In todays Real Estate market in Phoenix, AZ, many buyers feel they can offer any price and the seller will have to accept, given market conditions. That was arguably true 2 years ago. Last year, however, was a turning point for Real Estate in Phoenix.
Over the last year, the available inventory of homes on the Phoenix AZ MLS fell by over 40%. Prices stabilized, and actually began rising at the end of the year. Recent statistics show even foreclosure prices have increased almost 2.5 % from Jan 2010 to Feb 2010.
In short, the tides are turning. To get an offer accepted, it needs to be a reasonable offer..."lowball" offers are typically rejected, and if not, usually result in a "retaliatory" counter offer, close to full price.
To ensure success, make it a win-win with both parties feeling they
have been treated fairly.
One of the best reasons to hire a real estate agent is that an
agent represents you and negotiates on your behalf. Agents act as
buffers, negotiators and advisers to help make the purchase process
a pleasurable experience.
When you make an offer, the seller can accept, decline, or counter
it. The best tips to ensure that your offer is accepted include:
1. Be pre-approved by a lender
2. Provide a substantial deposit
3. Limit your contingencies
4. Offer a fair price. Bargain, but realize that in most instances in Phoenix AZ
real estate today, the seller is not desperate.
My goal is to get you the best home under the best conditions at the best price. I will negotiate on your behalf, working hard to help you make a
smart buy.
The best negotiations are those in which the buyer and seller feel
the transaction was fair. The seller gets to move on and you get a
new home!
I'll be happy to answer any additional questions you might have
about the negotiation process. When you are ready to purchase a new
home in the Metro Phoenix, AZ area, give us a call to see what we can do for you.
Wednesday, March 3, 2010
Thursday, February 18, 2010
What's Really Happening in Real Estate
Welcome to another "Ground Zero" report on Real Estate in Phoenix Az. I've been getting alot of questions about where we are heading in the coming year. While I don't have a crystal ball, here is what I see coming, in my opinion.
We finished up 2009 with increased sales. Total Inventory of homes was cut by 1/3 to 1/2, depending on the report. While Foreclosures still dominated, and filled the market, buyer demand ate up the extra inventory, and kept prices stable. In fact, from Sept 09 through Nov 09, prices if Real Estate in Phoenix Az rose 3.5%.
The year 2010 is shaping up to be very similar. There are alot of foreclosures still due to come on the market, but I think banks have learned that flooding the market with all of them, at once, is bad for the market, and for them. It is my opinion they will continue to release them at a slower, steadier pace.
Another thing that banks have learned about Real Estate in Phoenix AZ is that fixed up homes sell better, and for more, than trashed ones. I see a trend developing where banks paint and carpet foreclosed homes, and make some repairs as needed, prior to selling them. This way they can sell for more, recouping their costs and then some. Not all banks are doing this, but some are.
And, as I said in earlier blog, 2010 will be a year of short sales. In fact, I had my first situation this past week where a bank came to client of mine, and THEY SUGGESTED A SHORT SALE IN LIEU OF A LOAN MODIFICATION!That has never happened in my experience before, but is a sign of banks being more proactive this year in the Phoenix AZ Real Estate Market, to prevent foreclosures.
Sales were a bit slower in January but February has been strong, and indicators are that they will continue to be for the coming year. Forecasters predict a 5% rise in Metro Phoenix AZ Real Estate prices in 2010,and that, along with predicted higher mortgage interest rates, suggests it is a good time to buy and invest.
We finished up 2009 with increased sales. Total Inventory of homes was cut by 1/3 to 1/2, depending on the report. While Foreclosures still dominated, and filled the market, buyer demand ate up the extra inventory, and kept prices stable. In fact, from Sept 09 through Nov 09, prices if Real Estate in Phoenix Az rose 3.5%.
The year 2010 is shaping up to be very similar. There are alot of foreclosures still due to come on the market, but I think banks have learned that flooding the market with all of them, at once, is bad for the market, and for them. It is my opinion they will continue to release them at a slower, steadier pace.
Another thing that banks have learned about Real Estate in Phoenix AZ is that fixed up homes sell better, and for more, than trashed ones. I see a trend developing where banks paint and carpet foreclosed homes, and make some repairs as needed, prior to selling them. This way they can sell for more, recouping their costs and then some. Not all banks are doing this, but some are.
And, as I said in earlier blog, 2010 will be a year of short sales. In fact, I had my first situation this past week where a bank came to client of mine, and THEY SUGGESTED A SHORT SALE IN LIEU OF A LOAN MODIFICATION!That has never happened in my experience before, but is a sign of banks being more proactive this year in the Phoenix AZ Real Estate Market, to prevent foreclosures.
Sales were a bit slower in January but February has been strong, and indicators are that they will continue to be for the coming year. Forecasters predict a 5% rise in Metro Phoenix AZ Real Estate prices in 2010,and that, along with predicted higher mortgage interest rates, suggests it is a good time to buy and invest.
Thursday, February 4, 2010
Make the Right Move, into the Right House For You
Last time we met, we discussed the one surprising thing to consider when buying a new home. Today, we think about the more day to day things to consider. There are many choices when thinking about buying Real Estate in Phoenix Metro Area:
Home Type: Are you looking for a single family, a multi
family, a condo, an invesment property? Are you looking for a new
construction or previously owned? If you are looking for a
previously owned, how old? There are advantages and disadvantages.
Location: What is your commute? Are you looking for views?
Large or small lot? Close to major streets or off the beaten path?
Size and Floor Plan: How big? How will you live in and use
the space. For example, do you want four bedrooms because you have
three children? Or will you use the extra bedrooms for a guest room
and separate office or hobby space? How you live in and use your
home will determine the size, configuration, and floor plan you
need.
Fixer-Upper: Do you want a fixer-upper? Are you looking
for an investment property? It's a great way to accumulate instant
equity. Consider financing. Beware: the cost may outweigh the
reward.
Special Features: Make sure the home has any special
features you may require, such as RV parking, central air, a
main-floor bedroom, or disability features. Are you looking for a
pool or spa?
Family Space: Family activities often center around the
kitchen, so this may be the most important room in the house.
Larger kitchens are usually better. If the home is a resale, have
the kitchens and baths been updated? How much space do you want in
your kitchen? Do you like the layout? Are new appliances important
to you?
There are a million things to consider when buying a home. You know what the number one consideration usually is, in the end? How does the home "feel" to you. Yes, it has to have all the right components, but in the end, out of the homes that DO have the right components, you pick the one that "feels" like home. So when you are out looking at homes, pay attantion to the various factors that matter, like size, location, etc. Just don't forget to notice how it "feels".
Home Type: Are you looking for a single family, a multi
family, a condo, an invesment property? Are you looking for a new
construction or previously owned? If you are looking for a
previously owned, how old? There are advantages and disadvantages.
Location: What is your commute? Are you looking for views?
Large or small lot? Close to major streets or off the beaten path?
Size and Floor Plan: How big? How will you live in and use
the space. For example, do you want four bedrooms because you have
three children? Or will you use the extra bedrooms for a guest room
and separate office or hobby space? How you live in and use your
home will determine the size, configuration, and floor plan you
need.
Fixer-Upper: Do you want a fixer-upper? Are you looking
for an investment property? It's a great way to accumulate instant
equity. Consider financing. Beware: the cost may outweigh the
reward.
Special Features: Make sure the home has any special
features you may require, such as RV parking, central air, a
main-floor bedroom, or disability features. Are you looking for a
pool or spa?
Family Space: Family activities often center around the
kitchen, so this may be the most important room in the house.
Larger kitchens are usually better. If the home is a resale, have
the kitchens and baths been updated? How much space do you want in
your kitchen? Do you like the layout? Are new appliances important
to you?
There are a million things to consider when buying a home. You know what the number one consideration usually is, in the end? How does the home "feel" to you. Yes, it has to have all the right components, but in the end, out of the homes that DO have the right components, you pick the one that "feels" like home. So when you are out looking at homes, pay attantion to the various factors that matter, like size, location, etc. Just don't forget to notice how it "feels".
Sunday, January 17, 2010
A Surprising Thing to Consider When Buying!!!
It's hard to believe you need to consider your next move before
purchasing a new home! However, it is always smart to shop for a new home with an eye on potential resale value down the road. While I can't predict what the future will bring, here are some simple things you can look for:
Views: Homes with a view often sell for a premium. This can be a
double edge sword as beauty is in the eye's of the beholder. Not
all buyers will place the same premium on views.
Lot Size and Shape: Level or rectangular lots are the most desirable. Much of the value in real estate is in the home, not
the landscape. As a buyer, do not pay a premium for someone else's
landscaping efforts.
Neighborhoods: Buy a smaller house in a nicer neighborhood. Rather
than buy a large home with smaller homes around it, buy a smaller
home surrounded by larger homes. This will improve your
appreciation opportunities.
Closets: Closet space is always an issue.
Kitchens and Baths: A spacious, updated kitchen is among the most
important features in a home. Updated baths are also important.
Garages: The bigger the better.
Backyard Features: Decks and patios generally yield almost a
dollar-for-dollar return.
Remember, what may not matter to you could matter to most other buyers. This is where buyers usually wade into trouble. I'm reminded of a client who wanted to buy a home against a busy street, saying the traffic noise did not matter to them a bit. What they did not consider is that it DOES bother the majority of homebuyers. People that would come to look at their home, when they are ready to sell, would be turned off by the noise. That's why these homes take longer to sell, and sell for 5-10% less than comparable homes, typically. What you don't think about can cost you money!
I'd be happy to answer any questions you have and show you
properties that meet your needs. Please call or email me when you
are ready to look for a new home.
purchasing a new home! However, it is always smart to shop for a new home with an eye on potential resale value down the road. While I can't predict what the future will bring, here are some simple things you can look for:
Views: Homes with a view often sell for a premium. This can be a
double edge sword as beauty is in the eye's of the beholder. Not
all buyers will place the same premium on views.
Lot Size and Shape: Level or rectangular lots are the most desirable. Much of the value in real estate is in the home, not
the landscape. As a buyer, do not pay a premium for someone else's
landscaping efforts.
Neighborhoods: Buy a smaller house in a nicer neighborhood. Rather
than buy a large home with smaller homes around it, buy a smaller
home surrounded by larger homes. This will improve your
appreciation opportunities.
Closets: Closet space is always an issue.
Kitchens and Baths: A spacious, updated kitchen is among the most
important features in a home. Updated baths are also important.
Garages: The bigger the better.
Backyard Features: Decks and patios generally yield almost a
dollar-for-dollar return.
Remember, what may not matter to you could matter to most other buyers. This is where buyers usually wade into trouble. I'm reminded of a client who wanted to buy a home against a busy street, saying the traffic noise did not matter to them a bit. What they did not consider is that it DOES bother the majority of homebuyers. People that would come to look at their home, when they are ready to sell, would be turned off by the noise. That's why these homes take longer to sell, and sell for 5-10% less than comparable homes, typically. What you don't think about can cost you money!
I'd be happy to answer any questions you have and show you
properties that meet your needs. Please call or email me when you
are ready to look for a new home.
Sunday, January 3, 2010
27 Tips to Sell Your Home Fast in the New Year
27 Tips You Should Know To Get Your Home Sold Fast and For Top Dollar
"...discover how to protect and capitalize on your most important investment.."
Because your home may well be your largest asset, selling it is probably one of the most important decisions you will make in your life. To better understand the homeselling process, a guide has been prepared from current industry insider reports. Through these 27 tips you will discover how to protect and capitalize on your most important investment, reduce stress, be in control of your situation, and make the most profit possible.
1. Understand Why You Are Selling Your Home
Your motivation to sell is the determining factor as to how you will approach the process. It affects everything from what you set your asking price at to how much time, money and effort you're willing to invest in order to prepare your home for sale. For example, if your goal is for a quick sale, this would determine one approach. If you want to maximize your profit, the sales process might take longer thus determining a different approach.
2. Keep the Reason(s) You are Selling to Yourself
The reason(s) you are selling your home will affect the way you negotiate its sale. By keeping this to yourself you don't provide ammunition to your prospective buyers. For example, should they learn that you must move quickly, you could be placed at a disadvantage in the negotiation process. When asked, simply say that your housing needs have changed. Remember, the reason( s) you are selling is only for you to know .
3. Before Setting a Price - Do Your Homework
When you set your price, you make buyers aware of the absolute maximum they have to pay for your home. As a seller, you will want to get a selling price as close to the list price as possible. If you start out by pricing too high you run the risk of not being taken seriously by buyers and their agents. If you are pricing too low it can result in selling for much less than you were hoping for.
Setting Your Home's Sale Price
If You Live in a Subdivision - If your home is comprised of similar or identical floor plans, built in the same period, simply look at recent sales in your neighborhood subdivision to give you a good idea of what your home is worth.
If You Live in An Older Neighborhood - As neighborhoods change over time each home may be different in minor or substantial ways and you will probably find that there aren't many homes truly comparable to yourown. In this case you may want to consider seeking a Realtor ® to help you with the pricing process.
If You Decide to Sell On Your Own - A good way to establish a value is to look at homes that have sold in your neighborhood within the past 6 months, including those now on the market. This is how prospective buyers will assess the worth of your home. Also a trip to City Hall can provide you with home sale information in its public records, for most communities.
4. Do Some "Home Shopping" Yourself
The best way to learn about your competition and discover what turns buyers off is to check out other open houses. Note floor plans, condition, appearance, size of lot, location and other features. Particularly note, not only the asking prices but what they are actually selling for. Remember, if you're serious about getting your home sold fast, don't price it higher than your neighbor's.
5. When Getting an Appraisal is a Benefit
Sometimes a good appraisal can be a benefit in marketing your home. Getting an appraisal is a good way to let prospective buyers know that your home can be financed. However, an appraisal does cost money, has a limited life, and there’s no guarantee you’ll like the figure you hear.
6. Tax Assessments - What They Really Mean
Some people think that tax assessments are a way of evaluating a home. The difficulty here is that assessments are based on a number of criteria that may not be related to property values, so they may not necessarily reflect your home's true value.
7. Deciding Upon a Realtor® According to the National Association of Realtors, nearly two-thirds of the people surveyed who sell their own homes say they wouldn't do it again themselves. Primary reasons included setting a price, marketing handicaps, liability concerns, and time constraints. When deciding upon a Realtor® , consider two or three. Be as wary of quotes that are too low as those that are too high.
All Realtors® are not the same! A professional Realtor® knows the market and has information on past sales, current listings, a marketing plan, and will provide their background and references. Evaluate each candidate carefully on the basis of their experience, qualifications, enthusiasm and personality. Be sure you choose someone that you trust and feel confident that they will do a good job on your behalf.
If you choose to sell on your own, you can still talk to a Realtor® . Many are more than willing to help do-it-your-selfers with paperwork, contracts, etc. and should problems arise, you now have someone you can readily call upon.
8. Ensure You Have Room to Negotiate
Before settling on your asking price make sure you leave yourself enough room in which to bargain. For example, set your lowest and highest selling price. Then check your priorities to know if you'll price high to maximize your profit or price closer to market value if you want sell quickly.
9. Appearances Do Matter - Make them Count!
Appearance is so critical that it would be unwise to ignore this when selling your home. The look and "feel" of your home will generate a greater emotional response than any other factor. Prospective buyers react to what they see, hear, feel, and smell even though you may have priced your home to sell.
10. Invite the Honest Opinions of Others
The biggest mistake you can make at this point is to rely solely on your own judgment. Don't be shy about seeking the honest opinions of others. You need to be objective about your home's good points as well as bad. Fortunately, your Realtor® will be unabashed about discussing what should be done to make your home more marketable.
11. Get it Spic n' Span Clean and Fix Everything, Even If It Seems Insignificant
Scrub, scour, tidy up, straighten, get rid of the clutter, declare war on dust, repair squeaks, the light switch that doesn't work, and the tiny crack in the bathroom mirror because these can be deal-killers and you'll never know what turns buyers off. Remember, you're not just competing with other resale homes, but brand-new ones as well.
12. Allow Prospective Buyers to Visualize Themselves in Your Home
The last thing you want prospective buyers to feel when viewing your home is that they may be intruding into someone's life. Avoid clutter such as too many knick-knacks, etc. Decorate in neutral colors, like white or beige and place a few carefully chosen items to add warmth and character. You can enhance the attractiveness of your home with a well-placed vase of flowers or potpourri in the bathroom. Home-decor magazines are great for tips.
13. Deal Killer Odors - Must Go!
You may not realize but odd smells like traces of food, pets and smoking odors can kill deals quickly. If prospective buyers know you have a dog, or that you smoke, they'll start being aware of odors and seeing stains that may not even exist. Don't leave any clues.
14. Be a Smart Seller - Disclose Everything
Smart sellers are proactive in disclosing all known defects to their buyers in writing. This can reduce liability and prevent lawsuits later on.
15. It's Better With More Prospects
When you maximize your home's marketability, you will most likely attract more than one prospective buyer. It is much better to have several buyers because they will compete with each other; a single buyer will end up competing with you.
16. Keep Emotions in Check During Negotiations
Let go of the emotion you've invested in your home. Be detached, using a business-like manner in your negotiations. You'll definitely have an advantage over those who get caught up emotionally in the situation.
17. Learn Why Your Buyer is Motivated
The better you know your buyers the better you can use the negotiation process to your advantage. This allows you to control the pace and duration of the process.
As a rule, buyers are looking to purchase the best affordable property for the least amount of money. Knowing what motivates them enables you to negotiate more effectively. For example, does your buyer need to move quickly. Armed with this information you are in a better position to bargain.
18. What the Buyer Can Really Pay
As soon as possible, try to learn the amount of mortgage the buyer is qualified to carry and how much his/her down payment is. If their offer is low, ask their Realtor® about the buyer's ability to pay what your home is worth.
19. When the Buyer Would Like to Close
Quite often, when buyers would "like" to close is when they need to close. Knowledge of their deadlines for completing negotiations again creates a negotiating advantage for you.
20. Never Sign a Deal on Your Next Home Until You Sell Your Current Home
Beware of closing on your new home while you're still making mortgage payments on the old one or you might end up becoming a seller who is eager (even desperate) for the first deal that comes along.
21. Moving Out Before You Sell Can Put You at a Disadvantage
It has been proven that it's more difficult to sell a home that is vacant because it becomes forlorn looking, forgotten, no longer an appealing sight. Buyers start getting the message that you have a another home and are probably motivated to sell. This could cost you thousands of dollars.
22. Deadlines Create A Serious Disadvantage
Don't try to sell by a certain date. This adds unnecessary pressure and is a serious disadvantage in negotiations.
23. A Low Offer - Don't Take It Personally
Invariably the initial offer is below what both you and the buyer knows he'll pay for your property. Don't be upset, evaluate the offer objectively. Ensure it spells out the offering price, sufficient deposit, amount of down payment, mortgage amount, a closing date and any special requests. This can simply provide a starting point from which you can negotiate.
24. Turn That Low Offer Around
You can counter a low offer or even an offer that’s just under your asking price. This lets the buyer know that the first offer isn’t seen as being a serious one. Now you’ll be negotiating only with buyers with serious offers.
25. Maybe the Buyer's Not Qualified
If you feel an offer is inadequate, now is the time to make sure the buyer is qualified to carry the size of mortgage the deal requires. Inquire how they arrived at their figure, and suggest they compare your price to the prices of homes for sale in your neighborhood.
26. Ensure the Contract is Complete
To avoid problems, ensure that all terms, costs and responsibilities are spelled out in the contract of sale. It should include such items as the date it was made, names of parties involved, address of property being sold, purchase price, where deposit monies will be held, date for loan approval, date and place of closing, type of deed, including any contingencies that remain to be settled and what personal property is included (or not) in the sale.
27. Resist Deviating From the Contract
For example, if the buyer requests a move-in prior to closing, just say no and that you’ve been advised against it. Now is not the time to take any chances of the deal falling through.
"...discover how to protect and capitalize on your most important investment.."
Because your home may well be your largest asset, selling it is probably one of the most important decisions you will make in your life. To better understand the homeselling process, a guide has been prepared from current industry insider reports. Through these 27 tips you will discover how to protect and capitalize on your most important investment, reduce stress, be in control of your situation, and make the most profit possible.
1. Understand Why You Are Selling Your Home
Your motivation to sell is the determining factor as to how you will approach the process. It affects everything from what you set your asking price at to how much time, money and effort you're willing to invest in order to prepare your home for sale. For example, if your goal is for a quick sale, this would determine one approach. If you want to maximize your profit, the sales process might take longer thus determining a different approach.
2. Keep the Reason(s) You are Selling to Yourself
The reason(s) you are selling your home will affect the way you negotiate its sale. By keeping this to yourself you don't provide ammunition to your prospective buyers. For example, should they learn that you must move quickly, you could be placed at a disadvantage in the negotiation process. When asked, simply say that your housing needs have changed. Remember, the reason( s) you are selling is only for you to know .
3. Before Setting a Price - Do Your Homework
When you set your price, you make buyers aware of the absolute maximum they have to pay for your home. As a seller, you will want to get a selling price as close to the list price as possible. If you start out by pricing too high you run the risk of not being taken seriously by buyers and their agents. If you are pricing too low it can result in selling for much less than you were hoping for.
Setting Your Home's Sale Price
If You Live in a Subdivision - If your home is comprised of similar or identical floor plans, built in the same period, simply look at recent sales in your neighborhood subdivision to give you a good idea of what your home is worth.
If You Live in An Older Neighborhood - As neighborhoods change over time each home may be different in minor or substantial ways and you will probably find that there aren't many homes truly comparable to yourown. In this case you may want to consider seeking a Realtor ® to help you with the pricing process.
If You Decide to Sell On Your Own - A good way to establish a value is to look at homes that have sold in your neighborhood within the past 6 months, including those now on the market. This is how prospective buyers will assess the worth of your home. Also a trip to City Hall can provide you with home sale information in its public records, for most communities.
4. Do Some "Home Shopping" Yourself
The best way to learn about your competition and discover what turns buyers off is to check out other open houses. Note floor plans, condition, appearance, size of lot, location and other features. Particularly note, not only the asking prices but what they are actually selling for. Remember, if you're serious about getting your home sold fast, don't price it higher than your neighbor's.
5. When Getting an Appraisal is a Benefit
Sometimes a good appraisal can be a benefit in marketing your home. Getting an appraisal is a good way to let prospective buyers know that your home can be financed. However, an appraisal does cost money, has a limited life, and there’s no guarantee you’ll like the figure you hear.
6. Tax Assessments - What They Really Mean
Some people think that tax assessments are a way of evaluating a home. The difficulty here is that assessments are based on a number of criteria that may not be related to property values, so they may not necessarily reflect your home's true value.
7. Deciding Upon a Realtor® According to the National Association of Realtors, nearly two-thirds of the people surveyed who sell their own homes say they wouldn't do it again themselves. Primary reasons included setting a price, marketing handicaps, liability concerns, and time constraints. When deciding upon a Realtor® , consider two or three. Be as wary of quotes that are too low as those that are too high.
All Realtors® are not the same! A professional Realtor® knows the market and has information on past sales, current listings, a marketing plan, and will provide their background and references. Evaluate each candidate carefully on the basis of their experience, qualifications, enthusiasm and personality. Be sure you choose someone that you trust and feel confident that they will do a good job on your behalf.
If you choose to sell on your own, you can still talk to a Realtor® . Many are more than willing to help do-it-your-selfers with paperwork, contracts, etc. and should problems arise, you now have someone you can readily call upon.
8. Ensure You Have Room to Negotiate
Before settling on your asking price make sure you leave yourself enough room in which to bargain. For example, set your lowest and highest selling price. Then check your priorities to know if you'll price high to maximize your profit or price closer to market value if you want sell quickly.
9. Appearances Do Matter - Make them Count!
Appearance is so critical that it would be unwise to ignore this when selling your home. The look and "feel" of your home will generate a greater emotional response than any other factor. Prospective buyers react to what they see, hear, feel, and smell even though you may have priced your home to sell.
10. Invite the Honest Opinions of Others
The biggest mistake you can make at this point is to rely solely on your own judgment. Don't be shy about seeking the honest opinions of others. You need to be objective about your home's good points as well as bad. Fortunately, your Realtor® will be unabashed about discussing what should be done to make your home more marketable.
11. Get it Spic n' Span Clean and Fix Everything, Even If It Seems Insignificant
Scrub, scour, tidy up, straighten, get rid of the clutter, declare war on dust, repair squeaks, the light switch that doesn't work, and the tiny crack in the bathroom mirror because these can be deal-killers and you'll never know what turns buyers off. Remember, you're not just competing with other resale homes, but brand-new ones as well.
12. Allow Prospective Buyers to Visualize Themselves in Your Home
The last thing you want prospective buyers to feel when viewing your home is that they may be intruding into someone's life. Avoid clutter such as too many knick-knacks, etc. Decorate in neutral colors, like white or beige and place a few carefully chosen items to add warmth and character. You can enhance the attractiveness of your home with a well-placed vase of flowers or potpourri in the bathroom. Home-decor magazines are great for tips.
13. Deal Killer Odors - Must Go!
You may not realize but odd smells like traces of food, pets and smoking odors can kill deals quickly. If prospective buyers know you have a dog, or that you smoke, they'll start being aware of odors and seeing stains that may not even exist. Don't leave any clues.
14. Be a Smart Seller - Disclose Everything
Smart sellers are proactive in disclosing all known defects to their buyers in writing. This can reduce liability and prevent lawsuits later on.
15. It's Better With More Prospects
When you maximize your home's marketability, you will most likely attract more than one prospective buyer. It is much better to have several buyers because they will compete with each other; a single buyer will end up competing with you.
16. Keep Emotions in Check During Negotiations
Let go of the emotion you've invested in your home. Be detached, using a business-like manner in your negotiations. You'll definitely have an advantage over those who get caught up emotionally in the situation.
17. Learn Why Your Buyer is Motivated
The better you know your buyers the better you can use the negotiation process to your advantage. This allows you to control the pace and duration of the process.
As a rule, buyers are looking to purchase the best affordable property for the least amount of money. Knowing what motivates them enables you to negotiate more effectively. For example, does your buyer need to move quickly. Armed with this information you are in a better position to bargain.
18. What the Buyer Can Really Pay
As soon as possible, try to learn the amount of mortgage the buyer is qualified to carry and how much his/her down payment is. If their offer is low, ask their Realtor® about the buyer's ability to pay what your home is worth.
19. When the Buyer Would Like to Close
Quite often, when buyers would "like" to close is when they need to close. Knowledge of their deadlines for completing negotiations again creates a negotiating advantage for you.
20. Never Sign a Deal on Your Next Home Until You Sell Your Current Home
Beware of closing on your new home while you're still making mortgage payments on the old one or you might end up becoming a seller who is eager (even desperate) for the first deal that comes along.
21. Moving Out Before You Sell Can Put You at a Disadvantage
It has been proven that it's more difficult to sell a home that is vacant because it becomes forlorn looking, forgotten, no longer an appealing sight. Buyers start getting the message that you have a another home and are probably motivated to sell. This could cost you thousands of dollars.
22. Deadlines Create A Serious Disadvantage
Don't try to sell by a certain date. This adds unnecessary pressure and is a serious disadvantage in negotiations.
23. A Low Offer - Don't Take It Personally
Invariably the initial offer is below what both you and the buyer knows he'll pay for your property. Don't be upset, evaluate the offer objectively. Ensure it spells out the offering price, sufficient deposit, amount of down payment, mortgage amount, a closing date and any special requests. This can simply provide a starting point from which you can negotiate.
24. Turn That Low Offer Around
You can counter a low offer or even an offer that’s just under your asking price. This lets the buyer know that the first offer isn’t seen as being a serious one. Now you’ll be negotiating only with buyers with serious offers.
25. Maybe the Buyer's Not Qualified
If you feel an offer is inadequate, now is the time to make sure the buyer is qualified to carry the size of mortgage the deal requires. Inquire how they arrived at their figure, and suggest they compare your price to the prices of homes for sale in your neighborhood.
26. Ensure the Contract is Complete
To avoid problems, ensure that all terms, costs and responsibilities are spelled out in the contract of sale. It should include such items as the date it was made, names of parties involved, address of property being sold, purchase price, where deposit monies will be held, date for loan approval, date and place of closing, type of deed, including any contingencies that remain to be settled and what personal property is included (or not) in the sale.
27. Resist Deviating From the Contract
For example, if the buyer requests a move-in prior to closing, just say no and that you’ve been advised against it. Now is not the time to take any chances of the deal falling through.
Wednesday, December 23, 2009
These 9 Steps Make a Problem Free Purchase
Buying a home is complicated process in todays world, but we strive to make it an easy, stress free process. Below are 9 things to be aware of when buying a home. Addressing these issues will help you to avoid problems down the road.
"A systemized approach to the home buying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that’s best for you."
No matter which way you look at it, buying a home is a major investment. But for many homebuyers, it can be an even more expensive process than it needs to be since they fall prey to at least a few of the many common and costly mistakes which trap them into either:
paying too much for the home they want, or
losing their dream home to another buyer or,
(worse) buying the wrong home for their needs.
A systemized approach to the home buying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that’s best for you.
This important report discusses the 9 most common and costly homebuyer traps, how to identify them, and what you can do to avoid them:
1. Bidding Blind
What price should you offer when you bid on a home? Is the seller’s asking price too high, or does it represent a great deal. If you fail to research the market in order to understand what comparable homes are selling for, making your offer would be like bidding blind. Without this knowledge of market value, you could easily bid too much, or fail to make a competitive offer at all on an excellent value.
2. Buying the Wrong Home
What are you looking for in a home? A simple enough question, but the answer can be quite complex. More often than not, buyers have been swept up in the emotion and excitement of the buying process only to find themselves the owner of a home that is either too big or too small. Maybe they’re stuck with a longer than desired commute to work, or a dozen more fix-ups than they really want to deal with now that the excitement has died down. Take the time upfront to clearly define your wants and needs. Put it in writing and then use it as a yard stick with which to measure every home you look at.
3. Unclear Title
Make sure very early on in the negotiation that you will own your new home free and clear by having a title search completed. The last thing you want to discover when you’re in the back stretch of a transaction is that there are encumbrances on the property such as tax liens, undisclosed owners, easements, leases or the like.
4. Inaccurate Survey
As part of your offer to purchase, make sure you request an updated property survey which clearly marks your boundaries, if the property boundaries are not clearly marked. If the survey is not current, you may find that there are structural changes that are not shown (e.g. additions to the house, a new swimming pool, a neighbor’s new fence which is extending a boundary line, etc.). Be very clear on these issues.
5. Undisclosed Fix-ups
Don’t expect every seller to own up to every physical detail that will need to be attended to. Both you and the seller are out to maximize your investment. Ensure that you conduct a thorough inspection of the home early in the process. Consider hiring an independent inspector to objectively view the home inside and out, and make the final contract contingent upon this inspector’s report. This inspector should be able to give you a report of any item that needs to be fixed with associated, approximate cost.
6. Not Getting Mortgage Pre-approval
Pre-approval is fast, easy and free. It is also REQUIRED to submit an offer in Arizona. When you have a pre-approved mortgage, you can shop for your home with a greater sense of freedom and security, knowing that the money will be there when you find the home of your dreams.
7. Contract Misses
If a seller fails to comply to the letter of the contract by neglecting to attend to some repair issues, or changing the spirit of the agreement in some way, this could delay the final closing and settlement. Agree ahead of time on a dollar amount for an escrow fund to cover items that the seller fails to follow through on. Prepare a list of agreed issues, walk through them, and check them off one by one.
8. Hidden Costs
Make sure you identify and uncover all costs - large and small - far enough ahead of time. When a transaction closes, you will sometimes find fees for this or that sneaking through after the “sub”-total fees such as loan disbursement charges, underwriting fees etc. Understand these in advance by having your lender project total charges for you in writing.
9. Rushing the Closing
Take your time during this critical part of the process, and insist on seeing all paperwork the day before you sign. Make sure this documentation perfectly reflects your understanding of the transaction, and that nothing has been added or subtracted. Is the interest rate right? Is everything covered? If you rush this process on the day of closing, you may run into a last minute snag that you can’t fix without compromising the terms of the deal, the financing, or even the sale itself.
"A systemized approach to the home buying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that’s best for you."
No matter which way you look at it, buying a home is a major investment. But for many homebuyers, it can be an even more expensive process than it needs to be since they fall prey to at least a few of the many common and costly mistakes which trap them into either:
paying too much for the home they want, or
losing their dream home to another buyer or,
(worse) buying the wrong home for their needs.
A systemized approach to the home buying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that’s best for you.
This important report discusses the 9 most common and costly homebuyer traps, how to identify them, and what you can do to avoid them:
1. Bidding Blind
What price should you offer when you bid on a home? Is the seller’s asking price too high, or does it represent a great deal. If you fail to research the market in order to understand what comparable homes are selling for, making your offer would be like bidding blind. Without this knowledge of market value, you could easily bid too much, or fail to make a competitive offer at all on an excellent value.
2. Buying the Wrong Home
What are you looking for in a home? A simple enough question, but the answer can be quite complex. More often than not, buyers have been swept up in the emotion and excitement of the buying process only to find themselves the owner of a home that is either too big or too small. Maybe they’re stuck with a longer than desired commute to work, or a dozen more fix-ups than they really want to deal with now that the excitement has died down. Take the time upfront to clearly define your wants and needs. Put it in writing and then use it as a yard stick with which to measure every home you look at.
3. Unclear Title
Make sure very early on in the negotiation that you will own your new home free and clear by having a title search completed. The last thing you want to discover when you’re in the back stretch of a transaction is that there are encumbrances on the property such as tax liens, undisclosed owners, easements, leases or the like.
4. Inaccurate Survey
As part of your offer to purchase, make sure you request an updated property survey which clearly marks your boundaries, if the property boundaries are not clearly marked. If the survey is not current, you may find that there are structural changes that are not shown (e.g. additions to the house, a new swimming pool, a neighbor’s new fence which is extending a boundary line, etc.). Be very clear on these issues.
5. Undisclosed Fix-ups
Don’t expect every seller to own up to every physical detail that will need to be attended to. Both you and the seller are out to maximize your investment. Ensure that you conduct a thorough inspection of the home early in the process. Consider hiring an independent inspector to objectively view the home inside and out, and make the final contract contingent upon this inspector’s report. This inspector should be able to give you a report of any item that needs to be fixed with associated, approximate cost.
6. Not Getting Mortgage Pre-approval
Pre-approval is fast, easy and free. It is also REQUIRED to submit an offer in Arizona. When you have a pre-approved mortgage, you can shop for your home with a greater sense of freedom and security, knowing that the money will be there when you find the home of your dreams.
7. Contract Misses
If a seller fails to comply to the letter of the contract by neglecting to attend to some repair issues, or changing the spirit of the agreement in some way, this could delay the final closing and settlement. Agree ahead of time on a dollar amount for an escrow fund to cover items that the seller fails to follow through on. Prepare a list of agreed issues, walk through them, and check them off one by one.
8. Hidden Costs
Make sure you identify and uncover all costs - large and small - far enough ahead of time. When a transaction closes, you will sometimes find fees for this or that sneaking through after the “sub”-total fees such as loan disbursement charges, underwriting fees etc. Understand these in advance by having your lender project total charges for you in writing.
9. Rushing the Closing
Take your time during this critical part of the process, and insist on seeing all paperwork the day before you sign. Make sure this documentation perfectly reflects your understanding of the transaction, and that nothing has been added or subtracted. Is the interest rate right? Is everything covered? If you rush this process on the day of closing, you may run into a last minute snag that you can’t fix without compromising the terms of the deal, the financing, or even the sale itself.
Friday, December 4, 2009
Now is the Time to Stop Renting!
Don’t Pay Another Cent in Rent To Your Landlord . . .
"If you’re like most renters, you feel trapped within the walls of a house or apartment that doesn’t feel like yours."
It’s a dream we all have - to own our own home and stop paying rent. But if you’re like most renters, you feel trapped within the walls of a house or apartment that doesn’t feel like yours. How could it when you’re not even permitted to bang in a nail or two without a hassle. You feel like you’re stuck in the renter’s rut with no way of rising up out of it and owning your own home.
Don’t Feel Trapped Anymore
It doesn’t matter how long you’ve been renting, or how insurmountable your financial situation may seem. The truth is, there are some little known facts that can help you get over the hump, and transfer your status from renter to homeowner. With this information, you will begin to see how you really can:
-save for a down payment
-stop lining your landlord’s pockets, and
-stop wasting thousands of dollars on rent.
6 Little Known Facts That Can Help You
Buy Your First Home
The problem that most renters face isn’t your ability to meet a monthly payment. Goodness knows that you must meet this monthly obligation every 30 days already. The problem is accumulating enough capital to make a down payment on something more permanent.
But saving for this lump sum doesn’t have to be as difficult as you might think. Consider the following 6 important points:
1. You can buy a home with much less down than you think
There are some local or federal government programs (such as 1st time buyer programs) to help people get into the housing market. You can qualify as a first time buyer even if your spouse has owned a home before as long as your name was not registered. Ensure your real estate agent is informed and knowledgeable in this important area and can offer programs to help you with your options.
2. You may be able to get your lender to help you with your down payment and closing costs
Even if you do not have enough cash for a down payment, if you are debt free, and own an asset free and clear (such as a car for example), a lending institution may be able to lend you the down payment for your home by securing it against this asset.
3. You may be able to find a seller to help you buy and finance your home
Some sellers may be willing to hold a second mortgage for you as a seller take-back. In this case, the seller becomes your lending institution. Instead of paying this seller a lump sum full amount for his or her home, you would pay monthly mortgage installments.
4. You may be able to create a cash down payment without actually going into debt
By borrowing money for certain investments to a specified level, you may be able to generate a significant tax refund for yourself that you can use as a down payment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both home and investment will be yours in the end.
5. You can buy a home even if you have problems with your credit rating
If you can come up with more than the minimum down payment, or can secure the loan with other equity, many lending institutions will consider you for a mortgage. Alternatively, a seller take-back mortgage could also help you in this situation.
6. You can, and should, get pre-approved for a home loan before you go looking for a home
Pre-approval is easy, and can give you complete peace-of-mind when shopping for your home. Mortgage experts can obtain written pre-approval for you at no cost and no obligation, and it can all be done quite easily over-the-phone. More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It entails a completed credit application, and a certificate which guarantees you a mortgage to the specified level when you find the home you’re looking for. Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make the difference between obtaining a mortgage, and being stuck in the renter’s rut forever. Typically there is no cost or obligation to enquire.
There are many important issues you should be aware of that affect you as a renter. Why on earth would you continue to lose thousands by throwing it away on rent when with your agent you could take a few minutes to discuss your specific needs so that you can stop renting and start owning.
This conversation costs you nothing. And, of course, you shouldn’t have to feel obligated to buy a home at the time you review this. But by taking the time to explore your options, and learn about the ways you can afford to buy a home, think how prepared and relaxed you’ll be when you are ready to make this important step.
"If you’re like most renters, you feel trapped within the walls of a house or apartment that doesn’t feel like yours."
It’s a dream we all have - to own our own home and stop paying rent. But if you’re like most renters, you feel trapped within the walls of a house or apartment that doesn’t feel like yours. How could it when you’re not even permitted to bang in a nail or two without a hassle. You feel like you’re stuck in the renter’s rut with no way of rising up out of it and owning your own home.
Don’t Feel Trapped Anymore
It doesn’t matter how long you’ve been renting, or how insurmountable your financial situation may seem. The truth is, there are some little known facts that can help you get over the hump, and transfer your status from renter to homeowner. With this information, you will begin to see how you really can:
-save for a down payment
-stop lining your landlord’s pockets, and
-stop wasting thousands of dollars on rent.
6 Little Known Facts That Can Help You
Buy Your First Home
The problem that most renters face isn’t your ability to meet a monthly payment. Goodness knows that you must meet this monthly obligation every 30 days already. The problem is accumulating enough capital to make a down payment on something more permanent.
But saving for this lump sum doesn’t have to be as difficult as you might think. Consider the following 6 important points:
1. You can buy a home with much less down than you think
There are some local or federal government programs (such as 1st time buyer programs) to help people get into the housing market. You can qualify as a first time buyer even if your spouse has owned a home before as long as your name was not registered. Ensure your real estate agent is informed and knowledgeable in this important area and can offer programs to help you with your options.
2. You may be able to get your lender to help you with your down payment and closing costs
Even if you do not have enough cash for a down payment, if you are debt free, and own an asset free and clear (such as a car for example), a lending institution may be able to lend you the down payment for your home by securing it against this asset.
3. You may be able to find a seller to help you buy and finance your home
Some sellers may be willing to hold a second mortgage for you as a seller take-back. In this case, the seller becomes your lending institution. Instead of paying this seller a lump sum full amount for his or her home, you would pay monthly mortgage installments.
4. You may be able to create a cash down payment without actually going into debt
By borrowing money for certain investments to a specified level, you may be able to generate a significant tax refund for yourself that you can use as a down payment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both home and investment will be yours in the end.
5. You can buy a home even if you have problems with your credit rating
If you can come up with more than the minimum down payment, or can secure the loan with other equity, many lending institutions will consider you for a mortgage. Alternatively, a seller take-back mortgage could also help you in this situation.
6. You can, and should, get pre-approved for a home loan before you go looking for a home
Pre-approval is easy, and can give you complete peace-of-mind when shopping for your home. Mortgage experts can obtain written pre-approval for you at no cost and no obligation, and it can all be done quite easily over-the-phone. More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It entails a completed credit application, and a certificate which guarantees you a mortgage to the specified level when you find the home you’re looking for. Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make the difference between obtaining a mortgage, and being stuck in the renter’s rut forever. Typically there is no cost or obligation to enquire.
There are many important issues you should be aware of that affect you as a renter. Why on earth would you continue to lose thousands by throwing it away on rent when with your agent you could take a few minutes to discuss your specific needs so that you can stop renting and start owning.
This conversation costs you nothing. And, of course, you shouldn’t have to feel obligated to buy a home at the time you review this. But by taking the time to explore your options, and learn about the ways you can afford to buy a home, think how prepared and relaxed you’ll be when you are ready to make this important step.
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