Wednesday, May 11, 2011

Short Sales

Short sales are properties for sale on the market that the seller owes more to the lender than the propoerty is valued for at the current market value.  The seller loan is referred to as upsidedown.  The property has a 2 part negotiation involved on an offer.

(1) The seller aaccepts the sale.
(2) The lender accepts the sale.

Otherwise on offer the sale is similar to a traditional sale except longer 60 to 90 days or even more.  The more lenders the more step(2) partners involved to accept the sales price & terms.

Lika a tradional sale the seller can accept, reject or renegotiate the offer.  Then the process is repeated by each lender tharough a short sales negotiator assigned by each lender.  Besides the other steps on the buyers side of a traditional sales extra appraisals or breoker price opinions are on going to evaluate the market value of the property and negotiate the short fall with the sellers.  

Will a buyer get a better buy with a short sale is dependent on the lenders acceptance of the terms & price on each transaction.  As with every transaction the seller and the seller's lender(that owns more than 100% of the value of the property) must accept the final terms of the price & negotiations for the property to proceed and close with the buyer meeting all of the usual pre-approval process steps of a traditional sale.

Buyers should consult with both a realtor a competent attorney that is knowledgable working short sales transactions to protect there interests as every short sale may not be accepted at the original seller accepted offer price and terms.

Home inspections: pre or post offer

Home inspections are important.  They tell you how the house works and give you visible details of the property condition.  Depending on the stat you live in it's customary for the buyer or the seller to do the inspection.  However, if your the buyer you want to be present to ask how things work and to make sure that everything that needs to be in the report makes it to the written report itself.

Inspections help you determine if (1) you still want the property, (2) if you want to renegotiate the offer, or (3) if you don't want to renegotiate and move on.  It's better to spend a small amount up front on an inspection than a large amount later because you skip this smaller cost step that you may regret later.

On note of caution: get a licensed inspector or the terms of your contract and state law may require a licensed qualified inspector so you can renegotiate an offer.

Friday, May 6, 2011

Empty vs staged homes.

What sellers better an empty home or a staged home.   The answer is dependent on the house & the staging materials.  Soome homes seller faster empty if they are small others show off better with a staging. 

Realtor vs For sale by owner

Can you sell your home yourself.   The answer is maybe.  But it takes time, patience, and the ability to stay non emotional.

Consider having a professionally trained Realtor assist you in the process.  We know the how to get beyond the emotions to sell your home and help you to meet the goal of getting into your new home.  Realtors follow a strict code of ethics. 

Should I spend money to sell my house.

This is the biggest decision that every home owner must face.  I suggest getting through the 3 C's  first: clean, clutter & color neutralizing and freshening up. If you need help doing this or haven;'t read that page go to  my blog page:  http://worcesterrealtywithmhb.blogspot.com/2011/05/3-cs-of-staging-home-clean-clutter.html.

Now list all the repairs your house needs if you were to stay.  You probably have been mentally doing this as you cleaned each room.  Some house will need a major or minor repair of certain items.  Safety, heating, and habitability issues should always be addressed first because these items can keep your home form selling fast or eliminate large groups of buyers. If one item will effect other it's condition then that item needs to be repaired first.  Example fix the roof before you need to fix the cceilings and the walls paint plaster and possibly need to treat mold. 

Next talk to a professional Realtor on the items that will bring you the most return for your dollar.  Rememeber every house is different.   Some items are cost effective to fix because ever other house has it in the area others just aren't going to give you the return for your dollar. 

Do houses that are in move in ready seller faster.  The answer is sometime.  A combination of condition, price, the current market conditions, & marketing all will influence how fast a house sells.

The garage, unfinshed attic or basement.

Every house has a catch all.  I'm sure you know the area or areas I'm referring to right now.  It's the place that everything gravitates for when it no longer has an immediate use for the items that you can't use to day but will use someday. 

Surprise!  Someday may never come.  Today's the day to decide what to do with all those things.  If you don't know where to start then refer to the 3 C's in my blog for how to get started dividing & conquering this area.  http://worcesterrealtywithmhb.blogspot.com/2011/05/3-cs-of-staging-home-clean-clutter.html

The bathroom needs to shine.

Make sure your bathroom shines.  Bathrooms are the second most demanded room for upgrades in homes.

Get rid off all rugs and toilet seat covers. Close the toilet lid. They date the house and can be a sourse of odors and contaminants.  Keep the countertop clean with minimal clutter. Store extra items in linen closet or a over toilet cabinet or the medicine cabinet.

Take all medicines (& other valuable) with you when you leave.  Don't iinvite thiefs.  While most people looking at your house are true buyers, a few people maybe looking at your house for items to take with them.

Clean the shower or tub after every use.  Lime stains, toothpaste & water puddles, empty toilet paper rolls, and  extra reading material all need to be wiped up. Laudry and trash needs to be disposed of out of site in the exterior trash can or at the washer more frequently to avoid clutter in the bath.

Put out a fresh set of towel and roll of toilet paper to make the bath show off and shine.

Pets, carpets, & flowers vs allergies.

I love my pets but pets can stop your home from selling.

Allergies are a real factor for many buyers.   Pets, carpets, and many floral fragrances may trigger allergies.  Be aware that your house maybe over looked if you don't remove or minimize allergies items of buyers.

Consider relocating your pets or with your pets if possible.  Consider a extra cleaning measures and removing all signs you have a pet like pet food, bowls, toys, treats, dog houses, signage etc. 

If  you have hardwoods in good shape consider removing the carpets or rugs and refinish if necessary or if the budget allows.

If you absolutely can't eliminate the allergy at the time of showing maybe a concession or offering professional cleaning prior to closing may interest a buyer that would otherwise by pass your home.

Finding a home for all items when your house is for sale.

The hardest part of living in your home while it is for sale is to find a home for all items while your house is for sale.  Consider assigning a person to a room or to there bedroom and areas of other rooms they use frequently.  If each person puts items back to the assigned home then at the time of a showing call all you have to do is grab a few thing to take with you and leave. 

Remember even a few minutes delay can mean the difference between your home being shown to a buyer under a time constraint to buy and another house that can be shown now.  Don't loose buyers because your house isn't available to show on every call. 

Your competition maybe be a vacant house or staged home that isn't occupied that can be seen now.  People commonly stop when they find the house that meets there needs if they are relocating in a hurry to a new area because they have so much to do in so little time.  Don't be your house stumbling block to sell be your inability to keep it showing ready.

The family room maybe the hardest room to keep staged and showing ready.

Since the family room is the place people relax and gather it tends to collect the most clutter.  To eliminate clutter consider minimizing the number of surfaces that collect clutter,

Consider floor lamps and wall or ceiling fixture use .  Try to eliminate end table and coffee tables that encourage people to drop and clutter up the room with books, newspapers, magazines, food & beverage containers.  Coffee & end tables also take up more space making a room look smaller.    If you need storage consider a bench or window type seating that is dual purpose for clutter storage as well as seating. 

If you have both a living room & a family room consider using only one during the time your home is for sale to make it only the one room that needs to be picked up at the end of the day or at the time of a showing.


   

Bedrooms: keep it simple

A bed with plain bedding, a bureau or to and a storage closet are all you may need.  Less is more.  If you have children a desk for studying, book case, toy or storage box will help hide the day to day things they will need for school & play. 

Give everything a home or try to make it a game to see who can do this with out reminding.  Small rewards like show gets to pick what show to watch on TV can be the reward or a small incentive or points toward a large goal or present can also help motivate kids (and adults) to help pick things up. 

Consider a portable hampers to hid extra laundry or debris in kids rooms also.  some are quire cute and shaped like animals or basketball hoops that encourage kids to pickup while they play.

Dining Room staging

The dining room is a place to eat.  A table & chair that allow for walking freely maybe all you need.  Limit the number of hutches to one.  Store away off site extra leaves & chairs.  Less is more.

If there is a chandler or effixed mirror it should be remaining with the property other wise remove it. Ptherwise you will be surprised how much a buyer will think a $50 fixture is worth to replace.
Remember if your taking the mirror to paint behind it.

What should be in a kitchen thats for sale

Keep it simple. 

The appliances should be clean & clutter free.   Box up the magnets and move the photos to a scrap box or memory box so the children's memories can move with you for later enjoyment.  Explain this to the kids they will understand & help you set up a scrap book for these items.

The counter should always be cleared.  All appliances need to be put away unless the counter is there"home".

Dishes should always be washed & put into the dishwasher or put away.

Groceries immediately should be shelved.

The table should be clean with no or one clutter free container and chairs should be all empty & pushed in to make the walkway clear.  Extra leaves should be removed if not in use to make the room bigger. 

Kids toys & books or computers need to be returned to the users desk or room storage box, bookcase, or closed container that keeps clutter invisible.

Coats and clothing needs to be stored in closets, in the laundry, or folded & put away if clean.

Watch out for strong cooking aromas.  Some are good & some are offensive.  When in doubt use a odor eliminating spray.  No candles please;  these are a fire hazard for people that bump them in inadvertently and should never be unattended for even a moment.

Paint and color: get a big return for a low cost.

Touching up the paint or freshening up a room says a lot to a buyer.  Stay neutral and bright or white.  It says the seller cares & has maintained the home.  It says "I don't need work".  It says "move in now and change me as necessary down the road".

You want the buyer to be able to mentally visualize their things your your home.  So the less for them to see of your things other than how large items can be placed the better.

Pre listing decluttering: The low or no cost money makers

Cleaning and decluttering in most cases are low or no cost items as you already have the items. 

After all if you check you will find you or someone you know has extra cleaning supplies they will never use and will be happy to see used.    Just remember if you borrow a cleaning supply return it immediately prior to selling your home.

The 3 C's of Staging a Home: Clean, Clutter, & Color

Start by taking before pictures.

Making your home show to its best is easy if you remember the 3 C's.  You should complete as much prep work on the 3 C's prior to showing your home for the first time.  Did you say why? Because you may only get one true first impression and you want to make that a positive impression or it may or will be the last chance you have with your best possible buyer.

Start one area or room at a time.  If you need to do half of the of the area or room at a time. Take everything out if possible.  Treat each closet as a room - remember less is more.  Pack it away if its absolutely not needed.  Store items that maybe needed in boxes labeled with need it next date if they need to be stored closer to the last items in a storage area to get to easily.

I'm starting with clutter as it's easier to do the other 2 C's after all the extra things you don't need are gone of site.  Everything your keeping should be dusted, washed, or cleaned as soon as you deide its not junk.  Start packing prior to listing your home.  Only there should be 5 types of items.  (1) Junk or trash should be through this out as you come across it.   You'll be amazed at how good you'll feel with this stuff gone.  (2) Good stuff to return, sell at a yard sale or online, or give to someone that loves it.  Return the stuff by mail or leave a message & drop it off if necessary at the owners home.  If they wanted it they would have come and gotten it before.  Your selling your home your not a storage area.   If they don't want it when you return it it's no longer your problem.  Schedule a yard sale at your home or at a relatives or at the flea market.  Have a plan if it doesn't sell to store it off site but never to return once its out.   If your selling it on eBay or online elsewhere photo it and store it at the entry of the off site storage bin you need for the stuff your taking with you but don't need now so you can get to it quickly when its sold.  Give your self a deadline to sell items you don't need or give them away for free or trash them.  (3) Box up the extra off season items, personal items that you want to take with you that are only making more dusting space or taking up closet space, garage space, or other living areas.  Less items and extra unneeded furniture in rooms, closets, garages, attics, kitchen cabinets, on tables makes your house look smaller.  Less is more in the eyes of the buyer.   Less is easier to clean and make showing ready for a buyer.  (4) Things you need to live everyday that you will use to stage your home to its best advantage.  (5) Finally, things you need that need to be removed or properly stored prior to buyer visits: pets, signs of pets, cleaning supplies.  The car trunk or back seat may become item 5's temporary home.

Once the clutters gone. You have less to clean.  (See why this isn't first).  If its gone you don't have to move it multiple times.  Since you dusted when it then all you need to do is the room its self. Now sweep or vacuum the room and wash the glass windows and effixed surfaces.  Let the light in.  Change any bulbs that need to be changed.  If its dark people think your hiding something.  Light and bright sell.

Color is next.  Walls should be touched up or made preferrably neutral.  Dust everything prior to returnign it to the area.

Now you can return the items that were removed & dusted.  Take a good look at the curtains. sofa and chairs, bedding. Is it clean or should it be recovered or replaced.  Or maybe it's something that should have been stored to go with you, sold, or let go to a better place.  Date furniture dates even a new house.  Would you want to be the lovely clean home thats easy to show or the house with the ugly sofa no one can see past.

Keep telling your self less is more. 

Now take your after picture.  Compare them to your before picture.  Remove anything that doesn't make your home show to its best.  Sit back & enjoy before you move on to the next area.  Only do one area at a time.

The Entry (a/k/a get rid of the drop zone at the door)

So your ready to see your "new home".  What do you want to see (1) a clean clear hardwood floor with a table with floors leading to an inviting home or (2) piles of things to trip over. 

Remember your trying to sell your house.   If your never moving this maybe fine but you want to show your home at its best.

Get rid of the clutter at or the buyer may turn & run. 

Coats belong in closets, shoes in the bottom of closets or at the very least in a contained closed trunk, toys, & school supplies belong in toy boxes in the rooms of the users or at the users desk.    Give everything piece of possible clutter a "home" of its own to be returned to after use.  If you do this it will be easier to prepare for a short notice buyer visit.

Make your Front Door & stoop say come in

Your front door says a lot about whether a buyer is welcome. 

Your steps should be trip free as possible with hand rails as needed.  Missing hand rails eliminate buyers that need them.  If the buyer can't get in the door the showing can stop before it starts.

Your welcome mat should say "Welcome" and clean.

The Door should look clean & freshly painted or not needing touch ups.  Hardware should be clean, working, & shined.  Consider changing the lock if you need multiple keys or the locks are old and make the house look dated & in need of work prior to getting inside.  Nothing is worse than a door that the key needs juggling to open to put the question in the mind of the buyer of what else am I going to have to fix even before they walk in the door.  Be cautious with color as some colors offend potential buyers: white, black & neutral are best.

Limit decorations to one mat & one item on the door such as a knocker, a wreath,  and one decorative mat.

I love my dogs but people with allergies don't want to see "wipe your paws".  Pack the pet mat away for your new home.

Curb appeal

Make people want to see what inside by showing the outside at its best.

In the spring, summer & fall.  Make sure the grass is cut, trees & shrubs are trimmed and all toys, clutter, & debris are out of site.  On trash day make sure the trash is organized & containers are removed as soon as possible & invisible. 

In the winter make sure your walkway, steps, & drive are shoveled.

Driveways at scheduled showing should be empty for the buyer to find parking.  Especially in inclement weather.

Thursday, May 5, 2011

Ugly on the outside....then show the inside first

Nothing says that the first photos has to be of the outside if the inside or contents are what show the product or home off to its best advantage.  Show your best photo first. 

Almost everything has a positive place to make people want to see more.  Don't know where to start.  Start snapping photos.  Then ask someone else or a group of people you trust to preview them and tell you what would make them want to see more.

First impressions comments help target market less than photo perfect

Does the photo you see first say "wow" in your mind.  If not then what would you want to change to make it say "wow".  Maybe a catch phase like "don't judge a book by its cover" is would get you to see more.  If the product your selling isn't picture perfect then maybe you want to sell it as a "fixer upper" or "help make me shine with a little elbow grease"  to attract the right group of buyers.

First impressions count

Ever wonder what gets someone to look at a house.  It's usually that first impression.  That first photo is either a hit or a miss.   You want to leave the viewer wanting more. Show to little and you miss the buyer.  Show to much and the buyer has nothing else to see.   The remarks should also make you want more.