January
9
2010
#1 Mistake: Not listing your property with a Full-Time Realtor©
When selling your home there are no guarantees that the ultimate buyer of your home will have simply walked through the front door. In many cases you may have to bring your home to the buyer. Effective marketing will help ensure that your property receives maximum exposure to attract a ready, willing and able buyer in the shortest period of time. When you list your property, you need to ask some specific questions about how it will be marketed.
In this extremely competitive market, if the Realtor© you are talking to does not run their Real Estate business as a FULL TIME business, then you need to be looking elsewhere. And if their idea of running a real estate business is putting a sign in your yard, entering it in the local MLS, and then running an ad in the local home buyer magazine . . . . well, then they are not seriously up to date in technology, and are not going to get your property exposed to the largest number of buyers possible.
Ask your Realtor© to list for you all of the ways he/she intends to market your home and on what time-line. Also, be sure to ask about the home being advertised on the Internet, and how MANY sites your property will be listed on. At Pinnacle Real Estate Services, we take the marketing of a property very seriously. Our “Strategic Marketing” puts your home in front of more buyers than any other company in Pearl River County, MS.
#2 Mistake: Not Pricing Your Property Right for the Current Market
Perhaps the most challenging aspect of selling a home is listing it at the correct price. It’s one of several areas where the assistance of a skilled, Full-Time Realtor© can more than pay for itself. Listing the home too high can be as bad as too low. If the listing price is too high, you’ll miss out on a percentage of buyers looking in the price range where your home should be. This is the flaw in thinking that you’ll always have the opportunity to accept a lower offer. Chances are the offers won’t even come in, because the buyers who would be most interested in your home have been scared off by the price and aren’t even taking the time to look. By the time the price is corrected, you’ve already lost exposure to a large group of potential buyers.
Your over-priced listing will actually also be helping to sell other properties that are in direct competition with you. Since your price is higher, the lower-priced house will be a better buy for the consumer.
The listing price becomes even trickier to set when prices are quickly rising or falling. It’s critical to be aware of where and how fast the market is moving – both when setting the price and when negotiating an offer. Again, an experienced, well-trained Realtor© is always in touch with market trends – often even to a greater extent than appraisers, who typically focus on what a property is worth if sold as-is, right now.
#3 Mistake: Thinking you need to be in the home to explain things to a prospective buyer.
You will be better served if you allow your Realtor© to do their job without you there. Most potential buyers usually feel more comfortable if they can speak freely to the real estate professional without the owners being present.
Also, if people unaccompanied by an agent request to see your property, you should refer them to your Realtor© for an appointment. Don’t expose yourself, your family, and your property to non-qualified buyers. If they are serious about viewing your home, they will call your Realtor©.
#4 Mistake: Forgetting what you would want to see if you were the buyer of your home.
Remember that although people can be different in personality, they tend to be the same when it comes to expectations at someone else’s expense. In other words, a prospective buyer would probably like to see a perfect home from top to bottom, inside and out. They can envision themselves living in your home, if it’s clean, and problems are already taken care of. Try to do as many of the following items as possible to improve the likelihood of your home selling quickly.
On the outside
• Sweep front walkway.
• Remove newspapers, bikes and toys.
• Park extra cars away from the property.
• Trim back the shrubs.
• Apply fresh, clean paint throughout.
• Clean windows and window coverings throughout.
• Keep plumbing and all appliances in working order.
• Maintain all sealant (window, tub, shower, sink, etc.) in good condition.
• Make sure roof and gutters are clean and in good condition.
• Mow the lawn frequently and plant flowers.
• Keep pet areas clean.
On the inside
• The kitchen and bathroom should shine.
• Quick once-over with the vacuum; carpets should be clean.
• Place fresh flowers in the main rooms.
• Put dishes away, unless setting a formal display for decoration.
• Make all beds and put all clothes away.
• Open drapes and turn on lights for a brighter feel.
• Straighten closets.
• Put toys away.
• Turn off television.
• Play soft music on the radio/stereo.
• Keep pets out of the way and pet areas clean and odor-free.
• Secure jewelry, cash, prescription medication and other valuables.
• Enhance the spaciousness of each room.
December
16
2009
When you are a buyer, looking for a house!
We have had some enormous amounts of rain here in the Pearl River County, MS, area over the past week. It’s unbelievable how much water has fallen. Now, don’t get me wrong, this type of rainfall is not usual for our area at this time of year, but it does give a home buyer a good idea of what they could ever expect of a property.
When my ex-husband and I bought our first home back in 1994, we bought in an area that was unfamiliar to us – LaPlace, Louisiana. We purchased the home during the dryer time of the year. Everything was rosey the first 3 months, until the summer rains started really falling. Come to find out, the area flooded during a hard rainfall, and our back yard looked like the swamp. Thankfully the house was built up about 8 inches, so we never did have water in the house, but I can tell you that it came pretty darn close! And the real problem was that the back yard was lower than the front, so everything drained to the back. My raised stepping stones were immersed 2 inches under water. Even after adding 12 yards of dirt, the yard was still soggy after a good rain. I certainly wished I would have known that before buying that house.
If you are considering buying a home, now is a great time to take a look to see what the worst scenario would be.
Does the property have lower pockets that will hold water?
Does the house get any water close to it after a bad rain?
Are there any waterways close by that might flood with heavy rains?
How quickly does the water drain, after a rain and how long will it take to dry out?
These are great questions to get the answers to right now.
If you are in the market to buy a home in Picayune or the Pearl River County, MS, area, now would be a great time to get out and see what secrets the rain has told. And when you are ready to start the whole home buying process, give me a call and we’ll sit down and get a list of everything that is important to you in a new home, and then head out to find the perfect spot for you and your family!
December
15
2009
RISMEDIA, December 15, 2009—(MCT)—Interest rates on the benchmark 30-year, fixed-rate mortgage dipped to a 38-year low recently, giving consumers another reason to consider purchasing a home or refinancing their current one.
Freddie Mac recently stated the average rate on a 30-year loan was 4.71% with an average 0.7 point, the lowest rate since the agency began its weekly tracking of long-term interest rates in 1971. A point is equal to 1% of the loan amount, payable as a lump sum at closing. While the decline wasn’t overly dramatic, the dip is likely to get people wondering whether it’s time to sign on the dotted line.
The 5 following questions may help you decide if now is the time to go ahead and purchase a home or refinance your current home.
Q: Why are rates so low?
A: Since early January, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in an effort to stabilize the housing market by making homes more affordable for consumers. The Federal Reserve Bank of New York, which is managing the program, plans on purchasing $1.25 trillion of securities.
Q: Are rates expected stay this low?
A: It’s hard to tell, but don’t count on it because the lending landscape is likely to change next year. In September 2009, the Fed said it would gradually wind down the purchase program, ending it by March 30, 2010. That has some in the mortgage lending industry worried.
In a recently published mortgage survey, more than 60% of Bankrate.com’s panel of experts predicted that rates will move higher over the next 30 to 45 days. How much higher is anyone’s guess. Last year at this time, the average 30-year, fixed-rate mortgage was 5.53%.
Q: Why do different mortgage surveys come up with different average interest rates?
A: It depends on which lenders are in their sample, when the survey was taken and whether the rates quoted are the posted rate, the application rate or the commitment rate. Also, some surveys take into account the points paid to secure the rate.
But regardless of the survey, the general consensus is that rates are ultra-low right now and may be the lowest the market will see.
Q: What else does a consumer need to know?
A: The lowest rates are offered to the most credit-worthy customers who can make sizable down payments. Shop not just for the interest rate and the points involved but also for the fees involved, which can vary widely from one lender to another.
If you’re refinancing, remember the bigger the loan, the greater the payoff for finding a lower interest rate. Savvy customers put in their paperwork with a lender and set a “strike” interest rate at which to lock in the loan, a good move considering rate volatility.
Several refinancing calculators are available online that let borrowers plug in all the required numbers and determine the monthly savings and how long it will take to recoup the expense of a refinancing.
Q: So is now the best time to buy a home?
A: It depends on personal situations. Homebuyers certainly have a lot of factors working in their favor right now—low interest rates, plenty of marked-down homes for sale and an extended and expanded federal tax credit that will expire in the spring.
On the flip side, there’s growing sentiment among analysts that housing prices, which are showing ever-so-minor improvement, may fall further. The reason? Lenders are expected to get better at determining which borrowers will qualify for loan modifications. That means lenders also will get faster at moving homes through the foreclosure process.
Mark Zandi, chief economist at Moody’s Economy.com, recently predicted that housing prices nationally will hit bottom in 2010’s third quarter. That means anyone buying a house now could see the value of their investment initially depreciate.
(c) 2009, Chicago Tribune.
Read more: http://rismedia.com/2009-12-14/5-questions-to-consider-before-purchasing-a-home/#ixzz0Zm6mg3Wx
November
24
2009
Buyers commonly ask if the home warranty being offered by a seller is a “good deal.”
Considering that the average furnace repair is between $1,250 and $5,000, a home warranty may save you dollars on a repair that pops up after the closing. In addition, the money you save by not having to foot the bill for the policy–which on average can cost between $300-$400–makes a warranty a worthy perk.
You should be mindful, however, of exactly what the home warranty covers. Most sellers only purchase a one-year basic warranty, which will generally cover major built-in appliances and mechanical systems such as heating, electrical and plumbing, and usually it only covers normal wear and tear. For example, if the water heater was not in good working condition when the home was purchased, and it breaks a week or two later, there is no coverage.
If you want more extensive coverage, such as for pool equipment, air conditioning, or even the refrigerator, talk with your real estate professional about negotiating that extra cost with the seller, or consider purchasing your own warranty. Also, remember that although most home warranties provide coverage only for one year, most plans are renewable.
Whether or not you are given the option of selecting your own home warranty provider, here are questions to consider:
- How much is the deductible or per visit cost for repairs?
- Does the plan cover ‘pre-existing conditions’ which weren’t known to the seller?
- Who performs the repairs? Can you choose someone or does the company send a technician in their network?
- What’s the maximum dollar amount for repairs and what are the policy limitations? For example, will the policy pay for a new water heater at no additional cost?
Whether a warranty is offered by the seller or not, no buyer should forgo a home inspection. An inspection may uncover defects or potential problems that won’t be covered by the warranty – and may give you the opportunity to request the seller to make any major repairs before the closing.
But, warranties definitely have a place when it comes to protection and peace of mind. If you are looking in the Pearl River County, MS, area for a home, give Michelle Fradella a call for more information on home warranties and providers.
November
11
2009
The top 10 ways a seller can practically guarantee that their home listing will expire:
- Not serious about selling. Actions speak louder than words in this market. If you are not motivated to sell your home, then you should wait for a less competitive time to sell. Not being willing to price your home where it needs to be to actually sell in this market tells Realtors and Buyers alike that you really are not motivated, and they really shouldn’t bother.
- Improper pricing. A properly priced home is half sold. It won’t matter how many open houses, realtor lunches, glossy flyers, home magazine ads, Goodyear Blimps, or Saint Joseph statues are used, the fact of the matter is that if your home is not priced competitively, it WILL NOT sell.
- Not listening to your agent. A good full-time, seasoned Realtor is trained to know their market, know how to market homes, and how to motivate buyers. If you question the ability of your agent to represent you, then you obviously have the wrong agent. Don’t self-diagnose (your Doctor wouldn’t) – listen to the Professional!
- Micro-manage the marketing. Having former “sales experience” yourself, doesn’t give you the license to second-guess your Realtor. If you had a real estate license years ago – good for you, but I have to tell you times have changed, and what worked back in the old days WON’T work today! Share your concerns and timelines, but leave the marketing details to the expert.
- Don’t Stage the property. Oh sure, that brown variegated shag carpeting might be considered “retro” by some, or the whitewashed cabinets, Navajo white walls, and Southwest Décor might appeal to a small percentage of others – but if you really want to sell your home, you are going to have to make it appealing and competitive with newer homes on the market today.
- Let Fido run free. Nothing is worse than going in to show a home, and you’re met at the door by frisky, overly enthusiastic dogs. Worse yet, you’re barked to death by an aggressive one, and are not really sure if you should go in. The other day I showed a house and the dog was inside. He was quiet and reserved, but then proceeded to piddle on the floor because he was scared. Not the way I want a buyer to remember a home!
- Talk to the buyers. Being at home when a house is shown is certain death to a possible contract! Sure, you think that you need to tell them all there is to tell about YOUR home, just in case the Realtor doesn’t. Problem is that the buyers feel uncomfortable while you are there, so they can’t envision themselves “moving in” to the home. 9 times out of 10, the things that you tell them will give you a disadvantage when negotiating the price (if they do make an offer). DON’T be at home when your house is shown!
- Sell personal items. Buyers are looking to buy a home – they’re not thrift shopping at Hudson’s Treasure Chest! Don’t try to push your used furniture on them. If they want something, they will ask for it in the contract.
- What’s that Smell? Oh sure, your house doesn’t smell of pet odors, baby diapers, cat litter boxes, fried fish, a dairy farm, or low tide.
- Ignore Feedback. What do buyers know, anyway? You can’t imagine why they don’t care for the groovy blue counter tops, the large scary snake in the aquarium, or the Elvis mural on the wall. Why should these things make your home less than desirable? Every comment from a buyer should be considered. These may be things that are also turning other buyers off, and they just didn’t want to say.
If you are a serious Seller in the Pearl River County, MS, area and want your home to sell – take these words of advice. Also, call Michelle Fradella at Pinnacle Real Estate Services to get your home on the fast track to a closing!
601-569-0075- www.prchomes.com
November
7
2009
The U.S. Senate and House of Representatives passed a bill, this past Thursday, that includes an extension and expansion of the current home buyer tax credit. The bill would extend the present $8,000 tax credit for first-time home buyers through April 30, 2010. Current homeowners are eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years. If potential home buyers have a binding contract on or before that date, they will have until July 1 to close the transaction.
Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.
This is a great boost for the Real Estate Market, giving buyers a great incentive to purchase their next home by Spring 2010.
If you are interested in taking advantage of this great tax credit, and want to see what properties are available in the Picayune and Pearl River County areas, please go to www.prchomes.com to search the database for what’s available on the market today!
November
5
2009
October
26
2009
You’ve heard a lot about the First Time Home Buyer’s Tax Credit, but what do you need to know about it, and who really is eligible for it?
Buy and close on a home by November 30th, 2009, and you may qualify for up to $8,000 in a federal tax credit that does not have to be re-paid. Keep in mind, however, that this is not money that is given to you at the closing table. You have to claim it on your taxes the following year, in order to get the credit.
Anyone who has not owned a home for the past three (3) years can qualify for this tax credit, therefore you don’t have to actually be purchasing your “first home”. The actual amount of the credit is 10% of the purchase price of the home, with a maximum of $8,000. So, if you purchase a house that is less than $80,000, you will receive a smaller credit.
To get more details about this credit, check out the PDF file from the Mississippi Association of Realtors here: http://www.msrealtors.org/PDF/BuyNow/flyer_hi_res.pdf
But you better hurry, if you plan on taking advantage of this credit! It takes an average of 30 days for a loan to be processed! Go to www.prchomes.com to see what is available in the Picayune and Pearl River County, MS, area.
October
22
2009
Before you begin working with any real estate agent, you should know who the agent represents in the transaction. Mississippi real estate licensees are required to disclose which party they represent in a transaction and to allow a party the right to choose or refuse among the various agency relationships. There are several types of relationships that are possible and you should understand these at the time a broker or agent provides specific assistance to you in a real estate transaction. The purpose of the Agency Disclosure is to document an acknowledgement that the consumer has been informed of various agency relationships which are available in a real estate transaction. For the purpose of this disclosure, the term seller and/or buyer will also include those other acts specified in Section 73-35-3(1), Mississippi Code.,”…list, sell, purchase, exchange, rent, lease, manage, or auction any real estate, or the improvements thereon including options;.”
SELLER’S AGENT
A seller can enter into a “listing agreement” with a real estate firm authorizing the firm and its agent(s) to represent the seller in finding a buyer for his property. A licensee who is engaged by and acts as the agent of the Seller only is known as a Seller’s Agent. A Seller’s Agent has the following duties and obligations: To the Seller: * The fiduciary duties of loyalty, confidentiality, obedience, disclosure, full accounting and the duty to use skill, care and diligence. To the Buyer and Seller: * A duty of honesty and fair dealing. * A duty to disclose all facts known to the Seller’s Agent materially affecting the value of the property which are not known to, or readily observable by, the parties in a transaction.
BUYER’S AGENT
Buyer’s Agreement A buyer may contract with an agent or firm to represent him. A licensee who is engaged by and acts as the agent of the Buyer only is known as the Buyer’s Agent. If a Buyer wants an agent to represent him in purchasing a property, the buyer can enter into a Buyer’s Agency Agreement with the agent. A Buyer’s Agent has the following duties and obligations: To the Buyer: * The fiduciary duties of loyalty, confidentiality, obedience, disclosure, full accounting and the duty to use skill, care and diligence. To the Seller and Buyer: * A duty of honesty and fair dealing.
DISCLOSED DUAL AGENT
A real estate agent or firm may represent more than one party in the same transaction. A Disclosed Dual Agent is a licensee who, with the informed written consent of the Seller and Buyer is engaged as an agent for both Seller and Buyer. As a disclosed dual agent, the licensee shall not represent the interests of one party to the exclusion or detriment of the interests of the other party. A disclosed dual agent has all the fiduciary duties to the Seller and Buyer that a Seller’s or Buyer’s Agent has except the duties of full disclosure and undivided loyalty.
A Disclosed Dual Agent may not disclose: (a) To the Buyer that the Seller will accept less than the asking or listed price, unless otherwise instructed in writing by the Seller. (b) To the Seller that the Buyer will pay a price greater than the price submitted in a written offer to the Seller, unless otherwise instructed in writing by the Buyer. (c) The motivation of any party for selling, buying, or leasing a property, unless otherwise instructed in writing by the respective party, or (d) That a Seller or Buyer will agree to financing terms other than those offered, unless otherwise instructed in writing by the respective party.
CUSTOMER
“Customer” shall mean that person not represented in a real estate transaction. It may be the buyer, seller, landlord or tenant. A Buyer may decide to work with a firm that is acting as agent for the Seller (a Seller”s Agent or Subagent). If a Buyer does not enter into a Buyer Agency Agreement with the firm that shows him properties, that firm and its agents may show the Buyer properties as an agent or subagent working on the Seller’s behalf. Such a firm represents the Seller, (not the Buyer) and must disclose that fact to the Buyer. When it comes to the price and terms of an offer, the Seller’s Agent will ask you to decide how much to offer for any property and upon what terms and conditions. They can explain your options to you, but the final decision is yours, as they cannot give you legal or financial advice. They will attempt to show you property in the price range and category you desire so that you will have information on which to base your decision.
The Seller’s Agent will present to the Seller any written offer that you ask them to present. You should keep to yourself any information that you do not want the Seller to know (i.e. the price you are willing to pay, other terms your are willing to accept, and your motivation for buying). The Seller’s agent is required to tell all such information to the Seller. You should not furnish the Seller’s agent anything you do not want the Seller to know. If you desire, you may obtain the representation of an attorney or another real estate agent, or both.
If you have any questions about these catagories, when looing for a home in Pearl River County, MS, please call Michelle Fradella at 601-799-1848, or email her at PRCHomes
