Sell My House Baltimore

"Buy the lowest priced house in the highest priced neighborhood you can afford."

2009-10-14T22:23:00.000-04:00

It's smart to buy at the low end of a desirable neighborhood because your less-expensive home will appreciate on the coattails of your neighbors' sought-after homes. Buying low also gives you some room to fix-up or add-on without exceeding average prices in the area. If you find a home that's selling under market, be sure to find out why. First, get a professional inspection to make sure nothing major is wrong. Next, check the location. If it's next to a high school, for example, think twice about the traffic and noise next door. If you're lucky, the home may be sound and well-located but perhaps in less-than-optimal condition--something you can put right with "sweat equity." The home could also be priced lower than average because it is smaller than average or the sellers are under pressure to move quickly.

Equity Matters--How Much Of Your Home Do You Own Now?

2009-10-14T22:21:00.001-04:00

Homeowners facing possible foreclosure are especially vulnerable to the various schemes employed by today's con artists. Don't fall prey to their promises. The best first step is to call your lender at once if you think you may miss your mortgage payment.Are you thinking about refinancing your home or selling it and buying another one? Whether you are able to do either may depend on how much equity you have in your home. Lenders today are requiring more equity for refinancing and larger down payments for new mortgages, compared with the days of the housing boom.

Given recent declines in home prices in general, some homeowners are no longer sure how much their homes are worth and, therefore, aren't sure how much of their homes they really own. Often would-be refinancers and buyers don't learn the answer until after the lender has had the property appraised. If the appraisal comes up short, the homeowners may not be able to refinance or buy their next home -- and be disappointed after paying hundreds of dollars in up-front fees. You do have several alternatives, however:

Check your tax assessment and see how much it has changed since you last knew what your home was worth. Although tax assessments are often not equivalent to market value, the difference between your old assessment and your current one can give you a rough idea of how your home's value has increased or decreased.

Study recent list and sold prices of comparable homes in your area. Some of this information may be gleaned from your local newspaper or online from companies such as Zillow.com and Trulia.com. Be aware, however, the estimated prices on these public data one-formula-fits-all services often don't reflect real-world market values today.

"Buy for today with an eye on selling tomorrow."

2009-10-03T17:21:00.000-04:00

The home you buy will affect you personally and financially for quite a while. Make sure it's a home you'll still want to own several years down the road. Will you be starting or expanding your family? Buy a home with extra space now. Is your income likely to increase over the next several years? Stretching your budget early may make sense if you'll be happy in the home longer. Are there any plans for major changes in the area? New roads, housing or shopping developments, and expanded commercial activity could affect your home's value--positively or negatively. In short, it pays to look ahead before you leap into your next home.

Selling a home and buying a new one so that you won’t get stuck with two mortgages

2009-09-13T22:05:00.002-04:00

It’s best, where possible, to put your home on the market early enough so that you won’t be caught in a two-mortgage situation. That way, should you sell your old home before you locate a new one, you can:

Ask your buyer to settle on a mutually-convenient closing date that allows you more house-hunting time.

If an earlier closing date is unavoidable, you might be able to sell, then rent your home back from your buyer until you find a new home.

If your buyer must move in before you find a new home, you can rent a home in the area where you’re house-hunting.

If, on the other hand, you must buy a new home before you’ve sold the old one, one of these interim methods may tide you over:

If the seller of the home you want to buy agrees, you might be able to make your purchase contingent on selling your old home within a specified time. Under these not-ideal circumstances, the seller may agree only if the home can be kept on the market while waiting for you to sell yours. If the seller receives another offer during this waiting period, you may be given the opportunity to meet the new offer or bow out.

If you have a purchase contract on your old home, but the closing date is some time off, you might take out a bridge (or swing) loan, using the equity in your old (and also, sometimes, in your new) home as collateral.

If you have accepted a transfer offered by your employer, you may receive programmed relocation assistance, which will probably cover a portion of the costs of selling your old home and buying a new one (including a bridge loan of some sort). Your company may engage a third-party relocation management company to sell your old home.If, however, your company has no relocation program, it may still assist you with the financial aspects of your move.

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Slowly But Surely..Home Sales Rise

2009-09-03T23:56:00.000-04:00

Are We There Yet? Has The Housing Market Hit The Bottom

2009-09-03T23:55:00.002-04:00

Bottom Yet ...Maybe. Buy Real Estate Now

2009-09-03T23:51:00.005-04:00

Selling Short To Avoid Foreclosure

2009-09-01T20:15:00.003-04:00

When homeowners find themselves on the short-track to foreclosure, many will choose to sell their homes in a short-sale transaction -- selling for less than the mortgage amount still owed to the lender. A short sale prevents the owner from going through the trauma of foreclosure and eviction, but real estate experts agree it's not for the "faint of heart." Among other things, a successful short sale requires an aggressive pricing and marketing strategy designed to get the home sold quickly. And because it involves negotiating with the homeowner's lending institution, a little patience also comes in handy.

Before you start the short sale process, ensure your situation fits your lender's qualifications. Contact them directly to discuss your personal situation. Then act promptly each step of the way:

Contact your lender to request their short-sale package. (In many cases, lenders will not work with us unless the homeowner gives specific permission -- ask your lender what they require.) A single contact person is sometimes assigned by your lender for all communication to be directed to.

Set a realistic asking price for your home that will attract buyers and also be a reasonable amount for your lender to readily accept. (Of course, we'll help with this crucial decision.) Note that most lenders will not approve a short sale until you already have a purchase offer.

Sign a listing agreement that the home sale is contingent upon short selling the property with your lender's approval.

Accept a complete purchase offer made by a buyer.

Complete necessary paperwork for the lender including, but not limited to, a Hardship Letter, Statement of Assets, and Liabilities, Preliminary Net Sheet, Bank Statements, Purchase Agreement, Comparative Market Analysis and Listing Agreement.

Purchase offer is presented to your lender with required documents by your real estate professional.

Follow-up with the lender is necessary to keep the line of communications open.

Keep communications open with the buyers to keep them interested in pursuing the purchase if the lender doesn't make a quick decision or responds with a counterproposal.

Lender accepts purchase offer.

Home closes/settles as in a traditional home sale.

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Buying Smart Now With A Plan To Get It All Later

2009-09-01T19:37:00.004-04:00

Image by katielips via Flickr

Whether you are a first-time home buyer or you're ready to move up to your next home, you'll want to get as many of the "must-haves" on your list as possible. But what if you can't afford them all? And what about all those "sure-would-likes" that you're looking forward to? The key to maximizing your home investment today is distinguishing between the types of amenities you're better off buying as part of the property, and those you could add later without too much trouble and expense. Here's some information to help you focus.

Location: It's the one thing you can't change about a property. Location is about being in a desirable neighborhood and close to (but not necessarily next to) valued amenities or planned ones -- employment opportunities, good schools, shopping, public transportation, major thoroughfares, parks and recreation, cultural activities, etc. A good location is also about not being on a high-traffic street, near noise, next to run-down properties, in a flood plain, etc.

Structural integrity: Make sure the home you buy doesn't come with a cracked foundation, pest infestation, drainage issues, mold or other problems that may be difficult and expensive to correct.

Size: The size of a home is important, especially if you're just starting to raise a family. It's easier and less expensive to reconfigure existing space (turning a basement into a family room or a garage into a bedroom, for example) than to build an addition. And, you can only add that addition if yard size and zoning restrictions allow.

Bathrooms: Again, it's significantly less expensive to remodel a bathroom than to add one, so look for a home that has the number of bathrooms you really want.

Bedrooms: Find a home with at least the minimum number of bedrooms you require, but with space (perhaps an attic or enclosed porch) that could eventually be converted to a bedroom should you need another one in the future.

Cosmetics: Although a neon pink bathroom might make you cringe, that's exactly the type of problem you can easily and inexpensively correct. You could repaint it yourself for around $100, or hire someone else to do it for a few hundred more.

Other items you can change -- or add -- over time without too much effort or cost: carpeting, landscaping, appliances, hardware and fixtures, lighting, countertops, cabinets, upgraded doors, vanities, closet space, siding, windows and lots more.

To sum up: Buy a home with "good bones" in a good location and you're likely to enjoy living there for many years to come -- improving as you go. When you get ready to sell, you'll have exactly what other buyers are looking for!

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Great Buys, Fast Sales In Today's Housing Market

2009-09-01T19:32:00.006-04:00

No matter what's going on, every housing market offers opportunities for buyers and sellers -- and our local market is certainly no different. Knowing the options available for your particular situation is key to making a financially sound decision about buying or selling a home today.

Unfortunately, some homeowners in our area have experienced the painful process of losing their homes to foreclosure. Some of those homes are still on the market, now listed for sale by lenders and other institutions at bargain prices -- a real opportunity for buyers who have good credit and sufficient cash. Other homeowners can see foreclosure on the horizon, unable to stay current on their mortgage payments yet owing more to their lenders than their homes are worth.

These homeowners may still have some options such as conducting a "short sale" in which the home is sold for what the market will bear, with the lender receiving all proceeds from the sale and forgiving any remaining debt. In these situations, buyers not only help sellers avoid foreclosure, they can also benefit from below-market prices.
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Time Running Out On $8,000 First-Time Buyer Tax Credit

2009-08-22T18:13:00.000-04:00

Qualified first-time home buyers have a unique opportunity that may never come around again: getting up to an $8,000 tax credit -- that does not have to be paid back -- for purchasing a principal residence before December 1, 2009. Technically, you don't really need to be a first-timer, just a qualified buyer who has not owned a principal residence in the three years prior to the home purchase closing/settlement date.

Time is of the essence if you want to take advantage of this $8,000 freebie. Bear in mind, once you locate a home you want to purchase, it will take some time to negotiate with the seller, arrange for mortgage financing and accomplish the tasks required by your contract and your lender -- appraisal, survey, inspections, title search, etc. In order to claim the credit, qualified buyers must close/settle the purchase transaction before the December 1 deadline.

Now Could Be Perfect Opportunity To Move Up, Down Or Over

2009-08-22T18:11:00.000-04:00

Have you been thinking about buying a different home -- one that's larger, smaller, closer to work or just different? Today's market offers a perfect opportunity, especially if you have enough equity in your current home to make a large down payment on your next one. Start shopping and you'll find lots of selection available, flexible sellers and very low mortgage interest rates.

Of course, as a home seller, you'll want to price your home realistically and offer attractive terms to get your home sold quickly. When you find your next home, though, you'll be in a strong position to negotiate price and terms with the seller and get the best deal on a mortgage loan

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How To Spot The Signs Of Recovery In Today's Housing Market

2009-08-22T18:08:00.001-04:00

If you've been interested in buying or selling a home, but are unsure whether the timing is right, you're probably not alone. It's easy to lose perspective on our own local market amidst the barrage of news about the nation's housing market during this period of change. Still, to grasp what is really happening today -- and make a sound choice about buying or selling a home -- requires an understanding of what a normal real estate market looks like. Here are some of the measures that indicate the state of a housing market.

Appreciation

Think the first six years of this decade were normal? Not by a long shot. Nationwide home values between 1980 and 2000 increased an average of 26.5% every five years -- or just over 5% per year -- according to data from S&P/Case-Shiller Home Price Indices. By contrast, average nationwide home prices between 2000 and 2006 increased 89% -- or roughly 15% per year! It's no surprise some buyers and investors began to view homeownership as a short-term get-rich-quick opportunity rather than what it has always been -- a long-term investment that provides a dependable roof over one's head and some very valuable tax advantages.

Affordability

The fact that average nationwide home prices have declined in the last couple of years reflects a return to a healthier market where buyers can better afford the homes they want to purchase. Consider that the national average sales price of homes traditionally has been two-and-a-half times average household income. From 2004 through part of 2006, that ratio had soared to four times average income. While homeownership rates hit record highs during those years, some buyers stretched their budgets too far in order to purchase homes and/or took mortgage loans they couldn't afford over the long term. Little wonder foreclosures increased.

Supply

The supply of homes for sale, relative to demand, has a major impact on the direction of home prices. In the housing industry, that relationship is expressed by "month's supply of inventory," which is the total number of new and existing homes for sale divided by the number of homes sold per month. Balanced markets (where neither buyers nor sellers have a particular advantage) have about a six-month supply of homes.

During the housing boom, where housing supply in some markets fell to one or two months of inventory, competing buyers bid up prices that resulted in double-digit annual appreciation rates. As inventory exceeds a six-month supply of homes, buyers begin to have an advantage when negotiating with sellers, and downward pressure on prices may occur.

Sales-To-List Prices

Another indicator of the direction of a housing market has to do with how close actual sales prices are to listing prices and how that ratio changes over time. Using statistics from the local multiple listing service, we can determine the average listing price of homes in a particular area over a specified period of time and compare that figure with the average sales price of area homes over the same period. If, for example, homes were selling at 92% of list price six months ago, but are now selling at 95% of list price, we know downward pressure on prices is easing, and the market is moving toward a more normal condition.

Local Factors Key

Although it may be satisfying to understand what is going on as the nationwide housing market returns to equilibrium, those trends have little impact on the housing market you may be considering buying or selling in. Housing markets vary widely by region, city and even neighborhood according to economic conditions and employment opportunities, housing inventory, community amenities, tax rates, transportation options, insurance costs, etc. In addition, local markets can change considerably from year to year, even month to month.

It's Only A Buyer's Market If You Buy

2009-08-22T18:02:00.001-04:00

For many of our clients -- especially move-up sellers and first-time buyers -- this is an outstanding real estate market. Rarely in our experience have so many positive factors come together for those who are ready to buy a new home. Now is a great time to buy -- for the old-fashioned reason, of course -- to own the place where you live. Have you seen the real housing market lately? You may be surprised.

Prices are realistic and interest rates are near historic lows. That means it's affordable to buy. The selection of homes for sale gives you a range of possibilities to choose from. Today, FHA guidelines are easier and tax credits bigger -- like the $8,000 first-time buyer tax credit. State and local incentives to buy are also available in some areas. New-home builder incentives are back. Even second-home prices and selection are attractive today.

Bottom line? Now is a great time to buy or move up or invest -- or even help a child or grandchild get started in homeownership. But the best bargains go fast. Don't miss out. Not every type of under-valued property is available in every area -- that's why we make it our business to help our clients be ready to move quickly when a great value appears. Let us show you the “reality” market and how we can help you take advantage of it.

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Homes Are Selling

2009-08-22T17:59:00.001-04:00

Homes are selling in our area but not the overpriced ones. Every month the best properties sell -- those with the best price, best condition, best terms, best location. They are the "cream" homes that rise above the other homes for sale and are snapped up by today's buyers who recognize value. Unfortunately, waiting one's turn for "cream" properties to sell first rarely works, because new listings constantly enter the market. These new homes for sale are typically priced based on what sold in the previous month (or months) -- and they are positioned to beat the unsold properties and expired listings that buyers have already shunned. To be a serious seller in today's market means giving your home a price position that places it among other "cream" properties -- the best values in the neighborhood. We'll be happy to help you find the right listing price to get your home sold fast.

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Right Sales Price Is Buyer's Call

2009-08-22T17:56:00.000-04:00

Proper pricing is critical to a timely sale in any market. Some home sellers want to set their price in relation to what their neighbors have sold for or are asking now, sometimes ignoring current market conditions and the differences between homes. When pricing a home -- especially in today's market -- we find it's critical to a fast sale for sellers to understand what governs a buyer's decision to purchase. Here's a quick look at how buyers view price:

Monthly payments are usually more important to a buyer than the sales price.

The "out of pocket" cash needed to settle is a big factor with buyers.

All buyers want to cash in on a good value.

Buyers have often shopped the competition and know how your home compares.

Buyers recognize and shy away from overpriced homes.

Buyers don't want to pay for your mistakes (paying too much when you purchased, over-improving the home, poor remodeling jobs, etc.).

Buyers have no interest in how much money you need to realize from the sale to make your next move.

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Underwater Mortgages

2009-08-20T20:04:00.003-04:00

Good Information in this video to at least keep yourself informed although its not good that most of us will be underwater on our mortgage.

Real Estate Short Sales

2009-08-12T20:10:00.006-04:00

The mystery behind real estate short sales and your home...

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Housing Outlook - Pending U.S. Sales of Existing Homes Rise

2009-08-05T15:08:00.000-04:00

We are slowly showing progress but I'm not to sure that we've hit the bottom just yet. My contacts at various banks are saying that there will in fact be another wave of foreclosures. Not only that but if you've been reading my previous posts loan modifications haven't even scratched the surface, which may eventually cause more foreclosures on top of what we already have coming..

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Mortgage Modification Efforts Not Helping Home Prices

2009-08-05T15:00:00.004-04:00

I have been definitely on a video kick a little lately....

The market is definitely not as bad as it was but are these loan modifications really helping AMERICANS THAT REALLY NEED HELP...

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What Happens If Your Sales Contract Fails?

2009-08-04T18:53:00.005-04:00

Home-sale contracts don't always go to settlement. Keeping the security deposit or earnest money that came with the contract (and went to an escrow account) is one way you could be compensated if the contract collapses. Do you have a right to the earnest money? That depends on how clearly you and the buyer spelled out, in the contract, what would happen with the money if the contract fell through.

If, for instance, the contract fails for lack of financing or due to a pre-agreed-upon home inspection problem, the deposit would normally revert back to the buyer. However, if the buyer was unable to get financing because he sabotaged his creditworthiness (say by purchasing a car just before loan approval), then you might have a right to keep the deposit. Contracts that fail because a defect in the property is discovered can be costly. The expense and time needed to fix the problem may delay getting the home back on the market. Added to that, you would receive no compensation

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Settlement

2009-08-04T18:52:00.001-04:00

If all goes well, you'll be relieved to sit down at the settlement table with the buyer and finalize the sale of your home. You'll have lots of paperwork to sign, which the settlement officer will explain as you go along. This is no time to be sheepish if you have any questions. Once settlement is complete, it is difficult to undo what's been signed and dated by all parties involved.
If for some reason you are unable to attend the settlement meeting, you'll need to make arrangements ahead of time, giving Power Of Attorney (POA) to someone who can sign paperwork for you. Often, the seller's real estate agent is asked to take on this responsibility, but you can designate anyone to represent you. Note that if your spouse's name is on the deed and mortgage, he or she will need to attend settlement or give POA to you or someone else.

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Walk-Through

2009-08-04T18:51:00.002-04:00

Just before the settlement meeting (perhaps the evening before if the settlement is scheduled early in the morning), your buyer and his or her agent will do a "walk through" of your home to check its condition. During this last-minute inspection, the buyer will look to ensure that all repairs have been made as agreed upon and that no new problems have developed. If the home is supposed to be empty and clean, the buyer will want to ensure that it is.

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Moving Out

2009-08-04T18:49:00.001-04:00

In many cases, the settlement date is also the occupancy date for the buyer. It's your responsibility to have your possessions moved out of the house by the occupancy date your sales contract specifies. In addition, most contracts require that the property be cleaned before it is transferred. You'll have to make arrangement to clean it yourself or have a professional do the job after your possessions have been removed.

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Survey

2009-08-04T18:48:00.002-04:00

Your buyer's lenders will want your property surveyed to ensure against boundary-line encroachments. For example, if a neighbor's fence or shed is found to be over your property line, it will be your responsibility to make sure it's disassembled and moved back to where it belongs. The same holds true if your fence or other structure crosses into a neighbor's yard.

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Inspections

2009-08-04T18:46:00.001-04:00

Anything you can do to improve your home's inspection report is worth handling before the inspection occurs. If you did a good job preparing your home for sale before you put it on the market -- tightening door knobs, unsticking windows, fixing leaky faucets -- you're almost all set. Now you just need to go back through your home to make sure nothing else went awry in the interim. Take a few minutes to make sure your furnace has a clean filter and that all light fixtures have working bulbs.

Despite your best efforts, a professional inspector may find problems with your home you've never been aware of. If your contract says you're responsible for them, be sure to schedule repairs as quickly as possible so as not to delay settlement. If the buyer has the legal option to walk away after the inspection, you may need to renegotiate the contract at a different price or with different terms.

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Settlement Date

2009-08-04T18:43:00.003-04:00

An offer to purchase a home typically includes a settlement date. Remember that this is an estimated date for settlement. Many things can crop up to cause delays:

Problems with the buyer's credit history that must be explained.
Delays in processing loan paperwork.
Delays in the property's appraisal.
Inspections and/or repairs that must be completed before settlement.
Liens against the property that need to be resolved.
Personal problems (such as a death in the family) that lead to rescheduling.

A settlement delay does not necessarily mean the transaction is falling apart. Many problems can be straightened out in a day or so, and most transactions do go to settlement eventually. The key is to remain flexible and available to deal with any problems that arise.

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Getting To And Through Settlement

2009-08-04T18:42:00.002-04:00

Once you've signed a sales contract with a buyer, many things have to be accomplished before the terms of that contract are fulfilled at the settlement table. Quite a few of these details will be handled by the buyers, their real estate agent and their lender, but you and your agent will certainly be involved along the way. Chances are you'll have to make your home, and perhaps yourself, available for the appraisal, home inspection and pest inspection.

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Loan Modification SCAMS....

2009-08-04T17:55:00.001-04:00

Be aware of shady business practices when doing loan modifications.

Baltimore Home Prices

2009-07-26T21:40:00.003-04:00

I thought it would be interesting to share how home prices in Baltimore have changed over a period of 20 years. WOW....What do you think?

The red line represents inflation adjusted home prices. The blue line represents norminal home prices.

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Coordinate Moving Dates

2009-07-25T15:31:00.000-04:00

Of course the other major challenge when selling a home is making plans to move out of it, and into something else. Ideally, you'll be able to set things up so you can move directly into your new home. If that's not possible, make arrangements for temporary storage near your new location.

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Who Moves The Stuff

2009-07-25T15:29:00.000-04:00

Another major decision is whether to move your possessions yourself or have professionals handle it for you. You may even want to do a combination of the two, taking care of the small stuff yourself, while letting the pro's handle the larger, heavier items. Be sure to get several estimates from movers. Compare them with the costs you would incur renting trucks and spending your own valuable time on the do-it-yourself approach.

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Transfer Services

2009-07-25T15:26:00.001-04:00

Be sure to call the companies you currently use, and the ones in your new location, 30 to 60 days before you move, if possible.

Utilities. Your electric power, water and gas should be transferred out of your name the day before your buyer's occupancy date. In your new home, coordinate with the people moving out to transfer services to you, making sure they don't have the power turned off. They should only remove their name from the account.

Television. Again, get your name off your old cable-service account. Cable may already be set up in your home, allowing you to simply change the name on the account. But also consider the many cable and satellite options available today, some of which include Internet and even telephone service along with your entertainment package.

Phone Service. Have your phone service turned off before the buyers move in, but consider having calls forwarded to your new number for a period of time. If moving within the same area, you may even be able to take your old phone number with you.

If you're relocating and have cellular phone service, take it with you but remember to change your service plan (to avoid roaming charges) early upon arrival in your new location.

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Timing

2009-07-25T15:21:00.001-04:00

Like that age-old question about the chicken and the egg, move-up sellers often wonder, "Which should we do first? Buy our next home or sell the one we have?" The best answer may depend on the state of the market you're in and the one you're moving to.

Fast to fast: In a hot market, homes in good condition and priced right are likely to move quickly. You shouldn't list your home too early, lest you be forced to move before you can buy in the hot market you're going to. To protect your interests, you might use a Home Of Choice (HOC) clause in the sales contract for your current home, allowing you time to find a new home before you're cast out of the old one.In this situation, it makes sense to start shopping for the replacement home early. Also, getting pre-approved for a loan gives you an advantage over your competition, reassuring sellers the contract can go to settlement without a hitch over financing.

You should, however, have a back-up plan for short-term housing in case settlement on the new home is delayed.

Fast to slow: This is the ideal situation, where the old home is likely to sell quickly and you have ample time to evaluate a good selection of homes in the new location. You may be able to write a contract contingent on the sale of your old home. Again, listing early may not be the best idea.

Slow to slow: The problem property in this situation is the one being sold. You should list early and get information about pricing strategies, possible inducements you can offer (e.g., seller subsidies), and the average number of days properties stay on the market in both locations. Again, a purchase contract contingent on the sale of the old home may be feasible. Or, you may be able to qualify for a bridge loan to avoid paying two mortgages simultaneously. A bridge loan is a short-term loan that uses the equity in your old (and sometimes your new) home as collateral. If a bridge loan or paying two mortgages isn't possible, renting in the new location may be the only choice until your old home sells.

Slow to fast: Perhaps the worst situation to be in, you should list and shop early. A contingent-on-sale contract isn't likely. Renting in the new market may be necessary, but pricing the old home at or below market and offering inducements could attract timely offers. On the buying side, getting loan pre-approval will help, as would a bridge loan.

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Contingencies

2009-07-15T18:19:00.001-04:00

You'll discover all sorts of contingencies in real estate sales contracts. Buyers almost always include a financing contingency, making the sale dependent on the buyer's ability to secure a particular type of financing, at or below a specified rate, by a certain date. Ideally, the buyer has already been pre-approved, or at least pre-qualified, for a mortgage loan. Assuming they are, and the rate specified isn't out of the ballpark, this contingency is not likely to scuttle the deal.

Another common contract inclusion buyers seek is an inspection contingency. With a "general inspection contingency," buyers have the option to walk away from the contract if they don't like anything found in the professional inspector's report. If you decide to accept an inspection contingency, make sure it's a "specific inspection contingency," which clearly states what problems would allow the buyer to walk away and how other problems found in the home will be resolved (e.g., timely repairs at the seller's expense, reduction in sales price, etc.).

Buyers may ask for a home-sale contingency, making their purchase of your home dependent on the sale of their old home within a specified period of time. If you're in a strong sellers' market, you may want to pass on this type of contingency, since it would increase the possibility that settlement will not occur. Or you might accept the contingency with the provision that if another buyer makes a non-contingent offer, you'll have the option of dropping the first contract.

A number of other types of contingencies and terms are possible. Rely on your professional agent's advice to help protect your interests as you move through the complexities of contract negotiation.

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Conveyances

2009-07-15T18:18:00.002-04:00

When selling your home, make sure you know what belongs to the house (what "conveys" to the buyer) and what you can take with you. Generally, if something is connected to the wall, floor or ceiling, it's considered a "fixture" and stays, unless specifically stated otherwise in the contract.

If you really want to take fixtures with you, say antique hardware or a chandelier, think about replacing it before you put your home on the market. That way, it can never become a contract issue.

Items that are not connected to the home, such as appliances, outbuildings or playsets, may also convey with it. These items should, however, be specifically listed in the contract. Again, assign a value to these items so you know how keeping them or conveying them will affect your bottom line.

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Settlement Costs

2009-07-15T18:16:00.001-04:00

Different traditons exist in different areas of the country as to who typically pays certain types of settlement costs -- loan points, attorneys' fees, title searches, recording fees, etc.

Nevertheless, you and the buyer can split these costs any way you want as you negotiate your contract.

In some cases, the buyer and seller may agree to pay particular types of costs. Or one of you may agree to pay a set amount, say $2,000, toward the total cost of settlement. Be sure to factor the costs you decide to pay, if any, into your bottom line.

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Deposit

2009-07-15T18:14:00.001-04:00

Buyers' offers are almost always accompanied by a deposit check or earnest money, representing the seriousness of the buyers' intentions. You'll want to conside how large that deposit is before you accept a contract and pull your home off the market. The larger the deposit, the more the buyer will lose if he or she fails to fulfill the terms of the agreement.

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Sales Price

2009-07-15T18:12:00.002-04:00

Although the offer price is certainly important, it is only one part of the contract. Other contract terms will increase or decrease the amount of money you actually net from the sale of your home. For example, a buyer may offer your full listing price, or more, but ask that you pay some or all settlement costs, which could amount to several thousand dollars. Keep your calculator handy when negotiating. You'll want to assign value to everything you receive and give away in the contract.

In a strong market, you may be fortunate enough to have multiple offers for your home, some, perhaps, with escalation clauses that push the purchase price well above your asking (or listing) price. You'll take the highest offer, right? Not necessarily.

What if the appraisal comes in under that high offer price? Will the buyers have enough cash to make up the difference? If the contract doesn't force the buyer to follow through in this situation, or the buyer simply can't fulfill the contract, you could end up back at square one, with or without a deposit check in your pocket. Whatever offer you accept should have a high likelihood of going to settlement. That means focusing on the terms of the contract and the financial wherewithal of the buyer.

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Work For The Win-Win Solution

2009-07-15T18:09:00.003-04:00

The whole point of negotiating is to find that point at which both parties to the contract get enough of what they want. Yet, sometimes the stickiest issues in negotiations over a home sale are very small ones. Sales have been lost, or nearly lost, over minor details, when both the buyer and seller insist on getting their way and neither will compromise.

It's important to be flexible, while keeping your attention fixed on your primary goals and the final outcome. Ask yourself: Is a specific item or group of items the buyer wants you to convey worth keeping, even if it causes you to lose the sale? How much would it really cost you to delay, or move up, the occupancy date? What inconveniences and costs will you incur if you pass on an offer and wait for another buyer to meet every one of your terms?

Be aware, too, that market conditions will play an important role in your negotiations. If you're fortunate enough to be selling in a sellers' market, you won't need to be quite as flexible, or generous, as you might be if there aren't enough buyers to go around.

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Negotiating Your Sales Contract

2009-07-15T18:05:00.002-04:00

Negotiations over the sale of your home begin when a buyer presents you with a written purchase offer, usually through his or her real estate agent. You can accept the offer, in writing, reject it or write a counter-offer, usually by modifying the original offer presented. Several series of counter-offers may occur before you finally reach an agreement.

The process of contract building ends when both you and the buyer sign the contract. At this point, your home is considered to be "sold," though the terms of the contract will not be fulfilled until settlement.

Whether you ever reach an agreement, however, will depend on how well you and your agent negotiate the terms of the contract with the buyer. If you took the time to prioritize your goals, as suggested in an earlier lesson of this course, you can refer back to them at this stage to help you stay focused on what you really want in your sales contract.

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Use Your Network

2009-07-09T20:28:00.002-04:00

Do you work in a company that routinely transfers people to your location? Put the word out that your home is on the market using bulletin boards, e-mail, etc. And don't be shy about asking friends and family members to tap their networks too.

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Make It Easy For Buyers To Buy

2009-07-09T20:26:00.001-04:00

Price is only one part of the "deal" you make with a buyer. Consider what incentives you can offer buyers to make your home the best deal around.

Financing is always a critical component of any home transaction. There are lots of ways you can give buyers a hand at relatively little cost to you. Perhaps you can offer to help finance the purchase of your home, taking back a second mortgage from cash-strapped buyers who can't come up with enough down-payment money. Another idea: Offer a mortgage subsidy for the first year or two of the loan.

After price and financing, a buyer's decision may turn on other terms you're willing to agree to in the sales contract. Occupancy dates, contingencies and conveyances can make or break a contract. Make your decisions early about these items and advertise the flexible ones.

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Offer Certainty

2009-07-09T20:24:00.001-04:00

Offering a one-year home warranty is a great way to help make buyers comfortable with the purchase of a resale home. Available for $300 and up, these warranties cover a home's major systems -- sometimes appliances, too.

Be sure to advertise updated features in your home. Have you replaced the roof lately? That's certainly worth mentioning about a 20-year-old home. Did you put in a high-efficiency furnace, replace the carpeting recently or have the home inspected by a professional? Again, it's worth highlighting anything that will help a home buyer feel more secure about investing in your home.

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Highlight Unique Features

2009-07-09T20:20:00.001-04:00

Whether your home is advertised through a homes magazine, on the Internet or with a sales brochure or flier, the advertising should include more than the basics, such as the number of rooms, type of heating, etc.

Put together a list of the attributes that first attracted you to your home. Is it close to great shopping, a park or a recreation center? Are there lots of school-aged kids in the area that a young family might hope to find? Is the landscaping mature and low-maintenance? Perhaps you could mention an annual block party or other community activity that helps make living in your home special. These "intangibles" could be pivotal when it comes time for a home shopper to pick between your home and a similar one nearby.

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It's Show Time

2009-07-09T20:19:00.001-04:00

Many home sellers benefit from two types of open houses: one for brokers and one for buyers. Usually, the brokers' open house is scheduled early in the listing period to introduce your home to other agents and brokers who have buyers waiting in the wings. Of course, you'll want to have your home in tip-top condition for this all-important debut on the market.

Open houses for buyers are usually held on Sundays. Initially, you'll plan just one. Again, your home should be in perfect shape for this show. Make arrangements to be somewhere else during the open house -- and make sure your kids and pets are too. Your agent will handle the show for you, greeting visitors and following up with them.

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Mapping Your Sales Plan To Attract Offers

2009-07-09T20:17:00.001-04:00

You and your professional real estate agent should work closely together when the time comes to plan a strategy for selling your home. Although your agent may be very familiar with your neighborhood and market conditions, you have the expertise when it comes to your particular home. You know its history, who the neighbors are and lots of other details that can be used to attract buyers. You'll also need to take a good look at incentives that could land the contract you're looking for.

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Repair And Replace

2009-07-07T17:23:00.001-04:00

Now is not the time to spend a lot of money improving your home. Many home-improvement and remodeling jobs are not likely to pay you back in full at sale time. You should, however, plan on spending some money to put your home into good condition. If you know something doesn't work, fix it. If you can't fix it, replace it.

Anticipate the home inspection your buyers are likely to order by checking all the major systems in the home -- plumbing, heating, cooling, electrical -- to the extent you know how. Check to see that all the major appliances are clean and working properly. Repair closet doors, loose knobs, torn screens, etc. Re-caulk bathrooms and kitchens

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Rearrange For Drama, Space

2009-07-07T17:21:00.001-04:00

Look for ways to give your home dramatic flair that captures the interest of buyers from the moment they walk in the door. Rearrange your furniture to emphasize the best features of your rooms, making them look functional yet inviting.

In larger rooms, consider pulling couch-and-chair arrangements away from the walls, perhaps setting them at an angle to the walls. Placing decorative rugs on the diagonal can also add drama and interest to a room. Make small rooms look larger by reducing the number of pictures on your walls. Minimize the size and number of pieces of furniture in small rooms, too.

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Toss Out And Organize

2009-07-07T17:20:00.001-04:00

Make sure your home looks neat as well as clean. If you can't find a place for everything, it's time to get rid of it or put it in temporary storage elsewhere. Create space in closets and cupboards. Remove clutter from table and counter tops. The idea is to make your home look comfortable -- but not lived in.

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Clean, Clean, Clean

2009-07-07T17:18:00.001-04:00

Start with the kitchen and bathrooms, removing stains, cleaning corners, polishing hardware, and cleaning appliances. Then move on to every area of the home -- including the garage or storage shed. Remove fingerprints from walls, or paint them if they're badly scuffed. Make sure windows, mirrors and light fixtures sparkle.

You may even want to hire a service to give your home an initial and thorough going-over. If you don't have time to maintain it, hire a weekly or biweekly cleaning service while your home is on the market.

Not only should your home look clean, it must smell clean. Pet odors will turn off any home buyer. If you can't clean them out of your carpets, think seriously about replacing the carpets and the pads under them.

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Second First Impressions

2009-07-07T17:17:00.001-04:00

The front-door area and interior entrance or foyer make a strong statement about the condition of your home. If these areas appear worn, dirty or unkempt, potential buyers will assume the rest of your home will be that way too -- or worse. Put a new coat of paint on the front door. Polish the door's hardware. Make sure the doorbell works. Buy a new welcome mat. Paint entry walls, if needed.

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Create A Good First Impression

2009-07-07T17:15:00.001-04:00

Many buyers check out homes for sale via a "drive by." If the home has "curb appeal," they'll come back for a more-thorough look. Make sure that first impression from the car is very positive by putting your yard and the face of your home in tip-top condition. Trim bushes, plant flowers (in season), and remove clutter such as bicycles and sporting equipment. If you have an asphalt driveway, put a sealer coat on it. Keep the lawn mowed, edged and free of debris.

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Neutralize Your Home

2009-07-07T17:13:00.000-04:00

Focus on putting your home in "move in" condition for the widest range of buyers. Neutral wall colors, carpets and draperies can serve as the backdrop to almost any color scheme a buyer might prefer. Buyers who see strong colors they don't like or that don't go with their furnishings will back away from homes they have to repaint or recarpet.

Take yourself out of the home as much as possible by removing family photos and memorabilia from walls and table-tops. The idea is to conceal your relationship with the property, allowing buyers to visualize it as their own home, not yours.

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Visit The Experts

2009-07-07T17:10:00.000-04:00

Builders spend lots of money researching what home buyers want to see and feel in a home. They put that information to use when they set up and decorate their models. Why not take advantage of their expertise?

Tour some new-home models in your area to see what accent colors are currently popular, to find out how furniture and accessories are arranged, to learn what prospective buyers see when they first walk in the door. Incorporate what you find into your own home, as far as possible. (Seeing some of the great options in new homes may also help you leave your older, less feature-laden home behind.)

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Get Ready Emotionally

2009-07-07T17:09:00.000-04:00

When you've lived in a house for a number of years, selling it can be a difficult emotional experience. Perhaps you built the home or remodeled it with your family's needs, priorities and tastes in mind. Step one in preparing to sell your home is emotionally detaching yourself from it and from the process. Try to think of your home as a commodity that can be "repackaged" -- by repairing, painting, cleaning, recarpeting, rearranging -- for the widest possible appeal.

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Make Sure Your Title Is Clear

2009-07-07T17:07:00.002-04:00

When a property is sold, the owner must supply the buyer with a good and marketable title to the property -- one free of any liens or judgments. Homes with liens or judgments are considered to have "clouds on the title." Those clouds can prevent the transfer of title, causing settlement delays, perhaps even canceling the deal. Make certain your title is clear and ready for transfer before you put your home on the market.

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Getting Your Home Ready

2009-07-07T17:05:00.000-04:00

Putting a home up for sale requires planning, some work and perhaps a small investment. Starting early, before your home goes on the market, will be key to getting it sold quickly at the price you want.

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After You List

2009-06-30T21:56:00.005-04:00

Getting your home listed, of course, is just the beginning. You and your agent will then begin work on a marketing plan and a time-table for implementing it. Your agent will help you decide about the best asking price for your home, based on current market conditions. He or she will also advise you about what you can do to improve your home's chances for selling quickly at the best possible price.

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When Is Compensations Earned?

2009-06-30T21:54:00.002-04:00

Although the commission or fee may not be paid until settlement, it is considered to be "earned" when your agent brings a "ready, willing and able buyer" to you, even if the buyer has been working with a different agent in the home search process.

A "ready" buyer is defined as a person who wants to purchase the home within a designated time frame. "Willing" means the buyer has signed a contract with terms agreeable to the seller. "Able" means the buyer qualifies for the financing required to purchase the home.

Once these stipulations are met, the listing agent has earned his or her commission. Still, the agent's work is not done. Following the contract comes all the work to get the transaction to settlement.

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Money Well Spent

2009-06-30T21:52:00.001-04:00

In addition to the compensation, the terms of your listing agreement will detail how long the contract will remain in effect and the specific services contracted for. A full-service agent or company usually:

Lists details about your home and listing agreement in the Multiple Listing Service (MLS).

Provides and prepares all forms to list the property for sale.

Educates the sellers on the sales process.

Fronts all advertising and marketing expenses.

Conducts analysis of the home in preparation for sale.

Prepares a home brochure and finance sheets for distribution as needed.

Assures that all buyers are at least pre-qualified, if not pre-approved for a loan, before making an offer on the home.

Negotiates all aspects of the contract, including: price, finance terms, contingencies, seller subsidy (if any), home inspections, etc.

Monitors various professional inspections, including pest, radon gas, home and others.

Sometimes agents will conduct all the work above, only to have the buyers' contract fall through. Then the process starts all over again, in hopes the sale will go through the next time around.

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Defining Compensation

2009-06-30T21:50:00.002-04:00

Your agreement will stipulate compensation by either a commission or fee. Buyers and sellers may not realize that there are no set commissions -- no "going rate." Real estate brokers cannot discuss between themselves how much they charge for commissions, nor are they allowed to set commissions. To do so would violate anti-trust laws and threaten a broker's license.

Traditionally, it's said that the seller pays the commission, yet some would argue that it's the buyer's loan that creates the cash to pay the commission. Either way, the funds brought to the table from the buyer's loan and the seller's equity pay the real estate companies involved.

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Understanding Your Listing Agreement

2009-06-30T21:49:00.002-04:00

Once you find an agent you want to work with, you'll sign a "listing agreement" specifying the commission or fee to be paid and other contractual terms. The agreement is not between you and the agent, however, but between you and the broker the agent represents.

By law, only licensed brokers are allowed to receive a brokerage commission or fee. The salesperson you work with (your "listing agent") will receive a share of the commission when the home sale goes to settlement. If another agent brings the buyer to the table, that salesperson (and his or her broker) will also receive part of the commission.

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How Your Home Listing Works For You

2009-06-30T21:46:00.004-04:00

Unlike many other professionals, real estate agents are only paid if they are successful -- if the home sale goes through. A lawyer who loses a case, for example, may still expect payment, as do doctors who may not be able to cure their patients. Real estate agents, however, receive no payment unless a home is sold and makes it to settlement.

Agents work many hours before and after a sales contract is signed, in hopes of receiving compensation at the end of the process. Because they want to serve clients to the fullest, most agents work on commission.

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A Note Of Caution

2009-06-30T17:17:00.001-04:00

Most real estate agents will run a comparative market analysis on your home before you list with them. They'll present their recommended price as part of an overall marketing plan in their sales presentation to you.

Don't make the mistake of selecting a real estate agent only because he or she came in with the highest market valuation of your home. Some unscrupulous agents will "high ball" the sales price simply to get your listing, knowing you'll eventually have to drop your price to secure a contract.
This doesn't mean you should automatically reject the agent who recommends the highest price. It simply means you should look closely at the how price was developed and at the overall marketing plan for getting your home sold at that price.

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Keep Your Values Straight

2009-06-30T17:15:00.001-04:00

When deciding on a sales price for your home, don't make the mistake of relying on its "assessed value" as a guide. The assessed value of a property is your local taxing authority's valuation of a home's worth -- it's seldom accurate. In fact, assessed values are often lower, sometimes much lower, than current market values, especially in areas where home prices have been rising rapidly.

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Stay Ahead Of The Trends

2009-06-30T17:07:00.000-04:00

A sound pricing strategy gets ahead of the trends. If you live in an area where home prices are dropping, it's a good idea to price a little below the price of the last comparable home sold in your area. On the other hand, if prices are on the rise, you can set your price just above the price of the last similar home sold and expect to get what you ask for

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Overpricing Can Lead To Underpricing

2009-06-30T17:04:00.000-04:00

It's not only important to find out what homes have been selling for, it's also important to learn at what prices homes go unsold. Overpricing is the single, most detrimental mistake you can make when listing a home for sale.

We've seen it time and again: Sellers sometimes list their homes at prices above the market, hoping some out-of-town buyer will make an uneducated decision. Other sellers want to overprice to give themselves lots of room for negotiating with buyers. In fact, these strategies seldom work to the seller's advantage -- their homes languish on the market while buyers compete for other comparable homes listed at reasonable prices. Overpricing sellers eventually have to drop their price, often below market, to regain the attention of buyers who've already written these homes off their list.

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Multiple Factors Determine Value

2009-06-30T16:59:00.003-04:00

A real estate professional has a variety of resources to draw from in deciding on a price that will get your home sold at top dollar. Here's what we would do to calculate your home's worth:

Evaluate your home -- its location, rooms and lot size.
Look at the condition and appearance of your home's interior and exterior. We can suggest inexpensive repairs or updates to help you get top dollar for your home.
Compare your home with similar properties in the area that are currently for sale or have recently sold.
Review your home's assessed value, its previous sales prices, average maintenance and utility costs, and local taxes.
Consider current market conditions, interest rates and lending criteria.
Factor-in local real estate trends, economic conditions and any local data that could make homes more valuable, such as job growth in the area.

Some of the items that should not be considered in a comparative price analysis include the original cost of the home, money spent for improvements, or how much cash you would like to net from the sale. While these factors are important to you, they have no bearing on the fair market value a buyer will be willing to pay.

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Setting The Right Sales Price For Your Home

2009-06-30T16:57:00.001-04:00

As a home seller, you want to get the highest price you can for your home. Remember, though, home buyers want to pay the least they can get away with. To attract their interest, you need to list your home at the right price -- its fair market value.

How can you know what the right price is? Ultimately, it's what someone else is willing and able to pay for it. Working with a professional real estate agent is the most reliable way to discover the true value of your home.

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Picking The Right Sales Agent

2009-06-29T20:24:00.002-04:00

An experienced real estate professional will help you handle all the tasks listed above, and many more. By selling with professional representation, your home will receive extensive market exposure through the Multiple Listing Service (MLS), which puts other MLS member brokers throughout your community and across the nation on-board, helping to get your home sold. But how do you go about selecting the right agent?

Here are some important questions to ask during pre-listing interviews with prospective agents:
What is the history and track record of your real estate company?

How does your firm help you attract buyers to your listings?

What is your marketing plan for my home?

How successful has this type of plan been in the past?

How will you keep me informed of the efforts you are making?

What do you want me to do to help sell my home?

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Picking A Professional To List Your Home

2009-06-29T20:15:00.002-04:00

Once you identify your specific home-sale goals, it's time to find a real estate professional who can help you accomplish them. Sure, you could attempt to sell your home "by owner." Many of our clients have thought about it, looking to save money in the process. Some have even tried it -- then came to us.

FSBO Or No?

Before attempting the For Sale By Owner ("FSBO") challenge, consider whether you have the skills, time and will to deal with all the issues you're likely to encounter along the way.

Do you have a marketing plan designed for the highest penetration of the buyer market?

Does it go beyond a "For Sale By Owner" sign or a three-line classified ad?

Are you up-to-date on the disclosure requirements, necessary documents, state and local laws?

Are you comfortable with letting strangers into your home, who haven't been pre-qualified by an experienced professional?

Can you be present for showings during the middle of a work day?

Do you have the necessary sales skills to highlight your home's strong points without being "pushy"?

Are you ready with "objection handlers" to help overcome buyers' concerns?

Are you experienced at negotiating the terms of a contract?

Can you help buyers find financing they can afford?

Will you know whether they can even qualify for a mortgage loan to back up an offer, should there be one?

Do you have an escrow company lined up to handle the settlement process?

How about a real estate attorney or settlement officer?

Do you have time to make arrangements for appraisers, inspectors, surveyors and others who need to visit the property before settlement?

Also consider that buyers who look at FSBO properties want to save money too. Knowing you aren't paying a broker's sales commission, they expect your price to be lower than comparable properties listed with brokers. In the end, you could end up putting a lot of time and work into selling your home with very little savings to show for it. And, according to recent studies, it's likely to take you 50% longer to sell your home.

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IDENTIFYING YOUR GOALS

2009-06-27T15:02:00.006-04:00

If home sellers share anything, it's the hope that they'll get the highest sale price possible in the shortest possible time. Yet, home sellers have other goals too. One seller may need to relocate on short notice. Another may want to "move up" to a larger or more expensive home. Still others may want to generate monthly income by providing financing to their home's buyers, or they may want to scale down to a smaller home and buy a vacation home too.

A successful home sale occurs when your goals as a seller match up perfectly with a buyer's goals. So, the best way to get started on your home sale is to clearly define your goals and priorities. Once you've done that, you can develop a selling strategy that puts your home sale on the fast track.

Identify Your Specific Goals

Spend some time thinking about and answering the questions below:
Why are you selling your home?
What sales price do you hope to get?
How much do you need to net (after closing costs) from the sale?
How quickly do you need to sell? (Days, weeks, months)
Do you have a settlement deadline?
Do you want to provide financing to buyers? If yes, how much? First mortgage? (list amount) Second mortgage? (list amount)
What items that might normally stay (convey) with a home (drapes, chandeliers, etc.) do you want to take with you? How much are they worth?

Would you be willing to sell the "non-conveyances"?
Can you afford to "fix up" your home for sale? If yes, what is the maximum amount you would want to spend?
Will you need to live in the home after settlement, renting it back from the buyer?
What other goals do you have regarding the sale of your home?

Establishing Priorities

Focusing on what you want most from your home sale will serve you well when the time comes to negotiate with a buyer. Rank your answers to the questions above from 1 to 10, with 10 representing the issue most important to you.

You've just completed a very important first step to selling your home. Refer to your priorities listing often as you go through the home-sale process. It will help keep you from being side-tracked by relatively minor issues so you can stay focused on what you're really trying to accomplish.

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RESALES: Hidden Advantages Of Previously Owned Homes

2009-06-23T21:36:00.003-04:00

Although many people prefer to buy new homes, the vast majority of buyers prefer resales. According to the National Association of Realtors, 75% of homes sold are resales.
When home buyers ask us about the merits of buying an "old" versus a newly built home, we show them how resales offer some of the best values in the market today. The news gets better when they see the wonderfully diverse resale selection of appealing styles and sizes in may locations and price ranges. Plus, when the owner goes to sell an "old" home, they have what most buyers are looking for.

Here are some of the advantages that make "old" homes so popular:

Size

Appeal Older homes often have more space inside and out than new homes. Inside, resale homes may have more square footage and higher ceilings; outside, resale lot sizes are typically larger.

Close-in convenience

Many resale homes are in older neighborhoods, which are closer to downtown business districts and shopping. New communities are often a distance away from cities and commute times may be much longer.

Cost savings

Resale homes generally are less expensive than similar new homes. One reason could be that resale sellers have more bargaining room than builders who must make a return on the high costs they recently paid for land and building materials. In fact, a NAR study found resale sellers accepted a median drop of $4,000 from their asking price while builders' median drop was only $500.

More green space

For tree lovers, resales are a big draw. Older homes typically have mature trees and plantings, unlike what's found in new neighborhoods.

What you see is what you get

There is no guesswork with older, established neighborhoods. Buyers can research and tour the schools, sample the shopping, and check out the neighbors. In a new-home subdivision, buyers might not want to live with the noise and dirt of construction, may wonder about future development, or deal with possible long bus rides to existing schools and little or no nearby shopping.

Lots of Extras

Many resale buyers cash in on "extras" the owner has already put in, which can save big money. Typical money-saving extras: fenced yards, decks, pools, play sets, window treatments and appliances.

New Maximum Limit For FHA, Conforming Mortgages In 2009

2009-06-23T00:51:00.001-04:00

The American Recovery and Reinvestment Act of 2009 reinstated 2008 loan limits for Federal Housing Administration (FHA) loans and "conforming" loans from Freddie Mac and Fannie Mae. Bear in mind, the limits vary by area.

The current limits are equal to the greater of 125% of the 2008 local-area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie -- except for designated high-priced areas. While the Housing and Economic Recovery Act of 2008 had placed the 2009 upper limit for high-priced areas at $625,500, the most recent legislation increased the 2009 cap for expensive areas to $729,750. These limits are set to expire December 31, 2009.

Deduction For Private Mortgage Insurance Good Through 2010

2009-06-23T00:49:00.001-04:00

In 2008, Congress extended the deduction for payments of qualified home mortgage insurance to homes purchased through December 31, 2010. (The opening date for the deduction is January 1, 2007.)

The full deduction is available to taxpayers with Adjusted Gross Income (AGI) not greater than $100,000, or $50,000 for married filing separately. Above those AGIs, the deduction is phased out and disappears completely for AGIs of $110,000 and higher ($55,000 for married filing separately).

In order to take the deduction, you must itemize deductions on your tax return.

Extended Tax Credits For Energy-Efficient Home Upgrades

2009-06-23T00:44:00.004-04:00

Again thanks to the American Recovery and Reinvestment Act of 2009, you can earn tax credits during 2009 and 2010 for installing qualified energy-efficient home improvements on your principal residence including windows and doors, roofs, insulation, HVAC systems, water heaters, solar energy systems and wind turbines. (Credits for such installations had expired at the end of 2008.) In most cases, 30% of your total investment can be recouped, but the total tax credit claim for the improvements cannot exceed $1,500 (the old cap was $500). Systems and appliances must meet or exceed listed energy use specifications and, in some cases, installation, site preparation and assembly costs may not qualify.

For an overview of credits available for selected home improvements, go online to http://www.energystar.gov./

Be sure to consult with a tax professional before purchasing to ensure your upgrades qualify.

Appliances

The Energy Efficient Appliance Rebate Program provides $300 million to state governments to distribute to consumers who purchase Energy Star-rated home appliances such as refrigerators, dishwashers, clothes washers, etc. Energy Star-rated appliances (look for the label) use 10% to 50% less energy than standard models. Not only can you get a monetary rebate on your purchase, these appliances help you reduce your utility bills. Again, see http://www.energystar.gov/ for more information.

Weatherization Assistance

Low-income homeowners are encouraged to make energy-saving improvements to their homes by the U.S. Department of Energy’s Weatherization Assistance Program (WAP). If you qualify through one of the local weatherization agencies that carry out the program in your area, an energy audit will be conducted on your home. The audit will measure your home’s energy usage and recommend the best energy-saving methods to employ, with weatherization services provided at an average value of $2,500 per home. Improvements could include such things as increased insulation, weather-stripping, new windows and doors, etc. Over one million home-owners are expected to benefit nationwide, with an average family’s estimated savings amounts projected to be about $350 per year in heating and cooling costs.

Forgiven Mortgage Debt No Longer Taxable Through December 31, 2012

2009-06-23T00:41:00.001-04:00

The Mortgage Forgiveness Debt Relief Act of 2007 changed tax rules so that when mortgage debt is forgiven by a lender -- as in a short sale, foreclosure or debt restructuring of a property -- the amount forgiven is not considered part of the taxpayer’s gross income and therefore not subject to income tax, as had been the case previously. The debt must have been incurred to buy or improve a principal residence (rather than a second home), and the exclusion only applies to indebtedness forgiven from January 1, 2007 through December 31, 2012. The excludable amount of debt is limited to $2 million or $1 million for married filing separately.

Improved First-Time Buyer Tax Credit Good Until December

2009-06-23T00:39:00.001-04:00

The American Recovery and Reinvestment Act of 2009 improved on an earlier tax credit available to first-time home buyers. The new tax credit is worth up to $8,000 (or up to $4,000 for married filing separately) for qualified buyers who purchase a principal residence after December 31, 2008 but before December 1, 2009. Qualified buyers are those who have not owned a principal residence during the previous three years.

Good news: Unlike the previous $7,500 tax credit, this new $8,000 incentive is a true rebate and does not have to be repaid providing the home continues to be your principal residence for at least 36 months. Qualified first-time buyers who purchased homes from April 9, 2008 through December 31, 2008 can still take up to a $7,500 tax credit ($3,750 for married filing separately), but must repay the credit over 15 years beginning two years after the purchase settlement/closing date. If the home ceases to be your principal residence before the credit is repaid, the unpaid balance becomes due in full. (If the home is sold, the balance is due to the extent gain on the sale is sufficient.) Both the $8,000 and $7,500 credits are "refundable" -- that is, if your tax bill for the year is lower than the credit amount you qualify for, you would receive the difference as a tax refund. The amount of the credit is limited to 10% of the purchase price of the home, up to the applicable dollar-amount limits. Those who qualify can claim the credit on their federal income tax return. The full credit is available to married joint-filers (or equivalent filing status) with Modified Adjusted Gross Income (MAGI) up to $150,000, and to single filers and married filing separately with MAGI up to $75,000. The credit is phased out and disappears completely for MAGIs more than $170,000 (joint filers and equivalent) or $95,000 (others).

Help For Loan Modifications, Refinancing

2009-06-23T00:34:00.001-04:00

In effect starting March 4, 2009, the Homeowner Affordability and Stability Plan involves two programs aimed at helping millions of homeowners who are making a good-faith effort to stay current on their mortgage payments.

1. Affordability

This program is designed to help 4 to 5 million working homeowners who have "conforming" mortgages (guaranteed or owned by Fannie Mae and Freddie Mac), who have been on time with their payments, but who have been unable to refinance to a lower interest rate because their homes have decreased in value such that their equity is less than 20%. The objective of this plan is to help these borrowers refinance into safer, more-affordable fixed-rate loans.

Features and qualifications:

Allows eligible homeowners to refinance their homes to a 15-year or 30-year fixed-rate loan according to Treasury Department guidelines.

Available for qualified principal residences, second homes, small rental properties.
First-lien loans must have an unpaid principal balance of $729,750 or less (for single-family homes). There is no minimum or maximum loan-to-value ratio for eligibility purposes.
Eligible homeowners must have sufficient income to make the new payment. Your lender (or loan servicer) can tell you whether your current mortgage is owned or guaranteed by Fannie Mae or Freddie Mac and whether you can qualify for this opportunity.

2. Stability

This program aims to help 3 to 4 million "at risk" homeowners who have high mortgage debt compared to income and/or who are "underwater" (with a combined mortgage balance higher than the current market value of the home). The primary objective of the plan is to help borrowers avoid foreclosure by modifying unaffordable loans to achieve a payment the borrower can afford. Delinquency is not required for eligibility. The government has set aside $75 billion in funding to support the program.

Homeowners can seek a loan modification from their participating lender (or loan servicer).
Your monthly mortgage payment must be greater than 31% of your monthly gross income.
If you have more than one mortgage on the home, only the first mortgage is eligible for modification.

Homeowners with total "back end" debt (which includes not only housing debt, but other debt such as car and education loans and credit-card debt) equal to 55% or more of their income will be required to agree to enter a HUD-approved counseling program (at no cost to the homeowner) as a condition for the loan modification.

The participating lender voluntarily lowers the interest rate so the monthly mortgage payment is no more than 38% of the homeowner’s pre-tax income. (Loan servicers owned by financial institutions that receive money from the second distribution of bailout funds will be required to make loan modifications according to Treasury Department guidelines. Loan modifications are considered on a case-by-case basis.)

The government will provide a number of incentive fees to lenders and loan servicers along with a partial guarantee initiative (insurance fund) designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall further.

The lender must keep the new lower interest rate in place for five years, after which it could gradually be stepped up to the conforming loan rate that was in place at the time of the modification.

The government will provide a number of incentive fees to lenders and loan servicers along with

a partial guarantee initiative (insurance fund) designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall further.

To provide extra incentive for borrowers to keep paying on time, the initiative provides a monthly balance reduction payment that goes straight toward reducing the principal balance of the loan. As long as a borrower stays current on the loan, he or she can receive up to $1,000 each year for five years. If you think you might benefit from either of these two programs, contact your lender (or loan servicer) or a HUD-approved housing counseling agency for more information.

New Market, New Programs Have Impact

2009-06-23T00:31:00.002-04:00

The local housing market is picking up. Here are some area trends we are watching that will create even more activity throughout 2009:

First-time buyers are coming back (with low-down-payment financing and payments less than rent).

$8,000 first-time buyer tax credit with no payback required.

Home sellers are making up for lower sales prices when they buy.

Parents and grandparents are helping kids buy their first homes.

Investors are picking up properties that create positive cash flow.

Refinancings are putting more money into homeowners' pockets.

HOUSING STIMULUS

2009-06-23T00:28:00.003-04:00

What Buyers, Sellers And Homeowners Need To Know Now

If you’ve been keeping up with the headlines over the past couple of years, you’ve no doubt heard about some of the new government programs and initiatives designed to help stabilize the nation’s housing market. From the Mortgage Forgiveness Debt Relief Act of 2007 to the Housing and Economic Recovery Act of 2008 to this year’s American Recovery and Reinvestment Act, the government has devised policies to ease the financial situation of those affected by foreclosure, to help people stay in the homes they own and to encourage home purchases by qualified buyers. Most recently, President Obama’s Homeowner Affordability and Stability Plan, announced in February, offers yet more opportunities for homeowners who have had difficulty refinancing their homes or are at risk of losing their homes to foreclosure.

INCENTIVES:12 Contract Options That Entice Buyers

2009-06-20T19:33:00.004-04:00

If you're selling in today's market, you want to make your house outshine the competition. Buyers are most likely to choose your house if it offers something special. Here are 12 ways to make sure you land a "Sale, Sweet Sale."

A Spoonful Of Sugar

1. Offer a warranty.

Purchase a buyer's home warranty to protect against future problems.

2. Help with closing costs.

Cash-poor buyers concerned more with out-of-pocket costs than monthly payments will especially appreciate this one.

3. Consider financing help.

Provide seller financing or buy down the buyer's mortgage rate for the first year.

4. Help with utilities.

Pay some or all estimated utilities for 6 or 12 months.

5. Help with fees.

Pay a year's condominium or homeowners association fees.

6. Pre-pay memberships.

Buy a one-year pool or community golf club membership, cable TV subscription, or other recreational activity.

7. Consider a moving allowance.

Pay the buyer's documented moving expenses, or provide an allowance toward moving costs.

8. Treat them to window treatments. Offer redecorating cash for new carpet or drapes.

9. Mow down any objections.

Buy a lawn-maintenance service for a year, or offer a riding mower if the lot is large.

10. Give them a dock on the bay.

If you live in a waterfront community, offer to rent a boat slip for a year.

11. Reimburse buyer the cost of points.

This is often a double benefit for buyers, who save both on the points themselves and on their federal taxes. The IRS now allows buyers to deduct the cost of seller-paid points as a Schedule A mortgage expense.

12. Price your home below comparable properties.

Prove your home's good value by having an appraisal done and setting the price below the appraised amount.

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TAX MOVES: Seven Smart Strategies For Today’s Tax Game

2009-06-19T20:35:00.004-04:00

Major tax law changes enacted In 1997 can mean huge tax savings if you play the game right. Here are seven smart ways you can use to take advantage of Uncle Sam's latest tax breaks for homeowners:

1. Sell Your Current Home

Own and live in your home at least two of the last five years -- then sell it. You'll owe absolutely no tax on the profit (capital gains) for gains up to $500,000 (if married filing jointly) or $250,000 (if filing singly). There's no longer a need to wait until you're age 55 to sell or at any age to "roll over" your profit by buying a home that costs at least as much as the home you sold.

2. Retire On A Budget

Now when you move, you can replace your old home with one that fits your needs and your budget. Perhaps you want less house because your children have left the nest, or you've retired or there's been a divorce. Under the new tax rules, you can quit worrying about paying a hefty capital gains tax when you scale back.

3. Relocate

Without Renting Before, people who moved to lower-cost-of-living areas had three choices: (1) convert the old home to a rental unit until moving back; (2) sell the old home and buy a "mansion" in the new town to defer paying capital gains tax; or (3) sell the old home, buy a similar-size home in the new town or rent a home and pay capital gains tax. Now, those who transfer can sell a home as often as once every two years and still claim the capital gains exemption on the profits. There is even a special exception to the two-year rule if you must sell your home due to a change in place of employment. This helps families that have frequent job-related moves to different parts of the country.

4. Take Your Freedom Overseas

If your family follows a job to a foreign land, you can sell your home here before you leave without rushing to purchase a new home immediately. Then, when you return, you can find a home at your convenience that fits your current needs, rather than trying to squeeze back into your old home before you can sell. If you have already been away, but lived in your old home for two of the last five years, you can still benefit from the tax law change if you sell now.

5. Selling Serially

Young families and those inclined toward fixing up can buy a home, improve it, and sell it again two years later at a profit without paying taxes on the gains. Repeating the cycle is now a good way for new homeowners to build equity toward the dream home they want. Also, investors can buy a property, rent it out, then convert it to their principal residence; live there for two years and then sell it, keeping the profit. However, depreciation allowed on the rental after May 6, 1997 will be taxed at 25%.

6. Vacation Villas

Capital gains taxes on summer homes, ski lodges and other second residences now can be avoided if you move in for two of the five years before the sale. First, claim tax-free profit when you sell your main home. Then move into your vacation home and make it your primary residence for at least two years. When you sell the vacation home, you can pocket those profits, too.

7. Try A Tax Deferred Exchange

Section 1031 of the Internal Revenue Code allows property owners to exchange one qualified property for another without owing any tax. Let's say an investor has a property with several small rental units. The investor can exchange that multi-unit property for a large house, which should be rented out for at least a year. Then the investor can move into the house and convert it to a primary residence. That way, any gain from both the multi-unit property or the large house is tax free, except for rental depreciation after May 6, 1997. Note it is necessary for a qualified intermediary to handle a 1031 exchange transaction.

Here's some helpful advice on record keeping: Even though most sellers can now buy up or buy down with little worry about tax implications, profits that exceed limits are taxable in the year of sale. And some states are continuing to tax capital gains from home sales. So don't be tempted to throw away receipts you collected to help lower taxes on capital gains. Your old receipts can help serve as proof of capital repairs, pre-sale fix-ups and other expenditures that reduce your gains and lower your taxable profits.

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Strategic Pricing

2009-06-19T19:47:00.001-04:00

Setting the best price to list your home is part science, part art. There are several aspects of the home’s value we consider when making pricing recommendations.

1. Comparison.

Where does your home fit in the marketplace? It should be priced to be competitive with comparable homes in the same area.

2. Negotiation.

The price should allow some space to make concessions in order to close the deal.

3. Return.

The listing price should be set so you net the most money possible from the sale.

4. Target.

Ideally, the price is adjusted to the top of a multiple listing category, so the home’s features compare favorably with lower-priced homes in the range. (If it is placed at the bottom of the next higher price grouping, the higher-priced homes will look better and sell more quickly.)

Other Factors

Unfortunately, what you paid for your home is not a factor in determining its market value. Neither is what you would like to get out of the home. Some home improvements you’ve made may add to the market value, however. Having the home in picture-perfect condition from the first day of the listing may also increase the value of your home. But mostly, these will help you sell faster, and that could mean a sale price close to your asking price.

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Recognizing Limits

2009-06-19T19:44:00.001-04:00

Don’t make the expensive mistake of remodeling your house just to sell it faster or at a higher price. You’ll waste your money, frustrating your ability to move into a home that better meets your own needs. Put your current home on the market in clean, well-cared-for condition, but save your money to redesign or decorate your next, more-spacious house.

Also, be careful when remodeling or expanding your home that you don’t over-improve. Remember, your home’s value reflects (and is limited by) the value of homes in your immediate neighborhood.

House Or Community?

For some homeowners, the community or lifestyle they enjoy in their current home is a great reason to stay put. You can’t buy a sense of community -- it’s something you develop over the years. If you are unwilling to trade familiarity, friends and neighborhood for a larger home in another area, then remodeling could be the best solution.

As you consider remodeling, however, be sure your current neighborhood can carry the evolved house. If yours is the only house in the community that has been bumped out or up, it may be difficult to sell eventually, and you’re not likely to recoup much of your remodeling investment.
Don’t forget to check local zoning laws and homeowner association limitations if you intend to add on to the dwelling. If your house already takes up a large portion of the lot, local zoning may limit how much more house you can build.

As you consider improvements to your home, keep in mind that landscaping and exterior appearance will attract buyers to your home. Once they get inside, they’ll be looking for functionality, durability and convenience.

SELL YOUR HOUSE NOW

PRICING: Beat Your Competition To The Contract

2009-06-19T01:31:00.008-04:00

To sell your home quickly for top dollar in today’s market, the best move you can make is to price the property at its current market value. When you set the right price on your home, you have an edge on your competition.

Here’s how setting the right price helps you:

You tap the pent-up demand of buyers who have already seen everything on the market and are waiting for new home listings.

You target the right group of prospects -- the ones who can afford your home and are looking at similar properties.

Your home will compare favorably with other homes potential buyers see because yours will look better than overpriced homes in your category.

Perils Of Overpricing

Overpricing your home gives the advantage to your competition -- the other homes on the market. The buyers you want to attract won’t see your home because they are only looking at homes listed in their price range.

Prospective buyers who do see your home realize they can get a better deal elsewhere. If it’s your home they want, they may choose to wait until you lower the price. And if you do reduce the price, other potential buyers wonder why the home has been on the market so long.
The right price is determined by the size, condition and location of your home, what comparable homes are selling for at the time you list yours, and the balance of supply and demand in your area.

SELL YOUR HOUSE NOW

SHOWCASING: Set The Stage For A Quick Sale

2009-06-19T00:10:00.006-04:00

Remember the last time you visited a new home development? How did you feel touring the model? Usually, pleasant memories come to mind about how well the home looked. That’s because it was "showcased" properly.

You can do the same thing when you prepare your own home for sale.

Home showcasing is not about remodeling, fixing up or making your home look sterile. Instead, it focuses on amazingly simple steps to make your home show like a model without spending a lot of money. The secret is setting the stage, which helps potential buyers imagine themselves and their families at home in your "home for sale."

Strip Down And Build Up

The first step is to clear the set. Take out extraneous furniture, decorations, pictures, etc. Take each room down to its most basic form, opening up the living space as much as possible. Then build it back up to the way you want it to look, as simply as possible, and without clutter.
Make the strip-down process simpler by stowing packed boxes in a staging area like the garage, or by renting a storage space to hold extra furnishings while your home is on the market. In essence, pack up early.

Props

When building the set, try to make each room tell a story. Help potential buyers see themselves in each room. A clever arrangement of props will make it easy for buyers to imagine writing a letter at the desk in the kitchen, clicking on the television and enjoying a bowl of popcorn, turning on the stove and preparing a holiday repast.

Themes for a room can help you narrow down how to display it. You can, of course, stage the room as you use it now, or choose a particular motif, i.e. Southwestern, country style, international. Or you could pick an activity to illustrate on your stage, i.e., relaxed office or library, gourmet cooking, resort or vacation living. What would you like to do in that room? Place the props needed for those activities throughout the room.

Lighting

Lots of lights open up a room and gives it a larger appearance. If you’ve been using 50 watt bulbs, move up to 100 watts. If a large living room has only one lamp, move in another. Open curtains. Add mirrors. When it’s being shown, the home should be bright. Brightness gives a showy feel. And your home is now center stage!

Do Your Homework

Ask what buyers are looking for in your community. What are they saying about the homes they don’t buy? And what is it about the homes that are selling that makes them so popular? By determining your ideal target buyer, you will better understand how to merchandise your home. Our experience in your specific neighborhood can help you answer all these questions and more.
Aroma TherapyAlmost as important as how a home looks is how it smells. Ask a close friend to walk through your home -- objectively -- and take a whiff here and there. Are there any offensive odors? Is it too perfumy? Too drab? Stale? Musty? Are there pet odors (which should be fixed -- not covered up!)? What can you do to impress potential buyers with aroma therapy?

When it comes time to sell your home, you’ll want to work with a real estate professional who knows all aspects of the selling process -- including showcasing.

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UPSCALE RESALE: Seven High-Cost Mistakes To Avoid

2009-06-18T23:50:00.007-04:00

If you are selling an above-average-price property in an upscale neighborhood, you know your home is unique. You expect an upscale property to be marketed with the same professionalism you demand in every aspect of your life.

Keep in mind, buyers who can afford your home lead busy lives like you and look for a hassle-free sale. Move-up buyers don’t need to buy now, so they wait and watch for that just-right home. It might be yours.

Unfortunately, even sophisticated homeowners sometimes make mistakes when they go to sell their upscale homes, netting less than the top-dollar price it’s worth. Or worse, the home just doesn’t sell at all.

Here are seven common pitfalls to avoid:

1. Underestimating The Competition

Even though your property may be one-of-a-kind, there are other homes on the market being shown to the same potential buyers. Before you list your home, we’ll give you an “armchair tour” of comparable properties listed for sale in your price range.

2. Overestimating The Value

Features of interest to today’s buyers include location, house design and size, privacy afforded by the lot and acreage, special amenities, type of community, and quality of local schools and facilities. By avoiding the over-pricing trap -- which often results in repeated price reductions making the property seem distressed.

3. Relying On Location

Homes in the higher price ranges need to look magazine-perfect when shown to potential buyers. Today’s market demands that everything -- doors to floors, fixtures to walls -- be sparkling clean. Even minor faults loom large in what is expected to be a perfect home. In short, fix up, repair and polish like never before.

4. Over-Improving

Also, avoid over-individualizing the house or grounds. People tend to buy homes they see as an image of themselves. A home that’s too individualized with strong, personalized decorating won’t sell quickly. Avoid dramatic custom flourishes that may not suit many other people. Some buyers will mentally calculate the cost of removing the customization and deduct the cost from their offer.

Although you want your home to look its best, spending thousands of dollars to redecorate will not likely help it sell at a higher price -- it may sell more quickly, though.

5. Making Your Own Marketing Decisions

The marketing plan for your home needs to reach out to the right potential buyers. We offer a first-class marketing campaign that requires careful advance planning to allow time for reserving appropriate advertising space, top-notch photography, brochure production, even special events, such as a top-broker open house.

Many homeowners overestimate the value of one-shot marketing such as newspaper or TV spot ads. What typically works better is advertising with a longer “shelf life,” in upscale publications, for example, where ads are directed at an ideal niche.

6. Playing Hard To Get

No home sells sight unseen. Working together, we can create a plan to show the house to qualified prospects without disturbing your schedule. Details, such as the security system or guard dogs, may need to be worked out.

7. Being Inflexible

You have a unique home, and you’re looking for a unique buyer. Chances are that buyer will have special needs and concerns. The most likely buyer will probably need to sell a current home to buy yours. Flexible terms, possibly including some extra time to settle on the old home, will help sell your home quickly at the right price.

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CONTRACT: Who’s Offering What, When And How For Your Home?

2009-06-18T23:30:00.005-04:00

The exciting moment when an offer to purchase your home comes in can also feel a little overwhelming. One common first impulse is to ask "How much are they offering?" While price is an important factor, it's also important to sit back and look at the big picture when negotiating a sale. Consider the following:

Buyer's Financial Situation Is the buyer qualified? What is the buyer's annual income and employment history? How much down payment and closing-cost cash is available and what is its source? What type of financial debt is there? Car loans? Credit cards?

Financing Method

Are the loan type and interest rate specifications realistic for current economic conditions? Is the length of time requested to obtain a loan realistic? Forty-five days is often considered a typical time frame. It allows enough time to process papers, but also allows you to put the home back on the market promptly if things fall through.

Your Costs

How much does the buyer want you to contribute toward closing costs? What will your net proceeds be? Add up any points, taxes or fix-up expenses requested and deduct them from the contract price to determine if your final profit is what you need to make your move.

Your Calendar

Does the buyer's proposed settlement date give you enough time to select your next home and obtain financing? If you can't move to your next home promptly at settlement, can you rent back from the buyer to stay in your home a while longer?

Contingencies

Must the buyer sell a home before buying yours? You may not have the time to wait while they sell. What add-ons does the buyer want? Curtains, lawn equipment, swing sets? All of this can affect your final net proceeds, or be used as bargaining chips, or both.

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SELL OR REMODEL: How To Get The Most For Your Money

2009-06-18T17:17:00.008-04:00

Do the walls seem to be closing in on you? Are your cupboards and closets overflowing with stuff? Can you see more toys than flooring at your feet? If so, you need more space. And your choices are remodel your home, move to a larger one, or move to a home that you want to remodel.

How can you decide which approach is best for you? Start by considering your priorities. If you are basically happy with your current location, the relative cost of your options is likely to make the decision for you.

Wish List

Take an inventory of your current house to determine whether remodeling will work for you. Look at each room. Do all of them need help? If so, remodeling may be too expensive and a move might be your only practical choice. If just one area of the house needs work that can be accomplished by bumping out a wall or adding on, then remodeling may be the correct move for you. Consider what you would have to do to the basic structure of your house to arrive at your dream home.

Cost

How much money can you afford to spend? Would you need a construction loan to remodel, or would you take money out of your home’s equity? If you must borrow money to remodel, will the cost of the loan, combined with your existing mortgage payment, be more than the monthly payments for a new home with the space and amenities you want? Moving may be easier and less expensive.

Calculate how much it would cost you to replace your current home with one that meets your needs. What improvements could you make to your current home for the same investment? Will a new addition of, say, a master bedroom suite, be enough to satisfy your desire for a new look and more space? Or do you need more living space all over the house?

Is your desire for newer amenities the driving force for a new home? If you’re looking to modernize wiring and plumbing or increase hi-tech capabilities, it might be better to move into a house that already has these features.

Payback

Most homeowners start remodeling with the kitchen or a bathroom, both of which can cost a fair amount of money to upgrade but also show better-than average payback at sale time. Will it be a worthwhile investment? The answer depends on the type of payoff you’re looking for.
If you decide to remodel, don’t expect to recoup the funds spent on home improvements when you eventually sell the property. Some remodeling projects are likely to be far more financially rewarding than others, yet few yield a 100% return. If you can keep costs down, however, perhaps by doing some of the work yourself, your project might pay you back in full at sale time, maybe even show a profit. Remember, though, the primary reason for remodeling is to meet your living needs, not to make your house worth more.

The point of some projects is simply to bring a house up-to-date. Remodeling a 1960s-era kitchen would make your home more competitive (at sale time) with 21st Century homes. A new kitchen would almost certainly increase your home’s value compared with neighborhood homes that haven’t been upgraded.

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TAKE ONE: How To Package Your Home To Sell

2009-06-17T23:22:00.009-04:00

After a full day of house hunting, even the hardiest shopper has difficulty remembering each home visited. A selling display featuring your property's benefits is a great way to be sure your home stands out in the shopper's memory. We've used the following marketing strategies to successfully sell many homes. They could work for you too!

Creativity Counts Your home's memory points can be mounted attractively on a poster or in a looseleaf binder or photo album and displayed on your dining table or near the front door.
Home shoppers appreciate a memory-jogging take-home flyer, summarizing the display information for later study. The flyer should always include the property address, price, brief description and agent's name and phone number.

Focus On Features

Each home will have its own outstanding features. When we talk about a marketing strategy for your home, we will consider what to include in your display and on the flyer. Here are some worthwhile ideas:

Capital improvements.

Include project description, year completed and your investment in the improvements.

Upgrades or replacements.

List new appliances, paint, wallpaper, attic fan -- anything you've accomplished that buyers won't have to do after move-in. Mention special features and benefits.

For example: "Easy-care kitchen range with self-cleaning oven, sealed burners, electronic ignition, digital controls; 1992."

Energy-saving features.

Cite money-saving extra insulation, high-efficiency heating/cooling system, thermal double-pane windows, etc.

Average annual utility bills.

Also mention affordable property taxes. Buyers want to know!

Floor plan.

Show room arrangement and dimensions. New-home builders and renovators can often provide floor plans, or one can be drawn for your home.

House illustrated.

Picture your home in your display and on the flyer. Architect's renderings may be available from the original builder.

Gardening highlights.

Sketch the landscaping plan to show the work you've done. Identify trees and plants, especially if you have unusual ones. Provide photos of bushes and flowers in full bloom, if you're selling off-season.

Pre-listing home inspection report.

Impress buyers with proof of your home's excellent condition. Show receipts for correcting any problems the inspector noted.

Neighborhood map.

Highlight nearby schools, convenient transportation, shopping, parks, libraries, hospitals, and any other amenities or points of interest. Your kids can help color the map!

School data.

Feature excellent schools. Mention honors and awards, good student-teacher ratios, sports and athletics, drama presentations, and special programs (i.e. for learning disabilities or English as a second language).

Neighborhood information.

List neighborhood association dues (if any), annual community events, Neighborhood Watch programs, and the like. If yours is a friendly, quiet neighborhood, be sure buyers know it!

Community services.

Include helpful information such as days for recyclable-material and bulk trash pick-ups, availability of swimming pools, children's summer day-camps, adult education, and so on.

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Proven Tips To Turn An Offer Into A Solid Contract Fast

2009-06-17T22:45:00.009-04:00

When the bid is presented to you, listen to the offer, even take notes -- but don't respond until the presentation is complete. You have three choices:

(1) accept the contract as presented
(2) reject the contract
(3) make a counteroffer.

Most often, sellers choose the third alternative. The choice is yours, but we can advise you every step of the way.

Art Of The Counteroffer

If you find some items in the proposal unacceptable, it's time to negotiate. It's also time to call on our experience and training. This is when our professionalism really pays off. Don't delay. Often, time is of the essence.

Avoid delays.

Although you may want more time to think over the offer, be aware the buyer could withdraw the offer any time before you sign it. The best time to decide what terms and price and timetable you will (or will not) accept is while preparing your house for sale, so you can respond quickly when a contract is presented.

Consider seller-paid points.

It's good to know before you begin negotiating that paying points for your buyer's loan is a powerful double sweetener. That's because seller-paid points save the buyer out-of-pocket cash, AND serve as a tax deduction for the buyer.

Do it in writing.

Make your counteroffer in writing on the original contract form, initialing changes you propose. Contract negotiations may go back and forth several times, with each party giving and getting something each time as you zero in on common ground. Don't negotiate by phone and, even if it looks messy, don't retype the contract as long as it's legible. Something could get left out or inadvertently changed.

Consider a contingency kick out. If the buyer offers a contingent contract, you could consider including a kick-out clause. The clause allows you to accept another offer after a stated time, such as 45 or 60 days, or requires the contingency be removed within 48 to 72 hours.

Occasionally, sellers require a higher sale price when accepting a contract contingent upon the buyer selling their present home. Often, a home-inspection contingency is added by the buyer, so having an inspection before you list your home can prevent costly repair surprises after the contract is negotiated.

Remember, everyone has the same goal: you want to sell, the buyer wants to buy.

SELL YOUR HOUSE NOW

HOME SELLER: How To Put Your Sale On The Fast Track

2009-06-17T21:14:00.015-04:00

It's every home seller's dream -- a fast sale. In today's market, crossing the finish line first, fortunately, isn't a matter of luck. To win the home-sale race, you have to stay ahead of the pack. Price the house right, market the house competitively, and make sure the house is in move-in condition. Here are 3 key ways you can get your home on the home sale fast track:

1. Price To Sell

Don't over price. A nationwide survey of the National Association of Realtors found homes that sell within four weeks of the initial listing sold for close to the original asking price. Homes on the market for up to six months sold for about 7% less than the asking price. Listings that languished for more than six months sold for 15% less than the asking price. Experience shows: a too-high price results in a slow-to-sell home.

Expertise pays off. This is an area where our neighborhood expertise pays off. By performing a competitive market analysis, we can help you determine the best possible price--one that puts the most money in your pocket and gets it sold fast. We'll study listing and selling prices for similar homes in your neighborhood and compare your home's special features, improvements and condition. Interest rates, local economic trends and the availability of homes for sale in your area will also affect your home's value. The feedback we glean regularly from home seekers helps us keep our sellers informed of what today's buyers want and are willing to pay.
Be realistic. The more realistic the asking price, the sooner your home will sell. Unrealistic prices, on the other hand, are the major cause of "shopworn" listings, causing potential buyers to wonder if something is wrong with the home beyond price.

2. Results Marketing

Create a marketing plan. Once you've established a selling price, the next step in your fast-track strategy is a maximum-exposure marketing plan. An effective marketing plan can include:

Tours to familiarize other agents with your home.
Showing your home to qualified buyers.
Advertising your home where it counts.

Offer buyer incentives. For example, sellers can help with closing costs, provide a home warranty, give allowances for carpet or draperies, or pay utilities or lawn service for a limited time. Lowering cash barriers to the purchase will significantly enlarge the circle of potential buyers.

3. Showplace Condition

Move-in condition. To tempt a buyer, your home has to be inviting. Today's buyers generally don't have the time to do their own fixing up, so for maximum appeal your home must be in move-in condition.

Focus on curb appeal. First impressions really do count. Inside your home, recognize that living condition is different from showing condition. Prospective buyers want to see your home in near-perfect condition, even if that's not the way they'll keep it once they move in. Make your home a "showplace" and you'll soon be taking a victory lap after a fast sale.

SELL YOUR HOUSE NOW