In today's market and with the tax credits set to expire at the end of the month, sellers now realize that every showing counts and perspective buyers are out in the market and motivated.
Nothing is more frustrating to a seller than getting a lot of showings, but no offers or nibbles. The question then becomes: "Why is this occurring, and how many showings are normal before getting an offer?"
I will answer the latter question first. Usually after the 10 to 15 showings mark, an evaluation is in order. If you have had this many showings and there is no offer, then it is time to find out what needs to be changed.
Which brings us to the first question: "Why isn't the home getting an offer?" First, always have your agent check and go over with you all of the feedback sent in from other agents that have shown the home. Not all agents provide feedback, but do look at all the feedback that was submitted. Sometimes, this tells the entire story on why your home has no offer. Listen to it and adjust to what the buyers and their agents are telling you about your home.
If that does not help, then you can bet your bottom dollar that there are two things that are holding up the sale of your home. Either the listing price is too high or the home is not showing well. Let us say the home is not showing well from the feedback received. Try having a professional stager to come in and give their honest opinion. If you believe they have some worthwhile tips and information, hire them to stage the home to sell.
More than likely though in this market, the reason why your home is not getting an offer is because of the price. Buyers are very knowledgeable and in today's marketplace, it really is coming down to price. Sometimes you are closer than you think on zeroing in on the right price to obtain an offer. Again, if you are getting showings but no offers, you may just be 3-5 percent off. If you are not getting many showings, you may be 5-8 percent off. Additionally, if you are getting no showings at all, you could be 10 percent or more off the real price of your home.
Now is the time to sell and move on to a new, wonderful home!
Friday, April 9, 2010
Monday, March 22, 2010
Top Seven Home Improvement Investments
If you want your home to have "curb appeal" and get a great return on the improvements you make, take note of best home improvement investments; these will make it easier for you to sell your home when you decide on making a move.
Below are some home improvement ideas that are more budget-friendly and will still give you back a good return and value for your money.
Kitchen remodel
Updating your kitchen's look may come in various ways. You can choose to remodel the whole kitchen or just one aspect of it; i.e. lighting, tiles or cabinetry. Kitchens help sell homes, so if a prospective buyer likes your kitchen, there is a great probability the buyer will look more favorably on the whole house. One good example is getting a new kitchen counter top. For a little below $300, you can buy new kitchen counter tops; counter top laminates now come in a wide variety of colors and are stain resistant. You can easily install it yourself; the trickiest part is cutting the whole for the sink. Tile and granite counter tops are more expensive, but will give your kitchen an elegant look that will not depreciate for years to come.
Tile floors
Houses with beautiful and durable tile floors will give would-be buyers the impression of quality. To get the best value from your new tiles, make your they are installed correctly; e.g. the tiles have been laid evenly and securely.
Bathroom remodel or addition
Another investment that will boost your home's value you can do is remodeling or adding furnishings to your bathroom. A new set of light fixtures, faucet or shower will help sell your home faster. Updating your current bathroom's look will also improve your daily routine. A few examples of this type of remodel are artistic sink fixtures, jetted tub, skylight, storage or new cabinetry.
Siding
Siding improvements aside from vinyl are also options for increasing value. You can choose metal, stucco, wood, brick or stone siding. There are many choices of new siding products today that are "high tech"; they insulate, are fire resistant, do not require painting and are weather resistant.
Basement remodel
With a basement remodel, not only do you expand your living space, it is also cost effective. You can convert part of it into a guest suite, children's playroom or home office. You can do also add new windows for additional lighting or add soundproofing to cut down on noise.
Roofing
Choose from a variety of colors that will best compliment your home's exterior. Roofing materials come in different types; metal, wood, slate or tile. By using slate roofing, it can potentially last more than fifty years. Be sure to choose a color that is suited to your particular climate; i.e. houses in more sunny climates should have lighter color roofs that absorb less heat from the sun. Certain roofing materials can also help save on insurance costs.
Below are some home improvement ideas that are more budget-friendly and will still give you back a good return and value for your money.
Kitchen remodel
Updating your kitchen's look may come in various ways. You can choose to remodel the whole kitchen or just one aspect of it; i.e. lighting, tiles or cabinetry. Kitchens help sell homes, so if a prospective buyer likes your kitchen, there is a great probability the buyer will look more favorably on the whole house. One good example is getting a new kitchen counter top. For a little below $300, you can buy new kitchen counter tops; counter top laminates now come in a wide variety of colors and are stain resistant. You can easily install it yourself; the trickiest part is cutting the whole for the sink. Tile and granite counter tops are more expensive, but will give your kitchen an elegant look that will not depreciate for years to come.
Tile floors
Houses with beautiful and durable tile floors will give would-be buyers the impression of quality. To get the best value from your new tiles, make your they are installed correctly; e.g. the tiles have been laid evenly and securely.
Bathroom remodel or addition
Another investment that will boost your home's value you can do is remodeling or adding furnishings to your bathroom. A new set of light fixtures, faucet or shower will help sell your home faster. Updating your current bathroom's look will also improve your daily routine. A few examples of this type of remodel are artistic sink fixtures, jetted tub, skylight, storage or new cabinetry.
Siding
Siding improvements aside from vinyl are also options for increasing value. You can choose metal, stucco, wood, brick or stone siding. There are many choices of new siding products today that are "high tech"; they insulate, are fire resistant, do not require painting and are weather resistant.
Basement remodel
With a basement remodel, not only do you expand your living space, it is also cost effective. You can convert part of it into a guest suite, children's playroom or home office. You can do also add new windows for additional lighting or add soundproofing to cut down on noise.
Roofing
Choose from a variety of colors that will best compliment your home's exterior. Roofing materials come in different types; metal, wood, slate or tile. By using slate roofing, it can potentially last more than fifty years. Be sure to choose a color that is suited to your particular climate; i.e. houses in more sunny climates should have lighter color roofs that absorb less heat from the sun. Certain roofing materials can also help save on insurance costs.
Friday, March 5, 2010
Why it should be a great spring for real estate
A year ago this time, this headline wasn’t imaginable. We were in the throes of one of the worst recessions of our time and the market was at a near standstill.
But what a difference a year makes. Today our market is seeing drastic signs of recovery and we are finally moving in a positive direction. To build on that momentum, I’ve put together my top reasons why I believe it’s going to be a good spring real estate market. Only time will tell if my theory is correct but until then, let’s take a look at the facts:
1. Tax Credits Are Helping Drive the Entry Level Market – Thanks to the $8,000 first time home buyer tax credit and the $6,500 existing home buyer tax credit, we are seeing some very strong signs of recovery in these two market niches. With the impending expiration set for April 30, we anticipate that the next two months will bring a surge of buyers looking to get in on a home prior to the credit’s expiration. That results in good news for our market and will help to decrease some of the surplus inventory and bring greater demand for those entry level sellers.
2. Interest Rates Remain Low – Even though we have seen interest rates tick up a bit in recent months, rates are still relatively low. When rates are low, it means a buyer has increased purchasing power and ultimately can get more home for less money.
3. Affordability Remains High – Due to the market correction we’ve seen over the last few years, affordability remains quite high. What this means is a larger percentage of individuals are able to purchase a home.
4. Despite Unemployment Figures, Housing Demand Will Eventually Rise – Yes, unemployment figures are high comparative to the earlier part of the decade. In fact, on a national level, the latest counts were approximately 9%, according the United States Bureau of Labor. Here in Colorado we’re running at about a 7.7% unemployment rate. While yes I would agree that the number is concerning, on the flipside it means that 93% of Coloradans are employed. If the economic outlook continues to improve, that’s going to boost the confidence of the 93%. That’s a lot of people who can boost housing demand.
5. Colorado is an Awesome Place to Call Home – It sounds a little trite and yes, I may be a bit biased, but it’s a fact. Colorado offers one of the most diverse and unique living experiences and economies in the country. From our beautiful terrain, our diverse blend of activities and our overall thriving economy, we are fortunate to live in somewhat of a thriving microclimate comparative to the rest of the country. That all adds up to a demand for housing that will help to drive our market towards recovery, possibly sooner than other states.
Let me remind all of us that the current housing is in a place of recovery. Overall what we’re seeing is a tale of two markets. The luxury market is generally seeing increased inventory and price discounting is the norm. Last I checked we had far above a six-month supply of inventory of our luxury homes. In some cases anywhere from 9-12 months+.
However, if you look at our entry level market, things really haven’t slowed down much at all. In fact, in many cases, they’re rising! We’re still seeing lots of interest for well-priced properties in good neighborhoods.
But what a difference a year makes. Today our market is seeing drastic signs of recovery and we are finally moving in a positive direction. To build on that momentum, I’ve put together my top reasons why I believe it’s going to be a good spring real estate market. Only time will tell if my theory is correct but until then, let’s take a look at the facts:
1. Tax Credits Are Helping Drive the Entry Level Market – Thanks to the $8,000 first time home buyer tax credit and the $6,500 existing home buyer tax credit, we are seeing some very strong signs of recovery in these two market niches. With the impending expiration set for April 30, we anticipate that the next two months will bring a surge of buyers looking to get in on a home prior to the credit’s expiration. That results in good news for our market and will help to decrease some of the surplus inventory and bring greater demand for those entry level sellers.
2. Interest Rates Remain Low – Even though we have seen interest rates tick up a bit in recent months, rates are still relatively low. When rates are low, it means a buyer has increased purchasing power and ultimately can get more home for less money.
3. Affordability Remains High – Due to the market correction we’ve seen over the last few years, affordability remains quite high. What this means is a larger percentage of individuals are able to purchase a home.
4. Despite Unemployment Figures, Housing Demand Will Eventually Rise – Yes, unemployment figures are high comparative to the earlier part of the decade. In fact, on a national level, the latest counts were approximately 9%, according the United States Bureau of Labor. Here in Colorado we’re running at about a 7.7% unemployment rate. While yes I would agree that the number is concerning, on the flipside it means that 93% of Coloradans are employed. If the economic outlook continues to improve, that’s going to boost the confidence of the 93%. That’s a lot of people who can boost housing demand.
5. Colorado is an Awesome Place to Call Home – It sounds a little trite and yes, I may be a bit biased, but it’s a fact. Colorado offers one of the most diverse and unique living experiences and economies in the country. From our beautiful terrain, our diverse blend of activities and our overall thriving economy, we are fortunate to live in somewhat of a thriving microclimate comparative to the rest of the country. That all adds up to a demand for housing that will help to drive our market towards recovery, possibly sooner than other states.
Let me remind all of us that the current housing is in a place of recovery. Overall what we’re seeing is a tale of two markets. The luxury market is generally seeing increased inventory and price discounting is the norm. Last I checked we had far above a six-month supply of inventory of our luxury homes. In some cases anywhere from 9-12 months+.
However, if you look at our entry level market, things really haven’t slowed down much at all. In fact, in many cases, they’re rising! We’re still seeing lots of interest for well-priced properties in good neighborhoods.
Sunday, February 28, 2010
Checklist for first-time homebuyers
Good questions to ask yourself when embarking on a new home search.
1. Where do you want to live?
Do you want to live close to your family? What kind of schools do you want your children to go to? How important is it to be close to shopping, work, hospitals, community amenities, entertainment? Is a morning commute important to you?
Looking for a home really starts with looking for a neighborhood. Deciding where you want to live will save you a lot of time as well as miles on your odometer if you narrow your search in the beginning.
2. What kind of home do you want or need?
Before you start looking at home, it's a great idea to determine not only what you want in a home, but what you need. It focuses the hunt for a home and saves time because you are only looking at homes that meet your criteria.
3. How long do you expect to live in your new home?
If you plan on living in your new home for only a few years, or if you do not have children, then proximity to schools may not be an issue, but resale value will be. On the other hand, if you have a family and plan on staying put for 10 or more years, schools and home size will be your priorities.
4. What don't you like about where you are living now?
Making a list of what you do and do not want in a home will also help you weed out homes. If there are two decision makers, make sure you have common needs and wants and a couple "must haves."
5. What is your lifestyle?
Do you work from home? Do you entertain often? Are you a gardener? These are all important questions to ask yourself so you may further narrow down your search for a home. Also remember to keep your needs list somewhat flexible in case you cannot find a home in your price range with all the amenities you want. Put the list in order of importance. For example, an eat-in kitchen may be more important to you than a fireplace.
6. How much home can you afford?
The best way to know how much home you can afford is to find out how much money you can qualify to borrow. There are two thing you will wan to consider before talking with a home lender. Check your credit by getting a copy of your credit report. This determines your credit score for the three major credit bureaus, make sure to check them thoroughly for any discrepancies and errors. Also calculate how much of a monthly mortgage payment you're comfortable paying. You may qualify for a higher loan amount, but feel more comfortable paying less in your monthly budget. Think about items like home maintenance, taxes, insurance and association fees, if applicable.
Thursday, February 18, 2010
How Important is a Home Inspection
Your buyer's offer has been accepted and it is time for the inspection. Often times home inspections go well, but that also depends on how well the current owners take care of their home. Is there deferred maintenance? Did the seller refinish an unfinished basement without pulling any permits to do so? What if there are high radon levels?
Whether you are buying a $100,000 home or a $1,000,000 one, getting a home inspection is perhaps one of the single-most important checks you need to conduct to make sure the home is safe and secure. If you are selling a home, however, is having an inspection as important? Some people might say no, but below presents some strong reasons why you should get an inspection, whether you are the buyer or the seller.
Buyer reasons:
Peace of mind — Puts the buyer’s mind at ease that the home is in good shape.
Renegotiate – If problems do arise, the buyer can negotiate a lower price or ask the seller to make repairs.
Opt-out — If the problems are too big or unsettling, the buyer can opt-out of buying the home.
Future needs — Buyers can learn about potential maintenance and upkeep.
Seller reasons:
Smooth sale – Sellers can deal with any issues early that could impede the sale of their home.
Make repairs — Sellers can repair problems before putting the house on the market.
Help set/increase price — By making repairs, it will help set the price of the home and could even enhance the value.
Transparency — Having a pre-inspection report available for buyers tells them that the seller has nothing to hide.
As you can see, having a home inspection is crucial for both buyers and sellers and the cost is usually only a few hundred dollars— well worth it to provide peace of mind and to know what kind of house you’re getting and the condition it is in.
Whether you are buying a $100,000 home or a $1,000,000 one, getting a home inspection is perhaps one of the single-most important checks you need to conduct to make sure the home is safe and secure. If you are selling a home, however, is having an inspection as important? Some people might say no, but below presents some strong reasons why you should get an inspection, whether you are the buyer or the seller.
Buyer reasons:
Peace of mind — Puts the buyer’s mind at ease that the home is in good shape.
Renegotiate – If problems do arise, the buyer can negotiate a lower price or ask the seller to make repairs.
Opt-out — If the problems are too big or unsettling, the buyer can opt-out of buying the home.
Future needs — Buyers can learn about potential maintenance and upkeep.
Seller reasons:
Smooth sale – Sellers can deal with any issues early that could impede the sale of their home.
Make repairs — Sellers can repair problems before putting the house on the market.
Help set/increase price — By making repairs, it will help set the price of the home and could even enhance the value.
Transparency — Having a pre-inspection report available for buyers tells them that the seller has nothing to hide.
As you can see, having a home inspection is crucial for both buyers and sellers and the cost is usually only a few hundred dollars— well worth it to provide peace of mind and to know what kind of house you’re getting and the condition it is in.
Wednesday, January 13, 2010
Why should I fix a dripping faucet?
I received this information from my inspector. Way to look at the big picture. It seems if you have a dripping faucet and cannot fix it on your own, go ahead and call that plumber! You will be saving money in the long run and of course, water, which is a great resource in need of conservation. 
Drip Calculator: How much water does a leaking faucet waste?
Check your faucets at home — do any of them drip? Well, maybe it’s just a small drip — how much water can a little drip waste? True, a single drip won’t waste much water, but think about each faucet in your home dripping a little bit all day long. What if every faucet in every home on your block … in your town … in your state also dripped? The drips would add up to a flood of water wasted down the drain.
There is no scientific definition of the volume of a faucet drip, but after measuring a number of kitchen and bathroom sink faucets, the volume seems to be between 1/5th and 1/3rd if a milliliter (mL). Drips from bathroom tubs come in a bit more, though, at about 1/2 mL. So, for our calculations below (numbers are rounded), we are going to use 1.4mL as the volume of a faucet drip. So , by these drip estimates:
One gallon: 15,140 drips
Looking at it this way, it seems like that drop of water down the drain is pretty insignificant. But, as you can see by using the form below, all those drops flowing in “real time” can really add up to a flood.
Approximate Water Wastage
Drips per day: 259,200
The above information and calculator can be found at http://ga.water.usgs.gov/drought/dripcalculator.html
Drip Calculator: How much water does a leaking faucet waste?
Check your faucets at home — do any of them drip? Well, maybe it’s just a small drip — how much water can a little drip waste? True, a single drip won’t waste much water, but think about each faucet in your home dripping a little bit all day long. What if every faucet in every home on your block … in your town … in your state also dripped? The drips would add up to a flood of water wasted down the drain.
There is no scientific definition of the volume of a faucet drip, but after measuring a number of kitchen and bathroom sink faucets, the volume seems to be between 1/5th and 1/3rd if a milliliter (mL). Drips from bathroom tubs come in a bit more, though, at about 1/2 mL. So, for our calculations below (numbers are rounded), we are going to use 1.4mL as the volume of a faucet drip. So , by these drip estimates:
One gallon: 15,140 drips
One liter: 4,000 drips
Looking at it this way, it seems like that drop of water down the drain is pretty insignificant. But, as you can see by using the form below, all those drops flowing in “real time” can really add up to a flood.
Approximate Water Wastage
Drips per day: 259,200
Liters per day: 65
Gallons per day: 17
Gallons per day: 17
Gallons per year: 6,248
The above information and calculator can be found at http://ga.water.usgs.gov/drought/dripcalculator.html
Wednesday, January 6, 2010
What documents do I need when purchasing a home?
The new year is under way and many homebuyers, first time or otherwise, are thinking about purchasing a home. With the holidays behind us and spring right around the corner, many new listings will be coming on the market. I have been finding in our local Denver metro market that homes in good condition and priced right are selling quickly, often getting multiple offers.
Since no document and stated income loans are now a thing of the past (thankfully), this article can help get you ready and make the loan process faster and easier. By being prepared, you will be ready to submit an offer and be more likely to get the best home available when you find it.
Have these items available when you are prepared to complete your mortgage application:
Proof of income
You will usually be required to show original pay stubs for the last 30 days.
Copies of your W-2 forms
These are required for each applicant on the mortgage. This will help your lender verify employment and income history.
Copies of asset information
This includes any accounts where money may come from for closing. You may need to provide statements for your savings, checking and 401(k) accounts; as well as investment records for any mutual funds or stocks.
Credit history
When you apply for a mortgage, it is necessary for lenders to pull your credit report to know how credit worthy (or risky) you are as a borrower. Be prepared to give your Social Security number and date of birth.
When the offer is written, the lender will need a copy of the signed purchase agreement and a copy of the earnest money deposit. The lender will also need to see that the home you are purchasing has clear title and that you have obtained homeowners insurance for the home.
With the recent credit crunch in the last couple of years, many lenders will verify and re-verify. It is not personal, they just want to make sure that you are fully prepared to carry a mortgage and have your debt to income ratios in order. That way, you will feel comfortable with your monthly payment and still be able to enjoy life outside your home without being "house poor."
Since no document and stated income loans are now a thing of the past (thankfully), this article can help get you ready and make the loan process faster and easier. By being prepared, you will be ready to submit an offer and be more likely to get the best home available when you find it.
Have these items available when you are prepared to complete your mortgage application:
Proof of income
You will usually be required to show original pay stubs for the last 30 days.
Copies of your W-2 forms
These are required for each applicant on the mortgage. This will help your lender verify employment and income history.
Copies of asset information
This includes any accounts where money may come from for closing. You may need to provide statements for your savings, checking and 401(k) accounts; as well as investment records for any mutual funds or stocks.
Credit history
When you apply for a mortgage, it is necessary for lenders to pull your credit report to know how credit worthy (or risky) you are as a borrower. Be prepared to give your Social Security number and date of birth.
When the offer is written, the lender will need a copy of the signed purchase agreement and a copy of the earnest money deposit. The lender will also need to see that the home you are purchasing has clear title and that you have obtained homeowners insurance for the home.
With the recent credit crunch in the last couple of years, many lenders will verify and re-verify. It is not personal, they just want to make sure that you are fully prepared to carry a mortgage and have your debt to income ratios in order. That way, you will feel comfortable with your monthly payment and still be able to enjoy life outside your home without being "house poor."
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