (anything above 700 practically assures you will get the lowest mortgage interest rate), it's time to shop for written mortgage pre-approval.
Although mortgage brokers can arrange such pre-approvals, be sure your pre-approval letter or certificate comes from a bank or mortgage broker. Disregard any "pre-qualification letter," which is worthless because it isn't a lender's written promise to grant you a home mortgage, subject to an appraisal.
2. RUSH TO BUY A HOUSE OR CONDO WITHOUT CAREFULLY RESEARCHING THE LOCAL MARKET. After you have your written mortgage pre-approval 30-day or 60-day letter or certificate from an actual lender, it's time to get serious about researching the local home market in your price range.
Although you might buy the first home you spot on the Internet, or at a weekend open house, that rarely happens. Most home buyers take several months before their purchase offer is accepted by a seller.
3. BUY A HOME WITHOUT YOUR OWN BUYER'S AGENT. Too many home buyers purchase with only the help of the seller's listing agent (called a "dual agent" when that person also represents the home buyer).
It costs home buyers no more to have their own "buyer's agent" representing the buyer's best interests.
Buyer's agents, in addition to showing listings of other agents from the local MLS (multiple listing service), can show prospective buyers the local "for sale by owner" (FSBO) homes. Smart FSBO sellers are only too happy to pay buyer's agents half of a normal sales commission, typically around 3 percent. This is a major advantage of working with a buyer's agent.
Any licensed real estate agent can be your buyer's agent to look out for your best interests (unless that agent works for the same brokerage, which also listed the property for sale; then dual agency or designated agent rules apply).
However, most home buyers find it wise not to sign an exclusive buyer's agent contract, just in case the agent turns out to be a dunce.
4. BUY A HOME WITH AN INCURABLE DEFECT. No house or condo is perfect. Each one has some defect. Even brand-new houses have problems (hopefully not significant).
After I became friends with a local building inspector a few years ago, he revealed to me some of the defects he routinely discovered in new homes. Unless the problem was dangerous or in violation of building codes, he explained he had to ignore the defects, which he knew would result in problems several years later.
Fortunately, most houses and condos don't have defects that are not tolerable. Serious problems, called "economic obsolescence" by appraisers, might include a bad floor plan, poor location (such as near high-voltage power lines or adjacent to the city dump), heavy street traffic, and lack of convenient parking.
5. DON'T INSIST ON A COMPARATIVE MARKET ANALYSIS (CMA) BEFORE MAKING A PURCHASE OFFER. This is a major mistake too many home buyers make, often resulting in overpaying for a home.
The CMA is the same document that the listing agent should have presented to the home seller before the asking price was determined. It includes recent sales prices of similar nearby homes, asking prices of comparable neighborhood homes now listed for sale, and asking prices of similar homes that didn't sell (usually because they were overpriced).
Only after reviewing the CMA, and discussing it with the buyer's agent, can a reasonable purchase price be offered.
6. FORGET TO INCLUDE THE TWO KEY CONTINGENCY CLAUSES. Especially in very competitive local home sales markets, some home buyers let their buyer's agents talk them out of protecting themselves with the two key contingency clauses.
"All cash, no contingency" is what every home seller wants to hear. But it isn't realistic or very smart for most home buyers.
Instead, smart home buyers include contingency clauses for (a) a satisfactory professional appraisal of the home for at least the purchase price, and (b) the buyer's approval of a professional inspector's report.
Additional customary local inspection contingencies might include termite (pest control) inspection, building code compliance, energy efficiency, and radon test.
SUMMARY: These six home buyer mistakes to avoid help protect buyers from making major, costly errors. Home buyers who protect themselves can feel confident of making a sound purchase, which they will enjoy for many years.
(For more information on Bob Bruss publications, visit his Real Estate Center).
Thursday, October 13, 2005
14 reasons not to sell your home yourself
Here is a list from Alan Read Chua, a Realtor in Toronto:
14 IMPORTANT FACTS TO CONSIDER BEFORE YOU TRY TO SELL YOUR OWN HOME
-->
Occasionally, one can see "For Sale By Owner" signs, and some owners think that selling their own home will not only save them money, but believe they have an advantage over the sellers that have their home listed by a reputable Realtor©. Before you decide to take on this very important and legally complicated process…remember not even most Real Estate Lawyer’s recommend selling your own home yourself in today’s market. Here are a few of the reasons why:
1. You are limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate) which theoretically means your home will take ten to fifteen times longer to sell on the market.
2. The longer a home is on the market the lower the selling price is. Why? Because most buyers think that if the home has not sold after this long…there must be something wrong with the home.
3. The selling/buying process begins AFTER the buyer leaves your home. Most sellers think that all it takes is for someone to see their home, fall in love with the great decor… and the offer automatically will follow. Remember that the buying process begins after they leave your home. If a real estate agent does not represent the buyer, and they are looking on their own…they usually leave the home and start to talk themselves out of the buying process. If the buyer is represented by a real estate professional Realtors© are trained on how to overcome buyers remorse--a very common occurrence.
4. Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to generate the highest price possible for your home… selling means exposure. You need the maximum exposure possible, to generate the highest price possible.
5. Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid FSBO properties.
6. Lack of negotiating experience and lack of pertinent information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.
7. The majority of qualified buyers are working with experienced real estate professionals.
8. Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream, this can some times make them wary.
9. As most local buyers now retain an experienced real estate sales person to represent them as their buyer-agency, you will probably be negotiating against an experienced professional.
10. Expected savings in broker's fees will also be greatly reduced if you offer a selling commission to entice real estate agents to bring potential buyers.
11. If you are planning to use a Lawyer to help you negotiate the offer, then your lawyer’s fees will be considerably higher.
12. Only real estate agents have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to agents. Further, real estate agents are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling.
13. You only pay the commission to the real estate broker, if they successfully sell your home at the price you are happy with.
14. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions usually always have problems on closing. At times, expecting the Buyers and Sellers Lawyer’s to fight it out or resolve the problems, can sometimes mean the deal is lost.
This is the time that your experienced real estate professional, can be the most important. Your Realtor© can act as a great mediator. Lawyers MUST act only on their client’s instructions and are not paid to negotiate.
14 IMPORTANT FACTS TO CONSIDER BEFORE YOU TRY TO SELL YOUR OWN HOME
-->
Occasionally, one can see "For Sale By Owner" signs, and some owners think that selling their own home will not only save them money, but believe they have an advantage over the sellers that have their home listed by a reputable Realtor©. Before you decide to take on this very important and legally complicated process…remember not even most Real Estate Lawyer’s recommend selling your own home yourself in today’s market. Here are a few of the reasons why:
1. You are limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate) which theoretically means your home will take ten to fifteen times longer to sell on the market.
2. The longer a home is on the market the lower the selling price is. Why? Because most buyers think that if the home has not sold after this long…there must be something wrong with the home.
3. The selling/buying process begins AFTER the buyer leaves your home. Most sellers think that all it takes is for someone to see their home, fall in love with the great decor… and the offer automatically will follow. Remember that the buying process begins after they leave your home. If a real estate agent does not represent the buyer, and they are looking on their own…they usually leave the home and start to talk themselves out of the buying process. If the buyer is represented by a real estate professional Realtors© are trained on how to overcome buyers remorse--a very common occurrence.
4. Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to generate the highest price possible for your home… selling means exposure. You need the maximum exposure possible, to generate the highest price possible.
5. Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid FSBO properties.
6. Lack of negotiating experience and lack of pertinent information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.
7. The majority of qualified buyers are working with experienced real estate professionals.
8. Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream, this can some times make them wary.
9. As most local buyers now retain an experienced real estate sales person to represent them as their buyer-agency, you will probably be negotiating against an experienced professional.
10. Expected savings in broker's fees will also be greatly reduced if you offer a selling commission to entice real estate agents to bring potential buyers.
11. If you are planning to use a Lawyer to help you negotiate the offer, then your lawyer’s fees will be considerably higher.
12. Only real estate agents have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to agents. Further, real estate agents are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling.
13. You only pay the commission to the real estate broker, if they successfully sell your home at the price you are happy with.
14. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions usually always have problems on closing. At times, expecting the Buyers and Sellers Lawyer’s to fight it out or resolve the problems, can sometimes mean the deal is lost.
This is the time that your experienced real estate professional, can be the most important. Your Realtor© can act as a great mediator. Lawyers MUST act only on their client’s instructions and are not paid to negotiate.
Monday, October 10, 2005
The Role of Your Realtor
When you bought your home, you probably used the services of a real estate agent.
You found that agent through a referral from a friend or family member, or through some sort of advertising or marketing. The agent helped you in many ways and eventually you found the house of your dreams, made an offer, closed the deal, and moved in.
For whatever reason, now it is time to sell your home and you need a real estate agent again. You may have been happy with that first agent and will contact him or maybe you don't even know what happened to him. Many home sellers, especially those selling their first home, tend to think all agents are similar to the one that helped them buy their home. This is not at all true. And if you take a peek inside a real estate office business you can see that. Most Realtors spend time doing three things. Networking, serving new and old customers and market research.
Although real estate agents can (and do) work with both buyers and sellers, most tend to concentrate more on one than the other. They specialize. When you bought your home, you probably worked with a "selling agent" – an agent that works mostly with buyers. Because of the nature of real estate advertising and marketing, the public’s main image of the real estate profession is that of the selling agent (buyer's agent).
As a result, many homeowners expect their listing agent to do the same things that a selling agent does – find someone to buy their home. After all, they do the things you would expect if they were searching for buyers. A sign goes up in the front yard. Ads are placed in the local newspaper and real estate magazines. Your agent holds an open house on the weekend. Your house is proudly displayed on the Internet.
But this is only "surface" marketing. More important activity occurs behind the scenes. After the "for sale" sign goes up and flyers are printed, your agent’s main job is to market your home to other agents, not to homebuyers.
There are some stats that usually suprise many people:
Only 3% of house buyers buy a house from an open house.
only 5% of For Sale By Owners sell their own home.
Almost every house sale is sold by a Realtor through the MLS system even with so many homes on MLS making it to the interent, and flyers everywhere, and showhomes open 24/7
You found that agent through a referral from a friend or family member, or through some sort of advertising or marketing. The agent helped you in many ways and eventually you found the house of your dreams, made an offer, closed the deal, and moved in.
For whatever reason, now it is time to sell your home and you need a real estate agent again. You may have been happy with that first agent and will contact him or maybe you don't even know what happened to him. Many home sellers, especially those selling their first home, tend to think all agents are similar to the one that helped them buy their home. This is not at all true. And if you take a peek inside a real estate office business you can see that. Most Realtors spend time doing three things. Networking, serving new and old customers and market research.
Although real estate agents can (and do) work with both buyers and sellers, most tend to concentrate more on one than the other. They specialize. When you bought your home, you probably worked with a "selling agent" – an agent that works mostly with buyers. Because of the nature of real estate advertising and marketing, the public’s main image of the real estate profession is that of the selling agent (buyer's agent).
As a result, many homeowners expect their listing agent to do the same things that a selling agent does – find someone to buy their home. After all, they do the things you would expect if they were searching for buyers. A sign goes up in the front yard. Ads are placed in the local newspaper and real estate magazines. Your agent holds an open house on the weekend. Your house is proudly displayed on the Internet.
But this is only "surface" marketing. More important activity occurs behind the scenes. After the "for sale" sign goes up and flyers are printed, your agent’s main job is to market your home to other agents, not to homebuyers.
There are some stats that usually suprise many people:
Only 3% of house buyers buy a house from an open house.
only 5% of For Sale By Owners sell their own home.
Almost every house sale is sold by a Realtor through the MLS system even with so many homes on MLS making it to the interent, and flyers everywhere, and showhomes open 24/7
Monday, October 03, 2005
Great Tips on Agency and Dual Agency when Selling a Home
Are you confused about who represents you in a real estate deal? Who is paying the commission? What rights do you have? Here is a great article with info that may answer all of your questions and more.
There is a relatively new and not always well understood practice in Real Estate sales; it is called Buyer Agency or Buyer's Agent. Until recently Realtors and agents usually represented the seller, in opposition to the buyer, during the real estate transaction. Even the real estate agent who drove you from home to home was not truly working on your behalf. By law, the agent was required to work on the seller's side in order to get the highest price and the best terms for the seller -- Period! Some agents still work this way.
In the last few years, first the law and now the practice of representation has changed. We have an entirely different set of options and agreements when we are buying real estate. These options were previously only available and utilized by large companies or wealthy individuals. In the past, the buyer would get a buyer's representative by paying a fee up front and usually by the hour, until the transaction was complete.
Twenty five years ago, as a personal agent for wealthy clients and companies, I charged and worked an average of 20 hours a week for $30 per hour, plus expenses, plus 10% of the transaction (or when I was the buyer's agent, a $2,000 retainer fee to start with and then $30 per hour and 10% of the amount below the listed price that I was able to obtain for my buyer. If there was financing involved I also was paid to find and obtain the best financing).
That has changed dramatically. As a buyer's agent, a signature on a buyer's agent contract from my buyer begins the transaction. Usually the same original commission fee that would have been paid by the seller is split and half goes to pay the buyer's agent. In some cases the selling agent does not set up any fee to the buyers agent, or a very reduced fee, such as those agencies that advertise 2% or 3% or 4% commissions to the sellers, etc. In that case the Buyer just picks up the missing commission and at settlement another 4% or 5% comes out of the transaction and goes to us as Buyer's Agent. In other words there is a guarantee from us that we are working ONLY for you the buyer and in exchange you guarantee us a commission of 5% - which is usually already taken care of, or at least part of it, in the seller's commission.
I can draw this division of fees out for you on paper if need be when we meet the first time. Bottom line; you don't pay any more and you get the absolute best representation.
The buyer's agency arrangement begins with the initial interview, continues through an initial selection of properties to investigate and view and then to contract negotiations. This culminates with the final settlement and transfer of funds for property. The buyer may choose to have an agent specifically committed to representing his best interests.
The great part for the buyer is that he/she gets the benefit of decades of experience and professional knowledge, all of our connections and reputation with those connections, and pays nothing until final close of transaction. Where else can you get the best possible professional service and pay nothing until it's complete and satisfactory. Will your doctor, lawyer, accountant, mason or carpenter do that... NO. We do, if you contract with us first. Otherwise we represent the seller at your expense! This is true of all Realtors by law. Which would you like?
Recently real estate laws in virtually every state are being rewritten to allow and suggest that the buyer have his own specific representative. If you are the buyer and have a buyer's agent, your agent will try to get you the best deal possible, even if that is NOT in the best interest of the seller.
Legally: "Buyer's Agency" is a relationship where the real estate agent is working FOR you with fiduciary responsibility (financial and legal responsibility). The agent is then legally bound to only the buyer and owes his entire loyalty and allegiance to the buyer alone.
In the past, and even most of the time today, all real estate agents and brokers represent the seller alone; to get the highest price for the seller. In fact seller's agents MAY NOT disclose fully all that they know about a property to the buyer as they seek the highest price. The relationship of a broker and agent is established in writing with the seller when the property is listed for sale in the "Listing Agreement".
In Delaware we are required to give each person we work with; buyer or seller; a written explanation regarding agency status. We have professionally written brochures that explain the "seller's agency" and it's opposite "buyer's agency". This agency disclosure must be explained, in writing, at the first significant contact of the agent with the buyer or seller.
Agents in our office talk with a great number of long-distance buyers over the phone. We must, when we finally meet in person, disclose and determine which position we will take with the person we are speaking with. Some agents work mostly as seller's agents; some work mostly as buyer's agents and some work as a dual agent (where we act as full representative to both buyer and seller). Regardless of the role the agent takes -- it should be fully and completely known by all agents, buyers and sellers involved -- and it should be in writing.
Let us now put this forward again:
Seller's Agent: has the full and complete and sole duty to obtain the best deal for the seller. The seller's agent is ONLY allowed to give the buyer material facts about the property. It is customary for a cooperating broker and agent to be a subagent to the seller's agency established by the brokerage that has the written contract with the seller to sell the property.
Buyer's Agent: has the full, complete and sole duty to obtain the best deal for the buyer. The buyer's agent may convey any and all information obtained in any fashion, including in depth investigations about the seller or the property.
Dual Agent: has to be legally and financially loyal to both parties. Dual agency occurs when a real estate agency is contracted to sell a home. That means they have the listing, and an agent from that same brokerage, working as a buyer's representative, shows that listing. Dual Agency must be disclosed and agreed to in writing by all parties. Some people feel that Dual Agency is potentially a conflict of interests. It can be unless the agent is fully honest to all parties and they are fully aware of and in agreement with that relationship. Here, the entire purpose of the dual agent is to get the best possible deal, in all it's components, for both the buyer and the seller.
There are, in general, two major personalities of buyer's agents. First is the agent who only and always represents buyers. The other is the agent who takes each transaction and each customer into account before making that decision. An agent who usually works as a buyer's agent, for instance, may NOT want to represent a particular buyer as that buyer's agent for one reason or another. The reason is usually one of some personality difference. As I put it, when speaking with a buyer whom I wish to represent "I will be your gladiator. I will do battle on your behalf, and at the expense of and against the interests of, the seller and the seller's agent."
The buyer's agent must still be honest, but he need not be fair. For instance, if the buyer's agent is able to find out that the seller is in big financial or personal trouble and that the seller has a small mortgage on the property or that there is some impending deadline for selling the property, then the buyer's agent will tell the buyer. Together they will use that information to get a great deal for the buyer at the seller's expense... it that is possible.
If I were a buyer, I would not even consider doing a real estate transaction without a buyer's agent to act on my behalf. I suggest that you are wise to do the same. If there are detailed and extensive negotiations that need to be done; such as unique and difficult terms that must be negotiated then (being the buyer) I'd ask that the buyer and the seller agree to have me as a dual agent. Whatever your choice, it should be in writing with your agent and must be known to all parties involved.
Copyright © 2001-2004 by www.JodyHudson.com
Source for this article is: http://www.kate-jody.com/essays/buyersagent.html
Article Source: http://EzineArticles.com/
There is a relatively new and not always well understood practice in Real Estate sales; it is called Buyer Agency or Buyer's Agent. Until recently Realtors and agents usually represented the seller, in opposition to the buyer, during the real estate transaction. Even the real estate agent who drove you from home to home was not truly working on your behalf. By law, the agent was required to work on the seller's side in order to get the highest price and the best terms for the seller -- Period! Some agents still work this way.
In the last few years, first the law and now the practice of representation has changed. We have an entirely different set of options and agreements when we are buying real estate. These options were previously only available and utilized by large companies or wealthy individuals. In the past, the buyer would get a buyer's representative by paying a fee up front and usually by the hour, until the transaction was complete.
Twenty five years ago, as a personal agent for wealthy clients and companies, I charged and worked an average of 20 hours a week for $30 per hour, plus expenses, plus 10% of the transaction (or when I was the buyer's agent, a $2,000 retainer fee to start with and then $30 per hour and 10% of the amount below the listed price that I was able to obtain for my buyer. If there was financing involved I also was paid to find and obtain the best financing).
That has changed dramatically. As a buyer's agent, a signature on a buyer's agent contract from my buyer begins the transaction. Usually the same original commission fee that would have been paid by the seller is split and half goes to pay the buyer's agent. In some cases the selling agent does not set up any fee to the buyers agent, or a very reduced fee, such as those agencies that advertise 2% or 3% or 4% commissions to the sellers, etc. In that case the Buyer just picks up the missing commission and at settlement another 4% or 5% comes out of the transaction and goes to us as Buyer's Agent. In other words there is a guarantee from us that we are working ONLY for you the buyer and in exchange you guarantee us a commission of 5% - which is usually already taken care of, or at least part of it, in the seller's commission.
I can draw this division of fees out for you on paper if need be when we meet the first time. Bottom line; you don't pay any more and you get the absolute best representation.
The buyer's agency arrangement begins with the initial interview, continues through an initial selection of properties to investigate and view and then to contract negotiations. This culminates with the final settlement and transfer of funds for property. The buyer may choose to have an agent specifically committed to representing his best interests.
The great part for the buyer is that he/she gets the benefit of decades of experience and professional knowledge, all of our connections and reputation with those connections, and pays nothing until final close of transaction. Where else can you get the best possible professional service and pay nothing until it's complete and satisfactory. Will your doctor, lawyer, accountant, mason or carpenter do that... NO. We do, if you contract with us first. Otherwise we represent the seller at your expense! This is true of all Realtors by law. Which would you like?
Recently real estate laws in virtually every state are being rewritten to allow and suggest that the buyer have his own specific representative. If you are the buyer and have a buyer's agent, your agent will try to get you the best deal possible, even if that is NOT in the best interest of the seller.
Legally: "Buyer's Agency" is a relationship where the real estate agent is working FOR you with fiduciary responsibility (financial and legal responsibility). The agent is then legally bound to only the buyer and owes his entire loyalty and allegiance to the buyer alone.
In the past, and even most of the time today, all real estate agents and brokers represent the seller alone; to get the highest price for the seller. In fact seller's agents MAY NOT disclose fully all that they know about a property to the buyer as they seek the highest price. The relationship of a broker and agent is established in writing with the seller when the property is listed for sale in the "Listing Agreement".
In Delaware we are required to give each person we work with; buyer or seller; a written explanation regarding agency status. We have professionally written brochures that explain the "seller's agency" and it's opposite "buyer's agency". This agency disclosure must be explained, in writing, at the first significant contact of the agent with the buyer or seller.
Agents in our office talk with a great number of long-distance buyers over the phone. We must, when we finally meet in person, disclose and determine which position we will take with the person we are speaking with. Some agents work mostly as seller's agents; some work mostly as buyer's agents and some work as a dual agent (where we act as full representative to both buyer and seller). Regardless of the role the agent takes -- it should be fully and completely known by all agents, buyers and sellers involved -- and it should be in writing.
Let us now put this forward again:
Seller's Agent: has the full and complete and sole duty to obtain the best deal for the seller. The seller's agent is ONLY allowed to give the buyer material facts about the property. It is customary for a cooperating broker and agent to be a subagent to the seller's agency established by the brokerage that has the written contract with the seller to sell the property.
Buyer's Agent: has the full, complete and sole duty to obtain the best deal for the buyer. The buyer's agent may convey any and all information obtained in any fashion, including in depth investigations about the seller or the property.
Dual Agent: has to be legally and financially loyal to both parties. Dual agency occurs when a real estate agency is contracted to sell a home. That means they have the listing, and an agent from that same brokerage, working as a buyer's representative, shows that listing. Dual Agency must be disclosed and agreed to in writing by all parties. Some people feel that Dual Agency is potentially a conflict of interests. It can be unless the agent is fully honest to all parties and they are fully aware of and in agreement with that relationship. Here, the entire purpose of the dual agent is to get the best possible deal, in all it's components, for both the buyer and the seller.
There are, in general, two major personalities of buyer's agents. First is the agent who only and always represents buyers. The other is the agent who takes each transaction and each customer into account before making that decision. An agent who usually works as a buyer's agent, for instance, may NOT want to represent a particular buyer as that buyer's agent for one reason or another. The reason is usually one of some personality difference. As I put it, when speaking with a buyer whom I wish to represent "I will be your gladiator. I will do battle on your behalf, and at the expense of and against the interests of, the seller and the seller's agent."
The buyer's agent must still be honest, but he need not be fair. For instance, if the buyer's agent is able to find out that the seller is in big financial or personal trouble and that the seller has a small mortgage on the property or that there is some impending deadline for selling the property, then the buyer's agent will tell the buyer. Together they will use that information to get a great deal for the buyer at the seller's expense... it that is possible.
If I were a buyer, I would not even consider doing a real estate transaction without a buyer's agent to act on my behalf. I suggest that you are wise to do the same. If there are detailed and extensive negotiations that need to be done; such as unique and difficult terms that must be negotiated then (being the buyer) I'd ask that the buyer and the seller agree to have me as a dual agent. Whatever your choice, it should be in writing with your agent and must be known to all parties involved.
Copyright © 2001-2004 by www.JodyHudson.com
Source for this article is: http://www.kate-jody.com/essays/buyersagent.html
Article Source: http://EzineArticles.com/
Saturday, October 01, 2005
9 Tips to get started in the home selling process
1. Get Pre-Approved for a Home Loan
I've known sellers who signed a contract to sell their house before they knew if they were qualified to buy another. Either their financial circumstances had changed since their last purchase, and they could no longer qualify for a loan, or they weren't able to sell at a price that allowed them to buy the type of replacement house they wanted. They ended up renting or buying something that was far from ideal.
Before you decide to sell the house, get pre-approved by a lender you trust and research the housing market in the area where you wish to live so that you have a good idea how much it will take to buy a replacement.
How To Start ResearchingStart looking for two types of real estate: houses that seem to match the one you'd like to buy and houses that are similar to your current home.
Find homes in free For Sale publications, often available outside grocery and convenience stores.
Search the Internet for homes for sale in your area and read real estate ads in your local newspapers. You won't find house locations without making phone calls, but browsing the general market will get you off to a good start. And to compare for-sale homes to your own, learn how to Measure Residential Square Footage.
2. Check Your Mortgage Payoff
Call your lender to check the payoff for your current home mortgage. You'll need the figure to complete Step 6.
3. Determine How Much the House Is Worth
Determine your home's fair market value. Real estate agents will usually help you determine value as a courtesy, but you might take it a step further and order an appraisal.
4. Estimate Your Costs to Sell
Real estate commission if you use an agency to sell.
Advertising costs, signs, other fees if you plan to sell by owner. Attorney, closing agent and other professional fees.
Excise tax for the sale.
Prorated costs for your share of annual expenses, such as property taxes, home owner association fees, and fuel tank rentals. Any other fees typically paid by the seller in your area (surveys, inspections, etc.).
Real estate agents deal with transactions every day and can give you a very close estimate of seller closing costs.
5. Determine Your Costs to Acquire a New Home
Total your costs to acquire a new home: moving expenses, loan costs, downpayment, home inspections, title work and policy, paying for a new hazard insurance policy--all expenses related to buying a home. Your lender should give you a disclosure of estimated costs when you apply for pre-approval.
6. Calculate Your Estimated Proceeds
Deduct your mortgage payoff from your home's fair market value.
Deduct your costs to sell from the remainder to get an estimate of the proceeds you will be paid at closing.Will your closing proceeds cover your costs to acquire a new home? If not, do you have cash or other funding to make up the difference?
7.Make any repairsMake all needed repairs unless you want the house to be regarded as a fixer-upper. I'm not referring to cosmetic updates, but to items in need of repair. Anything that's obviously broken gives potential buyers a reason to submit a lower offer.
For a preview of several repair hot spots that worry buyers the most, read Passing Your Home Inspection.
8. Get the House Ready to Show
Most houses need at least a little spiffing up before they are shown to potential buyers. Great curb appeal, fresh paint indoors (and sometimes out), organized closets and cabinets, sparkling clean windows and appliances, and a clutter-free atmosphere are essential if you want the house to appeal to buyers.
9. Get Psyched Up to Let People In
If you're listing with a real estate agent, she'll no doubt ask you to leave when the house is shown. Why? Because lurking sellers make buyers nervous--they don't feel comfortable inspecting the house when they feel they are intruding.
Unless there's a real reason for it, don't ask your agent to be present for all showings. That's the kiss of death for showing activity. Other agents want privacy with their buyers and they don't usually have time to work around your agent's schedule.
Make the house accessible. That means it's always ready to show. Many agents won't bother showing a house that takes 24 hours to get into.
I've known sellers who signed a contract to sell their house before they knew if they were qualified to buy another. Either their financial circumstances had changed since their last purchase, and they could no longer qualify for a loan, or they weren't able to sell at a price that allowed them to buy the type of replacement house they wanted. They ended up renting or buying something that was far from ideal.
Before you decide to sell the house, get pre-approved by a lender you trust and research the housing market in the area where you wish to live so that you have a good idea how much it will take to buy a replacement.
How To Start ResearchingStart looking for two types of real estate: houses that seem to match the one you'd like to buy and houses that are similar to your current home.
Find homes in free For Sale publications, often available outside grocery and convenience stores.
Search the Internet for homes for sale in your area and read real estate ads in your local newspapers. You won't find house locations without making phone calls, but browsing the general market will get you off to a good start. And to compare for-sale homes to your own, learn how to Measure Residential Square Footage.
2. Check Your Mortgage Payoff
Call your lender to check the payoff for your current home mortgage. You'll need the figure to complete Step 6.
3. Determine How Much the House Is Worth
Determine your home's fair market value. Real estate agents will usually help you determine value as a courtesy, but you might take it a step further and order an appraisal.
4. Estimate Your Costs to Sell
Real estate commission if you use an agency to sell.
Advertising costs, signs, other fees if you plan to sell by owner. Attorney, closing agent and other professional fees.
Excise tax for the sale.
Prorated costs for your share of annual expenses, such as property taxes, home owner association fees, and fuel tank rentals. Any other fees typically paid by the seller in your area (surveys, inspections, etc.).
Real estate agents deal with transactions every day and can give you a very close estimate of seller closing costs.
5. Determine Your Costs to Acquire a New Home
Total your costs to acquire a new home: moving expenses, loan costs, downpayment, home inspections, title work and policy, paying for a new hazard insurance policy--all expenses related to buying a home. Your lender should give you a disclosure of estimated costs when you apply for pre-approval.
6. Calculate Your Estimated Proceeds
Deduct your mortgage payoff from your home's fair market value.
Deduct your costs to sell from the remainder to get an estimate of the proceeds you will be paid at closing.Will your closing proceeds cover your costs to acquire a new home? If not, do you have cash or other funding to make up the difference?
7.Make any repairsMake all needed repairs unless you want the house to be regarded as a fixer-upper. I'm not referring to cosmetic updates, but to items in need of repair. Anything that's obviously broken gives potential buyers a reason to submit a lower offer.
For a preview of several repair hot spots that worry buyers the most, read Passing Your Home Inspection.
8. Get the House Ready to Show
Most houses need at least a little spiffing up before they are shown to potential buyers. Great curb appeal, fresh paint indoors (and sometimes out), organized closets and cabinets, sparkling clean windows and appliances, and a clutter-free atmosphere are essential if you want the house to appeal to buyers.
9. Get Psyched Up to Let People In
If you're listing with a real estate agent, she'll no doubt ask you to leave when the house is shown. Why? Because lurking sellers make buyers nervous--they don't feel comfortable inspecting the house when they feel they are intruding.
Unless there's a real reason for it, don't ask your agent to be present for all showings. That's the kiss of death for showing activity. Other agents want privacy with their buyers and they don't usually have time to work around your agent's schedule.
Make the house accessible. That means it's always ready to show. Many agents won't bother showing a house that takes 24 hours to get into.
Wednesday, September 28, 2005
Great set of tips on what to do to get your home ready to sell
what a great bunch of info from a government site:
If you've decided to sell your home, chances are you're caught up in a host of emotions. You may be looking forward to moving up to a new dream house or facing the uncertainty of a major move across country. You may be reluctant to leave your memories behind or eager to start new adventures. Whatever turbulent feelings you're experiencing right now, there are plenty of practical matters that need your attention. Keep in mind the following considerations to help the whole process go more smoothly.
Time Becomes Money
It's a good idea to place your home on the market as far in advance as possible of purchasing a new one. If you find a new home first and then try to sell your present home, you may wind up with two mortgages. If this does happen, ask your real estate agent or banker about a bridge loan to help you make the double payments. Lenders use the same criteria for offering bridge loans as they use for mortgages. Should you qualify for a bridge loan, beware of the expense; during the term of the loan you must continue to pay both mortgages. Shop around for the best terms.
Keep in mind that when people move, sell and buy, there usually is a domino effect. Closing and moving dates have to be coordinated, and the more firmly everyone commits to a window of dates and sticks to them, the better for all involved. Put all agreements about dates in writing, and protect yourself by negotiating financial penalties for failure to comply.
Check Your Curb Appeal
A home that's visually appealing and in good condition will attract potential buyers driving down the street. Use this checklist to view your property through an outsider's eyes.
Are the lawn and shrubs well maintained?
Are there cracks in the foundation or walkways?
Does the driveway need resurfacing?
Are the gutters, chimney and walls in good condition?
Do the window casings, shutters, siding or doors need painting?
Are garbage and debris stored out of sight?
Are lawn mowers and hoses preperly stored?
Is the garage door closed?
On the Inside
Strong curb appeal will lure potential buyers inside, where you have to live up to their expectations. Fortunately, there are plenty of easy improvements you can make to your home's interior without spending a lot of money. Cleaning is No. 1. Your windows, floors and bathroom tiles should sparkle. Make sure you have clean heating and air conditioning filters. Shampoo dirty carpets, clean tubs and showers, repair dripping faucets and oil squeaky doors. Keep your home neat, clean and picked-up at all times. It may not seem fair, but a peek in the oven may be the hallmark by which a buyer judges how well you have kept up your home.
Remove unnecessary clutter from the garage, basement, attic, closets and straighten stored items. Also remove any items that might make a statement that would be offensive to others who may not share your same views, beliefs or sense of humor. If your home is crowded with too much furniture, consider putting some things into storage. If a room needs a fresh coat of paint, use a neutral off-white. Think, too, about how your home smells. You may be used to the smell of a pet or cigarettes, but such odors can be a strong turn-off to others. Be certain to remove valuables such as jewelry and other items from view. It might be wise to put these items in a safe deposit box before showing your home. Finally, set a mood for the buyer. Make your house homey with live flowers and fresh guest towels in the bathroom. Place scented potpourri around the house or, on the day you're expecting a potential buyer, pop a batch of frozen cinnamon rolls into the oven for a welcoming aroma.
Remember, cosmetic changes do not have to be expensive. In fact, costly home improvements do not necessarily offer a good return on your investment when you sell. It's attention to the basics—anything that says “this home has been carefully maintained”—that will help you get the price you want.
Go It Alone
Some homeowners decide to sell their homes themselves in order to save the commission charged by a real estate agent. The commission rate may vary, depending on where you live or what agency you choose, but it is generally upwards of 5%. However, handling your own sale means you will be responsible for placing ads, answering phones and showing your home to strangers. What's more, buyers who know you are saving on an agent's commission may offer less for your home, wiping out the financial incentive to do it all yourself.
You may decide an agent's commission is a bargain the first time that a would-be buyer shows up unannounced at dinnertime. Also, be aware that a real estate agent probably knows a lot more about the business of selling a home than you do. Here are some of the advantages professional agents offer:
They will help you establish a fair asking price for your home.
They will promote your home to other agents and list your property in multiple listing services. A multiple listing service is a book or computer database that all real estate agents who subscribe to the service can access. Your home will get exposure to all those agents, one of whom may have the perfect buyer.
They will create, pay for and place advertising for you.
They will schedule appointments to show your home to prospective buyers even when you are not there.
They can weed out buyers who will not qualify for a mortgage.
They can refer you to sources for insurance, inspections, legal counsel and financing.
They will help you negotiate with the buyer.
They can make suggestions to help make your home more attractive to a potential buyer.
If you decide to sell through an agent, ask friends and neighbors for recommendations. Talk to several agents before picking the one you want to work with. Taking a walk through your home with an agent should give you a feel for how that person will handle prospective buyers. Ask prospective agents how they plan to market your home. Don't sign with an agent just because he or she suggests the highest asking price. Negotiate the broker's commission prior to listing your home, and sign for a limited period of time—usually three to six months.
Setting a Fair Price
Naturally, you want to get top dollar for your home. But, at the same time, you don't want to scare off potential buyers with a price tag that's too high. Setting an artificially high price may cause your property to languish on the market for months. Reducing your asking price later on may lead buyers to wonder if there is something wrong with your home. Here are some of the factors to consider in pricing your home.
Your location
Economic conditions
Supply and demand in the local housing market
Seasonal influences
Local schools
Average home prices in the neighborhood
Your home's extras -- pool, fireplace, central air, etc.
To determine the value of your home, you probably will want the advice of a real estate agent or appraiser. Ask an agent to prepare a market analysis for you, showing the recent selling prices of three neighborhood properties comparable to your own. The agent can help you adjust for the unique features of your own property.
Qualifying a Buyer
Either you or your agent will want to quickly weed out potential buyers who cannot really afford to purchase your home. A number of factors will help determine whether or not you are wasting your time negotiating a sale.
The buyer's debt and credit history
The buyer's current income and employment
The buyer's cash position and availability of a down payment
The length of time the buyer needs before closing on your home
How interested the buyer appears to be in your home versus others
Seek Legal Representation
When selling your home—particularly if you are selling on your own—it's a good idea to be represented by an attorney. Look for an attorney with expertise in real estate transactions. When a potential buyer puts an offer in writing and you accept it, the signed acceptance becomes the sales contract. Your attorney will be present at the actual closing to protect your interests and can assist you with the following elements of a sales contract:
The sale price
What is included in the sale price -- draperies, carpeting, light fixtures, heating oil, etc.
The amount of the down payment
The date of closing and possession date
Contingencies to the sale--inspections (e.g. structural, lead-based paint, radon), required improvements, legal review of the contract by the buyer's or seller's attorney, etc.
The amount and length of the mortgage loan, interest rate and time limits to secure the loan
Determining which closing costs are to be paid by the buyer and which by the seller
Tax Implications
Selling a home can have a major impact on your federal and state tax returns. Check with your tax consultant on the factors that may affect taxes resulting from the sale of your home. For example:
Whether you purchased the home or acquired it by gift or inheritance
Whether you used your home partly for business or rental
Costs associated with selling your home
Home improvements or additions, which may help to offset capital gains
The sale of your home. In certain cases you can exclude up to $250,000 in gain ($500,000 for married couples filing a joint return) on the sale of property that was your principle residence for at least two years. Generally, you can use this exclusion every two years.
Congratulations!
You've successfully weathered the logistics of selling your current home, and you're ready to move on to a new and exciting chapter in your life. As you prepare for the coming changes, check out the Life Advice sections Moving and Buying a Home to aid you in this transition.
If you've decided to sell your home, chances are you're caught up in a host of emotions. You may be looking forward to moving up to a new dream house or facing the uncertainty of a major move across country. You may be reluctant to leave your memories behind or eager to start new adventures. Whatever turbulent feelings you're experiencing right now, there are plenty of practical matters that need your attention. Keep in mind the following considerations to help the whole process go more smoothly.
Time Becomes Money
It's a good idea to place your home on the market as far in advance as possible of purchasing a new one. If you find a new home first and then try to sell your present home, you may wind up with two mortgages. If this does happen, ask your real estate agent or banker about a bridge loan to help you make the double payments. Lenders use the same criteria for offering bridge loans as they use for mortgages. Should you qualify for a bridge loan, beware of the expense; during the term of the loan you must continue to pay both mortgages. Shop around for the best terms.
Keep in mind that when people move, sell and buy, there usually is a domino effect. Closing and moving dates have to be coordinated, and the more firmly everyone commits to a window of dates and sticks to them, the better for all involved. Put all agreements about dates in writing, and protect yourself by negotiating financial penalties for failure to comply.
Check Your Curb Appeal
A home that's visually appealing and in good condition will attract potential buyers driving down the street. Use this checklist to view your property through an outsider's eyes.
Are the lawn and shrubs well maintained?
Are there cracks in the foundation or walkways?
Does the driveway need resurfacing?
Are the gutters, chimney and walls in good condition?
Do the window casings, shutters, siding or doors need painting?
Are garbage and debris stored out of sight?
Are lawn mowers and hoses preperly stored?
Is the garage door closed?
On the Inside
Strong curb appeal will lure potential buyers inside, where you have to live up to their expectations. Fortunately, there are plenty of easy improvements you can make to your home's interior without spending a lot of money. Cleaning is No. 1. Your windows, floors and bathroom tiles should sparkle. Make sure you have clean heating and air conditioning filters. Shampoo dirty carpets, clean tubs and showers, repair dripping faucets and oil squeaky doors. Keep your home neat, clean and picked-up at all times. It may not seem fair, but a peek in the oven may be the hallmark by which a buyer judges how well you have kept up your home.
Remove unnecessary clutter from the garage, basement, attic, closets and straighten stored items. Also remove any items that might make a statement that would be offensive to others who may not share your same views, beliefs or sense of humor. If your home is crowded with too much furniture, consider putting some things into storage. If a room needs a fresh coat of paint, use a neutral off-white. Think, too, about how your home smells. You may be used to the smell of a pet or cigarettes, but such odors can be a strong turn-off to others. Be certain to remove valuables such as jewelry and other items from view. It might be wise to put these items in a safe deposit box before showing your home. Finally, set a mood for the buyer. Make your house homey with live flowers and fresh guest towels in the bathroom. Place scented potpourri around the house or, on the day you're expecting a potential buyer, pop a batch of frozen cinnamon rolls into the oven for a welcoming aroma.
Remember, cosmetic changes do not have to be expensive. In fact, costly home improvements do not necessarily offer a good return on your investment when you sell. It's attention to the basics—anything that says “this home has been carefully maintained”—that will help you get the price you want.
Go It Alone
Some homeowners decide to sell their homes themselves in order to save the commission charged by a real estate agent. The commission rate may vary, depending on where you live or what agency you choose, but it is generally upwards of 5%. However, handling your own sale means you will be responsible for placing ads, answering phones and showing your home to strangers. What's more, buyers who know you are saving on an agent's commission may offer less for your home, wiping out the financial incentive to do it all yourself.
You may decide an agent's commission is a bargain the first time that a would-be buyer shows up unannounced at dinnertime. Also, be aware that a real estate agent probably knows a lot more about the business of selling a home than you do. Here are some of the advantages professional agents offer:
They will help you establish a fair asking price for your home.
They will promote your home to other agents and list your property in multiple listing services. A multiple listing service is a book or computer database that all real estate agents who subscribe to the service can access. Your home will get exposure to all those agents, one of whom may have the perfect buyer.
They will create, pay for and place advertising for you.
They will schedule appointments to show your home to prospective buyers even when you are not there.
They can weed out buyers who will not qualify for a mortgage.
They can refer you to sources for insurance, inspections, legal counsel and financing.
They will help you negotiate with the buyer.
They can make suggestions to help make your home more attractive to a potential buyer.
If you decide to sell through an agent, ask friends and neighbors for recommendations. Talk to several agents before picking the one you want to work with. Taking a walk through your home with an agent should give you a feel for how that person will handle prospective buyers. Ask prospective agents how they plan to market your home. Don't sign with an agent just because he or she suggests the highest asking price. Negotiate the broker's commission prior to listing your home, and sign for a limited period of time—usually three to six months.
Setting a Fair Price
Naturally, you want to get top dollar for your home. But, at the same time, you don't want to scare off potential buyers with a price tag that's too high. Setting an artificially high price may cause your property to languish on the market for months. Reducing your asking price later on may lead buyers to wonder if there is something wrong with your home. Here are some of the factors to consider in pricing your home.
Your location
Economic conditions
Supply and demand in the local housing market
Seasonal influences
Local schools
Average home prices in the neighborhood
Your home's extras -- pool, fireplace, central air, etc.
To determine the value of your home, you probably will want the advice of a real estate agent or appraiser. Ask an agent to prepare a market analysis for you, showing the recent selling prices of three neighborhood properties comparable to your own. The agent can help you adjust for the unique features of your own property.
Qualifying a Buyer
Either you or your agent will want to quickly weed out potential buyers who cannot really afford to purchase your home. A number of factors will help determine whether or not you are wasting your time negotiating a sale.
The buyer's debt and credit history
The buyer's current income and employment
The buyer's cash position and availability of a down payment
The length of time the buyer needs before closing on your home
How interested the buyer appears to be in your home versus others
Seek Legal Representation
When selling your home—particularly if you are selling on your own—it's a good idea to be represented by an attorney. Look for an attorney with expertise in real estate transactions. When a potential buyer puts an offer in writing and you accept it, the signed acceptance becomes the sales contract. Your attorney will be present at the actual closing to protect your interests and can assist you with the following elements of a sales contract:
The sale price
What is included in the sale price -- draperies, carpeting, light fixtures, heating oil, etc.
The amount of the down payment
The date of closing and possession date
Contingencies to the sale--inspections (e.g. structural, lead-based paint, radon), required improvements, legal review of the contract by the buyer's or seller's attorney, etc.
The amount and length of the mortgage loan, interest rate and time limits to secure the loan
Determining which closing costs are to be paid by the buyer and which by the seller
Tax Implications
Selling a home can have a major impact on your federal and state tax returns. Check with your tax consultant on the factors that may affect taxes resulting from the sale of your home. For example:
Whether you purchased the home or acquired it by gift or inheritance
Whether you used your home partly for business or rental
Costs associated with selling your home
Home improvements or additions, which may help to offset capital gains
The sale of your home. In certain cases you can exclude up to $250,000 in gain ($500,000 for married couples filing a joint return) on the sale of property that was your principle residence for at least two years. Generally, you can use this exclusion every two years.
Congratulations!
You've successfully weathered the logistics of selling your current home, and you're ready to move on to a new and exciting chapter in your life. As you prepare for the coming changes, check out the Life Advice sections Moving and Buying a Home to aid you in this transition.
Monday, September 26, 2005
20 Low-Cost Ways to Spruce Up Your Home to sell
20 Low-Cost Ways to Spruce Up Your Home
Make your home more appealing for yourself and for potential buyers with these quick and easy tips:
1. Trim bushes so they don’t block windows and cut down on light.
2. Buy a new doormat.
3. Put a pot of bright flowers (or a small evergreen in winter) on your porch.
4. Put new doorknobs on your front door.5
. Put a fresh coating on your driveway.
6. Edge the grass around walks and trees.
7. Keep your garden tools out of site.
8. Be sure kids put away their toys.
9. Buy a new mailbox.
10. Upgrade your outside lighting.
11. Use warm, incandescent light bulbs for a homey feel.
12. Polish or replace your house numbers.
13. Clean your gutters.
14. Put out potpourri or burn scented candles.
15. Buy new pillows for the sofa.
16. Buy a flowering plant and put in a window you pass by frequently.
17. Make a centerpiece for your table with fruit or artificial flowers.
18. Replace heavy curtains with sheer ones that let in more light.
19. Buy new towels.
20. Put a seasonal wreath on your door.
Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2005. All rights reserved. www.REALTOR.org/realtormag
Make your home more appealing for yourself and for potential buyers with these quick and easy tips:
1. Trim bushes so they don’t block windows and cut down on light.
2. Buy a new doormat.
3. Put a pot of bright flowers (or a small evergreen in winter) on your porch.
4. Put new doorknobs on your front door.5
. Put a fresh coating on your driveway.
6. Edge the grass around walks and trees.
7. Keep your garden tools out of site.
8. Be sure kids put away their toys.
9. Buy a new mailbox.
10. Upgrade your outside lighting.
11. Use warm, incandescent light bulbs for a homey feel.
12. Polish or replace your house numbers.
13. Clean your gutters.
14. Put out potpourri or burn scented candles.
15. Buy new pillows for the sofa.
16. Buy a flowering plant and put in a window you pass by frequently.
17. Make a centerpiece for your table with fruit or artificial flowers.
18. Replace heavy curtains with sheer ones that let in more light.
19. Buy new towels.
20. Put a seasonal wreath on your door.
Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2005. All rights reserved. www.REALTOR.org/realtormag
Subscribe to:
Posts (Atom)