Hold The Rash, Please
“All appliances, cozy fireplace in living room, dual coolingend unit with guest parking next to the property. Mature 
trees. Comm. pool and spa, Rec. Center. Close to I-10 and shopping. Rash is included”
Sounds lovely, but you can hold that rash, please!
This was posted by a realtor, a trained professional who someone has left in charge of marketing their house. If you are selling your own house and creating your own flat fee MLS listing, please make sure it is typo-free!
Why A Realtor Is Not The One To Get Your House Sold
Posted by Deane in Strategies on February 17, 2010
People erroneously believe that realtors are the ones who make the sales of houses happen. Not really. Realtors only bring buyer 
and sellers together, which is something the buyers and sellers already could easily do. But the “king” of the transaction, the one with veto power and virtually no accountability, is the lender. It is MUCH more important to be working with a good mortgage broker who will be HONEST with you about your buyers’ genuine chances of getting a loan than having even the best realtor.
A few months ago I posted that my son and his friend were buying a house together. Their deal fell apart when the lender pulled out at the last minute. That was the week of Thanksgiving. And yesterday was the day they absolutely were going to close after applying for and getting another loan. Guess what? It didn’t happen 
. I don’t know what went wrong yet, but how sickening is this for everyone? I, of course, am mostly concerned about my son who has been living out of a suitcase for 3 months. But I also really feel for the sellers. Their life has been on hold for 3 months, too. Their realtor gave them VERY bad advice. When the first loan fell through, they should have pulled out of the deal. If one lender turns you down, it is very likely so will the next lender.
So I always recommend sell your own house, but be sure you have the ear of an honest, experienced mortgage broker. In the Truth About FSBO, I explain why a mortgage broker will be happy to help you sell your house for free. One of your bonuses is an audio of me interviewing a very successful and experienced mortgage broker. If you haven’t already done so, be sure to listen to that. It’s a real eye-opener! It will change the way you look at selling houses.
Get Your Home Ready to Sell Now – Spring is Right Around the Corner
Posted by Deane in Preparation on February 7, 2010
If you are like us here on the east coast, you are digging out from a record breaking snow. You are probably pining for 
spring, which seems like a l-o-n-g way off. But spring is only 6 WEEKS AWAY! So if you plan to put your house on the market this spring, you should start getting ready now.
While you are relatively housebound is the perfect time to go around your home with the inspection and cleaning check lists and the decluttering plan you got with The Truth About FSBO. Unless you keep your house in spotless, perfect condition, you probably will need every minute of those six weeks to fix, clean, paint, and declutter.
You will need to do, as my husband likes to say, get rid of the “yuck” factor. What does that mean exactly? Removing anything outdated, dirty, or cluttered. Almost every one has “yucky” areas that you have grown used to and just look past. I’m embarrassed 
to admit that yesterday I was rumaging in the closet under my basement stair case and found a pile of sunflower seeds and peanut shells – double yuck! We clearly had a mouse in the house sometime that made that area his home.
Almost every house needs the woodwork and trim repainted. A white semigloss will really pop. Repaint any walls that have scuffs or is a wild color that might put buyers off like if your teenager painted their walls black. Sort through every closet and kitchen cabinet – you don’t want a prospective buyer opening something up and having pots and pans crash to the floor or have towels and pillows land on their heads.
To be on track for spring, consider doing one room and one “area” each weekend. An “area” would mean a hall closet, garage, section of the basement, etc. When you look at it that way, six weeks suddenly doesn’t sound very long, does it? You are probably thinking, “I need 6 months!” So if you want sell your own house at the peak time, you need to get started right away.
Don’t forget to stage your home before you put it up for sale. Think about how to rearrange your furniture to make each room look larger and more inviting. Get rid of any heavy dark window treatments and replace with some sheers. Put the Pepto-Bismol in the medicine cabinet and put an attractive candle or soap holder on the bathroom sink instead. There is lots of staging advice including staging videos in The Truth About FSBO.
So don’t delay, get started today to be ready to sell your house this spring!
10 Steps To Buy A “For Sale By Owner” Home
Since you might be dealing with prospective buyers that aren’t using an agent, you should be very clear on what steps they need to take. Unless they have done this before, they might be looking to you for guidance. You want to make it easy for your buyers to buy from you! That being said, of course, are not obligated to tell them anything that is not in your best interest. Below is an article explaining the ten steps a buyer needs to take to buy your FSBO house.
“With approximately 20 percent of the real estate marketplace comprised of “for sale by owner” listings, many homebuyers are left scratching their heads wondering, “Do I need an agent to go ahead and buy that “for sale by owner” home?” Not only are agents not needed to buy a home, involving one during a FSBO transaction could actually hinder the buying process, as the agent would want the seller and/or the buyer to commit to paying an expensive commission fee.
To buy a “for sale by owner” home, follow these 10 simple steps:
1. Determine Your Budget: The first step in any home buying process is determining how much you can afford. It’s important to not overextend yourself. Luckily, there’s many Internet-based mortgage calculators that will tell you how much you can afford based upon your income, debt level, mortgage rate and available cash for a down payment. Visit our Mortgage Calculators page to determine your housing budget.
2. Get Pre-Approved: Now that you know the price range that you can afford, you’ll want to get pre-approved so that you can move forward in the home buying process. In today’s market, buyers with a large down payment and a strong credit rating are more likely to obtain a mortgage. Start the pre-approval process by clicking here. Getting a pre-approval letter is a quick process that will tell sellers that you are a serious buyer who can afford their home.
3. Search For Homes: This part is simple. Just use the ForSaleByOwner.com search page to find your ideal home.
4. Contact the Owner Directly: Unlike homes represented by an agent, there’s no middleman to interfere with you from getting directly in touch with the seller. Phone or email the seller and ask additional questions about the home that wasn’t on the online property description. If you’re still interested, agree on a mutually convenient time to tour the home.
5. Get a Valuation Report of the Home: Either before or after you see the home, get a valuation or property report to see how the home’s asking price compares to other recently sold homes within the neighborhood. It’s similar to a real estate agent’s CMA (comparative market analysis), and it will compare the home you’re considering to up to 20 nearby recent home sales. Remember that such property reports and CMAs do not factor in any recent renovations — such as kitchen or bathroom remodeling — so the price of the home will be affected accordingly.
6. Hire an Attorney: For a few hundred dollars, a quality real estate attorney will provide you with all the advice and counsel you’ll need to go from the offer to closing. Use a local attorney who is knowledgeable about your town’s ordinances when it comes to real estate transactions, as well as your state’s disclosure laws. Our Find a Pro page can help find an attorney near you.
7. Make an Offer: Now that you’ve seen the home firsthand and have a property valuation report, plus an attorney in your corner, you’re ready to present the seller with an offer. Your attorney should have the necessary offer forms and you can also visit our Real Estate Forms section for all the state-specific paperwork you’ll need.
8. Lock in Your Mortgage Rate: Assuming that the seller is entertaining your offer, you’ll want to shop around for the lowest mortgage rate. Quicken Loans has a fast, online mortgage approval process, and Bankrate.com has a great mortgage comparison tool that will give you current rates at major lending institutions. You should also visit local banks and contact mortgage brokers to price compare. Once you’ve settled on a lender and a mortgage product, they will lock you in that mortgage rate and give you a set amount of time to close the real estate transaction. A 30 day or 60 day “lock in” period is most common.
9. Get the Home Inspected: The next step is hiring a quality home inspector who will go through the home – from foundation to attic – to see what condition the home is in. A home inspector will cost $300-$600 and the inspection will take around 2 hours. You’ll get an inspection report outlining any mechanical or structural problems that the home might have. Again, visit our Find a Pro pageto find an inspector near you.
Depending on the results on the inspection report, you might want to re-negotiate the purchase price. For example, the inspector might tell you that the furnace needs to be replaced. Negotiate with the seller to lower the price to compensate for any such expense.
10. Close the Deal: Your real estate attorney will handle most of the details at closing and, depending on your state and local area, will advise you on any special paperwork that needs to be completed between you and the seller. Your attorney and your mortgage lender will also assist you with coordinating the financing and providing payment to the seller. The seller will sign over the deed of the home and, voila, you’re the new homeowner!”
Source: Eric Mangan, ForSaleByOwner.com
Reminder: Tax Credit Deadline April 30, 2010
The following is an excerpt from an article on Zillow.com about the tax credit deadline. If you are selling your own house, don’t forget to have information available for your prospective buyers on why this is a great time for them to buy your house!
“In what has been urged as a must-have by real estate professionals and builders, the $8000 tax credit for first-time home buyers (previously due to expire Nov. 30), has been extended through April 30, 2010, according to the Associated Press. Not only has it been extended, but it has also been expanded to include more buyers.
Details on Tax Credit Extension:
- $8000 tax credit for first-time homebuyers extended for buyers who sign a contract by April 30, 2010 (and who close by the end of June).
- $6500 tax credit offered to homebuyers who have lived in their current residence at least five years and who want to “trade up” (buy a new primary residence).
- Couples earning as much as $225,000 a year and individuals earning up to $125,000 would qualify (up from $75,000 for individuals and $150,000 for couples).
- Tax credit not applicable for those buying homes worth more than $800,000.
- Those who sell their new home or stop using it as their main residence within three years would have to repay the credit.”
To read the whole article, visit Zillow.com.
Fair Housing and Martin Luther King Day
It seems fitting to talk about fair housing on a day designed to honor Martin Luther King Jr., because the civil-rights activist was acutely aware of the way bricks and mortar could be used to separate people based on race.
On August 5, 1966, he joined marchers protesting against housing segregation in Chicago. The Chicago Tribune reported that the “mood was ominous” and onlookers threw rocks, bottles and firecrackers at the crowd; King was hit by a stone. But in the end, there were results:
The marches led to an accord that year between the protesters and the Chicago Real Estate Board. The board agreed to end its opposition to open-housing laws in exchange for an end to the demonstrations. Before he left town, King said it was “a first step in a 1,000-mile journey.”
The federal Fair Housing Act was part of civil-rights legislation passed seven days after King was assassinated. The act, which covers most housing, makes it illegal to refuse to rent or sell to someone based on race, color, national origin, religion, gender, familial status — whether you have children — or disabilities. Setting different terms or conditions is also not allowed. The act covers mortgage lending, too.
In 2008, the 40th anniversary of the act, the U.S. Department of Housing and Urban Development said it had received more than 10,000 housing discrimination complaints the previous year. Race was the second-most cited reason. The first? Disabilities.
Source: Baltimore Sun – January 18, 2010
Water Is Your Home’s Worst Enemy
Posted by Deane in Miscellaneous on January 13, 2010
Water is the most powerful force on earth. Water is the key to life. Water can carve out the Grand Canyon or destroy a city like New Orleans. And if you own a home, water can be your home’s worst enemy. Especially if you are trying to sell your own house. Nothing will scare off a potential buyer faster than seeing water problems or mold.
The main thing you need to know about water in regards to maintaining your house, is that it always finds the path of least resistance to run downward, due to the force of gravity. Even a pin hole in a roof or pipe will cause water to run down that spot and start causing damage. The smallest opening left unattended can cause a lot of damage.
The next obvious concept is that water issues never fix themselves. The instant you seed a drop of water anywhere it doesn’t belong is the moment you start looking for the cause and fixing it or hiring someone to take care of it for you. Ignoring a water problem is like ignoring a tooth cavity. It never goes away and only gets worse with time. And it will cost a lot more money and cause a lot more pain the longer you wait.
As a real estate investor, I’ve seen perfectly decent houses ruined by the owner not taking care of water problems. A few houses I purchased and rehabbed were destroyed by water. In one house, the bathtub had crashed down from the top floor and was sitting in the kitchen when I bought it, because the owner didn’t fix a plumbing issue in the bathroom. I purchased a house where a gutter had half fallen down and now acted like a trough that led right into a poorly sealed bedroom window. This eventually brought down the bedroom floor, the dining room ceiling, ruined the hardwood floor in the dining room and left the basement with standing water which ruined the finished portion of the basement. All this damage was caused just because the owner didn’t have a gutter reattached!
Besides taking care of any visible problems immediately, here are some tips to keep your home safe from water damage.
Make sure all your gutters are clean from leaves and debris and all your drain spouts are flowing properly. If you live surrounded by trees, clean your gutters twice a year, spring and fall.
Put a wire mesh filter over the drain from your washing machine. These look like a metal sock and are inexpensive. You can find them at discount or hardware stores. You won’t believe the lint, pet hair, and bits that are collected. This keeps all this stuff from clogging up your laundry room sink.
If you have a garbage disposal, use it only for the small stuff. I’m embarrassed to admit I once clogged mine cramming too many potato skins down it. Always run it thoroughly with cold water before you run your dishwasher. A plumber who specializes in snaking out drains told me to pour a box of baking soda down the kitchen sink every three months and run it thoroughly with cold water. If you put baking soda in your fridge to keep it fresh, pour the contents of the old box down the sink.
Get some natural enzymes that eat the junk in your pipes and use it as directed in all your drains – sinks, tubs, showers, and toilets. Don’t use caustic chemicals for this, that will only hurry the demise of your pipes.
It you take these preventative steps and are vigilant about looking for water issues and taking care of them early, you should be able to prevent any water disasters in your own home. This is always critical but even more so when you are selling your house.
Another Big Gain in Existing-Home Sales
Existing-home sales rose again in November as first-time buyers rushed to close sales before the original Nov. 30 deadline for the recently extended and expanded tax credit, according to the NATIONAL ASSOCIATION OF REALTORS®.
Existing homes sales – including single-family, townhomes, condominiums and co-ops – rose 7.4 percent to a seasonally adjusted annual rate of 6.54 million units in November from 6.09 million in October, and are 44.1 percent higher than the 4.54 million-unit pace in November 2008. Current sales remain at the highest level since February 2007 when they hit 6.55 million.
Lawrence Yun, NAR chief economist, said the rise was expected. “This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead,” he said. “We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires and balance should be restored to the housing sector with inventories continuing to decline.”
Conditions Optimal for Buyers
An NAR practitioner survey shows first-time buyers purchased 51 percent of homes in November, compared with an upwardly revised 50 percent of transactions in October. According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.88 percent in November from 4.95 percent in October; the rate was 6.09 percent in November 2008. Last month’s mortgage interest rate was the second lowest on record after bottoming at 4.81 percent in April 2009.
NAR President Vicki Cox Golder said conditions are optimal for buyers in the current market. “Inventories have steadily declined and are closer to balanced levels, which indicate home prices in many areas are either stabilizing or could soon stabilize and return to normal appreciation patterns,” she said. “This means buyers still have good choices but are purchasing near the bottom of the price cycle with historically low mortgage interest rates. Throw a tax credit on top and it really doesn’t get any better for buyers with secure jobs and long-term ownership plans.”
Inventories Fall
Total housing inventory at the end of November declined 1.3 percent to 3.52 million existing homes available for sale, which represents a 6.5-month supply at the current sales pace, down from an 7.0-month supply in October. Raw unsold inventory figures are 15.5 percent below a year ago. The last time there was a lower supply of homes on the market was April 2006, when it was at a 6.1-month supply.
“Nearly all markets experienced a solid sales gain from one year ago,” Yun said. “The only markets with measurably lower sales were in San Diego, Riverside, and Sacramento (Calif.), where inventory shortages for lower-priced homes are limiting sales.”
Sales Rise Across the Board
For the second month in a row, sales have risen in all price classes from a year earlier. Prior to October, the only consistent gains were in the lower price ranges. The national median existing-home price for all housing types was $172,600 in November, which is 4.3 percent below November 2008. Distressed properties, which accounted for 33 percent of sales in November, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.
Single-Family Homes
Single-family home sales jumped 8.5 percent to a seasonally adjusted annual rate of 5.77 million in November from a level of 5.32 million in October, and are 42.1 percent above the pace of 4.06 million in November 2008. The median existing single-family home price was $171,900 in November, down 4.4 percent from a year ago.
Condos
Existing condominium and co-op sales in November were unchanged from a seasonally adjusted annual rate of 770,000 in October, but are 60.1 percent above the 481,000-unit pace a year ago. The median existing condo price was $178,000 in November, which is 3.1 percent below November 2008.
By Region
- Sales in the Northeast rose 6.6 percent to an annual level of 1.13 million in November, and are 52.7 percent higher than November 2008. The median price in the Northeast was $223,400, down 13.1 percent from a year ago.
- Existing-home sales in the Midwest increased 8.4 percent in November to a pace of 1.55 million and are 53.5 percent above a year ago. The median price in the Midwest was $140,800, a decline of 0.4 percent from November 2008.
- In the South, existing-home sales rose 4.8 percent to an annual level of 2.39 million in November and are 44.8 percent higher than a year ago. The median price in the South was $151,400, down 1.4 percent from November 2008.
- Existing-home sales in the West increased 10.6 percent to an annual rate of 1.46 million in November and are 28.1 percent above November 2008. The median price in the West was $231,100, which is 4.1 percent below a year ago.
Source: Daily Real Estate News - December 22, 2009
On The Other Side of A Real-Life Home Selling Lesson
Posted by Deane in Miscellaneous on December 22, 2009
My adult son and his buddy since middle school have been roommates, sharing an apartment. Their lease was up this fall so they decided to take advantage of the tax credit and low prices. They made an offer on a house and it was accepted. How exciting for every one! Except me .
I didn’t want to be a wet blanket, but I knew the chances of them getting a loan were slim. I tried to explain this to the kids without being a total “budinsky”. Between them they make well into 6 figures, BUT at least 75% of that money gets paid to them on a 1099. If you don’t understand the significance of this, this is exactly why you need to get a lender on your side when you are trying to sell your own house! Lenders HATE to give loans to the self-employed.
Some lenders lie. They will say anything in the hopes that they can get your business. Their lender insisted from start to finish there would be no problem getting a loan. (I knew better.) The day after Thanksgiving, two days after they were supposed to settle, they get the bad news – no loan!
The sellers had already moved out. Yikes. My son and his friend HAD to be out of their apartment and quickly moved 
into his friend’s parent’s house. Double yikes.
Onto phase two. My son’s friend found another lender. (Not mine, again.) They are “pretty sure” they can get a loan next month. Meanwhile about 10 people’s lives have been totally disrupted. The sellers have one small child and another due any time. And it’s the week before Christmas.
Please put yourself in the seller’s shoes. They have two mortgages. They have a vacant house in the middle of winter they have to heat and worry about. We had 2 feet of snow yesterday they had to go shovel. Their life has been on hold for months. They can’t market the house to someone else because the contract is still binding. Even if they could, they have now entered the WORST time of year to sell a house.
Did I mention, that this wasn’t a for sale by owner house? Both parties, buyer and seller had realtors. I have to laugh when I see realtors saying how much FSBO sellers are risking by not using them and how much trouble they will save you. Right.
What lesson can YOU take to the bank here when you are selling your own house? Don’t believe a lender that you don’t have a relationship with and doesn’t have your best interests at heart. Be VERY leery about selling to a buyer that is relying on self-employment income.
I hope to come to you later and have a happy ending to this story!
Meanwhile, have a wonderful holiday. Stay warm and stay well.
What Does Light Have To Do With Selling A Home?
Posted by Deane in Preparation on December 9, 2009
(As we head towards the darkest, shortest days of the year, I thought this article about the importance of light was timely. Enjoy these great home selling tips!)
Using light to help sell a home may be everything.
Real estate pros will tell you that when people are looking for a home they will nearly always say they want a place that feels light and airy. Donna Freeman says no one ever asked to see a dark and dreary house.
It’s the real reason dark wall finishes don’t work well at resale.
Buyers want LIGHT.
There are actually 3 aspects to the LIGHT problem in homes.
The first things that bring light to interior spaces are WINDOWS. When your house is for sale you want the windows to be front and center in the lookers’ eyes. How do you do it? You open all drapes and curtains. You hang all drapes and curtains so that when they are open the glass is completely uncovered. Finally you hang all drapes and curtains high, just under the crown molding and wide to make the window look bigger. Windows are the most expensive item in any house so it is important to make them look good!
The next part of making a house look lighter is to have lots of great LIGHTING and have it all on when people are looking at the house. There are 3 kinds of lighting. Ambient lighting is the background lighting that gives a room 
a warm glow all over. Many homes lack good ambient lighting. It is the kind of lighting where you want to see the LIGHT, not the fixture that produces the light. You can get it with a few can lights that wash light up the walls in dark corners, rope lighting that can light the tops of cabinets and wardrobes, and overhead lighting like the kind builders put in rooms. The next lighting you may have is feature lighting like chandeliers or eyeball lights around fireplaces, fountains, art or other special features. The third lighting is lamps and work lighting for counters, end tables and midlevel spaces in rooms. Good lighting can help make up for less than stellar windows.
The third aspect of light in spaces is the COLOR and PAINT finishes in your house. The relocation companies that help corporations sell transferred employees’ homes buy ivory paint by the hundreds of gallons. They do it so they can cover up all those paint mistakes, kid art projects, color disasters and worn walls that homeowners messed up. You don’t HAVE to go with ivory but do go LIGHT. Light neutrals with white trim always do better than dark colors at resale.
A light filled interior is something that buyers want that many homeowners fail to understand or provide when they try to sell their homes. But the magic lighting brings to homes is very important to creating a favorable image and glow in buyers’ minds. Give buyers what they want. Let there be LIGHT. It will really help you sell a home quickly.
About the Author:
Paula is a lifestyle specialists, providing others with her knowledge and insights gathered over her lifetime. She also works with her husband Ron in their mortgage note buying business. Visit their website at Selling A Note or Mortgage Buyers
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