Making the Decision To Sell For a Better Price Vs. a Faster Sale

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There are different approaches to selling a home and depending on your goal a couple different ways you can go about achieving that goal.  For homeowners looking to sell quickly so that they can relocate for a job, for instance, the option to sell as quickly as possible would be a viable one.  For families who have invested in their home for the long haul and had hoped to carry this investment through to the next property, hoping to maintain equity in their asset – selling with price in mind seems the better choice.  

Either way, as we are in a current economic downturn that has lasted more than several years now, it is no secret that selling will not be as easy as it used to be.  By following some of the strategies listed below, you can count on an edge over other sellers who many not be savvy on the ins and outs of selling successfully.

Selling Your Home to Yield a Better Price

PRICE YOUR HOME REALISTICALLY.  
The single biggest mistake sellers make during a soft market is to price their home too high.  Working with me we will investigate market trends in the immediate vicinity of your home.  In this link you will find information regarding a CMA (Comparative Market Analysis). As always I am happy to supply you with a personal CMA to gain an in-depth look at what other sellers are selling like kind homes for in your area, average Days-On-Market statistics, housing values and more.  

SHOW OFF THE HOUSE.  
Very surprisingly, a significant number of sellers have no idea that they should prepare the house for sale by highlighting its attributes.  Beginning with curb appeal, then the entrance of the home and finally throughout the rest of the space – any and all noteworthy features should be highlighted.  The home should be attractive; everything in working order and it should be set up in a way that potential buyers can imagine themselves living in the home.

RESOLVE ANY ISSUES.  
Taking care of any outstanding concerns with the home, whether functionally or aesthetically, is a sure-fire way to get a better price.  Start with the major issues and then work your way down.  Unless you are willing to accommodate the price of repairs on a major problem such as a leaky roof, ineffective plumbing or an old furnace – resolve these issues. Remove all clutter that is in plain sight and “depersonalize” the space so that buyers can imagine their own things in the home.  A fresh coat of paint and replaced carpeting in neutral colors can go a long way as an effective selling tool.  Remember, the less a seller has to do once they move in, the better price you will achieve.

Selling Your Home Faster 

MARKET YOUR HOME EFFECTIVELY.  
Anyone can put a house up for sale – but not everyone can get the word out and market it as effectively as needed to sell it fast.  One of the traits of a successful Realtor is going above and beyond the traditional methods of marketing real estate and actually selling the home.  Working outside the box will have a huge impact on your success – and it goes without saying that the more people know about your listing, the more likely it is to sell.  

BE WILLING TO GET CREATIVE.  
One of the best advantages you can have over other sellers is to realize that it is a buyers market at the moment.  If there are issues that you cannot resolve, be prepared to offer a rebate for the amount of repairs. Be wiling to contribute to closing costs – a feature of FHA loans – financing that many homebuyers are tapping into these days, home warranties are also helpful.  If you have anassumable loan, communicate it to the prospective buyer as this is an excellent tool to help sell quickly.  Provide as many amenities as possible so that the home is move-in ready; leave appliances that are already hooked up and include as many appliances in the deal as possible.  Some sellers even offer to pay the first year’s homeowners’ insurance.

REMAIN FLEXIBLE IN YOUR EXPECTATIONS. 
If your primary goal is to sell your home as fast as possible, one possibility is auctions.  Though not the best way to yield the best financial return on the sale, auctions definitely provide the peace of mind that your home is sold almost instantly.  There are some disadvantages to auctioning a home – and other than price they are mostly restrictive to the potential buyer.  You must be very clear on your contract that the sale is “as is” since there will likely be no time for inspections.  Maintaining buyers’ expectations can be difficult in an auction but on the other hand you can present your home and expect an answer almost immediately.

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Not sure which approach you want to take?  Now that you have some tools and techniques – making the decision based on your needs should be an easier one.  Keep in mind you can also try to accomplish both, of course.  Regardless of the choice you make, it is essential to have a solid team backing you and one such pivotal member of your team will be your Realtor.  Be sure to choose a Realtor with whom you can feel comfortable, trust to take on the approach you feel is best for you – and one that will not be afraid to be honest with you in all ways to ensure the most success.

With So Many Foreclosure Flops, the Best Opportunity for 2012 Lies in Flipping ‘Em

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Most people these days are wary of making any investments in the real estate industry until the financial situation improves – however, with some time and effort the current gloom and doom outlook need not be.  For the right investor, seizing opportunities that lie in REOs (Real Estate Owned properties) and making improvements upon them could be the perfect solution to keeping within the real estate arena yet doing so with considerable less risk. Here, we’ve put together some basics on what to consider when looking at a property to flip.

Assess Your Budget

Like any investment, purchasing a property with the intent to put more money into it to improve upon and correct existing problems, needs to be done with a well thought out plan.  The very first thing to consider is what budget you can set aside for this endeavor.  Keep in mind that many times a home that was previously owned by private owners and then subsequently foreclosed, has a chance to have hidden “surprises” and structural problems that are unexpected.  When you are assessing your budget for a flip project, be sure to include an extra margin amount for those sometimes lurking beneath the surface and unforeseen expenses.  

Review the Property

 When looking at potential flip opportunities, we strongly suggest having a building inspector review the property for a clear picture of what you may be getting into.  The types of  homes that are ideal for flipping are the ones that simply could use a bit of updating; new floors, updated kitchen appliances, fresh landscaping.  If what you come across are systemic problems, like bad plumbing, a weak foundation or an inadequate roof, it is best to steer away from that property.

Make a Plan

Many novices doing a flip for the first time make the mistake of not researching the steps needed and also failing to create a clearly outlined plan of action.  When you embark on a flip knowing all the potential costs, having identified the vendors/suppliers you prefer to work with for the scope of the project and you know exactly what you want to change versus what you want to leave as is – the success quotient is much higher.  It goes without saying that a project of this size without a plan of action is a recipe for disaster.

Be Disciplined
A lot of homebuyers who have ventured into property flipping recount having slipped out of their budget or letting the time frame and schedule lag significantly behind.  It is very important not to steer away from your original plan, as much as possible.  There will be times when you will have no choice but to handle something you hadn’t planned for in the first place, but generally, you will need to be vigilant about budget and schedule.

Choose Vendors Wisely
A very common mistake committed by inexperienced self-contractors during the process of fixing up a home for resale, is that the vendors and suppliers they choose are not certified or qualified with enough experience.  While it may be tempting to hire the lowest costing service providers to handle your home improvement tasks, doing so can end up disastrous and even cost you thousands of dollars.  This holds especially true for the larger improvements made to a property, such as a basement finishing or a kitchen/bathroom extension and remodel.  The old adage “you get what you pay for” is one to be taken seriously when it comes to flipping a property and hiring qualified subcontractors is an investment within your investment that you can’t afford to ignore.

Be Realistic
Finally, when putting your property on the market after you’ve made all the necessary improvements, be careful not to overestimate the cost.  By remaining realistic when pricing the property, you will most likely ensure serious buyers considering your property.  Inflated prices will only hurt your chances to sell within a reasonable profit.  Another thing to remember when putting up the home for sale is to be open with potential buyers.  Being forthcoming about the circumstances, your involvement in fixing up the home and in what capacity it was purchased – will create goodwill with your potential buyers and even open up the door for more successful flips in the future.
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Transformation of properties, in order to improve and increase their resale value has been a phenomenon long-standing, however during the last decade or so the occurrence has multiplied.  Especially with the number of foreclosures listed these days, now is the perfect time to buy and hold, or better yet, flip the property and make a handsome profit on it in the process!

With Rates as Insane as They Are Now, You’d Be Crazy Not To Buy NOW

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Together with Adam Moshofsky from Mortgage Express, I wanted to share with you some insight into the current rates available on the market and how exactly they are impacting the market in general plus buyers specifically. Most of us have not seen rates this low in our entire lifetimes. And though our parents and their parents dealt with another financial picture during their prime years, anyone in our generation that is not stepping up to take advantage of this HUGE opportunity is downright crazy!

Achieving the American Dream

Some lending programs, like those centered on FHA loans, have great buyer concessions on top of the already low rates we are seeing in the market today. When you combine the very reasonable and obtainable 3.5% down payment required for FHA loans with today’s rates and incredibly low housing values – you get the magical combination spelled A-M-E-R-I-C-A-N D-R-E-A-M. This is a dream that has become a reality for so many Americans who otherwise may not have been able to buy a home.

More Money In Your Pocket, More House and More Long-Term Savings

You cannot beat the market right now with the kind of amazing deals buyers are getting these days. Now, more than ever, buyers and consumers in general are far more financially savvy than their parents the baby boomers or hipsters were. Most families are making responsible financial decisions, following programs introduced by now-famed financial advisors that preach being debt-free is the new “in thing”.

One of the best ways to secure long-term financial freedom is to get your hands on a solid investment that you know will provide long-term returns. There is nothing better than a good home, in a good neighborhood where home values are significantly higher than other areas. The phenomenal chance to own more house, while paying less and saving more is not going to last forever. Of course we do expect housing values to rise eventually and when they do, if you were one of the savvy consumers who chose to seize this once-in-a-lifetime real estate opportunity – then you will experience the best returns. Not only will you have paid off more of your mortgage in less time with the same payments but you will also end up with a better home.

When Rates Changing Weekly, Payment Amounts Also Change

Just a few short weeks ago when mortgages were being offered at an average of about 4.25% for a 30-year fixed rate mortgage, monthly payments were about $70 higher on average for the typical $250,000 home. With savings like these, homeowners can expect to lock in major benefits in the long-run by either using that extra cash where most needed or paying that much more toward their principal and drastically reducing their loan term and finance charges. Here is a neat amortization calculator that shows you just how making extra payments will impact your bottom-line.

It is for this reason that shopping for a very low rate when you know they are changing from week to week and day-to-day is the smart way to go. For those buyers who locked in their finance rate a few weeks ago, the payment is higher than based on today’s rates. Though you can argue that waiting is a good idea in case rates plummet further, reality is that they are more likely to climb back up rather than go down further. The moral of this story? Lock in your rate now, buy your dream house now, don’t let it become a situation of “almost buyer’s” remorse.
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Any way you cut it – if you are even remotely in the market to buy a home you owe it to yourself to call a meeting with either Adam or myself to see how and where you stand in this unbelievable market. Things will not last like this indefinitely so before you live to regret it, at the very least you should find out the ‘what if’ of buying right now for you in your situation. Buying a house has never been cheaper. In fact, renting is a whole LOT more in many markets! Are you sure you want to miss out?

To find out more or to meet with Adam for a customized consultation, contact him at 541.337.3726 or email amoshofsky@mtgxps.com. And as always, I am available for any assistance regarding buying or selling your home or anything in between.

“The content here-in  is for informational purposes and is not an advertisement to extend customer credit as defined by Section 226.2 of Regulation Z.  Not a commitment to lock or lend, underwriting terms and conditions apply.  Mortgage Express, LLC is not affiliated with HUD/FHA/USDA or the federal government.  Equal Housing Lender  |   NMLS Company ID:  40831, OR ML #1952, WA #520-CL-49336, CA-DOC #4131043”

How To Be The Most Effective Salesperson For Your Home

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Anyone can list a home for sale. You take some pictures, sign up online to any number of online home listing services, even hire a Realtor to do the job professionally using an MLS service. However, what it really takes to sell a home is to be prepared in the areas that make all the difference to buyers. Think about it. Would you want to pay $250,000 for a 4 bedroom, 2 bathroom home in a neighborhood where all the other houses on the street are going for $220,000? Of course not! Does it sound appealing to walk through a home with scuffmarks and pet smells and could imagine living there? Signs point to NO. The other thing is this: if potential buyers or prospects cannot get in to see your place at convenient times for them and their agents, how can you expect them to be interested in the property?

Price! Price! Price!

Four years ago, you might have heard the familiar phrase “Location! Location! Location!” but that has changed. Now, more than ever, it is all about price. When a home seller prices his or her home, they are doing much more than just putting the property on the market. In fact, they are advertising their motivation for selling the home. If you see a home on the market that is advertised at forty percent less than the other homes on the street, something has got to be wrong with it, right? Well at least there will be questions raised and there will definitely be a loss of some prospective buyers who will not even take an unrealistically priced property seriously.

Excellent, Good or Fair Condition?

It goes without saying that potential buyers want to see a home in top-notch condition. Not only does there need to be solid structure, strong foundation and intact systems like plumbing, electrical and heating/cooling – but aesthetically too, the home must be appealing. All too often sellers have not considered fixing up the home to meet even the most basic standards of cleanliness and functional condition.

Imagine your home being showcased on one of those television design programs. How would it appear on camera? Would there be “oohs” and “aahs” or “blahs”? Will the wood floor that has not been cleaned and polished look bland and uninspiring? Would the kitchen with clutter and too much junk lying around be unappealing? Of course it would! You want to set up your place so that buyers can not only want to imagine themselves in it but then set it up in a way so that they are able to actually envision living there. These days with inventory relatively low, demand low and housing prices on the decline, the best combination for the strongest selling success is a home that is priced right and is in the best condition. In fact, those are the primarily the homes that are moving.

Open Invitations for Access

Nothing can be worse for a seller than to have a prospective buyer be interested in the home but back off because they were unable to view the home or access the property at a convenient time. Many sellers often do not want to go through the seemingly inconvenient steps of keeping the home in “showing” condition (especially for those sellers still living on the premises) so they inadvertently create access issues for buyers and agents.

The single best way to avoid the potential pitfall of not being prepared in this sense is to remain as accessible as possible. Of course this goes without saying for properties that are vacant but even in those cases, be sure to be flexible. Allow 24-hour access to vacant properties by provided a lock-box key that real estate agents may access once they have obtain the code from you. Your willingness to show the home and show it often shows that you are a serious seller and are interested in accommodating the convenience of potential buyers.

Keep in mind that you should maintain the exterior of the home as well as the entrance, so as to make it a warm and inviting environment that entices buyers into wanting to see more. If you have had pets on the home, remove them and attempt to remove all traces of them. Clean up personal clutter and also try to show the home’s best attributes so that the buyers can visualize themselves in the home.

Three Mistakes Sellers Make That Get In The Way Of Selling Their Home

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With the housing market as it is these days, when sellers put a home on the market to sell, they should definitely do everything they can to get that home sold! There are three common mistakes made by many sellers that if avoided, can make the difference in a successful sale or not one at all.

The Home Is Not In Saleable Condition

If there are major issues with the house that has not been tended to and cared for, the chance of selling the home will obviously be slimmer. This goes for things like siding, exterior doors, windows, furnace and other systemic functions. Aside from functionality and curb appeal, buyers also notice cosmetic things such as worn carpet or worse, stained and dirty flooring, scuff marks on the walls or dents from moving if it’s a vacant home. Uncleanliness, foul odors from either smoking or pets and general disarray are also problems that get in the way of buyers being able to see the house for what it really is.

Make an effort to spruce up the exterior. If possible, invest in some light landscaping unless you already have a decent exterior. Do make sure everything is neat, clean, carpets freshly painted or carpets steam cleaned. Have a cleaning person do a once over on the home, even if it is vacant – so that the fixtures, floors and windows are appealing.

There Are Too Many Location Obstacles

People seeking a home usually have something in mind, particularly in terms of location. Not location “where in the city?” – but location “what’s nearby?” If the property is backed up to a main road, it is usually not as desirable. If there is a commercial area very close nearby, lending to a noisy street all day and night long, buyers will usually turn away.

Factors that do make your location workable and even desirable include being in a good school district, in a neighborhood where housing values have historically tended to be higher than other neighborhoods or even the existence of a nearby park or recreation area. If these things are not present the best way to compensate is to focus on, feature and highlight other high selling points of your house. And if the location ends up being a deal-breaker, then compensate the buyer with price or other concessions.

The Selling Price Is Unrealistic

The single biggest hindrance to a home selling, let alone selling successfully – is its price. If your home is the highest priced home in a neighborhood of many “for sale” signs, then buyers will naturally gravitate to other homes on the same street. If your price is set according to the amount you paid rather than the current value, then in a market like the current challenged one, you will suffer lackluster interest from buyers.

The best way to manage pricing of your home is to connect with your Realtor, who will be well versed in appropriately pricing properties. Not all Realtors are created equal, so do your homework and select one with a good track record of home sales and with a good amount of experience. Your agent will likely conduct a detailed comparative market analysis (CMA) to determine exactly what homes that are similar to yours are priced and recently sold for in your vicinity. It is very important to set a realistic price and unfortunately the price that is set based on the current market is not what you may have expected based on what you might have paid for your property.
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Aside from these three factors, homes also don’t sell if the seller is not flexible or willing to go with the flow. Try to be reasonable in your expectations and hire a Realtor you can trust so you can be comfortable taking his or her advice to help you achieve successful selling results!

Understanding Today’s Real Estate Market to Decide What Comes Next

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Probably one of the most frequently asked questions asked to real estate agents these days is “when is the housing market going to recover?”  Chances are the people asking this question most are homeowners waiting to sell their property and yield what they would call a reasonable return on their investment.  But with the way things have been going for a few years now, there is no telling when the market could recover unless you understand what it took to get here and how the process of boom and bust and boom again works.

In this article, we cover a few important things that will help illustrate how we got to where we are today in the real estate market, what to expect in general and also what sellers should expect so they understand which approach they would like to take with their home at this time.

Post Boom Crash Responsible for Slow Recovery

In the early 2000s, we experienced the biggest global housing bubble ever in recent history, during which home prices jumped to about 100% of then current values, in most markets.  This lasted until 2005, when all of sudden the market crashed.

To understand what lies ahead, we need to understand what happened leading to the housing bubble mentioned above.  Consider this:  In the 1920s when the US experienced an unprecedented stock market bubble, prices jumped very high and too quickly.  Similarly, in the 1990s, when the dotcom phenomenon was making history, no one could have known what to expect when the bubble burst in 2000 – forcing the NASDAQ to plummet over the next two and a half years, losing 76% of its value.  Flash forward to today and we know that though it is eleven years after the NASDAQ debacle, it still has not come even close to its original (and very high) ceiling value. The housing market we are seeing today is experiencing the same phenomenon.

Supply and Demand – Basic Econ Finds Its Way Into Millions of Homes

We are definitely seeing a huge downward pressure on the housing market and that downward pressure is going to go further down before it comes back up again.  A look at our supply and demand trends illustrates the confines of our economy very effectively.  At the present time, there are far more houses on the market than ideal for a recovery to begin.  The average inventory (supply of newly built homes for sale) is about seven months – which means that it would take that much time for all houses on hand to sell.  At this point it would take an additional eight months or so to sell all existing homes that are on the market.

Ordinarily, a stable market would indicate about six months to sell all homes in inventory, indicating neither a buyers or sellers market.  But when you factor in the recent robo-signing scandal that happened ending up in a moratorium on foreclosures last year, we can expect a string of foreclosures as a result.

Home Prices Still Not Ideal

As we have seen recently, the global economy heavily impacts the US and the very first indication in terms of real estate is on interest rates.  As we witness fewer government concessions, tax credits and loan guarantees that make buying easier, we will see interest rates continue to rise and home prices fall.

Industry analysts cannot precisely predict when there will be a showdown but an end to this uphill battle will definitely come.  Some are saying it will happen sometime next year – but even then, there is no telling how long the market will take to recover.  And just like the NASDAQ has yet to fully recover to its post-dotcom boom status, the housing market will likely move up very slowly once recovery begins.

Home Sellers – Selling Out of Necessity or to Move Up?

What this means to homeowners who need to sell their homes and have no choice, is that they should get their homes listed as soon as possible, before interest rates rise and housing prices fall even more.  If at all possible, hold out and sell your home when things stabilize.  There is definitely more to come before we hit rock bottom and begin to recover.

If you are looking to move up into a better home, then this is a good time to sell.  Keep in mind that in the mid-2000s when homes were selling at much higher prices, that translated to a higher priced purchase too when homeowners moved up into a bigger home.  But in today’s market, you are essentially trading dollars for dollars and at a relatively low borrowing cost.

What Determines the Value of Your Home?

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Basically, a home's worth is determined by its market value. How is "market value" determined? Most often, it's figured by a comparison ("comp") with homes similar to yours in the surrounding area. So, if the homes in your neighborhood average, say, $250,000, then it's likely that the value of your property will fall in the same range. But market value is also determined by a number of factors including the following: 

External Factors 

There can be several external factors influencing the value of your home. One is "curb appeal", or the first impression your property makes upon prospective buyers. A home that's in excellent condition on the outside will make a great first impression; a home in poor repair instantly loses its appeal to buyers. Other factors can include lot size, popularity of an architectural style of property, water/sewage systems, paved roads, sidewalks, etc. 

Internal Factors  

The condition of a home's interior also has a huge influence on prospective buyers. When you've demonstrated "pride of ownership" and kept up the maintenance (quality paint, trim, molding, etc.), a buyer's interest will immediately perk up for the simple reason that they know your care and concern will result in less cost and maintenance for them. Other internal factors include construction quality, condition of appliances, size and number of rooms, heating/cooling type, energy efficiency, etc. 

Supply and Demand 

"Supply and demand" simply refers to the number of homes for sale versus the number of buyers. When there are more homes than there are buyers, prices tend to be lower. When there are a lot of buyers chasing few homes, then prices tend to rise. In effect, supply and demand affects how quickly your home will sell. Location More than likely, you already know the old saying, "There are three main factors in real estate - location, location, location." While that's not the whole story, desirability is a big factor for home buyers. They may want to live in particular school district known for its education excellence…a great and safe neighborhood with rising property values…etc. 

But I Know My Home Is More Valuable Than a Lot of Comparable Homes in My Neighborhood  

Aren't Allowances Made for This? Definitely! Sometimes, it can be difficult to find homes exactly comparable to your own. So, dollar adjustments are made for the differences between your home and comparable properties. 

Where Do I Find Sales Comparison Information? 

The easiest source to access is your Realtor. After all, it's his or her business to know such information! But, there are also other sources you can tap into in order to get a complete picture of your home's value in comparison to others in your neighborhood. Here's an overview of them:

1. ) The Local Assessor's Office  

It's very likely that your local assessor will be able to provide the sales history of a particular house, neighborhood, or style of architecture. Many assessors also provide lists of recent sales which you can browse and compare to the assessment roll. Today, many municipalities provide local sales and assessment information online making it very easy to access. Check with your local government agency to find out if they provide this service. 

2.) Online Private Companies  

You can search for these companies using the Google search engine and the keywords "comparable home sales" or "comparable sales." Some companies offer free information; others charge a nominal fee. If you wish to get more specific, you can Google "real estate database" and type in the name of your particular state to get additional property information. 

3.) Your Local Newspaper  

It's likely that your local newspaper is a great source of specific real estate information. Look for quarterly sales reports in the real estate or business sections.

The Key to Getting the Price You Want (or Close To It) for Your Home 

The key to getting the best value is finding and matching the right buyer to your home. And that's the job of the Realtor! He or she should work hard to qualify those buyers upfront so the right people are viewing your property! In other words, the Realtor should weed out "lookers" and other unsuitable buyers as a first step in working with you. See how I do that for you by calling me today!