Category Archives: Tips

4 Questions to Ask Before Buying a Foreclosure

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“Foreclosures can offer big bargains, but buyers need to be careful that they don’t get over their heads in purchasing a home that may need more repairs than they bargained for.

Foreclosures are usually sold as-is, and homes that are left vacant standing too long can have a lot of maintenance problems.”

REALTORMag suggest buyers consider the following questions:

1. How long has the home been vacant? Be cautious of a foreclosed home that has stood vacant for more than a few weeks or had its utilities shut off a long time. Marvin Goldstein, a home inspector for many foreclosed properties, says a home can deteriorate quickly when heating, cooling, electricity, and running water have been turned off for awhile.

2. How old is the home? Goldstein says that homes that are more than 50 years old may have a failing plumbing system or inadequate electrical wiring.

3. How does the home look? Are there broken windows, gutters hanging down, or damaged siding? “Trust your instincts. If the house looks bad from the outside, it’s probably worse than you think,” Goldstein told The Oklahoman.

4. Is there anything missing? Sometimes former owners remove anything of value from the home, such as built-in light fixtures, bathroom tile, water heaters, air-conditioning units, and hardwoods, says Bill Jacques, president-elect of the American Society of Home Inspectors.

Housing experts encourage buyers to get a home inspector to look at the property, even if it is sold as-is, so that home buyers know any repairs needed and cost estimates before they purchase the home.

“Buying a bank-owned home gives you the opportunity to enter the market at a very low price level,” says Dorcas Helfant, a past president of the National Association of REALTORS®. “You can find terrific values among foreclosures, especially if they’re not in too bad shape. But, remember, these houses are discounted for a reason.”

Top 5 Reasons to Buy a Home in 2012

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Make the American Dream of home ownership a reality in 2012. Here are the Top 5 Reasons to purchase a home in 2012 via QuickenLoans.com…

  • Appreciation – Buying a home now (at the current rates) can almost ensure your home’s appreciation in the future.  Mortgage rates are near historic lows and home prices in many parts of the country are down.  This is the perfect recipe for home appreciation.  Additionally, many foreclosed homes are available for a fraction of the original cost.  This can translate to a higher profit if you decide to sell once the market rebounds.

  • Property Tax Deductions – For income tax purposes, real estate property taxes for a vacation home and first home are fully deductible.  The IRS (Publication 530) provides detailed tax information for first-time buyers that may answer many questions about what deductions homeowners are eligible for.

  • Preferential Tax Treatment – If you own your home for more than a year and receive more profit than the allowable exclusion after the sale of your home, the profit will be considered a capital asset.  Capital assets are given preferential tax treatment.

  • Equity Building – Many factors such as credit qualification, loan flexibility, and annual percentage rate (APR) contribute to the final decision of what type of mortgage loan best fits your goals.  Yet, a new trend being used by some homeowners is to actually add money to their monthly payment to decrease the principal balance of their loans at a much faster pace.  This trend is called equity building.  Equity builders usually select a home loan with a lower interest rate (and a shorter term loan such as a 15-year fixed) to help build equity faster.  This rapid payment process allows borrowers to:

  • Pay off the principal balance faster
  • Lock in near-record-low interest rates
  • Shorten the length of their home loan
  • Own their home faster
  • Pay substantially less mortgage interest

Equity building is a beneficial trend that’s becoming more and more popular with fiscally responsible homeowners.  Also, home equity is the largest single source of household wealth for most Americans.

  • Pride – Homeownership offers many benefits to many different types of people.  For some homeowners, playing your music as loud as you want and painting the walls the color of your choice is a perk.  For me, homeownership will permit me to build an NBA regulation size basketball court on my own property.  For my coworker Joel Jarvi, home ownership may allow him to build the indoor slide of his dreams.  No matter who you are, homeownership is a purchase, commitment, and journey that’s sure to bring you pride.

Furthermore, when the uncertainty surrounding the housing market fades and the market rebounds, homeownership may in fact transform that pride to profit through a home sale.

 

New Year New Home?

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Via ColdwellBanker.com

It’s officially 2012 so let me start by wishing you a happy new year.  In early January, many of us are planning and setting goals for everything we want to do and achieve in the year to come.  While many people think of spring as the primetime home buying season, the winter months often offer an even greater selection, and the opportunity to settle into the new home before warmer months arrive.  If buying a house is on your “to do” list this year, now is also the time to begin preparing.

I remember when I bought my home.  There were so many things to get in order– it was confusing to decide where to begin! So, even if you plan to buy in the spring, January is a good time to get ready. Here are some tips to help you get on track to reach your 2012 home buying resolution:

  • Select a qualified and trusted real estate agent: At Coldwell Banker, we have a network of knowledgeable, trustworthy agents.  Agents understand the local market and can help you find all the information and resources you need to get started. Researching on your own is important, and using free online tools is a great way to start, but meeting with an agent will ensure you don’t miss any important steps along the way.  In fact, the next three tips were sourced from the great advice of our agents.
  • Create your “must-haves” and “nice-to-haves” list: Easier said than done, right?  But it’s next to impossible to find a first home with everything.  You’ll need to think about your lifestyle needs and prioritize the non-negotiable home accommodations, such as a bedroom for each family member, over items you may want, but not need, such as a large master suite. Everyone’s list is different, but knowing your “must-haves” in advance will help you stay focused.
  • Determine your budget: Be realistic about what is affordable. An agent can help you find comparable home prices and hone in on approximately how much the payments will be.  You should also plan to get pre-approved for a mortgage. Doing this prior to house hunting will let you know how much money you qualify for, and how much you can afford. You’ll also be able to figure out which mortgage type is best for you.
  • Identify the perfect “location, location, location”: Everyone has heard this phrase before, and while the surrounding neighborhood and home itself may improve over time, the physical location will remain the same. Determine in advance how close you would like to live to work, schools or extended family. A short commute to work, proximity to family or having easy access to highways and mass transit will often be items for your “must-haves” list.

Hope your 2012 is off to a good start. If you’re starting your home search in 2012, we’d love to hear what you’re doing to get the home search process started.

How to Stage your Home for Sale

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Via ColdwellBanker.com

With a substantial amount of homes for sale on the market, homeowners looking to put their home up for sale have a number of other home sellers to compete with. However, homeowners can gain a leg up on their competition with some low-cost home repair and redecorating projects that can significantly improve the aesthetic and value of their homes.

Look around the home

According to Inman News, some home sellers often find that by looking around their residence, they can discover areas they can easily make more appealing to prospective home buyers.

For instance, the real estate source reports one pair of home sellers in California stripped the carpet from areas of their home, which revealed nice hardwood floors underneath. These floors may be more attractive to home buyers, which can improve the home sellers’ chances to sell their residence.

Additionally, Inman News reports dated or harsh paint colors on the walls can be unappealing to some home buyers. Applying muted color paint, such as off-white, to replace these old coats could lead to more offers on one’s home for sale.

Declutter the residence

Another way in which home sellers can improve their odds of selling their property is to declutter their home. By doing so, Inman News reports they can make the home neater and cleaner, which is something many home buyers prefer to see when checking out the residence. Even personal possessions should be removed while the home is up for sale, according to the source.

Should home sellers find that they have numerous belongings they want to take out of sight during the period in which their home is on the market, Inman News reports they may want to donate or recycle items they don’t use anymore.

Real estate agents could be able to suggest places to donate unused clutter, which could yield home sellers a tax deduction, according to Inman News.

MSN Real Estate reports homeowners can also keep their possessions in their basement or attic – somewhere they can easily access them but where they aren’t as visible to potential home buyers.

Which Home Improvement Projects Offer the Best Returns?

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“When it comes to remodeling, exterior replacement projects have routinely rewarded home owners with more bang for their buck. This year is no different: REALTORS® recently rated many exterior improvements as among the most valuable home investment projects as part of the 2011-12 Remodeling Cost vs. Value Report.”

Via RealtorMag.com

“This year’s Remodeling Cost vs. Value Report shows the value of putting your home’s best façade forward, so to speak,” said National Association of REALTORS® President Moe Veissi. “Inexpensive exterior replacement projects are not only crucial to a home’s regular upkeep, but are also expected to recoup close to 70 percent of costs. Specific exterior projects such as siding, window and door replacements are part of regular home maintenance, so many homeowners are already undertaking them. These projects also do not require expensive materials and they have the added bonus of instantly adding curb appeal.”

HouseLogic.com, NAR’s consumer Web site, includes dozens of remodeling projects, from kitchens and baths to siding replacements, which indicate the recouped value of the project based on a national average. According to the Cost vs. Value, seven of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. REALTORS® judged an upscale fiber-cement siding replacement as the project expected to return the most money, with an estimated 78 percent of costs recouped upon resale.

Two additional siding replacement projects were in the top 10, including foam-backed vinyl siding, expected to return 69.6 percent of costs, and upscale vinyl siding, expected to recoup 69.5 percent of costs. Three door replacements were also among the top exterior replacement projects. The steel entry door replacement is the least expensive project in the report, costing little more than $1,200 on average and expected to recoup 73 percent of costs.

The upscale garage door replacement jumped seven spots to number six this year, primarily due to the average cost of the project declining more than 15 percent nationally. The upscale and midrange garage door replacement projects are expected to return more than 71 percent of costs. One window replacement project — upscale vinyl — rounded out the last exterior replacement project in the top 10, expected to recoup 69.1 percent of costs.

The 2011-12 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels, and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 14th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood LLC, was completed in cooperation with NAR.

Selling a Home in the Winter

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Selling a home in winter can be challenging and some homeowners may find themselves in the position of having to sell during this time of the year. There are some ways to make the process easier, however. Ideally, the homeowners will know in advance they intend to sell and can start preparing the home before the cold sets in.

Fewer home sellers are active in winter, which generally means prospective buyers are looking at fewer choices. This might make it easier to stand out from the crowd and improve the competition for properties.

Winter home staging

According to USA Today, the season does provide a few unique opportunities to grab potential buyers’ attention. A well-shoveled driveway and walkway make a good first impression. Although they are not important in and of themselves, they tend to create an inviting atmosphere and serve as evidence that the homeowners have paid attention to the details of their home, including regular maintenance and upkeep.

To continue fostering that attitude, the source suggests home staging be used to emphasize the property’s comfort, size, warmth and brightness. Good lighting and clean windows make it easier to see and may help buyers envision themselves living in the home. Experts reportedly discourage showing a home after dark, and note it can be helpful to have photos of the home in the summer or spring on display.

Some experts advise keeping tasteful holiday decorations up, although too many could be overpowering. Instead, conservative lighting, wreaths and similar small touches can tap into the holiday feeling and focus buyers on the home’s comfort and potential during the season.

Intangible factors

One expert told Bankrate.com it can pay to play soft music when visitors are expected to look at the house, saying soothing classical music tends to encourage longer visits and more thorough examinations. Pleasant smells, particularly from baking, may also contribute to the sense of the house as a home, not simply a structure.

The seasonal effects will depend on the home’s location, and in sufficiently warm climates snow and ice may not be a problem. Alternatively, home sellers in areas that tend to have more extreme weather may find potential buyers are looking to enjoy skiing or other winter activities, or may be able to tout effective transportation and other advantages over similar homes.

Via ColdwellBanker.com 

 

Invest in Your Ideal Lifestyle

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“The heart buys a place to live, the head buys a good investment, together they buy the perfect home.”

With a price tag involving many zeros, buying a home fits squarely into the investment category. Yet, choosing a home strictly as an investment may not be a great idea. If you ignore your lifestyle needs and aesthetic preferences, you could get unhappy enough to sell your investment long before it can provide a return.

Look for a balance between your personal needs and your financial goals by paying attention to appreciation rates in the area; neighborhood amenities; purchase and maintenance costs; size and architectural style; and proximity to work, schools, friends, shopping and entertainment.

Get more information here

5 Things to Know to Help Sell Your Home Fast

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Via RISMedia

Here are a couple simple rules to follow while getting your home ready to sell. Making sure to address these factors will help make sure your home is appealing to potential buyers.

1. Curb appeal is key to selling your home… If it looks rundown from the outside, then it probably is on the inside too. Curb appeal is all about first impressions. Buyers want to feel like they could live in a home from the moment they pull up in front of it. Basic improvements such as exterior painting, cutting the grass and planting some flowers improve the look of a home from the outside tremendously.

2. Deodorize… Every home has a unique odor, especially if pets are present. Be sure to professionally clean the carpet and the furniture and replace carpets if necessary. Keep pets clean and the home free from dander. Consider taking pets and pet cages if present in the home with you when you leave for showings.

3. Really want to sell your home? Repair and repaint… A little putty and paint can make all the difference. Repair damaged dry wall, gouges in wood surfaces and paint the walls. Bright colors such as those in children’s rooms should be repainted with a neutral color.

4. Put away your personal collections… Here, the old saying that one man’s treasure is another man’s junk rings true. De-clutter your home by packing up knick-knacks, heirlooms, personal collections, and even family photos. After all, they are special only to you and your goal is to make the home presentable to the widest number of people possible. Expensive collections should be packed away as well to keep them safe.

5. No guns, drugs or valuables… If you own a gun, be sure it’s unloaded and lock it away. Don’t leave it accessible to anyone viewing your home, especially anyone with children. The same is true for prescription drugs, fine jewelry, valuable art work, money and anything else you want to keep safe.

For more tips on selling your home quickly in today’s market, contact an agent at www.coldwellbankerobx.com.

Selling a home with the help of a professional helps simplify a potentially complicated, intimidating process. A Coldwell Banker Seaside Realty sales associate is Your Perfect Partner® when it comes to effectively marketing your home.

Please be sure to visit our sellers’ page, which helps you estimate the value of your home; find a Sales Associate and much more. Check out our buyer’s page for advice on the purchasing process.

What Sells a Home

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RealtyTimes gives us 10 factors that affect how quickly your home sells…

 

“Unfortunately, there is no golden equation that equals the perfect sale. Yet, while there is no ‘sure thing’ in the housing market these days, there are certain factors that affect how quickly and for how much your home sells. ”

 

  1. Price: It’s a common misconception that location is the leading factor of whether or not a home sells. It is, instead, price. Think about this scenario. You have a home located in a prestigious and sought-after neighborhood, yet the list price is tens of thousand of dollars over the comps for the area. No one will be interested. This same property priced just below the competition will fly off the market.
  1. Location: Okay, location is still important. A home that sits next to a refinery, crime-ridden neighborhood, or busy street is less desirable than one that backs up to green space. If your home has a boastable location, then by all means boast about it in your marketing.
  1. Liveability: This is fast becoming a hot button word in real estate. Buyers today are looking for neighborhoods that deliver amenities such as golf parks, restaurants, theaters. They want good schools, walkable neighborhoods, and plenty of things to keep them entertained.
  1. Condition: There is a certain segment of the market that is made up of renovators, flippers, and investors. You won’t find as many people these days eager to buy your run-down property that is in a good location. They simply can’t sell the property fast enough before monthly mortgage payments begin eating up their profit. Homes that are well-maintained or in move-in ready condition appeal to a broader range of buyers. Even simple fixes, such as new paint, cleaned carpets, or power-washed decks, can have an effect.
  1. Competitive Advantage: Don’t make the mistake of assuming that you’re in this race alone. Past area sales, as well as current listings and foreclosures, are your direct competition. You must take these into consideration when settling on a list price for your home. What amenities and upgrades do these homes have? Do the homes in your neighborhood all have updated baths, kitchens, or landscaped yards? In order to price in line with them you must be able to boast these same things.
  1. Curb Appeal: Curb appeal is the first impression of the home world. You must keep the yard orderly and maintained when your home is on the market.
  1. Staging: Once inside your home, a buyer must be wowed. Intoxicate their senses. They want to see up-to-date furnishings, smell a clean home, touch cabinets that are in good repair, hear peace and quiet, and of course “taste the good life.”
  1. Kitchens: A kitchen sells a house. It is where families gather and connect. Minor kitchen remodels rank high among the list of top remodeling projects, with owners updating cabinets, counters, and floors. Nobody wants an outdated kitchen. What fixes are in your budget? If your kitchen is already spectacular, be sure you play this up in any marketing.
  1. Agents: An accomplished, knowledgeable agent can be your biggest ally during the selling process. They know the latest market trends and have built a network of agents and contacts to market your home to. With an arsenal of marketing tools available to agents today, from video tours and webcasts to brochures, websites, and mls listings, they are part of your selling team.
  1. Marketing: Marketing has gone global. With the power of the Internet, you can showcase your home to millions of potential buyers. Sit down with your agent and develop a solid marketing plan. This is why you are paying them a commission. Make them earn it!

The market is not what it once was. You must be realistic about what selling in today’s market means. You value your home, but it may not be “worth” as much today as it was yesterday, last month, or last year. Consider these top ten ways a home sells and help your home put it’s best face forward.

5 Signs a Foreclosure is a Good Deal

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What Makes a Foreclosure a Good Deal

via ZillowBlog…

When you are about to purchase a foreclosure, consider these 5 things:

1.    “I love the property” is what you say after you’ve viewed it, driven the neighborhood, and investigated the property fundamentals. You love it because it is very close to exactly what you were hoping for in becoming a homeowner, or rental property owner.

 
2.    “I plan to own it a long time” is what you say when asked. Regardless of how great a deal you think you are getting, the break-even point in ownership is really about five years. If you aren’t going to own it that long, you are most likely better off staying a renter. Remember the three most important words in real estate: long-term ownership

 
3.    “It’s in pretty good shape” is what you say when your friends ask about the physical condition of the property. The vast majority of buyers have wildly low expectations of how much it costs to renovate a property. Renovations usually cost a lot more and take a lot longer than one believes, so let the contractors buy the fixer-uppers.

 
4.    “The price is in line with comparable recent sales in the neighborhood” is what you find out when you do a comparable market analysis of nearby properties. Remember, if it sounds too good to be true, it probably is.

 
5.    “Most of the nearby houses are occupied” by owners, or at least renters in the area. Neighborhoods with many empty houses can go into downward spirals that can become very bad areas with very low home values. Avoid that type of risk.