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| Buyer/Seller Tips | Buying
How to Choose a Neighborhood for Your Home Search
Narrow your home search by identifying neighborhoods that are right
for you. This helps keep your search focused and efficient. WE can offer neighborhood information to guide you in your search.
When evaluating a neighborhood you should investigate local
conditions. Depending on your own particular needs and tastes, some of
the following factors may be more important considerations than others:
- quality of schools
- property values
- traffic
- crime rate
- future construction
- proximity to schools, employment, hospitals, shops, public
transportation, prisons, freeways, airports, beaches, parks, stadiums
and cultural centers such as museums and theaters
Neighborhood Search Strategies for Limited Budgets
If you’re a first time-buyer with limited financial resources, it's
wise to buy a home that meets your primary needs in the best
neighborhood that fits within your price range. You can maximize your
home purchase location by incorporating some of the following
strategies into your neighborhood search:
- Upcoming neighborhoods: Look for communities that
are likely to become "hot neighborhoods" in the coming years. They can
often be discovered on the periphery of the most continuously desirable
areas.
Check for planned future development such as additional transit; new
community services such as pools and theatres; and chain stores
planning to move in.
Look for a home in a good neighborhood that is a bit farther out of the
city. If commuting is a concern, purchase a home that is close to
public transportation. - Neighborhood demand: Look at the neighborhood
demand by asking your real estate agent whether multiple offers are
being made, whether the gap between the list price and sale price is
decreasing and whether there is active community involvement. You can
also drive around neighborhoods and see how many "sale pending" and
"sold" signs there are in a particular area.
- Co-ownership: Look into purchasing a condominium
or co-op, rather than a house, in a desirable neighborhood. This way
you still may be able to purchase in a prime area that you otherwise
could not afford.
How to Choose a Home
Here are some tips to help determine which house is best for you.
Once you've settled on a couple of preferred neighborhoods for your
home search, it's time to pick out a few homes to view. Having a house
features “wish list” keeps you focused on which features are most
important to you.
When narrowing down your home search, consider the following:
- know what types of home you want to buy
- determine what age and condition of the house you want to buy
- consider resale potential
- use a features wish list to keep focused
- use a home search comparison chart to keep organized
- act decisively when you find the right home
Determine What Type of Home You Want to Buy
There are several forms of home ownership: single-family homes, multiple-family homes, condominiums and co-ops.
Single-family homes: One home per lot.
Multiple-family homes: Some buyers, particularly
first-timers, start with multiple-family dwellings, so they'll have
rental income to help with their costs. Many mortgage plans, including
VA and FHA loans, can be used for buildings with up to four units, if
the buyer intends to occupy one of them.
Condominiums: With a condo, you own "from the
plaster in." You also own a certain percentage of the "common elements"
- staircases, sidewalks, roofs, etc. Monthly charges pay your share of
taxes and insurance on those elements, as well as repairs and
maintenance. A homeowner’s association administers the development.
Decide What Age and Condition of Home You Want to Purchase
Weigh your needs, budget and personal tastes in deciding whether you
want to buy a newly constructed home, an older home or a "fixer-upper"
that requires some work.
Consider Resale Potential
As you look at homes, you may want to keep in mind these resale considerations.
- One-bedroom condos are more difficult to resell than two-bedroom condos.
- Two-bedroom/one-bath single houses generally have less appeal
than houses with three or more bedrooms, and therefore have less
appreciation potential.
- Homes with "curb appeal," i.e., well-maintained, attractive
and with a charming appearance from the street, are the easiest to
resell.
- The most expensive houses on the street, or ones with
anything unusual or unique are not suited for resale. The best
investment potential is traditionally found in a less expensive, more
moderately sized home.
Use a Features Wish List to Keep Your Search Focused
Make a features wish list to clarify which features are most and
least important to you when looking for a home. Using this features
wish list will keep your house hunt focused and effective.
Use a Home Comparison Chart to Keep Your Observations Organized
While house hunting, it's a good idea to make notes about what you
see because viewing several houses at a time can be confusing. Use a
home comparison chart to help you keep track of your search, organize
your thoughts and record your impressions.
Act Decisively When You Find the Right Home
Before you begin the home buying process, resolve to act promptly
when you do find the right house. Every REALTOR® has stories to tell
about a couple who looked far and wide for their dream home, finally
found it, and then said, "We always promised my Dad we'd sleep on it,
so we'll make an offer tomorrow." Many times the story had a sad ending
- someone else came in that evening with an offer that was accepted.
Resolve that you will act decisively when you find the house that’s
clearly right for you. This is particularly important after a long
search or if the house is newly listed and/or underpriced.
Take Charge When Buying a Home
If you approach the home buying process intelligently and with
confidence, you are much more likely to buy a house you'll be proud to
call home.
Approaching the task of buying a home can be overwhelming; there's so much to consider:
- How much house can I afford?
- How can I find the best loan?
- Where will I come up with a down payment, and how much will I need?
- Should I buy a new or resale home, and which will go up in value?
- Should I work with an agent or look at homes on my own?
And these questions are just the beginning. Buying a home is one of
the largest financial transactions in your lifetime - do your research
so you know what you’re doing.
Here are the two most important things to remember no matter where you are on the road to home ownership:
1. You can and should understand everything that is happening in the home buying process.
There is nothing that is so complex that it can't be easily
explained to anyone with average intelligence. Just because you don't
apply for a thirty year mortgage once a week doesn't mean you have to
take the first one that comes along. You'll need to learn some new
terms, apply some new concepts and take the time to understand what
you're getting into.
If, at any point, something happens that doesn't make sense to you,
simply demand a full and complete explanation. If it still doesn't make
sense, seek help from someone you trust like your CPA, your banker or
maybe an online real estate columnist.
2. In the world of real estate sales, YOU are the most important person in the entire process.
It's easy to think that everyone else carries more weight than you.
The agent talks fast and has an answer for everything. The lender may
decline your loan application, and on and on.
But the truth is that you, the buyer, are the one person in the
transaction that makes it all happen. If you decide to not buy, the
entire process comes to a grinding halt.
So flex your consumer muscle and take command of this process.
Surround yourself with a team of professionals that you have confidence
in and make them work for you.
Approach home buying with intelligence and confidence, and by doing
your homework, and you are more likely to buy a house you’re happy with
and to know that you made the right decision.
The Basics of Making an Offer
A written proposal is the foundation of a real estate transaction.
Oral promises are not legally enforceable when it comes to the sale of
real estate. Therefore, you need to enter into a written contract,
which starts with your written proposal. This proposal not only
specifies price, but also all the terms and conditions of the purchase.
For example, if the seller offered to help with $2,000 toward your
closing costs, make sure that's included in your written offer and in
the final completed contract, or you won't have grounds for collecting
it later.
WE have standard purchase agreements and will help
you put together a written, legally binding offer that reflects the
price as well as terms and conditions that are right for you. Your
REALTOR® will guide you through the offer, counteroffer,
negotiating and closing processes. In many states certain disclosure
laws must be complied with by the seller, and the WE will ensure that this takes place.
If you are not working with a real estate agent, keep in mind that
you must draw up a purchase offer or contract that conforms to state
and local laws and that incorporates all of the key items. State laws
vary, and certain provisions may be required in your area.
After the offer is drawn up and signed, it is usually presented to
the seller by your real estate agent, by the seller's real estate
agent, if that's a different agent, or often by the two together. In a
few areas, sales contracts are drawn up by the parties' lawyers.
What is in an Offer?
The purchase offer you submit, if accepted as it stands, will become
a binding sales contract (known in some areas as a purchase agreement,
earnest money agreement or deposit receipt). So it's important that the
purchase offer contains all the items that will serve as a "blueprint
for the final sale." The purchase offer includes items such as:
- address and the legal description of the property
- sale price
- terms: for example, all cash or subject to you obtaining a mortgage for a given amount
- seller's promise to provide clear title (ownership)
- target date for closing (the actual sale)
- amount of earnest money deposit accompanying the offer,
whether it's a check, cash or promissory note, and how it's to be
returned to you if the offer is rejected - or kept as damages if you
later back out for no good reason
- method by which real estate taxes, rents, fuel, water bills
and utilities payments are to be adjusted (prorated) between buyer and
seller
- provisions about who will pay for title insurance, survey, termite inspections, etc.
- type of deed to be given
- other requirements specific to your state, which might include
a chance for an attorney to review the contract, disclosure of specific
environmental hazards or other state-specific clauses
- a provision that the buyer may make a last-minute walkthrough inspection of the property just before the closing
- a time limit (preferably short) after which the offer will expire
- contingencies, which are an extremely important matter and that are discussed in detail below
Contingencies - “Subject to” Clauses
If your offer says "this offer is contingent upon (or subject to) a
certain event," you're saying that you will only go through with the
purchase if that event occurs. Here are two common contingencies
contained in a purchase offer:
- The buyer obtaining specific financing from a lending institution: If the loan can't be found, the buyer won't be bound by the contract.
- A satisfactory report by a home inspector:
for example, "within 10 days after acceptance of the offer." The seller
must wait 10 days to see if the inspector submits a report that
satisfies the buyer. If not, the contract would become void. Again,
make sure that all the details are explicitly stated in the written
contract.
Negotiating Tips
You're in a strong bargaining position, that is, you look particularly welcome to a seller, if:
- you're an all-cash buyer
- you're already have a pre-approved mortgage and you don't have a present house that has to be sold before you can afford to buy
- you’re able to close and take possession at a time that is especially convenient for the seller
In these circumstances, you may be able to negotiate some discount from the listed price.
On the other hand, in a "hot" seller's market, if the perfect house
comes on the market, you may want to offer the list price (or more) to
beat out other early offers.
It's very helpful to find out why the house is being sold and
whether the seller is under pressure. Keep the following considerations
in mind:
- every month a vacant house remains unsold represents considerable extra expense for the seller
- if the sellers are divorcing, they may want to sell quickly
- estate sales often yield a bargain in return for a prompt deal
Earnest Money
This is a deposit that you give when making an offer on a house. A
seller is understandably suspicious of a written offer that is not
accompanied by a cash deposit to show "good faith." A real estate agent
or an attorney usually holds the deposit, the amount of which varies
from community to community. This will become part of your down
payment.
Buyers: the Seller's Response to Your Offer
You will have a binding contract if the seller, upon receiving your
written offer, signs an acceptance just as it stands, unconditionally.
The offer becomes a firm contract as soon as you are notified of
acceptance. If the offer is rejected, that's that - the sellers could
not later change their minds and hold you to it.
If the seller likes everything except the sale price, or the
proposed closing date, or the basement pool table you want left with
the property, you may receive a written counteroffer
including the changes the seller prefers. You are then free to accept
it, reject it or even make your own counteroffer. For example, "We
accept the counteroffer with the higher price, except that we still
insist on having the pool table."
Each time either party makes any change in the terms, the other side
is free to accept, reject or counter again. The document becomes a
binding contract only when one party finally signs an unconditional
acceptance of the other side's proposal.
Buyers: Withdrawing an Offer
Can you take back an offer? In most cases the answer is yes, right
up until the moment it is accepted, or even in some cases, if you
haven't yet been notified of acceptance. If you do want to revoke your
offer, be sure to do so only after consulting a lawyer who is
experienced in real estate matters. You don't want to lose your earnest
money deposit or find yourself being sued for damages the seller may
have suffered by relying on your actions.
Sellers: Calculating Your Net Proceeds
When an offer comes in, you can accept it exactly as it stands,
refuse it (seldom a useful response) or make a counteroffer to the
buyers with the changes you want. In evaluating a purchase offer, you
should estimate the amount of cash you'll walk away with when the
transaction is complete. For example, when you're presented with two
offers at the same time, you may discover you're better off accepting
the one with the lower sale price if the other asks you to pay points
to the buyer's lending institution.
Once you have a specific proposal before you, calculating net
proceeds becomes simple. From the proposed purchase price you can
subtract the following costs:
- payoff amount on present mortgage
- any other liens (equity loan, judgments)
- broker's commission
- legal costs of selling (attorney, escrow agent)
- transfer taxes
- unpaid property taxes and water and other utility bills
- if required by the contract: cost of survey, termite inspection, buyer's closing costs, repairs, etc.
Your present mortgage lender may maintain an escrow account into
which you deposit money to be used for property tax bills and
homeowner's insurance. In that case, remember that you will receive a
refund of money left in that account, which will add to your proceeds.
Sellers: Counteroffers
When you receive a purchase offer from a would-be buyer, remember
that unless you accept it exactly as it stands, unconditionally, the
buyer is free to walk away. Any change you make in a counteroffer puts
you at risk of losing that chance to sell.
Who pays for what items is often determined by local custom. You
can, however, negotiate with the buyer any agreement you want about who
pays for the following costs:
- termite inspection
- survey
- buyer's closing costs
- points paid to the buyer's lender
- buyer's broker fees
- repairs required by the lender
- home protection policy
You may feel some of these costs are none of your business, but many
buyers - particularly first-timer buyers - are short of cash. Helping
them may be the best way to get your home sold.
How many homes should I look at before I make an offer?
You
may find your dream home on your first visit or your fifth, there's
really no set number. The more homes you visit the better feel for the
community and the homes styles you will get. You'll know when the time
is right - there's always that special feeling you get when you set
foot in YOUR next home.
Should I Hire a Professional Home Inspector or Structural Engineer?
An
inspection is almost a "must" if you are purchasing an older home, even
if you are buying in "as is" condition. A good inspector will be able
to tell you the age of the home and also be able to tell you what
different aspects of the home might need replacing in the next few
years, such as the roof, appliances, or other mechanical systems.
What is an Adjustable-rate mortgage (ARM)?
This
is a type of loan in which the rate changes anywhere from once in six
months to once in five years to reflect interest rate changes. To sell
an ARM, a lender will offer a lower initial rate than on a fixed loan.
What is Private Mortgage Insurance (PMI)?
Lenders
usually will require you to obtain private mortgage insurance if your
down payment is less than 20 percent of the property's cost, which
protects your lender if you default on the loan. The cost varies
depending on the loan amount and the loan to value. Make sure that you
can cancel the private mortgage insurance policy when you've paid your
loan to less than 80 percent of your home's value. Important Facts For Home Buyers
If
you are considering buying a home or have spent many years saving in
preparation of buying a home, the questions and process involved in
buying a home can be extremely stressful. As exciting as it is to begin
looking for your new home, there are many unexpected costs and details
to be considered before contacting a real estate agent. Home buyers
should be aware of every aspect involved in purchasing a home before
they take that big step towards home ownership.
You will
want to get the most value possible for your money. You should be aware
of every detail in regard to the home you wish to purchase. Home
inspections can reveal many hidden flaws and problems that could cost
you thousands of dollars in repairs. Be aware of your right to a home
inspection and contact a professional, licensed home inspector.
Compare
the mortgage terms and interest rates offered by various mortgage
lenders. Even a slight difference in your interest rate can add up to
thousands of dollars over the length of your mortgage. A pre-approval
from the lender of your choice will not only give you added confidence
when shopping for a new home, but could give you added leverage when
bargaining with the seller. A pre-approval will let you know the exact
amount you are approved for and will save you time after your offer has
been accepted by the seller.
Using a buyer agent is an
excellent way to help protect your interests when shopping for a home.
A buyer agent will be responsible for helping you get the best deal
possible on your new home. While shopping for a home, be aware that
certain features can adversely affect the resale value of the home.
Detached garages and swimming pools can actually lessen the value of
the property. Protect your investment by educating yourself on the home
buying process and the way property is appraised.
You can
make the home buying process fast and painless if you take some
precautions along the way. Choose your lender carefully. Interest rates
and closing costs vary from lender to lender and the difference could
mean thousands of dollars over time. There are numerous flexible loan
programs available. Finding the loan that will best suit your long term
needs will be of great value to you when it is time to sell the home.
Just a half point difference in your interest rate will translate into
a lot of money over the years.
Keep in mind that there are
additional costs involved in purchasing a home. Homeowners association
fees, furniture, annual heating and cooling costs, and homeowners
insurance need to be considered when planning to purchase a new home.
Buying a new home does not have to be stressful and frustrating. Make
sure you know the facts and your home buying experience will be quick
and painless.
If you have any questions about this article or anything regarding buying or selling your home just Call me 7 days a week at 720-232-3219.
So You're Ready to Buy Your First Home…Check This Out to Make Sure!
Buying
your first home can be a roller coaster ride for your emotions. Between
finding the right place, securing the loan and finally moving in, many
first home buyers make numerous mistakes that are frustrating, painful,
and often end up costing money. For most of us, the first time home
purchase is the largest investment we've ever considered. The emotions
of purchasing something so expensive and personal can often cloud our
business judgment.
More home purchasers than you'd think
do little or no research before they invest their nest egg. Wouldn't
you prefer to be as completely informed as possible before you buy your
first home? This article will help you avoid 10 common and critical
mistakes many new home buyers make. Additionally, don't forget that the
right real estate professional can help you make good sound business
decisions based on your personal situation.
- Inspect, Inspect and Inspect
- Go over the inspection report with a fine tooth comb. Make sure the
report was done by a professional organization. For condo purchases go
over the CC&R's, By-Laws, and Association Fees. Don't take anything
for granted... inspect everything! If you have a question about any
part of your inspection, ask a professional and certainly get a second
opinion on anything that seems atypical.
- Imagine the Property Vacant
- This is difficult for many home owners especially if the location you
are looking at is decorated in a different style or if the walls are
painted a strange color. Don't be swayed by beautiful furniture; it
leaves with the owner! Remember that it is your furnishings and
decorations will be the ones filling this new residence.
- Income Lifestyle = Mortgage Payment
- Sit down with your professional real estate agent and honestly
discuss your income level and living expenses. Planning ahead or at
least contemplating future considerations such as children, add-ons,
amenities, and fix-ups will help your professional understand your
needs. Be realistic about what you can afford. While your dream home is
certainly worth a sacrifice you don't want to give up your entire
future.
- View Several Homes - See at
least 7-10 properties. Don't move too slow but don't move on the first
property you see. With your agent's help you should be able to view
enough properties to get a good overall perspective of the home market.
When you find the right property all the leg work will be worth it.
Don't jump into a contract if you aren't sure about the home -
properties can't be returned to a store!
- Utilize Your Group of Professionals
- By aligning yourself with the right real estate professional you will
have an entire team at your disposal. Utilize your lender, title rep
and agent. Each of them should work hand in hand for your benefit.
Explore all the options before you sign.
- Ask a Million Questions
- Well not literally but make sure to check out all costs and expenses
before you sign. Utilities, taxes, insurance, maintenance and home
owner dues if applicable. Make sure all utilities (gas, electricity,
and water) are on during your walk-through so you can inspect
everything in working order (turn on faucets, flush toilets, etc). Be
aware of little details and ask lots of questions - even those you may
think are obvious.
- Do a Final Walk-Through
- Visit the property after all furnishings have been moved out to be
sure there are no surprises. Be absolutely positive the property was
left exactly as you had agreed upon in the contract. Things that could
have been spotted in a final walk-through are often unintentionally
overlooked.
- Be Ready to be Flexible -
Closing dates are not written in stone. Allow for contingencies and
have a back-up plan. If you or the sellers need a little more time to
conclude the final arrangements, don't let these delays upset or
frustrate you. Know what your contract says about the people moving in
your house and your new home. Are there costs for staying extra days?
What about the moving company? These types of circumstances are not
uncommon in a real estate transaction so be ready for a change of plans
if necessary.
If It's Not In Writing, It Doesn't Exist
- All promises and discussions should be in writing. Don't make any
assumptions or believe any assurances. This relates to number 8 above
too. Just because the sellers say they will move out on a certain day
doesn't mean they will. Even the best intentions can be misinterpreted.
Have your professional keep an ongoing log in writing of all
discussions and get the seller's written approval on all agreements.
If you have any questions about this article or anything regarding buying or selling your home just Call me 7 days a week at 720-232-3219.
Tips For First Time Home Buyers
First
time home buyers face many challenges in understanding the process of
purchasing a home, obtaining a mortgage, and knowing which type of loan
will best suit their needs. Advice from well meaning loved ones can be
helpful, but buying a home is a major financial commitment and you
would be wise to educate yourself on the home buying process before
taking the first step.
When you make the decision to
purchase a home, talk with a real estate agent who can give you expert
advice and valuable information. The purpose of this initial meeting is
not to sign a representation agreement with the real estate agent, but
instead to make yourself aware of local real estate customs in your
particular area. If the agent has no time to discuss the home buying
process with you, then keep looking until you find one who will. A good
real estate agent will offer you information on the local real estate
market and give you an idea of the types of mortgage products that are
available to you. A mortgage broker or lender can also give you
valuable information when you decide to buy a home.
The
questions you should ask the real estate agent or mortgage broker
include how to make an offer on a home you wish to purchase and the
specifics involved in between making your initial offer and the final
acceptance of the offer from the seller. Ask about the settlement
costs, the down payment amount that you may need, and the length of
time involved between the acceptance of your offer and the final
closing date.
Make sure you understand your credit
situation and what it means to you as far as applying for a mortgage.
Down payment requirements and the interest rate you will receive are
directly related to your credit score. You should be aware of exactly
what is on your credit report before beginning the home buying process.
These tips will give you a good start in making wise decisions when
you purchase your first home. Keep in mind that buying a home can be
stressful at times and that a calm attitude and the ability to cope
with any issues that may arise calmly will make the purchase of your
first home a more pleasant experience. Buying your first home is one of
the most exciting events in your life. Give yourself the information
you need and take the advice of experts when you begin the home buying
process. The experience will be less stressful and you will benefit
from the knowledge you have gained.
If you have any questions about this article or anything regarding buying or selling your home just Call me 7 days a week at 720-232-3219.
8 Tips to Guide for Your Home Search
1. Research before you look. Decide what
features you most want to have in a home, what neighborhoods you prefer, and how
much you’d be willing to spend each month for
housing.
2. Be realistic. It’s
OK to be picky, but don’t be unrealistic with your expectations. There’s no such
thing as a perfect home. Use your list of priorities as a guide to evaluate each
property.
3. Get your finances in
order. Review your credit report and be sure you have
enough money to cover your down payment and closing costs. Then, talk to a
lender and get prequalified for a mortgage. This will save you the heartache
later of falling in love with a house you can’t
afford.
4. Don’t ask too many people for
opinions. It will drive you crazy. Select one or two
people to turn to if you feel you need a second opinion, but be ready to make
the final decision on your own.
5. Decide your
moving timeline. When is your lease up? Are you allowed to
sublet? How tight is the rental market in your area? All of these factors will
help you determine when you should move.
6. Think
long term. Are you looking for a starter house with plans
to move up in a few years, or do you hope to stay in this home for a longer
period? This decision may dictate what type of home you’ll buy as well as the
type of mortgage terms that will best suit you.
7.
Insist on a home inspection. If possible, get a warranty
from the seller to cover defects for one year.
8.
Get help from a REALTOR®. Hire a real estate professional
who specializes in buyer representation. Unlike a listing agent, whose first
duty is to the seller, a buyer’s representative is working only for you. Buyer’s
reps are usually paid out of the seller’s commission payment.
Selling
How do I determine a price for my house?
You
need to research and find out what other houses have sold for in your
area and what your competition has their houses listed for in your
area. Armed with this knowledge you can then come up with a realistic
price for your house. Realistic is the keyword. If your house is
overpriced it just won't sell and you'll get very frustrated. Your
Realtor can supply the sold and for sale information to you and help
you to come up with a realistic price.
How long will it take to sell my house?
There
are many things that determine how quickly a house sells including
price, terms, condition and location as well as the general market
conditions for the area. Most houses will sell in 30 to 180 days but
check with your Realtor, they have access to the market statistics and
will be able to tell you what the average days on the market are for
your specific area.
What makes a house sell?
There
are many things that affect the sale of your house but the primary
considerations are: price, terms, condition, location, and exposure.
You can't always control all of these so sometimes you have to
overcompensate in one area to make up for a disadvantage you face in
another area.
When is the best time to sell my house?
Anytime!
If you need to move for whatever reason it's time to sell. In some
areas of the country late spring and early fall may be preferable
because houses show better at that time but you will also have the most
competition since many others will be taking advantage of those prime
times as well. The most important thing is to make sure you leave
yourself enough time to sell. If you're rushed it will probably cost
you some money as you'll be tempted to reduce the price to get a quick
sale. Give yourself three to six months to sell. In most markets this
should be adequate but market conditions change so be sure and check
with your Realtor to get the most up to date market conditions. Eleven Costly Mistakes to Avoid When Selling Your Home
Selling
your home can be an exhausting experience, but it is imperative to be
aware of the mistakes a seller can make that could cost them thousands.
Last minute walk-throughs, inconvenient calls, price adjustments and
the possibility of being stuck with two mortgages are indeed real
concerns. If you are not completely prepared you could end up losing
hundreds, even thousands, of dollars in profit.
A fine line
is all that separates a profitable smooth transaction and a break even,
miserable experience. In the majority of cases it all comes down to the
subtle knowledge of your real estate agent. By utilizing the knowledge
of a well-trained real estate investor, the sale of your home will be
quick and profitable. Familiarize yourself with these common costly
mistakes and you'll be ensured a rewarding home-selling experience.
- Refusing to Make Profit Inducing Repairs
It always costs you more money to sell 'as is' than to make repairs
that will increase the value of your home. Minor improvements can yield
larger results than most sellers think. Consult your real estate agent
to find out what improvements will increase the selling value of your
home.
- Provide Easy Access for Showings
Accessibility
is a major key to profitability. A lock box makes your home the most
accessible, while appointments-only makes your home the least
available. Remember that the more people that you show your home to,
the more likely you are to find someone willing to pay your asking
price. You never know if the one that couldn't get a viewing was the
one that got away. If your lifestyle keeps you away from home with work
or travel, developing a trusting relationship with an agent will allow
he or she to show your home with your best interests in mind. - Priced Too Low/Priced Too High
If the property is priced too high it will sit and this could not only
ruin your plans but mark it as a "problem property". If it's priced too
low it could cost you considerable profits. The real estate market has
subtle nuances and market changes that should be re-evaluated by your
agent every 10-14 days to help you maximize your return. - Relying Solely on Traditional Methods To Sell Your Home
A sign in the front yard is certainly not enough. Having a real estate
professional who is innovative and willing to offer new strategies of
attracting home buyers is often the key. Demand around the clock
advertising exposure, innovative lead generation methods and lead
accountability. These services exist and should be offered to help you
sell your home quickly for a good profit. - Market Timing/Seasonal Selling
Just as a broker who continually follows the trends of a stock, your
real estate professional continually follows trends of your home
market. They will know if the market cycle is poised to net you the
most money. Avoid believing that property sales are seasonal...
property is always selling. - Refusing to Make Cosmetic Changes
The prospective home buyer's first impression is the most important.
Many buyers walk away from a perfectly good home due to unkempt lawns,
cluttered rooms, bad stains, or unpleasant odors. Imagine you were the
home buyer and clean your place from top to bottom... military style.
Think of packing up books, movies, kids toys or other clutter to make
rooms more spacious. - Wasting Time With An Unqualified Prospect
Your representative's responsibility is to screen a prospect's
qualifications before valuable time is lost. Be sure to align yourself
with the right professional and eliminate negotiating with unqualified
prospects. - Don't Test The Market
Never put your property on line to sell unless you are serious. The
right professional will find you buyers and if you are harboring
indecision... you will blow the sale. - Believing You are Powerless to Make a Difference
Be a part of the team! Take an active role with your real estate agent
to see what you can do to facilitate your sale. Networking with
professional peers and personal friends often results in the sale of a
home. It's surprising how many homes are sold this way.
- Not Considering Other Financing Terms
Cash is not always the most advantageous transaction. Income level, tax
benefits and current legislation are all critical factors when
considering purchase terms. Professional Real Estate Investors are
experts at home transactions and can lead you down the path that will
give you the highest yield. - Believing All Realtors, Brokers & Others are the Same
With all the intricate details and critical decisions to be made
concerning your home sale, why should you rely on anyone but an
experienced real estate investment professional? Your home sale is a
time consuming, difficult task. Maximize your profit by utilizing a
experienced real estate agent and don't listen to friends or family
members who had agents that did not meet their expectations. In fact,
meet several agents if necessary to find the one that is just right for
your needs - in the end, it will be worth the effort.
If you have any questions about this article or anything regarding buying or selling your home just Call me 7 days a week at 720-232-3219.
Renovations, Repairs, and Improvements - Suggestions Before you Sell
When a homeowner decides to sell their home, they must decide what
renovations, repairs or improvements should be done to fix their
property. Often homeowners fall into two extreme groups: those wanting
to do nothing or those wanting to fix everything. Usually, neither of
these extremes is the right choice.
The first step for most homeowners is to decide whether they want to
sell in "mint" or "as is" condition. "Mint" condition means near
"move-in" condition. Usually this includes neutral colored paint and
carpet, no wallpaper, and electricity, plumbing, and fixtures that have
been updated or replaced. The entire home should be fresh, clean, and
immaculate. "As is" condition can be anything from dirty, to broken
down and in need of repairs, to outdated carpet, paint, or fixtures.
The truth is that homes that are in mint condition will sell for
more money than homes that need to be fixed up. The reason for this is
fairly simple - most buyers don't have the time or energy to do the
work. They also might not have the money to finance a major renovation
or perhaps they simply don't want to do it. This is not to say that you
need to renovate everything possible to reap the most benefit out of
the sale of your home. Instead, you simply need to clear away the
clutter, look at the bare bones of your home, and do what is possible
and necessary before you sell your home.
Choosing Your Renovations and Repairs Wisely
Before you run out and start pricing new carpet and bathtubs, look
at what renovations are wise when preparing to sell your home. Many
renovations may not return 100 percent of your investment, so deciding
which repairs to do can be difficult. Exterior repairs you might want
to consider are things such as repainting the exterior, repairing
broken steps, replacing broken windows, fixing the roof, or replacing
gutters. Interior renovations to be considered could include cosmetic
changes (like replacing carpeting or repainting), household repairs
(fixing hinges or tightening doorknobs), or replacing old or broken
appliances. Things you shouldn't try to fix are gutting a bathroom or
remodeling your kitchen. These things can not only be costly but may
take months and you certainly won't have the chance to enjoy using the
new amenities. Rather than big, costly projects focus on changes that
cost relatively little yet dramatically increase the value of your home.
Look at the Walls and Carpets
What color are my walls and carpet? Are there signs of leaks or
wear and tear? Some of the best money you can spend can be by painting
the walls, taking down colorful wallpaper, or replacing worn carpet.
When it comes to colors, stay neutral (whites, creams, eggshells, and
light grays).
Check to Make Sure Everything Works
Does every light turn on? Does every electrical outlet work? Do any
of the toilets run or do the sinks leak? Make sure to test, the
disposal, air-conditioning, heat, ceiling fans, and every appliance.
Potential buyers love to turn on the lights including closets and
hallways so make sure every light has a bulb that works.
How About the Kitchen and Bathrooms?
Are the kitchen cabinets updated? Does the refrigerator and
dishwasher work? How are the floors in both the kitchen and bathrooms?
Is the grout in good shape? Do the tub and shower drain properly? Do
the tiles need repair? There is plenty that you can do to brighten up
these spaces without spending too much money. Perhaps paint your
cabinets or add new, shiny hardware. Regrouting the shower and putting
a new glaze on the tub can do wonders for the bathroom. If the floors
have seen better days, think about replacing them with fresh tile or
linoleum.
Finally, Glance at Your Curtains and Window Treatments
Do the mini-blinds work? Are they clean? Are the window treatments
outdated? As long as you are neutralizing your home, consider getting
rid of heavy, dark-colored window treatments and replacing them with
inexpensive mini-blinds. Be mindful of blackout shades or shutters that
could make your home dark and dreary.
Overall, renovations, repairs, and improvements can help raise the
appeal of your home for potential buyers. Remember that each home is
different and what needs to be done will depend on what you are willing
to spend and the time you are willing to dedicate to doing the work.
Talk to your broker to find out what is normal and standard in your
area and in your price range. In the end, a little work can have a
large payoff.
If you have any questions about this article or anything regarding buying or selling your home just Call me at 720-232-3219 7 days a week. Curb Appeal - Attracting Buyers from the Street
Curb appeal is the term that brokers use to describe how a home
looks from the street or curb in front of the home. The term mostly
applies to single-family homes rather than townhouses or condos since
most condo associations care for surrounding exterior and common areas
of the condos. The street presence and curb appeal of your home is
extremely important since it must impress prospective buyers. If a
buyer likes what he or she sees from their car or from the sidewalk,
they will be more likely to go up and take a closer look or perhaps
even take a walk through your home.
Don't Take Your Curb Appeal For Granted
If you've lived in your home for a number of years, you may need to
take a step back from the stoop to realize that you might be taking
your home's curb appeal for granted. Taking a look at your home as an
objective buyer rather than as the owner will allow you to see the
cracks in the foundation, the peeling paint on the side of the house,
or the missing roof tiles. If you have failed to account for these
mishaps in your listing price, you might realize why your home is not
selling while others on the block are.
Carefully reviewing the curb appeal of your home is important
because homes often take on the personalities of their owners. Whether
its that amazing flower garden, the knick-knacks on your windowsills or
the color of your walls, your personality will definitely show through
the years you've spent at your home. While distinctive personalities
are fine, you must also be aware that it can narrow the appeal of your
home. A dark colored home with bad lighting and poor ventilation can
make your home dreary, cluttered, foul-smelling, and entirely
unappealing.
Take A Step Back And Be Objective
Even if you go in and out of your house numerous times on any given
day, you should take the time to walk to the curb, look back , and take
a fresh look at your home. What do you see? The house should have a
neat and trim appearance and be warm, open, and inviting. The exterior
paint should be fresh or at least clean (consider using a power washer
for vinyl siding). If your home looks drab or dreary, consider
repainting it white-the color many brokers say sells the fastest. To
perk it up, add a brighter color to the trim and window frames.
Next, look up to the roof and the gutters. The roof should be in
good condition with no torn or missing shingles. The gutters should be
clean and the downspouts should be in good repair. If it is spring,
summer, or fall, or if you live in a warm climate, consider putting out
wicker chairs, some potted plants, or a basket of hanging flowers. Make
sure the mailbox looks clean and is in working order. The porch should
look inviting so that prospective buyers can envision themselves
relaxing there on a Saturday afternoon.
Maintain Your Curb Appeal
Finally, maintaining and enhancing the landscape of your home is
incredibly important to the curb appeal of your home. Your lawn should
be cut and manicured regularly. Bushes should be trimmed and flowers
should be planted. If you are selling during winter, remember to shovel
your walk and driveway after every snowfall so that buyers can not only
get to your home, but so that they won't slip and fall on the way.
Consider painting the fence, adding flower boxes, cleaning up that
overgrown garden. In the end, making the curb appeal of your home
better will only help it to sell faster after you decide to list it.
Just remember that cultivating a charming exterior won't sell your
home if the interior is a mess. But certainly, it should at least help
get those prospective buyers across the threshold. member: www.oflc-bc.com http://homesinsouthdenver.com
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| Greg Foster |
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| Foster & Associates |
| 9055 East Mineral Circle |
| Centennial, CO 80112 |
| Office: 303-694-1111 |
| Direct: 303-850-0238 |
| Mobile: 720-232-3219 |
| Fax: 303-740-8525 |
| Contact Greg Foster |
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