Category Archives: Housing

Pricing Your Home

  • Consider comparables. What have other homes in your neighborhood sold for recently? How do they compare to yours in terms of size, upkeep, and amenities?
  • Consider competition. How many other houses are for sale in your area? Are you competing against new homes?
  • Consider your contingencies. Do you have special concerns that would affect the price you’ll receive? For example, do you want to be able to move in four months?
  • Get an appraisal. For a few hundred dollars, a qualified appraiser can give you an estimate of your home’s value. Be sure to ask for a market-value appraisal. To locate appraisers in your area, contact The Appraisal Institute or ask your REALTOR® for some recommendations.
  • Ask a lender. Since most buyers will need a mortgage, it’s important that a home’s sale price be in line with a lender’s estimate of its value.
  • Be accurate. Studies show that homes priced more than 3 percent over the correct price take longer to sell.
  • Know what you’ll take. It’s critical to know what price you’ll accept before beginning a negotiation with a buyer.

Source: National Association of REALTORS®

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What is Appraised Value

  • Appraisals provide an objective opinion of value, but it’s not an exact science so appraisals may differ.
  • For buying and selling purposes, appraisals are usually based on market value — what the property could probably be sold for. Other types of value include insurance value, replacement value, and assessed value for property tax purposes.
  • Appraised value is not a constant number. Changes in market conditions can dramatically alter appraised value.
  • Appraised value doesn’t take into account special considerations, like the need to sell rapidly.
  • Lenders usually use either the appraised value or the sale price, whichever is less, to determine the amount of the mortgage they will offer.

Used with permission from Kim Daugherty, Real Estate Checklists and Systems, www.realestatechecklists.com

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Helpful Info for Sellers

  • A clean uncluttered home sells
  • Homes priced right sell
  • Selling a home is inconvenient
  • Repairs left undone will cost you more money than the repair itself
  • Overpricing your home will help to sell your neighbor’s home
  • Buyers love to grill sellers that are present for home showings
  • Smelly homes sell for less money
  • Cash is not always king
  • Well maintained homes sell for more money
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Reduce the Stress of Homebuying

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.

  1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.
  2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long.
  3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.
  4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.
  5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.
  6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.
  7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.
  8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.
  9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.
  10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.

Source: National Association of REALTORS®

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When Is the Right Time to Buy

Know that there’s no “right” time to buy.

If you find the perfect home now, don’t risk losing it because you’re trying to guess where the housing market and interest rates are going. Those factors usually don’t change fast enough to make a difference in an individual home’s price.
Don’t ask for too many opinions.

It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of the people who will actually be living in the home.
Accept that no house is ever perfect.

If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go. Also, accept that a little buyer’s remorse is inevitable and will most likely pass.
Don’t try to be a killer negotiator.

Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or refusing to budge may cost you the home you love.
Remember your home doesn’t exist in a vacuum.

Don’t get so caught up in the physical aspects of the house itself that you forget about important issues such as noise level, access to amenities, and other aspects that also have a big impact on your quality of life.
Plan ahead.

Don’t wait until you’ve found a home to get approved for a mortgage, investigate insurance, or consider a moving schedule. Being prepared will make your bid more attractive to sellers.
Choose a home first because you love it; then think about appreciation.

A home is still considered a great investment, but its most important role is as a comfortable, safe place to live.

Source: National Association of REALTORS®

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Be an Informed Seller

  • A clean uncluttered home sells
  • Homes priced right sell
  • Selling a home is inconvenient
  • Repairs left undone will cost you more money than the repair itself
  • Overpricing your home will help to sell your neighbor’s home
  • Buyers love to grill sellers that are present for home showings
  • Smelly homes sell for less money
  • Cash is not always king
  • Well maintained homes sell for more money
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Staging Tips

•Remove the clutter – put small things away
•Brighten areas up with light – open drapes and blinds, add lighting
•Re-purpose rooms – add some new furniture and paint
•Vary wall hangings – try different groupings
•Bring nature inside – add plants and fresh cut flowers
•Group in threes – odd numbers are preferred when grouping accessories
•Give areas a face lift – add new counter tops or cabinet doors if dated
•Add some color – paint with warm tans, honeys and soft blue-greens
•Beware of layout – pay close attention to the traffic flow of each room
•Clean – this is the cheapest and easiest way to improve the look of your home

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Formulate Your Property Wish List

What does your future home look like? Where is it located? As you hunt down your dream home, consult this list to evaluate properties and keep your priorities top of mind.

Neighborhoods

What neighborhoods do you prefer?

Schools

What school systems do you want to be near?

Transportation

How close must the home be to these amenities:

  • Public transportation
  • Airport
  • Expressway
  • Neighborhood shopping
  • Schools
  • Other

Home Style

  • What architectural style(s) of homes do you prefer?
  • Do you want to buy a home, condominium, or townhome?
  • Would you like a one-story or two-story home?
  • How many bedrooms must your new home have?
  • How many bathrooms must your new home have?

Home Condition

  • Do you prefer a new home or an existing home?
  • If you’re looking for an existing home, how old of a home would you consider?
  • How much repair or renovation would you be willing to do?
  • Do you have special needs that your home must meet?

Home Features

Please circle one of the choices: Must Have, Would Like, Willing to Compromise, Not Important

Front Yard Must Have Would Like Willing to Compromise Not Important
Back yard Must Have Would Like Willing to Compromise Not Important
Garage ( __ cars) Must Have Would Like Willing to Compromise Not Important
Patio/Deck Must Have Would Like Willing to Compromise Not Important
Pool Must Have Would Like Willing to Compromise Not Important
Family room Must Have Would Like Willing to Compromise Not Important
Formal living room Must Have Would Like Willing to Compromise Not Important
Formal dining room Must Have Would Like Willing to Compromise Not Important
Eat-in kitchen Must Have Would Like Willing to Compromise Not Important
Laundry room Must Have Would Like Willing to Compromise Not Important
Finished basement Must Have Would Like Willing to Compromise Not Important
Attic Must Have Would Like Willing to Compromise Not Important
Fireplace Must Have Would Like Willing to Compromise Not Important
Spa in bath Must Have Would Like Willing to Compromise Not Important
Air conditioning Must Have Would Like Willing to Compromise Not Important
Wall-to-wall carpet Must Have Would Like Willing to Compromise Not Important
Wood floors Must Have Would Like Willing to Compromise Not Important
Great view Must Have Would Like Willing to Compromise Not Important

Other notes:

Source: National Association of REALTOR®

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Prepare Yourself for Homeownership

  1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
  2. Develop your home wish list. Then, prioritize the features on your list.
  3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.
  4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.
  5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
  6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.
  7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.
  8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.
  9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.
  10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.

Source: National Association of REALTORS®

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Reasons to Buy a Home

• Having a good place to raise children and provide them a good education.

• Having a physical structure where you and your family can feel safe.

• It allows you to have more space for your family.

• It give you more control over what you do with your living space.

• Owning a home is a good way to build wealth that can be passed along to your family.

Source: Keeping  Current Matters

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