Jump Start Your Home’s Heart! (2/21/08) - As a seller in the current real estate climate (or any market, for that

matter), you know that your home's features must stand out against those of the competition. First you need to understand what buyers are looking for, and then you must decide how much money and elbow grease to invest to make those wishes come true.

History shows that the kitchen is the best place to make your impression, and it can be done for less than a king's ransom. Got old linoleum, vinyl or chipped tiles on your kitchen floor? You can install laminate that looks like new tile, stone or wood for just $1 to $5 per square foot!

Now you can show off your flooring with updated light fixtures. Under-cabinet lighting is easily installed, and a gorgeous overhead light will brighten things up for less than $100.

A coat of fresh paint and some new hardware are very reasonable ways to go if you want your old cabinets to impress new homeowners, and chipped appliances can be re-enameled to their original luster. It may cost just a few hundred dollars, but you'd be well advised to hire a professional for this kind of refinishing.

For more budget-wise suggestions, ask a REALTOR® to do a "walk through" of your home before the first potential buyers come through that front door!

...Back to Top

Looking Beyond the Price (2/29/08) - What pops in your mind when you think of a real estate contract? The price, right? It's the critical term, but far from the only important factor to be considered by buyers or sellers. There are costs, finances, conveyances, and consequences to consider.

Typical costs include commissions, inspections, legal fees and so on. Your REALTOR® should firmly negotiate and explain who pays for what.

How about the escrow deposit and financing contingencies? Unless the buyers pay cash, an escape clause should release them from obligation if financing falls through. Specifying that the loan will be secured at a certain interest rate or lower provides further protection.

Also pay close attention to conveyances of personal property, such as some appliances, lighting or window treatments, or furnishing. Avoid argument and further negotiation by assuring there is zero confusion about what is included in the sale price.

Another factor that should be clearly spelled out is the consequences of a breach in contract by either side. This is a binding legal document, whereby buyers in breach can lose their deposit, or sellers in breach can be sued for "specific performance" to force the sale of the home.

It's best for you and your REALTOR® to review a standard contract before you make or consider a purchase offer. Know what to expect and be prepared to negotiate to Yes!

...Back to Top

Opportunity in Any Market (2/08/08) - Whether the market is up or down (and particularly if it's down), buying a "fixer-upper" and updating it can prove to be a profitable venture. As with any real estate investment, however, it's wise to enter with eyes wide open. Knowledge and caution will help you avoid common pitfalls.

The ideal candidate for such a purchase would be priced roughly 30 percent below the value of nearby homes, and located in a community with low crime rates and good schools. The only thing you can't repair or improve is a poor location.

And just because you can improve almost anything doesn't mean that you should! Avoid homes in need of truly major (and unprofitable) repairs such as the foundation, structural plumbing, or complete kitchen and bath renovations. Because these features are simply expected by buyers, they won't necessarily add any value to your offering.

Another aspect that is often overlooked is your fixer-upper's proximity to where you live. Keep it within an hour's drive, because you'll want (and need) to check in regularly, probably daily, while your repairs and renovations are in progress. The cost of fuel is high enough these days that you don't want to blow your profits on your gas tank!

There are many fine homes being offered at lower prices by motivated sellers. Don’t overlook the opportunity these properties present!

...Back to Top

Why Advertising Doesn’t Work (2/08/08) - As you prepare to sell your home, you'll probably consider the best way to advertise it. Surprisingly, advertising doesn't work. But marketing does, and there is a big difference. A REALTOR® will be more involved in “marketing” your home, and here's why.

A photo and description of your home's features, in a newspaper or magazine or online, is simply “advertising,” and is not going to generate much interest. A recent consumer survey conducted by the National Association of REALTORS® revealed that fewer than 5 percent of buyers found these ads helpful in selecting homes.

While ads focus on a "product," marketing involves targeting consumers based on their lifestyle and the opportunities provided by what you are offering. Local REALTORS® have a list of ready and willing buyers with whom they have already been working, and they understand the needs and qualifications of those buyers. Chances are that a REALTOR® can "market" your home to many of them without ever placing an ad or holding an open house.

Buyers want to purchase a version of a "dream," not the bricks, windows, and siding that the dream is made of. Ask your REALTOR® about how they plan to "market" that dream to the buyers they already know and to other agents and their buyers. You'll be surprised how much more effective marketing can be than advertising.

...Back to Top

It Takes Money to Save Money (2/01/08) - Okay, you've found the home of your dreams. You've determined how much you can afford because you've already been pre-approved by your lender, and your offer has been accepted. Well done! But wait. If you're financing the purchase, like almost everyone does, you'll actually be paying more than the final sale price of the home.

Many buyers simply don't stop to think about how much they'll really be paying for their home by the time they've reached the final monthly payment. It's worth considering, and it makes it evident that you should shop around and get the best loan terms possible.

Be sure to discuss your options with a trusted local REALTOR®, who can provide mortgage information, illustrate different financing options, and even recommend lenders suited to your needs. With literally hundreds, if not thousands, of options available, it's helpful to begin with the basic facts to help you whittle down your choices.

Determine how much is available for a down payment. If you're putting up less than 20%, you'll need a guarantee that often comes in the form of PMI (private mortgage insurance). This will add to the overall cost of your loan, at least until you've paid off a significant percentage.

Again, discuss your loan options with your REALTOR® before you make any offers, in order to avoid unpleasant delays and unexpected expenses.

...Back to Top

Get Serious (1/25/08) - Familiar with the law of supply and demand? In real estate right now, it may seem like the supply of homes for sale is much greater than the numbers of buyers demanding those homes, forcing prices down and decreasing activity. But what's really in shortage may be serious, legitimate sellers.

A committed seller is willing and able to accept the best offer in the current market, and be motivated to do so. Receiving a fair offer is inextricably connected to pricing your home fairly. The best way to arrive at an attractive price is to aggressively challenge the competition. Using past prices, your investment in the home, or even appraisals may not produce the ideal value factor for your home.

If you're serious about selling, let a REALTOR® describe to you how an appropriately priced and aggressively marketed home will always generate interest and offers, and will ultimately sell for exactly what it's worth in the current market. All other factors being equal, a home that languishes on the market is simply overpriced, and a seller willing to wait for more than fair price would be better served by waiting until the market catches up before entering the fray.

Remember this Golden Rule: There is a buyer for everything. Any home can be sold in any market when proper pricing is combined with effective marketing.

...Back to Top

Knowledge is Power (1/18/08) - You know that REALTORS® help you to move. Did you know that REALTORS® can also help you to stay where you are? This has become quite an issue in light of the recent rise in loan defaults. REALTORS® provide critical information and a valuable link between lenders and buyers.

Subprime loans, in and of themselves, are not bad. They provide financing for substantial numbers of people who cannot otherwise qualify under standard lending practices. However, buyers must be informed and realistic about what terms they can actually afford to accept.

No one - not banks, not agents, not homeowners - sees foreclosure as an acceptable option. It hurts everyone, including the communities where vacancies lead to declining prices and property values. This is where a trusted local real estate professional can provide assistance.

REALTORS® are advocates for smart lending practices, and they stay in touch with local lenders. REALTORS® also work with state and local governments, as well as local non-profit organizations that can help homeowners facing trouble meeting their mortgage payments.

Perhaps most importantly, realty professionals work closely with buyers to educate them about resources and options. This helps homeowners and prospective buyers keep their homes and build their equity. The key to it all is education and reason, and a strong desire to preserve the quality of our lives and our communities.

...Back to Top

Ready for Some Good News? (1/11/08) - Some financial experts have labeled 2007’s market as the "roulette economy." As we all know, whatever goes up must come down, but the nice thing about real estate is that whatever goes down always comes back upward again (much like stocks work).

A healthier market is anticipated in 2008, as Wall Street cleans up the lending mess and the pressure cooker of home demand releases its top. While the national average of home prices declined between one and two percent in 2007, that's peanuts compared to how much homes appreciated in the previous years. And many markets are appreciating still.

Keep in mind that “national” statistics for real estate mean about as much as a forecasted high temperature for the entire nation. Consumers get skittish when they hear that 40% of foreclosures are due to doubtful subprime loans, but it's important to put that in perspective, because those loans only constitute about 10% of all mortgages.

As the lending industry stabilizes and interest rates rise only slightly, buyers who are ready to purchase will discover that housing is still the best investment out there. Ask a professional REALTOR® to monitor new listings, selling times and final sales prices, and then to advise you when conditions are right to either buy or sell. 2008 should be a year of opportunity in the real estate industry.

...Back to Top

Give Them What they Want (1/4/08) - You're preparing to sell your home, and you've taken all the right steps. You've contacted a REALTOR® to represent you and to market your home, taken care of needed repairs, cleaned up the yard, and given your home the "white glove" treatment. How else can you attract buyers and a full price offer?zzzzzzzzz

What buyers want when they purchase a home is peace of mind. With a policy called a home warranty, you can practically guarantee it! A home warranty is particularly attractive to prospective buyers if your home is more than fifteen years old, or if your major appliances (including heat and air) have long passed their younger days.

These warranties cost just a few hundred dollars, and will cover the cost of repairs to or replacements for the appliances and systems in your home. Imagine the confidence this will inspire in buyers, who will understand immediately that they won't have any unplanned repair expenses after their purchase. A blown heat pump or leaking dishwasher is corrected with a phone call and very small service call fee.

Of course, a home warranty is a valuable policy regardless of whether you're selling or buying, and experience shows that many buyers choose to renew their coverage after the seller's contract expires. When it comes to home ownership, peace of mind is like money in the bank!

...Back to Top

Paperwork & Personality (12/14/07) - As you prepare to sell your home, you must begin by making a choice: to seek the services of a professional or to proceed without representation. You realize that your home is probably your biggest financial investment, with a value that could be hundreds of thousands of dollars.

Now imagine if you had a legal problem involving that kind of money - would you prepare and present your own case to the judge without an attorney? Not surprisingly, managing legal issues is just one of the top reasons that most sellers seek the representation of a qualified real estate professional.

On the paperwork side, there are offers to purchase, sales agreements, inspection reports, title investigations, and more, all leading up to the final closing. On the personal side, there is the experience and skill required to successfully negotiate between parties, as well as to anticipate and resolve the myriad issues that can arise from listing to offer to sale.

Considering the size of your investment, why would you put any of your stake at risk by forgoing the assistance and advice of an experienced REALTOR®? Maximize your returns with a minimum of hassle and cost. You wouldn’t go to court without an attorney, and you wouldn’t operate without a surgeon. It’s easy to see that some things are just too important to handle without an expert.

It Takes Two to Harmonize (12/7/07) - You're preparing to sell your home, and you've taken all the right steps. You've contacted a REALTOR® to represent you and to market your home, taken care of needed repairs, cleaned up the yard, and given your home the "white glove" treatment. How else can you attract buyers and a full price offer?

...Back to Top

Three Little Words (11/30/07) -There are three little words that can make buyers very anxious: Offer To Purchase. However, there need not be any mystery or fear attached to that phrase. With an experienced REALTOR® guiding the process, feelings of trepidation can quickly turn to excitement and enthusiasm.

While many terms and conditions may be attached to an offer, the real biggie, of course, is price. While you may have heard that your offer should be a certain percentage below the asking price, or even a percentage below what you are willing to pay, consideration of your offer will always be affected by the laws of supply and demand.

When buyers compete, sellers often see full-price offers. However, when inventories are high and demand is lower, an offer below asking price could be in order. Typically, your offer will be presented to the seller(s) and/or their representative(s). The seller may accept or reject the offer, but it's quite common for the seller to reply with a counter-offer.

Since it's often not a simple Yes or No answer, it is absolutely critical for you to stay in close contact with your REALTOR®, so that negotiation is handled smoothly and in a timely manner. Take heart that a counter-offer is not a rejection. As long as the offer is on the table, you can nearly always negotiate your way to Yes!

...Back to Top