Buyer Tips

Five Powerful Buying Strategies

  1. Don’t Get “Pre-Qualified!
    Do you want to get the best house you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one bargaining chip in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of escrow, are critical to a seller. In years past, I always recommended that buyers get “pre-qualified” by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you “pre-qualified” and issues a certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS, and here’s why! None of the information has been verified! Oftentimes-unknown problems surface! Some of the problems I’ve seen include recorded judgments, child support payments due, glitches on the credit report due to any number of reasons, down payments that have not been in the clients’ bank account long enough, etc. So the way to make a strong offer today is to get “pre-approved”. This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation. It’s VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.
     
  2. Sell First, Then Buy
    If you have a house to sell, sell it before selecting a house to buy! I haven’t seen a contingent sale work in the last 3 years, unless it’s with a new home builder who has other houses to sell and can afford to put one on a contingency. Let’s pretend that we go out looking for the perfect house for you. We find it and you love it! Now you have to go make an offer to the seller. You want the seller to reduce the price and wait until you sell your house. The seller figures that’s a risky deal, since he might pass up a buyer who DOESN’T have to sell a house while he’s waiting for you. So he says OK, he’ll do the contingency but it has to be a full price offer! So you see, you paid more for the house than you could have because of the contingency. Now you have to sell your existing house, and in a hurry! Otherwise you lose the dream house! So to sell quickly you might take an offer that’s lower than if you had more time. The bottom line is that buying before selling might cost you TENS OF THOUSANDS of dollars. I always recommend that you sell first, then buy. If you’re concerned that there is not a house on the market for you, then go on a window-shopping trip. You can identify possible houses and locations without falling in love with a specific house. If you feel confident after that then put your house on the market. Another tactic is to make the sale “subject to seller finding suitable housing”. Adding this phrase to the listing means that WHEN YOU DO FIND A BUYER, you will have some time to find the new place. If you don’t find anything to your liking, you don’t have to sell your present home.
     
  3. Play the Game of Nines
    Before house hunting, make a list of nine things you want in the new place. Then make a list of the nine things you don’t want. I call this “NINE OF THIS AND NONE OF THAT”. You can use this list as a scorecard to rate each property that you see. The one with the biggest score wins! This helps avoid confusion and keeps things in perspective when you’re comparing dozens of homes. When house hunting, keep in mind the difference between “SKIN AND BONES”. The BONES are things that cannot be changed such as the location, view, size of lot, noise in the area, school district, and floor plan. The SKIN represents easily changed surface finishes like carpet, wallpaper, color, and window coverings. Buy the house with good BONES, because the SKIN can always be changed to match your tastes. I always recommend that you imagine each house as if it were vacant. Consider each house on its underlying merits, not the seller’s decorating skills.
     
  4. Don’t Be Pushed Into Any House
    Your agent should show you everything available that meets your requirements. Don’t make a decision on a house until you feel that you’ve seen enough to pick the best one. Go to the Multiple Listing computer with your agent to make sure that you are getting a COMPLETE list. In the late 1980’s, homes were selling quickly, usually a few days after listing. In that kind of market, agents advised their clients to make an offer ON THE SPOT if they liked the house. That was good advice at the time. Today there isn’t always this urgency, unless a home is drastically under priced, and you’ll know if it is. Don’t forget to check into the SCHOOL DISTRICTS of the area you’re considering. Information is available on every school; such as class sizes, percentage of students that go on to college, SAT scores, etc. You can get this information from your agent or directly from the school.
     
  5. Stop Calling Ads!
    A word of caution – agents create ads solely to make the phone ring! Many of the homes have some drawback that’s not mentioned in the ad, such as traffic noise, power lines, or litigation in the community. What’s not mentioned in the ad is usually more important than what is. For this reason, I want you to be very careful when reading ads. Remember that the person writing the ad is representing the seller and not you! The most important thing you can do is have someone on your side looking out for your best interests. Your own agent will critique the property with an eye towards how well it meets your needs and will point out any drawbacks you should know about. So whether you decide to work with me or not, pick an agent you feel comfortable with and enlist the services of that agent as a buyer’s broker. Then you become a client with all the rights, benefits and privileges created by this agency relationship, and you’re no longer just a shopper. Did you know that many homes are sold WITHOUT A SIGN ever going up or an AD EVER BEING PUT IN THE PAPER? These “great deals” go to those people who are committed to working with one agent. When an agent hears of a great buy, who do you think he’s going to call? His client, who he has a legal obligation to work hard for someone who just called on the phone and said “Keep your eyes open”? So to get the best buy on a property, I always recommend that you hire your own agent and stick with him.

Nine Deadly Mistakes Home Sellers Make

  1. Using a real estate agent instead of a realtor.
    When you’re looking for help buying or selling property, it’s important to remember that the terms “real estate agent” and “Realtor” are not synonymous. Realtors can provide an extra level of service, and to be a Realtor you must be a member of the National Association of Realtors (NAR). The equivalent organization in Canada is the Canadian Real Estate Association (CREA). Both are non-profit trade organizations that promote real estate information, education and professional standards. The National Association of Realtors also has earned a strong reputation for actively championing private property rights and working to make home ownership affordable and accessible. The NAR and CREA members adhere to a strict code of ethics founded on the principle of providing fair and honest service to all consumers. Realtor business practices are monitored at local board levels. Arbitration and disciplinary systems are in place to address complaints from the public or board members. This local oversight keeps Realtors directly accountable to the individual consumers they serve and therefore the consumer is more likely to find better service and accountability by using a Realtor.
     
  2. Complacent marketing when selling a home.
    When selling your home there are no guarantees that the ultimate buyer of your home will have simply walked through the front door. In many cases you may have to bring your home to the buyer. Effective marketing will help ensure that your property receives maximum exposure to attract a ready, willing and able buyer in the shortest period of time. Ask your Realtor to list for you all of the ways he/she intends to market your home and on what time-line. Also, be sure to ask about the home being advertised on the Internet.
     
  3. Taking for granted the “curb appeal” of your home.
    When you’re preparing your house for sale, remember the importance of first impressions. A buyer’s first impression can make or break whether they even want to go inside for a look. It is estimated that more than half of all houses are sold before the buyers even get out of their cars. With that in mind, be sure to stand outside of your home and take a realistic “fresh look” and then ask yourself what can be done to make the “curb appeal” improve. Also ask your Realtor’s opinion as to how to improve the “curb appeal”. It could make a huge difference in your final sales price.
     
  4. Forgetting about health and safety issues.
    Be upfront and disclose to your Realtor any problems with the property. The problems are going to be discovered anyway. A decade ago, health and safety issues were rarely a part of the typical real estate transaction. Today, however, it’s common for inspections relating to health, safety and even environmental concerns to be a part of most sales contracts. Moreover, in many states, the seller must disclose to the buyer any knowledge of existing property problems. In many cases, these issues have been or can be factored into the home’s listing price.
     
  5. Forgetting what you would want to see if you were the buyer of your home.
    Remember that although people can be different in personality, they tend to be the same when it comes to expectations at someone else’s expense. In other words, a prospective buyer would probably like to see a perfect home from top to bottom, inside and out, when it comes to your home. Try to do as many of the following items as possible to improve the likelihood of your home selling in an expedient way.

On the outside

    • Sweep front walkway.
    • Remove newspapers, bikes and toys.
    • Park extra cars away from the property.
    • Trim back the shrubs.
    • Apply fresh, clean paint throughout.
    • Clean windows and window coverings throughout.
    • Keep plumbing and all appliances in working order.
    • Maintain all sealant (window, tub, shower, sink, etc.) in good condition.
    • Make sure roof and gutters are clean and in good condition.
    • Mow the lawn frequently and plant flowers.
    • Keep pet areas clean.

On the inside

    • The kitchen and bathroom should shine.
    • Quick once-over with the vacuum; carpets should be clean.
    • Place fresh flowers in the main rooms.
    • Put dishes away, unless setting a formal display for decoration.
    • Make all beds and put all clothes away.
    • Open drapes and turn on lights for a brighter feel.
    • Straighten closets.
    • Put toys away.
    • Turn off television.
    • Play soft music on the radio/stereo.
    • Keep pets out of the way and pet areas clean and odor-free.
    • Secure jewelry, cash, prescription medication and other valuables.
    • Enhance the spaciousness of each room.

  1. Thinking you need to be in the home to explain things to a prospective buyer.
    You will be better served if you allow your Realtor to do their job without you there. Most potential buyers usually feel more comfortable if they can speak freely to the real estate professional without the owners being present. If people unaccompanied by an agent request to see your property, you should refer them to your real estate professional for an appointment.
     
  2. Not knowing how to price your home to sell.
    Perhaps the most challenging aspect of selling a home is listing it at the correct price. It’s one of several areas where the assistance of a skilled real estate agent can more than pay for itself. Listing the home too high can be as bad as too low. If the listing price is too high, you’ll miss out on a percentage of buyers looking in the price range where your home should be. This is the flaw in thinking that you’ll always have the opportunity to accept a lower offer. Chances are the offers won’t even come in, because the buyers who would be most interested in your home have been scared off by the price and aren’t even taking the time to look. By the time the price is corrected, you’ve already lost exposure to a large group of potential buyers. The listing price becomes even trickier to set when prices are quickly rising or falling. It’s critical to be aware of where and how fast the market is moving – both when setting the price and when negotiating an offer. Again, an experienced, well-trained agent is always in touch with market trends – often even to a greater extent than appraisers, who typically focus on what a property is worth if sold as-is, right now.
     
  3. Not planning your move earlier enough.
    Many sellers simply don’t plan their move early enough and then feel totally overwhelmed at the time of moving out of the house. If you are able to move at any time of the year, don’t wait until summer, the peak-moving season. Consider also that the first and last few days of the month are extra busy. If you plan to sell your house, get it on the market as soon as possible. Keep a record of all expenses related to the move, some of which may be tax deductible. Fill out the Personal Household Inventory for each room. This is important for establishing the amount of declared valuation for the shipment and as a permanent inventory for insurance purposes. List, as nearly as possible, the year of purchase and original cost of each item. Attach any invoices or records of purchase to the completed inventory. Prepare a separate high-value inventory if the shipment will contain articles of “extraordinary” value. The following list includes items that might fall into this category:
    • Antiques
    • Art Collections
    • Cameras
    • China Collections
    • Computer Equipment
    • Crystal
    • Figurines
    • Firearms
    • Jewelry
    • Manuscripts
    • Oriental Rugs
    • Silver
    • Stones or Gems
    • Tapestries
    • TVs or Stereos

Also, unless you have been given a binding moving estimate where a firm cost is established in advance, the exact cost of a move cannot be determined until after the shipment has been loaded on the van and weighed. The weight on which charges are based is calculated by weighing the van before and after loading. The total cost of the move will include transportation charges, any charges for declared valuation, plus charges for any extra services performed at your request. All of these charges are based on tariff rate schedules.
 

  1. Using a “convenient” realtor rather than using an experienced realtor.
    When working with a realtor, it’s critical that you have full confidence in that realtor’s experience and education. A skilled, knowledgeable realtor should be able to explain to you exactly why your home needs to be priced at a certain level – compared to recent listings and sales of homes similar to yours. Experienced realtors also know exactly what the current pool of buyers are looking for in relation to particular styles and price ranges of properties. A skilled realtor can recommend changes that will enhance the salability of your home, thus increasing the price – and/or decreasing the length of time before a sale.

How To Get Top Dollar In Any Market

The best chance for selling your property is within the first seven weeks. Studies show that the longer a property stays on the market, the less the seller will net. Below are five main factors to accomplishing this goal.
Pricing Factor
It is very important to price your property at a competitive market value right when you list it. The market is so competitive that even over-pricing by a few thousand dollars could mean that your house will not sell. It’s interesting, but your first offer is usually your best offer. Here are reasons for pricing your property at the market value right from the start in order to net you the most amount of money in the shortest amount of time.


An overpriced home:

  • Minimizes offers
  • Lowers showings
  • Lowers agent response
  • Limits financing
  • Limits qualified buyers
  • Nets less for the seller

80% of the marketing is done when we decide on what price to list your home. If you are unwilling to list at current market value, you would be better off not putting it on the market at this time.
Clean Factor
Most people are turned off by even the smallest amount of uncleanness or odor when buying a home. Sellers lose thousands of dollars because they do not adequately clean. If your house is squeaky clean, you will be able to sell your home faster and net hundreds, if not thousands of dollars more. If you are planning on moving, why not get rid of that old junk now so that your house will appear larger? Make more space. Odors must be eliminated especially if you have dogs, cats or young children in diapers or if you are a smoker. You may not notice the smell, but the buyers do! Most agents have a difficult time communicating to their sellers about odor. If you employ an agent to get the most amount of money for you, please don’t take offense if he must confront you about odor problems.
Access Factor
Top selling agents will not show your home if both the key and access are not readily available. They do not have time to run around town all day picking up and dropping off keys. They want to sell homes! The greatest way to show a house is to have a key! When your home is being shown, please do the following:

  • Keep all lights on
  • Keep all drapes and shutters open
  • Keep all doors unlocked
  • Leave soft music playing
  • Take a short walk with your children and pets
  • Let the buyer be at ease and let the agents do their job
  • Paint & Carpet Factor

Paint is your best improvement investment for getting a greater return on your money. Paint makes the whole house smell clean and neat. If your house has chipped paint, exposed wood or the paint looks faded, it is time to paint. If your carpet is worn, dirty, outdated or an unusual color, you may need to seriously consider replacing it. Many houses do not sell because of this problem. Don’t think that buyers have more money than you have to replace carpet. They don’t. They simply buy elsewhere.
Front Yard Fact
Your front yard immediately reflects the inside condition of your house to the buyer. People enjoy their yards. Make certain that the trees are trimmed so the house can be seen from the street. Have the grass mowed, trimmed and edged. Walkways should be swept. Clean away debris. Remove parked cars. This all adds to curb appeal. If a buyer doesn’t like the outside, they may not stop to see the inside.

Six Ways To Beat The Stress Of Buying A Home

DEATH, DIVORCE & MOVING are the three most stressful experiences in life. There are two very different kinds of needs that people have while moving. First there are the transactional needs, like finding the home that is just right for you, finding a seller who is realistic, negotiating the price, filling out the paperwork, handling the escrow and arranging for the move. But there are also emotional needs that are involved when moving, and this is where the biggest stress comes in. Any competent agent will handle the transactional needs for you, but if your emotional needs are unfulfilled, you’ll be frustrated and may not act in your own best interests. The ideal real estate agent is one who is competent with paperwork and numbers, but can also guide, direct and counsel you through the emotional ups and downs of moving. Here are the six best ways we’ve found to beat the stress.

  1. Begin with the end in mind.
    Have an ultimate scenario of where you’re trying to be. What will life be like when you get there? How will it be better than where you are now? Dwell on that picture and write it out, fill up at least a page about how it feels in the new place. This is imperative. Having the goal in front of you at all times energizes you to achieve it, in spite of setbacks and frustrations. Emotions will run high and you need an anchor. In childbirth, the Lamaze method teaches you to focus on one spot when enduring labor pains. In the Bible it says that Jesus willingly went to the cross by focusing on the joy He would have when it was over. In the same way, you too must focus on that future goal when anxiety threatens to get the better of you.
     
  2. Be flexible.
    In your monetary calculations, overestimate by a thousand dollars. In this market, anything can happen between contract acceptance and closing. It could be the inspections reveal areas of concern that the seller is unwilling to fix or the repair costs are higher than the amount limited in the contract. Or the interest rate changes which affects the necessary down payment and closing costs you will need to come up with. As your real estate team, we will strive to tie up loose ends as quickly as possible, but remember there is no perfect world. Most buyers feel a bit overwhelmed when taking on a new mortgage and the responsibilities of a new home and we’ve seen many buyers get angry when it seems like the cost just keeps going up. Anger is caused when reality doesn’t match up with the expectations you had in your mind. So if you anticipate this happening in advance, you won’t get angry. In fact, it’ll probably go better than you expected.
     
  3. Trust in the process.
    There’s just so much to do, it’s easy to panic. You wonder if it will ever work out. In fact, when I bought my house, I couldn’t eat for a day, we felt sick to my stomach! You think you’re taking a big chance, but the truth is you’re giving yourself a big chance. Even though you can’t see every step of the way, as you move towards your goals, the way opens up. We know that you haven’t moved in a long time and it’s a major upheaval in your life. But we’ve been there many times before, and we’ll be looking out for you. Trust that we know the way to get you there.
     
  4. Get knowledge.
    One thing you’ll probably feel during this transition time is being out of control. It feels like everyone else has taken over your life. The seller, your lender, the appraiser, the inspectors, they all have the power to say yes or no to your moving plans. We’ll try our best to let you know ahead of time what your expenses will be, and what the unknowns are. We’ll tie down the loose ends as soon as possible. We’ll try to get your loan approved within a reasonable time frame. We’ll educate you as best we can and let you in “behind the scenes” so you won’t ever feel stupid or out of control.
     
  5. What is your option?
    When things don’t go as smoothly as you had hoped, don’t let emotions take over. Always ask yourself, “What is my option?” because there are always options. Let’s pretend the lender takes longer than agreed upon to get your loan. He keeps asking you for more and more documentation until it feels like he also needs to know how many gold fillings you have in your mouth! You’ll feel upset because you wanted to feel certain about the move and now you still have to live with the uncertainty. You want to say, “Forget it, I’m fed up with this!” But what is your option? Find a new lender and start the process over again? That may take weeks, plus you will have to provide all the paperwork over again. If the lender is trying his best, it may be better to give him a few more days. Each case is unique, but when setbacks occur we’ve found that asking yourself this question helps to defuse the situation and restore clear headed thinking.
     
  6. Seek entertainment.
    When there’s nothing you can do about the situation, take your mind off of it altogether. Maybe you expected loan approval on Friday, but now it won’t come until Monday. You hate being in limbo and feeling powerless. So do something else entirely, maybe something where you aren’t powerless. Take a hike, play tennis, get out of town for the day. Watch a movie, pray or pour yourself into your work. Whatever diversion works best for you, now would be a good time to engage in it. Just forget the situation and refuse to listen to those irritating thoughts when they come into your head. Think about something else instead and just take it one day at a time. To keep stress to a minimum, here’s how I’ll serve you when you work with me in buying your new home: Give my best-reasoned expert counsel and advice with your best interests in mind. Clarify your goals and motivation, and decide if moving is the wisest choice at this time. Provide recommendations and information to help your kids through all the changes. Negotiate effectively for you to get the lowest possible price for your new home. Treat your money like it was my own, shaving every expense possible. Protect your interests during escrow, keeping a detailed record of the transaction. Be your levelheaded sounding board or relief valve when the stress is overwhelming. Counsel you through the feelings of “buyer’s remorse”. Alert you ahead of time to every possibility so you feel more in control. Contact you daily during the last 10 days of the transaction to serve your needs. Provide guidance and help with movers, change of address, utilities shut off, cleaning, etc. Deliver your closing paperwork. Continue to give you information of value after the transaction… for life.

Reasons to Own Your Own Home

You’ve probably seen lots of financial arguments about why you should own your own home rather than rent. This includes budgeting (no rent increases) and the tax savings you’ll most likely have. Now I’m going to give you some reasons you probably haven’t heard.

  • Freedom to pursue other goals in life once the major goal of home ownership is achieved.
    Strange as it sounds, many of my first-time buyers have told me that once they bought the house, other things in their life started to fall into place. It’s as if not owning took so much of their mental energy that other goals were not worked on until that big goal was reached. So buy a home and get on with your life!
     
  • A greater sense of belonging to the community.
    Once you own a home, you feel more attached to the city in which you live. You’re more interested in what happens in town, to the roads, schools and shopping areas. Some people even become involved in local politics, which you seldom see a renter do.
     
  • A commitment to something, a sense of stability.
    Home ownership is an anchor, something that cannot be pulled out from under you. You’ll never get a notice that you have to move. You’re kids will never have to change schools. It gives you freedom to plan years ahead.
     
  • You can change things, a feeling of being in control.
    It’s your home. You can add to it, remodel it, change the landscaping, do whatever projects you want. You have a feeling of being in control of something in your life. At work we don’t always have control of what happens, but your home is your castle that you have dominion over. You can see what you’re building take shape before your eyes.
     
  • More control over the children than in an apartment complex.
    In a neighborhood, kids usually play in the yards or go to friend’s houses a few doors away. My clients have told me that in an apartment complex they never knew where the kids were. They could be in any of hundreds of apartments, doing who knows what. In a home you get to know the neighbors and watch out for each other’s kids.
     
  • Children do better in school and feel more secure.
    This one surprised me, but buyers have reported to me that their kids calmed down in school after they bought a house. I don’t know why, but it seems to work that way. I remember a single mom watching her son play in the yard, making steps in the slope and building things. She didn’t have to tell him to leave everything alone, like she did at the apartment complex. I guess kids feel the same need for control we adults do.
     
  • Time and money saved by not going to the laundromat.
    A small point, but if you have kids, you know the value of this one. You gain a whole evening a week when you buy a house! The wash gets done in between other things, or while you’re at work. What would you do with the extra evening you’ll have? How about going out for dessert with your spouse with all those quarters?

I’ve been in a home of my own for so long; Itake these benefits for granted. I forgot what it’s like to be a renter! If you have anything you can add to the list, please let me know via email. I’d love to hear from you!

Marketing Tips For Sellers

When selling your home there are no guarantees that a buyer will simply walk through the front door. In many cases you may have to bring your home to the buyer. Effective marketing will help ensure that your property receives maximum exposure to attract a ready, willing and able buyer. The appearance of your home, a buyer’s first impressions and other considerations can also affect the sale of your home. Be sure to explore tips for increasing your home’s value. Have you considered that home prices in your neighborhood and the value of your property are also factors used for pricing your home? When you’re preparing your house for sale, remember the importance of first impressions. The market isn’t the only factor that influences whether you get your asking price. Appearance and overall condition play a major role. Here are some easy things you can do to make your home more appealing to buyers. It is estimated that more than half the houses are sold before the buyers even get out of their cars. So stand across the street from your house and review its curb appeal.


On the outside
  • Sweep front walkway.
  • Remove newspapers, bikes and toys.
  • Park extra cars away from the property.
  • Trim back the shrubs.
  • Apply fresh, clean paint throughout.
  • Clean windows and window coverings throughout.
  • Keep pet areas clean.
  • Keep plumbing and all appliances in working order.
  • Maintain all sealant (window, tub, shower, sink, etc.) in good condition.
  • Make sure roof and gutters are clean and in good condition.
  • Mow the lawn frequently and plant flowers.

On the inside

  • The kitchen and bathroom should shine.
  • Quick once-over with the vacuum; carpets should be clean.
  • Place fresh flowers in the main rooms.
  • Put dishes away, unless setting a formal display for decoration.
  • Make all beds and put all clothes away.
  • Enhance the spaciousness of each room.
  • Open drapes and turn on lights for a brighter feel.
  • Straighten closets.
  • Put toys away.
  • Turn off television.
  • Play soft music on the radio/stereo.
  • Keep pets out of the way and pet areas clean and odor-free.
  • Secure jewelry, cash, prescription medication and other valuables.


Important Reminders

  • Potential buyers usually feel more comfortable if the owners are not present.
  • If people unaccompanied by an agent request to see your property, please refer them to your real estate professional for an appointment.
  • Leave a number where you can be reached if you are leaving town, even for a weekend.