Category Archives: organizing

commitment, Communication, education, Inspiration, organizing, planning, selling, Team work, tips

SELLING A HOME IS A TEAM SPORT.

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Business Team Signing Contract……and you the seller have a very important part.

 

Houses sell best when the selling Team works together and you as the seller are part of the team. Nothing new, but now let me explain what I mean with this.

 

Your part is to make sure your home put’s its best foot forward. Without this very vital contribution the rest of the Team will not have an easy time doing their part. The other team members have the job of selling what you have. Not preparing the property for sale.

 

The Marketing part of the selling is done right after you have finished signing the Listing contract. Most of the REALTORS® will advertise the house online and with fliers that are available in the flier box right in front of the house.

 

One of the seller’s parts of the Teamwork is to de-clutter the house and to put their personal possessions away during showings. Now, the Buyer who has read the web advertising, reviewed the pictures of the home which were posted online, and reads the property remarks:” Roomy home, with ample storage”, will go through the house and find it as it described rather than finding the kitchen full with clutter and stuff and the toothbrush dirty in the sink or dirty laundry on the floor and being disappointed.

 

I know this is a drastic example but this is to show how important the seller’s role is in being part of the selling team.

 

The REALTOR® is there to help as a coach in preparing the property to sell and to get the team to the finish line. Everyone is a vital part of the team.

buying, commitment, Communication, education, Inspiration, organizing, selling, Team work, tips

DOES YOUR HOUSE HAVE A SMILE OR A FROWN?

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house 2 beforeListening to a presentation about the correlation between a smiling face and a longer life span of a person reminded me of pictures of homes that are offered for sale.

How many pictures of homes did you see on the internet that showed a genuine smile and how many more do you see that are frowning?

house 2 afterYes…a home can either smile or frown through pictures.

It has everything to do with how you as the owner take care of your house inside and out and how you prepare your home for the photo close-ups. When the decision is made to sell your home, you need to prepare it for its’ best smile for the close-up photos inside and out.

You may need to consider reducing the amount of personal items you have as decorations, including family pictures you have in the house. This would be also a great time to make more money by holding a yard sale or just consider getting a storage unit. I would advise against storing any items in the garage.

Clean the house inside and out. When you don’t have time, hire a cleaning company to help you with the cleaning and I would advise cleaning every nook and cranny on the inside of the house. When needed repairs are made touch up with paint. The bigger the smile on your house during for the photos, the more buyers and potential full price offers you will attract.

buying, commitment, Communication, education, Inspiration, organizing, planning, Team work, tips

Here comes another Tornado Season

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We are here once again. Another tornado Season and the ones who live in Tornado Alley know very well that nothing can be done against Mother Nature, other than being prepared and ready to take cover.

Don’t be complacent when a tornado is heading your way. By that time it’s usually too late to make a plan.

Designate a “Shelter Area” in your home. For a Home that is not a Trailer move to the lowest level of the house such as a basement or under a stairway. When you have no basement available use the smallest room or hallway on the lowest level and put as many walls between you and the storm. The place you choose needs to be away from windows.

When your home is a Mobile home, you need to find a designated storm shelter. A mobile home, even when tied down, will offer little or no protection during a tornado.

Buy a weather radio or download a weather app to your smart phone.

 

Assemble a “Disaster Supplies Kit”. The American Red Cross recommends a “disaster supplies kit” containing the following items:

 

•         A first aid kit with essential supplies and medication
•         A battery powered radio, flashlight, and extra batteries
•         Canned and other non-perishable foods. Don’t forget a hand-operated can opener
•         Bottled water
•         Candles and matches
•         Sturdy shoes and work gloves
•         Cash and credit cards
•         Copies of vital paperwork like driver’s license, birth certificates, insurance papers, credit cards, vehicle keys, medical cards…..

 

Know the Difference between a watch and a warning.

 

•         A tornado watch means that weather conditions are favorable for the development of tornadoes.  Stay alert and keep tuned in for further advisories.

•         A tornado warning means that a tornado has actually been sighted. Warnings are issued for individual counties and include the tornado’s location, direction and speed.

Do not try to outrun a tornado with a vehicle. Take shelter when a Tornado Warning has been issued. Tornado “watching” is best left up to the professional.

buying, commitment, Communication, education, Inspiration, organizing, planning, selling, Team work, tips

CENTRAL INDIANA HOME STATISTICS UPDATE

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Rising profitsThe Central Indiana’s housing inventory remaining low is not surprising. We had an unusually harsh winter and many homeowners were reluctant to list their homes for sale. With the warmer weather we should see an uptrend in available homes. With the interest rates remaining low, and forecasts indicating no huge increases until 2015, we could have a great 2014 selling season.

Here in central Indiana we have seen a slow but sure increase in home pricing based on the local REALTOR Association information. Over the last 6 months the average home price saw an increase of 8.7% and most of the homes sold in Central Indiana received offers that were 91.8% of their original asking price.

In the nearby area of Brown County, the increase of properties available indicated a 41.2% over last year. Morgan County did not perform as well showing a decrease in available listings indicating a 30.1% over last year. Decatur County has seen the largest increase in home pricing over last year with 44.8% in comparison to Putman County where home prices decreased over last year by 10.7%.

buying, commitment, Communication, education, Inspiration, organizing, planning, selling, tips

Tips to keep you home insurance low.

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safe1. Shop around

Take your time before get your home owners insurance. Get referrals from people you know and do your research. The National Association of Insurance Commissioners www.naic.org has great information for you.

 

2. Keep your deductible high

The higher you’re deductible is the better your premium will be. When you can afford a $1000 deductible you can safe up to 25% on your premium, most insurance companies asking for a $500 deductible.

 

3. Don’t include the land in your insurance

The price you paid for your home includes the land it stands on (in most states) and it is not in risk of being stolen or fire (you could just make sure the trees are covered). The land will always be there so consider not including it in the coverage.

 

4. Keep all your policies with one company

When you keep all of your policies with one insurance company, like the house and your auto, you can save with a multi-policy discount. Depending in the insurance company it can vary between 5-15%.

 

5. Disaster proof your home for your area.

You may be able to save on your premium when you retrofit your home to make it more resistant to windstorms. Older homes may get a break when they are being modernized with new heating, plumbing, and electric. You need to contact your insurance agent for further assistant on this.

 

6. Add to your home security

Adding a smoke detector, fire extinguisher, deadbolt locks and a monitored security system could get you a possible insurance discount of 5%. Before you do any modifications like this contact your insurance agent for recommendations.

 

7. Look for other discounts

Non-smokers can get you a discount with some insurance companies. When you are 55+ and retired, and you live in the home most of the year, you could qualify for another discount.

 

8. Credit Score

Keep a good credit score, the better your credit the better will be your insurance premium. Make sure you check your credit on an annual basis.

 

9. Don’t move from insurance company to insurance company

Some insurance company give special discounts for long term policy holders. The longer you stay with the company the higher the discount will be. You could be eligible for discounts from 5-10%.

 

10. Annual policy review

Did you add a floater for the high end computer you no longer owned or grandma’s jewelry you have sold at auction? Check and see if you had something included in your policy that you no longer own. Have it removed and save the difference.

 

11. Private insurance VS. Government plan

Government plans are higher than private insurance plans, especially in high risk areas. Check for possible private insurance carriers who might insure homes in a high risk area. A high risk area is for instance along the coast or areas of high crime.

 

12. Shop for insurance before you buy

Call your insurance company before you buy and they will let you know what type of home will have a more reasonable insurance premium.  Some things the insurance company will take in to account are the age of the home, the age of all of the systems (plumbing, heating), age of the roof, and possibly the type of siding.

 

13. Check the CLUE Report

For many homes you can find a report which shows the insurance claims history of the home. With this you could decide what potential problems the property might have.

 

14. Other insurance

Remember that when your future house is in a flood plain you have to get flood insurance. That could add in an average of about $400 annually to your insurance premium. When your house is in an earthquake prone area you also need to buy a separate earthquake policy. Earthquakes are not covered under a standard policy.

 

Disclaimer: I am not an insurance agent or an attorney. For legal advice or any advice regarding this topic contact your insurance agent or legal counsel.

buying, commitment, Communication, education, Inspiration, organizing, planning, selling, Team work, tips

Stage the vacant home……for safety reasons.

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DSC_0008When selling a vacant home it you should have it staged to look as if it is lived in. From the outside, with curtains and a light or two turned on, it will look lived in to a potential drive by thief. Also, when placing you home on the market, try to find pictures of the inside showing furniture. When you do not have pictures with furniture you could have it staged with rented furniture or add a few pieces from your own collection. It will keep the potential thief guessing. We do not want to invite thieves or potential squatters. Each picture posted on the MLS of an empty room might invite the copper and wire “collectors” of the area.

 

The other invitation might be the disclosure “bank owned” on the MLS, but due to having to disclose this to the potential buyer there is not much we can do. I have seen listings where agents leave the “bank owned” part out of the public disclosure but have it written into the Agent-to-Agent remarks. I am not certain if this is kosher but that might be an answer.

 

Many times the under the public remarks is the verbiage used “vacant, OK to show, lock box code XZYT, call for feedback.

 

…..just don’t do that, you are inviting squatters and others who will use this house for their illegal reasons.

buying, commitment, Communication, education, green, Inspiration, organizing, planning, recycle, Team work, tips

Remodelers and Lead base Paint

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paintOn April 22nd 2010 a EPA ruling went into effect that has not only affected the homeowner but also the contractor who is remodeling or entering into remolding contract with a homeowner for a home that is build before 1978.

http://www.epa.gov/lead/pubs/renovation.htm

 

Each Remodeler has to hand the new EPA pamphlet called “Renovate Right” to their clients.

http://www.epa.gov/lead/pubs/renovaterightbrochure.pdf

When the rule took affect each firm that planned on working on homes built prior to 1978 must be certified and need to follow the EPA outlined work practices to prevent the lead contamination. All work completed on a home build before 1978 needs to be recorded and the contractor needs to test the area after clean up. The test has to match 100% to the EPA test card. When the test appears darker or dirtier than the card, the clean up must be repeated. In the new ruling, a contractor must use only equipment with a HEPA filter (example: grinder/sander). Also, a remodeler should not use a high-heat gun that exceeds 1100F.

Last but not the least a contractor needs to post warning signs for occupants and visitors and establish a containment area using disposable plastic drop cloths and clean the work area with HEPA vacuuming and wet washing.

Just keep this in mind when you buy your investment properties and you perform any restorations.

commitment, Communication, education, Inspiration, organizing, planning, recycle, tips

Clean up after the Storms

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blueprintWith the recent and future storms a lot of us will face the daunting task of clean up and major repairs. Facing the loss of everything that had value does not even cover the later possible loss when facing a scrupulous contractor that who’s only intention is to make some quick money. You cannot do anything about what Mother Nature has done or is in store for us but I can give you some small tips and tit bits on keeping from facing more damage due to bad contractors.

Make certain you call your insurance company first and have an appraiser come out to your home. The insurance company will also know some good reliable contractors. There is a good possibility that not everything is covered but at least a good contractor may lessen the loss, unless you have a total loss like one of my friends had. Your insurance agent will let you know what you can or should not do to lessen the loss before the adjuster comes to your home. It would be wise to follow their advice.

The contractor should know what permits you may need or you can call your local municipality and find out what possible permits you need to for any major renovation or reconstruction. Yes these permits they will cost you money but this will require inspections and help insure that the work will get done right and to current code. While talking to your municipalities ask for the cost of each permit. I have seen contractors inflating the price trying to get you to forego a permit. The permit can be a major pain but it is only there to insure that you the homeowner will get what you paid for and that you are safe and up to current code when you are moving back into your home.

When you need to find a contractor yourself you can refer to these and other possibilities:

  1. friends and family referrals
  2. Local Real Estate Agents and Brokers
  3. Chamber of Commerce
  4. Angie’s list
  5. Better Business Bureau

While picking a contractor ask for the following items from them.

  1. Their contractors’ licenses. In most states contractor or general contractors have to be licensed. Did you know you can verify a license online and can check if there is any pending litigation?
  2. Copy of their insurance certificate. A reputable contractor is insured and bonded. Call the insurance agent named on the policy to find out if it is still active.
  3. Get references to call. When you call them ask if you can visit to see the work performed by the contractor.
  4. Call the BBB and log on to Angie’s list to inquire about this contractor.

When getting your estimates of repairs DO NOT let the same contractor provide you with two separate estimates in two different names just to give you a “great Deal”. That is a good indication that the contractor is dishonest. Just last night I overheard one of the contractors I know, but never did business with, talk about this to one of his friends and he was proud of it. He will NOT be on my referral list!!!

Get at least three estimates from separate contractors. This will give you a good idea on how much in average the repairs will cost. One Caution! There are might be hidden damages that will cost you extra and most contractors have an open ended statement in their contracts to that effect. So be prepared for that.

The one thing you will need to pack on this trip is a lot of patience….and be ready for a longer trip!!!

buying, commitment, Communication, education, Inspiration, organizing, planning, tips

Vacation time is a great time to scope out retirement areas.

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DSC_0002This winter has been brutal and ruthless to all of us and we are seeking the warmth and relaxing times of spring break, or just a plain vacation.

Many of us who are in the colder climates are talking about retiring in a warmer area but many just don’t take action until the clock hits 5 minutes until noon.  How about getting an earlier start on choosing places where you think you may like to retire and vacationing there to so you can see what they are like ahead of time.

A retirement area may look great in their advertising but as soon as you take a weekend or longer to spend time in the area you might find out that it is really not as good as you had hoped. It happened to me. I picked an area that sounded like it might be a great spot to retire. They had a lot to offer and many things to do so I decided to spend a weekend there to scope things out. I discovered that the traffic in the area, even in an off season, is so horrendous that even going to the grocery store just down the road would take over 3 hours.

You might also find out that home prices are affordable but the overall cost of living is much higher than advertised. Things like this you only find out when you spend time in the area and see what they are not telling you.

Another example I can think of right now is an area that is located at the Atlantic. I visited another beautiful historical area but found out the hard way with my dog at the veterinarian clinic that the area is heavily infested with flees. Dealing with this would be a constant battle. Do you think you find this out by just looking at pictures? No. You have to go there and find out for yourself or find someone who has already been there and are willing to tell you.

When you find an area you like, you might want to return several times for vacation and scope out areas where you may like to buy or rent a home. Just be sure to visit the area during different times of the year. This will give you a more well rounded picture of the area.

buying, commitment, Communication, education, Inspiration, organizing, planning, Team work, tips

Do your “due diligence” before you make an offer on a potential investment.

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paperworkAs the mortgage rates continue to remain low, and many of the current investors leaving the market, new investors are beginning to invest in the market. When buying an investment property you should do your due diligence and run all of your numbers before you buy.

Many investors have their own list of criteria that a property must meet prior to viewing and making an offer. Depending on what type of investment you plan to purchase your list might be longer or shorter. For instance, when an investor is looking to purchase a multifamily home of up to 4 units, they will pick a price range in an area they would like to purchase. With that in mind they begin shopping online to see if there are any properties that meet their criteria. When a potential investment has passed the first hurdle, the second hurdle the investment must pass could be a basic ROI calculation.

Some investors have a set ROI% they would like to meet after expenses. When running the ROI% make certain you use the current real estate tax that is owed and the current or potential rental income, if the property is vacant. If your research reveals a range of rental incomes use the median rental income for that area. After the property has passed this hurdle of due diligence investors will then move to the next step which is a property drive by. You would be surprised how much wear or damage a pretty picture can mask which you may deem undesirable. It depends on the willingness of the investor to put money and sweat equity into an investment. Some of the properties might not make it past this point. The properties that are still in the running and currently have tenants have to now pass the lease agreement test. Make certain you look at the current lease agreements. You would be surprised what you can find or don’t find while looking at the current lease agreements. Make sure you can live with the terms of the current lease agreements.

By now you should have eliminated many of the properties and have a much shorter list. Now it is time to complete a walk through to check the internal condition of the property. When you are not comfortable running your own repair numbers take a contractor with you who can give you an on the spot repair estimate of what it will take to get the property back into shape. Also, don’t forget to call your insurance agent and have them run a CLUE report on the property to find out if it is even insurable.

This is just a short list of due diligence items you should do prior to buying an investment property. Your list of criteria may be shorter or longer depending on what type of property it is and what type of tenants you would like to have.

The bottom line is you should do your due diligence prior to making an offer.