Real Estate Articles

Spring-cleaning takes on an entirely new level of importance for those who intend to put their homes on the market.
To attract buyers, it’s very important to make a great first impression. Whether you have already listed your home or you just want to keep your options open, it’s easy to make the most of your spring cleaning with these helpful hints:

Light and Bright: In many parts of the country spring can be a great time of year to take photographs of your home even if you don’t intend to put it on the market right away. Not only does the natural lighting and lush green grass remind everyone of warmer days, but it provides a better view of the condition of the property. Be sure to trim the hedges and touch up paint or other outdoor maintenance prior to taking the picture. Simply store the photos in a safe place until it’s time to list the property.

Maintenance Made Easy: Deferred maintenance is a major consideration for new buyers seeking to make the most of every dollar. Unfortunately, long winters can take a toll on even the most well-maintained property. Unsightly carpet stains, barren landscaping and crowded storage can give the impression of a property in need of attention. Make sure your property looks its best by doing routine maintenance, including carpet and tile/grout cleaning and lawn maintenance and completely clearing away all types of clutter.

Pay Attention to Details: Details make a difference when it comes to making your home look, feel and smell fresh and clean. One of the most often overlooked areas of concern for new home shoppers is smell. Research shows smell is a powerful tool that has a tendency to work for or against sellers. Avoid harsh chemical odors or perfume-type fragrances such as room deodorizers. Opt for new enzymatic cleaning products that neutralize odors throughout the house. Pay special attention to carpets, upholstery and air ducts. Not only will it help reduce common irritants, but you can breathe easy knowing prospective buyers won’t be confronted with unpleasant pet odors or musty storage smells.

Obtaining the services of a professional real estate agent is the first step in selling your home. In today’s tough economic times, though, every little bit helps. Following are five ways to reduce the risk of last-minute mishaps:

1. Make It Easy to Move: Small things can add up, especially when making a major move. Differentiate your property by offering to pay for secure storage, rental trucks or even a hotel room. Nearly everyone dreads having to move, so making it as easy as possible is a sure way to please even the most difficult buyer.

2. Pay for a Mini-Makeover: If the property is in need of a few repairs or upgrades, seal the deal by including funds, labor or supplies for a mini-makeover. It doesn’t have to cost a lot. For example, include a few gift cards and a couple of days of labor, help paint a room or put in new landscaping.

3. Offer Monetary Motivation: Provide an additional incentive to both the buyer and agent by offering a cash bonus for closing by a given date. You might be surprised how well this works, especially when trying to sell a home during a difficult time.

4. Entice Them With Incentives: Help prospective buyers control costs by including innovative incentives like a home warranty package or energy-efficient upgrades. A home warranty is a great way to provide additional protection against unanticipated expenses, especially when working with first-time homebuyers or others on a limited budget. Other attractive options include energy-efficient upgrades like new LED lighting, on-demand water heaters or new appliances.

5. Rent or Lease Options: Sometimes the property is perfect, but the timing isn’t. Instead of letting the entire deal turn sour, sweeten things up with the use of a well-executed lease. Allow the buyers to move in early if they need the home sooner than anticipated, or lease the property back from them if they need to delay a few months after closing.

Deciding whether to buy a new home or renovate your existing one is no easy task. There are pros and cons to both options.

However, it boils down to one simple question: What do you want out of it?

If space is the problem and you love your neighborhood, an addition might well be the answer.. A floor plan that no longer works for your family, or outdated kitchens and bathrooms, may point to a renovation. On the other hand, if you are looking for a better neighborhood, want to be closer to family, and are looking for more amenities, then buying could fit the bill.

For the most part, empty-nesters looking to downsize to a senior-friendly home with like-minded neighbors are buyers, not renovators.

The issue of timing is of utmost importance in making your decision.

An addition, rebuild or major renovation will almost always take more time and be more disruptive than a move.

You can move from the nightmare on 42nd Street to your dream house in less than two months, while a major renovation could take up to a year.

Moving is also generally less costly.

The decision is a wrenching one. Don’t expect an easy answer.

Just make sure you’re getting what you want and your decision will have been the right one.

Today’s typical family living in a three-bedroom, two-story home spends about $2,500 in energy costs each year. To better manage those costs, consider conducting your own energy audit.

First, find out how much energy is being used, by keeping a log and reading your meter each week. At the end of four weeks, add up the kilowatts used and divide the total by the number of days to get your average daily usage. Once the audit is complete and changes are made, monitor usage again. The next step is to walk around the house and check for the following:

Inside

•    Any air leaks and gaps at baseboards and where the walls and ceilings end up joining

•    Air leaks around electrical outlets, switch plates, window frames and baseboards

•    Gaps and cracks in weather stripping around doors, fireplace dampers, attic hatches and air conditioners

•    Gaps around pipes and wires

•    Air leaks from mail slots

•    Rattling from windows and doors, and daylight leaking in around frames

Outside

•    Air leaks where two building materials meet

•    Improperly caulked doors, windows and outdoor outlets

•    Cracks in the mortar, foundation or siding

•    Missing insulation in the home’s structure

•    Improperly functioning heating/cooling equipment

•    Filters that need to be replaced on forced-air furnaces

For years, economists have used the study of behavioral finance to explain the role emotions play in investment decisions. Their observations have turned up some interesting results.

First, they’ve found that while investors know very well that the stock market has its ups and downs, some will still base investment decisions on the assumption that what’s happening now will continue in the future. For example, the home buyer driven by a hot market will engage in bidding wars, assuming that the market will continue to heat up. The buyer believes he or she has to buy now or lose out.

Second, they’ve found that other investors follow the “anchoring” concept, in which they hold off selling an asset in hopes that it will increase in value despite evidence to the contrary. In this scenario, home buyers stubbornly anchor themselves to an offering price even though the seller and buyer are only a few hundred dollars apart.

Third, they’ve found that some investors buy too much house for their budget or they forget about the crumbling foundation, because they love the seller’s decor.

Fourth, they’ve found that other investors fail to see beyond the clutter as to possibilities of a home.

To prevent such problems, the emotional home buyer needs the perspective of a real estate agent. Such a professional can separate the emotion from the investment so your dream house won’t become a nightmare.

Planning to buy in 2011? Preparation is the key to getting the best deal when shopping for a new home. Following are some tips to help you get started:

Define Needs Versus Wants: Make a list of your needs versus wants in the new home. For example, if you have a large and growing family then four bedrooms might be a necessity, while a pool might be negotiable.

Select a Location: Spend some time driving around town, researching schools and local amenities, crime rates, and other safety considerations. Select three to five areas to focus your search on.

Get Pre-Qualified: Find out how much you will be eligible to borrow and begin the paperwork so you are prepared to move quickly should a great deal arise.

Contact an Agent: Ask family and friends, perform a search for real estate agents that specialize in your target area, or consider using the services of a buyer’s agent. Let them know the price range you have been approved for, the type of home and zip codes of interest.

Read, Set and Search: Sign up for automatic listing notifications and begin viewing prospective properties online. Ask your agent for additional photos, virtual tour links and a Comprehensive Loss Underwriting Exchange report, if available, which gives the insurance claim and loss history for residential properties. Once you find a property of interest, take a few minutes to google it before actually driving out in person. It’s often easy to see areas of concern from an aerial view as opposed to in person.

When a new year starts, many people resolve to lose weight, give up smoking and spend more time with the family. Others add selling the house to their list of resolutions. Following are eight tips to help you decide whether or not to sell, and how to go about it:

1. Take a good hard look at your home. What are its strengths and weaknesses? Make a list.

2. Watch for sale signs in your neighborhood and go to open houses. Start thinking about how your home compares.

3. What have other similar houses in the area sold for? Most homeowners are a bit unrealistic about what their house is worth. You want to be on the same wavelength as your real estate agent when the time comes to set a price.

4. Research the market. How long do houses stay on the market in your neighborhood? Is it a hot market for sellers right now?

5. Know what it will cost to sell your house. Will you pay for a home inspection, legal costs or renovations?

6. Spruce up the house. You know you’ll have to do it eventually, so why not present your house in its best light now? De-clutter and finish uncompleted do-it-yourself projects. Outside, tidy up the property, sweep the steps and change the light bulbs. It will allow others to see your house in a new light.

7. Select a real estate agent who is familiar with your neighborhood and ask friends and neighbors for recommendations. Word-of-mouth is the best way to source a realtor with a proven track record.

8. Take your time. Selling your home for the best price may take longer than you anticipate. Don’t add to the pressure by setting unrealistic time limits.

Whether you are relocating, purchasing a new property or simply needing to move ahead, it’s sometimes necessary to sell a home fast.  Unfortunately, that is sometimes easier said than done.  There are however several steps that you can take to help move your property quickly.

Price: The number one reason most homes do not sell is that they aren’t priced competitively. It’s important to price the home right when first putting it on the market. The right price attracts attention. Once buyers see a home on the listings month after month, they assume something is wrong.

Bad Impression: Clutter, grime and lack of cleanliness are three huge reasons why your home might not sit well with potential buyers. Ask your agent for an honest appraisal of the property, and then take action before listing.

Taxes, Insurance and Homeowner Association (HOA) Fees: High property taxes, inability to obtain affordable insurance and escalating HOA fees can dramatically impact the desirability of a given property. Take time to shop around for the best insurance rates, provide a complete breakdown of services and other benefits derived from the HOA fees, and consider petitioning for an evaluation of property taxes if appropriate.

Showing Restrictions: Don’t become your own worst enemy. Try to remain as flexible as possible when showing the home. It might take a bit more effort, but it is well worth the reward when trying to sell a home quickly.

The list of things that can be wrong with a new home is endless, so don’t sign on the dotted line until a reputable home inspector gives you the all clear.

The cost of an inspection is nothing compared to your purchase price. It’s also nothing compared to what you will pay for unexpected repairs if you don’t have a home inspection.

Most houses have defects or need repairs, and many problems can be serious. A home inspection will point out any safety hazards and alert you to major repairs that will be necessary.

A home inspector is a jack-of-all-trades who is familiar with everything from structures and electrical and plumbing systems to insulation, heating and cooling systems, and roofs.

During an inspection, the inspector will make an intensive visual examination of your home, concentrating on areas such as the foundation; exterior walls and roof; attic, basement and garage; electrical, plumbing and heating systems; and the home’s interior.

The inspector should then present a written report that details findings and suggests repairs. It’s always advisable that you attend the inspection, which may take two to three hours. But don’t expect the home inspector to provide cost estimates. Your best bet is to contact two or three contractors.

When looking for a qualified home inspector, don’t overlook recommendations from friends or your real estate agent, but be aware that there are other resources to help you.

The National Association of Home Inspectors Inc. (NAHI) provides standards of practice and a code of ethics, as well as training courses for potential members. Some states now license home inspectors, but many do not. In states that don’t, it’s important to establish that the inspector is qualified and is a member in good standing of an organization such as NAHI. The Better Business Bureau can also help you.

Remember that the inspection report won’t guarantee you’re set forever once the suggested repairs are completed. Houses still need regular maintenance and repair, and as the homeowner, that’s your job.

The media is filled these days with news about distressed properties. Following is a tutorial on distressed properties to help you separate some of the fact from fiction:

Distressed Properties Defined: Contrary to popular opinion, distressed properties are not always in bad shape. In fact, the term “distressed” has less to do with the condition of the house than it does with the status of the mortgage. Basically a distressed property is one that the bank has foreclosed or for which the current mortgage is worth more than what the owners are able to ask when selling.

How to Find a Distressed Property: Finding a distressed property is actually a simple process these days. Research indicates that approximately 25% to 45% of all properties recently sold may be considered distressed. With an estimated 300,000 more of these properties entering the market each month, it’s a trend likely to continue into the foreseeable future.

Benefits of Buying a Distressed Property: One of the benefits of purchasing a distressed property is the ability to save a substantial sum over the previous selling price. Combined with historically low interest rates and other possible incentives, distressed properties offer a unique buying opportunity. Lower sales prices often mean decreased closing costs, reduced private mortgage insurance and even lower insurance and taxes.

Cautionary Considerations: Buying a distressed property isn’t without drawbacks. They are often sold as-is and may require substantial repairs or maintenance. Likewise, purchasing a distressed property may require more time, especially in the case of a short sale. Waiting for bank approval may result in missed opportunities for other prospective properties. It’s essential to perform due diligence and understand the total cost of purchasing a distressed home, including condo or homeowners association fees. Working with a qualified agent is one way to save money and protect yourself against the pitfalls associated with distressed properties.

Whether you are relocating, purchasing a new property or simply needing to move ahead, it’s sometimes necessary to sell a home fast.

Unfortunately, that is sometimes easier said than done, especially during a buyer’s market.

There are however several steps that you can take to help move your property quickly.

Work with an Experienced Agent: A surprising number of people try to sell a home on their own. Most turn to a professional agent after a few months, but the damage is already done. When time matters, go with a pro right from the start. Remember, the agent is acting like a publicity manager for the property.

Tackle Those Tough Jobs: Clear out the clutter and yard debris and then ask your agent for an honest appraisal of the property. Be sure to complete the “honey do” list to avoid competing against foreclosures and other homes with deferred maintenance. Not only will the home show better, but photographs, virtual tours and open house events will generate more interest when the home looks its best.

Invest in an Inspection: For approximately $400, an inspection might be one of the best investments you make. It demonstrates the condition of the home to prospective buyers and helps ease their minds. If you have access to a recent survey and appraisal, be sure to include those in the information package given to prospective buyers.

If you’re looking for the perfect house in a good neighborhood at a great price, you may have to compromise to get what you want. Following are some things to consider:

Décor: You may cringe at the ’60s shag rugs, flocked wallpaper and lime green living room, but cosmetic changes cost very little and can transform a place.

Appliances and Fixtures: The avocado-colored appliances and brown bathroom fixtures may cost more to fix, but if this is your dream house it’s a sound investment. An addition will also boost the value of your property while making it more livable for you and your family.

However, there are also unseen problems to be concerned with, like mold, critters and cracked foundations.

Following are some things to look for before you sign on the dotted line:

• Signs of water damage
• Out-of-date fuse boxes
• Recent – and badly done – patching jobs (inside and out)
• Signs of neglect such as cracked walkways and sagging decks
• Problems such as sagging roofs, shingle loss or chimneys with bricks missing; in the attic there may be traces of animal life or damp patches
• Ill-fitting windows, outside walls that feel icy in winter and other possible signs of insulation problems

With the popularity of online photographs and virtual tours, some people are of the opinion that an open house is a waste of time. However, sellers should think twice before discounting this time-tested strategy. Following are some things you need to know about hosting an open house:

What Is an Open House?

Unlike an individual showing, an open house allows anyone to view the home, whether they currently work with an agent or not. It’s an excellent way to attract buyers new to the market or just beginning a search, those without an agent, and even sporadic buyers who aren’t necessarily in the market but share the information with family and friends.

Who Should Host an Open House?

Hosting an open house is not for the novice. Real estate agents not only provide the marketing, scheduling and even security advice, but make sure the home is properly presented to prospective buyers who decide to drop in and see the home.

How Do Open Houses Sell a Home?

Higher-Priced Homes: An open house is often effective in helping to sell homes priced above the median average for a given location, especially when used in combination with the Multiple Listing Service and online listings.

Tough Market: In 2005, more than 50% of sellers used an open house, with various degrees of success. However, that rate has declined in part due to the numerous foreclosures on the market. Unfortunately for sellers, trying to compete on price alone is difficult – and costly. Instead, use an open house to showcase the property and the neighborhood. It’s one more way to help your house stand out from the crowd in a buyer’s market.

Unique or Uncommon Features: Without doubt, one of the most important reasons to hold an open house is to showcase a unique property or special features that are difficult to communicate or conceptualize. Sometimes it really is necessary to see a property to believe it, and an open house allows the buyer to fall in love at first sight by experiencing it firsthand.

If you’re looking to buy a home that you can live in forever, you should consider future-proofing.

Future-proofing aptly describes the process of buying a home with an eye to the future.

It’s about where you are in your life and where you’re going.

Are you a twosome thinking about becoming parents? Are you a family with kids who will soon leave the nest? Or are you a savvy buyer looking for location? In all cases, future-proofing is the way to go.

First, check for amenities that suit your current and future lifestyles. If you’re family-conscious, that means more than establishing whether there’s a school nearby. It means ensuring that there are lots of young families in the neighborhood, as evidenced by parked bikes, swing sets and toys. You’ll want to make certain there are parks nearby, as well as libraries, recreation centers and cultural activities. A daytime scouting trip should give you a feel for this, but as important is an evening drive. Those charming bars and cafes that lend sophistication to a neighborhood in daytime may become sources of noise and mischief at night.

Safety should be a key concern. Can the kids safely walk to school? Are there bike lanes or a block parent program? There should be sidewalks on at least one side of the road, maybe traffic calming devices and, of course, good street lighting. Does the neighborhood feel safe? While you might be happy that there are stores and restaurants in your new area, if you’re planning to be there for the long term, be sure to check with the city planning department to ensure that there are no upcoming unpleasant surprises, such as a new highway two blocks over. Your real estate agent can help with this.

Think sustainability. A neighborhood that preserves its natural assets and prizes green space will be a good place to live for a long time. Old shade trees, big yards and gardens, and walking trails are not only environmentally sensible, but make the neighborhood a prettier place to live, now and in the future.

Anyone can put a “For Sale” sign on a property, but an experienced real estate agent makes all the difference when it comes to marketing and promoting a property. Following are some examples of what goes on behind the scenes in promoting a property:

1. Communication: Writing a description that sells isn’t as simple as it might sound. Presenting a property in the best light while maintaining professional objectivity is as much an art as a skill. Experienced agents understand what buyers are looking for and how to communicate with a specific target market.

2. Contacts: If the most important aspect of property valuation is location, contacts must surely be the most important aspect of selling a property. Real estate agents are expert networkers with extensive contacts within the community. In addition to listing the home on the Multiple Listing Service, personal websites and other Internet venues, real estate agents often send out mailers to prospects on their personal client lists. Using an agent often allows sellers to close on properties months faster than trying to go it alone.

3. Confidence: It’s no secret that people are more inclined to do business with someone who puts them at ease and instills a sense of confidence. Buyers and sellers alike often feel more relaxed, free to ask questions and open to negotiation when working through a third party. Agents work closely to show the home, provide valuable feedback and create a win-win situation that benefits everyone involved.

When you find your dream home, it’s only natural for your heart to beat a little faster. But you still need to get the best value for your dollar. Following are six ways to make you a happy and savvy homebuyer:

1. Find the Right Real Estate Agent:

An agent can be your most valuable asset. Word of mouth is good, but if you’re interested in a particular location take note of sold signs in the area to find a real estate agent who has special knowledge of the neighborhood.

2. Make a List of Needs and Wants:

Prioritize them because you likely won’t find a house with everything. Lenders, agents and the Canada Mortgage and Housing Corporation have online checklists that will help you focus on the important things.

3. Define What Value Means to You and Your Family and Follow Through:

If you believe you’ve found the right neighborhood, don’t just proceed with an offer. Make personal visits on different days and times. Talk to the neighbors and research the facilities and schools in the area.

4. Look Closely at the Boring Things:

Updated wiring in an older home is a great plus, and a basement that’s been flood-proofed is all-important in certain areas. However, that shiny, new siding you see could be hiding a not-so-new problem.

5. Energy Efficiency:

Power is only going to cost more in  the future, so look for an energy-efficient home. Some homes have an energy rating tag on the electrical panel. Look for a high rating. If there isn’t a rating tag, ask to see previous utility bills.

6. Don’t Overbuy for the Neighborhood:

Sellers may feel their $100,000 kitchen renovation should net them a 90% return, but if the neighborhood comprises modest 1970s bungalows with small kitchens, you may have trouble getting back the premium you paid when it comes time for you to sell.

For many, the dream of owning a rural “home away from home” is something that began in childhood.

Before you buy, however, you might want to answer the following questions:

How Far Away Is It? If you must travel two days by rail, then take a four-hour hike through the woods with a toddler strapped to your back, you may want to seriously reconsider the purchase. Ideally, you should be within a few hours of your home. If electricity is a serious consideration, you should make it clear to your real estate agent that you are not interested in properties off the grid.

How Close Are the Neighbors? Buyers typically want a private retreat as they’re trying to get away from the crowded urban sprawl. It’s okay to have neighbors as long as the surrounding trees give a reasonable illusion of privacy.

Is It Worth It? As a buyer, you must determine whether the value you’re paying is worth the return for your family. There are annual property taxes and insurance as well as the cost of upkeep to consider. Many buyers consider renting the property out for some additional income. However, there may be tax implications to renting your home, so seek professional advice from your tax advisor

By taking a good, hard look at the travel requirements, the modern luxuries and the financial aspects of rural home ownership, the dream of spending peaceful summers at the cabin can come true.

Renovating your home is all about adding value to the property. But it can be a jungle out there. Following are seven ways to maximize the return on your renovation investment so that you see a payback and not a loss when you sell:

1. Make Your Kitchen or Bathroom Sing: A sparkling up-to-date kitchen or bathroom with high-end materials, lots of moving-around room and a neutral color scheme will net you a return of between 75% and 100%.

2. Change Up Your Surfaces: Painting the inside or outside or both is an inexpensive fix with a big payback of 50% to 100%. Even better, replace the siding. It’s an excellent way to add value to your home.

3. Install Hardwood Floors: Some experts say you’ll get a return of  only between 50% and 75% for taking up the old carpeting and laying down hardwood or high-end laminate, but anecdotally real estate agents say clients are looking for hardwood and  that old, stained carpets may be a deal breaker.

4. Renovating the Unglamorous: Replacing a furnace or roof actually pays off big-time, with a return of 50% to 80% of your investment.

5. Add-ons: Make the attic into a bedroom to die for, or add a family room. You could get back 50% to 75% when you sell. Turning an unused room into a home office can also raise the value of your home in the eyes of potential buyers.

6. Outdoor Living: Buyers are looking for beautiful outdoor spaces. The addition of a deck alone can net you a 50% to 75% return. A sunroom can also add square feet to your living space, but don’t forget to make the transition between indoors and outdoors positively seamless.

7. Pay Attention to the Don’ts: Don’t follow the latest trend when planning your renovation. Go for timelessness in paint, fixtures and countertops. But don’t add a $100,000 kitchen to a $250,000 house and expect to recoup your investment. A renovation that suits your house and is done well with quality materials will make your family happy while adding value for future buyers.

Thanks to the Internet, virtual tours and Google Maps, it’s easier than ever to locate prospective properties when searching for real estate. But before you try to go it alone, it’s essential to understand the other advantages real estate agents bring to the table.

Experience: One of the biggest benefits of working with a local real estate agent is the level of experience brought to the table. Agents make it their business to know upcoming changes, the latest listings and even important trends that can influence your purchase.

Excellent Service: From skilled negotiations to compiling a list of prospective properties, real estate agents save time and money throughout the entire transaction. The average real estate agent is often able to negotiate substantial savings from the price of a home while increasing the ability of both parties to obtain the most meaningful milestones.

Education: The real estate market has undergone dramatic changes in recent years, with many more on the horizon. Real estate agents must take a specified number of continuing education credits every year to remain up-to-date on legislative changes and other procedures.

Expert Advice: Real estate agents do more than just list homes on the Multiple Listing Service. They also act as experts within the local market. In fact, the more specialized the type of property, the more important an agent tends to become. From condominium to commercial building, farm or single-family home, it’s essential to obtain advice provided by a reputable agent.

If you’re hiring a home inspector prior to signing off on a piece of property, there are a few things you might want to keep in mind.

Following are some important questions to ask:

Home Long Have You Been Working in the Field?

An inspector should be able to provide references and a history of experience. It’s also important to know about his or her background.

What Experience Do You Have With Residential Inspections?

A background in engineering or construction is a bonus, but if the inspector has never worked on a home, it won’t help much.

How Much Time Does an Inspection Take?

A thorough home inspection should take between two and three hours, depending on the size of the home.

Special considerations need to be taken when looking at wood-burning fireplaces and swimming pools.

What Will the Inspection Cost?

The cost of the average home inspection is $300 to $500, depending on the region, size of the home and the complexity of the building systems that are used.

What Type of Inspection Report Is Provided?

Some inspectors provide a big binder full of information, but if you don’t understand the report, that information is essentially useless. The report should be clear and help guide your final decision to purchase the home.

Do You Belong to a Home Inspection Association, and Do You Attend Continuing Education Courses?

Building technologies are constantly evolving, so an inspector should be educated to assess all aspects of a home, regardless of its age.

Membership in an organization like the American Society of Home Inspectors means the inspector has been certified and approved by that organization