What if I Chose to Work with More then One Realtor at a Time?

 You’re under no legal obligation to use only one real estate agent  (unless you’ve signed an exclusive buyer listing agreement). 

Some people like to do this because:

1. They want to look at a number of areas.

2. They haven’t found the “right” real estate agent .

3. They want to keep their options open.

Tips if you’re going to do this:

1. Tell the realtor that you’re working with other agents as well.

2. Also tell them if they want to show you a property that you’ve already seen it with another real estate agent .  It saves you- and them- time and effort.

The Real Deal:  Most realtors hate this.  They want to work with you exclusively, and they may either choose not to work with you, or put your needs on a lower priority scale. 

Why?  Because:

a.) their time available is usually limited

b.) their chances of completing a transaction with you (in other words, getting paid) is much lower than with a client who is faithfully working with them.

What is an Exclusive Buyer Listing Agreement?

This is a legal document (a contract) between you and your real estate agent, for a specified period of time, that commits you to your real estate agent, and your real estate agent to you. 

Basically, it says that if you buy a house, your real estate agent will get paid.

• What’s the advantage to me to sign this Exclusive Buyer Listing Agreement?

• Well, for starters, you’ll be at the top of your realtor’s list of people to work with.  Top of the list and top priority.

• Your real estate agent will be ready and anxious to get things done for you. 

• Your agent knows you’re committed, you’re going to be loyal to him/her, and you’re ready to buy. 

That means your agent will get paid, who can then pay the electric bill and buy groceries- wonderful incentives to work harder.  (Remember, folks, we real estate agents do this to make a living!)

Do I Have to Sign an Exclusive Buyer Listing Agreement?

No.  You are under NO obligation to sign any documents you’re not sure about. 

Some real estate agents choose this approach.  They want to be sure they “own” you before they put in work and effort. 

You also have a choice.  You can choose to say “No, thank you” and look for a realtor who will work with you.

The only time you should choose to sign an Exclusive Buyer Listing Agreement is when you think “Yippee!  This is the real estate agent for me!” and you want to be that agent’s top priority.

Why do realtors always say to me “Are you working with an agent?” It’s none of their business.

Two reasons. One is business ethics- we don’t want to “steal” clients from other agents. 

The other reason is they are trying to find out if there is a whisper of a chance that they might actually get paid from working with you….  if you are working with another agent, working with you is only a “labor of love.”

Here’s a BIG real estate secret most people don’t know– Real estate agents spend most of their time working for free.  In fact, we are often paying a lot of expenses to be able to “work for free!”

The Real Deal:   Most real estate agents are straight commission people.  The only time we receive money for our work is when a real estate transaction closes. 

That’s it. 

The rest of the time we’re working for free.

Of course, since we’re living in a real world with bills to pay, we are motivated to work for free as smart as possible.  Spending hours and hours working for a person who already has a real estate agent may not be the best choice towards eventually bringing dollars in the door.

So, actually, it is their business when realtors ask that common question (at least, they hope….).

How do real estate commissions work?

Commissions are paid by the seller, not the buyer.

The commission amount can vary; enforcing a set amount is known as “price-fixing” and is illegal. 

A common commission rate in the Columbus area is 5–6%.

Using a 6% commission as an example, 3% is the common percentage that goes to the buyer’s agent; the remaining 3% goes to the selling agent. 

Actually, these amounts go to the agent’s broker.  If you were at a closing, you’d notice that the final commission check would not be in your agent’s name, but in their brokers name (i.e., Keller Williams).

These real estate agents will receive only a portion of that 3% amount. 

Depending on the brokerage they work for, they will get a “commission split,” which could be 50/50 %, 60/40%, 70/30%, or 80/20%, with part of this percentage going to their company the broker. 

There are some realtors who get 100% of the 3% commission. These realtors pay for all their business expenses, with significant monthly fees that go to their broker.

The Real Deal:   So…. the bottom line is- your real estate agent isn’t getting rich with all of the listed commission, and retiring to Tahiti.

I’ve got a realtor that I’m working with, but I want to go out and search on my own.

What’s the best way to do this?

1. Ask your real estate agent for 10-15 of her business cards.  Carry a few with you to give out as you’re searching.

2. At open houses, give the attending realtor one of your agent’s cards.  Signing a guest register is optional; you can sign your agent’s name if you choose.

3. If you want to consider a new build and visit a model home, tell the sales associate you’re working with a real estate agent and also tell them you want to register yourself and your agent.

(NOTE: There are many advantages to using a realtor when building a home, but some builders are very fussy and have particular rules about the way your real estate agent gets registered- be sure to ask about their process.) 

4. If you find an interesting listing on the Internet, get the address or Multiple Listing number and email your realtor- she/he can get you all the information you wish.

5. If you wish to see a listing and your agent is unavailable, you have the choice of calling the listing agent and scheduling a showing appointment with him/her.  Tell the real estate agent who your agent is, and give your agent’s card to him/her when you meet. 

(NOTE:  Remember, this agent is working for the seller.  At the showing, be careful not to reveal any personal information that could benefit the seller; this agent will tell the seller anything that is to their advantage.  If the home has potential, plan on scheduling a second showing appointment with your real estate agent attending with you.)

6. If you see a For Sale By Owner (FSBO) that you’re interested in, get the phone number and address- call your agent and share this information.  She/he can arrange for a showing for both of you to go to together.  (Most FSBO’s are willing to pay the 3% co-op fee to a buyer’s real estate agent.) 

Your realtor will advise you on pricing, get information on comparable sold properties, look out for your interests, write and negotiate a contract, arrange all inspections, mediate any differences, assist with financing and attend your closing- all the same things we perform with standard listed homes.

What are the reasons to use a realtor if I build a new home?

1. It doesn’t cost you any more money than if you didn’t.

With the exception of a very few builders who refuse to cooperate with real estate agents, most builders have a general fund that is used for marketing/advertising and real estate commissions. 

The builder pays the fee-not you.   Your realtor’s commission is paid out of this fund.  

2. Your real estate agent is there to represent your interests.

Remember, the builder’s sales repis representing the builder’s interests, not yours.  Real estate agents have to disclose to you who we represent- that’s the law.  Builders are not bound by any such legal requirements.

3. Your realtor can give you important advice on home design, features, lot selection, and amenities that will affect both your final price and the potential resale value of your home.  Think of your real estate agent as a third set of eyes.

When I asked my realtor to tell me what were the best schools and neighborhoods, she wouldn’t tell me. Why?

There’s a one-word answer- LIABILITY.  A few other words could apply: lawsuits, discrimination, license revocation… the list goes on and on.  As a parent, I understand your desire to have a great neighborhood and a good school for your children.  As a realtor, I understand that opinions of what makes a good neighborhood and school system are both personal and subjective.

A good realtor will assist you by advising you on communities that match your family’s interests (does your family like urban or suburban surroundings?  Do you need easy access to parks, bicycle trails, or the shopping mall?) and by sharing available information on school systems (reports, magazine reviews, school web sites, etc.). 

Auction Sale Facts and Figures

Selling your home through an auction is a growing trend. 

This selling technique has quadrupled in volume since 1980 (although overall it is still less than 2% of total residential market). 

Sales for 1998 totalled 49 billion dollars, up nearly 20% from 1996-97. (source: Gwent Group)

There are 3 kinds of auctions:

1. Absolute auction:  there is no minimum bid- it WILL sell, at some price.  Usually, this type results in the highest selling price… people come looking for a bargain, and then bid against each other, raising the price.

2. Disclosed minimum bid:  The seller tells buyers the minimum bid to be accepted- this price is advertised ahead of time….  often, fewer bidders come.

3. Confirmation reserve bid:  there is a minimum bid to be accepted, but buyers are not aware what that price is- the seller has the right to accept or refuse the highest bid.

Auction advantages for the seller: 
• they know the date when the property will sell
• buyer pays all closing and title costs
• no contingencies to deal with, such as loan approvals and buyer requests for repair
• you have multiple bidders competing at the same time
• your property can be in contract as soon as 35 days after you sign the paperwork. 

Buyer responsibilities: 
• to inspect the property before purchase and make sure it’s what they want.
• get pre approved for financing-  know your maximum price.
• know if the final bid is the actual purchase price, or if there is an additional buyer’s premium to be added. (See special note below.)
• there is a considerable deposit taken upon acceptance that is non-refundable.  If the buyer accepts the contact and the buyer does not close, the deposit goes to the seller.

What are the ‘typical’ Auction details? The common auction cost is 8% of purchase price (paid by the seller), plus a promotion fee (usually around $1800-2000).  The promotion fee is paid at the time of signing the auction contract.  This method of sale may have offsetting costs that actually result in a net savings to the seller compared to the traditional home sale. 

How does the auction price compare to the traditional selling price?  Auction sale prices average 95% to 105% of the suggested Comparative Market Analysis price.  Approximately 50% of auction sales actually go over the suggested Comparative Market Analysis price.

When should I consider an auction? When timing and circumstances dictate that you need a quick sale. 

Why do realtors always say to me “Are you working with an agent?” It’s none of their business.

Two reasons. One is business ethics- we don’t want to “steal” clients from other agents. 

The other reason is they are trying to find out if there is a whisper of a chance that they might actually get paid from working with you….  if you are working with another agent, working with you is only a “labor of love.”

Here’s a BIG real estate secret most people don’t know– Real estate agents spend most of their time working for free.  In fact, we are often paying a lot of expenses to be able to “work for free!”

The Real Deal:  Most real estate agents are straight commission people.  The only time we receive money for our work is when a real estate transaction closes.   

That’s it. 

The rest of the time we’re working for free.

Of course, since we’re living in a real world with bills to pay, we are motivated to work for free as smart as possible.  Spending hours and hours working for a person who already has a real estate agent may not be the best choice towards eventually bringing dollars in the door.

So, actually, it is their business when realtors ask that common question (at least, they hope….).

How do real estate commissions work?

Commissions are paid by the seller, not the buyer.

The commission amount can vary; enforcing a set amount is known as “price-fixing” and is illegal. 

A common commission rate in the Temecula area is 5–6%.

Using a 6% commission as an example, 3% is the common percentage that goes to the buyer’s agent; the remaining 3% goes to the selling agent. 

Actually, these amounts go to the agent’s broker.  If you were at a closing, you’d notice that the final commission check would not be in your agent’s name, but in their brokers name (i.e., Century 21 Wright).

These real estate agents will receive only a portion of that 3% amount. 

Depending on the brokerage they work for, they will get a “commission split,” which could be 50/50 %, 60/40%, 70/30%, or 80/20%, with part of this percentage going to their company the broker. 

There are some realtors who get 100% of the 3% commission. These realtors pay for all their business expenses, with significant monthly fees that go to their broker.

The Real Deal:   So…. the bottom line is- your real estate agent isn’t getting rich with all of the listed commission, and retiring to Tahiti.

Understanding the 4 Kinds of Buyers

Waiting for your home to sell can be frustrating.  “What’s happening?” you wonder.  “Buyers come through…. why aren’t we getting more offers?”

Realtors understand there are four kinds of buyers cruising the marketplace.  (For this discussion’s sake, lets assume we are talking only about qualified buyers- those who could afford to buy if they chose.) 

Here’s a brief description of each kind:

1.  Just Lookins’- A favorite saying is “I’d be ready if…”  Some of these people never buy- they’re the eternal window-shoppers of homes on the market.   They’re simply curious how other people live (and decorate!). 
Others are extremely fussy and looking for the ‘perfect’ home…. if your home is fortunate enough to meet all their criteria, you might have a winner.

2. Bargainhunters- These buyers are looking for the bargain-basement winner.  Their saying is often “Let’s make a deal…. that works for me.”  Their gain is usually your loss.

3. Relo-Rushers- “The heat is on….”  Stress is a big component in these buyer’s lives.  A new job, a new home to buy, an existing home to sell…. and never enough time to get it all done.  And then there’s the worries about making the move, getting the kids in a good school, making a big change in life….. 
Relo-Rushers don’t have time to mess around.  They usually work with a Realtor, who can handle the many overwhelming details.  They want to get in, look around, make a deal, and get things done– fast.

4. Change of Lifer’s- “I want a change” is a frequent saying.  These buyers are upsizing, downsizing, resizing, or having a personal change in circumstances.  They can be apprehensive about their change in life, or charging full steam ahead.  Many times they’re not exactly sure what they want. Once their mind is made up, decisions can come quick.

FSBO- Is It For You?

What makes a Perfect “For Sale By Owner” Candidate?

• Homeowner understands the real estate market- has knowledge of home values, legal obligations, disclosure needs and procedures, contract knowledge and processes, and financing options.

• Knows a reliable real estate attorney, home inspector, termite inspector, gas line warranty inspector, lender, title company and other real estate support contacts.

• Time is not a factor:  Has plenty of time before home needs to be sold.  Has time to research property values of comparable homes.

• Understands the need to invest in advertising of their home.  Knows what type of advertising is effective.

• Home is located in a well-travelled area for better viewing.

• Is comfortable with showing other people their home.  Can deal with criticism of home features and flaws.

• Is good at negotiating, and patient working with people.

• Understands that many buyers will view their selling price as their asking price minus a realtor’s commission.

• Knows how to pre-qualify buyers, and can assist with buyer financing.

• Understands the advantage of offering a commission to a realtor with a qualified buyer.  Also understands that some realtors will not work with them.

HomeSeller’s Checklist

o Decide to sell your home.  Determine if you will be using a Realtor or selling it yourself.  Factors to consider:  your time frame/ urgency, familiarity with the real estate process and legal obligations, your comfort level with showing your home and negotiating, the costs of advertising and marketing your property.

o Select a Realtor.  Find someone you are comfortable with and who communicates clearly.

o Prepare your home for the market.  Your competition just became all the other people who are selling their homes!  Your goal is to find a qualified buyer who selects your home over all the others.  Now’s the time to put your best foot forward.

o Determine the listing price of your home.  Your realtor can offer detailed advice and research.

o Sign a Listing Agreement with your chosen Realtor.

o Listen to your Realtor’s thoughts about improving the sale-ability of your home.

o The ‘For Sale’ sign goes up and a lockbox is installed.

o Prepare for home showings and open houses.  (Tip: Take your pets and leave during these times; buyers like to feel comfortable examining a home.)

o Wait.  This is one of the stressful times…. ask for your realtor to keep you updated.

o Prepare for the offer on your home.  Are they pre-approved? Is there a contingency?  What would you negotiate to close the deal?- all factors to consider.

o Consider your prospective buyer’s offer.

o Accept, reject, or counter with another offer.  Remember with any counteroffer proposed or given that the previous offer is null and void.

o Once you accept the buyer’s offer, prepare for property inspections.  Typical inspections are for general property, septic, well, gas lines, and for termites.  Additional inspections could include radon, lead, or mold.  If issues arise, the buyer will propose a remedy to unsatisfactory conditions.  Be prepared to negotiate.

o Prepare for your move.  There’s moving arrangements, change of address, (notify the post office, publications, magazines, friends, family, and bill senders), and the transfer and setup of utilities (including gas, electric, telephone, water, garbage, and cable).

o Go to the closing.  Sign many documents.  Get your money.

Easy Preparation Tips For Your Open House

• Place your ad in the local and city newspapers the week before for the Sunday edition.  Thursday is usually the deadline date for Sunday insertion.

• Choose convenient afternoon hours.  A time frame of 2-3 hours is best.  Check the local events calendar to be sure your date doesn’t conflict with another event: example- Super Bowl Sunday, local high school final sports events, etc.

• Do most of the major house preparation the weekend before.  Now’s the time to look at your house with a critical outsider’s eye.  Are there muddy paw prints on the front door?  Is the door handle on the bedroom door loose and rattling?  Are there dust bunnies built up behindthe living room chair?  Your visitors will notice these things. 

Trim bushes, wipe the smudges off the walls, pick up the yard, de-dust the furniture, and generally make things tidy.

• Go through your home, outdoors, basement, and garage and de-clutter.  Put loose things in boxes or baskets, put away excessive decorations (the cleaner looking, the better), straighten things in drawers and cupboards to look orderly.  Excessive clutter translates to potential home buyers as not caring; they will worry whether you’ve thoroughly cared for the home  maintenance.

• Have a home flyer available for potential home buyers with features of the home.

• Turn on all available lights, even if it’s a sunny day.  You want your potential home buyers to remember your home as light and bright.

• Music playing in the background can be a nice touch. 

• Other options to consider are candles burning (keep them in a place where they won’t be bumped), offering your home visitors refreshments, or baking food prior to the open house to take advantage of the inviting smell. 

Appeal to your visitor’s senses.  Your goal is to have them leave with a warm, positive feeling.

Mold in Your Home

Recent reports of multi-million dollar lawsuits settlements, horror stories of “toxic mold” and people getting sick from mold have everyone jittery. 

Insurance companies are quietly sending out insurance riders eliminating future claims due to mold or water damage. Some companies are refusing to approve any new policy on a home with a previous water damage claim (which can be quite a shock for the new buyer!)  Buyers are bolting if they see anything that looks black, without asking questions (mold? mildew? dirt?). 

Have we suddenly been invaded by evil microbes, bent on total destruction? Not exactly. 

Mold has been around forever, in thousands of shapes and forms.  It’s as common as air and earth (in fact, both will most likely have mold spores in them).  The one type of mold that has gathered so much publicity is actually rare. 

Stachybotrys Chartarum is known as black mold, even though Stachybotrys isn’t always black, and there are many other types of mold that are also black in color (go figure). The goal is eliminate mold in the home, which in theory (and usually in function) is simple–eliminate the moisture, and the mold cannot live.

The Powers of Three–Don’t Let Them Be…

For mold infestation, you need three things:
1. Mold spores (easy to find, since they’re everywhere)
2. Porous, organic materials (drywall, paper insulation, carpeting, wood… parts of your home)
3. Moisture (leaky faucets, sweating pipes, poor or blocked foundation drainage, bathroom ceiling fans that are vented into the attic and not outside, a dryer vent that blows into an enclosed area, etc.) Eliminate the moisture, and the mold problem is also eliminated. Plain and simple.

Now, let’s say you have a moldy area, and you’ve removed the water issue… Here are a few tips for permanent cleanup:

• Small moldy areas (less than 10 feet) can be cleaned by scrubbing the area with hot, soapy water, then disinfected with a cup of bleach mixed with a gallon of water.

• If you’re sensitive to mold, use gloves, protective clothing and a mask to prevent the inhalation of excessive mold spores. 

 Remove moldy materials such as carpet, drywall, wood, etc. and replace with new materials after cleaning and disinfection.

• If the area is in a crawl space, line the gravel or dirt with heavy-duty plastic to prevent ground moisture from rising.

• For dark areas in bathtub or on shower caulking, spray a commercial mildew remover on the areas as needed.

• Make sure your furnace and air conditioner condensation lines, dryer vents, stove fans, and bathroom ceiling fans are all directed to areas outside the home.  Problems have occurred in the past in attics and crawl spaces with improper installation.

• Immediately fix any cracked or loose tiles in the shower or tub area.  Moisture will get

Why “I haven’t got a CLUE” Can Affect the Sale of Your Home

A CLUE (Comprehensive Loss Underwriting Exchange) Report is used by insurance companies to determine the insurability of your home you want to purchase, and the rates that will be charged.

The company that collects the data and prepares this report is called Choicepoint.  This company has been collecting data for over a decade of detailed claims information on all properties and individuals, including both claims inquiries, and actual claims.  This information is used to calculate possible future claims.

If there have been a lot of claims or inquiries on a property, an insurer may refuse to issue an insurance policy, or offer rates so prohibitive that the buyer could decide not to buy.

Seller Tip:  It’s not just the actual claims, it’s the inquiries about possible claims that are noted as well.  A lot of inquiries can throw up a red flag.

If you’re selling a property, as a seller you can proactively determine if there are any issues by ordering a CLUE on their property here.  

How this could help a seller complete the sale of their home:

1. If you have a good report, have a copy available for buyers- it’s one more good reason they should buy your home

2. These reports can contain errors (as credit reports often do).  Knowing about them, and correcting them up front, can save a sale.

Buyers and Insurance Scores

In the 1990’s most insurance companies adopted the use of an insurance score for individuals.  This insurance score is determined to a large degree by a person’s credit score.  A good credit score = a good insurance score, which will result in lower insurance premiums.

When you purchase a home, your insurance score and the CLUE report data will determine the premium for your homeowners insurance.

There are some myths about houses For Sale By Owner (FSBO) that you should put to rest before you even think about making an offer on an FSBO home - and some truths that you should know. Because an FSBO seller is not a professional, most states do make allowances with regards to process and procedure, for instance, but every state does have disclosure laws by which they are bound. Here's five myths about FSBO sales, and the truth about how to work with them.

Myth: Owners selling their own houses are willing to take less than their asking price because they don't have to pay commission.

Truth: An owner who has decided to sell his own property without a realtor wants to make as much on his house as the guy who opts for a real estate agent. If you decide to make an offer on the house, keep the commission savings in mind - but don't count on it to lower the price by 5 - 10%. After all, if the owner wanted to pocket 10% less on his house, he'd have used a realtor and saved himself the time.

Myth: An FSBO seller doesn't have to tell you the things that are wrong with this house.

Truth: The property disclosure laws vary from state to state, but in general, FSBO sellers are bound by the same disclosure laws as realtors. There may be some variances under certain circumstances - for instance, if the owner has never lived in the house. Check the specifics of your state's disclosure laws to be sure that you know exactly what the seller MUST tell you.

At the very least, most states require that a seller disclose to you:

• The age of the house and all of its parts

• Structural defects

• Problems related with to any parts of the house(Does the roof leak? Is the furnace on its last legs?)

• Encroachments - where someone has built on another's property line

• Lawsuits or claims that have an effect on home ownership (For example, an ex-husband who hasn't handed over the home ownership rights)

Myth: Once you make an offer and put down a deposit, the owner is obligated to sell to you.

Truth: Even if you put down a deposit on a property that you like, it's not yours until the final signatures are on the closing papers. Until that time, either party can back out of the deal with varying degrees of penalty. Make sure that you sign a contract when the deposit changes hands. It should detail who gets the money if the sale doesn't go through. But do be aware that until you actually close on the house, the owner is free to accept a higher offer and return your deposit.

Myth: If you put down a deposit and don't close on the house, you lose your deposit.

Truth: A deposit on a house - often called 'earnest money' - is meant to show the owner that you are serious about buying their property. The contract that you sign should lay out exactly what happens to that deposit if the deal falls through. In many cases, it will end up back in your hands, but make sure that the contract defines who gets the deposit (or a portion of it) in every eventuality you can think of that may sour the deal.

Until you actually close on that property, the deposit is YOUR money. An FSBO seller should not spend the money before the contracts are signed. For that reason, it makes sense to set up an escrow account for the deposit, with the funds released when the deal is done. An attorney with experience in handling real estate transactions is invaluable in that case.

Myth: It's far less complicated to buy an FSBO.

Truth: Because you're not dealing with a professional, buying an FSBO can actually be far more complex than buying through a realtor. You (or your buyer's agent) will need to be more aware of the laws governing real estate sales in your state to be sure that everything is legally processed.

Don't ever assume that just because you're dealing with an FSBO, a handshake is a deal sealer. Get EVERYTHING in writing, and on the proper forms. Make sure that you get answers to all your questions - in writing so that you have a record of them.

Some questions that you might ask an FSBO seller include:

• How old is the furnace?

• How old is the roof?

• If the windows have been replaced, how long does the guarantee have to run?

• What sort of septic system does the house use, and are there any problems with it?

• Have there been any major repairs completed within the last three years?

• Are there any encroachments on the property?

• Is the property under any sort of homeowner-community agreement (for instance, a neighborhood association or town council may have specific requirements for color or outdoor decoration)?

If you're dealing with an FSBO, it is in your best interests to have a professional on your side to be certain that all the legalities are followed to the letter. Don't be tempted to let things slide, or assume that an FSBO sale should be conducted with any less professionalism than one handled by a real estate agent.

Whether you are searching for your first home or moving up to a bigger home, it is important to have a good understanding of what mortgages are and how they work. Mortgages are typically referred to as home loans, but mortgages are not actually loans in the traditional sense. A mortgage loan is actually more of a security instrument than a traditional loan. The money provided by the lender is secured by the property on which the mortgage is written.

The introduction of a mortgage loan actually creates a lien against the property on which it is written. The home itself serves as the collateral for the loan. If the home buyer defaults on the mortgage payments, the bank, credit union, savings and loan or mortgage broker has the right to repossess the home in an attempt to recover the money they are owed. The lien created by the mortgage also means that the home cannot be transferred to another party until the lien is satisfied.

There are several types of mortgages available for home buyers today. The first thing many people think of when they hear the term mortgage is the traditional 30-year fixed rate mortgage. This mortgage provides for a set monthly payment every month for the entire 30-year life of the loan. The monthly payment is determined at the outset of the loan, and the homeowner continues to make payments until the loan is paid off and the lien is satisfied.

These fixed rate mortgages also come in 15-year terms. Even though the loan term is only half of the 30-year mortgage loan, the payments are not double as you might expect. This is due to the way interest is calculated. The monthly mortgage payments on a 15-year loan are higher than those on the same amount mortgaged over 30 years, but you may be surprised at how little that difference really is. If you are considering a 15-year mortgage, you may want to run the numbers on a mortgage payment calculator to determine if you can afford the payments on a 15-year mortgage.

In addition to the traditional fixed rate mortgage, there are variable rate mortgages on the market as well. As opposed to fixed rate mortgages, these adjustable rate mortgages will see their monthly payments fluctuate as interest rates rise and fall. There will be a cap above which the interest rate cannot rise, as well as a rate and a time at which the adjustable rate mortgage can be converted to a fixed rate mortgage.

As you can imagine, a variable rate mortgage is great when interest rates are steady or falling and not so great when interest rates are on their way up. A rise in interest rates means a rise in your monthly mortgage payment, so it is important to make sure that you can afford the monthly payments even if the interest rate rises to its highest possible level.

No matter what type of mortgage you decide on, the decision to purchase a home is a significant financial decision. It is important that the buyer understand all the costs associated with home ownership – things like insurance, taxes and utilities can really add up. Once the buyer is ready to make the plunge, however, they may find that a home is their best investment in addition to a great place to live.

Copyright © 2007 Buy-and-Sell-House-Fast.com.

How to Sell Your House In the Shortest Possible Time

Ask any realtor and they'll tell you: houses that sell within the first five weeks of their listing are most likely to fetch their asking price. The longer your house lingers on the real estate listings, the more pressure you'll feel to knock the price down - and the less likely it is to sell without some incentives from you, the home seller. Even if you don't have to sell your house fast, it's the best way of getting the price that you want for it. Put your home sale on the fast track with these tips and tricks from professional Realtors.

Find a Realtor

Your best option for selling quickly is to give the job to a professional, and let their experience guide you. A realtor knows all the ins and outs, as well as what selling strategies work best in your area. They can help you set the right selling price for your property (which is the second most commonly offered piece of advice to help your home sell quickly), offer concrete suggestions for improving the chances of a sale, hook your home into the Multiple Listing Service, and guide you through every step of the selling process.

Choose your Realtor carefully, and accept their advice. He or she knows what will sell your house. (See our article in this section entitled "Find a Good Realtor"). A good Realtor will suggest most of the house sell tips listed below - tips that you can follow with or without the help of a realtor.

Set The Right Price

Every Realtor asked said that the most important factor in selling a home quickly was to price it right. Further, the most common mistake sellers make is pricing too high. Experienced real estate agents strongly suggest starting from the average price in your area and working from there, rather than starting with your desired net gain. Your best gauge to determine the right selling price for your home is the recent selling prices of similar homes in your neighborhood. Your realtor is the best source of those prices - they have insider access, after all.

If you're not using a real estate agent, you can still check recent sales listings through your local registry of deeds, and other sources. Figure in the condition of your house, additions or special circumstances, but don't expect to sell for much more than the average price in your neighborhood.

Prepare Your Property BEFORE Listing It

There are a number of things you can do to make your property more appealing, and they should be done before you start showing it - and this is called home staging. (See our article in this section entitled "Home Staging Tips"). 'Staging' has been known to make home sell faster. The key is being sure that your house looks its very best from the start. Now is the time to make needed repairs. If it needs sprucing up, get that done first. Fresh paint, trimmed bushes, mowed lawns and immaculate cleanliness are all important factors in making your home attractive and saleable.

After Listing, Keep The House Immaculate

Be ready to show the house at a moment's notice. Make sure you pack up the junk and rent a storage unit as clutter and junk will erode the potential equity your house will bring. If there are too much 'junk' in a room it makes the room look smaller and distracts the buyer's attention. Perform a thorough house cleaning. Make the windows shine and wipe down the baseboards. Keep the sink empty and wiped, and make sure that the bathroom and kitchen are spotless. Don't forget to eradicate unpleasant odors. It's important that your house should look as close to move-in condition as possible - all the time!

Fade Into The Background

When the house is being shown, be as unobtrusive as possible. If you've contracted with a Realtor let him or her do the selling. If you're doing the selling yourself, be available to answer questions and conduct a brief tour - but give the prospective buyers plenty of 'alone time' to explore and kick the tires.

Offer Incentives To Make The Asking Price More Attractive

Got a buyer that just loves the house, but needs a little extra boost to make the commitment? There are a number of incentives you can offer as an alternative to lowering your asking price. This is another place that a good realtor can make valuable suggestions based on their own experience. An offer to cover closing costs, for instance, can bring the up-front expenses of buying your home into range for a first-time buyer struggling to meet a down payment, points and closing costs (See our article in this section entitled "How to Sell Your Home in a Slow Market").

Other common incentives include a 'decorating allowance' or including household items and appliances in the purchase price.

Take Advantage Of Employer Help If It's Available

If you're relocating for work, check your company's relocation assistance plan. Some may cover the cost of long-distance selling, or even purchase the home and resell it, depending on the circumstances.

There you have it. Apply these tips to sell your house fast as the peak home selling and buying season is upon us.

Chris Styner

One of the easiest ways to sell your house fast and for the right price is to choose a good Realtor - one who will work for you, and work with you to sell your property. The key to finding the best realtor is to research and interview several, and then choose the one that you trust the most. What should you be asking and looking for?

Here are a list of questions that you should ask if you want to find a good realtor.

Question # 1: How will you sell my house?

This question can be broken down into the following: How will you advertise my home and in which markets? How successful is your advertising? Do you use newspaper, real estate magazines, a multiple listing service, the internet?

The realtor should be able to describe a marketing plan to you without much hesitation. They should be able to name publications, and list web site addresses that they use regularly.

Question # 2: How long have you been a Realtor (or real estate agent)? (How many houses have you sold? How many houses have you sold in this neighborhood?)

You want a realtor who is familiar with your neighborhood and the market for homes in your neighborhood. A Realtor with a great track record selling moderate priced multifamily dwellings may not be your best choice if they don't have the experience selling your upscale single family home.

Question # 3: Is my home typical of the homes that you sell? (What price range of homes do you usually list? Can I get references from those you've sold homes for?)

For the same reason you want a Realtor familiar with your area, you want one with experience selling the kind of home you're trying to sell. A reputable real estate agent should have no problem with supplying you with the names of previous customers.

Question # 4: Are you a member of any professional organizations or regulatory boards with oversight?

There are several professional Realtor associations that expect their members to pass regular benchmark tests, and uphold standards and ethical practices. Find out which organizations, if any, your prospective Realtor belongs to.

Question # 5: Is your commission negotiable? (What commission do you expect?)

A typical commission for a full service agent is between 6 and 7% of the selling price of your home. A listings-only agent may take as little as 2-3% through an exclusive contract - but they will get that 2-3% no matter who sells your house, unless you find the buyer yourself. Be cautious of any Realtor who promises you full service for very low commission. Chances are that they won't focus the attention you need on your sale.

If you're buying a home as well as selling, you might be able to negotiate a lower commission by using the same agent for both the sale of your old house and the purchase of your new home.

Remember that you are the hiring party - that puts you in control. Never sign with a realtor that you don't trust, no matter how good the deal he or she offers you seems. As in most other things, if it sounds too good to be true, it probably is! Now you've equipped with this list of questions, you can find and compare a good agent with confidence!

Copyright © 2007 Buy-and-Sell-House-Fast.com.

How Home Staging Can Help You Sell Your Home Fast!

If you've been doing any research about home selling - and if you haven't, then you certainly should be - you've probably run across the term 'home staging'. At its simplest, home staging refers to making your home attractive to potential buyers.

Buyers tend to be ruled by emotion when picking out a home - and while financial advisors caution against that, buying a house that makes you feel good is not a bad way to make a decision. As the seller, your job is to make them feel good in the house you're selling.

Old time real estate logic used to be that cookies or an apple pie baking in the oven would put your prospective buyers in a buying frame of mind. While there's far more to it than that, making your house smell homey and inviting is one way to make it more appealing to those who come to look at it. Home staging shouldn't be a piecemeal approach though. If you want to sell your house for top dollar, invest the time it takes to turn your house for sale into a buyer's dream home - and follow through with a low-key showing style that lets them imagine themselves living the dream you manufacture.

Are you interested in selling your house for top dollar or faster in the slow market? Then try these tips to set up your home for showing to prospective buyers.

1. The number one rule of home staging is to depersonalize. If you do nothing else, you absolutely need to pack away anything that makes the house 'yours' as opposed to theirs. Your family photos may be precious to you, but to a buyer, they're clutter. Clear off counters and shelves, pack away books and take down photos off the walls.

2. Pare the furnishings down to the bare essentials. If you're going to be living in the house while you show it, this may be a bit more difficult, but it's still important. Pack away your favorite old, shabby recliner and get rid of the stepstool or extra high chair in the kitchen. You want just enough furniture to define a room's purpose without crowding the room.

3. The mood that you're aiming for is cheerful and bright. If it's a sunny day, open drapes and curtains to let the sunshine in - but make sure that those windows are scrupulously clean. If the windows look out on a back yard that's less than appealing, get out the lawnmower and hedge trimmers to MAKE it appealing.

4. If the day is gloomy, turn on the lights in every room before the buyers show up. Using white or cream on the walls and keeping furnishings in light, bright colors will guarantee that the house you're selling looks cheerful and appealing even on the gloomiest day.

5. Fresh flowers are one of those little luxuries that make people feel good. Use them both inside and out. Flower beds in the front of the house add to the curb appeal, and a path lined with flowers can't help but put a potential buyer into the right frame of mind before they ever step through your front door. Inside, try a small table in the entry hall with a tasteful arrangement of cheerful flowers, a bowl of flowers or fruit in the middle of a dining room table or a vase of flowers on a dresser in a bedroom.

6. Remember that there's more to appealing than what meets the eye. Make sure that your house is comfortable. If it's hot, turn on the air conditioning an hour or so before you expect buyers so that there's time to bring it to a comfortable temperature. If it's cold, set the heat at a comfortable 68 - 70 degrees.

7. Appeal to all the senses. Psychologists tell us that the nose influences us far more than we imagine. Make sure that your house smells fresh, clean and appealing. CLEAN is the keyword. One of the best ways to freshen your home is to wash all the curtains and fabric fittings in a fresh-scent laundry detergent and hang them. For a quick air freshener that doesn't leave behind a 'chemical' scent, toss a clean sheet in the dryer with a fresh-scent fabric softener sheet about twenty minutes before a showing, or sprinkle some cinnamon and fresh orange peels in a pot of water and simmer it on the stove. Just be sure to remove it BEFORE your potential buyers get there.

8. Beautiful bathrooms make a big difference. Replace your old shower curtain, and make sure that the fixtures, mirrors, porcelain and floors shine.

9. When you're selling a home, you're selling a fantasy. Buyers will see themselves living the lifestyle you 'stage' in your home. Get rid of anything that detracts from that fantasy. That includes pets and children. No matter how adorable you think they are, to potential buyers, they're a distraction. Ship your kids and pets off to a neighbor's while you show your house so that your buyers can explore the house undistracted.

10. Don't forget the outside. Outdoor living spaces are more and more important to people. Treat your back deck or patio like another room in your home. A few decorating touches can make it more than just a 'back yard'. Cover a worn picnic table with a bright tablecloth and replace worn chair cushions with new ones.

A little home staging, a fresh coast of paint and new carpet,  can go a long way to making your house appealing and attractive to buyers. Take the time to pare it down to the essentials so that little touches make a big difference.

If you don't know how to do this, you can always hire a professional home stager. Typically, full home staging service will cost between $1,500 to $2,500. Hiring a home staging professional can really pay off consider that staged home can sell faster between 3 to 50 percent and increases the selling price between 2 to 10 percent more than an unstaged home. Get your home ready to sell, both inside and outside, by home staging now!

Chris Styner

It has been hard to miss the run up in real estate profits that have taken place over the last several years. Many circumstances, including record low interest rates, a robust economy, new mortgage products and rapid growth, seem to have converged to create a perfect world for those selling homes. Now that the rate of home appreciation has begun to slow, it can be much more of a challenge to sell your home for an acceptable price.

Part of this challenge is psychological. Even though the seller may have a substantial profit in the home, it can be difficult to sell when a few months earlier the home would have sold for much more. Therefore, it is important for every seller to take a step back and evaluate the true value of the home and the surrounding area. In a more realistic world, that mobile home in California probably never was worth $1.2 million, even if the trailer park features swimming pools and tennis courts.

Those selling into today's more challenging market should sit down and calculate just how much they have invested in the home, and how much equity has been accumulated. Even those who purchased their homes recently are likely to have experienced good gains in the recent run up, and it is very unlikely that the property is worth less than it was when purchased.

Sitting around with an unsold home on the market can certainly be a frustrating experience, especially if the home seller has already purchased a new home. It is important not to panic, however, and not to drop the price precipitously. A dramatic drop in price is a big red flag to buyers, and it may make the home less likely to sell instead of more likely.

Often, the best way to sell a home more quickly in a less than stellar market is to adjust the terms of the sale instead of the price. While it may sometimes be necessary to adjust the asking price downward, or to negotiate a lower price with the buyer, sometimes offering help with closing costs, or an extended settlement date, will go a lot further.

When deciding which terms of the sale to change, it is important to remember that the recent run up in home prices has left many potential buyers stretched and unable to afford the traditional 20%, or even the more generous 10%, down payment. Often sellers who offer a so-called "seller contribution" have better luck selling their homes than those who simply lower the price.

For instance, a seller may offer to help pay some of the closing costs of the sale, thus freeing up more of the buyer's money for the required down payment. Sellers have been using this strategy for years in down markets, and it may be time to bring this tactic out of storage.

Most lenders will allow such seller contributions and not look at them as price reductions. This distinction is an important one, since the mortgage will be written as a percentage of the lesser of the sale price or appraised value. Many lenders will allow the seller of the home to make a three percent seller contribution, while others are more generous and will allow a seller concession of six percent or even higher.

Real estate brokers will have much more information on how to negotiate and write such a seller concession in lieu of a decrease in price. As these agreements become more and more popular, more home buyers are looking at these types of financing options. Since the down payment is a deal breaker on so many homes, it makes a lot of sense to engage in a negotiation that allows the buyers to have more cash in their hands at the closing. For more tips on how to sell your house in the slow market, (See our article in this section entitled "How to Sell Your House In the Shortest Possible Time!").

Chris Styner

Rent vs. Buy

Are you a renter who is thinking of buying a home?  It is the great American dream, but many renters don't really understand the potential impact on their lifestyle and finances.  Buying a house isn't for everyone, but it can be the most rewarding purchase you ever make.  From the renter's perspective, home ownership can look like a great opportunity.  But there are many things to consider before making the decision to buy.

First of all, do you have the money it takes to purchase a home.  It's not just about having a down payment, in fact you may be able to qualify for 100% financing.  Moreover, you will need to consider all the other costs associated with purchacing a home including the closing cost needed up front, monthly payments, insurance, taxes, repairs and any upgrades you may need to make.

Housing costs can be divided into shelter costs (putting a roof over your head) and investment costs (building equity). When you rent, you pay your shelter costs, and the landlord pays the investment costs.  When you buy, you pay both, which is usually more.  Ten years later when you sell the house, you may find that your investment did well and you saved a lot of money by buying; but on a month-to-month basis, you can count on spending more money to purchase a home.

A house can be a great investment, but like any investment, there is risk.  Insurance helps you manage risks like fire, earthquakes and thefts, and a home warranty plan can help to keep the cost of major repairs in check, but there is not a lot that you can do if the neighborhood property values level off or begin to fall.

For most renters, buying a house means moving to a smaller house and perhaps to a cheaper neighborhood.  You will almost certainly take a lifestyle hit.  The life of a renter can be quite extravagant, and you may find that it will be hard to take pride in the bungalow that you will be able to buy.

Buying a house is an investment, and for many people it is a good one. But, is it a good investment for you?  If you own a house for only a short period of time, you probably won't recoup the high costs of buying and selling it.  Time is generally the most influential factor in the rent vs. buy decision.  Unless you live in an area where property prices are rocketing upward, it generally does not make sense to buy a house if you can't commit to owning it for at least four years.

One of the greatest joys of ownership for many people is setting down roots.  When you buy a house, you have your own land, your own house and a sense of becoming part of a community; meeting and sharing with your neighbors, getting involved in local issues, maybe even running for city council.

This lifestyle can be very attractive, especially if you have children who will enjoy the stability a home can provide.  But buying a house means you will have much less money available to invest, or for cool trips on the weekend. Instead you could be mowing the lawn, cleaning the gutters, or painting the kitchen.  If you don't have enough cash, there are alternatives, the first of which is that you rent for now and start saving money so you can afford to buy later. Most lenders offer several programs to help buyers get loans with small down payments.  You may even be able to qualify for a mortgage with no down payment.  Or perhaps your parents, or other family members can provide you with the money needed to cover the cost associated with making your purchase?

You can expect that your initial mortgage payments will be higher than your current rental costs.  However, there are factors that make the decision to buy less painful including tax savings and other factors including building equity that offset the additional monthly expense.

Buying a home should be looked at as a long-term investment since you make a large up-front cost and it can take years to get a good return.  For example, the transaction fees of buying and selling a property can add up to roughly 10 percent of the selling price.  It takes a lot of appreciation to make up for these transaction costs.

Residential real estate is considered a solid, not spectacular, performer in most markets.  Mostly because the supply can often respond quickly to increases in demand, and the main risk of oversupply happens only on a local economic level and is usually temporary.  You need to figure out where you fall on the risk curve and then look at the return on investments at that risk level.

To find out more about the positive aspects of home ownership and if you qualify to make the transition from a renter to a homeowner, contact Debi and I today.  We would be more than happy to provide you with a free consultation to see if you are a candidate to purchase a home, you may also click here for buy vs. rent homeownership calculators.

Chris Styner

 

Stop A Foreclosure Sale And Keep Your Home

One of the most difficult situations for a homeowner to face is a possible foreclosure. After all our homes are our places of refuge, and the thought of them being taken away is not pleasant. However, if you find yourself in a situation where foreclosure is a very real possibility, you should know that there are a number of steps you can take to stop foreclosure and keep possession of your home.

Your first decision should be whether it's truly feasible for you to keep your home. Generally, if you've suffered a temporary financial setback that has since been alleviated, and your monthly house payment (including taxes and insurance) is less than 40% of your gross monthly income, there is no reason why you shouldn't be able to keep your home. However, if the payment is more than 40% of your monthly income, then you should seriously consider selling your home in order to avoid additional damage to your credit report.

If you've decided that you're going to try to keep the house, you have several options.

Negotiate With Your Lender

The first option to do to stop foreclosure is to be up front and honest with your lender. You should always be to attempt to negotiate with your current lender. Many people think that the bank enjoys repossessing homes, but this couldn't be further than the truth. Their aim is to keep payments current, not take away your house because banks are losing money if they take back your homes. Therefore, banks usually have special financial assistance programs available that you can take advantage of to stop foreclosure.

If you believe that you can make up defaulted payments over a number of months, and your history with the lender up to this point is good, they'll often be willing to rewrite the note or arrange a payment plan or even allow you to make double payments in order to get caught up. However, you'll need to present the reason that you were in default, and a plan for repayment that can be backed up with proof of change in circumstances for a lender to be receptive. Even if you're fairly sure that the lender will not be receptive, you should still make the attempt.

Refinance Your Home Loan

The second option is to refinance your home loan. With the interest rates at all-time low now, you might want to refinance your home loan if you bought your home when the interest rates were higher. With lower interest rate, you will be able to reduce your monthly payment and eliminate your problems. If refinancing through your original lender isn't a possibility, you still may be able to stop foreclosure on your home by refinancing through another lender. Generally, a lender will require that the total of all loans against your home must be less than 75% of your home's current market value. The more equity you have in your home, the more likely it is that you've be able to refinance and bring your loan current. Find the best interest rates and refinance now!

If you can't negotiate on your own, there are several non-profit groups who can help negotiate with your creditors, including your home mortgage holder, and work out a payment plan for you. Credit repair organizations are a viable alternative to declaring bankruptcy. Bankruptcy should be your last resort. If you have no other options available, and a foreclosure sale is imminent, declaring bankruptcy under Chapter 13 can allow you to repay all outstanding debts over a period of 3 to 5 years, while keeping your assets.

Overall, it is possible to stop foreclosure. The most important thing is to communicate with your lender if you have a problem with your house payment. You will be able to work out a solution with them before it gets too late. Alternatively, you can consider refinancing your home loan so that you are able to bring your loan current.

No one wants to face foreclosure, but if you find yourself in this position, it will help you if you are aware of services available that you can take to stop foreclosure and keep your home now.

 

 

The 10 Dumbest Mistakes Smart People Make When Buying or Selling a Home – and How to Avoid Them

Buyers

Sellers

This report courtesy of

Chris & Debi Styner

Century 21 Wright

800-763-7154

How to Stop Spending Money on Rent and Own a Home Instead

If you’ve always rented a place to live, buying a home can seem like a monumental undertaking.  This report breaks down this process into clear steps.

Seven Steps to Transition from Renter to Homeowner

Step One:  Identify Your Needs and Wants

Begin your search by considering the kind of home you need and want.  Write down your specific requirements like number of bedrooms, size of yard, floor plan, location, schools, etc.

Step Two:  Determine How Much You Can Realistically Afford

Consider your budget and financial obligations.  Decide what monthly house payment you can really afford.  Most mortgage consultants advise limiting your payment to no more than one-third of your net monthly income.

Step Three:  Get Pre-qualified or Pre-Approved By a Mortgage Consultant

When you know in advance the amount of loan you can obtain, you can focus on searching for houses in the targeted price range.  This can save you time when you find that perfect home, because sellers favor buyers who are pre-approved.

Experienced mortgage consultants can let you know what specific loan programs are best for you.  By taking a look at your financial situation and credit history, a mortgage consultant will tell you if you can qualify for the home you want, and will find a loan that best suits your needs.

For the approval process, you and your mortgage consultant will complete the required documentation and submit it to an underwriter.  A pre-approval is an actual loan commitment from a mortgage consultant or lending institution.  This means that you definitely qualify for a loan.  Talk to your mortgage consultant about the costs and time involved to secure pre-approval.

Step Four:  Work With an Experienced Real Estate Consultant

You can learn a lot about consultants by talking to them about their experience.  In a short time, you’ll be able to determine if they’re the right person to meet your needs.

Questions for Agents:

1. In what areas of town and price ranges do you specialize?  (Keep in mind that some agents specialize in only one area or one price range.)

2. My objective is to buy a house by ___________.   How will you help me achieve this goal? 

3. How often will you update me with new property listings?

Step Five:  Tips for Successful House Hunting

1. Keep an organized record of your research.  Write down comments about the homes you see.  Keep track of your likes and dislikes and offer feedback to your real estate consultant.  Some buyers are reluctant to tell an agent what they really think of a house; they think the agent might take it personally.  Remember, the homes don't belong to the agent!

2. Make sure your agent is aware of your time schedule and expectations.  Do you like to look at one or two homes per session?  Four?  Eight?  Discuss this with your agent.

3. Tell your agent about any homes you see that interest you and that you'd like to know more about.  This includes homes you've "discovered" as you explore the area and those advertised in the newspaper.

4. If you like to spend time driving around by yourself looking at houses, ask your agent for a list of drive-bys — homes to consider first from the outside.  Your agent can make appointments to show you the interior of the properties that appeal to you.

5. It’s important to know beforehand whom your agent represents.  Some agents work only for the seller. 

Step Six:  Make a Purchase Offer

Work with your real estate consultant to determine the most appropriate purchase offer.  Your consultant will present the offer on your behalf.

Step Seven:  Save on Your Initial Investment and Monthly Payments

There are only two major investments to consider when buying a home.  These are the initial investment, which includes down payment and closing costs, and the monthly payment, which includes principal, interest, taxes and insurance.  Here are some things to consider.

Initial Investment

1. Choose a low or zero down payment loan.  You don’t necessarily have to put 20% or even 10% down.  You can pay 5%, 3%, or even zero down on some loans.

2. Some Lenders have programs to cover your closing costs.  Ask your mortgage consultant about them.

3. As part of your offer, ask your real estate consultant about the seller’s paying some of your closing costs.

4. Shop around for your homeowners’ insurance.  A little comparison shopping can save you money.

5. You may be able to deduct money paid for discount points from your gross income before computing your tax.  See a CPA for more information.

Monthly Payments

1. Get a loan that doesn't have monthly mortgage insurance premiums.  You may be able to reduce or eliminate them by paying a little more at closing.  By putting 20% or more down, you can eliminate them entirely.  Talk to your mortgage consultant about other ways to eliminate monthly mortgage insurance payments.

2. Take advantage of rate lock programs that are currently available.  You can generally lock in a low interest rate 30 to 45 days in advance.  Secure an appraisal before you lock in a rate.

3. Remember that interest payments on a primary residential mortgage are fully deductible.  Your property taxes are also deductible. Tax rates definitely favor homeowners.  Be sure to declare both your mortgage interest and property taxes when you file your income tax returns.

4. Consider an adjustable rate mortgage.  Adjustable rate mortgages (or ARMs) can be as much as 3% lower than fixed rates.

This report courtesy of

Chris & Debi Styner at Century 21 Wright

800-763-7154

Five Deadly Mistakes Home Sellers Make

Sooner or later, most homeowners will be in a position to sell their home. This report summarizes the top five mistakes that home sellers make, simply because the experience is new to them.

Mistake #1.  Using a Real Estate Agent Instead Of a Realtor

When you're looking for help buying or selling property, it's important to remember that the terms "real estate agent" and "Realtor" are not synonymous.

–         To be a Realtor, you must be a member in good standing of the National Association of Realtors (NAR).  The equivalent organization in Canada is the Canadian Real Estate Association (CREA).  Both are non-profit trade organizations that promote real estate information, education and professional standards.

–         NAR and CREA members adhere to a strict code of ethics founded on the principle of providing fair and honest service to all consumers.  Realtor business practices are monitored at local levels.  Arbitration and disciplinary systems are in place to address complaints from the public or board members.  This local monitoring keeps Realtors directly accountable to the individual consumers they serve.

–         The National Association of Realtors also has earned a strong reputation for actively championing private property rights and working to make home ownership affordable and accessible.

Mistake #2.  Failing to Maximize the "Curb Appeal" of Your Home

When you're preparing your house for sale, remember the importance of first impressions.  A buyer's first impression can determine whether they’ll choose to look inside.  It’s estimated that more than that 50% of shoppers decide to purchase a home even before they get out of their car.  With that in mind, be sure to stand outside your home and take a realistic "fresh look."  Then ask yourself (and your Realtor) what you can do to enhance the "curb appeal.”  It could make a significant difference in your final sales price as well as the speed of your sale.

Mistake #3.  Not Appreciating the Buyer’s Point of View

Unreasonable though it may be, a prospective buyer would like to see a perfect home from top to bottom and inside and out.  To improve the likelihood of an easy, fast and profitable home sale, we suggest that you attend to the following items:

On the outside

1. Sweep the front walkway.
2. Remove newspapers, bikes and toys.
3. Park extra cars away from the property.
4. Trim back the shrubs.
5. Apply fresh, clean paint on your home, wooden fence, and outbuildings.
6. Clean windows and window coverings.
7. Maintain sprinkler systems.
8. Maintain sealants around windows and doors.
9. Make sure roof and gutters are clean and in good condition.
10. Mow the lawn frequently and plant flowers.
11. Keep pet areas clean.
12. Take down out-of-season decorations.

On the inside

1. The kitchen and bathroom should look and smell clean.
2. Vacuum rugs and carpets (and have them professionally cleaned, if necessary).
3. Place fresh flowers in the main rooms.
4. Put away dishes, unless setting a formal display for decoration.
5. Make all beds and put away clothing.
6. Open drapes and turn on lights for a brighter feel.
7. Straighten closets.
8. Put away toys.
9. Turn off televisions.
10. Play soft music on the radio/stereo.
11. Keep pets out of the way and pet areas clean and odor-free.
12. Secure jewelry, cash, prescription medication and other valuables.
13. Consider removing unnecessary furniture and appliances from counter tops to create a greater sense of space.
14. Consider baking cookies or lighting scented candles to create a homey atmosphere.

Mistake #4.  Thinking You Need To be In the Home to Provide Details to Prospective Buyers

Allow your Realtor to do his or her job without you on site.  Most potential buyers feel more comfortable if they can speak freely to the real estate professional without the owner present.  If people unaccompanied by an agent would like to see your property, refer them to your real estate professional for an appointment.

Mistake #5.  Over-Pricing Your Home

Perhaps the most challenging aspect of selling a home is listing it at the correct price.  It's one of several areas where the assistance of a skilled real estate consultant can pay for itself versus trying to sell your home yourself.  

If the listing price is too high, you'll miss out on a percentage of buyers looking in the range where your home should be priced.  Some people think that if they leave some “wiggle room” in the price, they'll always have the opportunity to negotiate and accept a lower offer.  However, chances are the offers won't even come in, because the buyers who would be most interested in your home have been scared off by the price, and won’t even take the time to consider it.  By the time you correct the price, you've already missed exposure to a group of potential buyers.  

The listing price becomes even trickier to set when prices are quickly rising or falling.  It's critical to be aware of where and how fast the market is moving – both when setting the price and when negotiating an offer.  An experienced, well-trained real estate consultant is always in touch with market trends – often even to a greater extent than appraisers, who typically focus on what a property is worth if sold as is, right now.

This report courtesy of

Chris & Debi Styner at Century 21 Wright

800-763-7154

How Sellers Price Their Homes

How Much Should I Offer?

Clients often ask, "How much under the listing price should we offer?"

The best way to understand market value is through comparative research.  Professional real estate consultants review and study at least 40 to 60 listings, visit 10 to 20, and inspect 5 to10 properties to develop a sense of relative worth for properties in a given area.

Additionally, a professional appraisal factors into determining the fair market value of the home.  An appraisal protects you because lenders want to make sure that you don't overpay for a home.  If the home value does not meet the sale price in the eyes of the appraiser, they’ll let you know.  At that time, the Realtor can renegotiate the sale price or void the agreement and refund your earnest money deposit.

There are four basic factors that influence how sellers price their homes.

1.  Sellers Get Poor Advice

Some real estate agents inflate the value of the seller’s home in an effort to obtain the listing.  There’s a natural tendency on the part of sellers to list with the real estate agent who gives them the promise of the highest selling price.

When homes are overpriced, they 

• Stay on the market longer
• May not sell

2.      Sellers Set an Unrealistic Price for Emotional Reasons

These sellers believe their home is worth every penny of their asking price for personal reasons.  Sometimes they lose their objectivity and focus on features that seem more valuable to them (rather than to the buyer).  For example, the suede wall-covering in the master bedroom may not appeal to potential buyers.

 Additionally, some sellers, anticipating reticence to buy, feel it’s a good idea to leave a little "negotiating" room in the asking price.

3.  Sellers Price their Home at Fair Market Value

These sellers carefully and realistically study other homes for sale, and may consult with a real estate professional.  They price their home competitively, and it usually sells quickly at (or very near) the asking price.

4.  Sellers are Motivated to Sell

When sellers want a fast sale, they price their home below fair market value.  These homes usually sell right away, at or above the listed price.  There are usually competing offers.

We’ll help you determine the fair market price for any home.  Our job is to ensure that you have the tools and information you need to make an informed decision.  We’ll help you every step of the way.

Making the Move Easy on the Kids

Most often, a move represents an important step forward for the adults in the family because of a new job, promotion, transfer to a different office, or financial success has allowed them to buy a more comfortable house in a different neighborhood.

Moving from one house to another is seldom easy and enjoyable for adults (who chose to move), and can be especially troubling for children (who prefer to stay where they are).  But if parents are mindful of their children’s concerns and needs, they can minimize distress and discomfort.

A Move Affects Children Differently from Adults

People typically live in a house for about five years and then move on as their jobs and incomes allow.  Five years is a small percentage of an adult’s life, but it’s half the lifetime of a 10-year old:  it includes almost all the years he or she can remember.  It may be the only home the child’s ever known, and the place s/he feels most safe and comfortable.

A house is much more than a place to live to children.  It’s the center of their world, associated with familiar activities, sights, and sounds.  A move threatens their security and leaves something unknown in its place.  Their friends, and the familiar streets, schools, shops, trees and parks are gone.  The new neighborhood is someone else’s world. 

The impact of a move on a child starts about the time he or she first hears about it, and often continues until the new house becomes home.  It’s not necessary to tell young children about this big change immediately, although they must hear about it from their parents before someone else tells them.  

Expect that your children may be even more distressed after the move.  The new house will not be comfortable or beautiful the night the moving van leaves, or for months after.  The furniture won’t fit the rooms, and the floor will be covered with half-unpacked boxes.  The children won’t know anyone at school and, if you move during the summer, they may have little opportunity to meet others their age.  They’ll need your help:  plan ahead to support and comfort them and ease the stress of the move.

Easing the Stress of the Move

Young Children Have Special Needs

Describe the move in a truthful, positive way.  Tell upbeat stories about the benefits of the new house and location.  Plan together to make the new setting feel like home:

• Ask about their favorite activities (e.g. soccer), and plan to investigate youth programs in the new community.
• Ask what they like best about the present house (e.g. the swimming pool) and assure them that you’ll find a place for them to swim in the new town.
• Ask what they like best about the neighborhood (e.g. their friends), and make plans to invite the children on the block to a Welcome to the Neighborhood Party once you’ve settled in.
• Ask what they like the most about their school (e.g. their teacher), and let them know that you’ll request a tour of their new school and a chance to meet their teacher beforehand.
• Ask what they like most about their community (e.g. the video game parlor), and assure them that those activities will be available in the new location.
• Use children’s literature.  Books can help children prepare for and understand difficult situations.  Story characters who model successful coping strategies are an excellent resource for children.
• If the new home is too far away for the entire family to visit, show the children pictures of the house, yard, and neighborhood.  Videotape it if you can.  Include pictures of each child’s new room.  
• Ask the children to name the house with an inviting description, like “Oak Hill,” for the big trees and sloping lawn.  

Young children need protection from fear of the unknown.  Listen carefully to their concerns and respond quickly to relieve their apprehensions.  It’s normal, for instance, for a young child to worry that his or her toy box and shelf of stuffed animals might be left behind.  Uncover those anxieties by actively involving your children in the process.  

• Don’t just promise to let them decorate their own rooms – take them to the paint store and let them bring home color swatches.  Shop together for bedspreads and towels and carpets.  
• They must leave old friends behind.  Plan a going-away party and let them invite their own guests to bring closure to that parting.  
• Take pictures of everyone and make a photo album.  If a child is old enough, send him or her out with a roll of film in the camera and the assignment to photograph the scenes he’ll want to remember.
• Give each of them a long-distance telephone call allowance so they can keep in touch with people who are important to them.  
• Buy a stack of picture postcards that show positive views of your new community and encourage them to write messages to the friends and relatives they left behind.  
• Try to pack children’s things last and include your preschooler in the packing process.
• Keep security objects such as a favorite teddy bear or blanket close by.  Keep your routine as normal as possible.  Regular eating and nap times are important.

Encourage children to get outside and get to know the people and the neighborhood.   Encourage older children to distribute fliers for babysitting, lawn care, or car washing.  Encourage them to participate in school activities that appeal to them.  Get them on sports teams and into clubs. Throw a housewarming party for yourselves and invite all the adults and children on the block.

Teenagers

Most teenagers see themselves as adult members of the family, and may feel disrespected if they don’t hear about the move early in the process.  Also, they’ll need time to work through the ordeal of leaving their friends.  Ending relationships and saying goodbyes takes time, and is best done before the move.  Some relationships will be extremely difficult to bring to an end, and these will require thoughtful, personalized planning.  How, for instance, do you move a 17-year-old a thousand miles from her steady boyfriend?  

Even though teens seem more advanced in their social skills, they may worry a lot about making friends and fitting in.  Visit their new school and check out local activities and employment opportunities for young people.

Communities have their own culture and way of doing things, and this is often reflected in the way teens dress.  How they look is really important to teens.  Before spending money on a new school wardrobe, your teen may want to observe what’s “in.”  Purchasing a few new outfits can often help a teen feel more comfortable.

It’s particularly important to let teens known that you want to hear about, and respect, their concerns.  Blanket assurances may seem to your teen like you’re dismissing his or her feelings.  It may help to explain that the move is a type of rehearsal for future changes, like college or a new job.

At any age, get help if emotional problems arise.  Ask a teacher for assistance.  Consider professional counseling.  Don’t let a serious problem slide.  

Eventually, the strangeness and temporary discomforts should diminish.  New friends will become good friends.  The new house may become the family gathering place that your grandchildren will visit on holidays.  In the long run, everything will work out fine.

This report courtesy of

Chris & Debi Styner at Century 21 Wright

800-763-7154

Free Report:  Protect Your Home from Burglars

This article provides practical and effective techniques for securing your home and protecting your family from intruders.  The report highlights the safety of doors, windows, alarm systems, and general security.

Doors:

• Choose strong and sturdy solid wood or metal exterior doors.
• Mount the hinges on the inside, so someone can’t remove your doors from the outside.
• If there’s a mail slot in your door, make sure that it’s small enough to prevent a person from reaching in and grasping the doorknob or lock.  If you have a pet door, investigate ways to secure the door.  For example, there are now pet doors that open only when activated by a microchip in your pet’s collar.
• For sliding glass doors, install a pin where the frames overlap to prevent the door from opening.
• Change or re-key your locks when you move into a new or existing home.  The former owners (or tradespeople) may have shared their keys with others.

Windows:

• Don't use crescent or "butterfly" latches to secure double-hung windows; they can be pried open easily with a knife.  Use a do-it-yourself nail or bolt window stop instead. Drill the hole for the stop at a slight downward angle to prevent a burglar from using pressure to jiggle the pin out of the hole.
• Laminated glass windows (which can be cut only from one side) prevent an intruder from cutting glass to gain entry.  Laminated security glass products can be customized for virtually any application, regardless of requirements for heat-transfer, visibility, or aesthetics.  They are especially effective in front-door windows and sidelights.
• Filming a window to reduce heat from direct sunlight does not make it stronger. 
• Lock windows when not in use.

Alarm Systems:

According to the FBI, homes equipped with centrally monitored alarm systems are 15 times less likely to be targets of break-ins.  These guidelines will help you choose one that's right for your security needs.

1.  Determine how much protection you need.

The goal of a residential security system is to detect an intruder as early as possible, alert the home's occupants to his presence, and scare him away before he does any harm. Progressive layers of protection accomplish this goal.  Imagine four concentric circles around your house:

• Center circle: Your family and your most valuable possessions.
• Second circle:  The interior of your home.
• Third circle:  The exterior shell of your home.
• Fourth circle:  The property around your home.

For most people, a system that protects the second and third circles is both effective and cost-efficient.  This involves installing sensors on the windows and exterior doors, and interior motion detectors as backup to the point-of-entry protection.  The additional cost of protecting the innermost circle adds spot protection for high-value areas, such as a security closet or safe, and may include a 24-hour panic button.  At the outermost circle of protection, motion sensors let you know when someone enters your property.  Unless you live in a remote or concealed location, this protection may be more than you need when balanced against the equipment and installation costs.

2.  Decide how you want the system to respond.

At a minimum, include one interior siren to scare off the burglar and alert you to the situation.  You may want to add an exterior siren so your neighbors will hear your activated alarm.  Some systems include automatic, silent monitoring, meaning they send a signal to a central station where operators notify the police, fire department, or security company.

3.  Choose an alarm system.

A basic alarm system consists of a low-voltage electrical circuit with sensors installed on doors and windows.  When someone opens a door or window, it interrupts the flow of electricity through a sensor and activates a siren or flashing light.  Many systems also include motion detectors.  When something moves within the detector's range, an alarm sounds.

Electronic alarm systems come in two basic types:

1. Wired systems (with concealed wires in the walls and crawl spaces) require running low-voltage electrical wires from a master control panel to doors and windows, motion detectors, keypads, and sirens. 
2. Wireless systems use miniature radio transmitters instead of wires, and require very little drilling and no special tools to install.  You can take a wireless system with you when you move.  A wireless system is a better do-it-yourself choice.

Optional enhancements are available in both wired and wireless systems – from motion detectors that can’t be tripped by pets to remote access that allows you to check the system by phone from a distant location.

4.  Compare prices.

Get bids from two or three reputable security companies in your area.  Compare the installation charges, annual inspection costs, and monthly fees (for monitored systems).  Also, check with your insurance agent to see if you'll receive a discount for installing a certain type of system.

5.  Use it right.

Alarm systems are only a part of good home security.  Make sure that all the people who live in your home understand how to use your electronic system.  Check your protective devices periodically to ensure they’re in working order.

General Tips:

• Pay attention to equipment that allows easy access to second-floor windows or balconies.  If you're remodeling or painting the exterior of your home, put ladders away at the end of each day.
• Make it difficult for an intruder to hide; trim bushes and trees to allow maximum exposure of windows and doorways.
• Motion-detection lights on all sides of the house make your home less inviting to burglars.
• Don't hide your house key outside.  If a family member habitually loses or forgets his or her key, consider giving a set of keys to a trustworthy neighbor, or hanging the key on a long chain that a child can wear around the neck.
• Lower the ring volume of your telephone so someone can’t hear it outside your house.  (An unanswered phone may indicate that no one's home.)
• Don't enter if it appears someone has burglarized your home; call the police from a cell phone or neighbor's house.

Content provided by Better Homes and Gardens from the HomeAdvisor.msn.com website

This report courtesy of

Chris & Debi Styner at Century 21 Wright

800-763-7154

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