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Feb 8, 2012

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How to Sell Your House For the Most Money

Posted on 21 October 2011 by Carson

Your imagination is the most powerful tool you have to improve the value of your property – and it’s free. Here’s how: Step out of your own shoes and step into your potential buyer’s shoes. Then take a good, realistic look at your house and property, and consider: Is it appealing? Can you imagine yourself living there comfortably? Or do you imagine yourself putting in a lot of work to make the house and property acceptable?

Most buyers are interested in three things about a property they’re considering

¨ Visual appeal (landscaping, spaciousness, cleanliness, color, lack of clutter)

¨ Maintenance (everything in working order, nothing to repair or paint)

¨ Safety (locks and deadbolts, burglar/fire alarm systems, busyness of the neighborhood)

If a potential buyer can’t form a good mental picture of living in your house – no sale! With this in mind, you’ll want to give your property a good, hard look from the outside in. You want to create a fabulous first impression so everyone will want to come inside.

What to Look For On the Outside

¨ Roof and gutters: When buyers look at your house from their car, about 30 percent of what they see is your roof. Be certain it’s in good repair.

¨ Landscaping: A well-manicured yard and a smooth, even driveway reassure potential buyers that you care about your property. A yard free of mud and weeds suggests a good sprinkler system and low maintenance.

¨ Paint and siding: Neutral colors and a clean appearance are important. Consider repainting or power-washing both your house and roof.

¨ Porch or covered patio: Make sure it’s clean and uncluttered.

¨ Fence: Fencing should be in good repair.

What to Look For On the Inside

¨ Kitchen: Regardless of your kitchen size, you can make it feel spacious: Remove appliances and gadgets from your counter tops and store them. Repair broken or cracked counters.

¨ Bathrooms: Replace faucets, medicine cabinet, and towel racks if necessary; be certain the bathrooms are spotless and fresh-smelling.

¨ Master Bedroom: Spaciousness and décor are important. Remove and store nonessential furniture.

¨ Flooring: An investment in new carpeting almost always increases the perceived value of a home. Select a neutral color of medium-grade carpeting and padding. Replace cracked and broken tiles.

¨ Wall covering: A fresh coat of paint can do wonders. Always use neutral or soft, warm colors. Avoid wallpaper.

¨ Personal touches: Eclectic personal touches may distract potential buyers.

Deciding What to Do First

The most important thing to think about first is this: Fix what you can see! Cosmetic changes, regardless of the cost, will make a world of difference when it comes time to sell. Whatever you saw when you put on your potential buyer’s shoes, that’s what you do first, from the outside in.

Keep in mind that you want the best return on your investment. When you make cosmetic changes, you maximize popular appeal. People will see what looks great, and they’ll picture themselves living there. Conversely if your home looks untended, people will imagine how much work they have to do – again, no sale!

The cost of such a project might frighten you; however, think about the cost of not doing it. If it costs $2,000 to repair your roof and gutters and you balk at the price, think again. The same roof repair will probably decrease your asking price by $4,000 when a buyer begins to negotiate. Ask your Realtor for guidance.

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How to Choose a Neighborhood

Posted on 13 October 2010 by Carson

Narrow your home search by identifying neighborhoods that are right for you.

When evaluating a neighborhood you should investigate local conditions. Depending on your own particular needs and tastes, some of the following factors may be more important considerations than others:

quality of schools
property values
traffic
crime rate
future construction
proximity to schools, employment, hospitals, shops, public transportation, prisons, freeways, airports, beaches, parks, stadiums and cultural activities such as museums, concerts and theaters.

Neighborhood search strategies
If you’re a first time-buyer with limited financial resources, it’s wise to buy a home that meets your primary needs in the best neighborhood that fits within your price range. You can maximize your home purchase location by incorporating some of the following strategies into your neighborhood search:

Look for communities that are likely to become “hot neighborhoods” in the coming years. They can often be discovered on the periphery of the most continuously desirable areas. Look for a home in a good neighborhood that is a bit farther out of the city. If commuting is a concern, purchase a home that is close to public transportation.
Look at the neighborhood demand by asking your REALTOR® whether multiple offers are being made, whether the gap between the list price and sale price is decreasing, and whether there is active community involvement. You can also drive around neighborhoods and see how many “sale pending” and “sold” signs there are in a particular area.
Look into purchasing a condominium or co-op, rather than a house, in a desirable neighborhood. This way you still may be able to purchase in a prime area that you otherwise could not afford.

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How to Negotiate the Best Deal

Posted on 13 October 2010 by Carson

Buyers are finally being able to take advantage of cooling trends in previously hot markets. Multiple offers are no longer being thrown at sellers as soon as the For Sale sign hits the front yard.

Competition has dwindled in many areas as investors disappear and buyers take to the sidelines. Unless a buyer thinks his local market is headed for a big downturn, this could be the pause that allows him to get into the market with a few perks unheard of in recent years as a bonus. So how do you know what shape your market is in? Economists believe that real estate is closely tied to employment, so if you’re in an area of growing employment, don’t expect to see double-digit depreciation anytime soon. In areas such as the Midwest, where auto manufacturing is king, prices have fallen sharply and will likely continue until the industry rebounds.

Here are 10 things buyers need to know to negotiate the best deal in a market shifting to their favor:

1. Human nature is the biggest problem for sellers and buyers to overcome in a changing market. Prices stagnate or drop a few percentage points and it’s amazing how different buyers and sellers react. Sellers still think their house is “special” and immune to the market. Buyers figure every seller is about to be foreclosed on and make ridiculous low-ball offers. Smart buyers do their homework, know what size home they need, how much they can afford and then search the market for what they want and negotiate fairly.

2. When you make an offer, know the recent comparable sales; it’s the best bargaining tool. “See what’s going on out there,’’ says Beverly Durham of ReMax Gold Coast Realty in Camarillo, Calif., where entry-level single-family homes begin at $500,000. “Make an offer $10,000 to $15,000 under what the last one sold. Even in this market, if you insult your seller, they won’t want to deal with you. Sellers know what the last one sold for. You want them to at least look at your offer.”

3. Find out as much as you can about the seller’s motivation — retirement, job, divorce, wants to move up but only if he gets the right price. Durham says if a buyer knows the seller’s motivation they can negotiate a better deal or move on to the next property.

4. Multiple Listing Service (MLS) properties usually state what the seller owes. If not, your agent should be able to track down the figures. There’s a big difference in negotiating with an owner who owes more than the house is worth and one who has a lot of built-up equity.

5. “After 45 to 60 days the seller is usually absolutely sick of keeping their house spotless and sick of people walking through,’’ said Durham. This is when a seller may be the most anxious about selling their house as traffic to their house has likely fallen sharply.

6. Unless you’re incredibly handy and have time and cash, go after houses that are as updated as you can afford. This is easier to do in a stagnant or falling market and fixers aren’t usually discounted enough to be worthwhile.

7. In a tighter market, it’s not too much to ask the seller to add the closing costs to the price of the house. It’s better to put 20 percent down and add the closing costs to the loan than put 15 percent down and pay the costs upfront.

8. Items to ask for that shouldn’t offend sellers are paying for new kitchen appliances or washer and dryer. Most sellers will be willing to do so to close the deal. Durham also says it’s OK to ask sellers to pay up to the first year of homeowner association dues.

9. Don’t request anything that requires quality workmanship. “Don’t ask them to paint,’’ Durham said. “They won’t do it the way you want. They’ll do a lousy job.’’ Also, don’t get carried away and ask for the entire store. Be reasonable.

10. Make sure to look at the big picture. In changing markets you should be planning to stay for at least five years, so don’t get caught up in a $2,000 price difference. Remember, the goal is to get the house you want to live in for some time, not to impress friends with how you worked the previous owner.

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August Market Watch- Carson Lowry

Posted on 13 August 2010 by Carson

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Mortgage Rates Fall, Extend Record Lows

Posted on 23 July 2010 by Carson

Mortgage rates fell in the past week, with the average rates on 30- and 15-year fixed-rate mortgages further extending record lows, according to Freddie Mac’s weekly survey.

Rates have been at or near record lows as the Treasury market has rallied amid stock-market volatility, pushing yields lower. Mortgage rates generally track Treasury yields.

The decline over the past few weeks also “echoes the recent signs of weakening confidence in the strength of the economy, particularly the housing and consumer sectors,” said Freddie Chief Economist Frank Nothaft.

The 30-year fixed-rate mortgage averaged 4.56% for the week ended Thursday, down from the prior week’s 4.57% average and 5.2% a year ago. Rates on 15-year fixed-rate mortgages were 4.03%, down from 4.06% and 4.68%, respectively.

Both the 30- and 15-year mortgage rates are at the lowest point since Freddie started tracking them, 1971 and 1991, respectively.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.79%, lower than the prior week’s 3.85% and 4.74% a year earlier. One-year Treasury-indexed ARMs hit a fresh low of 3.7%, down from 3.74% and 4.77%, respectively. That loan type has been followed by Freddie since 1984.

To obtain the rates, the five-year fixed-rate mortgages required payment of an average 0.6 point and the others required an average 0.7 point. A point is 1% of the mortgage amount, charged as prepaid interest.

If you have questions about getting a loan to buy a home, please call me, and I will be happy to provide you with additional information.

Carson

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