Things got away from me for just a bit. Not because I was having fun, but because I was in the midst of chaos, drama, pressure.... I have a settlement coming up with some last minute problems with the mortgage. Not with my Buyer - he was well qualified and ready to go. It was more of a paperwork issue with the mortgage company. But I worked with such a fabulous group of people to take care of the problem and everyone really rose to the occasion. We're settling tomorrow thanks to a Herculean team effort from the Title company, Mortgage company, Realtors (Thanks Rowland!), Buyer, and Seller. What a privilege it was to work with such a great group of people.
Challenges give me an opportunity to rise to the occasion and really dig in and drive the solution. While I don't enjoy the stress, and my ultimate goal is to get to the settlement table with no glitches, hiccups, or tears, sometimes things just happen. It's important to me that when they do, I can identify the problem, figure out how to fix it, and work with a team to get it done.
When you choose your REALTOR, think about how he/she is going to handle the hard calls, the tough challenges, and the rough stuff. Can he handle the stress? Can she take a look at the situation at hand and do what needs to be done next? Then take the next step...and then the next...and then the next until you get some resolution? Does he/she steer clear of blame and a "Not my job" attitude.
Does he have a fabulous team behind them?
The goal is to make every real estate transaction seamless, and most of them proceed that way. However, make sure you find the right person who can step up to the plate if they don't.
Wednesday, January 16, 2008
Wednesday, January 9, 2008
Weathering the Market in Bucks County?
There was an interesting article on MSN Money regarding twelve principles which make a house somewhat "Recession Proof." You can read the article here.
If you're looking to purchase, now is a really good time to actually take a look at factors that negatively impact property value, and buy a home accordingly. I'll give you an example...
There is a house in Langhorne currently listed well below market price for the neighborhood. It's been on the market over a year, and continues to languish on the market. Why? Because it backs up to Rt. 413.
Now, two years ago, that house could have been sitting on the edge of a cliff, with the turnpike running through the front yard, and it still would have sold. Buyers were lucky to get the opportunity to actually write an offer before a home was sold, so many of the most basic principles of value were tossed to the wayside as Buyers scrambled to find something...anything...that they could get under contract.
In the post-crazed real estate market, a Buyer has the opportunity to step back, take his or her time, and buy smart. If a home has been sitting for a year? Chances are you can figure out why, and if it's not pricing or something "fixable" it's going to impact YOU when you go to sell. The market is speaking to you - listen to what it's telling you.
Location is the number one consideration when buying a home. School District is next. These will have the most impact on your resale and the property's value going forward. Buy smart, and you can better weather any shifts in the real estate market.
Need more information? Shoot me an email and I'll be happy to help you!
Tuesday, January 8, 2008
Strategies for a Quick Sale
My last few listings have had well under the average days on market (the last two were sold in under 30 days). While I don't have a magic bullet, I do have some smart, common sense strategies to get your home sold fast.1. Pricing is key. KEY. You want to have a really good market analysis, and not one of these "Oh, here are five 4 bedrooms that have sold in the last 6 months." kind of analysis. You want adjustments made for amenities, lot size, condition, fireplaces, A/C, etc, and comparables from the last 3 months. You want to take a look at your competition in the marketplace. Then you have to resist the urge to overprice your home by $5,000 to "leave room for negotiating" and price your home so that it's a tremendous value for the price range. Compared to the other 4 bedrooms on the market? Your home is the only one priced right, and because everyone else inflated their price by thousands of dollars for "wiggle room," you're usually also the lowest priced.
Doesn't this leave money on the table? Nope. Remember, you're pricing your home where you think it is going to sell, thanks to a thorough market analysis. You're leaving out the "wiggle room" and effectively out-pricing the competition. You're getting more Buyers through your door and creating a sense of value. It's a completely different mindset from "How much are they asking? Let's let it sit until they reduce it." It works.
2. Don't hit the MLS until you're prepared. That means that all the little repairs have been made, the house is staged, and the photos and virtual tour are ready to go. For my clients, I will not enter a home in the MLS until I am ready to load the maximum number of pictures immediately. No pictures, or one picture of the front of the home is the kiss of death in my opinion. You may as well have a flashing neon sign screaming "Dump" next to your address otherwise. No pictures means something is wrong.
Can't you load them in a day or two? Nope. I think you have one chance to grab that Buyer (and a good agent will have Buyers set up to get listings automatically as they hit the MLS). There's an excitement to "Oh, an email from my REALTOR! I hope this is a good one! " If there are no pictures, there's nothing to get excited about. Who knows if they'll ever re-visit the listing to see your interior shots. If they do, much of the excitement of the "new listing" will have worn off.
Get your marketing strategy together (and it better be a good one) and get it ready to go before the first day on the market.
3. Look at the big picture. If you are looking to sell quickly, you can't get caught up with a couple hundred (maybe thousand) dollars, or keeping your washer and dryer, or stubbornly refusing to fix a leaky faucet because, "It's not a big deal." Take a step back, think about your priorities, then move forward accordingly. Price is just one aspect of a deal, and there are many others that often affect your net proceeds. How about a full price offer with a 3 month settlement, as opposed to one $2,000 less with a 30 day settlement? Carrying charges may make the second offer more financially advantageous. Your washer and dryer? Put a dollar amount on them and see if the deal still works with you throwing them in. Make the repairs the Buyer calls for, even if they're stupid, but cost little to repair.
I'm not saying to throw in the towel and bend to Buyer's every demand. I am saying to work with them, especially if it's helping you along to where you want to be. Don't let ego, or hurt feelings, or anger implode a deal that you want to see go to settlement.
Want some more good info? Shoot me an email and I'll go on and on and on for you...
Friday, January 4, 2008
Should I Stay or Should I Go?
If you have a property to sell before you buy, many Sellers in Bucks County struggle with whether to buy or sell first. Ideally, you can coordinate the settlements back to back and there is no difficulty in getting the proceeds of your home sale to move forward with your purchase. Ahhhh, it’s so lovely to have things work out.
But it doesn’t always work that way. Here’s a quick snapshot of the risks and rewards of selling first, or buying first:
Sell Your Home First
The drawback is you may not find a property that you like and have to move in with family or temporary housing for a while. This could wreak havoc on your life, especially if you have kids in school, and you’ll incur storage fees for your possessions. The reward is that you know exactly how much money you are getting from your home sale, can make offers without a home sale contingency, and don’t have the stress of carrying two mortgages.
Buy Your Home First
The drawback is that you may be inviting financial disaster. You may either have to carry two mortgages for an extended period of time OR you may have to fire sale your house and not realize the equity you thought you were going to get. The benefit is that you have the luxury of working on your new home prior to moving in (painting, etc), can move your possessions in at your leisure, and any children only have to move once.
What’s my recommendation? It depends on your financial situation. Some people can carry two mortgages without financial ruin, or have a lot of equity where a $10-20K hit isn’t going to make or break them. However, if you’re not in that group, I would sell first, and ask for an extended settlement of 4 months to give yourself time to find a home. There is a ton of inventory on the market and you have a good chance at finding your home quickly.
However, my last few home sales have been under 30 days on market, so it can be done.
How do I get it done? Look for my next post where I’ll run through it…
In the meantime, enjoy!
But it doesn’t always work that way. Here’s a quick snapshot of the risks and rewards of selling first, or buying first:
Sell Your Home First
The drawback is you may not find a property that you like and have to move in with family or temporary housing for a while. This could wreak havoc on your life, especially if you have kids in school, and you’ll incur storage fees for your possessions. The reward is that you know exactly how much money you are getting from your home sale, can make offers without a home sale contingency, and don’t have the stress of carrying two mortgages.
Buy Your Home First
The drawback is that you may be inviting financial disaster. You may either have to carry two mortgages for an extended period of time OR you may have to fire sale your house and not realize the equity you thought you were going to get. The benefit is that you have the luxury of working on your new home prior to moving in (painting, etc), can move your possessions in at your leisure, and any children only have to move once.
What’s my recommendation? It depends on your financial situation. Some people can carry two mortgages without financial ruin, or have a lot of equity where a $10-20K hit isn’t going to make or break them. However, if you’re not in that group, I would sell first, and ask for an extended settlement of 4 months to give yourself time to find a home. There is a ton of inventory on the market and you have a good chance at finding your home quickly.
However, my last few home sales have been under 30 days on market, so it can be done.
How do I get it done? Look for my next post where I’ll run through it…
In the meantime, enjoy!
Wednesday, January 2, 2008
Why it's OK to Sell Your Home in a Down Market
As prices fall, many homeowners are deciding to stay in their homes until the market recovers. However, if you are planning to buy up (move up to a higher price range), it's really ok, and in fact may be a smart move, to move in this market.
Say what???
Although you may have taken a hit on your home price, higher priced homes have taken an even bigger hit on theirs, and you can buy your "move up home" for a lot less money. Say, for instance, prices have decreased 5% in your area. At the top of the boom, you're home was worth $200,000 and you were looking at homes in the $400,000 range. Your home is now worth $190,000, but that $400,000 is now priced at $380,000. You're already up $10,000!
Where you'll see the most financial gain, however, is long term and with market recovery. When the market DOES stabilize, and DOES start to recover, you'll see greater gains because you're at a higher price point. Taking a look at the examples above, and starting with a price of $190,000 and $380,000, even a modest appreciation of 1.5% a year over 5 years will yield $204,684 and $409,368, respectively.
Now, some fair warnings:
1. This is LONG TERM. I don't think anyone is expecting a quick recovery or hand over fist appreciation like we've seen in the past few years. Slow and steady wins the race on this deal.
2. This is assuming that the market doesn't continue to depreciate, and we don't have a complete bust in the market.
Ready to make the move? Should you buy or sell first?
I'll tackle that topic in my next blog posting. Stay tuned..
Say what???
Although you may have taken a hit on your home price, higher priced homes have taken an even bigger hit on theirs, and you can buy your "move up home" for a lot less money. Say, for instance, prices have decreased 5% in your area. At the top of the boom, you're home was worth $200,000 and you were looking at homes in the $400,000 range. Your home is now worth $190,000, but that $400,000 is now priced at $380,000. You're already up $10,000!
Where you'll see the most financial gain, however, is long term and with market recovery. When the market DOES stabilize, and DOES start to recover, you'll see greater gains because you're at a higher price point. Taking a look at the examples above, and starting with a price of $190,000 and $380,000, even a modest appreciation of 1.5% a year over 5 years will yield $204,684 and $409,368, respectively.
Now, some fair warnings:
1. This is LONG TERM. I don't think anyone is expecting a quick recovery or hand over fist appreciation like we've seen in the past few years. Slow and steady wins the race on this deal.
2. This is assuming that the market doesn't continue to depreciate, and we don't have a complete bust in the market.
Ready to make the move? Should you buy or sell first?
I'll tackle that topic in my next blog posting. Stay tuned..
Semi-Staging a Vacant Property
Ta - DA!
As promised in my previous post here are a few before and after photos of the "semi-staged" vacant home. You'll see that even a few pieces of furniture will have a great impact on aesthetics of the home, and will help a Buyer visualize the functionality of the space.
Formal Living Room
Great Room
Bedroom
I think the pictures not only speak to what a great impact a few pieces of furniture have on a home, but they're also a testament to my fabulous, wonderful, talented photographer/virtual tour provider!
As promised in my previous post here are a few before and after photos of the "semi-staged" vacant home. You'll see that even a few pieces of furniture will have a great impact on aesthetics of the home, and will help a Buyer visualize the functionality of the space.
Formal Living Room
Great Room
Bedroom
I think the pictures not only speak to what a great impact a few pieces of furniture have on a home, but they're also a testament to my fabulous, wonderful, talented photographer/virtual tour provider!
Tuesday, December 4, 2007
Pictures make a difference
Anyone who has been searching online knows the truth in this - pictures matter. We've all seen the terrible house photos: pictures of a bedrooms showing only the bed (Hey, nice linens!), or pictures of the bathroom with the toilet seat up (Gross. Seriously.), or pictures that are blurred, or pictures where you can see that the Realtor(R) rolled up in his car, leaned out the window, and snapped a picture of the front of the house.
Your pictures should invite people into your home. They should look professional and be taken at angles that tell a story about the room they depict. You should be able to figure out where the rooms are in relation to each other by the pictures. Instead of the a picture of the living room couch, the dining room table, and the kitchen stove, you should have a picture of the entire kitchen, with a hint of the eating area in the background. The eating area should show a hint of the adjacent living room, etc.
Even better, offer Buyers a virtual tour of the home. Here is an example of a virtual tour:
Click Here
Want some more suggestions for real estate photos? Shoot me an email and I'll give you more information and provide you with a great photographer/virtual tour provider.
Your pictures should invite people into your home. They should look professional and be taken at angles that tell a story about the room they depict. You should be able to figure out where the rooms are in relation to each other by the pictures. Instead of the a picture of the living room couch, the dining room table, and the kitchen stove, you should have a picture of the entire kitchen, with a hint of the eating area in the background. The eating area should show a hint of the adjacent living room, etc.
Even better, offer Buyers a virtual tour of the home. Here is an example of a virtual tour:
Click Here
Want some more suggestions for real estate photos? Shoot me an email and I'll give you more information and provide you with a great photographer/virtual tour provider.
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