Real Estate Talk

Price Overcomes All Obstacles

In real estate there is a phrase, “Price overcomes all obstacles”.

It’s a hard lesson to learn if you are a homeowner and, sometimes, a harder lesson to teach, if you are a realtor. What does it mean?

If your house backs to a main road and just is not getting any showings, price overcomes all obstacles. No one wants to back to a main road, but they may consider it – for the right price. Lower the price in 5-25k increments (depending on your price point) until you get a surge of showings.

We needed to sell my mom’s one-bedroom condo. One-bedrooms are a tough sell. Everyone would like that extra bedroom for storage, office space or guests.

The realtor felt it should be listed at a certain price that I felt was too high, but I let her. I waited two weeks. We had zero showings. I lowered the price 5k and waited one week. No showings. I lowered it another 5k and waited one week. Still no showings. I lowered the price 5k a third time and boom! We had 16 showings and 3 offers in just 2 days.

All 16 of those people were willing to overlook the fact that this was a very small condo for that particular price point, which was, incidentally, exactly where I wanted to list in the first place.

The point is, if you have something that people are objecting to, lower your price until they no longer object. If you don’t, they just won’t come.

Foreclosures | To Buy or Not To Buy

Foreclosures may sound like a scary purchase, but it doesn’t have to be. In fact, there are some steps you should follow to make the process go as smoothly as possible.

1. Hire a realtor. This is not a do-it-yourself project. You are in over your head if you go it alone and you will regret it! Besides, Buyer’s Agents are free for the Buyer. You need someone who knows not only the market but how the foreclosure process works. If your Agent is clueless and you are adamant about getting a foreclosure, get a new Agent.

2. Bring your rose-colored glasses. Some foreclosures are in mint condition, some are NOT. In fact, as childish as it may seem, some people literally trash their home like a two-year just before moving out. I have seen missing kitchen cabinets, giant holes in walls, spray painted messages to the bank across the walls, and even yanked out air conditioners, which is so not safe. To each, their own.

3. Bring your patience. In a normal sale, you make an offer and wait on pins and needles for the response. The Sellers, likewise, are waiting for you. They are just as excited and nervous. They are real people. In a foreclosure, you are dealing with a nameless, faceless bank employee. They do not see you as a person looking for a home to raise your children, but rather as another thing to do in their overflowing in-basket. They will get to you when they get to you and not one minute sooner.

3 Great Online Resources For Your House Hunt

Ok. First and foremost, use a licensed realtor when you purchase a home. I shouldn’t have to explain it by now, just do it. It costs a buyer NOTHING to use one. Enough said.

Now, if you want to surf the net for houses, whether daydreaming or purchasing, these three sites will be helpful.

1. Realtor.com is my personal fav. You can hunt things down by city, zip or by a specific radius from your point (for example, house within 10 miles of Canton, Michigan). You can also sort the records in a number of different ways as well as filter through them to say, just house with 1 acre of more of land and 5 bathrooms. Why you need five bathrooms, I do not even want to know.

2. Zillow.com is great because they let you see recently sold homes, which is always helpful information. It’s great to know that most 4 bedrooms in your area of search sell for $89 a square foot and that the one you love is way overpriced. Of course, this is also why you should hire a Buyer’s Agent because they are there to tell you this stuff.

3. Homes.com is the new kid on the block. I do not use them often, but some people swear by them. They have all the search features for both rentals as well as homes for sale. They also have a pseudo-forum that they call Q & A. You can post questions and hope for a good response. Of course, you know what I am about to say … this is what your Buyer’s Agent is for.

Spring is Here | 4 Cheap Ways to Spruce Up for a Sale

Spring is here. Yes, snow may still be flying where you live, but the spring market starts at the end of February/beginning of March. So, what do you need to do to get ready? How do you prep for the onslaught (fingers crossed) of new and ready-to-go Buyers?

1. Keep the walkway clear: Shovel the snow. Sweep the grass clipping. Blow away the dead leaves. Whatever is on your sidewalk, front porch, patio or deck, clean it up. First impressions count!

2. Say it with flowers: Even if it’s still chilly, flowers brighten any front entrance. A planter full of hardy crocus or daffodils is cheery for visitors. Even if you live in the frozen north, try a potted evergreen topiary for a little greenery.

3. The sniff test: Let’s face it. Even if you don’t own a pet or smoke, your house can still get stale over the winter. Don’t kill it with fake sprays, candles and plug-ins. It just makes it look like you are hiding something. If there is a warm afternoon in your future, open all the windows and let in some fresh air. Spray a little air freshener when the windows are open and let Mother Nature do the rest.

4. Think light and bright: If you have heavy, dark-colored accessories, consider swapping them out for something a bit more spring. A white throw instead of a heavy navy one. A few pastel throw pillows in lieu of the forest green and burgundy ones. Maybe even a vase of forced forsythia branches to add some cheeriness.

Getting Your House Ready to Sell

When it comes to selling your home, it can be a stressful situation. Especially if you have already purchased a new home and are wondering how you will be able to pay for both if the current home does not sell in time. But there are things you can do to make your current home more appealing so that it will sell faster.

If there are any projects around the house that are waiting to be completed, now is the time to do them. Half finished projects do not look good to potential buyers and will likely cause you to get a lower offer as they are looking at the time and money that is involved for them to finish them. Even projects that will not take much to do can cause a potential buyer to decide not to offer on your property.

Another improvement that the house may need is a fresh coat of paint, depending on how long it has been. This may also mean pulling down al the pictures or other items that may be attached to the wall, fixing the holes and then painting the whole thing. You can leave up the items that will be staying with the house such as built in shelving, but the paintings should come down.

By doing just some minor fix ups in the house, you can drastically improve the way that it looks and increase your chances of getting an offer for exactly what you want. Depending on how good of a job you do, you may even end up getting more than what you were expecting which is a great bonus!

Shopping for your First Home

What an exciting time! You have decided that you are ready to buy your first home. But have you figured out what you want and what you can afford? You haven’t? Oohh.. it would be a good idea to do this before you contact your realtor and get looking. It will save you both a headache and time in the process.

One of the first things you should do is visit your lender – whether it is a bank or a mortgage broker – and determine what you can afford. This is not what you are spending – but how much money they are willing to lend you for your mortgage. You will need to take a paystub or tax forms with you as proof of income. Be prepared to answer questions about any debt that you may have such as loans as well as credit cards that you use. They will likely need to know how much money you have for the down payment. It may take a week or longer to get an answer as to how much you qualify for, so make sure you ask how long until they give you an answer.

Another step is to determine what you want in your home. There are a variety of items to consider here – what type of home do you want, what features do you want it to have, what do you not want? You can be as specific or as general as you want, but the more that you can tell the realtor in regards to likes and dislikes, the more success you will have in finding that perfect home.

Vocabulary Lesson of the Week | Real Estate Lingo

Realtors and other people in the know have a tendency to talk in acronyms. Apparently, we are so rushed for time that we cannot bother to say the whole word or phrase. And, time is money, you know. So, without further ado, here is a brief list of some of the more popular time-savers.

1. MLS: This stands for Multi-Listing System. Basically, it is the internal database that all realtors use to access information on homes for sale. You need to be a licensed realtor to use it, but online sources like realtor.com can pull certain information up to share with consumers.

2. FSBO: For Sale By Owner, pronounced “fizz –bow”. Realtors go after FSBO’s. Sometimes aggressively. And, really, in this market, there is NO valid reason why you should go it alone. None!

3. CMA: Comparative Market Analysis. A CMA is when a realtor analyzes all the data of houses currently listed as well as recently sold in your area and comes up with a well-thought out list price for your home. Most realtors do not do this very well and most homeowners do not want to hear it anyway. Another story, another blog post.

4. PITI: You may see this and be tempted to say “pity” or something similar but realtors say the letters … P-I-T-I. It stands for principal, interest, taxes and insurance in reference to your new mortgage.

5. The HUD: The proper name is the HUD-1 Settlement Statement, but everyone just says “The HUD”. This is that main page of your closing docs, where it shows the breakdown of all the math. It is usually an 11 x 14 piece of paper.

Why Hiring a Buyer's Agent Is So Important

A Buyer’s Agent. What? Who? Why do I need one of those? I’ll just wing it on my own; it’ll save me money.

Ack! Where to start…

1. A Buyer’s Agent is the realtor in a transaction that represents the interest of the Buyer. He/she works for no one else. Their sole purpose in life is to get you the best deal on the house you want. Period. If they do the job well, they hope that you will give them a call in 5-10 years when you buy the next one.

2. You can find a Buyer’s Agent at an open house. If you click, great. Keep in mind that open houses are usually worked by newbie agents. An experienced Buyer’s Agent has a list of clients (and those client’s friends and families). In fact, a better place to find a Buyer’s Agent is to ask your friends and family if they liked their Buyer’s Agent.

3. So many things can go wrong when you buy a house, especially in today’s economy. It cannot be stressed enough how much you need an Agent to represent your best interests. Think of it this way: you may think they make a lot of money for little work BUT if something goes wrong and they save your butt, they are worth 10x that commission.

4. The commission is set at 6% or 7% or whatever on the house you are buying. It all comes out of the Seller’s profit. You do not pay one red cent of it. If you choose not to hire a Buyer’s Agent, the Seller’s Agent gets paid twice as much. Lucky them! Hire a Buyer’s Agent and get your money’s worth.

When Does The Spring Selling Season Start?

The answer seems so obvious: Spring. Right?! Nope! Try again. Need a hint? In real estate, the Spring selling season starts now. The week after New Year’s. Once the dust settles and the wrapping paper is recycled, Buyers get back to business. Mortgage people are starting a new year and a new quarter. They are ready to lend (and make commission to pay for their Christmas binges). The New Year gives Buyers renewed energy that they will find the house of their dreams. They are excited. Excited Buyers are good news for Sellers.

Wait…

Where are all the Sellers? Yup. You guessed it. They are still working under the assumption that the Spring selling season starts sometime in March or April, whenever that paper calendar hanging up in their kitchen says the first day of Spring is. Maybe their Agent warned them and they failed to listen. Maybe their Agent is equally clueless. It doesn’t matter. By the time they get their house on the market, the Buyers will be gone.

Gone?

Yup. That’s right, gone! By April, they decide that they should wait until the kids get out of school and they take a break from house hunting to pack, prep, attend a few soccer games and wrap up the hectic school year.

Confused?

Here is your takeaway from this little post: List your house January 2^nd (if possible) to take advantage of the most Buyers. Take down the holiday decorations, clean out your closets and get that for sale sign up. Pronto.

Get. It. Sold.

3 Holiday Gift Ideas for your Realtor

It’s Christmas and, like Santa, you are checking your list. Not to see who has been naughty or nice, but rather to make sure you didn’t overlook anyone. Babysitter – check. Lawn guys – check. Hair stylist – check. Realtor – huh?

While you may not like the state of the current housing market, it is by no means your realtor’s fault. In fact, a little token gift may just move you to their favorite client list. So, what do you get them? It can’t be expensive, just a small token to share some holiday cheer. Here’s a few suggestions to get you started:

1. A car wash certificate. Agents need to keep their cars clean and presentable for work and a free car wash always gets them excited.

2. A holiday card, complete with picture and a nice hand-written note on how much you appreciate their work. Of course, everyone likes thanks yous but realtors also use them to display in their look book and show potential future clients.

3. Food. This cannot be underscored enough. Agents love free food. If you work in the industry you know this. They may claim to be watching their weight or their carbs or their cholesterol but, when you aren’t looking, they have some. They always do, In fact, leave something in the coffee room and, like the movie, it’ll be gone in 60 seconds flat. Some agents have been known to go on caravan (viewing the office’s new listings) just for the free food. They can fill up for the whole day under the premise of working.

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