6 Fix-Ups Worth the Price When You’re Selling
Posted: May 8, 2012 Filed under: Real Estate, Sell | Tags: sell house fast, sell my home, sell my house fast, selling a house as is, selling a house quickly Leave a comment »In today’s market, spending a lot of money on your house before a sale will not be reflected in an increase in market price. Many improvements are not worth the money because you will not get it back in the sale. However, a good-looking house that shows well sells faster and for more money than a dingy house that appears unloved.
Here are six fix-ups estimated at under $1000 each that are likely give you the edge when you sell your home.
1. Cleaning and decluttering. Remove any personal items, unclutter countertops, organize closets and shelves, and make the house sparkling clean.
2. Brightening. Clean all windows inside and out, replace or remove old curtains, update lighting fixtures, and remove anything that blocks light from the windows.
3. Smart staging. Rearrange furniture, bring in new accessories and furnishings to enhance rooms, incorporate artwork, play soft music in the background, and the smell of delicious baking never hurts either.
4. Landscaping enhancements. Give buyers a good first impression by adding bark mulch, bushes and flowers and ensuring current plants and grass are well cared for and manicured.
5. Repairing electrical or plumbing. Fix leaks under the sinks, remove any mildew stains, and ensure all plumbing is in good working condition. Fix any lights or outlets that don’t work, and replace old plug points with new safety fixtures.
6. Replacing or shampooing dirty carpets. Steam-clean carpets and repair any floor creaks.
This list is excerpted from HomeGain’s 2011 Home Sale Maximizer Survey, www.homesalemaximizer.com thanks to Realtor magazine.
Affordability is Fueling an Increase in Demand
Posted: April 9, 2012 Filed under: Buy, Real Estate, South Orange County CA | Tags: find a home for sale, find a house, find a house to buy Leave a comment »The Orange County Association of Realtors (OCAR) published an eye-opening article on affordability in this month’s issue of Orange County Realtor.
Houses are more affordable today than they’ve been for 13 years. Let me show you what I mean.
In 1999 the median sales price for a detached single family home in Orange County was $280,900. Interest rates back then averaged at 7.4%, so the payment for that home was $1945.
Payments went up steadily from there. In 2002 (only 3 years later) it cost $2560 per month to buy that same home.
In 2006 and 2007 that number was $4461 and $4392, respectively. This for a house that was 7-8 years younger and over $2300 cheaper in 1999.
Last year in 2011 the monthly payment for that home was $2399.
Because interest rates are so low (for now), and because of the price dip real estate has seen, houses in 2012 are Actually close to 1999 affordability.
According to OCAR, this year the median sales price of an OC home is $449,000. That is 59.8% MORE dollars than in 1999. However, with an average interest rate of 3.9% (get it while you can!) the payment on that $449,000 home is a mere $173 more a month at $2118.
So many buyer’s today are looking for a “deal”. In fact, home affordability may be the “deal” they have been waiting for. Buying right now may be the “deal” everyone wished they got in on.
According to the Orange County Realtor, the 2012 UCLA Anderson Forecast says that mortgage interest rates will rise to an average of 7.3% within a couple of years. At today’s prices, that would increase the monthly mortgage payment to $3078, or by almost $1000.
Would you like to save $1000 a month?
If you’re interested in buying in Orange County give me a call.
Like this:
Should I Sell My House?
Posted: February 1, 2012 Filed under: Real Estate, Sell | Tags: how to sell a house, how to sell your house, sell my house, sell my house fast, selling your house Leave a comment »As the dust settles on the real estate market of the past few years, many homeowners find themselves asking: should I sell my house?
The answer depends on your plans and needs. If real estate were only an investment, the answer would be: “Buy low and sell high.” In other words, don’t sell now because prices are not high. From a purely investment standpoint, now is a time to buy more than to sell.
However, our homes are not only investments. Our lives take surprising turns and our needs can change quickly. Children, job changes, family obligations and even marriage can make change necessary. Below are a few scenarios to help answer the question: should I sell my house?
Selling is a good idea if you need to move and:
- You would lose money renting it because the mortgage plus expenses are greater than market rent.
- You are going out of area where managing a rental would be difficult or impossible.
- You have equity in your home, and you want to put that towards a new home right away.
- You are choosing a short sale or other foreclosure alternative, and refinance or the HAFA, HARP or other homeowner assistance programs are not available to you.
- You need a clean break.
Selling is NOT a good idea if:
- You don’t really need to move right now.
- You can easily rent your place out and cover expenses. By holding the property and allowing a renter to pay down your mortgage you create the possibility of selling in a better market.
- You don’t need the equity from your current house to buy a new one.
- You are upside-down in the value of your home, but can manage the payments.
The answer for you depends on your wants and needs. If you need more information than I provided, like how to determine market rents and how much your property would get in today’s market, discuss your situation with a qualified Realtor.
Tips for Selling Your Home
Posted: January 4, 2012 Filed under: Real Estate, Sell | Tags: tips for selling your home sell your home quickly sell your home fast tips on selling your house Leave a comment »The home we live in day after day becomes familiar and comfortable to us, and even when we are leaving for a good reason, selling a home can be both emotional and a lot of work. Here are a few tips to make the process more manageable.
1. Start packing early. We all have books, clothes, blankets, and things that are either out of season or we use very rarely. Get some boxes and start with these easy items. By storing the full boxes out of sight and out-of-the-way, you get a head start on the move while also making your home more clutter-free and attractive to prospective buyers.
2. Fix anything you know is broken that you can easily afford to fix. Buyers of older homes don’t expect a perfect home, but neglect or disrepair may scare them away or cause them to demand discounts.
3. Give it a good scrub (if it hasn’t had one recently). Wipe away fingerprints and wall markings. Clear and clean floors and counters. You’ve got to let the buyers see what they’d be buying.
4. Once you sign with a Realtor and begin to market your property, make it easily for buyers to see. They may be dealing with two jobs and children and have limited time as well.
5. Be honest about today’s market value. Be careful not to price too high or too low. If you’re not seeing any interest, you’re probably priced too high. Several properties I’ve worked with have received more than one or two offers before choosing a buyer, however only after we had found the right list price. When a seller sees that the offers do not vary a great deal, he can be satisfied that he’s getting market price and choose the best one.
Best of Luck in all your property transactions!
How to Know the Value of a House
Posted: December 20, 2011 Filed under: Buy, Real Estate, South Orange County CA | Tags: how to buy a house, how to find the value of a home Leave a comment »When getting ready to purchase real estate, two questions that slow many buyers down are:
How do I know the value of a house and
How do I know I’m getting a good deal?
Below are a few simple steps to ensure that you get the best deal possible on your new home.
1. Use Sold Comparables
Not every property on the market sells, and a house may list for a price that is tens or even hundreds of thousands of dollars different from the final sales price. Market price is what buyers are paying and lenders are lending on right now. Have your realtor provide all similar properties SOLD (Closed Sale) in the past 120 days (4 months). If possible, keep your radius within 1 mile of your desired property.
2. Add or subtract for important factors.
Common differences that need to be adjusted for include: square footage, interior upgrades, view, size of garage, and size of lot. Have your Realtor help you with the adjustments if you don’t feel confident.
3. Move forward with market price.
Many buyers in today’s market miss great deals because they try to undercut market price by 5 -15%. If a good property in a good location is priced well, there may be more than one or two offers on that property before it sells. Offer fair market value, as supported by recently sold comparable properties, and you will increase your chances of being the offer that is accepted and goes to escrow.
Between reduced property values and amazingly low interest rates, right now is a very good time to buy real estate. Don’t wait until values start to rise again or interest rates go up; jump in with the New Year. If you buy a great property at today’s market rates, chances are you’ll be happy with your purchase for many years to come.
Rent or Buy?
Posted: November 2, 2011 Filed under: Buy, Real Estate | Tags: buy houses, buy my home now, first time home buyer information, first time home buyer tips, rent vs buy Leave a comment »Many websites offer a Rent vs. Buy Calculator. At first glance, most people think that comparing the cost of renting vs. buying is as simple as looking at your monthly payment.
Having a monthly payment within your budget is important. When you buy you not only pay mortgage, insurance and taxes, you also will need a budget or reserve for repairs, maintenance and upgrades.
Below is an example comparing the long-term cost and financial benefits of buying vs. renting:
Scenario #1: Monthly rent is $1600. Rent increases 1/2% per year.
Scenario #2: Home value $399,000. Annual maintenance $1200. Annual appreciation after 7 years (a conservative) 3%. Selling cost after 7 years 7%. To purchase the house, you borrow 80% ($319,200) at a 4.75% interest rate for 30 years fixed with one point paid to the lender at close of escrow.
RENT: Your monthly payment is $1600. Over 7 years your savings (minus tax credit for purchase) would be $38,000 less paid in rent.
BUY: Your monthly payment is $2140, $540 more than if you rented. HOWEVER, after 7 years of only an AVERAGE appreciation of 3% per year YOUR PROCEEDS at the sale of your home would be $177,000.
This puts the financial benefits of buying in this scenario at $138,000.
What will you be doing in 7 years?
Sell Your Home Online
Posted: October 26, 2011 Filed under: Alternative Lending, Real Estate, Sell | Tags: can't sell my house, need to sell house fast, need to sell my house., Sell house fast for cash, sell house yourself, sell houses fast, sell my home fast, sell my home privately, sell my house now, sell your home now, selling your house fast, selling your house online, tips on selling your house Leave a comment »When I started in Real Estate in 1998, the industry was beginning to transition from printed listing books to the online marketplace we have available today.
In the past fifteen years online property search options and information sources have bloomed and blossomed. Between government and private websites, blogs, videos and online documents, real estate buyers and sellers who want to educate themselves can double and triple check the answer to any question.
Websites like Zillow and Trulia give buyers a chance to leisurely scroll through properties for sale in their neighborhood. While these sites are valuable education tools, and essential marketing tools, for buyers who are ready to buy they do not replace the Agent-only access Multiple Listing Service. Local MLS databases are updated within 24 hours with most property status changes. On other sites, properties may remain listed as “Active” while in fact they were sold weeks or sometimes months before.
If you are selling a house or income property, the best way to get your property in front of active and interested buyers is on the internet. Buyers who are looking for a home in your area can find you from anywhere. Whether you sell your house yourself or use an Agent, there are a number of ways you can use the internet to help you sell your house.
Here are a few sites that will help your house show up for buyers on internet searches:
Trulia.com
Zillow.com
Owners.com
FSBO.com
Realtor.com
Craigslist.org
Backpage.com
Olx.com
Include as much information, and as many great looking photographs as you can in each site listing. You want to get buyers’ attention and keep it for a while as they browse through your photos and details.
The vast majority of buyers walk through a house before they buy it, but seeing a home on the internet is often an important first step. Don’t miss out on this vibrant marketplace. Make sure your home is listed attractively online.
What is Owner Financing?
Posted: September 21, 2011 Filed under: Alternative Lending, Buy, Real Estate, Sell | Tags: how does owner financing work, owner finance contract, owner financed mortgage, owner financing, owner financing home, owner financing homes, owner will carry, seller carry financing, seller financing homes, seller mortgage financing, seller will finance, what is owner financing Leave a comment »Owner financing, also called seller financing, puts the seller in the position of lender during the sale of a property.
Example: Suzy is selling a home she has owned for 17 years. The current market value is 400,000, and she owes the bank only $92,000. Harold & Carrie are purchasing the home. They are bringing $100,000 down payment plus closing costs.
Instead of getting the 300,000 mortgage from a bank, Suzy can create a promissory note which both she and the buyers sign. Suzy then records a mortgage on the property title with the County, which creates a lien on the title, so that Harold & Carrie cannot sell the house without paying her in full. This is how banks protect their mortgages as well.
Instead of getting $300,000 -transaction fees at the close of escrow, Suzy begins receiving mortgage payments from Harold & Carrie according to the terms on the promissory note.
If Suzy needed a big down-payment to buy a new house, this plan would not work for her. However, because she doesn’t need to get cash right away for the equity in her home, she actually makes more money over time. In addition to repaying her equity, Harold & Carrie will pay interest and possibly origination points and/or late fees. Over 30 years, interest payments can exceed the original amount borrowed. Suzy also retains the right to foreclose and take back the home if Harold & Carrie don’t meet their agreement to pay the mortgage.
Owner financing also helps sellers avoid big tax payments because instead of receiving a big lump sum this year, Suzy is receiving smaller sums each year. She will only pay taxes on the money she takes in, which can reduce her tax load.
Owner financing helps buyers who are good credit risks but do not have good credit. Business owners who have no w-2′s to claim income, or people recovering from a financial setback might not qualify for a traditional mortgage these days. Buyers may have to pay a little more for seller financing, but they avoid the trials and tribulations of qualifying for institutional lending.
Owner financing does not have to cover the entire amount being mortgaged. Some sellers lend on part of their equity as a second lender, with a traditional lender in first position.
Also, owner financing does not have to be a 15 year or a 30 year amortized loan. Perhaps Suzy wants regular, amortized payments for five years with a balloon payment (buyers refinance) after 5 years.
In summary, owner financing is possible when a seller has equity and does not need to cash out immediately. To sellers, owner financing offers tax benefits, increased income and a greater pool of qualified buyers. To buyers, owner financing is an opportunity to buy right now even if traditional loans are not an option.
