5 Things to Do Before You Sell

1. Get estimates from a reliable repairperson on items that need to be replaced soon, a roof or worn carpeting, for example. In this way, buyers will have a better sense of how much these needed repairs will affect their costs. I have had a couple clients not heed this and when the inspection came through they were unprepared for amount of work that had to be done prior to closing.

2. Have a termite inspection to prove to buyers that the property is not infested.  If you were buying buying a home wouldn’t you expect it?

3. Get a pre-sale home inspection so you’ll be able to make repairs before buyers become concerned and cancel a contract.  This is one of the things that will cost you a couple hundred dollars upfront, but may gain you thousands for your sell price. 

4. Gather together warranties and guarantees on the furnace, appliances, and other items that will remain with the house.

5. Fill out a disclosure form provided by your sales associate. Take the time to be sure that you don’t forget problems, however minor, that might create liability for you after the sale.  This is one of the items that should remain between you and your agent. 

Why Should You Use a REALTOR?

Not all Real Estate Practitioners are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIOAL ASSOCIATION OF REALTORS® and subscribes to its strict Codes of Ethics. Here are five reasons why it pays to work REALTOR®.

1. You will have an expert to guide you through the process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.

2. Get objective information and opinions. REALTORS® can provide local community information on utilities, zoning, schools, and more. They will also be able to provide objective information about each property. A professional will be able to help you answer important questions:

Will the property provided the environment I want for a home?

Will this property provided an environment I want from the investment?

Will the property have resale value when I am ready to sell?

Is this property over priced?

3. Find the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR® to find all available properties.

4. Benefit from their negotiating experience. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Property marketing power. Real Estate does not sell due to advertising alone. In fact, a large share of real estate sales come as a result of a practitioner’s contact through previous clients, referrals, friends, and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

6. Real Estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the Real Estate language.

7. REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. Even if you have done it before, laws and regulations change, REALTORS® on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.

8. Buying and selling is emotional. A home often symbolizes family, rest, and security- it’s not just four walls and a roof. Because of this, home buying and selling can be an emotional undertaking. For most people, a home is the biggest purchase they will ever make. Having a concerned, buy objective, third party helps you stay focused on both the emotional and financial issues most important to you.

9. Ethical treatment. Every member of the NATIONAL ASSOCIATION OF REALTORS® makes a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. As a customer of a REALTOR® you can expect honest and ethical treatment in all transaction-related matters. It is mandatory for REALTORS® to take the Code of Ethics orientation and they are also required to complete a refresher course every four years.

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Copyright 2008. All rights reserved.

The Easiest way to Loss Your Dream Home

A friend of mine got married recently.  He and his wife both owned homes and they decided to sell his.  While they can afford both homes selling his will allow them more money to enjoy their lives. 

We had it listed at the current market value, he didn’t need to make a lot of money he just wanted to sell it.  An agent brought a young couple to the house and they have fallen in love with it.  Now this young couple did No research on the agent they’re using.  Their mortgage person simply suggested someone, his mother-in-law actually, and without question they’re using her. 

Now we are less than 4 days away from the closing date and they are about to loss their earnest money, their dream home, and possibly their ability to even get into a home. 

Their agent has forgotten a number crucial items including getting me a list of things from the buyer that they would like repaired or replaced.  We received it one week before the closing, this may not be enough time to get everything done prior to the final walkthrough.  There are a number of things that are still left open and only when the last signature is on the last page will i believe it is over. 

I have a second offer on the house and i will be discussing with my client whether to simply pass up on the agent who is not doing her job and take the second offer. 

DON’T LOSS YOUR HOME BECAUSE OF A BAD AGENT.

$8000 of free money

This is the last week to get the $8000 of free money from the Federal Government ($6,500 for those who already own a home).  If you haven’t already, get with a REALTOR and find your new home. 

7 Reasons to Own a Home

1. Tax Breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the cost involved in buying your home.

2. Appreciation. Real Estate has Long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5% each year from 1972 through 2005, and increased 88.5% over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15% over the next decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you will never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. When you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payment don’t rise over the years so your housing cost many actually decline as you own your home longer. However, keep in mind that your property taxes and insurance cost may increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activates, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

An online resource that my be useful to visualize the best option for you is the “Buy vs. Rent” calculator at www.GinnieMae.gov.

LiveInAlabama.com

This is a Beautiful 107 Acre lot just outside the Fern Creek Community.
LiveInAlabama.com

Taking the Stress Out of Buying a Home

Buying your home should be fun, NOT STESSFUL.  As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.

1.  Find a Real Estate Agent who you connect with.  Home buying is not only a big financial commitment, but also an emotional one.  It is critical that the REALTOR® you shoes is both highly skilled and a good fit with your personality.

2.  Remember, there’s no “right” time to buy, just as there’s no perfect time to sell.  If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer, you risk losing out on the home of your dreams.  The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won't stay on the market long.

3.  Don’t ask for too many opinions.  It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision.  Focus on the wants and needs of your immediate family- the people who will be living in the home.

4.  Accept that no house is ever perfect.  If it’s in the right location, the yard may be a bit smaller than you had hoped.  The kitchen may be perfect, but the roof needs repair.  Make a list of your tope priorities and focus in on things that are most important to you.  Let the minor ones go.

5.  Don’t try to be a killer negotiator.  Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love.  Negotiation is give and take, and your REALTOR® is there to do this for you while still getting you the home of your dreams.

6.  Remember your home does not exist in a vacuum.  Don’t get so caught up in the physical aspects of the house itself-room size, kitchen, etc.- that you forget about important issues like noise level, location to amenities, and many other aspects that also have a big impact on your quality of life.

7.  Plan ahead.  Don’t wait until you’ve found a home and make an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving.  Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

8.  Factor in maintenance and repair cost in your post-home buying budget.  Even if you buy a new home, there will be costs.  Don’t leave yourself short and let your home deteriorate.

9.  Accept that a little buyer’s remorse is inevitable and will probably pass.  Buying a home, especially for the fist time, is a big financial commitment.  But, it also yields big benefits.  Don’t lose sight of why you wanted to buy a home and what make you fall in love with the property you purchased.

10.  Choose a home first because you love it; then think about appreciation.  While U.S. homes have appreciated an average of 5.4% annually from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®.
Copyright 2008. All rights reserved.

Lose Thousands by saving a little

Months ago I had and old friend call me about needing to put his house on the market.  We met for dinner that night to talk about what was going on and he told me that his company was moving him and he had to be gone in a few months.  I set out to put his home on the market and get things started. 

A couple days later he called to tell me that his company had a referral service that sent him an agent.  I tried to explain that he could use whoever he wanted and needed to find out a little more about the agent before allowing them to take on the sell of his house.  He works hard at what he does and thus wanted as little to do with the sell as possible.  The other agent promised the sky and the moon and told him how easy it was going to be for him. 

A couple days ago he called me.  No one has given him an offer on his home and he is now paying for his mortgage here and rent in his new town.  He couldn’t buy a new home there because he still has this one.  He sounded exhausted and told me all that he had been doing to “help” his agent.  Right now his house is $25,000 less than it was originally. 

It still astounds me that people think all agents are the same and that going with the cheapest one is the only factor to care about. “You get what you pay for.” is more true here than anywhere.  You’re giving your largest investment to someone and trusting that they are doing all they can to sell your home for the most money.  I’ve been at this a little less time than some, BUT my longest house was only on the market for 113 days.  How many agents do you think can say that?  

I may be taking over the sell of his house, but odds are had he hired me to start with he would be happy in his new home and not still dealing with the sell of his home here.  And if i take it, it will be harder to sell for the best price since it has been on the market now for so long and the price has been lowered so much.

Last Chance

Last year the federal government took a huge step in helping the economy by extending the home buyer tax credit.  But this is the final month.  If you are thinking about buying a home in the next six months give me a call because there must be a contract on your new home within the month. 

Give me a call, allow me to help.