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Monday, December 17, 2012

Happy 2012 Holidays and Warm Season’s Greetings!



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To all our cherished friends, neighbors, family and clients – we are so proud to have been able to work with you and be a part of your lives! As we end this year and turn to the exciting time and events that 2013 holds, we just wanted to take a moment to thank you for all that you bring to our lives.

We have some really great plans in the coming year to bring more success to all your real estate endeavors. And with each transaction that makes it to the closing table in the coming months and years ahead – we know that there will continue to be new and exciting things to follow for all of us.

On behalf of the entire group – Happy Holidays, Season’s Greetings, Peace and Joy!

Friday, October 5, 2012

What's a Real Estate 'Short Sale' and Why Should I Buy One?



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The best way to explain a short sale is with an example:

Assume a homeowner has an unpaid loan mortgage balance of $200,000, but the property will sell for only $175,000. The lender holding the mortgage agrees to sell the house for the $175,000 amount, which, of course, leaves it “short” of the full amount of $200,000. Thus, the name “short sale!”

Obviously, lenders don’t like short sales since they’re not in business to lose money. But such situations do occur for various reasons often related to “hardship” situations. Examples include:

• Permanent injuries
• Financial insolvency
• Job layoffs, etc.

This is a sad situation for the homeowner, but it does offer an opportunity for you to pick up a bargain. However, there are several potential downsides you should be aware of before you make an offer.

Pitfall 1: Allow time for the lender’s decision.
Once your offer is accepted by the seller, the contract will be sent to the seller’s lender for approval. This process can take anywhere from 2 to 12 months, and there’s oftentimes no way to know beforehand exactly how long the lender will take.

Pitfall 2: The lender is under no obligation to accept the short sale.
Often times, lenders will come back with a counter of a higher price, or will sometimes reject the offer outright. There is no way to know beforehand exactly what the lender is thinking. This risk can be reduced by pre-qualifying the seller and making sure he or she has a genuine hardship, and by making sure you offer close to market value.

Pitfall 3: The seller must be committed to the process.
A great deal of paperwork and commitment will be required of the seller. There have been cases where the seller does not complete everything that is necessary and causes the lender to reject the deal. Additionally, there have been cases where the seller backs out to declare bankruptcy. Make sure the seller is committed to the process before you begin!

Summary

You can pick up great bargains in the short sale market, but you have to be very knowledgeable and very patient! And, as mentioned earlier, there are risks and often times you will face disappointment. Hiring a professional realtor who has experience with the ins and outs of short sales can help reduce these risks.

Thursday, September 20, 2012

Tips for Pre-Sale Preparedness



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What do we do when we are looking for love, go out to meet others and attract their interest?  We make sure we look our best, present our best effort and highlight our endearing qualities to “reel in” the perfect catch.  The real estate market is no different.  When you are selling a home, you are looking for the perfect buyers to show interest in your home and you hope to share with them what it is you love about the house.

Like meeting a new person in the dating scene, selling a home can be a hit or miss game but unless you make the effort to present your home in the best light, you may be in for a string of not-so-perfect buyers that are less than interested in making an offer.  Here are some things you can do to make sure that buyers get that twinkle in their eye when they first set their sights on your home.

Make Them Love It At First Sight
The old adage about not judging a book by its cover certainly does apply to properties but the last thing you want to do is lose a potential sale because you haven’t paid attention to first impressions.  Most homeowners these days have watched some HGTV and one of the things that come up in many of their shows is “curb appeal”. Curb appeal refers to how attractive or enticing the exterior of a home is in terms of landscaping, the driveway area, front porch, entryway, garage and other exterior features.

It goes without saying that you should repair any damage and clean up areas that are out of sorts.  Adding soft touches like some flowers or even some professional landscaping can also make a world of difference in buyers’ impressions of the home.  If you are showing a home after dark, one thing you can do is to turn on exterior lights, creating an appealing peek through as people first drive up to the home.

Keep Things Classic, Clean and Clutter-Free
Nothing is more of a turn off to buyers than a home filled with too much stuff. The last thing buyers want to see is closets and counter space bursting at the seams with too many things, an over-abundance of personal items or a mismatched and unattractive arrangement of furniture.  Classic, simple décor with clean lines and neutral colors is most appealing. Not only does this allow them to see the actual house but it also gives them the opportunity to visualize their own customization in the space. 

Walk through the home and remove all extra items that are lying around, clear off kitchen counters and remove all personal items from bathrooms and other surfaces.  Imagine walking into the perfect hotel room – while looking lived-in, the space is still elegant without too many things crowding the space. 

Highlight the Home’s Features
Whether showing off shiny granite countertops, impeccable resurfaced wood floors or displaying the backyard pool – it is important for buyers to be able to see all that the home offers in terms of amenities and features.  If the walkout basement is a strong selling feature, you could clear the area and pose potential uses for the space such as making it a media room or workout area.  When buyers see versatility with which the space is utilized it will create more interest in your home.

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Remember, buying a home is just like finding a new love.  There must be chemistry.  And unless you make the effort to present the home in its best light, chances are you will not find the perfect buyer.

Friday, September 7, 2012

Market Update - September 2012



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As we transition into the final quarter of the year, we are seeing some positive changes in our marketplace. Overall, things are headed in the right direction. Plus with the 2012 Presidential Election around the corner there are some good things to be expected with the economy. Taking a look at the number of available properties on the market, the time it takes for homes to receive an offer, interest rates and more – we can safely say that things are turning around. Here is a closer look at these statistics with respect to these important aspects of the market.

Fewer Homes Available on the Market
Looking at the same time last year, we are seeing fewer homes available on the market. What this is does is to increase demand which in turn then acts to increase home prices. This trend has been seen across the nation and is emulating in our own neighborhoods as well – paving the way for an even stronger market in the months ahead.

Number of Sales Continue to Rise
This year we have seen an increase in the number of sales with 194 till date as opposed to 184 in 2011 within the same time frame. This indicates better consumer confidence as well as buyers tapping into the resources and programs out there available to them. Buyers are eager to lock in historically low interest rates and sales are happening.

Short Sale Process Becoming More Streamlined
There have been some recent changes on a national level in terms of short sales where the National Association of Realtors’ President engaged in talks with the FHFA to help simplify the short sale process. In our local marketplace, short sales have been moving faster and relatively smoothly – owing to banks’ desire to shorten escrow time frames. Conversely, we are seeing an increase in the number of short sales however with smoother processing it will likely be less cumbersome.

Interest Rates Still Very Low
We are still seeing all time low interest rates that are making it more affordable than ever before to own a home. Right now buyers can get anywhere from 3.5% to 4% on a 30-year fixed rate loan. In addition, there are mortgage programs where buyers are only required to make a 3.5% down payment, making it possible for a much wider spectrum of buyers to own a home.

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All in all, we are looking at good market conditions. The number of days it takes to sell a home is shorter (just 65 days) in our office than our region’s average of 100 days. If you have been on the fence about selling your home, now is a good time to re-evaluate your situation with how it relates to the factors mentioned in this article. Without a doubt, this is also still the best time to buy a property considering prices and interest rates.

For a custom consultation to discuss your needs, contact us today – we welcome the opportunity to serve you!

Tuesday, July 24, 2012

What Determines the Value of Your Home?



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

External Factors 

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

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

Supply and Demand 

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

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

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

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

1. ) The Local Assessor's Office
 
 

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

2.) Online Private Companies
 
 

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


3.) Your Local Newspaper
 
 

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


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


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