By Lily Leung
5) Mortgage rates plummeted to record lows. It may be hard to believe that 30 years ago the rate for a 30-year fixed home loan was in the double digits, between 13 percent to almost 18 percent. Now? It's fallen below 4 percent, based on numbers from mortgage giant Freddie Mac. In fact, both the 30-year and 15-year rate in November dropped to their lowest levels in 41 years. Since then, neither have strayed too far from their all-time lows of 3.31 percent for the 30-year and 2.63 percent for the 15-year. Rates have consistently fallen throughout the year but received an extra downward push after the Federal Reserve said in September it would buy mortgage-backed securities to give the U.S. economy a lift. The plan is meant to keep long-term interest rates and mortgage rates down so more folks can buy homes and refinance their mortgages.
4) A $25 billion mortgage settlement pushes banks to help consumers. California Attorney General Kamala Harris and housing advocates called the deal between 49 states and five major lenders a historic deal that finally holds accountable the companies accused of wrongfully foreclosing on homes and failing to help property owners. Opponents of the deal, second only to the massive tobacco-industry deal struck in the 1990s, say the effort was too little, too late, and a raw deal for consumers because the relief amount, when broken down by harmed homeowner, was minor. Critics of the mortgage settlement also point out that many states, including California, used part of their money to fix their budgets. Not quite the intended use. Still, banks have provided help to homeowners through the settlement. On the flip side, about two-thirds of that aid has been in the form of short sales, which some housing advocates argue is less desirable than a loan modification or other means of keeping the borrower in the home.
3) Speaking of short sales, they now make up a larger share of the housing market than foreclosure resales. This happened because fewer homeowners have been defaulting on their mortgages because a slightly improving economy and other alternatives such as loan modifications and short sales, deals where homeowners can sell their homes for less than what they owe as long as the lender says OK. In November, mortgage defaults sank to a 6-year low and foreclosures decreased 35 percent from the same time a year ago. Also, the mortgage settlement appears to have contributed to somewhat of a short sale frenzy. Almost 40,000 of them were completed in the state through the settlement, from February to November. Short sales not only can benefit consumers, they also benefit lenders because they tend to be less costly to complete compared to foreclosures, which are lengthier to process.
2) Housing inventory is super tight. If you're a buyer, especially someone who's not an investor, you may be facing slim pickings out there. It's not just in your head. There are about 5,300 active listings in San Diego County, half of what we saw just a year ago and the lowest level in at least three years, according to the local Realtors' group. Inventory has consistently fallen for the last 15 months and may keep dropping if consumer demand remains strong and would-be sellers stay on the sidelines. Why aren't folks listing their homes? Many are underwater on their mortgages and are waiting for prices to rise more.
1) Home prices and sales have stayed hot through the fall and winter. The median price for a home sold in November was $358,000, almost 14 percent higher than a year ago and the number of transactions reached a seven-year high for a November. Keep in mind, that happened during a fall month, when homebuying typically cools down. Homebuying demand remains strong especially among the investor crowd. That, coupled with limited inventory, has pushed prices up. This is not-so-great news for potential buyers. And possibly good news for potential sellers.
Email me: lily.leung@utsandiego.com | Tweet me: @LilyShumLeung | Subscribe to this blog. | Or tryGoogle+.
© Copyright 2012 The San Diego Union-Tribune, LLC. An MLIM LLC Company. All rights reserved.
Thanks for Reading.
The Inman Team
Saturday, December 29, 2012
Friday, December 28, 2012
Home Prices Hit a Milestone
By Nick Timiraos | The Wall Street Journal
Home prices are on track to notch their first yearly gain since 2006, the strongest performance since the housing bust and a development that could accelerate the real-estate rebound even as the broader economy stutters.
The housing market's revival has had several false dawns in recent years, but a recovery that began in the spring has strengthened throughout the summer and fall. The latest confirmation came on Wednesday, when the Standard & Poor's/Case-Shiller 20-city index showed that prices rose by 4.3% from a year ago in October. Since January, prices are up 6.9% so far this year, the largest year-to-date gain since 2005. A separate index released Wednesday by Lender Processing Services Inc. showed that national home prices were up by 5.2% this year through October.
"The tide has changed," said Ivy Zelman, chief executive of research firm Zelman & Associates. "People feel it's OK to go back into residential real estate—it's no longer taboo—and that change in sentiment could have a very powerful effect."
Prices have risen this year amid stronger demand and sharp declines in the number of homes for sale. Banks slowed down foreclosures after abuses in processing paperwork surfaced two years ago. Since then, banks have become more aggressive at modifying loans or approving short sales, where the home is sold for less than the amount owed. The decline in new foreclosures has reduced the number of homes on the market that sell for large discounts.
Homeowners who normally would sell their properties have been holding them off the market, leaving inventories of previously owned homes at an 11-year low.
[Click here to check home loan rates in your area.]
Weak home construction in past years also is a factor and has left inventories of new homes for sale near the lowest levels in at least 50 years.
Demand, meanwhile, has picked up, first as investors scooped up perceived discounts on properties that can be rented out or resold quickly for a profit. Traditional buyers—those planning to live in the property and not flip it—also returned to the market, drawn by record-low mortgage rates, rising rents, and steady job gains that are increasing household formation.
"People got tired of living in mom and dad's basement, and rents have gotten much higher than your mortgage payment," said Glenn Kelman, chief executive of Redfin, a real-estate brokerage.
To be sure, housing markets are still fragile and face stiff headwinds. Mortgage lending standards are still strict, as lenders scrutinize appraisals and borrowers' income history to make bulletproof mortgages. Millions of borrowers owe more than their homes are worth or don't have enough equity to sell their home and make a down payment on a comparable property.
Still, sales of existing homes in November were up 14.5% from a year earlier, putting them on pace to reach their highest level since 2007. On Thursday, the Census Bureau is set to report new-home sales for November.
The upshot is that more buyers have been chasing fewer homes for sale, putting upward pressure on prices. "We've been seeing just crazy competition. Supply and demand has tipped in the seller's favor," said Nani Luculescu, a real-estate agent in Anaheim, Calif.
Last month, she represented a buyer who made the winning bid—among 52 offers—for a $320,000 four-bedroom home in Garden Grove, Calif., last month that sold for 10% more than the asking price.
Frustrated by a lack of inventory, others are instead purchasing new homes. Sonal Basu, a real-estate agent in San Francisco's East Bay, said in August she noticed that prospective buyers began camping out in tents at the new-home development where she lives in San Ramon, Calif. Some of the "campers," she says, are being paid $250 a day by buyers to wait in line for them.
Since August, every area new-home development has also had campers waiting in line to buy homes, she said. "A year and a half ago, nobody wanted to move out here because they felt it was the boonies," Ms. Basu said. "Now, they're not hesitating with this commute."
Prices are rising in part because the share of "distressed" homes—those selling out of foreclosure or in short sales—has dropped. While 18 of 20 cities posted year-over-year price gains in October, the largest increases have taken hold in some cities hit hard by the bust. In Phoenix, for example, prices have jumped by 21.7% over the past year. Prices gained by 10% in Detroit and 8.5% in Miami.
Economists say many such gains aren't sustainable and instead reflect prices rebounding from very low levels. "They're not going to continue at that pace," said Thomas Lawler, an independent housing economist in Leesburg, Va. He said he expected prices to go up next year, but at a slower pace than this year.
Also, some states where banks have struggled to follow court-administered foreclosure processes have large overhangs of mortgages where borrowers haven't made any payments in at least a year. Those homes could eventually hit the market, putting pressure on prices if demand isn't strong. Prices in New York and Chicago, which both have large overhangs, saw prices decline by 1.2% and 1.3% in October from one year ago.
A more immediate concern is how consumer confidence might fare if lawmakers don't reach a solution to avoid the "fiscal cliff," a raft of automatic tax increases and spending cuts set to take place in early 2013.
For now, low inventories of distressed properties are finally boosting the fortunes of the nation's home builders that have long been sidelined by competition from cheap bank-owned properties.
The stock prices of U.S. home builders, as measured by the Dow Jones home construction index, were up more than 75% year-to-date as investors are betting that the housing recovery could be sustainable. Others are plowing money into startups that invest in single-family homes as rentals. That, in turn, is ramping up construction hiring and spending on everything from lumber to cement to air-conditioning units.
http://finance.yahoo.com/news/home-prices-hit-milestone-020800329.html
Home prices are on track to notch their first yearly gain since 2006, the strongest performance since the housing bust and a development that could accelerate the real-estate rebound even as the broader economy stutters.
The housing market's revival has had several false dawns in recent years, but a recovery that began in the spring has strengthened throughout the summer and fall. The latest confirmation came on Wednesday, when the Standard & Poor's/Case-Shiller 20-city index showed that prices rose by 4.3% from a year ago in October. Since January, prices are up 6.9% so far this year, the largest year-to-date gain since 2005. A separate index released Wednesday by Lender Processing Services Inc. showed that national home prices were up by 5.2% this year through October.
"The tide has changed," said Ivy Zelman, chief executive of research firm Zelman & Associates. "People feel it's OK to go back into residential real estate—it's no longer taboo—and that change in sentiment could have a very powerful effect."
Prices have risen this year amid stronger demand and sharp declines in the number of homes for sale. Banks slowed down foreclosures after abuses in processing paperwork surfaced two years ago. Since then, banks have become more aggressive at modifying loans or approving short sales, where the home is sold for less than the amount owed. The decline in new foreclosures has reduced the number of homes on the market that sell for large discounts.
Homeowners who normally would sell their properties have been holding them off the market, leaving inventories of previously owned homes at an 11-year low.
[Click here to check home loan rates in your area.]
Weak home construction in past years also is a factor and has left inventories of new homes for sale near the lowest levels in at least 50 years.
Demand, meanwhile, has picked up, first as investors scooped up perceived discounts on properties that can be rented out or resold quickly for a profit. Traditional buyers—those planning to live in the property and not flip it—also returned to the market, drawn by record-low mortgage rates, rising rents, and steady job gains that are increasing household formation.
"People got tired of living in mom and dad's basement, and rents have gotten much higher than your mortgage payment," said Glenn Kelman, chief executive of Redfin, a real-estate brokerage.
To be sure, housing markets are still fragile and face stiff headwinds. Mortgage lending standards are still strict, as lenders scrutinize appraisals and borrowers' income history to make bulletproof mortgages. Millions of borrowers owe more than their homes are worth or don't have enough equity to sell their home and make a down payment on a comparable property.
Still, sales of existing homes in November were up 14.5% from a year earlier, putting them on pace to reach their highest level since 2007. On Thursday, the Census Bureau is set to report new-home sales for November.
The upshot is that more buyers have been chasing fewer homes for sale, putting upward pressure on prices. "We've been seeing just crazy competition. Supply and demand has tipped in the seller's favor," said Nani Luculescu, a real-estate agent in Anaheim, Calif.
Last month, she represented a buyer who made the winning bid—among 52 offers—for a $320,000 four-bedroom home in Garden Grove, Calif., last month that sold for 10% more than the asking price.
Frustrated by a lack of inventory, others are instead purchasing new homes. Sonal Basu, a real-estate agent in San Francisco's East Bay, said in August she noticed that prospective buyers began camping out in tents at the new-home development where she lives in San Ramon, Calif. Some of the "campers," she says, are being paid $250 a day by buyers to wait in line for them.
Since August, every area new-home development has also had campers waiting in line to buy homes, she said. "A year and a half ago, nobody wanted to move out here because they felt it was the boonies," Ms. Basu said. "Now, they're not hesitating with this commute."
Prices are rising in part because the share of "distressed" homes—those selling out of foreclosure or in short sales—has dropped. While 18 of 20 cities posted year-over-year price gains in October, the largest increases have taken hold in some cities hit hard by the bust. In Phoenix, for example, prices have jumped by 21.7% over the past year. Prices gained by 10% in Detroit and 8.5% in Miami.
Economists say many such gains aren't sustainable and instead reflect prices rebounding from very low levels. "They're not going to continue at that pace," said Thomas Lawler, an independent housing economist in Leesburg, Va. He said he expected prices to go up next year, but at a slower pace than this year.
Also, some states where banks have struggled to follow court-administered foreclosure processes have large overhangs of mortgages where borrowers haven't made any payments in at least a year. Those homes could eventually hit the market, putting pressure on prices if demand isn't strong. Prices in New York and Chicago, which both have large overhangs, saw prices decline by 1.2% and 1.3% in October from one year ago.
A more immediate concern is how consumer confidence might fare if lawmakers don't reach a solution to avoid the "fiscal cliff," a raft of automatic tax increases and spending cuts set to take place in early 2013.
For now, low inventories of distressed properties are finally boosting the fortunes of the nation's home builders that have long been sidelined by competition from cheap bank-owned properties.
The stock prices of U.S. home builders, as measured by the Dow Jones home construction index, were up more than 75% year-to-date as investors are betting that the housing recovery could be sustainable. Others are plowing money into startups that invest in single-family homes as rentals. That, in turn, is ramping up construction hiring and spending on everything from lumber to cement to air-conditioning units.
http://finance.yahoo.com/news/home-prices-hit-milestone-020800329.html
Tuesday, December 25, 2012
Merry Christmas & Happy Holidays
The Inman Team
Wishes You A Merry Christmas & Happy Holidays!
Thanks for Reading
Wishes You A Merry Christmas & Happy Holidays!
Thanks for Reading
Monday, December 24, 2012
Can you Afford a New Home?
Buying a new home can be the most exciting thing you've ever done and it can also be the scariest! You need to think things through and look at the big picture. Write things down, weight out everything so that you don't become just another statistic. Here are some tips to deciding if you can afford to buy a new home.
1. How much can you afford? You should talk to a lender to help you with this question. They will talk to you about your income and your debts and together you can decide how much you can afford and how much they will lend you.
2. Get pre-approved for a loan. Once you have talked to a lender about your finances and your credit worthiness they will give you a pre-approval letter. A pre-approval letter will give you the upper hand once you find a home that you want to purchase.
3. It is a good idea to keep your monthly costs under 28% of your monthly pre-tax income. This should include what your mortgage payment will be. Don't forget to include the real estate taxes and insurance if they are not going to be included in your monthly mortgage payment.
4. If you have any long term debts like a student loan, car payments etc, then you should keep your monthly costs under 36% of your pre-tax income. This includes your monthly housing expenses.
5. Decide what type of loan you will be applying for such as Conventional, VA or FHA loan.
6. Decide what type of mortgage you will be using. Are you going to use a fixed rate mortgage or an adjustable rate mortgage (ARM)? If you decide to use an adjustable rate mortgage you must think ahead and plan for when the rates go up, because your mortgage payment will go up when the rates go up, depending on the terms of your agreement.
7. Consider homes in various price ranges.
8. Think about your future plans, perhaps you should purchase a home at the top of your price range. This will give you more time to outgrow your home and will save you money in the long run.
9. Make a budget. Write down every little expense you have - it all matters.
10. Look at your expenses. What do you really need? What can you do away with?
11. Plan for emergencies. Do you have savings? What will you do if an emergency arises? Be prepared, you don't want to lose that beautiful home you saved so long for.
12. Don't over extend yourself.
If you are not ready to buy, decide what it is you need to do to get to where you need to be. Either way, start talking to your realtor today!
Whatever it is start handling it now. The sooner you take care of business, the sooner you will be in your new home. If you are ready to buy don't procrastinate, because you never know when the rates will go up or when you will lose out on your perfect home.
Thanks for Reading & Happy Holidays!
The Inman Team
1. How much can you afford? You should talk to a lender to help you with this question. They will talk to you about your income and your debts and together you can decide how much you can afford and how much they will lend you.
2. Get pre-approved for a loan. Once you have talked to a lender about your finances and your credit worthiness they will give you a pre-approval letter. A pre-approval letter will give you the upper hand once you find a home that you want to purchase.
3. It is a good idea to keep your monthly costs under 28% of your monthly pre-tax income. This should include what your mortgage payment will be. Don't forget to include the real estate taxes and insurance if they are not going to be included in your monthly mortgage payment.
4. If you have any long term debts like a student loan, car payments etc, then you should keep your monthly costs under 36% of your pre-tax income. This includes your monthly housing expenses.
5. Decide what type of loan you will be applying for such as Conventional, VA or FHA loan.
6. Decide what type of mortgage you will be using. Are you going to use a fixed rate mortgage or an adjustable rate mortgage (ARM)? If you decide to use an adjustable rate mortgage you must think ahead and plan for when the rates go up, because your mortgage payment will go up when the rates go up, depending on the terms of your agreement.
7. Consider homes in various price ranges.
8. Think about your future plans, perhaps you should purchase a home at the top of your price range. This will give you more time to outgrow your home and will save you money in the long run.
9. Make a budget. Write down every little expense you have - it all matters.
10. Look at your expenses. What do you really need? What can you do away with?
11. Plan for emergencies. Do you have savings? What will you do if an emergency arises? Be prepared, you don't want to lose that beautiful home you saved so long for.
12. Don't over extend yourself.
If you are not ready to buy, decide what it is you need to do to get to where you need to be. Either way, start talking to your realtor today!
Whatever it is start handling it now. The sooner you take care of business, the sooner you will be in your new home. If you are ready to buy don't procrastinate, because you never know when the rates will go up or when you will lose out on your perfect home.
Thanks for Reading & Happy Holidays!
The Inman Team
Sunday, December 23, 2012
The Most Common Mortgage Scams
Unfortunately, mortgage scams are very common. So exactly what can you do to protect yourself from one of these scams?
The first step in protecting yourself is education. Learn the types of scams that are out there and how to recognize them.
Here are a few of the most common mortgage scams:
1. Loan audit offers. Generally a salesperson will call a homeowner and say that they are going to be auditing their mortgage documents so that they can use the violations to force their lender to approve their loan modification. The scam is that they find violations a majority of the time. They charge the homeowners anywhere from $1000 to $5000 for their fee.
2. Money back guarantees. This scam involves promising the homeowner that they can guarantee them a loan modification. They will tell you to stop making your mortgage payments and do not communicate with your mortgage company. However, no one can guarantee you a loan modification or the promise that they can stop a foreclosure. Additionally, some people are aware of this scam so the scammers will tell you that you do not have to pay upfront but will wait until about the third meeting before they request a fee. Note: you should never pay a fee for loan modification assistance.
3. You are told to stop contacting your lender. The scam is they tell the homeowner not to communicate with their lender because they can get them a better deal. In addition, never trust someone that says they will talk to your lender on your behalf.
4. Government agency scam. The homeowner receives a call and the scammer says they represent the lender. The homeowners are told by the scammer that they are from a government agency and that they have information about a mortgage settlement. They typically receive a $500+ fee to "help the homeowner get their money from the settlement". They get a bank routing number from the homeowner to "facilitate the refund" and then drain their account.
5. The mass joinder scam. The scammer will send the homeowner a notice that they have been wronged by their mortgage company and that they may be eligible for restitution. They are then told to pay $2000 or more to participate in the lawsuit. Note: you should never have to pay to be a part of a class action lawsuit.
So what can you do if you think you have been the victim of a mortgage scam? You should report the scam immediately and notify your lender as well. Unfortunately, it may be too late to stop a foreclosure but you may be able to stop it from happening to someone else.
If you have any questions about mortgage scams you can always contact your realtor to get some solid advice. Your realtor will also be able to help you with who you should contact and what you should do next. Your realtor may also be able to help you avoid a mortgage scam if you contact them before you proceed with a questionable offer from a scammer.
Thanks for Reading & Happy Holidays!
The Inman Team
The first step in protecting yourself is education. Learn the types of scams that are out there and how to recognize them.
Here are a few of the most common mortgage scams:
1. Loan audit offers. Generally a salesperson will call a homeowner and say that they are going to be auditing their mortgage documents so that they can use the violations to force their lender to approve their loan modification. The scam is that they find violations a majority of the time. They charge the homeowners anywhere from $1000 to $5000 for their fee.
2. Money back guarantees. This scam involves promising the homeowner that they can guarantee them a loan modification. They will tell you to stop making your mortgage payments and do not communicate with your mortgage company. However, no one can guarantee you a loan modification or the promise that they can stop a foreclosure. Additionally, some people are aware of this scam so the scammers will tell you that you do not have to pay upfront but will wait until about the third meeting before they request a fee. Note: you should never pay a fee for loan modification assistance.
3. You are told to stop contacting your lender. The scam is they tell the homeowner not to communicate with their lender because they can get them a better deal. In addition, never trust someone that says they will talk to your lender on your behalf.
4. Government agency scam. The homeowner receives a call and the scammer says they represent the lender. The homeowners are told by the scammer that they are from a government agency and that they have information about a mortgage settlement. They typically receive a $500+ fee to "help the homeowner get their money from the settlement". They get a bank routing number from the homeowner to "facilitate the refund" and then drain their account.
5. The mass joinder scam. The scammer will send the homeowner a notice that they have been wronged by their mortgage company and that they may be eligible for restitution. They are then told to pay $2000 or more to participate in the lawsuit. Note: you should never have to pay to be a part of a class action lawsuit.
So what can you do if you think you have been the victim of a mortgage scam? You should report the scam immediately and notify your lender as well. Unfortunately, it may be too late to stop a foreclosure but you may be able to stop it from happening to someone else.
If you have any questions about mortgage scams you can always contact your realtor to get some solid advice. Your realtor will also be able to help you with who you should contact and what you should do next. Your realtor may also be able to help you avoid a mortgage scam if you contact them before you proceed with a questionable offer from a scammer.
Thanks for Reading & Happy Holidays!
The Inman Team
Saturday, December 22, 2012
Tricks Of The Trade From Professional Home Stagers
The Inman Team Tip of the Week:
When you are trying to sell your home, staging can be an invaluable tool. That is - if it is done right. An investment for a few hundred dollars or even a few thousand dollars can bring you huge returns. So that is reason enough to make that investment and have your home staged.
Home Staging is a way to help the buyers visualize what the home has to offer. You take it for granted because you live there. Staging helps to take away from your home looking like your home and helps a buyer visualize how it "could" look if it were their home. A staged home will sell at an average of 45 days versus an unstaged home that will sell at an average of 135 days.
Additionally, you will generally see an increase in the sales price anywhere from 5% to 25%.
Here are some tips and tricks you can use to properly stage your home.
1. Curb Appeal. This is the very first thing a buyer will see when they pull up to your home. This step is where the buyer decides , before they even see anything else, how they are going to feel about your home. So ask your realtor for their best ideas for enhancing your curb appeal.
2. Your Entry Hall Or Foyer. This is the second first impression the moment the buyer steps foot into your home. Rule of thumb: declutter, put away anything that does not need to be there and make sure that there is nothing blocking the path of entry. You want your house to have a good flow to it.
3. Fresh Flowers. Put fresh flowers in as many places as possible.
4. Declutter Your Entire House. Most people have too much stuff and this leaves a bad impression in the buyers mind. Your house will look too small from the beginning and your buyers will decide to look elsewhere. Go ahead and get a storage unit if you need to. Box up everything you absolutely don't have to have immediate access to. Remove some of the furniture if you need to. This will make your home look and feel bigger and will help the buyer to visualize their things in your home a little more easily.
5. Paint. A neutral coat of paint will help your home sell more quickly than just about any other measures you take.
6. Add A Few Accessories. Remove all the personal items from your bathroom and add a few accessories.
7. Clean, Clean, Clean. A house that is not clean says to the buyer that you do not care. They may take this as a sign that you did not keep up with the routine maintenance either. Therefore, if you do not have time to clean, hire a professional to do it for you. It will pay off once you get that higher offer.
8. Update. You should try to update everything you can. Perhaps some new countertops or maybe replace the cabinet doors. Sometimes all it takes is some new hardware. Look around and see what other inexpensive updates you can make.
9. Fix What Is Broken. It is very important that you fix everything that is broken. If you have a faucet that drips - fix it. What about that toilet that continually runs - fix it. Whatever it is go ahead and fix it. If you don't your buyers will use anything and everything they can to devaluate your home and you will constantly receive low ball offers.
10. Erase Your Personality. Your buyers must be able to picture themselves living in your home. They cannot do that if your personality is glaring at them around every turn. So remove your personal pictures, the 1950's decor that you love so much from your kitchen, remove all of your hobbies from sight, put away blow dryers, makeup, toothbrushes and don't leave your dirty clothes laying around etc. You get the picture.
Talk to your realtor about more ideas you can use to stage your home. Staging is a wonderful practice that will bring in much higher offers. So do whatever it takes to stage your home properly and you will reap the rewards later.
Thank you for Reading & Happy Holidays!
From,
The Inman Team
When you are trying to sell your home, staging can be an invaluable tool. That is - if it is done right. An investment for a few hundred dollars or even a few thousand dollars can bring you huge returns. So that is reason enough to make that investment and have your home staged.
Home Staging is a way to help the buyers visualize what the home has to offer. You take it for granted because you live there. Staging helps to take away from your home looking like your home and helps a buyer visualize how it "could" look if it were their home. A staged home will sell at an average of 45 days versus an unstaged home that will sell at an average of 135 days.
Additionally, you will generally see an increase in the sales price anywhere from 5% to 25%.
Here are some tips and tricks you can use to properly stage your home.
1. Curb Appeal. This is the very first thing a buyer will see when they pull up to your home. This step is where the buyer decides , before they even see anything else, how they are going to feel about your home. So ask your realtor for their best ideas for enhancing your curb appeal.
2. Your Entry Hall Or Foyer. This is the second first impression the moment the buyer steps foot into your home. Rule of thumb: declutter, put away anything that does not need to be there and make sure that there is nothing blocking the path of entry. You want your house to have a good flow to it.
3. Fresh Flowers. Put fresh flowers in as many places as possible.
4. Declutter Your Entire House. Most people have too much stuff and this leaves a bad impression in the buyers mind. Your house will look too small from the beginning and your buyers will decide to look elsewhere. Go ahead and get a storage unit if you need to. Box up everything you absolutely don't have to have immediate access to. Remove some of the furniture if you need to. This will make your home look and feel bigger and will help the buyer to visualize their things in your home a little more easily.
5. Paint. A neutral coat of paint will help your home sell more quickly than just about any other measures you take.
6. Add A Few Accessories. Remove all the personal items from your bathroom and add a few accessories.
7. Clean, Clean, Clean. A house that is not clean says to the buyer that you do not care. They may take this as a sign that you did not keep up with the routine maintenance either. Therefore, if you do not have time to clean, hire a professional to do it for you. It will pay off once you get that higher offer.
8. Update. You should try to update everything you can. Perhaps some new countertops or maybe replace the cabinet doors. Sometimes all it takes is some new hardware. Look around and see what other inexpensive updates you can make.
9. Fix What Is Broken. It is very important that you fix everything that is broken. If you have a faucet that drips - fix it. What about that toilet that continually runs - fix it. Whatever it is go ahead and fix it. If you don't your buyers will use anything and everything they can to devaluate your home and you will constantly receive low ball offers.
10. Erase Your Personality. Your buyers must be able to picture themselves living in your home. They cannot do that if your personality is glaring at them around every turn. So remove your personal pictures, the 1950's decor that you love so much from your kitchen, remove all of your hobbies from sight, put away blow dryers, makeup, toothbrushes and don't leave your dirty clothes laying around etc. You get the picture.
Talk to your realtor about more ideas you can use to stage your home. Staging is a wonderful practice that will bring in much higher offers. So do whatever it takes to stage your home properly and you will reap the rewards later.
Thank you for Reading & Happy Holidays!
From,
The Inman Team
Thursday, December 20, 2012
I Got an Offer, Now What?
You just got an offer on your home. Now What? How do you know if you should accept that offer or hold out for more money? There are several things to consider once you receive an offer on your home but don't let that turn into undue stress. Here are some questions to ask yourself that will help you decide if you should accept that offer you just received or not.
1. Relax, take a deep breath and don't let your emotions get in the way of making the right decision.
2. Is the buyer pre-qualified or pre-approved? You may want to request a copy of the pre-approval letter before making your decision. You don't want to take your home off the market only to find out later that there was never any way that buyer would have ever qualified to make that purchase. You have then just wasted precious time and possibly lost a "qualified" buyer.
3. How quickly do you have to move? If you have an urgent situation where you have to move quickly, such as a job change or perhaps a foreclosure, you may want to consider an offer that is less than what you were expecting. Remember, something is better than nothing or even worse - a total loss such as in a foreclosure. Take the offer, make the deal, get it done and move on with your life.
4. How much do you still owe on your home? Everyone wants to make a profit on their home. When you are making your decision about whether or not to accept that offer, remember that you will also incur closing costs so make sure you take that into consideration as well.
5. Is your home underwater - do you owe more than it is worth? If this is the case, then this may not be the right time to sell. You can consult with your real estate agent to see what options may be available to you.
6. Have you tested the waters? How long has your home been on the market? How many people have actually viewed your home and what type of feedback have you gotten? How many offers have you received? If your home has been on the market for a while and you have not gotten many offers, you may want to consider lowering the price; but be sure to consider the market value in your area and the condition of your home first. Your agent can help you determine the right thing to do here.
7. Ask yourself - "Is This A Reasonable Offer?". Many buyers will attempt to lowball you because they know that it is a strong buyers market. Perhaps they know that your home has been on the market for a while. Don't let them get the better of you. Think about the offer at hand and determine if it is "reasonable" or not. You have to consider your situation - are you in a rush to sell or do you have time to sit back and wait for that perfect offer? Remember, you can always counteroffer and have your agent work the deal to its fullest potential.
The bottom line is you must accept an offer that will work for you and the buyer. You can negotiate to make the deal work in your favor. Let them know that you will accept a lower offer in exchange for a faster closing date. There are many ways to negotiate the "deal" to get it done. Your agent is an expert at this and can be your best resource for getting you top dollar for your home!
Thanks for Reading & Happy Holidays!
The Inman Team
1. Relax, take a deep breath and don't let your emotions get in the way of making the right decision.
2. Is the buyer pre-qualified or pre-approved? You may want to request a copy of the pre-approval letter before making your decision. You don't want to take your home off the market only to find out later that there was never any way that buyer would have ever qualified to make that purchase. You have then just wasted precious time and possibly lost a "qualified" buyer.
3. How quickly do you have to move? If you have an urgent situation where you have to move quickly, such as a job change or perhaps a foreclosure, you may want to consider an offer that is less than what you were expecting. Remember, something is better than nothing or even worse - a total loss such as in a foreclosure. Take the offer, make the deal, get it done and move on with your life.
4. How much do you still owe on your home? Everyone wants to make a profit on their home. When you are making your decision about whether or not to accept that offer, remember that you will also incur closing costs so make sure you take that into consideration as well.
5. Is your home underwater - do you owe more than it is worth? If this is the case, then this may not be the right time to sell. You can consult with your real estate agent to see what options may be available to you.
6. Have you tested the waters? How long has your home been on the market? How many people have actually viewed your home and what type of feedback have you gotten? How many offers have you received? If your home has been on the market for a while and you have not gotten many offers, you may want to consider lowering the price; but be sure to consider the market value in your area and the condition of your home first. Your agent can help you determine the right thing to do here.
7. Ask yourself - "Is This A Reasonable Offer?". Many buyers will attempt to lowball you because they know that it is a strong buyers market. Perhaps they know that your home has been on the market for a while. Don't let them get the better of you. Think about the offer at hand and determine if it is "reasonable" or not. You have to consider your situation - are you in a rush to sell or do you have time to sit back and wait for that perfect offer? Remember, you can always counteroffer and have your agent work the deal to its fullest potential.
The bottom line is you must accept an offer that will work for you and the buyer. You can negotiate to make the deal work in your favor. Let them know that you will accept a lower offer in exchange for a faster closing date. There are many ways to negotiate the "deal" to get it done. Your agent is an expert at this and can be your best resource for getting you top dollar for your home!
Thanks for Reading & Happy Holidays!
The Inman Team
Wednesday, December 19, 2012
How to Increase your Referrals
The Inman Team Tip:
Referrals are extremely important to your business, without them how will you expand. People giving the referral will only do so, if they had an outstanding experience with your business, and if they completely trust you. Read this article below...
How to Increase your Referrals:
Referrals are highly qualified leads; after all the person providing you with the referral knows you and the other person. While there are some dos and don'ts, the key to getting referrals is to simply ask, ask often, ask regularly and to systematically keep track of it all.
Here are the KEY Components to Getting Referrals
1. Avoid the "Anyone" Trap. When asking for a referral, don't say "Is there anyone else...". This is a closed ended question to which the person is likely to say No -they do not know of "anyone" else.
2. Don't Go the "Want Services" Route. Asking for who "may want good service" may result in the other person trying to think of somebody who has been asking for your style of handling business. And of course they may not know of anyone.
3. Ask Specifically for "Who". When asking for a referral, always ask for a specific "who". This will get you a highly qualified lead and most often positive results. For Example: Who do you know who is currently looking to buy a home? Or, Can you tell me who in your family is looking to buy a home? And with today's market, you may want to ask, Who do you know that needs help selling or re-financing their home?
4. Ask Regularly. If you only occasionally ask for referrals, you will get limited referrals. Asking regularly will get you many more valuable referrals.
5. Document Referrals Immediately. Worse than not getting a referral is letting a referral slip away.
Research reveals that you should manage your referrals like you manage your closings. Keep in contact, provide valuable information, and say thank you.
Thanks for Reading & Happy Holidays!
The Inman Team
Referrals are extremely important to your business, without them how will you expand. People giving the referral will only do so, if they had an outstanding experience with your business, and if they completely trust you. Read this article below...
How to Increase your Referrals:
Referrals are highly qualified leads; after all the person providing you with the referral knows you and the other person. While there are some dos and don'ts, the key to getting referrals is to simply ask, ask often, ask regularly and to systematically keep track of it all.
Here are the KEY Components to Getting Referrals
1. Avoid the "Anyone" Trap. When asking for a referral, don't say "Is there anyone else...". This is a closed ended question to which the person is likely to say No -they do not know of "anyone" else.
2. Don't Go the "Want Services" Route. Asking for who "may want good service" may result in the other person trying to think of somebody who has been asking for your style of handling business. And of course they may not know of anyone.
3. Ask Specifically for "Who". When asking for a referral, always ask for a specific "who". This will get you a highly qualified lead and most often positive results. For Example: Who do you know who is currently looking to buy a home? Or, Can you tell me who in your family is looking to buy a home? And with today's market, you may want to ask, Who do you know that needs help selling or re-financing their home?
4. Ask Regularly. If you only occasionally ask for referrals, you will get limited referrals. Asking regularly will get you many more valuable referrals.
5. Document Referrals Immediately. Worse than not getting a referral is letting a referral slip away.
Research reveals that you should manage your referrals like you manage your closings. Keep in contact, provide valuable information, and say thank you.
Thanks for Reading & Happy Holidays!
The Inman Team
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