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Stage It, Sell It, Profit!
Staging Your Home
Turn on any popular home network on cable TV and you’ll find a program on staging.
Re-arrange your furniture, pick a soothing color palette, clear out the family photos, and your home will sell faster, and for more money. Sound too frou-frou to be true?
It’s not! The soft and decorative side of staging is backed by hard facts.
Real estate agents like great-looking homes because they are easier to sell. Why is that important?
- An agent’s job is to please their clients, and they will direct their buyers to the homes they think they will buy.
- Agents talk to other agents who are also directing their buyers to the best homes on the market. An attractive listing will be shown more often, meaning more market exposure—critical for a quick and profitable house sale.
- Staging is non-negotiable in many parts of the country. Staging a listing for sale in an area where the concept hasn’t caught on can give you an advantage, particularly if there are many unsold listings similar to yours on the market. Buyers gravitate to listings that look good and are in move-in condition.
- Buyers are looking for value. When prices are flat or on the decline, buyers need to perceive that the house is worth the price.
Bottom line: staging is more than an exercise in tasteful interior design. It is a business decision that can have a huge impact on your financial return and timeline.
This Month In Real Estate- September
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| This Month in Real Estate September 2010 …………………………………………………………………………………………………………………………….. Market Update
Meanwhile, the economy still has a lot of ground to cover before achieving its full, sustainable recovery. Consumers, while remaining on the cautious side, have increased their spending, which is supported by a gradual improvement in income. The stagnant job market continues to be a cause for concern, but overall, financial conditions have improved. For the first time in fourteen months, home sales fell below year-ago levels. Although the drop exceeded expectations, it is undoubtedly due to the expiration of the tax credit. Lawrence Yun, NAR chief economist, said, “given the rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs.”
July’s median home price was virtually unchanged. Home values have been stable for the past 18 months due in part to the tax credit. Experts believe that home prices will continue to be stable going forward.
The total number of homes on the market remains stable but the number of months worth of inventory has jumped due to lower home sales and fewer buyers in the market. This represents a great opportunity for buyers who have not yet purchased or who are considering a second home or investment property. Important to note is that experts anticipate stable prices and do not expect this to be an ongoing trend. Source: National Association of RealtorsInterest Rates Mortgage rates continued to set new record lows in August, providing real savings in interest and monthly payment for buyers and refinancers. As economic activity picks up, rates will rise to keep inflation in check.
Rates as of September 2.This Month’s Video
Topics For Home Owners, Buyers & Sellers
Financial ReformWhat it means for consumers
The Wall Street Reform and Consumer Protection Act was signed into law in late July. Before the pains of the financial crisis were just a thing of the past, Congress passed the biggest financial reform measures since the Great Depression. While much of the bill covers Wall Street measures and regulations, there are several changes consumers should be aware of. The following are the top measures related to financing for consumers:
The government’s goal of creating safer and easier to understand lending practices is to benefit the long-term strength of the economy. For more information, see the following links:
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Contact me, your local real estate expert, for information about what’s going on in our area. Newsletter Contents 1. Market Update 2. Interest Rates 3. Video 4. Topics for Owners, Buyers & Sellers |
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Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate. |
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The housing market was off to a rocky start as the second half of the year began. Much of the volatility, however, was anticipated and attributed to the now-expired tax credit. Despite softened sales this last month, home prices continued to gain – thanks in part to record low jumbo loan rates, which are fueling more interest and activities in the higher end of the market.
Pricing Your Home To Sell
Getting ready to get into the real-estate market?
Most sellers today are nervous and unsure. They wonder: is taking a loss on our house inevitable?
The answer is no! A strategic sales plan, coupled with a smart buy in your new location will ensure that you recoup the maximum value for your home.
Your Strategic Sales Plan
Consult with an expert, local real estate agent to ensure your house is priced competitively and well-staged. Why? Because while there are always three factors to getting a home sold—location, price, and condition—only two are under your control: price and condition. Of the two, which is more significant? Price. Remember that price will correct bad condition, but condition will never overcome a bad price.
Act fast. You’re in a race against time—the best price you’ll get in today’s market is the one you get now. If you wait, it will be lower. And every month the price on your home decreases, your costs remain the same. For example, Keller Williams research shows that sellers who listed their home at the price the agent originally recommended, sold the home 38 days faster. This is over a month of mortgage and tax payments! For a home that cost $200,000 at time of purchase, with 20 percent down and an interest rate of 6.5 percent, selling a month sooner results in a savings of $1101.31 for the mortgage alone, not including the taxes and insurance that the homeowner would be paying during this time.
Don’t worry about where the market has been, keep your focus on where it is going. The price your neighbor down the street got six months ago is not relevant in a market where your house is competing with others from all across town. Again, a local real estate agent will have the kind of long-term, wide-ranging data that will help you decide how to pinpoint your price with precision.
Your Smart Buy
Move up. Whether you are moving to an area where prices are in a downturn, or dreaming of nicer, bigger, home in your own town, selling your house now can get you into the home of your dreams. Falling home prices are a great opportunity for a savvy homeowner looking to move up. Even though your house price may be lower, the smaller loss at sale can be made up by greater savings at purchase. For example, let’s take that same $200,000 home, and imagine that it has decreased in value by 5 percent, reducing the sales price to $190,000. At the same time, let’s imagine that you would like to move up and the $400,000 home you have been eyeing has also decreased by 5 percent. That’s a savings of $20,000, and it is a home that is likely to be better positioned for appreciation when the market rebounds.
Bottom line: don’t pit yourself against the market, work with the market to get the most out of your house sale.
Protect Your Investment
Steps to Buying a Home-Step 8
Congratulations, and welcome home! The home-buying process is complete, but just like any big process, there’s a maintenance plan! It’s now your responsibility, and in your best financial interest, to protect your investment for years to come. Performing routine maintenance on your home’s systems is always more affordable than having to fix big problems later. Be sure to watch for signs of leaks, damage, and wear.
And remember, just because the sale is complete, your relationship with your agent doesn’t need to end! After closing, your agent can still help you – providing information for your tax returns, finding contractors and repair services, and even tracking your home’s current market value.
Happy Labor Day…need some ideas of what to do?
Looking for things to do on the last official holiday of the summer? Whether you want to spend the day doing nothing or squeeze in a last minute trip, here are a few ideas to get you started.
- Take a trip to the park. With so many great parks in the area you won’t have to travel far. Lake Norman State Park, located in Troutman, there is something here for the whole family to enjoy. http://www.ncparks.gov/Visit/parks/lano/main.php
- Make homemade Ice Cream. Chose your favorite flavor and favorite ingredients for a tasty treat. Peach has my vote!
- Want to be around others? Host a Cook-Out. You don’t have to foot the bill. Get your guest to help. Most will be happy to pitch in by bringing a side dish, condiments, dessert… The goal is about spending time together with friends and family any way.
- Go on a picnic! Pack a basket full of your favorites and head outdoors.
What about going for a bike ride? There are many greenways and mountain bike trails in the area to choose from. http://www.ci.davidson.nc.us/index.aspx?NID=147
What ever you do, I hope you have a safe and fun Labor Day!
Close
Steps to Buying a Home-Step 7
Once you’ve made your offer and have completed the inspection process, you’re in the “home” stretch! But, in order to ensure that you don’t put your closing date, or your mortgage at risk, you have a few pre-closing responsibilities that you’ll need to be mindful of. These include:
- Staying in control of your credit and finances. If you are tempted to make any large purchases during this time, it’s best to talk to your lender first.
- Keeping in touch with your agent and lender, returning all phone calls and completing paperwork promptly.
- Communicating with your agent at least once or twice a week, and verifying with your lender that all mortgage funding steps are completed.
- Conducting a final walk-through of the home with your agent.
- Confirming with your agent, home insurance professional, and lender that you have the settlement statement, certified funds, and evidence of insurance lined up prior to closing.
Perform Due Diligence
Steps to Buying a Home-Step 6
Just because you love a particular property doesn’t mean that it’s perfect. In fact, this is where reason has to trump emotion. You’ll need to have a property inspection (which we highly recommend you attend) that will expose hidden issues. This way you’ll know what you are getting into before you sign closing papers.
- Your main concern is the possibility of structural damage. This can come from water damage, shifting ground, or poor construction when the house was built.
- Don’t sweat the small stuff. It’s the inspector’s job to mark everything discovered no matter how large or small. The inspectors report may be long, but, things that are easily fixed can be overlooked for the time being.
- If you have a big problem show up in your inspection report, you should bring in a specialist and if the worst-case scenario turns out to be true, you might want to walk away from the purchase.
- Even if your home passes inspection, you’ll still need to buy a home owner’s insurance policy that protects you against loss or damage to the property itself and against liability in case someone sustains an injury while on your property.
Make an Offer
Steps to Buying a Home-Step 5
Once you’ve found a home you love, the next step is making a compelling offer. While emotions are probably in high gear once you’ve found a home you love, it’s important to remember that a home is an investment. Your agent will research similar properties in the neighborhood to help you determine the market value, and fair price, for your home. Look to your agent to explain and guide you through the offer process.
- The three basic components of your purchase offer are price, terms and contingencies.
- Price is the dollar amount you are approved for, willing and able to pay.
- Terms cover the other financial and timing factors that will be included in the offer.
- Contingencies are clauses that let you out of the deal if the house has a problem that didn’t exist or which you weren’t aware of when you went under contract. They specify any event that will need to take place in order for you to fulfill the contract.
Secure Financing
Steps to Buying a Home-Step 3
Ultimately, your lender will pre-approve you for a certain amount, but YOU will decide what you’re comfortable paying every month. Remember, your lender only sees your finances on paper. It’s up to you to decide how much you’re willing to stretch your budget in order to get into your dream home.
Be sure to follow these six steps to financing your home:
- Choose a loan officer.
- Make a loan application and get preapproved.
- Determine what you want to pay and select a loan option.
- Submit to the lender an accepted purchase offer contract.
- Get an appraisal and title commitment.
- Obtain funding at closing.
Hire Your Agent
Steps to Buying a Home- Step 2
When you’re looking for a real estate professional to help you, know that above all else, good agents put their clients first. This is your dream, and your agent is your advocate to help you make your dream come true.
A great real estate agent will:
- Educate you about the current conditions of market.
- Analyze what you want and what you need in your next home.
- Guide you to homes that fit your criteria.
- Coordinate the work of other needed professionals throughout the process.
- Negotiate with the seller on your behalf.
- Check and double-check paperwork and deadlines.
- Solve any problems that may arise.
Decide to Buy
Steps to Buying a Home- Step 1
The decision to purchase your first home is one of the biggest and best decisions you could ever make. After all, a home is the largest (and most emotional) investment most people will ever make. So, how do you know if it’s the right time for you to buy your first home?
- There is never a wrong time to buy the right home. The key is finding a good buy and taking the time to carefully evaluate your finances.
- A home purchase is an important step in the path to long-term wealth. Purchasing your own home is a great investment that provides specific financial advantages, including equity buildup, value appreciation potential and tax benefits. It’s also an automatic savings plan that you cannot get from renting!
- Here’s the most important rule for keeping your stress to a minimum: you don’t have to know everything. Terrie Fink is ready to help you through every step of the process.
Do You Know a Homeowner Facing Foreclosure?
Here’s A Way Out.
Headlines today are filled with stories about homeowners in financial distress—people who face a lender’s foreclosure on their home.
Millions of American home owners are wondering what to do.
Like most crises, this one has produced its share of rumors and misinformation. One of the biggest ones is “just let it happen.” Why fight back, this line of thinking goes. It’s too emotionally draining, and the government’s loan modifications aren’t helping many people. Well, that’s only partly true.
While government loan modification programs have fallen short of the mark so far, there is another solid, sensible option for homeowners. It’s called a short sale—a sale to a buyer where the seller’s lender agrees to accept less than the full amount owned.
Why not be foreclosed? Why sell short? Agents who have closed hundreds of these transactions provide this list of reasons:
- Avoid the foreclosure stigma – Homeowners will always have to disclose that they had a foreclosure on any mortgage application and (many job applications) that they submit in the future. This can have an adverse affect on their future mortgage rates. Foreclosure is asked about specifically in credit inquiries. There is no seven-year time limit on this item.
- Protect credit score – Credit scores will be lowered by 300-plus points (per loan) by foreclosure. The impact of a short sale—about half that much.
- Improve eligibility for a government insured loan – The homeowner will be ineligible for a government insured loan for 5-7 years (only two years in a short sale). A foreclosure is the one credit report item that is almost impossible to have repaired.
- Avoid a deficiency judgment – Lenders can seek a deficiency judgment against the homeowner and collect any amount they do not recover at sale.
- Protect employment prospects – Many employers run credit checks on prospective employees. Foreclosure is one of the top items that will put a potential new hire, or even current employment, in jeopardy.
These are the top reasons, but there are more. An expert short sale specialist agent can give a full picture of the options.
One more tip. Don’t believe everything you read about how long short sales take and how few get finalized. Short sale timelines, while still longer than normal, are shrinking as lenders get their paperwork act together. Find out who the top short sale agents are in your market. These pros are closing 70 to 90 percent of the short sales they represent—more than three times the national average. They know where to find buyers, and how to negotiate the buyer’s offer effectively with lenders and get the deal closed—so the homeowner can move on with life and recover.
FOR MORE INFORMATION CONTACT TERRIE FINK OR VISIT WWW.THINKTERRIEFINK.COM
Buying a Foreclosure
Foreclosed and foreclosing properties dominate many of today’s U.S. real estate markets—more than four years after the sharpest observers saw the market shift coming, and more than two years after the reality hit home for millions of American home owners.
The recent Keller Williams Distressed Property Buying Survey unearthed great information about where the opportunities are, how big they are, and how smart, capable buyers are leveraging the current market.
First-time home buyers make up almost half of all buyers of bank-owned foreclosures and soon-to-be foreclosed short sale properties. They’re followed closely by investors seeking rental properties, and a third important group—homeowners who find they can move up to a bigger or better home they previously could not afford.
To help more consumers win as buyers, Keller Williams agents are now offering a workshop, “Winning with Foreclosures,” that shows buyers how to prepare to be successful buying the “distressed” properties—homes that offer, according to the survey, a 10 percent to 40 percent price advantage, depending on the local market.
The truth is: these markets demand most of the same things an ordinary market demands of buyers—only more intensely and pointedly:
- Money: Buyers must be financially qualified and ready to buy. The best properties go quickly. Buyers must look strong to lenders.
- Motivation: Buyers must be motivated to compete successfully. Keller Williams agents urge their buyers in this market to be clear about both their “motivating why” and their criteria for the property itself (size, location, condition, floor plan, etc.)
- Location: Contrary to the rumors, prime buying opportunities exist in almost every neighborhood and price range.
- Condition: Buyers should understand that repair costs are not necessarily large. The Keller Williams Distressed Property Buying Survey shows the average cost to repair to be $5,000—that’s less than 3 percent of the median purchase price in the U.S. today.
- Expert Help: Finally, smart buyers know they need to be even smarter—they become a team with a local expert agent who knows local property, pricing, lenders, and the best listing agents. A strong listing agent can be a critical advantage in seeing a distressed property through from contract to close.
So, bottom line—if you think you want to buy, have a talk with yourself first, check your financial readiness, and get with an expert and learn everything you need to know, in order to get what you want in this market.
The Big Picture and You
I learned long ago that being steeped in the business of real estate does not necessarily translate into grasping the big picture. So I made a commitment to digging beneath the surface and understanding the critical interactions that drive the real estate market. As I did so, I realized how hungry my clients were for solid information.
I’ve never lost my fascination for the facts behind the headlines, and today, I believe that Keller Williams Realty’s sharp focus on research is central to what sets us apart as a company.
Nearly every client enters into a conversation about buying or selling a home with a lot of preconceived notions and anecdotal information. It’s our job to be knowledgeable of the actual facts and to step up as the local economist of choice. That’s what our clients are looking to us for, and it’s the basis for the trust they place in us.
But having walked several miles in your shoes, we recognize that in-depth research probably doesn’t fall in your “20 percent.” In fact, most agents aren’t trained to conduct the kind of analysis that the KW Research team is known for. So this year, we’ve compiled the results of our most recent research studies into the KW Market Navigator: Vision and Opportunities.
It’s filled with facts, stats and perspectives (see the example below or click here for a sneak peek) that you can draw from on a daily basis. And believe it or not, it’s fun to read.
Of course any observations on my part concerning the importance of research and market statistics would not be complete without my overriding perspective on the topic: The market determines the number of people who will be successful, not which ones. You get to decide if you’ll be one.
Terrie Fink And Associates 
