April
28
2011
After finding a buyer, all you have to do to make it to closing is to avoid these five traps.
Finding a buyer for your home is just the first step on the homeselling path. Tread carefully in the weeks ahead because if you make one of these common seller mistakes, your deal may not close.
Mistake #1: Ignore contingencies
If your contract requires you to do something before the sale, do it. If the buyers make the sale contingent on certain repairs, don’t do cheap patch-jobs and expect the buyers not to notice the fixes weren’t done properly.
Mistake #2: Don’t bother to fix things that break
The last thing any seller needs is for the buyers to notice on the pre-closing walk-through that the home isn’t in the same condition as when they made their offer. When things fall apart in a home about to be purchased, sellers must make the repairs. If the furnace fails, get a professional to fix it, and inform the buyers that the work was done. When you fail to maintain the home, the buyers may lose confidence in your integrity and the condition of the home and back out of the sale.
Mistake #3: Get lax about deadlines
Treat deadlines as sacrosanct. If you have three days to accept or reject the home inspection, make your decision within three days. If you’re selling, move out a few days early, so you can turn over the keys at closing.
Mistake #4: Refuse to negotiate any further
Once you’ve negotiated a price, it’s natural to calculate how much you’ll walk away with from the closing table. However, problems uncovered during inspections will have to be fixed. The appraisal may come in at a price below what the buyers offered to pay. Be prepared to negotiate with the buyers over these bottom-line-influencing issues.
Mistake #5: Hide liens from buyers
Did you neglect to mention that Uncle Sam has placed a tax lien on your home or you owe six months of homeowners association fees? The title search is going to turn up any liens filed on your house. To sell your house, you have to pay off the lien (or get the borrower to agree to pay it off). If you can do that with the sales proceeds, great. If not, the sale isn’t going to close.
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G.M. Filisko is an attorney and award-winning writer who wanted a successful closing on a Wisconsin property so bad that she probably made her agent rethink going into real estate. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.
April
26
2011
While you’d like to get the best price for your home, consider our six reasons to reduce your home price.
Home not selling? That could happen for a number of reasons you can’t control, like a unique home layout or having one of the few homes in the neighborhood without a garage. There is one factor you can control: your home price.
These six signs may be telling you it’s time to lower your price.
1. You’re drawing few lookers
You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think it’s overpriced and are waiting for the price to fall before viewing it.
2. You’re drawing lots of lookers but have no offers
If you’ve had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.
3. Your home’s been on the market longer than similar homes
Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 30 and you’re pushing 45, your price may be affecting buyer interest. When a home sits on the market, buyers can begin to wonder if there’s something wrong with it, which can delay a sale even further. At least consider lowering your asking price.
4. You have a deadline
If you’ve got to sell soon because of a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home, it’s how much money a buyer is willing to spend.
5. You can’t make upgrades
Maybe you’re plum out of cash and don’t have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from buyers is that your home isn’t as well-appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it’s time to accept that buyers expect to pay less for a home that doesn’t show as well as others.
6. The competition has changed
If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and what’s still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.
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More from HouseLogic
How to ready your home for sale at little cost (http://buyandsell.houselogic.com/articles/5-tips-prepare-your-home-sale/)
How to review offers on your home (http://buyandsell.houselogic.com/articles/6-tips-choosing-best-offer-your-home/)
Other web resources
More on setting the right price (http://public.findlaw.com/abaflg/flg-4-4a-1.html)
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G.M. Filisko is an attorney and award-winning writer who made strategic price reductions that led to the sale of a Wisconsin property. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.
March
11
2011
By Michelle Fradella-Barfuss, Broker – Pinnacle Real Estate Services
Home sellers have one goal—to sell their home as quickly as possible near or at the listing price. A home in move-in condition makes meeting this ideal easier.
Many of today’s prospective homebuyers have busy lifestyles and are looking for properties that don’t require a lot of work. Homeowners should be proactive by making needed repairs before putting their homes on the market.
Inspect both inside and outside the home. Take inventory of practical and aesthetic repairs. You may want to apply a fresh coat of paint on the walls, doors, and shutters. Clean the carpet and buff and polish wooden floors. Tighten and polish hardware. Repair cracks in sidewalks and driveways, and clean any stains on them. Replace missing or warped roofing. Clean or re-grout kitchen and bathrooms. Repair dripping faucets and drains or plumbing fixtures that aren’t operating.
Fix sticking doors and replace old locks and doorknobs. Replace burned-out bulbs and broken electrical sockets. Replace cracked windows and torn screens. Repair broken fencing and reseal the deck. Clean up stains on the tiles and countertops.
Some experts also recommend hiring a certified home inspector to thoroughly and impartially evaluate the property. (For a list of inspectors in your area, visit the American Society of Home Inspectors website, www.ashi.com, or ask your real estate professional for recommendations.) A standard report will review the condition of the home’s heating system, central air conditioning, plumbing and electrical systems, the roof, attic, walls, ceilings, floors, windows and doors, the foundation, basement and visible structure.
If the pre-inspection results in a checklist, have a real estate professional look over the report with you to help you prioritize the list of repairs.
Depending on your goals and budget, you may want to repair only items that could cause significant deterioration to the home, such as a leak. In addition, your local market conditions may dictate how extensive your repairs need to be. Let your budget and your real estate professional guide you.
However, be careful about fixing up too much. Sellers rarely recoup money on major remodeling projects, and you may want to save funds for your new home. Also, obtaining home improvement loans can adversely affect your ability to qualify for your next mortgage.
A home in good condition demonstrates pride of ownership. Taking the time to make small repairs to your home can go a long way in making sure that your home is presented to potential buyers in its best possible light. They also just might make the sale.
March
10
2011
By Michelle Fradella-Barfuss, Broker - Pinnacle Real Estate Services
Even if you’ve bought or sold a home before, this process can still be daunting. Let’s look at the many steps involved in selling a home and see how a real estate professional works to tie them all together.
Step 1: List your property with a real estate professional. Select someone who’s knowledgeable, listens carefully to identify your needs, and with whom you feel comfortable.
Step 2: Discuss how the real estate professional can assist you in finding your new home. If you have not identified a property to purchase, you’ll want to work with someone with an in-depth knowledge of the area to guide you.
Step 3: Establish price and time frame. Your listing agent will prepare a comparable market analysis (CMA), which compares your home with similar homes in the area that are currently listed, in contract or have sold within the last six months. Supply and demand, craftsmanship, amenities, condition and any special circumstances can also impact price. For instance, a relocation might necessitate a quick sale.
Step 4: Develop and implement a marketing strategy. It’s important to develop a plan that will expose your home to as many buyers as possible. This usually includes scheduling open houses, advertising in local newspapers and magazines and on the Internet, preparing property brochures, registering with a multiple listing service, exposing the listing to brokers’ and referral networks and installing a lawn sign.
Step 5: An offer is submitted. A buyer will make an offer through his agent. The buyer’s agent will present the offer to your representative, who will promptly relay it to you and help you evaluate it.
Step 6: The negotiation process begins and eventually an offer is accepted. The process of offer and counter-offer may go on until parties arrive at an acceptable contract. This step can go very quickly or take days, even weeks.
Step 7: Buyers submit a loan application and home inspections are scheduled. Most often, the loan approval is contingent upon a satisfactory appraisal and various inspections.
Step 8: The loan is approved. All parties breathe a sigh of relief and begin preparations for moving.
Step 9: The listing agent coordinates all activities required for closing. Your agent will funnel all the closing documents to the escrow agent. Papers include the deed, mortgage, numerous tax receipts, a Certificate of Occupancy and other documents. A final walk-through will also be scheduled.
Step 10: Finalize and close transaction. What you call this final real estate transaction depends on where you live and if the parties gather for the proceedings. The term settlement applies when a meeting takes place. In colloquial terms, many people refer to this as the closing. On the other hand, closing of escrow occurs without a meeting. When the escrow agent receives the paperwork and the funds pertaining to the sale of the property, the escrow is closed.
Step 11: Time to move!
If you are ready to sell your home, call Michelle Fradella-Barfuss with Pinnacle Real Estate Services – 601-569-0075 – and find out how Pinnacle’s “Strategic Marketing” can put your home in front of MORE buyers!
March
9
2011
By Michelle Fradella-Barfuss, Broker – Pinnacle Real Estate Services
It might not seem necessary to involve a real estate professional in a transaction where a buyer can deal directly with a builder. Think again! A buyer’s agent, a real estate professional representing the buyer’s interests, can guide you along the right path, smooth the rough places and help ensure you make a decision you can live with (and in) for many years.
Here’s how:
Just as a real estate professional calls on experience and knowledge of an area to help buyers locate pre-owned homes in a community, he or she can also direct buyers interested in newly built homes to developments and communities that match client specifications.
- An agent can suggest builders based on their reputation for delivering a high-quality product, responding quickly to issues, and being financially sound.
- An agent may be familiar with how a builder prices his products and where there may be room to negotiate price or upgrades.
- Without agent representation, you are one buyer purchasing only one home. But an agent can significantly impact a builder’s bottom line by providing a steady supply of customers. The agent’s leverage may work in your favor at the negotiating table. [Note: The builder may require your agent to accompany you on your first visit to the site. Check with the builder.]
- The lender approval process may go smoother if an agent schedules visits, accompanies you to lenders, and helps expedite required documents.
- When relocating to a new area, agents can be particularly valuable resources. In addition to providing local area information regarding schools, day care or elder care services, public transportation, proposed development, and so on, once construction is under way, an agent can periodically stop by the work site, supply you with progress reports, and photograph or videotape phases of the construction.
- An agent can assist you as you face hundreds of design choices and consider which upgrades could potentially add value to the home when it comes time to sell.
- An agent can accompany you at the site while you okay the plumbing and electrical locations prior to dry-walling, as well as on the walk-through or builder orientation.
By now, you should be convinced of a real estate professional’s value as you search for and purchase a newly built home. Still, here’s one more great reason to work with an agent—most often the builder pays the agent’s commission. You enjoy individual attention and support at no cost to you. What a great way to start life in a new home!
January
30
2011
Use the interactive window from Google’s Street View to see City Hall in Picayune, MS.
January
30
2011
A buyer’s first impression of a home is absolutely one of the most important things to consider when it comes to selling your home, especially in a difficult market where there is a lot of competition. Many people worry about curb appeal, how the lawn looks, how the front door looks . . . and those things are very important. BUT there is one thing that many sellers fail to consider when putting their house on the market. . . HOW DOES THE HOUSE SMELL?
I attended a Realtor Open House, where a local Picayune Realtor was showcasing the house to all Realtors in the area giving them the opportunity to know the house and possibly match it with one of their buyers. When I opened the door and started to walk in, the overpowering smell of cigarette smoke hit me like a ton of bricks. My lungs seized up, and my eyes started to water. And the problem wasn’t that a Realtor was smoking in the house – the problem was that the Sellers smoke in the house on a regular basis and the house oozes the smell out of every pore.
Buyers are very sensitive to the sights, sounds, and smells of a house they are considering buying. I can tell you from experience that if a house smells, the buyer isn’t going to spend much time looking at it not matter how beautiful it is, or how perfect it might be for them. Their thought is “How am I ever going to get that smell out?”
The problem is that sellers don’t always realize that their house smells. If you are around a smell long enough, your nose will adjust and it’s not so noticeable anymore. If you smoke, you don’t realize how the smell clings to your clothing, your carpeting, your walls. Pets can also emit odors (especially overloaded cat boxes, or wet dog bedding). And if the house sits empty, without any air conditioning circulating the air, or with moisture trapped in, it can smell like mildew, which is another smell that grabs my lungs like a vice grip.
When you put your home on the market, you have to start thinking about it as a marketable item, and not your home (after all, you’re not going to be living there once it sells). You have to look at your home from the eyes of a Buyer, and the nose of a Buyer too! If you smoke, air out the house, Febreeze the furniture, set up some air fresheners (the ones that plug in the wall work pretty well – and I recommend a cinnamon smell), and for Heaven’s sake – - – go outside to smoke every time until the house sells!
Now, if you have pets, be sure to keep cat boxes cleaned regularly (right before a house is shown is the best because chances are Fifi just came out of there and left a present for you), remove the dog bedding, and take the pets with you when you leave for the showing.
Happy homes appeal to Buyers, and a happy home is one that smells good, and invites you in.
January
25
2011
With the rental prices in Pearl River County, MS, averaging $800 or more per month, it’s amazing the amount of people that choose to rent instead of purchasing a home that would actually cost them less than the rent. Did you know that the monthly principle and interest payment on a $120,000 house is only $681.35 per month with a 30 year loan at 5.5% interest (not including taxes and insurance)?
Most rentals in Picayune, Carriere and other areas of Pearl River County, are at least $800/month or more (depending on condition, age, and location). To purchase your own home would be a savings! There are currently over 108 homes for sale in the $50,000-$120,000 price range in Pearl River and Hancock County.
Interest rates are still low, but they are starting to creep up. Now is the time to find that home you need, at an affordable price, before the market heats up again! Call Michelle Fradella at 601-569-0075 to find out what homes are available!
January
19
2011
You’ve made the decision to make one of the largest investments you’ll ever make in your life-buying your first home. You’re excited, but at the same time anxious. Some of the questions you may be asking are: Will I be able to afford the home of my dreams? Do I have enough money for a down payment? Can I get a home inspected before I make an offer?
The homebuying process can be overwhelming, but if you go into it prepared, your first purchase can be a good experience. Here are some things to consider before making the plunge.
- Getting a mortgage-Fear of being rejected for a home loan is one of the main concerns for first-time homebuyers. To lessen the stress, you may want to get pre-approved for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage when there are multiple offers for a specific home. The fact that your loan has already been approved is of great value to the seller: because it shortens the purchase process and there is less of a chance that the buyer will back out of the sale.
- Mortgage Payments-The costs involved in the purchase of a home can be overwhelming to first-time buyers. However, with the help of a real estate professional, you can calculate out how much they you be able to pay each month in mortgage payments, and from there, what prospective homes offer a feasible payment plan.
- Down-Payment-The down-payment amount varies depending on the value of the home you choose and your mortgage lender. And in some cases, first-time home buyers can purchase a home with no money down. Although it varies from state to state, most offer government-funded programs for first-time buyers that help people buy a home with no down-payment. Your real estate professional will be able to explain the different options available to you.
- Closing Costs- First-time buyers often forget to consider the closing costs when making an offer on a home. Paying closing fees of up to 10 percent of the home sale amount is not unusual. Add that to the down-payment and you’ll have quite a sum to raise before the final papers can be signed. However, a smart first-time buyer takes this into account before making an offer, and with some professional help, the costs can be estimated in advance.
- Making offers- Don’t feel pressured into making an offer on the first home you see. This is a common mistake of many first-time homebuyers. Make sure you view different homes to get a feel for the marketplace. When you do decide on a home to make a bid on, work with your real estate professional to get all of your questions answered first before making an offer. But don’t wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.
- Condition of the Home- Buying a “problem” home is another fear of first-timers. A home that needs major repairs can become a costly venture. And, unless the asking price is adjusted to reflect the hidden repairs needed, chances are the home is not worth as much as the seller is asking for it. To avoid unfortunate surprises, your real estate professional may advise you to hire a home inspector before making a serious offer. That way, you know what you are getting into.
Above all, remember that there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. Your real estate professional can be an invaluable asset in helping you make educated decisions so that your first-home purchase is a rewarding experience.
Michelle Fradella has extensive experience in working with First-Time Homebuyers. Call Michelle, with Pinnacle Real Estate Services, to start the home buying process. 601-569-0075
