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Tips and Pointers

Avoid Common First-Time Buyer Mistakes

Wednesday, September 8th, 2010

If you are in the market to buy your first home, you may have already realized that the process involves many different levels of knowledge and understanding. Chances are many steps of the process are completely foreign to you.

By arming yourself with an arsenal of important questions, as well as with a team of professionals, you are sure to avoid some of the most common first-time homebuyer mistakes.

1. Interrogate the Lender. There’s no need to play good cop, bad cop. This simply means you need to ask every question that comes to mind. In the wake of the predatory lending storm, its important to be sure you understand exactly what your mortgage will entail. Be sure to compare rates with other lenders to be sure you are getting the best rate. You can also ask for par pricing, which is the rate without points.

2. Be Ready To Act. In many markets, highly desirable areas come with a large amount of competition. Many buyers may be looking at the same homes as you. If you hesitate, you may very well lose out on your dream home. The best advice? Don’t begin the process of viewing homes unless you are really ready to buy.

3. Think Long Term. You love the house, and you can deal with the small bedrooms and laundry room in the garage, but will the next set of buyers? If you are planning on selling the home in the next few years, you must remember to consider the resale value of a home. Is this neighborhood appreciating quickly, or are homes losing value?

4. Be Competitive. We all want to buy a home for the best bargain price possible, but a careful consideration is respecting the seller. You may view a low ball offer as a starting point, but a seller may view it as an insult and refuse to answer your offer. If you really want a home, be reasonable with your starting bid.

Use these simple tips to avoid some of the most common buyer mistakes!

Final Walk-Through Tips

Thursday, September 2nd, 2010

There will come a time during your home buying process when you’ll need to do a final walk-through of the home before closing.

Around a week before you close, take the time to visit your “new” home again. When you’re there, check to be sure that the terms of your contract have been met, and that the condition of the property has not changed significantly since talks began.

As your reference guide, be sure to bring your purchase contract with you for this walk-through. This will help you look for little details, without having to remember each item.

What are things you should be on the lookout for?

1. Major appliances: Be sure that any items that were to remain in the home are still there, and that they are in good working order.

2. Major systems: Do the air conditioning, heat, and plumbing still function?

3. Walls and floors: Has any damage occurred to the floors or walls during the sellers move? Were rugs, artwork, or carpets covering water damage that was not disclosed?

4. Repairs: As part of your purchase contract, the seller may have been required to make specific repairs. Be sure that these have been completed, or that the seller has a written timeline for when the repairs will be done.

5. Screens and Storm Windows: If it is the season for these items to be in storage, be sure they have been left behind and that they are in good shape.

6. Remotes: Garage doors, alarms, sound systems, and the like all use remotes, some of which can be very expensive. If any of these components were part of your agreement, be sure they have been kept with the house.

7. Cleanliness: The home should have been cleaned and all debris removed. You don’t want to spend the first week living in your new home cleaning up other people’s junk.

8. Landscaping: It may seem ridiculous, but yes, some sellers may try to run off with your shrubs and plants. Refer back to your contract to see what should have stayed.

9. Fixtures: Light fixtures, curtains, and other items that were agreed upon should still be in the home.

10. Exterior: Has there been any damage to the home since your inspection or first visit? If there has been a storm with high winds, be sure to visually inspect the exterior of the house for damage. Once you have signed on that dotted line, the house is yours.

Closing time can be very hectic. Be sure to make time for your final walk-through.

Making Your Home Appealing On A Budget

Monday, July 26th, 2010

With the uncertainty of the economy, many people are looking for ways to cut back. When it comes to selling their home, homeowners often don’t want to put much money into getting it ready for the sale. While that’s certainly understandable, properly preparing a home before listing it goes a long way to helping attract serious buyers and offers.

It’s not that you have to upgrade or completely renovate a room in order to make your home more marketable. Polishing up and tiding up a few key areas can have a remarkable impact. With that in mind, you don’t have to spend a fortune to do this. In fact, you can make your home appealing even on a budget. Here’s a few ways.

Whether or not your buyers cook, all seem to be interested in the kitchen. So this is where we begin. Chipped cabinets with peeling paint are unsightly. I’ve seen kitchens where the countertops are nice, maybe granite, but the cabinets are a shocking mess. It’s a simple solution to reface them. It doesn’t have to cost a lot. A new paint job for the kitchen walls and cabinets can give the whole area an updated look and make the kitchen area inviting even to those who rarely use it! You might also consider replacing the cabinet handles. You’d be amazed how much difference that makes. One last thing, don’t leave dirty dishes in the sink.

This next tip refers not to one particular area but instead to highly trafficked areas. Doorways, hallways, the lower part of walls, and baseboard trim, anywhere else where those nasty scuff marks, fingerprints, and dust settle in. Put a little elbow grease into washing and/or repainting those areas and notice what a difference it makes. I remember when I used to list real estate I went into a home and saw tons of pictures taped to a teenager’s door. It was a nightmare. The homeowner eventually peeled off the pictures and repainted the door, so much more attractive. If you’re dealing with a small space, you might try something that may seem counter-intuitive. The Star Tribune reported that moving furniture 1.5 to 2 feet away from the walls can help to make a room look larger. Pressing furniture up against the wall gives it a crammed look.

Mow your lawn and water the plants. It sounds so basic but really this is often overlooked. In the hurry, to pack boxes, shove items in closets, and get the pets out of the house before an open house, homeowners sometimes neglect to take care of the landscape. Thus flowers start to wilt, the grass browns and the overall yard has an everyone-forgot-about-me look.

Grout your way into buyer’s hearts. Yes, the fine lines do matter. Walk into your bathroom after reading this article and look carefully at your tub and tile on the floor. Does it look grubby? Need a good scrubbing? Or does it really need to be re-grouted? That soap scum build-up and mold will really stand out to buyers. And while fixing it doesn’t take much, sometimes homeowners simple opt not to take care of this before listing. Maybe they presume that it’s not that big of a deal and that it’s an easy fix. The first part is incorrect and the latter is absolutely correct, so roll up your sleeves and fill in the lines. It could just lead to the signing on the line on sales contract. Best advice is to see your own home the way you survey a home that you’d like to buy, that’s typically with a very critical eye. Then fix it up. The changes could result in a faster sale at a higher price.

Conserving Electricity

Wednesday, July 14th, 2010

Small habits can add up to big savings when it comes to electricity.

As the summer heat soars, so do many homeowners’ electric bills. Here are some savvy tips on how you can start saving both your cash and the environment.

1. Get Unplugged. You may think that simply turning a device or appliance off is enough to stop the flow of electricity, and the subsequent flow of money out of your bank account, but any item plugged in to an electrical outlet is drawing a small amount of electricity. So, unplug all of your items.

2. Swap it Out. Replace conventional incandescent light bulbs with Compact Fluorescent Light Bulbs (CFL) and save yourself in the long run. Energy Star reports that a CFL will save “about $30 over its lifetime and pay for itself in about 6 months. It uses 75 percent less energy and lasts about 10 times longer than an incandescent bulb.

3. Energy Star Appliances. They are a more pricey change, but the long term savings can be well worth the upfront cost. These appliances are certified to use 10 to 50 percent less energy than your standard appliances. They also help reduce emissions and air pollutants.

4. Daytime Low. Most U.S. Households use some form of air conditioning during the summer months. If you have an empty house during the day, consider setting your thermostat to a higher temperature during the day, and then turning it cooler when you get home. If you have a more advanced system, consider setting a timer to kick on the cool 30 minutes before you return home.

5. Lights Out. This may intuitive, but turn off the lights in rooms you are not using. The same goes for televisions and computers.

Use these simple tips to reduce the cost of running your home this summer, and put that extra cash away into savings!

Wish List for a Dream Home

Tuesday, July 13th, 2010

Your first step in finding your dream home is developing a strong image in your mind, and a sound list of what you want of your dream home.

To make this process a little less daunting, consider these categories:

Location: It has been lauded for years as the most important factor when it comes to the saleability and pricing of home, and it’s a good place to start when compiling your wish list. Do you want a short commute to work? Are you looking for a waterfront property? Do you want to be near family? Is there a particular neighborhood you want to make home? These are all important questions that will help me narrow your search for your dream home.

Neighborhood: If you are looking for a family home, then you need to research the local schools. Is there a particular school district you want to be in, or perhaps to stay in? Are you wanting a neighborhood within walking distance to shops and restaurants? Or perhaps you prefer something more quiet, or on a cul-de-sac.

Home Styles: Do you prefer large, open floorplans and Modern architecture? Or are you a fan of cozy and functional Country style plans? A Tudor style home is exemplified by tall, narrow windows with small panes and a reminiscence of Medieval looks. Or how about Victorian style homes, which feature elaborate details on the exterior and interior of the home?

Home Features: Not every buyer is seeking the same features. What is it that you desire most? Fireplaces, guest bathrooms, an open floor plan, formal dining, a media room, covered porches, a screened porch, a large finished garage, or a pool? The same concept goes for decorative features, including flooring preferences, crown molding, and exterior siding.

Condition: Are you on the lookout for a fixer-upper? Some buyers thrive on the challenge of restoring a former beauty to its original glory. Or are you the type that wishes for new construction, so you can put your own mark on the property? Also consider the idea of townhomes and condos, which can afford the homeowner even more freedom from maintenance.

Use these categories as a starting point for creating your own wish list…

Don’t Make These Mistakes

Friday, June 25th, 2010

I would usually write about something that you WOULD do in order to sell a home, but sometimes there are suggestions mixed in about what NOT to do and that’s what I would like to talk about. It’s pretty easy to get caught up in looking forward to where you’re going to relocate next when your home sells. However, most of the time sellers need or want to sell their current home in order to make that transition into the new one. With that in mind, let’s take a look at some of the mistakes sellers make when they put their home on the market.

Not Using Experts. This tip really applies not only to selling a home but also to financial investing, building a business, or anything else that requires expertise. Of course, you can sell your own home and some people do, but many times the headaches that go along with it far outweigh the benefits. Frequently, I hear stories from homeowners who attempt to do this, but months later that those same sellers are trying to locate a qualified real estate expert. Their self efforts effectively slowed their sales process and lost time on the market.

Getting Emotionally Attached. Sounds like I’m talking about a relationship? Well, it kind of is. Because you’ve had history with your home, the memories cause you to have an emotional attachment with it. But now, you have to detach and recognize that your emotional attachment will likely not transfer to the buyer.

Buyers will come into your home looking to find out what’s wrong hoping to thereby negotiate the price down. They’ll be skeptical, checking all around the house to make sure that they’re not going to buy the home and end up having to deal with burdens of many flaws later. They won’t have the memories of the kids taking their first steps in the living room or the big celebration you had for grandma. Buyers will possibly think about the parties and how their lives can fit into this house if you’ve removed the items that make it look and feel too much like your home.

Holding Your Own Open House. This one really goes hand-in-hand with the first “don’t do” tip. Some sellers like to be around when their home is on the market. However, I suspect you have better things to do than sit at home while potential buyers explore your house.

Making fish and other smelly foods. Okay, so I’m not saying that you can’t cook what you want in your home. The issue is actually not just about food but also things like pet odors and incense or anything else that might have an offensive odor to a potential buyer. I’ve written about people who use fragrances to create a particular smell when they’re showing their home (there are companies that specialize in this).

Generally, a pleasant odor is appreciated but there are different types of people and “pleasant” is relative to the individual. So, basically some of the mistakes that you can make are to fry up some fish, let the pets do the wrong thing in the house and then not deodorize, and leave the pets loose to “welcome” the guests in their own ways. For certain, most people won’t appreciate those smells.

As for using other fragrances, my personal opinion is that if the smell is subtle and not overwhelming, it probably won’t cause any issues with buyers unless they happen to have a particular allergy. However, if there’s a repugnant smell, it will get a huge reaction and buyers will flee the home like scurrying ants seeking food and water on a hot summer day.

Watch out for these mistakes and you’ll be ahead of the sellers who are wasting time (and possibly losing buyers) by not seeking expert help, not detaching from the home, showing their own home, and forgetting to deodorize.

Market Recap

  • Avg. Sales Price: 379,000

  • Avg. Days on Market: 69

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