Category Archives: planning

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

CASH BUYERS SQUEEZING YOU OUT OF THE MARKET?

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squeeezingSome areas of the US have become a hot market. Even when you are pre-qualified for your mortgage, and have a 5 ā€“ 10% down payment ready to go, you may still come up short when you compete with cash buyers. Based on the National Association of Realtors’ Profile of Home Buyers and Sellers 2013 over 88% of home buyers are financing their home purchase and still many of them are getting priced out of the market due to hard cash buyers who do not need anything but a few days to close the deal.

Keep in mind most cash buyers are part of an investment group or company that has bigger pockets that can support a higher offer than what you might be able to afford. Here are some tips on how to outsmart a cash buyer especially when it comes to you wanting your dream home in an area where there is a huge influx of cash buyers pushing other buyers out of the market:

When you are making an offer on a property make sure you have a nice size down payment. Speak with your lender to find out how much they recommend or are requiring. Some might ask for as little as 5% and others might even ask for up to 10% to 20%.

The bottom line for the seller is what they will walk away with at the closing table. When you ask for a lot of buyer incentives the sellerā€™s bottom line will be affected and they may not take your offer.Ā  Secondly, they are looking at time. How soon the deal can be closed. DO you have another home to sell? The sooner the deal can be closed the better for the seller in many cases.

When you like the area, but you still have not been able to compete with the cash buyers who buy every ready to move in home they can get their fingers on, you might consider buying a fixer upper. In many cases a fixer upper, even in a hot area, will be less and when your mortgage qualification is for more than the asking price of the home, you might speak with your lender and find out if there is a chance that you could start with a construction loan, fix up the property, and then switch the construction loan to a mortgage.

When you are looking for advice or help with your real estate needs feel free to contact us.

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

HOW WOULD YOU DESCRIBE YOUR HOME WHEN YOU PLAN ON SELLING IT

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wordsMany times pictures are great but donā€™t forget the description of the interior of the house before you publicize it. Even when a home is a short sale, bank owned, or a foreclosed property, it has positive attributes that should be pointed out to a potential buyer. Keep it short, sweet, and to the point. List some of the positive attributes this home might have even though it could use some repairs. Some of the attributes could be a spacious living room, crown molding, or build-in book cases.

I came across a recent post by Sanette Tanaka titled What’s a Word Worth? and I received a short but sweet and to the point education of the usage of verbiage in listings.

Did you realize that the increased usage of listed verifiable characteristics of a home could increase the closed price of a home by about 13%? Still keep it short and to the point.

After this short education I took a look at some of the current listings I am watching for my buyers and noticed that some of them donā€™t even have a property description or even a picture. Others just point out the negative rather than the structural or historical positive on the property.

I know of one that is not on the historical registry but is historically significant to the area. That should be pointed out to a buyer.

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

ā€œYou can not always control circumstances, but you can control your own thoughts.ā€

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This quote from Charles Popplestown came to mind as I received a very long email from a possible Real Estate recruit. This explained to me why she hates doing certain tasks in her current function and why she thinks she will not be doing them later.

Do you know who your customers are and where they come from?

Ā It is easy for all of us to complain about this or that and/or maybe him or her. It is so much harder to look at the problem and offer a solution. When a company is recruiting, that is exactly what they are looking for. There are times when a company is hiring because they are faced with a situation (opportunity) they could not solve and they are now looking for the solution externally.light

In our business we strive to receive referrals and also to give referrals. Before we receive the referral business we have to earn it. Referrals, and the referral business, do not come without hard work, dedication, and offering of solutions to our current customers and clients.

This not only holds true in the world of our business, it holds true for all types of jobs and employment.

Be the solution to an issue and donā€™t become the issue. When you have an issue, offer a solution or an idea to a solution.

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

TYPES OF LOANS THAT ARE AVAILABLE TO CONSUMERS FOR PURCHASING A HOME

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Coin Dropping Into Piggy BankIt would be great when we could all pay cash for a home. Unfortunately most are not in the position to do this and must obtain a loan to purchase our home.

There are so many types of loans that it can be very confusing as to which type of loan to use. Some loans require you to have some sort of down payment. There are others that donā€™t have down payments. There is the conventional loan, loans for rural areas, for public servants like teachers, police officers and fire fighters. There are loans for veterans and their families and also rehab loans.

Here is some information on the more common used loans:

Conventional loan

This type of loan comes has multiple terms to choose from, between 15 and 30 years. You have a consistent mortgage payment for budget planning purposes. You must have a down payment and depending on the lender you are working with it can be up to 20% of the purchase price.

VA loan

A VA loan is a loan guaranteed by the Department of Veterans Affairs. If you are a veteran, member of the military, or a surviving spouse of a veteran, you can apply for this type of loan. There are some stipulations the VA puts on a veteran or their surviving spouse to be able to qualify for this loan. You should speak with a VA approved mortgage servicer/lender about your specific situation.

FHA loan

An FHA loan is great for a first time home buyer but you DONā€™T have to be a first time home buyer to qualify for this type loan. Many times the down payment is less than the 20% required for a conventional loan and the qualification and credit requirements are not as stringent. The FHA loan is an insured loan that is backed by the US Federal Housing Administration mortgage insurance organization. Only FHA-approved lenders can provide this type of loan to you.

USDA loan

This loan is for rural areas of the US. You can find out if your rural home purchase qualifies for a USDA loan by contacting the local USDA office within your state. With the USDA Rural Development Single Family Housing Guaranteed Loan Program there is no down payment but you need to buy a home that is in a USDA eligible area.

There are many more types of loan programs. You can find out what type of loan would be best for you and your family by contacting your favorite loan officer, or you go to our resource page where we have several of them listed for your convenience.

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

FIRST THINGS FIRST WHEN YOU ARE PLANNING ON SELLING YOUR HOME

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Pad of Paper & PenWhen you decided to sell your current home, whether to upgrade, downgrade, or circumstances dictate you have to sell, there are several things you truly should do before you have your agent put the house on the market.

You need to keep in mind that you are SELLING A HOUSE. Nothing less! Nothing more!

When it comes to selling a home less is more.Ā  Just visit a builderā€™s model home. You will never see family pictures on the wall, sports trophies cluttering up shelves, or the cabinets and walls cluttered. The walls are always painted in a more neutral color. The goal is for the potential buyer to walk into a home, fall in love and immediately being able to see themselves and THEIR furniture in the home. Not YOURS.

You already have been sold on your home and now it is time for you to sell your home to a different buyer.

The first thing you should do is to de-clutter each room. Either store or sell what you no longer need. On a side note you could inventory the contents for insurance purposes.Ā  Because when you have a loss the first thing an insurance company will ask for is a detailed inventory list of what is missing or damaged. When you consider storing your items do not use your garage. Your garage is part of the house you are selling and not your store room. Buyers need to be able to picture their vehicle in the garage and not the boxes you stored in it.

Give each room a good cleaning. Letā€™s find the dust bunnies that are hiding in the corner and under the bed. You would be surprised what you will find or what you have been missing. Give each wall and ceiling a fresh code of paint. You donā€™t have to use the $40 gallon paint, buy the more reasonable $10 gallon paint and have the store tint it with a neutral color. You donā€™t have to like the paint. Just donā€™t paint everything constitutional white. Different colors will add a different feel in each room.

When the carpets are over 10 years old, torn or dirty beyond cleaning or maybe screaming 70ā€™s 80ā€™s look consider replacing them as well.

The more your house speaks to a potential buyer the faster a home will likely be sold. When you are looking for more ideas or advice just contact me and I will be glad to help.

Communication, education, Inspiration, planning, tips

DONā€™T HAVE YOUR HOME BE A TARGET FOR BURGLARS

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The corner of a street signThe other night as I was driving through a neighborhood and noticed the flat screen TVā€™s hanging on the wallā€™s visible through the window for everybody see. Now how is that for an invitation to a burglar?

Nights are getting warmer and not only are the neighbors out and about walking their dogs, you also have individuals combing the neighborhoods for easy targets. When you already advertising your 50ā€ flat screen TV you might be on their short list.

Keep in mind that burglars are no longer just breaking into homes at night. Some of them are getting more brazen and break in during the day and even when you might be home.

When you are home, keep you front door locked. Donā€™t have it wide open and just depend on the locked screen door to keep you safe. If you are in the backyard working in your garden you might not hear anyone knocking at the front door and some people might try to open the door to see if it is locked.

When someone knocks, look through your peep hole to see who is at the door. Donā€™t just pull the door open, even when you are expecting a visitor. When you can, have a camera installed that overlooks the front door so that you can see who is at the door without having to stand behind the door.

Donā€™t have your TV visible through the window. When this is the only wall you could have your TV on consider blinds or shades that are not light filtering but at the same time keeping everybody from seeing what is inside.

To make it harder for someone to break into a window, consider planting thorny shrubbery around the house. Burglars look for easy ways in and out and they are really not in it to get hurt or stung by a bush. Do not have an easy accessible ladder hanging or standing outside of the house. It is not only easy and accessible for you but also for burglars. Look it up!

Same goes for your lawn mower, snow blowers, and bicycles. Store them out of site.

Also consider items inside your car whether you park your car at home in the drive, at work, or at the mall. Donā€™t leave anything of any value visible inside the passenger compartment of the car. When you cannot take it with you lock it in the trunk.

Consider installing a monitored security system for your home and USE IT at all times. Even when you are home.

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

ARE YOU LOOKING AT THE RIGHT HOUSE FOR YOU?

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question mark 2Many individuals who are making out their wish list for buying a home many times just think short term and not about resale. Many of us list our needs and wants and try to match the home we are looking at only to our wish list.

Each type of home has its advantages or disadvantages and there is no truly right or wrong. It does help when you go home shopping to not only think about the short term satisfaction but also long term outcome when deciding on buying a certain style of home.

A good example could be a single individual looking to buy their first home for their residence. Many times they just look at a one bedroom, 1 bathroom, and 1 car garage cottage, or a bungalow style home or maybe a small condo not anticipating that they might start dating and possibly have a growing family a few years down the road. When it comes time to sell their small bungalow the number of buyers that may be interested in their small home or condo may be a lot of smaller than with another type and somewhat larger home.

When looking to buy a home consider thinking long term. Sometimes it might be better just to rent for a while rather than buying till you know your plans for your future such as your career dreams. These type of decisions may lead you to move to another state.

If you decide you would consider your long term plans such as a life partner or a growing family, you might consider a larger home with more garage space, more bathrooms and bedrooms. In the beginning you could use the bedrooms as an exercise room, office space, pool room, or guest room that could easily be turned into bedrooms if needed. On the other hand you might anticipate that after your children have grown and left the home you may have aging parents that need to move in with you due to health or other circumstances.

Finding a new home that fits your needs is very exciting. Just think long term when choosing which home on which you would like to make an offer to buy.

Communication, education, Inspiration, organizing, planning, selling, Short sale, Team work, tips

Can I sell my home right now or should I wait a little longer?

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questionIn several corners of the US, the housing market has started to pick up but in the majority of the US you can feel the anticipation in the air of sellers who are ready to make the move to put their home on the market. However, they may be holding off because they donā€™t know where to turn for answers to their questions.

We all know different areas have been hit by the downtrend in home sales somewhat harder than others and the home prices have been low. There are many areas who have not seen a home sale in over 6 months. This makes things a bit interesting for everyone wanting to sell.

When you have made the decision that it is time to put your home on the market, or maybe you were put in a situation forcing you to sell, the first thing I recommend is to interview several real estate agents to help you in the process.

During the interview you should try to learn about the qualifications of the agent. If those qualifications are suitable try building a relationship with the agent. Keep in mind that the relationship with this agent could last a long time through the selling process and you are building the relationship with the agent, not the company they work for. I have personally seen homes that received an offer after 4 days of being put on the market, but did not close for another 5 to 6 months. There have been homes on the market for 6 to 8 months but closed in less than 2 weeks.

You can tell what the sales market is like in your neighborhood by watching how many sales signs there are and how long they are posted in front of the homes. Homes that have signs posted in their yard for longer periods of time may indicate that the market is not good at the present time and you may need to wait to put the house on the market. Yes, the interest rates are still low and there are buyers out there who want to buy. But sometimes you need to bide your time and wait just a little longer, unless of course your situation does not allow you to wait.

If you need to sell due to your circumstances, it is especially important to have a solid relationship with the agent you work with. Keep in mind that there are some agents that are better a buying and others that are better at selling. The one you used to buy your home might not be the right one to help you sell it. This is not always the case but you need monitor this when using the same agent. During the interview you need to find out the agents experience with a slow market as well as their experience with lenders and short sales. This is useful in case you receive an offer that is less than the amount needed to cover your mortgage.

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

SHORT SALES ARE STILL PART OF TODAYā€™S MARKET

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inboxEven in todayā€™s market there are many homeowners who are still considering selling their home through the short sale process due to personal hardships they are facing.

Hardships can take on many forms. The loss of value in a home or not budgeting your income well enough are two examples that can lead someone to decide to short sell their home but they are not really hardships. To qualify for a lender approved short sale you need to have a valid hardship such as a divorce or death for instance.Ā  There are many more valid hardships.

Some homeowners will decide strategically (voluntarily) to default on their mortgage even so they do have the ability to make their monthly payment and donā€™t have a valid hardship. They do this with the intent on achieving approval for a lender approved short sale. Just because you voluntarily default on your mortgage does not mean you will receive approval for short sale. You will still need to prove the validity of your hardship prior a lender approving you for a short sale.

As buyers and sellers we need to be informed of the ins and outs of a short sale while keeping in mind, that when you as the seller opt to sell your house through a short sale, you might not be able to buy anther home for about 2 -3 years. This would be at the discretion of the servicer and what type of mortgage you had previously.

As the buyer you might need to have some patience during the closing process because it is the sellerā€™s lender who has the final say so on the sale of the house and not the seller. You also need to be willing to be pre-approved (not pre-qualified) for a loan. Many homes are being sold ā€œASISā€. You can have your home inspection but most of the time the seller is not able to make any repairs.

For additional information about short sales or selling real estate in general feel free to contact our office.

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

HOW DO I PRICE MY HOME?

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Magnifying Glass and U.S. Fifty Dollar BillQ: Iā€™m about to put my home on the market. What factors should I consider when determining a listing price?

A: The ten main factors that influence the value of your home are:

1. Interest rates: The lower the interest rates, the more buyers can afford to pay.

2. Supply and demand: Are ā€™for saleā€™ signs springing up all around the neighborhood? If there are a number of homes similar to yours on the market, consider them your competition. What can you do to set your home apart and make it potentially more desirable than the other listings? This will attract more buyers. On the other hand, a small number of homes for sale can result in competing bids that drive prices up.

3. Economy: Is the economy improving or sliding? This will affect buyersā€™ confidence in their ability to manage debt.

4. Location: Are you in a desirable neighborhood, with key services such as schools, doctors, and shopping nearby? Are there factors that make your neighborhood less desirable, such as environmental issues or traffic problems?

5. Condition: Do you have an older home that needs updating to modern standards? Have you kept up with repairs? Is the house clean? Does your house make a good first impression? (This is called “curb appeal.”) How much can you reasonably do to fix it up and still get your fix-up investment back in the sale?

6. Timing: Do you need to sell quickly or can you wait for a better time in the market?

7. Size: Will your home appeal to a growing family or to those who are downsizing?

8. Amenities: Does it include features that are popular, such as low-maintenance landscaping or granite counter tops?

9. Terms: How flexible are you with respect to the sale? Whatā€™s excluded? If you are downsizing and have substantial equity, have you considered offering financing? Carrying financing can make your home very appealing to someone who cannot get approved for a loan and also help you sell for the maximum price.

10. Attitude: How committed are you to selling now?

To determine your homeā€™s value:

  • Research the housing market in your area. Browse the Internet, local newspaper ads and free ā€™For Saleā€™ publications. Visit open houses in your neighborhood to get a general idea of the current market.
  • Get a comparative market analysis (CMA) from a REALTORĀ®. A CMA compares homes that are currently available and those that have sold in your neighborhood in the past year. The more similar the features — square footage, number of rooms, lot size, etc. — and the more recent the data, the more accurately it reflects the current market. Donā€™t confuse listing price with sold price — the most important factors in the CMA. REALTORsĀ® usually do CMAs for home sellers at no charge.
  • Have your home appraised. An appraisal estimates your homeā€™s market value. A lender will require an appraisal to finance a prospective buyer. For residential properties, a professional appraiser will either compare your home to similar properties that have sold in the area or, for new properties, estimate how much it would cost to replace the existing structure if it were destroyed.

To maximize your homeā€™s value:

  • Eliminate clutter and clean. The more you can clean your home and keep it tidy, the easier it will be to show, and more buyers will see it at its best.
  • Paint and repair. First impressions count. Improve the appearance of your home with a coat of fresh paint. Take the time to fix any dripping taps, broken tiles or cracked widow panes.
  • Consider hiring a home stager. A professional home stager can help you enhance the selling potential of your home by showing you how to arrange your home to appeal to buyers. Whether itā€™s rearranging furniture, minimizing belongings, lending you accessories or renting furniture, they work with you to show off your homeā€™s best features. Many will also coordinate hiring professionals to do cleaning, painting and minor repairs should you choose to do this.

Whatā€™s the right price?

Generally, aim for your list price to be between 2.5 to 5 percent higher than what you expect the selling price to be. Pricing strategies vary with the market. If itā€™s sluggish, price lower. If itā€™s active, price close to your expected selling price to stimulate competing offers.

Remember, your home is easiest to sell when itā€™s first listed. During the first couple of weeks, youā€™ll get a flurry of interest on the part of agents eager to preview it for their clients. If you price it too high and they canā€™t sell it, your home may linger on the market and become old news. Prospective buyers may think youā€™re becoming desperate and lower their offers. As a result, you could end up having to accept less than you normally would have received.