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Laguna Woods Village Realestate's Personal News |
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Date: |
Spring 2010 |
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Subject: |
Selling a Home In a Buyer's Market |
To set the right price on a home, you should combine an objective evaluation of your property with a realistic assessment of market conditions.
In good markets and bad, you are more likely to benefit by determining a fair value and sticking close to it than you are by asking an unrealistic figure and waiting for buyer response to sift out the "right" price. And in a buyer's market, setting the right price from the outset may be the only effective strategy.
You could set a fair price and then refuse to bargain. But that would deter all those people who hate to pay full price for anything and like to feel they're "getting a deal."
Better to leave a little room for negotiation by asking slightly more than you expect to get – 5% to 10% above appraised value could be a good starting point. If sales are brisk in your area, you might just end up getting top dollar.
Don't Overprice
What many sellers don't realize is that overpricing can result in their getting less for their house than if they priced it right to begin with. The reason: Knowledgeable agents and buyers often won't bid on a severely overpriced house. By the time the seller wises up, many of his best prospects will have bought other houses, decreasing demand for the now properly priced property. An overpriced house can end up being sold for less than it would have a few months earlier.
Occasionally, an agent may agree to list a property for far more than it is worth – usually at the owner's insistence. The agent knows that, if the owner is serious about selling, the price will have to come down sooner or later. But sometimes an agent who is competing against other agents for a listing will give a seller an unrealistically high estimate of value, to ensure getting the listing. After the house sits on the market awhile, the agent will suggest a new, lower price more in line with what other agents suggested in the first place.
Some sellers who don't have a deadline for selling ("unmotivated sellers," they're called) will cling for a long time to their overly high asking price – say, 20% higher than it should be. They probably won't get their asking price, and even if they do manage to sell a year later for the original price, it will be because a rising market finally caught up with their price.
They might think that they were smart to hold firm, but in fact they were naive, ignoring the time value of money. In the year (or even six months) that they clung to their high price, the rest of the real estate market probably wasn't standing still. The next home they buy may have gone up in value by at least the same margin, and possibly more.
Study the Comparables
Learn the offering and selling prices of similar properties. Find out how long each took to sell.
To be comparable, a house that sold has to be close to yours in age, style, size, condition, and location. You should also know the terms under which a house was sold. Try to find at least three comparables no more than six months old.
If you are listing your home with an agent, this kind of market research should be prepared and presented to you. |
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Date: |
Spring 2010 |
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Subject: |
Cost vs. value Of Home Improvements |
Minor kitchen remodel 94%
Bathroom addition 89%
Major kitchen remodel 87%
Family room addition 84%
Two-story addition 84%
Attic bedroom 83%
Master suite 82%
Bathroom remodel 73%
Siding replacement 71%
Deck addition 70%
Window replacement 68%
Home office 64%
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Date: |
Spirng 2010 |
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Subject: |
The Pros and Cons of Home buying |
When do you buy and when do you rent? There are a number of things to consider... from what you can expect when you buy a home to how renting differs from home ownership and even how your personality type dictates whether you should be an owner or renter.
Nothing can make you feel more secure than owning your own house, unless buying a home will create financial problems of its own. But are you the kind of person who wants to be free of responsibility, someone who prefers to be able to move in a relatively quick timeframe? If you are, owning a piece of property may not suit you.
Renter's World
Mobility is part of renting. Freedom to take the next job or move for a relationship is easy to come by when you rent a home. And when you do move, there's often more choice of specific location, and price, when you seek rental housing. Want an apartment near a park in western Philadelphia? You may find an easier time looking to rent than buy.
Many renters say they love knowing they're not tied down--and don't have to assume financial responsibility for their living space. This is of course a big difference from home ownership: who does the work.
Maintenance
While you don't receive the joys of making a place truly "your own," you do have limited costs in renting. Landlords are responsible for general upkeep and safety, allowing you to focus on the fine points. Home-owning, in contrast, puts you in the driver's seat. You shoulder the expenses and reap the rewards of home improvement--both great and small. Think about whether you want to put in additional time and money.
Financial pros and cons
No doubt you've thought of how nice it would be not to write a rent check every month, but have you done the math? Here's a look at the most important financial costs associated with home buying to stack up against your monthly rent check.
Instead of the standard deduction on your income tax return, most homeowners itemize their deductions, allowing them to deduct the following (and save on taxes): home mortgage interest, property real estate taxes, state income taxes, gifts to charity, medical and dental expenses over a certain percentage of your income, personal property taxes and most moving expenses.
Figure your monthly payments if you were to buy. Compare your monthly rent to a calculation of the following: purchase price and down payment of your home, your annual income (and debt), property tax rate, home insurance rate, interest rate and length of loan. For a better look into your costs, it pays to contact a home-buying specialist.
Other costs
Expect other costs to homeownership. Along with your monthly mortgage and down payment, there's property tax and homeowners insurance premiums and fees known as "closing costs." These include everything from a credit check to "points"--interest paid up-front in return for a lower interest rate. Other costs that may have an impact on your out-of-pocket expenses: title insurance fee, survey charge, attorney/escrow fees and loan origination.
Long-term equity
No discussion of home ownership is complete without considering the long-term benefits of owning. What your house will be worth when you sell depends on the state of your mortgage and the housing market, in particular. Consult with real estate professionals, read up, and do your math to get a realistic sense of your future home value.
Once you've added up the pros and cons in your own ledger, you can make an informed decision on whether you want to become a renter or a homeowner.
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Date: |
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Subject: |
Eric's Tips for Selling! |
Look at your house “through the buyer’s eyes,“ as though you have never seen it before. Any time or money spent on clean-up and repairs will come back to you in a better selling price.
Inside
Inspect the house room to room. Paint if necessary. Clean carpets or drapes that need it. Clean dirty windows.
A clean kitchen is very important! Clear refrigerator free of messages, pictures, etc. Clear away unnecessary or Rarely used items from countertops.
Sparkling bathrooms sell homes. Remove unnecessary items from countertops, tubs, and shower stalls. Coordinate towels.
Rearrange or remove some of the furniture if necessary. Sparsely furnished rooms appear larger.
Make Closets look bigger. Remove and pack way items that can be stored elsewhere.
Repair needed items, like doorknobs, faucets, and moldings.
Lighting cheers up the house. Open the drapes, or blinds and leave lights and lamps on, especially during showings.
Have a radio in a mellow music station during the day and for all showings.
Outside
Keep the lawn trimmed, edged, and watered.
Trim all bushes and plants. Keep plants from blocking windows.
Check gutters and roof for dry rot. Repair needed shutters, gutters, and down spouts. Paint the mailbox.
Check the house for painting, especially the front door and trim. “ You never get a second chance to make a good first impression.”
Clear patios of small items, toys, empty flower pots, etc.
Inspect screens and widows and make any needed repairs. Clean windows outside.
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Date: |
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Subject: |
Why Hire a Realtor |
Holding a real-estate agent's license does not make an individual a Realtor. Only membership to
the National Association of Realtors (NAR) entitles licensees to use the term Realtor.
Through their National, State, and Local Associations Realtors are subject to constant professional monitoring that keeps them directly accountable to the individuals they serve.
But the most important thing that distinguishes a Realtor from someone who is merely licensed by the state to sell real estate, is the Realtors Code of Ethics and Standard of Business Practice which requires Realtors to put their clients interests first at all times.
What is the value added by using a Realtor?
Even after a sales agreement is signed, transactions can fall through due to a myriad of unexpected obstacles. A Realtor brings to the table all of his/her knowledge, training and negotiation skills, and will explain exactly what you can expect from the buying/selling process. He or she will be able to explain your rights and obligations offering advice and perspective and act as a mediator should any disputes arrise.
Hiring a Realtor means you've retained someone who is committed to continuing education,
professionalism, and integrity; and in today’s complicated and ever changing real estate
marketplace, that commitment can mean the difference between a positive outcome and a
nightmarish experience for the consumer. Why take a chance? Make sure your agent is a
Realtor
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