If You Were Selling Today. . .

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  If You Were Selling Today, Would You Have the Home That Buyers Want?

  Knowing what appeals to today’s homebuyers, and considering those trends when you remodel, can pay off years from now when you sell your home. Read

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Copyright 2013 NATIONAL ASSOCIATION OF REALTORS®

Happy Thanksgiving!

From my family to yours, I wish you a day of relaxation, family, friends, and of course, pumpkin pie!

For you Protection - Get an Inspection!

Reading through some real estate articles, I ran across one on home inspections.  This is a topic I cover with my buyers a lot, and one where there is often some misconception.  Feeling inspired, I sat down to write out some of my advice.  

1.  Check your inspectors credentials!  The first thing that surprised me about home inspections is that Ohio is one of the only states that doesn't have a test to call yourself a home inspector!  Technically, I could hang a sign on my door and start charging people for home inspections.  I have heard horror stories from other agents of buyers who tried to save a few bucks, hired their good old Uncle Larry to do the inspection and had a horrible experience.  

Luckily, there is an association called ASHI that helps home buyers and sellers to find a responsible home inspector.  ASHI is a professional organization for home inspectors.  They have a code of ethics and standards for inspection.  Finding an ASHI certified inspector is easy, just ask your Realtor, or check their website.

2.  Do a "pre-inspection" with a trusted friend or relative - I don't think I have had a buyer yet that hasn't had an Uncle Gary, Brother Jimmy, or my friend/relative who does construction.  My best advice to my buyers is to bring that person to your second showing!  They can often spot some concerns before you even make a purchase.  It isn't an official inspection, but it might give you some points to think about before you make an offer, or at least some talking points with your home inspector.

3.  Attend your home inspection - Obviously this is not always possible, especially if you are buying from out of state, but make all efforts to attend your home inspection.  When you get the report, there will be many terms that are unfamiliar, but when you are following your inspector around, they often will explain things in plain English.  

4.  Take notes and ask questions! - That is what your inspector is there for.  My very first home inspection I attended was with an inspector who reminded me of my Grandpa.  Not only did he complete the entire thing taking notes by hand, he treated my clients like they were his own kids.  He told them his advice for basic home maintenance, things he would change to improve airflow, etc, and pointed out all the features of their new home.  This was exactly what my first time homebuyers needed.  It was great, and gave me high expectations for future inspectors!  

5.  Understand that your seller doesn't have to fix a thing - All occupied homes are bought in used condition.  Understand when you buy your home that you are also buying any problems that home has developed over the years.  Now, this doesn't mean that if you discover a major issue with something that you don't have some bargaining room.  By all means, work with your realtor to come up with a solution.  A seller could choose to fix the problems themselves, reduce the purchase price to help cover repairs, or to do nothing.  It is up to you as a buyer what you want to do from there.  

I always advise my buyers to get an inspection and I have attended almost every one.  I learn something new every time!  One last thing that I would recommend though, speaks to sellers.  If you have concerns about your house, get an inspection before you list your house!  Sound crazy?  Better to be prepared!  If you don't know that your roof is bad, the foundation is cracked and you have an outdated electric panel, you will be in for a big shock when your buyer's home inspector finds it.  If you can fix your house ahead of time, it might be cheaper in the long run, and it won't lead to a nasty surprise after you have found the buyers and started packing your house up to move.

Get an inspection!  Happy House Hunting!  

  

  

5 Reasons to Sell Before Spring

If you have ever sold a house, or talked to anyone who was, it is common to hear people say, "Oh, we want to sell it, but we want to wait until Spring."  Makes sense, right?  There are typically more buyers looking in the Spring and the Summer, you don't have to worry about showings over the holidays or over the winter months.  It is considered prime time for real estate.  

There are many reasons though, that it might be better to list it now.  By Spring, you can be in your new home planting flowers and enjoying that beautiful new deck.

Here are five reasons not to wait!



1.  The buyers that are out are serious.  During the summer, when open houses are common, and people like to imagine moving, you get a lot of lookers.  People might even be working with an agent to find a home, but they really aren't serious about it.  In the late Fall and through the winter, the buyers that are out are serious.  They are looking to buy and usually have a compelling reason to move.  Who really wants to look at houses when it is 20 degrees out in Northeast Ohio?  Serious buyers!

2.  There is less competition.  As you are thinking "let's wait until Spring" so are other sellers.  In the market we talk about low inventory, what that means is that there are less homes on the market competing with yours.  If you wait, you could face more competition with those other Spring listers, and lose out on some of those serious buyers.

3.  The process can be quicker.  In the beginning of the year, the banks were flooded with new home sales and refinances.  Time between contract and closing could be long because of bank delays.  Right now, most of the lenders I have talked to are eager for new business.  An eager lender is one who will call the buyers back, and prioritize your sale!

4.  If you are moving up, take advantage of this time!  Prices are rising, and expected to continue to rise over the next few years.  If you are a "move up" buyer, now is the time to take advantage of the prices now before they go up.  Also, think of the sellers who are on the market (like you should be).  They are probably eager for a sale as well.  If you are looking to purchase another home after you sell yours, now is the time to buy.  With less buyers flooding the market, there is less competition for the home of your dreams!

5.  Stop putting your life on hold - When my husband and I first listed our condo, it was when the market had taken a nosedive.  We pulled it off over the holidays, and relisted later on.  The second time we listed, we decided that was it.  We didn't want to put the big changes we wanted on hold, just because a showing might be inconvenient over the holidays.  As it turned out, the way our house sold, we moved in to the house of our dreams right after Thanksgiving, and we had Christmas in our new house.  It was perfect.

I will throw in one bonus here.  You have probably heard the advice about depersonalizing your home when you are trying to sell.  This is probably good advice concerning large number of family photos, knick knacks, and other clutter.  But in the winter, it is different.  I don't know about you, but my house never looks prettier than around the holidays.  Think of how a buyer might feel walking in and seeing your perfect holiday set up.  It looks like a home, not just a house, and to some buyers, that might be all it takes.

So, just to reiterate my point, don't be afraid of selling in the winter!  If I can help you or anyone you know who might be considering it, just contact me today for a free market analysis, or advice on selling.

This post was inspired by this article from KCM -  5 Reasons to Sell Before Spring | Keeping Current Matters

You Thought Your House Was Small??

Looking for something interesting to post on a Friday, I ran across an article on "The Spite House" in Seattle.  It was part of an article from one of my favorite blogs, Hooked on Houses.   This is the picture that caught my attention

 

The picture shows the 4.5 foot wide side of the house.  I believe the pictures all originally came from this article on Seattle's Curbed blog.  You can find more photos and information in their article about how this "Spite" house came to be built on this disputed sliver of land. 

I have a problem I call falling down the rabbit hole.  Have you heard that term?  Reading that article, I ran across several links to other tiny houses, and I spent some time today reading these articles that I wanted to share!  This seems to happen a lot in blogging. 

There is this Spite House in Alexandria, Virginia. 

 
This little blue house is only 7 feet wide, 2 stories tall and 325 square feet.  The Guiness Book of World Records calls it the narrowest house in America.  There is an article on Hooked on Houses with plenty of pictures.

There is also this one in Toronto, found in this article on Hooked on Houses. 

  

And this article, showing several tiny houses in Texas that are being built from salvage material, including this one that is 12' x 20'. 

Thinking of downsizing?  These tiny houses, or Spite house just might be the way of the future! 

Happy Friday, and happy looking. 

How to Warm Up an Older House

It is the second week in November, and this afternoon I had my kids playing in the snow in the yard after school.  We still have pumpkins on the porch from Halloween.  You know you live in Northeast Ohio when. . .

So, long time, no blog updates!  The good news for me is that typically when the blogging drops off it is because business is picking up!  I have been lucky to work with a lot of buyers this fall, and they keep me on my toes.  It reminds me though of one of the reasons I love my job - I love showing houses.  It is so much fun to get to see inside so many homes in the area, and my clients have a variety of tastes, so I get to see them all.

One of my loves is older homes and I have always been drawn to them.  As you probably know though, one of the drawbacks of older homes is that they are not as energy efficient as some of the newer homes.  The good news is that with a little updating, you can have the charm of an older home with the warmth of a newer one.  According to this article I read, any home built before 1983 can have energy issues.  

Here are some tips on warming up that old house that I found in an article on the Zillow Blog - 5 Ways to Warm Up an Older House .  It seemed like a good day to post it.

5 Ways to Warm Up an Older House

1.   Do an energy audit. - If you haven't heard of this before, it is basically a way of analyzing your home to see the places that either warm air is leaking out, or cold air is coming in.  If you live in a drafty older home, odds are you know where these spots are.  If you have the money and would like to hire a professional, someone can come to your home and do a complete audit of your house, and also suggest ways to improve it.  If you would like an easier DIY method, on a windy day, light a stick of incense and walk around to the doors and windows in your home.  If the smoke from the incense is blown in away from the windows, you have a place where cold air is entering.  If it is pulled out away towards the door or window, that is a place where your home is losing warm air.  In these places, simply adding caulk or insulation can help to improve the situation immensely.                                                
2. Check your windows and doors -  Did you know that a 1/8 inch gap between your door causes as much trouble as a 2.4 in hole in the wall?  I didn't!  Sealing gaps around windows and doors is one simple and cost effective way to warm up your home.  Add weatherstripping around loose doors and windows and consider sealing your windows with plastic sheeting in the winter.  Even adding blinds and curtains to your windows will help keep that cold air out and warm air in.                                                                                                                                  
3. Insulate - Many older homes have inadequate insulation.  Some don't have any at all!  One thing you can do is have someone come in to blow insulation into your walls.  They can add a nonflammable foam resin in your walls between interior and exterior walls, and it can often be done in a day.  This can be a pricey solution, but very effective.                                                                                          
4. Install a programmable thermostat - A programmable thermostat can make the best use of your heat by being set to keep the house toasty when you are home, and cooler when the house is empty.  There are even some that learn your preferences and adjust accordingly.  Have you heard of the Nest thermostat?  I am dying to get one.  It learns your schedule within days, and can be programmed on the go from your smartphone so that your house is ready if you are coming home early.  Technology that works for you!                                                                                                                                                                                                                                                                                       
5. Consider alternate heat sources - One thing to consider is radiant heat.  Radiant heat is being installed in newer homes, but can also be fitted to older homes.  Keeping your floors warm helps to keep your whole house warm, and also you never have to worry about cold floors in the morning!  It is energy efficient and warms up the actual structure of your home - not just the air.  Other options are space heaters or pellet stoves.  All of these choices are ones I found articles on by Bob Vila and linked here!   I know that many people trust Bob!       

On a day like today, I'm looking around my own home and thinking that an energy audit is in order!  We live in a home that is just older than me, and it does have some areas we could improve.  Stay tuned for more articles coming up, and maybe even a peek into my home and my part of Northeast Ohio!  

Stay warm!

Market Update: New Homes and Pending Sales

In July, mortgage interest rates increased, causing many home buyers to shy away and home sales to be down from the expected.  In August, it seemed like more home buyers were willing to overlook the higher rates, and the sales were back up.

New home sales rose 7.9 percent in August, following the 14.1 percent decline in July.   Why the change?  According to Rick Judson, chairman of the National Association of Home Builders, it is a sign that the higher interest rates didn't put a long term damper on home sales.

"Consumers are adjusting to the reality of today's higher rates following a period of record-setting lows, and today's sales report provides evidence of that," Judson says. "We expect to see more buyers coming back to the market as the psychological effects of the rate gains continue to wear off — particularly since, even after the recent spike, mortgage rates remain exceptionally favorable on a historic basis."  

Pending sales are down, but that doesn't seem to be that unusual.  Home sales spiked in the Spring with the historically low interest rates.  That naturally slowed down as interest rates started to creep back up.  Considering that the Spring showed sales at a six and a half year peak, news is still good in the housing industry.  Moving forward, it is expected that existing home sales are going to decrease, but tight housing inventory in many markets will cause prices to rise.

My source:
New-Home Sales Up, Pending Sales Lag

Money Monday: The price of a bagel

You see these kinds of comparisons all the time.  Skip your daily latte and retire early.  Pack your lunch and save your family thousands a year.  Budgeting and keeping yourself from splurging are great ways to find money within your own family that might be spent on other things.

A few days ago, I spotted this infographic on a blog I follow from a site Keeping Current Matters.  As a coffee lover, I got exactly where they were going with this.  I especially like the houses on top of her head.

This infographic is a little bit deceiving.  Now, I know there are people out there who hit Starbucks every day, and if you are one of them, you are likely spending at least $5/day on coffee or coffee and a bagel.  I would say for most of us, Starbucks is an occasional splurge, but are there other things that you buy that could be cut out?  This infographic uses $5/day, so figure about $150 a month.  Use coupons, cut monthly bills, do less online shopping, etc.  In reality, if you plan to stay in your house for the life of your loan, or if you plan to be there 10, 15, 20 years, you can shave years off your loan, and thousands of dollars off the amount you need to repay when you do sell your home.

Talk to your mortgage lender if you have questions, and see what your savings could be, or if this is a good move for you.  Maybe you could discuss it over a Pumpkin Spice Latte.

NAR's Projections through 2014

The National Association of Realtors came out with their Projections through 2014, and my friends over at the KCM blog put it into a nice infographic.   In the interest of keeping you up to date, I am sharing it here.  Sales up, prices up.  Good news for sellers, and good news that buyers are willing to accept these higher prices in the pursuit of home ownership.  Can I help you find your dream home?  Contact me today!  

From Keeping Current Matters:  NAR's Projections through 2014 [INFOGRAPHIC]

Can Credit Affect your Home Insurance Costs?

You probably know that your credit scores have a huge impact on your ability to get a home loan, and you may also know that your credit score affects the interest rates you are eligible for on that loan.  Credit affects your interest rates on your credit cards, your ability to get a car loan or to apply for a rental application for an apartment.  But did you know it could potentially affect what you pay for your home insurance?

It is common practice for insurance companies to do a soft credit check when you apply for homeowners insurance.  What is a soft credit check?  When you apply for a home loan, a car loan, or any other process involving a lender, they run a credit check that shows up as an inquiry on your credit score.  When you have too many of these "pings" on your credit, it can negatively impact your scores.

A soft credit check only accesses your credit score and not your credit history.  These soft checks do not affect your credit.  This means that even if you talk to many insurance companies, it will not change your credit score, so feel free to shop around for home owner's insurance.

Why do they need your credit score?

When an insurance company runs your credit scores, they use it along with other factors to assess your risk potential and assign you an "insurance score".  They take your risk factor and figure out your insurance premiums from there.

Does this seem fair?  Many people don't think so.  The insurance companies claim that your credit score can have an impact on your likelihood to file a claim.  According to their research, people with lower credit scores tend to file more claims.

Fair or not, it is another good reason to keep your credit score up!

You can find the original article here:  Does Your Credit Score Affect Your Homeowners Insurance Cost? | Keeping Current Matters

10 Reasons to use a real estate agent

I am particularly fond of reason number 2.  I can protect you from predatory agents!

Courtesy of: Park City Real Estate - JensenandCompany.com

Beach Dreaming

I know I have mentioned before that one of my favorite blogs about real estate is Hooked On Houses.  I don't know about you, but after the summer of rain and chilly, and being stuck in the lovely Northeast Ohio, I have been dreaming of a beach vacation.  You need to see this transformation!  I will let you read the full article with the photos in the article below, but you have to see the before picture to truly appreciate the after!

Turning a “Shabby Shack” Into a Family Beach House

Happy Friday!

Banks May Ease Lending Standards Soon

Good news for home buyers?  Lending standards are what the bank uses to determine if you will qualify for a loan.  A few years back, what caused many of our housing issues, was loose lending standards.  I remember clearly in 2002 wondering how I qualified for my loan with the job I had, and the amount I had saved.  I wasn't alone.  Banks were giving out loans to just about anybody, and several years later, many of those people who wondered "why me?" were losing their homes to foreclosure.

So standards tightened up.  Your credit scores needed to be higher, your debt to income ratios were adjusted to show less risk, and larger downpayments were required.

Now that things are improving, but interest rates are creeping up, experts are predicting that lending standards might loosen a little to drum up more business, according to this article:

Banks May Ease Lending Standards Soon

This could be good news!  Stay tuned. . . .

Here come the Millennials

There's been a lot of talk in the news lately about the Millennials.  From my understanding, the Millennials are the generation that came after Generation X, formerly called Generation Y.  There is a lot of buzz in my industry about the Millennials and how they might impact the market.

Just to get myself started with this post, I went ahead and googled Millennials.  It turns out that I am a Gen Xer by about a year and a half.  So this young generation is. . . a lot of people I know.  Looking at my search results, recent articles written within the past day I found include the following:

When Should Millennials Finally Move out? 

Let's Give Millennials a Chance

Tips for Millennials Who Want a Mortgage

Look into the Hears of the 'We Generation': Column

I had two sales that closed for my buyers in the past week or so.  Both of these buyers were of the Millennial generation.  One single guy, one couple with a young child.  Both sales went smoothly.  Both sets of buyers were extremely easy to work with, understood and were happy to use technology, and were flexible with their wants.  They used the tools I gave them to search for homes, and ran with it.  I had compliments on both ends for working with them, and responding to their questions and needs quickly.

In short, I don't see the concerns about this Millennial generation!

Maybe, what that says though is something about me.  Both of these buyers used texting as their main form of communication with me.  Emails were responded to quickly because they were getting them on their phones.  Both used the internet to search for homes, and brought their lists to me.

Gone are the days where you need to wait for your agent to find you the house of your dreams.  Gone are the days where people can't google for information when they need it.  Gone are the buyers who don't have a GPS in their phone, or even their car, so finding homes isn't an issue.  You need an agent that realizes this.  You need an agent who is happy to return your texts at the time you need an answer.  You need an agent who is comfortable with technology, social media and isn't intimidated by a buyer that knows their stuff.

There was an article in my inbox this morning that had a very positive message for Millennials.  The message is basically this:  Now is the time.  Pricing has bottomed, the affordability index is low and jobs are coming back.  You don't want to look back a year or two from now and wish you had bought a home at this time.

Read the full article here:

A Message to Millennials for Our Future

So I say, bring on the Millenials!  Contact Me today if I can help make your dream of home ownership a reality!

Picture by my daughter Maggie, age 4.  I believe she will be Generation Z.  

Interesting Buyer Survey Results

I ran across this article today:  News Room - Trulia.com - Press Releases

Basically, Trulia surveyed just over 2000 potential homebuyers in an online survey.  It really seems to highlight some of the changes we are seeing in the market - more DEMAND, less supply, and buyers who are willing to do whatever it takes to get the house of their dreams.  You can read the full results with the link above, but here are some stats that I found interesting!

Top worries of home buyers:

• Interest rates will rise before I can buy
• Home prices will rise before I can buy
• I will not find a home for sale that I like
• I won't qualify for a mortgage
• I will have to compete with many other buyers for the home I want  

In addition to the worries, these buyers are willing to take extreme measures to get the home of their dreams.  Buyers need to beware that submitting a lowball offer might have been fine a couple of years ago, but now that the market is recovering, you might be competing with buyers that are willing to do whatever it takes.

According to the Trulia article:

Among Americans who would buy a home someday, 2 in 3 (66 percent) would use aggressive[1] tactics to buy a home, including bidding above asking, paying the seller’s closing costs, writing personal letters, or removing contingencies, to name a few. Households earning more than $100,000 a year are more likely to offer to pay the seller’s closing costs or bid above asking, whereas lower-income households making less than $50,000 a year are more likely to borrow money from family or friends to put down 20 percent or make an all-cash offer. Young adults – many of whom are likely to be first-time homebuyers – are especially aggressive in their house hunt, with 78 percent likely to do at least one of these tactics.

I think this infographic from KCM shows it perfectly.

So buyers, what do you think?  Does this seem accurate?  I know that several of my recent buyers were faced with multiple offer situations, and we did use some of these tactics.  Do you have a buyers agent that knows that today's market is different?  

Contact me if I can help, I would love to work with you to find that home of your dreams!

Buying a Home: The Pre-Approval Process

According to the National Association of Realtors, close to 90% of all buyers require a loan when they purchase their home.  If you are a first time home buyer, you might be wondering how you go about getting a loan for more money than you have ever needed before!

There are many different kinds of loan packages available to buyers right now.  Talk to a lender to find out what is best for you.  Different programs will allow you to put as little as 3% down, compared to the 20% standard people have heard.  A loan officer should be able to help you find the best plan for your circumstances.  Your credit and your income will help decide what program is best for you.

Your goal in finding a lender is to find someone who is upfront and honest who can give you the best terms.  Right now, interest rates are still pretty low, but it is good to shop around.

So you know that you need to get pre-approved.  What does it mean?  I found this quote from an article from Realtor.com that summed it up well.

"Pre-approval" means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a pre approval letter, which shows your borrowing power. You can visit as many lenders as you like and get several pre-approvals, but keep in mind that each one carries with it a new credit check, which will show up on future credit reports.

Although not a final loan commitment, the pre approval letter can be shown to listing brokers when bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. This information is important to owners since they do not want to accept an offer that is likely to fail because financing cannot be obtained.

That last point is important - this is not a final loan commitment.  There are unfortunately cases where people are pre-approved, make an offer on a house, and then can't obtain financing.  Pre-approval is a quick check, and a means of showing that you are qualified for a loan to the seller of the home that you are buying.
Typically, within a short period of time after making an offer, you will need to go and make formal loan application.  My contracts are always written with a five day window.  So having a pre-approval letter makes sense in two ways.  First, many listing agents are specifically asking for pre-approval letters with an offer.  Having your letter in hand is great for when you find that perfect house you want to write an offer on.  The other thing that helps is that you will already have had contact with a lender who has all of your information.  It is usually easy to finish the loan application process with that lender.

I hope this helps.  I work with a lot of first time buyers and I would be happy to help you wherever you are in the process!

Tips for Sellers: Maintain Your Deck for Years of Summer Fun

Summertime and the living is easy.  If you are anything like me, in the summer you like to spend time out on your deck, relaxing, using the grill, watching the wildlife in your backyard.

If you are selling your home, you want your deck to stand out.  Imagine what they buyers are thinking, can they picture relaxing on the deck, sipping on lemonade, enjoying summer breezes?  Do you have inviting It can be a major selling feature of any house.  However, if your deck is dirty, cluttered, and looks like it needs major repairs, buyers might shy away from your house.

If properly maintained, decks will return about 77 percent of their original cost, according to Remodeling magazine.  Your deck is a great investment!

The plan outlined in the article linked below details the steps to take for proper deck maintenance.  Basically, my thoughts are this.  If it is cluttered, organize it.  If it lacks color, get some plants or suncatchers.  If it is dirty, clean it!

I hope you find this article helpful, and if you are looking to sell your home, call me!  I would love to help!

   
Tips for Selling a Home: Maintain Your Deck for Years of Summer Fun - Cutler Real Estate - Cutler Real Estate News | Cutler Real Estate

Open Sunday - 829 S. Rockhill Avenue in Alliance!

Come see this house!  It is beautiful, the major work is done, and it is close to Mount Union University in Alliance Ohio.  Open House Sunday, June 28, from 1-2pm.  Sellers are motivated!  Bring us an offer!

Now is the Time to Buy!

The market is improving.  It is being proven again and again.  When the market improves it is often to the benefit of the seller.  In the past few years, we have seen what is commonly called a buyers market.  With many houses on the market buyers had a lot of bargaining power.  Sellers had to make sure their house stood out, frequently lowering the price to attract buyers in the competitive market.  Since they were also competing with many foreclosures and short sales, sellers were often getting less than what they hoped for when selling their home.

Now that inventory is lower, buyers are finding that there is less out there to choose from.  Buyers are finding themselves in multiple offer situations even when a house has been on the market for months already.  Homes are selling quickly, and at closer to asking prices.  Interest rates are predicted to go up, and if you have been thinking of buying, now is not the time to wait!

Please click the link below to read the full article, and get out there before the good ones are gone.


Buying a House? 3 Reasons to Do it Now!

Contact me today if I can help you with your home search.  I love my job, and I w

The high price of ignoring home repairs

Have you heard of the saying an ounce of prevention is worth a pound of cure? This is so true when it comes to your home! Take a look at the following infographic on some things that you just shouldn't ignore when it comes to home repair.

Courtesy of: HomeInsurance.com and Redbeacon

What are buyers looking for?

I ran across this graphic, and thought I would share.  The National Association of REALTORS does research on many aspects of home buying and selling, and this is the latest on what buyers were typically buying in 2012.

There are obviously many factors that can affect this, including of course where you live.  If you are interested in knowing what the average home sales in my area are, just ask!  It is amazing what kind of information is out there if you know where to look.  

So, can I help YOU find your perfect home?  Do you have one to sell?  I'm ready!  

Buyers: Tips for getting your offer accepted!

I have written quite a few offers lately.  The market seems to be stabilizing which means that buyers are starting to find themselves in multiple offer situations and sellers are getting more picky with what kind of offers they will accept.

Here are some tips to get your offer noticed and accepted the first time!

1.  Get pre-qualified.  It is frequently in the offer instructions, but make sure not to overlook this step.  Include a pre-qualification letter with your offer, or proof of funds if you are paying cash.  See if your lender will write you a letter that doesn't include a dollar amount.  There is no need to tell your seller that while you are offering $70,000 when you are qualified up to $100,000.

2.   Don't Lowball - It is tempting to want to throw out an offer just to see if a seller will take it, and in the buyers market we had recently been in, lowball offers were being accepted.  If you are making an offer on a property that is hot, don't lowball it.  Your first offer might be the only offer you are allowed to present.  Look at market value and make a fair offer.

3.  Consider an escalation clause - This basically is a clause you can put in your offer that says that if someone else puts in a better offer, you will increase yours.  These are supposedly becoming more popular.

4.  Add earnest money - Ask your agent what is typical in your area and add to it.  Earnest money is money put down up front at offer acceptance, but it is counted as part of your downpayment when the property closes.  A strong earnest money deposit shows that you are a serious buyer.  

5.  Keep contingencies to a minimum - The easier the transaction looks to the seller, the more appealing it is.

6.  Write a letter - You don't have to send them a novel, but a nice note about who you are, why you are moving to the area, and what you love about their house makes you a person, not just a number.

Good luck!

Source:  Make an Offer That Sellers Can't Refuse

House Hunting - Short Sales

I have been so busy lately, that I haven't had enough time to post.  That is great for business, but not great for blogging!

Several of my clients are looking at short sales and foreclosures.  In the market right now, there are a lot of them out there.  Many buyers don't know the difference between the two, and I thought it would be worth it to take the time to explain the difference.  Today let's focus on Short Sales. 

Short Sales

In a short sale, a house is typically in a preforeclosure state.  The owners have gotten behind on their mortgage, or owe more than what their house is currently worth.  The decide to work with a real estate agent to try to sell the house before it goes into foreclosure. 

These homes can be in disrepair.  Sometimes they are vacant, sometimes they are still occupied.  What the house is listed for, is going to typically be the amount owed to the bank, or a fair market value that is less than what is owed to the bank, hence a "short" sale. 

The owners of the home are still the ones to make the decisions.  They can accept or reject offers, but ultimately it is the bank that must decide if the price is going to be enough to satisfy the debt.  Because you are working with not only a seller but bank officials at each step, a short sale can be slow.  I have heard of them closing in relatively quick time frames when a home owner is already working with the bank towards a short sale, and I have heard of people waiting 15 months and still not having a short sale closed. 

If you have a timeframe in mind where you need to move, or you have a home of your own to sell before you can buy, you might want to reconsider these kinds of sales.  Also, in a short sale, the bank is the one paying commissions and fees, so typically these homes are sold in "as is" condition.  Keep in mind that a seller who can't pay their mortgage isn't going to have the cash to put a new roof on the house.

If you are interested in short sales, make sure you are working with an agent, and make sure you have patience.  A short sale is different than a regular arms length transaction.  The negotiating you are doing might be with the bank, or you might put in an offer that gets flat out rejected.  Depending on the bank who holds the mortgage, there may be different rules for offers, and different time frames for what is a normal time to respond.

Short sales can be a good deal for the buyer.  The bank often is willing to work with a reasonable offer and to forgive the debt because if they don't sell the property and it goes into foreclosure, there is often more money they would lose in that process.  Also, once a property goes into foreclosure and is sold at a Sheriff's sale, the bank frequently ends up buying the property back.  It then can sit from anywhere from 6 months to 2 years before the bank will relist the property as a foreclosure, often for less than they could have gotten from the short sale.

Not all owners will choose to go the short sale route.  Beware the listings on Zillow or other public websites of homes that are Pre-Foreclosures - they are often not for sale yet! 


 





 

Bad MLS Photos

Just a silly break today.  I have been collecting bad MLS photos to post, but since they were all from my local MLS, I felt a little guilty posting them. 

But, I ran across a link to a property that was listed at $340,000, and I couldn't help but notice that at that kind of price point, you might want to be a little more careful with your listing photos.  Can you spot the sloppy mistakes? 

 

Original MLS listing

If your house is being photographed by your Realtor you can help.  Clean off the counters.  Put away the cleaning products.  Straighten your desk.  Put the trashcan somewhere else when they are taking the photos! 

And Realtors. . .look at what is going to be in the picture before you take it.  Just say no to sloppy photography!

Get your Home's Exterior Ready for Spring!

Here in Northeast Ohio, Spring is finally in the air.  The weather is warmer, the grass is greener, and the leaves are coming back to the trees.  If your house is on the market, it is time to spruce it up for the Spring buying season.  Enjoy that nice weather and get outside for some spring cleaning!  

Here are some tips to get you started, whether you are selling or just getting that spring cleaning burst of energy.  

• Spruce up your front door.  Wash the door, polish the hardware, give it a new coat of paint if you can.  Make sure your home looks fresh and inviting.  
• Clean up your flowerbeds.  It's time to get the dead leaves out of there and some spring flowers in as soon as you are able to.  
• Bring your patio furniture back out.  Even if you don't plan on using it, buyers want to picture themselves in your backyard.  Think about it.  Especially if you are at a first time homebuyer price point, you might have buyers that have been living in apartments or condos with small yards.  Your backyard needs to look like their oasis!
• Wash down your driveway and your porch, getting rid of extra salt and dirt from the winter.  
• Check your roof for loose shingles and clean out your gutters.  
• Organize and sweep out the garage.  Put away those snow shovels, sleds, and salt and park your lawn mower in a prominent spot.  It's Spring!

Photo Credit - Me, 2008

Article inspiration - 18 Ways to Prep Your Home's Exterior for the Spring Market by Charlene Storozuk.