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Posts Tagged ‘Seller’s market’

What Are Your Plans for 2012?

09 Jan

Is this the year you will sell your Home?   What’s the next step?

Its been 5 years into this current economy and you have waited long enough for the market to stabilize.  You are tired of waiting for prices to go up and have heard that they probably won’t in the next couple of years.  So you want to sell and move on with life.

Are you going to take advantage of the great prices and move up?  What you will find is that between the unbelievably great interest rates and low home prices, this is quite possibly the best time ever to move up.  Call a lender to check your financial position.

Will you downsize to a condo or smaller home?  What about renting?  Renting  takes away the responsibilities of homeownership such as painting, fixing, yard work.  Do you want to free up your time to travel, take on a project or pursue a new career?

Whatever you decide, get the wheels turning in the right direction.  Make a list of things to accomplish and give yourself a time limit.  Will it take 30, 60 days or longer to put your house on the market?  Start reading everything you can about selling a house.  Talk to your accountant and tax person.

Looking at Zillow.com and Trulia.com is a good idea too but don’t bank on their numbers.  You will get a good idea what your house is worth but call a local Realtor and make an appointment to get a better idea about what your home can sell for.

If you find yourself selling your parent’s home which many Boomers are doing, then this is an especially important crossroad.  It’s not easy to do.  I have assisted many clients and friends take this journey and all I can say is “take it easy” unless you have to rush due to financial reasons.  On average I find that it can take a year or so to accomplish.  It will all come together but usually there are siblings and other family members that need to weigh in on what the right thing is to do.  Keep the family peace by having a “talk” early on.  Have one or at most two decision makers that live closest to the home in question.  That decision maker can communicate to family members the progress of the sale.  And don’t hesitate to rely on your Real Estate Agent.   They can be a wealth of knowledge and help get you the answers you need.

 
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Posted in Escrow, FHA, Homes For Sale, Real Estate Update

 

Fix It!

05 Jan

This seems like a no-brainer.  If something needs repair such as a curtain rod, trim around a door or a sprinkler hitting a window – then it is wise to fix it.   Sprucing up your home to show it off can bring you extra $$.

Now there is a fine line here.  I’m the type of Listing Agent that does not recommend installing new carpet, granite counters and any other high dollar improvement.  Most times the Buyer will have their own ideas and style about home improvements and it is too hard to guess what they want.  About 4 years ago I had a Seller who was insistent on updating her deceased parent’s home before putting it on the market.  It took her about 9 months and $50,000 to accomplish this.  We put the house on the market and it sold for much less than I had predicted 9 months earlier due to declining values.  If she had put it on the market without any improvements she would have sold it for a higher amount and not went through all the improvement drama and money.

Now if you are dealing with electrical, heating or roof problems and you know they are in need of repair or upgrading then by all means have these attended to right away.  These can be expensive but a Buyer will automatically put a high dollar amount on fixing them.  Plus you can give the new Buyer the receipt when you close escrow so that they know who to call if they have trouble in the future.

One other thing that I advise Home Sellers is to have a professional home inspection.  For about $350-400 a home inspector will tell you if any of the major systems of the house need attention.  This is especially a good idea if you find yourself selling a parent’s home.  It might have been your childhood home but since you haven’t lived in it for 20 or more years, you might not know if your parents have been keeping up with repairs.

 

 
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Posted in Escrow, FHA, Homes For Sale, Real Estate Update, Title

 

Clean Up!

04 Jan

Nobody likes a dirty house.   The kitchen and baths are judged the harshest by Buyers and need to be spotless.  No dirty dishes, clutter, smells.  Take an hour or so and some “elbow grease” to get things in order.  Get carpets cleaned.  Wash windows.  Clean cobwebs out of corners.  Make the entry clean and welcoming.  Make your bed.  Enlist the family in preparing your home for sale!  After all, you are all in it together.

Some Realtors will recommend staging your home.  This is a personal decision and I definitely think it helps to re-arrange your furniture to allow a more open feel.  However, spending money on staging is not something that is necessary.  Ask your Realtor for advice.  If you are in the High End markets such as Hollywood or San Francisco then it is a must otherwise let your good judgement lead the way.

Hold a garage sale if you have too much stuff.   Ask your Realtor to help – most are willing to get involved and who knows the Buyer might show up at your yard sale!

Last but not least,  start packing.  Pack up the collectibles and valuables.  You will feel good about starting the packing process!

 
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Posted in Escrow, Homes For Sale, Real Estate Update, Title

 

Happy New Year 2012! Is This the Year to Sell Your Home?

03 Jan

It is a hopeful time of year – New beginnings are on all of our minds as we start this first week of the new year.

Is this the year to sell your Home?  Have you been “waiting out the market” hoping for better prices?  Five years have come and gone since the “good old days” of high prices.  Reality has set in and we now know that a house is a Home first and foremost.  Everyone needs a place to call Home.

So if you are thinking about selling in 2012, here are 5 things to do to get ready:

1.  Clean up – no one likes a dirty house.

2.  Fix anything that is broken.

3.  Figure out what is your next step – will you down-size, move up, rent?  Get your plans together

4.  Hire a Real Estate Agent that you like and that understands Your needs.

5.  Price your Home at Market Value – don’t be tempted to go higher – it does not work anymore.

 

 
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Posted in Escrow, FHA, Homes For Sale, Real Estate Update, Uncategorized

 

Top 5 Blogs Posts of 2011

30 Dec

  2011 was my first full year of blogging.  I kept my resolution and posted sometimes twice a week!

I learned a lot about what my audience is looking for when it comes to real estate information.  You want to know the steps for buying a House!

In January 2012  I will start blogging about Selling a House giving step by step information on what to expect in this ever changing market.   I think 2012 will be the year that Sellers finally “get it”.  Meaning that prices are not what they were 5 years ago and they won’t be for many years to come…..sorry about that!

Here are the top 5 blogs of 2011:

5.  12/5/11 Walk Thru

4.  9/23/11  House Hunting – Short Sales

3.  9/5/11  Find A Realtor

2.  9/2/11  What do I need to know when Buying a House?

1.  7/23/11  Not All Homes listed for sale are for sale?

p.s.  If you haven’t already seen my intro video – here it is!

Thanks for following me this year – see you in 2012!

 

 

 
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Posted in Escrow, FHA, Homes For Sale, Real Estate Update

 

Home Appraisal

14 Nov

Step 13

As soon as you have acceptance of your offer, your lender needs to be notified so that he can order an appraisal.

The appraisal process has changed in the last couple of years. Let’s suffice it to say that the appraiser is randomly picked from a pool of appraisers.

The appraiser will meet with the listing agent at the property. They measure the dwelling and inspect the neighborhood and recent sales. The buyer will be given a copy of the appraisal.

Once the appraisal is back at the lender’s, the lender will put in motion the final “conditions” of the loan process.

Should the appraisal not come in at the agreed upon price, then that opens up negotiation again. Both Seller and Buyer will have to agree to go with the appraised value or escrow “falls out”.

 
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Posted in FHA, Homes For Sale, Real Estate Update, Uncategorized

 

The Counter Offer

17 Oct

Step 9

Expect to receive a counter offer from the Seller. In 15 years of writing offers for Buyers, I have only had maybe a dozen original offers accepted as written.

The most common thing that is countered by the Seller is the price.

Some of the other terms of the contract that can be countered is the amount of time for escrow. 30 days is the most common escrow length but sometimes the Seller wants to close escrow on a specific date. The Seller will also counter the escrow and title company that they will want to use. It is customary in this area for Sellers to use the escrow and title company of the listing agent.

If you have written an offer on a bank owned home – REO – then the bank will send you a counter offer that looks like an offer and can be 15-20 pages long. Don’t be alarmed, this is the way they do things. If you have written an offer for a short sale then be prepared to wait as the bank will want to do an appraisal before issuing a counter offer. If you have written an offer on a standard sale home then the Seller will most likely respond within the 3 day time limit that is stated in the contract.

Something that has been happening in the last year or more with REO’s and short sales is that they will counter back that they do not want to pay for any termite work or home warranty. Again, the banks are trying to increase their bottom line any way they can. So buying a bank owned home or short sale places more responsibility on the Buyer because the Buyer will need to pick up these fees.

Next blog post: Multiple Offers

 
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Posted in FHA, Homes For Sale, Real Estate Update

 

Making an Offer on a House

04 Oct

Step 8

It’s not all about price.

The terms of the contract are very important. The main term of the contract that all listing agent’s eyes go directly to is the type of financing. Financing is the type of loan you are using. Are you an FHA Buyer? A conventional Buyer with 20% of your own money to put towards the purchase? A VA Buyer who can use the Veteran benefit that has been awarded to you by being a Veteran? Or a cash Buyer?

At this moment in the San Bernardino/Riverside areas, the conventional Buyer and cash Buyer are King! Sorry to break this to you. Yes, the bottom line is all the Seller is looking at. No, it is not fair. The American Dream of home ownership is being beat to pieces! The investor/buyer that has all cash or the conventional buyer have a definite advantage. An FHA buyer most times is hoping that the seller won’t “mind” paying some of the closing costs but the truth is – they do “mind”. The VA Buyer is at the bottom of the heap and it breaks my heart to say this. The Veteran should have first “dibs” but in this still extremely greedy society, sellers don’t care. Whether the seller is the owner or the dreaded “bank”, they want all the money they can drag out of a buyer.

For a while now, the banks have started saying they will not supply a buyer with a termite inspection or termite repairs, so don’t ask. The banks also will not pay for a one year home warranty which is about $350. So what do you do? You as the buyer pay for these items. Yes, this is a messy time to buy a home but if you get lucky and get your offer accepted, then it is the best of times to buy a home!

 
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Posted in FHA, Homes For Sale, Real Estate Update

 

House Hunting – Standard Sales

16 Sep

Step 4

You know the area you want to buy and the price and size of home that is comfortable for you but now the big question.

Do you want to buy a standard sale home, short sale or bank owned home?

The standard sale home seems like the easy route. However, a large majority of the standard sellers in today’s market think they are “losing money” by selling their home. They could have sold for much more years ago but they didn’t and now life changes are prompting them to sell. Be careful because sometimes these sellers over price a home just to see if they will get a bite. Have your agent “run the comps” which is Realtor talk for – what is the home worth according to recent sales? If you find that the house is overpriced but you want to make an offer then write a good clean offer at market value. All houses sell for market value so the Sellers will need to come to grips with that at some point. Be prepared for a counter offer, 99% of all offers will get a counter offer. If the Sellers are reasonable, you will have bought a house. Don’t feel bad if they don’t take your offer. Many Sellers reject the first offer and then their homes sit on the market and at the time I am writing this, it’s almost guaranteed that their house will go down in value by waiting. Move on to another house for sale.
In the Inland Empire there is a “Perfect Storm” at this moment. Interest rates are amazingly low, you can buy a house and make mortgage payments that are close to what you are paying for rent. And there are many homes for sale. Inventory is good in this area and more homes are coming on the market all the time so don’t worry, your dream home could be just around the corner!

 
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Posted in FHA, Homes For Sale, Real Estate Update

 

House Hunting

09 Sep

Step 3: It’s time for House Hunting!

You have a letter from a lender promising you a loan. You have met with an experienced Buyer’s Agent and committed to working with them. Have your Realtor arrange a tour of homes for you – you are in the market!

Always keep these things in mind:
1. Buy a house in the best school district you can afford – a good school district will help your new home retain its value. This is true even if you don’t have children yet or you are older and your kids are adults.

2. Think about the day in the future that you will be selling – sounds weird but some day you will sell your new home and you want to buy it thinking about the future value.

3. Don’t compromise – if the home has some quirks like being on a busy street or has additions that have not been permitted these are things that will come up over and over again and could turn your dream house into a nightmare.

Next Week: More House Hunting

 
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Posted in FHA, Homes For Sale, Real Estate Update

 
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