The Very First Step is Contacting a Real Estate Professional To Find Out Your Home/ Property Market Value.
PRICING YOUR HOME TO SELL! is the first step before staging. Put your mind in the mind of the buyers, then prepare your home to present itself at the price you listed it for. A realistic selling price and terms are perhaps the most important considerations to a prospective buyer of your home. The price is based on a Competitive Market Analysis drawn from research of comparable houses recently sold within the area and those now for sale. Be sure you receive a CMA with comparable sales that are within a year of when you are planning to list your home for sale. The "comps" that are the most recent in market values and within a one mile radious of your home reflects your home's current market conditions.
DON'T OVERPRICE! As a seller, you should be aware that an overpriced home isn't going to make money--it's going to cost money. An inflated price tag is a losing proposition for everyone: you lose time and money, and in the current real estate market it may be challenging to aggressively promote the sale of overpriced property. Prospective buyers will rarely consider a home that's out of their price range and a home that is overpriced for the location. The unfortunate comes to life when you eventually decide to reduce the price to a realistic figure; the buying public may recall how long the house has been on the market and assume there's something wrong with it or the location.
SET THE PROPER PRICE AND GET IT! Your choice in a Real Estate Professional will work with you to determine a fair and realistic price. Based on the daily familiarity and knowledge of current market prices, be certain you are choosing the best qualified real estate professional that is a Realtor to establish a proper price. The major concern is setting the best price that sells your home and only a Realtor can access that information. Several Real Estate Companies offer about the same type of services, the truth is, service begins with the Real Estate Professional representing that company.
You can help sell your home faster for the best price with a little extra effort on your part. The following tips have proved invaluable to owners and are worth your special attention.
First impressions are lasting. The front door greets the prospect so make sure it is fresh, clean, and scrubbed-looking. Keep the lawn trimmed and edged and the yard free of refuse. Be sure snow and ice are removed from walks and steps.
Decorate to sell. Faded walls and worn woodwork reduce appeal. Why try to tell a prospect how your home could look when you can show him by redecorating? Neutral colors fit with any buyer's color scheme, and a new touch of paint will often result in a quick, profitable sale.
Let the sunshine in. Open draperies and curtains and let the prospect see how cheerful your home can be.
Fix the faucet! Dripping water discolors sinks and suggests faulty plumbing. Repairs can make a big difference. Loose door knobs, sticking doors and windows, warped cabinet drawers and other minor flaws detract from home value. Have them fixed. (When prospects see things that need attention, they begin to worry about things they can't see.) Show from top to bottom.
Display the full value of your attic, basement and other utility space by removing all unnecessary articles. Brighten dark, dull basements by painting or washing walls.
Safety first. Keep stairways clear. Avoid a cluttered appearance and possible injuries. Make closets look bigger. Neat, well-ordered closets show that the space is ample.
Believe it or Not...Bathrooms help sell homes! Check and repair caulking in bathtubs and showers. The Bathroom(s) sparkle is a terrible thing to waist. Arrange bedrooms neatly. Remove excess furniture and use attractive/clean bedspreads and freshly laundered curtains.
Can you see the light? Illumination is like a welcome sign. The potential buyer will feel a glowing warmth when you turn on all your lights for an evening inspection.
Three's a crowd. Avoid having too many people present during viewings of the home. Note - If you request your agent to be present at these viewings, they have to be present. If there is too much of a crowd, the potential buyer will feel like an intruder and will hurry through the house.
Music is mellow. But not when showing a home. Turn off the blaring radio or television. Let the Realtor and buyers talk, free of disturbances.
Pets underfoot? Keep them out of the way--take them for a ride or put them outside. If this is a difficult task for you and your pet, then hire a Realtor who is pet friendly that can work with your pet prior to the prospective buyers arriving.
Silence is golden. Be courteous but don't force conversation with the potential buyer. He/She wants to view your house for a potential purchase--not pay a social call. Be it ever so humble. Never apologize for the appearance of your home. After all, it has been lived in. A Realtor is trained to answer any objections--this is their job. Stay in the background. The Realtor knows the buyer's requirements and can better emphasize the features of your home when you don't tag along. You will be called if needed.
Why put the cart before the horse? Trying to dispose of furniture and furnishings prior to potential buyers view your home, makes a room appear like an "empty nest". Remember your three types of buyers; The Starting Out Buyers, The Starting Over Buyers, The Moving Forward Buyers.
A word to the wise. If you hire a Real Estate Professional, let your Real Estate Professional discuss price, terms, possession and other factors with the customer and/or their agent. An experienced full time Realtor is eminently qualified to bring negotiations to a favorable conclusion.
Click here to visit: www.ReadyToMakeAMove.com
Friday, October 22, 2010
Tuesday, September 28, 2010
How to Keep Up Curb Appeal in the Fall and Winter
When selling a home, curb appeal is the first view buyers will see prior to entering your home. Often times, a prospective buyer will decide whether or not they even want to get an inside look based on what they see on the outside. How to keep your home looking attractive in the fall and winter months can be a challenge. But with every challenge, there is an affordable solution saving time and money.
Never assume the market is slower in the fall and winter months. Preparing the exterior of your home during these months will enhance the home’s first impression all the more.
In the fall, colorful leaves are beautiful. But once they start falling and covering the lawn, it is a distraction. It is very important leaves do not get in the way. Keep the lawn and sidewalk clear of leaves along with keeping your lawn mowed. Remove dying and/or overgrown plants along with keeping your shrubs trimmed and shaped. A twice a week effort can result in a higher sales price.
In the winter it is obvious that once the snow falls, the lawn and flower beds are covered. Make sure to keep the snow off the driveway, walk way and any entry location from the outdoors. Brush the snow off the shrubs to allow the shrubs to appear standing tall without the snow weighing the shrubs down. If you are selling your home during the holiday season, try to use very little lights and holiday yard décor. You don’t want to over clutter the exterior. Keep it simple.
Bringing the home’s curb appeal to life in the seasons of fall and winter is just like preparing your home’s exterior in the spring and fall. How a home’s exterior is maintained is equally as important no matter what the season. A little effort goes a long way when selling during the fall and winter months.
For more advice in selling a home, contact Guerra Realtors, a member of Realty Group CT, for a consultation, free home value market analysis or search for homes in your area at 203-466-7653.
Never assume the market is slower in the fall and winter months. Preparing the exterior of your home during these months will enhance the home’s first impression all the more.
In the fall, colorful leaves are beautiful. But once they start falling and covering the lawn, it is a distraction. It is very important leaves do not get in the way. Keep the lawn and sidewalk clear of leaves along with keeping your lawn mowed. Remove dying and/or overgrown plants along with keeping your shrubs trimmed and shaped. A twice a week effort can result in a higher sales price.
In the winter it is obvious that once the snow falls, the lawn and flower beds are covered. Make sure to keep the snow off the driveway, walk way and any entry location from the outdoors. Brush the snow off the shrubs to allow the shrubs to appear standing tall without the snow weighing the shrubs down. If you are selling your home during the holiday season, try to use very little lights and holiday yard décor. You don’t want to over clutter the exterior. Keep it simple.
Bringing the home’s curb appeal to life in the seasons of fall and winter is just like preparing your home’s exterior in the spring and fall. How a home’s exterior is maintained is equally as important no matter what the season. A little effort goes a long way when selling during the fall and winter months.
For more advice in selling a home, contact Guerra Realtors, a member of Realty Group CT, for a consultation, free home value market analysis or search for homes in your area at 203-466-7653.
Friday, July 23, 2010
Let's Talk Relocation! - Simple Tips To Prepare to Relocate
By: John Guerra
Here Are a Few Helpful Tips When Deciding to Make a Relocation Move To Another State
Relocating to another state can be a stressful decision. Knowing what steps to make prior to making this decision is a vital part of relocating. Once your decision is made to relocate, it is important to know the time frame to prepare your relocation and services, both local and in the area you are moving. Most important, if your relocation is based on an employment reasons, find out the details in the relocation package your company is giving you to make that move.
If you own a home, many times your company will reach out to a relocation company who will assign a real estate professional that will determine the value of your home and market it for sale. There are also times where you can choose the real estate professional to help you locally. Through this process, a relocation department that works for you or your company will also connect with a real estate professional in the area you are moving to. This process is done to help you find a new home prior to your move.
Once the above steps are taken, it is time to prepare to move. If you currently own a home, it is advisable to clear the clutter and stage the home for sale. Pricing is an important. Through the real estate professionalize advice, you will be provided a CMA to determine the home's current market value. Use the suggested list price rather then over price the home. Over pricing will result in less results which can hurt your time frame decision.
When relocating with children, the relocation company and real estate professional assigned to assist you when purchasing a new home in the area you are relocating, will provide you information relating to demographics, schools, area activities and events that take place in the area you are searching for a new home and more. Although at times relocating can be difficult for people with children, introducing the new area to them by information is a step to prepare them to be excited about this move.
Begin getting estimates from movers to assist you and guide you in a state to state move. Once you chose a professional moving company, determine what belonging will actually go with you and what belongings need to be packed.
Once your home sold locally, and you are pending a purchase of a new home in another location, the professionals assisting you in both transactions will work as a team to make your move go smoothly as well. This includes the time frame of closing both your transactions.
If you are currently renting and relocating, the same applies in leases by Rental specialist as well.
It is time to make that move. You already decided how you will transport your belongings, however it is important to go through them again, including all the items you will not be disposing of. Once you've done that, write down a list of your belongings and call it "my inventory". How are some belongings being shipped, what you will be carrying and what items are staying.
Your travel arrangements, including temporary accommodation in the area you are relocating to, should remain with you. If you decide to move yourself and/or your family by plane, a travel consultant will help you with this area of your travel needs.
It is important that you begin to take care of all your required documentation as soon as your move date is official. Paper work documentations such as school and medical records for you and your children, insurance policies, all papers relating to your real estate transactions, contact numbers, change of address forms and anything else that is important.
On the day of your move, it's advisable that you (or an authorized representative) are there for the whole duration. This will assure you count and condition of your belongings on your inventory list. Additionally, all parties involved in assisting you with your relocation move will be there answer any questions that you may have. This also includes your selected moving company.
Never hesitate to ask questions, address concerns, request school and town tours in the area of your move amongst additional service vendors or professionals you need in any area of expertise.
Author Resource:- Relocating from one home to another, whether it is for a job relocation, family move, retirement, starting out or starting doesn't mean it is a stressful move. Simply tips will guide you through moving to your next home.
Call 1-866-281-4956 for more advice about relocation or visit: www.readytomakeamove.com to get advice, search homes for sale or get a market value of your home.
Wednesday, April 28, 2010
Your Credit History
As part of the loan application process, virtually all lenders will want to see a copy of your credit report. The report will list all your long-term debts (credit cards, mortgage payments, automobile and student loans, etc), as well as your payment history. If you don't have a copy of your credit report, most lenders will generally require you to pay for a copy when they process your loan application.
However, most real estate experts agree that it is a good idea to obtain a copy of your credit report several months before you apply for a loan. This is so you have a chance to resolve any problems with your credit before your bank sees it. U.S. Federal law ensures that you have access to your credit report, which may be obtained from your local credit bureau or any of several national firms that specialize in credit reports.
Late payments
For most people, problems with their credit report are likely related to late payments on a debt. If you were late one month in paying off your credit card, but otherwise have a good payment history, chances are most lenders won't be too concerned. But if you have a history of late payments you'll need to document the reasons why. A slow payment history won't necessarily get you turned down for a loan, but you may have to pay a higher rate of interest or otherwise prove to the lender that you can repay your loan in a timely fashion.
Errors on your credit report
Many people are surprised to learn that credit reports can often contains errors or inaccurate information. If this is the case with your credit report, you'll need to contact the reporting agency or creditor to have the problem resolved. This can sometimes be a slow process, so make sure to give yourself time to clear up the mistake.
Bankruptcies and foreclosures
There's no getting around it, a bankruptcy on your credit report is not a good thing. But that doesn't mean you still can't obtain a loan. Even though a bankruptcy may stay on your credit report for seven to ten years, lenders will often consider the circumstances surrounding a bankruptcy (family illness, injury, etc.). Moreover, if you have reestablished good credit since the bankruptcy, a lender will be more inclined to approve your application.
However, most real estate experts agree that it is a good idea to obtain a copy of your credit report several months before you apply for a loan. This is so you have a chance to resolve any problems with your credit before your bank sees it. U.S. Federal law ensures that you have access to your credit report, which may be obtained from your local credit bureau or any of several national firms that specialize in credit reports.
Late payments
For most people, problems with their credit report are likely related to late payments on a debt. If you were late one month in paying off your credit card, but otherwise have a good payment history, chances are most lenders won't be too concerned. But if you have a history of late payments you'll need to document the reasons why. A slow payment history won't necessarily get you turned down for a loan, but you may have to pay a higher rate of interest or otherwise prove to the lender that you can repay your loan in a timely fashion.
Errors on your credit report
Many people are surprised to learn that credit reports can often contains errors or inaccurate information. If this is the case with your credit report, you'll need to contact the reporting agency or creditor to have the problem resolved. This can sometimes be a slow process, so make sure to give yourself time to clear up the mistake.
Bankruptcies and foreclosures
There's no getting around it, a bankruptcy on your credit report is not a good thing. But that doesn't mean you still can't obtain a loan. Even though a bankruptcy may stay on your credit report for seven to ten years, lenders will often consider the circumstances surrounding a bankruptcy (family illness, injury, etc.). Moreover, if you have reestablished good credit since the bankruptcy, a lender will be more inclined to approve your application.
Monday, February 22, 2010
Real Estate Services at your fingertips!
You can contact us for one-on-one help and advice anytime toll free at 1-866-281-4956 and Contact us with confidence!
We guarantee your privacy will be respected.
And we offer the services on this site for free and without obligation. Why? We want to be YOUR Realtors® for life.
As your trusted professional Real Estate partners, we will help you find the best homes in your area within your price range. Together we'll sell your home or find you the home of your dreams at the best possible price, terms, and conditions as quickly as possible. Buying and selling a home is one of the biggest events in your life. As top Realtors®, we have the experience and track record you are looking for.
Register For New Connecticut Listings emailed daily at http://www.GuerraRealtors.com.
You will find a wealth of useful real estate information for home buyers and sellers at our website! Before you sell or buy a home in Connecticut, view market information found on this website.
Connecticut Real Estate listings
Our real estate web site is designed to provide you with the latest market information and current home listings for sale in Connecticut (CT). Our website features a free real estate search that will allow you to search for home listings in Connecticut.
Find information on buying or selling your next home. Let an expert, a Connecticut Realtor®, help you through the real estate buying or selling process. This is a great area to live!
Whether you have an area in mind or are looking for some suggestions, contact us today and we can discuss any question you might have about or any of the surrounding cities! or any of the surrounding cities!
Selling a Connecticut Home
If you're thinking of selling your home in Connecticut, the first thing you should ask is "How much is my home worth?" Being educated on market trends in Connecticut gives you the best chance of selling your home quickly and for the best price possible.
Click on "Free Market Analysis" to request a free (C.M.A.) Comparative Market Analysis of your home.
Buying a Home in Connecticut (CT)
Let us find you the perfect home! We specialize in a variety of properties including: resale, new home construction, custom builders, luxury, retirement property, land, horse property, vacation homes, second homes, long term rentals, leasing, foreclosures and investment property. You can find it all on our website. In fact, make your home search easier and become a VIP Buyer. Get immediate information on ALL new listings that match your criteria emailed. Click on "VIP Buyer's Program" now! As always, if you have any questions about the Connecticut real estate market, or finding that perfect home here in Connecticut, please let us know!
Need a Home Loan?
Finding the right financial solution for your real estate transaction can be confusing. It's important for you to know the facts about your mortgage before you buy a house. Making sure that you know how much you can afford and the best rates for your purchase can save you more than money, it can save you time and stress! Read the "Articles" on this site to learn more. Make sure you click on "Pre-Qualify Now" to take the first step to financing your home purchase. We will contact you and connect you to one of our referred lenders for a free mortgage pre-approval, the very first step to home ownership.
We guarantee your privacy will be respected.
And we offer the services on this site for free and without obligation. Why? We want to be YOUR Realtors® for life.
As your trusted professional Real Estate partners, we will help you find the best homes in your area within your price range. Together we'll sell your home or find you the home of your dreams at the best possible price, terms, and conditions as quickly as possible. Buying and selling a home is one of the biggest events in your life. As top Realtors®, we have the experience and track record you are looking for.
Register For New Connecticut Listings emailed daily at http://www.GuerraRealtors.com.
You will find a wealth of useful real estate information for home buyers and sellers at our website! Before you sell or buy a home in Connecticut, view market information found on this website.
Connecticut Real Estate listings
Our real estate web site is designed to provide you with the latest market information and current home listings for sale in Connecticut (CT). Our website features a free real estate search that will allow you to search for home listings in Connecticut.
Find information on buying or selling your next home. Let an expert, a Connecticut Realtor®, help you through the real estate buying or selling process. This is a great area to live!
Whether you have an area in mind or are looking for some suggestions, contact us today and we can discuss any question you might have about or any of the surrounding cities! or any of the surrounding cities!
Selling a Connecticut Home
If you're thinking of selling your home in Connecticut, the first thing you should ask is "How much is my home worth?" Being educated on market trends in Connecticut gives you the best chance of selling your home quickly and for the best price possible.
Click on "Free Market Analysis" to request a free (C.M.A.) Comparative Market Analysis of your home.
Buying a Home in Connecticut (CT)
Let us find you the perfect home! We specialize in a variety of properties including: resale, new home construction, custom builders, luxury, retirement property, land, horse property, vacation homes, second homes, long term rentals, leasing, foreclosures and investment property. You can find it all on our website. In fact, make your home search easier and become a VIP Buyer. Get immediate information on ALL new listings that match your criteria emailed. Click on "VIP Buyer's Program" now! As always, if you have any questions about the Connecticut real estate market, or finding that perfect home here in Connecticut, please let us know!
Need a Home Loan?
Finding the right financial solution for your real estate transaction can be confusing. It's important for you to know the facts about your mortgage before you buy a house. Making sure that you know how much you can afford and the best rates for your purchase can save you more than money, it can save you time and stress! Read the "Articles" on this site to learn more. Make sure you click on "Pre-Qualify Now" to take the first step to financing your home purchase. We will contact you and connect you to one of our referred lenders for a free mortgage pre-approval, the very first step to home ownership.
Sunday, January 31, 2010
Getting Your Finances in Order when Applying for a Mortgage Loan
Getting Your Finances in order is a crucial step in starting your search for a new home is having a clear idea of your financial situation. By getting a handle on your income, expenses and debts, you'll have a much better idea of what you can afford and how much you'll need to borrow.
For lenders to verify this information, though, they're going to need to look at your financial records. It is also important to remember that you should include records for each person who will be an owner of the house. So before you even visit the bank, make sure you'll be able to provide copies of these important documents:
Paycheck Stubs
Remember that lenders are most interested in your average income. Not only will they want to see this month's paycheck, but also how much you've been making for the past two years. Steady employment is also more attractive to lenders, so if you've been hopping from job to job, be prepared to discuss the reasons why.
Bank Statements
In order to qualify you for a loan, most lenders will also ask you for copies of your bank statements. Ideally, they'd like to see a steady history of savings--or at the very least, that you're not bouncing checks every month.
Tax Records
It's always a good idea to save copies of your tax returns, especially if you're self-employed. If you own your own business, it's important to note that lenders generally consider your income as the amount you paid taxes on--not the gross income of the business.
Dividends &Â Investments
Lenders will usually consider long-term investment dividends, as well as your investment portfolio, when evaluating your income.
Alimony/Child Support
If you receive steady payments as part of a divorce settlement or for child support, you can also include this as part of your gross income. Just remember that lenders will want to see a copy of your divorce/court settlement verifying the amount of the payments.
Credit Report
Virtually every lender will want to see a copy of your credit report as part of the loan application process. The report lists all of your long-term debts, as well as your payment history. In general, they will require you to pay for the credit report (approximately $50), but if you have a recent copy, they may accept that instead.
For lenders to verify this information, though, they're going to need to look at your financial records. It is also important to remember that you should include records for each person who will be an owner of the house. So before you even visit the bank, make sure you'll be able to provide copies of these important documents:
Paycheck Stubs
Remember that lenders are most interested in your average income. Not only will they want to see this month's paycheck, but also how much you've been making for the past two years. Steady employment is also more attractive to lenders, so if you've been hopping from job to job, be prepared to discuss the reasons why.
Bank Statements
In order to qualify you for a loan, most lenders will also ask you for copies of your bank statements. Ideally, they'd like to see a steady history of savings--or at the very least, that you're not bouncing checks every month.
Tax Records
It's always a good idea to save copies of your tax returns, especially if you're self-employed. If you own your own business, it's important to note that lenders generally consider your income as the amount you paid taxes on--not the gross income of the business.
Dividends &Â Investments
Lenders will usually consider long-term investment dividends, as well as your investment portfolio, when evaluating your income.
Alimony/Child Support
If you receive steady payments as part of a divorce settlement or for child support, you can also include this as part of your gross income. Just remember that lenders will want to see a copy of your divorce/court settlement verifying the amount of the payments.
Credit Report
Virtually every lender will want to see a copy of your credit report as part of the loan application process. The report lists all of your long-term debts, as well as your payment history. In general, they will require you to pay for the credit report (approximately $50), but if you have a recent copy, they may accept that instead.
Wednesday, January 20, 2010
FHA Announces Policy Changes - From Arthur Sapienza; Wells Fargo Home Mortgage
FHA Announces Policy Changes to Address Risk and Strengthen Finances
New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities
WASHINGTON - Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA's capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation's housing market recovery.
The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.
"Striking the right balance between managing the FHA's risk, continuing to provide access to underserved communities, and supporting the nation's economic recovery is critically important," said Commissioner Stevens. "When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency's history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market's recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities."
Announced FHA Policy Changes:
1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
•The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
•If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
•This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
•The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
2. Update the combination of FICO scores and down payments for new borrowers.
•New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
•This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
•This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.
3. Reduce allowable seller concessions from 6% to 3%
•The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
•This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
4. Increase enforcement on FHA lenders
•Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.
•This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
•Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
•Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
•This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
•Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
•Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
•HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
•Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
•Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches
In addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.
For Additional information, please contact Arthur Sapienza at the below numbers. He will be more then happy to provide you a free mortgage consultation and free pre-approval or re-financing information if you currently own real estate property:
Arthur J. Sapienza
Home Mortgage Consultant
Wells Fargo Home Mortgage
(203) 230-0116 Home Office
(203) 605-7621 Cell
(203) 876-3810
(800) 545-4681
(866) 871-9558 Secure eFax
https://www.wfhm.com/loans/arthur-sapienza
New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities
WASHINGTON - Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA's capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation's housing market recovery.
The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.
"Striking the right balance between managing the FHA's risk, continuing to provide access to underserved communities, and supporting the nation's economic recovery is critically important," said Commissioner Stevens. "When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency's history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market's recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities."
Announced FHA Policy Changes:
1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
•The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
•If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
•This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
•The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
2. Update the combination of FICO scores and down payments for new borrowers.
•New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
•This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
•This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.
3. Reduce allowable seller concessions from 6% to 3%
•The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
•This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
4. Increase enforcement on FHA lenders
•Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.
•This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
•Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
•Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
•This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
•Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
•Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
•HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
•Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
•Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches
In addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.
For Additional information, please contact Arthur Sapienza at the below numbers. He will be more then happy to provide you a free mortgage consultation and free pre-approval or re-financing information if you currently own real estate property:
Arthur J. Sapienza
Home Mortgage Consultant
Wells Fargo Home Mortgage
(203) 230-0116 Home Office
(203) 605-7621 Cell
(203) 876-3810
(800) 545-4681
(866) 871-9558 Secure eFax
https://www.wfhm.com/loans/arthur-sapienza
Friday, January 15, 2010
What is the market value of your home?
Have you ever wondered, "What's the current market value of my home in today's market"? By filling out the information below you will be furnished with a FREE Comparative Market Analysis Report that will give you a good idea of your home's current value.
Please fill out the following information by clicking or copy and pasting the link below to your browswer.
The more complete the form is the easier it will be to provide an accurate report regarding the value of your home. Find out what your home's current market value is today!
http://www.guerrarealtors.com/content/articles/freecma.html
Please fill out the following information by clicking or copy and pasting the link below to your browswer.
The more complete the form is the easier it will be to provide an accurate report regarding the value of your home. Find out what your home's current market value is today!
http://www.guerrarealtors.com/content/articles/freecma.html
Tuesday, January 12, 2010
Real Estate Value - Q & A's
Q: What is the difference between market value and appraised value?
A: Appraised value is a certified appraiser's opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $200 and up.
Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker.
--------------------------------------------------------------------------------
Q: How do you find out the value of a troubled property?
A: Buyers considering a foreclosure property should obtain as much information as possible from the lender about the range of bids being sought.
It also is important to examine the property. If you are unable to get into a foreclosure property, check with surrounding neighbors about the property's condition.
It also is possible to do your own cost comparison through researching comparable properties recorded at local county recorder's and assessor's offices, or through Internet sites specializing in property records.
--------------------------------------------------------------------------------
Q: How do you increase the value of your property?
A: The biggest factor outside of a homeowner's control is market conditions. But other issues -- including the condition of the property, specific home improvements and neighborhood stability and safety -- can influence property values.
The greatest rise in home prices occurs when the economy is strong and the number of home sales is increasing.
Though markets vary, that has occurred twice in recent history -- in the early 1970s and the late 1980s. However, single-family homes appreciated much more than condominiums. While overall market conditions are out of the homeowner's control, other factors are not.
For example, specific home improvements can increase the value above the cost of the improvements. According to Remodeling magazine, which publishes an annual "Cost vs. Value" remodeling report, a remodeled bathroom returns 81percent to the owner, a bathroom addition, 89 percent and a master bedroom suite, 82 percent.
Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.
If you live in a high-crime area, an organized community watch program not only will lower the crime rate but also have been known to enhance property values.
--------------------------------------------------------------------------------
Q: What are the standard ways of finding out what a house is valued at?
A: A comparative market analysis and an appraisal are the standard ways consumers, lenders and realty agents deterimined what a home is worth.
Your real estate agent will be happy to provide a comparative market analysis, an informal estimate of value based on comparable sales in the neighborhood. You also can research "the comps" yourself by checking on recent sales in public records. Be sure that you are researching properties that are similar in size, construction and location.
This information is not only available at your local recorder's or assessor's office but also through private companies and on the Internet.
An appraisal, which generally costs $200 to $300 to perform, is a certified appraiser's opinion of the value of a home at any given time. Appraisers review numerous factors including recent comparable sales, location, square footage and construction quality.
--------------------------------------------------------------------------------
Q: Can you buy homes below market?
A: While a typical buyer may look at five to 10 homes before making an offer, investors who make bargain buys usually go through many more. Most experts agree it takes a lot of determination to find a real "bargain." There are a number of ways to buy a bargain property:
* Buy a fixer-upper in a transitional neighborhood, improve it and keep it or resell at a higher price.
* Buy a foreclosure property (after doing your research carefully).
* Buy a house due to be torn down and move it to a new lot.
* Buy a partial interest in a piece of real estate, such as part of a tenants-in-common partnership.
* Buy a leftover house in a new-home development.
--------------------------------------------------------------------------------
Q: How can I improve the value of my property?
A: The biggest factor outside of a homeowner's control is market conditions. But other issues -- including the condition of the property, specific home improvements and neighborhood stability and safety -- can influence property values.
The greatest rise in home prices occurs when the economy is strong and the number of home sales is increasing. Though markets vary, that has occurred twice in recent history -- in the early 1970s and the late 1980s.
Specific home improvements can increase the value above the cost of the improvements. According to Remodeling magazine, which publishes an annual "Cost vs. Value" remodeling report, a remodeled bathroom returns 81percent to the owner, a bathroom addition, 89 percent and a master bedroom suite, 82 percent. Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.
The safety and security of a neighborhood can affect property values, too. If you live in a high-crime area, an organized community watch program not only will lower the crime rate but give home values a boost, too.
--------------------------------------------------------------------------------
Q: What kind of return is there on remodeling jobs?
A: Remodeling magazine produces an annual "Cost vs. Value Report'' that answers just that question. The most important point to remember is that remodeling a home not only improves its livability for you but its curb appeal with a potential buyer down the road.
Most recently, the highest remodeling paybacks have come from updating kitchens and baths, home-office additions and extra amenities in older homes. While home offices are a relatively new remodeling trend, for example, you could expect to recoup 58 percent of the cost of adding a home office, according to the survey.
A: Appraised value is a certified appraiser's opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $200 and up.
Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker.
--------------------------------------------------------------------------------
Q: How do you find out the value of a troubled property?
A: Buyers considering a foreclosure property should obtain as much information as possible from the lender about the range of bids being sought.
It also is important to examine the property. If you are unable to get into a foreclosure property, check with surrounding neighbors about the property's condition.
It also is possible to do your own cost comparison through researching comparable properties recorded at local county recorder's and assessor's offices, or through Internet sites specializing in property records.
--------------------------------------------------------------------------------
Q: How do you increase the value of your property?
A: The biggest factor outside of a homeowner's control is market conditions. But other issues -- including the condition of the property, specific home improvements and neighborhood stability and safety -- can influence property values.
The greatest rise in home prices occurs when the economy is strong and the number of home sales is increasing.
Though markets vary, that has occurred twice in recent history -- in the early 1970s and the late 1980s. However, single-family homes appreciated much more than condominiums. While overall market conditions are out of the homeowner's control, other factors are not.
For example, specific home improvements can increase the value above the cost of the improvements. According to Remodeling magazine, which publishes an annual "Cost vs. Value" remodeling report, a remodeled bathroom returns 81percent to the owner, a bathroom addition, 89 percent and a master bedroom suite, 82 percent.
Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.
If you live in a high-crime area, an organized community watch program not only will lower the crime rate but also have been known to enhance property values.
--------------------------------------------------------------------------------
Q: What are the standard ways of finding out what a house is valued at?
A: A comparative market analysis and an appraisal are the standard ways consumers, lenders and realty agents deterimined what a home is worth.
Your real estate agent will be happy to provide a comparative market analysis, an informal estimate of value based on comparable sales in the neighborhood. You also can research "the comps" yourself by checking on recent sales in public records. Be sure that you are researching properties that are similar in size, construction and location.
This information is not only available at your local recorder's or assessor's office but also through private companies and on the Internet.
An appraisal, which generally costs $200 to $300 to perform, is a certified appraiser's opinion of the value of a home at any given time. Appraisers review numerous factors including recent comparable sales, location, square footage and construction quality.
--------------------------------------------------------------------------------
Q: Can you buy homes below market?
A: While a typical buyer may look at five to 10 homes before making an offer, investors who make bargain buys usually go through many more. Most experts agree it takes a lot of determination to find a real "bargain." There are a number of ways to buy a bargain property:
* Buy a fixer-upper in a transitional neighborhood, improve it and keep it or resell at a higher price.
* Buy a foreclosure property (after doing your research carefully).
* Buy a house due to be torn down and move it to a new lot.
* Buy a partial interest in a piece of real estate, such as part of a tenants-in-common partnership.
* Buy a leftover house in a new-home development.
--------------------------------------------------------------------------------
Q: How can I improve the value of my property?
A: The biggest factor outside of a homeowner's control is market conditions. But other issues -- including the condition of the property, specific home improvements and neighborhood stability and safety -- can influence property values.
The greatest rise in home prices occurs when the economy is strong and the number of home sales is increasing. Though markets vary, that has occurred twice in recent history -- in the early 1970s and the late 1980s.
Specific home improvements can increase the value above the cost of the improvements. According to Remodeling magazine, which publishes an annual "Cost vs. Value" remodeling report, a remodeled bathroom returns 81percent to the owner, a bathroom addition, 89 percent and a master bedroom suite, 82 percent. Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.
The safety and security of a neighborhood can affect property values, too. If you live in a high-crime area, an organized community watch program not only will lower the crime rate but give home values a boost, too.
--------------------------------------------------------------------------------
Q: What kind of return is there on remodeling jobs?
A: Remodeling magazine produces an annual "Cost vs. Value Report'' that answers just that question. The most important point to remember is that remodeling a home not only improves its livability for you but its curb appeal with a potential buyer down the road.
Most recently, the highest remodeling paybacks have come from updating kitchens and baths, home-office additions and extra amenities in older homes. While home offices are a relatively new remodeling trend, for example, you could expect to recoup 58 percent of the cost of adding a home office, according to the survey.
Monday, January 11, 2010
How Much Can You Afford?
Understanding how much you can afford is one of the most important rules of home buying. Depending on your individual situation, your budget can affect everything from the neighborhoods where you look, to the size of the house, and even what type of financing you choose.
Bear in mind, however, that lenders will look at more than just your income to determine the size of the loan. Likewise, you may find that there are some creative financing options that can help boost your purchasing power.
Loan prequalification vs. preapproval
One of the best ways to determine your budget is to have your real estate agent or lender prequalify you for a loan. Prequalification is different from preapproval, because it is only an estimate of what you'll be able to afford. On the other hand, preapproval is a more formal process where a lender examines your finances and agrees in advance to loan you money up to a specified amount.
What factors are important to lenders?
Banks and lending institutions will use several criteria to determine how much money they'll agree to lend. These include:
Your gross monthly income
Your credit history
The amount of your outstanding debts
Your savings--or the amount of money you have available for a down payment and closing costs
Your choice of mortgage (i.e. 30-year, FHA, etc.)
Current interest rates
Two important ratios
Lenders also use your financial information to figure out two, very important ratios: the debt-to-income ratio and the housing expense ratio.
Debt-to-income ratio
Many lenders use a rule of thumb that the amount of debt you are paying on each month (car payment, student loan, credit card, etc,) shouldn't exceed more than 36 percent of your gross monthly income. FHA loans are slightly more lenient.
Housing expense ratio
It is generally difficult to obtain a loan if the mortgage payment will be more than 28 to 33 percent of your gross monthly income.
Down payments make a difference
If you can make a large down payment, lenders may be more lenient with their qualifying ratios. For example, a person with a 20 percent down payment may be qualified with the 33 percent housing expense ratio, while someone with a 5 percent down payment is held to the stricter 28 percent ratio.
Other ways to improve your purchasing power
Gifts
If you're having trouble saving money, many lenders will allow you to use gift funds for the down payment and closing costs. However, most lenders require a "gift letter" stating the gift doesn't have to be repaid, and will also require you to pay at least a portion of the down payment with your own cash.
Negotiating Closing Costs
Through negotiation, some sellers may agree to pay all or most of your closing costs (for example, if you agree to meet their full asking price). If you choose to try this, make sure to ask your real estate agent for advice.
Loan Programs
Many local governments have special loan programs designed to help first-time homebuyers. Loans may be available at reduced interest rates, or with little or no down payments. Check with your local housing authority for more information.
Loan Types
Some homebuyers choose Adjustable Rate Mortgages (ARMs) because of low initial interest rates. Others opt for 30-year loans because they have lower monthly payments than 15-year loans. There are significant differences between different loans, so make sure to discuss the pros and cons of different loans with your agent or lender before making a decision.
Bear in mind, however, that lenders will look at more than just your income to determine the size of the loan. Likewise, you may find that there are some creative financing options that can help boost your purchasing power.
Loan prequalification vs. preapproval
One of the best ways to determine your budget is to have your real estate agent or lender prequalify you for a loan. Prequalification is different from preapproval, because it is only an estimate of what you'll be able to afford. On the other hand, preapproval is a more formal process where a lender examines your finances and agrees in advance to loan you money up to a specified amount.
What factors are important to lenders?
Banks and lending institutions will use several criteria to determine how much money they'll agree to lend. These include:
Your gross monthly income
Your credit history
The amount of your outstanding debts
Your savings--or the amount of money you have available for a down payment and closing costs
Your choice of mortgage (i.e. 30-year, FHA, etc.)
Current interest rates
Two important ratios
Lenders also use your financial information to figure out two, very important ratios: the debt-to-income ratio and the housing expense ratio.
Debt-to-income ratio
Many lenders use a rule of thumb that the amount of debt you are paying on each month (car payment, student loan, credit card, etc,) shouldn't exceed more than 36 percent of your gross monthly income. FHA loans are slightly more lenient.
Housing expense ratio
It is generally difficult to obtain a loan if the mortgage payment will be more than 28 to 33 percent of your gross monthly income.
Down payments make a difference
If you can make a large down payment, lenders may be more lenient with their qualifying ratios. For example, a person with a 20 percent down payment may be qualified with the 33 percent housing expense ratio, while someone with a 5 percent down payment is held to the stricter 28 percent ratio.
Other ways to improve your purchasing power
Gifts
If you're having trouble saving money, many lenders will allow you to use gift funds for the down payment and closing costs. However, most lenders require a "gift letter" stating the gift doesn't have to be repaid, and will also require you to pay at least a portion of the down payment with your own cash.
Negotiating Closing Costs
Through negotiation, some sellers may agree to pay all or most of your closing costs (for example, if you agree to meet their full asking price). If you choose to try this, make sure to ask your real estate agent for advice.
Loan Programs
Many local governments have special loan programs designed to help first-time homebuyers. Loans may be available at reduced interest rates, or with little or no down payments. Check with your local housing authority for more information.
Loan Types
Some homebuyers choose Adjustable Rate Mortgages (ARMs) because of low initial interest rates. Others opt for 30-year loans because they have lower monthly payments than 15-year loans. There are significant differences between different loans, so make sure to discuss the pros and cons of different loans with your agent or lender before making a decision.
Friday, January 8, 2010
How To Prepare Your Home For Sale - Simple Steps Toward Home Staging
Home Staging Tips and Advice & Tips on Selling a Home
The following tips will help you better understand Maggie Griffin's advice when staging a home for sale that will bring you positive results.
PRICING YOUR HOME TO SELL is the first step before staging. Put your mind in the mind of the buyers, then prepare your home to present itself at the price you listed it for.
A realistic selling price and terms are perhaps the most important considerations to a prospective buyer of your home. The price is based on a Competitive Market Analysis drawn from research of comparable houses recently sold within the area and those now for sale. Be sure you receive a CMA with comparable sales that are within a year of when you are planning to list your home for sale. The "comps" that are the most recent in market values and within a one mile radious of your home reflects your home's current market conditions.
DON'T OVERPRICE
As a seller, you should be aware that an overpriced home isn't going to make money--it's going to cost money. An inflated price tag is a losing proposition for everyone: you lose time and money, and in the current real estate market it may be challenging to aggressively promote the sale of overpriced property. Prospective buyers will rarely consider a home that's out of their price range and a home that is overpriced for the location. The unfortunate comes to life when you eventually decide to reduce the price to a realistic figure; the buying public may recall how long the house has been on the market and assume there's something wrong with it or the location.
SET THE PROPER PRICE AND GET IT
Your choice in a Real Estate Professional will work with you to determine a fair and realistic price. Based on the daily familiarity and knowledge of current market prices, be certain you are choosing the best qualified real estate professional that is a Realtor to establish a proper price. The major concern is setting the best price that sells your home and only a Realtor can access that information.
Several Real Estate Companies offer about the same type of services, the truth is, service begins with the Real Estate Professional representing that company.
20 Staging Tips and Advice:
You can help sell your home faster for the best price with a little extra effort on your part. These 20 tips have proved invaluable to owners and are worth your special attention.
First impressions are lasting. The front door greets the prospect so make sure it is fresh, clean, and scrubbed-looking. Keep the lawn trimmed and edged and the yard free of refuse. Be sure snow and ice are removed from walks and steps.
Decorate to sell. Faded walls and worn woodwork reduce appeal. Why try to tell a prospect how your home could look when you can show him by redecorating? Neutral colors fit with any buyer's color scheme, and a new touch of paint will often result in a quick, profitable sale.
Let the sunshine in. Open draperies and curtains and let the prospect see how cheerful your home can be.
Fix the faucet! Dripping water discolors sinks and suggests faulty plumbing.
Repairs can make a big difference. Loose door knobs, sticking doors and windows, warped cabinet drawers and other minor flaws detract from home value. Have them fixed. (When prospects see things that need attention, they begin to worry about things they can't see.)
Show from top to bottom. Display the full value of your attic, basement and other utility space by removing all unnecessary articles. Brighten dark, dull basements by painting or washing walls.
Safety first. Keep stairways clear. Avoid a cluttered appearance and possible injuries.
Make closets look bigger. Neat, well-ordered closets show that the space is ample.
Believe it or Not...Bathrooms help sell homes! Check and repair caulking in bathtubs and showers. The Bathroom(s) sparkle is a terrible thing to waist.
Arrange bedrooms neatly. Remove excess furniture and use attractive/clean bedspreads and freshly laundered curtains.
Can you see the light? Illumination is like a welcome sign. The potential buyer will feel a glowing warmth when you turn on all your lights for an evening inspection.
Three's a crowd. Avoid having too many people present during viewings of the home. Note - If you request your agent to be present at these viewings, they have to be present. If there is too much of a crowd, the potential buyer will feel like an intruder and will hurry through the house.
Music is mellow. But not when showing a home. Turn off the blaring radio or television. Let the Realtor and buyers talk, free of disturbances.
Pets underfoot? Keep them out of the way--take them for a ride or put them outside. If this is a difficult task for you and your pet, then hire a Realtor who is pet friendly that can work with your pet prior to the prospective buyers arriving.
Silence is golden. Be courteous but don't force conversation with the potential buyer. He/She wants to view your house for a potential purchase--not pay a social call.
Be it ever so humble. Never apologize for the appearance of your home. After all, it has been lived in. A Realtor is trained to answer any objections--this is their job.
Stay in the background. The Realtor knows the buyer's requirements and can better emphasize the features of your home when you don't tag along. You will be called if needed.
Why put the cart before the horse? Trying to dispose of furniture and furnishings prior to potential buyers view your home, makes a room appear like an "empty nest". Remember your three types of buyers; The Starting Out Buyers, The Starting Over Buyers, The Moving Forward Buyers.
A word to the wise. If you hire a Real Estate Professional, let your Real Estate Professional discuss price, terms, possession and other factors with the customer and/or their agent. An experienced full time Realtor is eminently qualified to bring negotiations to a favorable conclusion.
If you are a For Sale By Owner, hire an attorney to negotiate price and terms for you.
The following tips will help you better understand Maggie Griffin's advice when staging a home for sale that will bring you positive results.
PRICING YOUR HOME TO SELL is the first step before staging. Put your mind in the mind of the buyers, then prepare your home to present itself at the price you listed it for.
A realistic selling price and terms are perhaps the most important considerations to a prospective buyer of your home. The price is based on a Competitive Market Analysis drawn from research of comparable houses recently sold within the area and those now for sale. Be sure you receive a CMA with comparable sales that are within a year of when you are planning to list your home for sale. The "comps" that are the most recent in market values and within a one mile radious of your home reflects your home's current market conditions.
DON'T OVERPRICE
As a seller, you should be aware that an overpriced home isn't going to make money--it's going to cost money. An inflated price tag is a losing proposition for everyone: you lose time and money, and in the current real estate market it may be challenging to aggressively promote the sale of overpriced property. Prospective buyers will rarely consider a home that's out of their price range and a home that is overpriced for the location. The unfortunate comes to life when you eventually decide to reduce the price to a realistic figure; the buying public may recall how long the house has been on the market and assume there's something wrong with it or the location.
SET THE PROPER PRICE AND GET IT
Your choice in a Real Estate Professional will work with you to determine a fair and realistic price. Based on the daily familiarity and knowledge of current market prices, be certain you are choosing the best qualified real estate professional that is a Realtor to establish a proper price. The major concern is setting the best price that sells your home and only a Realtor can access that information.
Several Real Estate Companies offer about the same type of services, the truth is, service begins with the Real Estate Professional representing that company.
20 Staging Tips and Advice:
You can help sell your home faster for the best price with a little extra effort on your part. These 20 tips have proved invaluable to owners and are worth your special attention.
First impressions are lasting. The front door greets the prospect so make sure it is fresh, clean, and scrubbed-looking. Keep the lawn trimmed and edged and the yard free of refuse. Be sure snow and ice are removed from walks and steps.
Decorate to sell. Faded walls and worn woodwork reduce appeal. Why try to tell a prospect how your home could look when you can show him by redecorating? Neutral colors fit with any buyer's color scheme, and a new touch of paint will often result in a quick, profitable sale.
Let the sunshine in. Open draperies and curtains and let the prospect see how cheerful your home can be.
Fix the faucet! Dripping water discolors sinks and suggests faulty plumbing.
Repairs can make a big difference. Loose door knobs, sticking doors and windows, warped cabinet drawers and other minor flaws detract from home value. Have them fixed. (When prospects see things that need attention, they begin to worry about things they can't see.)
Show from top to bottom. Display the full value of your attic, basement and other utility space by removing all unnecessary articles. Brighten dark, dull basements by painting or washing walls.
Safety first. Keep stairways clear. Avoid a cluttered appearance and possible injuries.
Make closets look bigger. Neat, well-ordered closets show that the space is ample.
Believe it or Not...Bathrooms help sell homes! Check and repair caulking in bathtubs and showers. The Bathroom(s) sparkle is a terrible thing to waist.
Arrange bedrooms neatly. Remove excess furniture and use attractive/clean bedspreads and freshly laundered curtains.
Can you see the light? Illumination is like a welcome sign. The potential buyer will feel a glowing warmth when you turn on all your lights for an evening inspection.
Three's a crowd. Avoid having too many people present during viewings of the home. Note - If you request your agent to be present at these viewings, they have to be present. If there is too much of a crowd, the potential buyer will feel like an intruder and will hurry through the house.
Music is mellow. But not when showing a home. Turn off the blaring radio or television. Let the Realtor and buyers talk, free of disturbances.
Pets underfoot? Keep them out of the way--take them for a ride or put them outside. If this is a difficult task for you and your pet, then hire a Realtor who is pet friendly that can work with your pet prior to the prospective buyers arriving.
Silence is golden. Be courteous but don't force conversation with the potential buyer. He/She wants to view your house for a potential purchase--not pay a social call.
Be it ever so humble. Never apologize for the appearance of your home. After all, it has been lived in. A Realtor is trained to answer any objections--this is their job.
Stay in the background. The Realtor knows the buyer's requirements and can better emphasize the features of your home when you don't tag along. You will be called if needed.
Why put the cart before the horse? Trying to dispose of furniture and furnishings prior to potential buyers view your home, makes a room appear like an "empty nest". Remember your three types of buyers; The Starting Out Buyers, The Starting Over Buyers, The Moving Forward Buyers.
A word to the wise. If you hire a Real Estate Professional, let your Real Estate Professional discuss price, terms, possession and other factors with the customer and/or their agent. An experienced full time Realtor is eminently qualified to bring negotiations to a favorable conclusion.
If you are a For Sale By Owner, hire an attorney to negotiate price and terms for you.
Thursday, January 7, 2010
Improving Your Real Estate Q&A's
Q: How do you increase the value of your property?
A: The biggest factor outside of a homeowner's control is market conditions. But other issues -- including the condition of the property, specific home improvements and neighborhood stability and safety -- can influence property values.
The greatest rise in home prices occurs when the economy is strong and the number of home sales is increasing.
Though markets vary, that has occurred twice in recent history -- in the early 1970s and the late 1980s. However, single-family homes appreciated much more than condominiums. While overall market conditions are out of the homeowner's control, other factors are not.
For example, specific home improvements can increase the value above the cost of the improvements. According to Remodeling magazine, which publishes an annual "Cost vs. Value" remodeling report, a remodeled bathroom returns 81percent to the owner, a bathroom addition, 89 percent and a master bedroom suite, 82 percent.
Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.
If you live in a high-crime area, an organized community watch program not only will lower the crime rate but also have been known to enhance property values.
--------------------------------------------------------------------------------
Q: How can I improve the value of my property?
A: The biggest factor outside of a homeowner's control is market conditions. But other issues -- including the condition of the property, specific home improvements and neighborhood stability and safety -- can influence property values.
The greatest rise in home prices occurs when the economy is strong and the number of home sales is increasing. Though markets vary, that has occurred twice in recent history -- in the early 1970s and the late 1980s.
Specific home improvements can increase the value above the cost of the improvements. According to Remodeling magazine, which publishes an annual "Cost vs. Value" remodeling report, a remodeled bathroom returns 81percent to the owner, a bathroom addition, 89 percent and a master bedroom suite, 82 percent. Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.
The safety and security of a neighborhood can affect property values, too. If you live in a high-crime area, an organized community watch program not only will lower the crime rate but give home values a boost, too.
--------------------------------------------------------------------------------
Q: What kind of return is there on remodeling jobs?
A: Remodeling magazine produces an annual "Cost vs. Value Report'' that answers just that question. The most important point to remember is that remodeling a home not only improves its livability for you but its curb appeal with a potential buyer down the road.
Most recently, the highest remodeling paybacks have come from updating kitchens and baths, home-office additions and extra amenities in older homes. While home offices are a relatively new remodeling trend, for example, you could expect to recoup 58 percent of the cost of adding a home office, according to the survey.
--------------------------------------------------------------------------------
Q: Are there gov't programs for rehab?
A: The U.S. Department of Housing and Urban Development's Section 203 (K) rehabilitation loan program is designed to facilitate major structural rehabilitation of houses with one to four units that are more than one year old. Condominiums are not eligible.
The 203(K) loan is usually done as a combination loan to purchase a fixer-upper property "as is" and rehabilitate it, or to refinance a temporary loan to buy the property and do the rehabilitation. It can also be done as a rehabilitation-only loan.
Plans and specifications for the proposed work must be submitted for architectural review and cost estimation. Mortgage proceeds are advanced periodically during the rehabilitation period to finance the construction costs.
For a list of participating lenders, call HUD at (202) 708-2720.
If you are a veteran, loans from the U.S. Department of Veterans Affairs also can be used to buy a home, build a home, improve a home or to refinance an existing loan. VA loans frequently offer lower interest rates than ordinarily available with other kinds of loans. To qualify for a loan, the first step is to apply for a Certificate of Eligibility.
Another program is the Fedeal Housing Administration's Title 1 FHA loan program.
Resources:
* "Rehab a Home With HUD's 203(K)" brochure, U.S. Department of Housing and Urban Development, 7th and D streets S.W., Washington, DC 20410.
--------------------------------------------------------------------------------
Q: Can you deduct the cost of home improvements?
A: What you spend on permanent home improvements, such as new windows, can be added into your home's cost basis, or amount of money invested in a home, which reduces capital gains when it comes time to sell. Capital gains are determined by the difference in price from the time a home is purchased and the time it is sold, minus the cost of any permanent improvements.
However, the 1997 tax changes virtually eliminates the capital gains tax for most homeowners. The exemption is $250,000 for single homeowners and $500,000 for married homeowners. Make certain you check with your tax professional.
Still, it is worthwhile to save all receipts for permanent home improvements just in case. They also can be useful documentation when it comes to marketing your home when you sell. Please check with your tax professional to make certain.
--------------------------------------------------------------------------------
Q: How do building codes work?
A: Building codes are established by local authorities to set out minimum public-safety standards for building design, construction, quality, use and occupancy, location and maintenance. There are specialized codes for plumbing, electrical and fire, which usually involve separate inspections and inspectors.
All buildings must be issued a building permit and a certificate of occupancy before it can be used. During construction, housing inspectors must make checks at key points. Codes are usually enforced by denying permits, occupancy certificates and by imposing fines.
Building codes also cover most remodeling projects. If you are buying a house that has been significantly remodeled, ask for proof of the permits involved before you purchase to avoid future liability for fines.
Resources:
* "The Ultimate Language of Real Estate," John Reilly, Dearborn Financial Publishing, Chicago; 1993.
--------------------------------------------------------------------------------
Q: What are some resources for info on home improvements?
A: If you're getting ready to embark on a home improvement project involving contracting help, "Ready, Set, Build: A Consumer's Guide to Home Improvement Planning Contracts" lays out a road map for selecting the right contractor, obtaining competitive bids up to what to include in a contract. There also is information on consumer rights, liens and financing.
The book is available for $9.95 through Consumer Press and Women's Publications, Inc., Dept. SR01, 13326 Southwest 28th St., Fort Lauderdale, FL 33330-1102; (954) 370-9153.
Resources:
* Profiting From Real Estate Rehab, Sandra M. Brassfield, John Wiley & Sons Inc., New York; 1992.
* Remodeling magazine's annual "Cost vs. Value Report", available for a nominal fee from the magazine; call (202) 736-3447 to order a copy.
--------------------------------------------------------------------------------
Q: Will a neighbor problem reduce the value of my property?
A: While it may not reduce the actual value, a cluttered landscape can detract from the positive aspects of your home. Review your local laws, which should be on file at the public library, county law library or City Hall.
A typical "junk vehicle" ordinance, for example, requires any disabled car to either be enclosed or placed behind a fence. And most cities prohibit parking any vehicle on a city street too long.
It also may be worthwhile to check into local zoning ordinances. An operator of a home-based business usually is required to obtain a variance or permanent zoning change in residential areas.
In addition, if a neighbor's repair work produces loud noises, he may be breaking local noise-control ordinances, which are enforced by the police department.
Before bringing in the authorities, you may want to make a copy of the pertinent ordinance and give it to your neighbor to give them a chance to correct the problem.
Resources:
* "Neighbor Law: Fences, Trees, Boundaries and Noise," Cora Jordan, Nolo Press, Berkeley, Calif.; 1991.
--------------------------------------------------------------------------------
Q: What are the pros and cons of adding on or buying new?
A: Before making a choice between adding on to an existing home or buying a larger one, consider these questions:
* How much money is available, either from cash reserves or through a home improvement loan, to remodel the current house?
* How much additional space is required? Would the foundation support a second floor or does the lot have room to expand on the ground level?
* What do local zoning and building ordinances permit?
* How much equity already exists in the property?
* Are there affordable properties for sale that would satisfy housing needs?
Ultimately, the decision should be based on individual needs, the extent of work involved and what will add the most value. According to Remodeling magazine's annual "Cost vs. Value Report," remodeling a home not only improves its livability but its curb appeal with potential buyers. The highest paybacks come from updating kitchens and baths and, most recently, adding on a home office, according to the survey.
For more information, check out "The Do-able Renewable Home," a free booklet available from the American Association of Retired Persons, Fulfillment Department, 601 E St., N.W., Washington, DC 20049; (202) 434-2277.
--------------------------------------------------------------------------------
Q: What are some guidelines to follow when trying to find a contractor?
A: While hiring contractors recommended by friends is usually a safe route, never hire a construction professional without first checking him or her out first. If your state has a licensing board for contractors, call to find out if there are any outstanding complaints against that license holder. Also, call your local Better Business Bureau to see if there are any complaints on file.
If you are satisfied with the answers you find there, interview the contractor candidates. Ask what kind of worker's compensation insurance they carry and get policy and insurance company phone numbers so you can verify the information. If they are not covered, you could be liable for any work-related injury incurred during the project. Also be sure that the contractor has an umbrella general liability policy.
If they pass the insurance hurdle, next check some of their references. A good contractor will be happy to provide as many as you want.
Finally, don't let yourself be rushed into making a decision no matter how competitive the market may seem. Also, never pay a deposit to a contractor at the first meeting. You may end up losing your money.
--------------------------------------------------------------------------------
Q: How much will I spend on maintenance expenses?
A: Experts generally agree that you can plan on annually spending 1 percent of the purchase price of your house on repairing gutters, caulking windows, sealing your driveway and the myriad other maintenance chores that come with the privilege of homeownership. Newer homes will cost less to maintain than older homes. It also depends on how well the house has been maintained over the years.
--------------------------------------------------------------------------------
Q: Where can I get a list of architects?
A: For information on architects, contact the following: American Institute of Architects, 1735 New York Avenue, N.W.; Washington, DC 20006 or call (202) 626-7300.
--------------------------------------------------------------------------------
Q: Where do I get information on remodeling?
A: Try these sources:
* National Association of the Remodeling Industry, 4301 N. Fairfax Drive, Suite 310,Arlington, VA 22203; (703) 575-1100.
* "Rehab a Home With HUD?s 203(K)," published by the U.S. Department of Housing and Urban Development, 7th and D St., S.W., Washington, DC 20410.
* "Cost vs. Value Report," by Remodeling magazine, 1 Thomas Circle, N.W., Suite 600, Washington, DC 20005. $8.95 per copy; call (202) 736-3447 for credit card orders.
* "The Do-able Renewable Home," by the Coordination and Development Department, American Association of Retired Persons, 601 E St., N.W., Washington, DC 20049.
--------------------------------------------------------------------------------
Q: What repairs should the seller make?
A: Most sellers like to make all minor repairs before going on the market in order to seek a higher sales price. In addition, nearly all purchase contracts include a buyer contingency "inspection clause," which allows a buyer to back out if numerous defects are found. Once the problems are noted, buyers can attempt to negotiate repairs or a lower price.
A: The biggest factor outside of a homeowner's control is market conditions. But other issues -- including the condition of the property, specific home improvements and neighborhood stability and safety -- can influence property values.
The greatest rise in home prices occurs when the economy is strong and the number of home sales is increasing.
Though markets vary, that has occurred twice in recent history -- in the early 1970s and the late 1980s. However, single-family homes appreciated much more than condominiums. While overall market conditions are out of the homeowner's control, other factors are not.
For example, specific home improvements can increase the value above the cost of the improvements. According to Remodeling magazine, which publishes an annual "Cost vs. Value" remodeling report, a remodeled bathroom returns 81percent to the owner, a bathroom addition, 89 percent and a master bedroom suite, 82 percent.
Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.
If you live in a high-crime area, an organized community watch program not only will lower the crime rate but also have been known to enhance property values.
--------------------------------------------------------------------------------
Q: How can I improve the value of my property?
A: The biggest factor outside of a homeowner's control is market conditions. But other issues -- including the condition of the property, specific home improvements and neighborhood stability and safety -- can influence property values.
The greatest rise in home prices occurs when the economy is strong and the number of home sales is increasing. Though markets vary, that has occurred twice in recent history -- in the early 1970s and the late 1980s.
Specific home improvements can increase the value above the cost of the improvements. According to Remodeling magazine, which publishes an annual "Cost vs. Value" remodeling report, a remodeled bathroom returns 81percent to the owner, a bathroom addition, 89 percent and a master bedroom suite, 82 percent. Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.
The safety and security of a neighborhood can affect property values, too. If you live in a high-crime area, an organized community watch program not only will lower the crime rate but give home values a boost, too.
--------------------------------------------------------------------------------
Q: What kind of return is there on remodeling jobs?
A: Remodeling magazine produces an annual "Cost vs. Value Report'' that answers just that question. The most important point to remember is that remodeling a home not only improves its livability for you but its curb appeal with a potential buyer down the road.
Most recently, the highest remodeling paybacks have come from updating kitchens and baths, home-office additions and extra amenities in older homes. While home offices are a relatively new remodeling trend, for example, you could expect to recoup 58 percent of the cost of adding a home office, according to the survey.
--------------------------------------------------------------------------------
Q: Are there gov't programs for rehab?
A: The U.S. Department of Housing and Urban Development's Section 203 (K) rehabilitation loan program is designed to facilitate major structural rehabilitation of houses with one to four units that are more than one year old. Condominiums are not eligible.
The 203(K) loan is usually done as a combination loan to purchase a fixer-upper property "as is" and rehabilitate it, or to refinance a temporary loan to buy the property and do the rehabilitation. It can also be done as a rehabilitation-only loan.
Plans and specifications for the proposed work must be submitted for architectural review and cost estimation. Mortgage proceeds are advanced periodically during the rehabilitation period to finance the construction costs.
For a list of participating lenders, call HUD at (202) 708-2720.
If you are a veteran, loans from the U.S. Department of Veterans Affairs also can be used to buy a home, build a home, improve a home or to refinance an existing loan. VA loans frequently offer lower interest rates than ordinarily available with other kinds of loans. To qualify for a loan, the first step is to apply for a Certificate of Eligibility.
Another program is the Fedeal Housing Administration's Title 1 FHA loan program.
Resources:
* "Rehab a Home With HUD's 203(K)" brochure, U.S. Department of Housing and Urban Development, 7th and D streets S.W., Washington, DC 20410.
--------------------------------------------------------------------------------
Q: Can you deduct the cost of home improvements?
A: What you spend on permanent home improvements, such as new windows, can be added into your home's cost basis, or amount of money invested in a home, which reduces capital gains when it comes time to sell. Capital gains are determined by the difference in price from the time a home is purchased and the time it is sold, minus the cost of any permanent improvements.
However, the 1997 tax changes virtually eliminates the capital gains tax for most homeowners. The exemption is $250,000 for single homeowners and $500,000 for married homeowners. Make certain you check with your tax professional.
Still, it is worthwhile to save all receipts for permanent home improvements just in case. They also can be useful documentation when it comes to marketing your home when you sell. Please check with your tax professional to make certain.
--------------------------------------------------------------------------------
Q: How do building codes work?
A: Building codes are established by local authorities to set out minimum public-safety standards for building design, construction, quality, use and occupancy, location and maintenance. There are specialized codes for plumbing, electrical and fire, which usually involve separate inspections and inspectors.
All buildings must be issued a building permit and a certificate of occupancy before it can be used. During construction, housing inspectors must make checks at key points. Codes are usually enforced by denying permits, occupancy certificates and by imposing fines.
Building codes also cover most remodeling projects. If you are buying a house that has been significantly remodeled, ask for proof of the permits involved before you purchase to avoid future liability for fines.
Resources:
* "The Ultimate Language of Real Estate," John Reilly, Dearborn Financial Publishing, Chicago; 1993.
--------------------------------------------------------------------------------
Q: What are some resources for info on home improvements?
A: If you're getting ready to embark on a home improvement project involving contracting help, "Ready, Set, Build: A Consumer's Guide to Home Improvement Planning Contracts" lays out a road map for selecting the right contractor, obtaining competitive bids up to what to include in a contract. There also is information on consumer rights, liens and financing.
The book is available for $9.95 through Consumer Press and Women's Publications, Inc., Dept. SR01, 13326 Southwest 28th St., Fort Lauderdale, FL 33330-1102; (954) 370-9153.
Resources:
* Profiting From Real Estate Rehab, Sandra M. Brassfield, John Wiley & Sons Inc., New York; 1992.
* Remodeling magazine's annual "Cost vs. Value Report", available for a nominal fee from the magazine; call (202) 736-3447 to order a copy.
--------------------------------------------------------------------------------
Q: Will a neighbor problem reduce the value of my property?
A: While it may not reduce the actual value, a cluttered landscape can detract from the positive aspects of your home. Review your local laws, which should be on file at the public library, county law library or City Hall.
A typical "junk vehicle" ordinance, for example, requires any disabled car to either be enclosed or placed behind a fence. And most cities prohibit parking any vehicle on a city street too long.
It also may be worthwhile to check into local zoning ordinances. An operator of a home-based business usually is required to obtain a variance or permanent zoning change in residential areas.
In addition, if a neighbor's repair work produces loud noises, he may be breaking local noise-control ordinances, which are enforced by the police department.
Before bringing in the authorities, you may want to make a copy of the pertinent ordinance and give it to your neighbor to give them a chance to correct the problem.
Resources:
* "Neighbor Law: Fences, Trees, Boundaries and Noise," Cora Jordan, Nolo Press, Berkeley, Calif.; 1991.
--------------------------------------------------------------------------------
Q: What are the pros and cons of adding on or buying new?
A: Before making a choice between adding on to an existing home or buying a larger one, consider these questions:
* How much money is available, either from cash reserves or through a home improvement loan, to remodel the current house?
* How much additional space is required? Would the foundation support a second floor or does the lot have room to expand on the ground level?
* What do local zoning and building ordinances permit?
* How much equity already exists in the property?
* Are there affordable properties for sale that would satisfy housing needs?
Ultimately, the decision should be based on individual needs, the extent of work involved and what will add the most value. According to Remodeling magazine's annual "Cost vs. Value Report," remodeling a home not only improves its livability but its curb appeal with potential buyers. The highest paybacks come from updating kitchens and baths and, most recently, adding on a home office, according to the survey.
For more information, check out "The Do-able Renewable Home," a free booklet available from the American Association of Retired Persons, Fulfillment Department, 601 E St., N.W., Washington, DC 20049; (202) 434-2277.
--------------------------------------------------------------------------------
Q: What are some guidelines to follow when trying to find a contractor?
A: While hiring contractors recommended by friends is usually a safe route, never hire a construction professional without first checking him or her out first. If your state has a licensing board for contractors, call to find out if there are any outstanding complaints against that license holder. Also, call your local Better Business Bureau to see if there are any complaints on file.
If you are satisfied with the answers you find there, interview the contractor candidates. Ask what kind of worker's compensation insurance they carry and get policy and insurance company phone numbers so you can verify the information. If they are not covered, you could be liable for any work-related injury incurred during the project. Also be sure that the contractor has an umbrella general liability policy.
If they pass the insurance hurdle, next check some of their references. A good contractor will be happy to provide as many as you want.
Finally, don't let yourself be rushed into making a decision no matter how competitive the market may seem. Also, never pay a deposit to a contractor at the first meeting. You may end up losing your money.
--------------------------------------------------------------------------------
Q: How much will I spend on maintenance expenses?
A: Experts generally agree that you can plan on annually spending 1 percent of the purchase price of your house on repairing gutters, caulking windows, sealing your driveway and the myriad other maintenance chores that come with the privilege of homeownership. Newer homes will cost less to maintain than older homes. It also depends on how well the house has been maintained over the years.
--------------------------------------------------------------------------------
Q: Where can I get a list of architects?
A: For information on architects, contact the following: American Institute of Architects, 1735 New York Avenue, N.W.; Washington, DC 20006 or call (202) 626-7300.
--------------------------------------------------------------------------------
Q: Where do I get information on remodeling?
A: Try these sources:
* National Association of the Remodeling Industry, 4301 N. Fairfax Drive, Suite 310,Arlington, VA 22203; (703) 575-1100.
* "Rehab a Home With HUD?s 203(K)," published by the U.S. Department of Housing and Urban Development, 7th and D St., S.W., Washington, DC 20410.
* "Cost vs. Value Report," by Remodeling magazine, 1 Thomas Circle, N.W., Suite 600, Washington, DC 20005. $8.95 per copy; call (202) 736-3447 for credit card orders.
* "The Do-able Renewable Home," by the Coordination and Development Department, American Association of Retired Persons, 601 E St., N.W., Washington, DC 20049.
--------------------------------------------------------------------------------
Q: What repairs should the seller make?
A: Most sellers like to make all minor repairs before going on the market in order to seek a higher sales price. In addition, nearly all purchase contracts include a buyer contingency "inspection clause," which allows a buyer to back out if numerous defects are found. Once the problems are noted, buyers can attempt to negotiate repairs or a lower price.
Wednesday, January 6, 2010
Q&A's about Selling a Home
--------------------------------------------------------------------------------
Q: Is a low offer a good idea?
A: While your low offer in a normal market might be rejected immediately, in a buyer's market a motivated seller will either accept or make a counteroffer.
Full-price offers or above are more likely to be accepted by the seller. But there are other considerations involved:
* Is the offer contingent upon anything, such as the sale of the buyer's current house? If so, a low offer, even a full price offer, may not be as attractive as an offer without that condition.
* Is the offer made on the house as is, or does the buyer want the seller to make some repairs or lower the price instead?
* Is the offer all cash, meaning the buyer has waived the financing contingency? If so, then an offer at less than the asking price may be more attractive to the seller than a full-price offer with a financing contingency.
--------------------------------------------------------------------------------
Q: What is the difference between market value and appraised value?
A: Appraised value is a certified appraiser's opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $200 and up.
Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker.
--------------------------------------------------------------------------------
Q: How does someone sell a slow mover?
A: Even in a down market, real estate experts say that price and condition are the two most important factors in selling a home.
The first step is to lower the price. Also, go through the house and see if there are cosmetic defects that you missed and can be repaired.
Secondly, home sellers should make sure that the home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage and a listing on the multiple listing service (MLS).
Another option is to pull the home off the market and wait for the market to improve.
Finally, frustrated sellers who have no equity and are forced to sell because of a divorce or financial considerations could discuss a short sale or a deed in lieu of a foreclosure with the mortgage lender.
A short sale is when the seller finds a buyer for a price that is below the mortgage amount and negotiates the difference with the lender.
In a deed-in-lieu-of-foreclosure situation, the lender agrees to take the house back without instituting foreclosure proceedings. But these would be considered more radical options than lowering the price.
--------------------------------------------------------------------------------
Q: How is the price set?
A: It's very important to price your home appropriately relative to current market conditions. Because the real estate market is continually changing, and market fluctuations have an effect on property values, it's imperative to select your list price based on the most recent comparable sales in your neighborhood.
A comparative market analysis provides the background data on which to base your list-price decision. Study the comparable sales material presented to you by the different agents you interviewed initially. If the analyses are more than two or three months old, have your agent update the report for you.
If all agents agreed on a price range for your home, go with the consensus. Watch out for an agent whose opinion of value is considerably higher than the others.
--------------------------------------------------------------------------------
Q: How do you prepare a house to sell?
A: Doing whatever you can to put your house's best face forward is very important if you want to get close to your asking price or sell as quickly as possible. Short of spending a lot of money, there are several steps people can take to make their home show better:
* Sweep the sidewalk, mow the lawn, prune the bushes, weed the garden and clean debris from the yard.
* Clean the windows (both inside and out) and make sure the paint is not chipped or flaking. And speaking of paint, if your home was built before 1978, new federal law gives a buyer the right to request a lead inspection. If you think you might have some problems, do the inspection yourself beforehand and make any fixes you can.
* Be sure that the doorbell works.
* Clean and spruce up all rooms, furnishings, floors, walls and ceilings. It's especially important that the bathroom and kitchen are spotless.
* Organize closets.
* Make sure the basic appliances and fixtures work. Get rid of leaky faucets and frayed cords.
* Make sure the house smells good: from an apple pie, cookies baking or spaghetti sauce simmering on the stove. Hide the kitty litter.
* Put vases of fresh flowers throughout the house.
* Having pleasant background music playing in the backgroun also will help set your stage.
--------------------------------------------------------------------------------
Q: What are the standard ways of finding out what a house is valued at?
A: A comparative market analysis and an appraisal are the standard ways consumers, lenders and realty agents deterimined what a home is worth.
Your real estate agent will be happy to provide a comparative market analysis, an informal estimate of value based on comparable sales in the neighborhood. You also can research "the comps" yourself by checking on recent sales in public records. Be sure that you are researching properties that are similar in size, construction and location.
This information is not only available at your local recorder's or assessor's office but also through private companies and on the Internet.
An appraisal, which generally costs $200 to $300 to perform, is a certified appraiser's opinion of the value of a home at any given time. Appraisers review numerous factors including recent comparable sales, location, square footage and construction quality.
--------------------------------------------------------------------------------
Q: What is the difference between list and sales prices?
A: The list price is the price tag put on a house in a real estate listing; it usually is only an estimate of what the seller would like to get for the property. The sales price is the amount a property actually sells for. It may be the same as the listing price, or higher or lower, depending on how accurately the property was originally priced and on market conditions.
A seller may need to adjust the listing price if there have been no offers within the first few months of the property's listing period.
--------------------------------------------------------------------------------
Q: What is the best time to buy?
A: Because many buyers prefer to move in the spring or summer, the market starts to heat up as early as February. Families with children are anxious to buy so they can move during summer vacation, before the new school year begins.
The market slows down in late summer before picking up again briefly in the fall. November and December have traditionlly been slow months, although some astute buyers look for bargains during this period.
--------------------------------------------------------------------------------
Q: What are the two most important factors when selling a home?
A: Even in a down market, real estate experts say price and condition are the two most important factors in selling a home. So, the first step is to lower the price. Also, go through the house and see if there are cosmetic defects that you missed and can be repaired.
Home sellers should make sure that the home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage and a listing on the local multiple listing service.
If the seller is using a real estate agent and the property isn't getting proper exposure, find another agent.
--------------------------------------------------------------------------------
Q: Where do I get information on housing market stats?
A: A real estate agent is a good source for finding out the status of the local housing market. So is your statewide association of REALTORS®, most of which are continuously compiling such statistics from local real estate boards.
--------------------------------------------------------------------------------
Q: What is the difference between list price, sales price and appraised value?
A: The list price is a seller's advertised price, a figure that usually is only a rough estimate of what the seller wants to get. Sellers can price high, low or close to what they hope to get. To judge whether the list price is a fair one, be sure to consult comparable sales prices in the area.
The sales price is the amount of money you as a buyer would pay for a property.
The appraisal value is a certified appraiser's estimate of the worth of a property, and is based on comparable sales, the condition of the property and numerous other factors.
Q: Is a low offer a good idea?
A: While your low offer in a normal market might be rejected immediately, in a buyer's market a motivated seller will either accept or make a counteroffer.
Full-price offers or above are more likely to be accepted by the seller. But there are other considerations involved:
* Is the offer contingent upon anything, such as the sale of the buyer's current house? If so, a low offer, even a full price offer, may not be as attractive as an offer without that condition.
* Is the offer made on the house as is, or does the buyer want the seller to make some repairs or lower the price instead?
* Is the offer all cash, meaning the buyer has waived the financing contingency? If so, then an offer at less than the asking price may be more attractive to the seller than a full-price offer with a financing contingency.
--------------------------------------------------------------------------------
Q: What is the difference between market value and appraised value?
A: Appraised value is a certified appraiser's opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $200 and up.
Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker.
--------------------------------------------------------------------------------
Q: How does someone sell a slow mover?
A: Even in a down market, real estate experts say that price and condition are the two most important factors in selling a home.
The first step is to lower the price. Also, go through the house and see if there are cosmetic defects that you missed and can be repaired.
Secondly, home sellers should make sure that the home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage and a listing on the multiple listing service (MLS).
Another option is to pull the home off the market and wait for the market to improve.
Finally, frustrated sellers who have no equity and are forced to sell because of a divorce or financial considerations could discuss a short sale or a deed in lieu of a foreclosure with the mortgage lender.
A short sale is when the seller finds a buyer for a price that is below the mortgage amount and negotiates the difference with the lender.
In a deed-in-lieu-of-foreclosure situation, the lender agrees to take the house back without instituting foreclosure proceedings. But these would be considered more radical options than lowering the price.
--------------------------------------------------------------------------------
Q: How is the price set?
A: It's very important to price your home appropriately relative to current market conditions. Because the real estate market is continually changing, and market fluctuations have an effect on property values, it's imperative to select your list price based on the most recent comparable sales in your neighborhood.
A comparative market analysis provides the background data on which to base your list-price decision. Study the comparable sales material presented to you by the different agents you interviewed initially. If the analyses are more than two or three months old, have your agent update the report for you.
If all agents agreed on a price range for your home, go with the consensus. Watch out for an agent whose opinion of value is considerably higher than the others.
--------------------------------------------------------------------------------
Q: How do you prepare a house to sell?
A: Doing whatever you can to put your house's best face forward is very important if you want to get close to your asking price or sell as quickly as possible. Short of spending a lot of money, there are several steps people can take to make their home show better:
* Sweep the sidewalk, mow the lawn, prune the bushes, weed the garden and clean debris from the yard.
* Clean the windows (both inside and out) and make sure the paint is not chipped or flaking. And speaking of paint, if your home was built before 1978, new federal law gives a buyer the right to request a lead inspection. If you think you might have some problems, do the inspection yourself beforehand and make any fixes you can.
* Be sure that the doorbell works.
* Clean and spruce up all rooms, furnishings, floors, walls and ceilings. It's especially important that the bathroom and kitchen are spotless.
* Organize closets.
* Make sure the basic appliances and fixtures work. Get rid of leaky faucets and frayed cords.
* Make sure the house smells good: from an apple pie, cookies baking or spaghetti sauce simmering on the stove. Hide the kitty litter.
* Put vases of fresh flowers throughout the house.
* Having pleasant background music playing in the backgroun also will help set your stage.
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Q: What are the standard ways of finding out what a house is valued at?
A: A comparative market analysis and an appraisal are the standard ways consumers, lenders and realty agents deterimined what a home is worth.
Your real estate agent will be happy to provide a comparative market analysis, an informal estimate of value based on comparable sales in the neighborhood. You also can research "the comps" yourself by checking on recent sales in public records. Be sure that you are researching properties that are similar in size, construction and location.
This information is not only available at your local recorder's or assessor's office but also through private companies and on the Internet.
An appraisal, which generally costs $200 to $300 to perform, is a certified appraiser's opinion of the value of a home at any given time. Appraisers review numerous factors including recent comparable sales, location, square footage and construction quality.
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Q: What is the difference between list and sales prices?
A: The list price is the price tag put on a house in a real estate listing; it usually is only an estimate of what the seller would like to get for the property. The sales price is the amount a property actually sells for. It may be the same as the listing price, or higher or lower, depending on how accurately the property was originally priced and on market conditions.
A seller may need to adjust the listing price if there have been no offers within the first few months of the property's listing period.
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Q: What is the best time to buy?
A: Because many buyers prefer to move in the spring or summer, the market starts to heat up as early as February. Families with children are anxious to buy so they can move during summer vacation, before the new school year begins.
The market slows down in late summer before picking up again briefly in the fall. November and December have traditionlly been slow months, although some astute buyers look for bargains during this period.
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Q: What are the two most important factors when selling a home?
A: Even in a down market, real estate experts say price and condition are the two most important factors in selling a home. So, the first step is to lower the price. Also, go through the house and see if there are cosmetic defects that you missed and can be repaired.
Home sellers should make sure that the home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage and a listing on the local multiple listing service.
If the seller is using a real estate agent and the property isn't getting proper exposure, find another agent.
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Q: Where do I get information on housing market stats?
A: A real estate agent is a good source for finding out the status of the local housing market. So is your statewide association of REALTORS®, most of which are continuously compiling such statistics from local real estate boards.
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Q: What is the difference between list price, sales price and appraised value?
A: The list price is a seller's advertised price, a figure that usually is only a rough estimate of what the seller wants to get. Sellers can price high, low or close to what they hope to get. To judge whether the list price is a fair one, be sure to consult comparable sales prices in the area.
The sales price is the amount of money you as a buyer would pay for a property.
The appraisal value is a certified appraiser's estimate of the worth of a property, and is based on comparable sales, the condition of the property and numerous other factors.
Tuesday, January 5, 2010
Understanding Different Types of Loans
Today's homebuyer has more financing options than have ever been available before. From traditional mortgages to adjustable-rate and hybrid loans, there are financing packages designed to meet the needs of virtually anyone.
While the different choices may seem overwhelming at first, the overall goal is really quite simple: you want to find a loan that fits both your current financial situation and your future plans. Though this article discusses some of the more common loan types, you should spend time talking with different lenders before deciding on the right loan for your situation.
General categories of loans
Most loans fall into three major categories: fixed-rate, adjustable-rate, and hybrid loans that combine features of both.
Fixed-rate mortgages
As the name implies, a fixed-rate mortgage carries the same interest rate for the life of the loan. Traditionally, fixed-rate mortgages have been the most popular choice among homeowners, because the fixed monthly payment is easy to plan and budget for, and can help protect against inflation. Fixed-rate mortgages are most common in 30-year and 15-year terms, but recently more lenders have begun offering 20-year and 40-year loans.
Adjustable-rate mortgages (ARM)
Adjustable-rate mortgages differ from fixed-rate mortgages in that the interest rate and monthly payment can change over the life of the loan. This is because the interest rate for an ARM is tied to an index (such as Treasury Securities) that may rise or fall over time. In order to protect against dramatic increases in the rate, ARM loans usually have caps that limit the rate from rising above a certain amount between adjustments (i.e. no more than 2 percent a year), as well as a ceiling on how much the rate can go up during the life of the loan (i.e. no more than 6 percent). With these protections and low introductory rates, ARM loans have become the most widely accepted alternative to fixed-rate mortgages.
Hybrid loans
Hybrid loans combine features of both fixed-rate and adjustable-rate mortgages. Typically, a hybrid loan may start with a fixed-rate for a certain length of time, and then later convert to an adjustable-rate mortgage. However, be sure to check with your lender and find out how much the rate may increase after the conversion, as some hybrid loans do not have interest rate caps for the first adjustment period.
Other hybrid loans may start with a fixed interest rate for several years, and then later change to another (usually higher) fixed interest rate for the remainder of the loan term. Lenders frequently charge a lower introductory interest rate for hybrid loans vs. a traditional fixed-rate mortgage, which makes hybrid loans attractive to homeowners who desire the stability of a fixed-rate, but only plan to stay in their properties for a short time.
Balloon payments
A balloon payment refers to a loan that has a large, final payment due at the end of the loan. For example, there are currently fixed-rate loans which allow homeowners to make payments based on a 30-year loan, even though the entire balance of the loan may be due (the balloon payment) after 7 years. As with some hybrid loans, balloon loans may be attractive to homeowners who do not plan to stay in their house more than a short period of time.
Time as a factor in your loan choice
As has been discussed, the length of time you plan to own a property may have a strong influence on the type of loan you choose. For example, if you plan to stay in a home for 10 years or longer, a traditional fixed-rate mortgage may be your best bet. But if you plan on owning a home for a very short period (5 years or less), then the low introductory rate of an adjustable-rate mortgage may make the most financial sense. In general, ARMs have the lowest introductory interest rates, followed by hybrid loans, and then traditional fixed-rate mortgages.
FHA and VA loans
U.S. government loan programs such as those of the Federal Housing Authority (FHA) and Department of Veterans Affairs (VA) are designed to promote home ownership for people who might not otherwise be able to qualify for a conventional loan. Both FHA and VA loans have lower qualifying ratios than conventional loans, and often require smaller or no down payments.
Bear in mind, however, that FHA and VA loans are not issued by the government; rather, the loans are made by private lenders. FHA loans are insured to the actual lender and VA loans are guaranteed in case the borrower defaults. Remember too, that while any U.S. citizen may apply for a FHA loan, VA loans are only available to veterans or their spouses and certain government employees.
Conventional loans
A conventional loan is simply a loan offered by a traditional private lender. They may be fixed-rate, adjustable, hybrid or other types. While conventional loans may be harder to qualify for than government-backed loans, they often require less paperwork and typically do not have a maximum allowable amount.
If you have a question/comment or concern, please feel free to post a comment. We will get you an answer.
While the different choices may seem overwhelming at first, the overall goal is really quite simple: you want to find a loan that fits both your current financial situation and your future plans. Though this article discusses some of the more common loan types, you should spend time talking with different lenders before deciding on the right loan for your situation.
General categories of loans
Most loans fall into three major categories: fixed-rate, adjustable-rate, and hybrid loans that combine features of both.
Fixed-rate mortgages
As the name implies, a fixed-rate mortgage carries the same interest rate for the life of the loan. Traditionally, fixed-rate mortgages have been the most popular choice among homeowners, because the fixed monthly payment is easy to plan and budget for, and can help protect against inflation. Fixed-rate mortgages are most common in 30-year and 15-year terms, but recently more lenders have begun offering 20-year and 40-year loans.
Adjustable-rate mortgages (ARM)
Adjustable-rate mortgages differ from fixed-rate mortgages in that the interest rate and monthly payment can change over the life of the loan. This is because the interest rate for an ARM is tied to an index (such as Treasury Securities) that may rise or fall over time. In order to protect against dramatic increases in the rate, ARM loans usually have caps that limit the rate from rising above a certain amount between adjustments (i.e. no more than 2 percent a year), as well as a ceiling on how much the rate can go up during the life of the loan (i.e. no more than 6 percent). With these protections and low introductory rates, ARM loans have become the most widely accepted alternative to fixed-rate mortgages.
Hybrid loans
Hybrid loans combine features of both fixed-rate and adjustable-rate mortgages. Typically, a hybrid loan may start with a fixed-rate for a certain length of time, and then later convert to an adjustable-rate mortgage. However, be sure to check with your lender and find out how much the rate may increase after the conversion, as some hybrid loans do not have interest rate caps for the first adjustment period.
Other hybrid loans may start with a fixed interest rate for several years, and then later change to another (usually higher) fixed interest rate for the remainder of the loan term. Lenders frequently charge a lower introductory interest rate for hybrid loans vs. a traditional fixed-rate mortgage, which makes hybrid loans attractive to homeowners who desire the stability of a fixed-rate, but only plan to stay in their properties for a short time.
Balloon payments
A balloon payment refers to a loan that has a large, final payment due at the end of the loan. For example, there are currently fixed-rate loans which allow homeowners to make payments based on a 30-year loan, even though the entire balance of the loan may be due (the balloon payment) after 7 years. As with some hybrid loans, balloon loans may be attractive to homeowners who do not plan to stay in their house more than a short period of time.
Time as a factor in your loan choice
As has been discussed, the length of time you plan to own a property may have a strong influence on the type of loan you choose. For example, if you plan to stay in a home for 10 years or longer, a traditional fixed-rate mortgage may be your best bet. But if you plan on owning a home for a very short period (5 years or less), then the low introductory rate of an adjustable-rate mortgage may make the most financial sense. In general, ARMs have the lowest introductory interest rates, followed by hybrid loans, and then traditional fixed-rate mortgages.
FHA and VA loans
U.S. government loan programs such as those of the Federal Housing Authority (FHA) and Department of Veterans Affairs (VA) are designed to promote home ownership for people who might not otherwise be able to qualify for a conventional loan. Both FHA and VA loans have lower qualifying ratios than conventional loans, and often require smaller or no down payments.
Bear in mind, however, that FHA and VA loans are not issued by the government; rather, the loans are made by private lenders. FHA loans are insured to the actual lender and VA loans are guaranteed in case the borrower defaults. Remember too, that while any U.S. citizen may apply for a FHA loan, VA loans are only available to veterans or their spouses and certain government employees.
Conventional loans
A conventional loan is simply a loan offered by a traditional private lender. They may be fixed-rate, adjustable, hybrid or other types. While conventional loans may be harder to qualify for than government-backed loans, they often require less paperwork and typically do not have a maximum allowable amount.
If you have a question/comment or concern, please feel free to post a comment. We will get you an answer.
Monday, January 4, 2010
Are you a Lender, Home Inspector or Real Estate Attorney?
Please note - if you are one of the above 3, please make sure you indicate that in every posting related to questions/concerns directed to your expertise so that others know this.
I also want to point out to all bloggers. If you are currently working with a Real Estate Professional, please direct questions to your Real Estate Professional along with disclosing that you are working with an agent on our forum prior to posting a question/concern or comment.
Let's start 2010 about mortgage lending and the tax incentive for buyers whether they are first time or repeat buyers.
I also want to point out to all bloggers. If you are currently working with a Real Estate Professional, please direct questions to your Real Estate Professional along with disclosing that you are working with an agent on our forum prior to posting a question/concern or comment.
Let's start 2010 about mortgage lending and the tax incentive for buyers whether they are first time or repeat buyers.
We are CT's Real Estate Experts.
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