Does Moving Up Make Sense for You?

Before you list your home for sale, it is important to evaluate whether or not a move is in your best interest.  This topic specifically deals with that decision.   Answer these questions to help you decide whether moving up makes sense.

1. How much equity do you have in your home?   Look at your monthly mortgage statement or call your lender to find out.  Usually, you don’t build up much equity in the first few years of paying a mortgage, but if you’ve owned your home for a number of years, you may have significant unrealized gains.
2. Has your income increased enough to cover the extra mortgage costs and the costs of moving?  Depending on how much you put down on the new home, this may or may not be a concern.  To know for sure, contact a mortgage broker to get pre-qualified before shopping for a new home.  They will be able to give you the figures you will need in order to answer this question. 
3. Does your neighborhood still meet your needs?  For example, if you’ve had children, the quality of the schools may be more of a concern now than when you first purchased.
4. Can you add on or remodel?  If you have a large yard, there might be room to expand your home.  If not, your options may be limited.  Also, do you want to undertake the headaches of remodeling?
5. How is the home market?  If it’s good, you may get top dollar for your home.
6. How are interest rates?  A low rate not only helps you buy more home, but also makes it easier to find a buyer.

Eight Critical Mistakes Sellers Can Make

Avoiding these eight critical mistakes will go a long way toward helping you move with the least hassle and the most money in your pocket.

Deadly Mistake No. 1: Pricing Incorrectly

Every seller wants to get as much money as possible when selling a home.  A listing priced too high often results in less money for the seller.  If your home is not priced competitively, people looking in your price range will reject it in favor of other, larger homes for the same price.   At the same time, the people who should be looking at your home will not see it because it is overpriced!  Overpricing usually increases time on the market, and adds to the carrying costs.  Ultimately, many overpriced properties sell below market value.

Deadly Mistake No. 2: Failing to “Showcase” the Home

Buyers are looking not just for a house, but a home to live in . Owners who fail to make repairs, such as sprucing up the house, touching up the paint and keeping it clean can chase away buyers.  If you were selling a car, you would wash it, or maybe even detail it to get the highest price.  Houses are no different.

Deadly Mistake No. 3: Using the “Hard Sell” During Showings

Buying a home is an emotional decision.  Resist the temptation to talk the entire time a buyer is there, and let them discover things on their own.  People like to “try on” a house and see if it is comfortable for them.  It’s difficult for them to do that if you follow them around pointing out every improvement that you’ve made.  It may even have the opposite effect you want.

Deadly Mistake No. 4: Mistaking Lookers for Buyers

For Sale by Owners nearly always get more activity than homes listed with an agent.  No question about it, Realtors will only bring qualified buyers.  A qualified buyer is one who is ready, willing and able to buy your home.  Most people who look at For Sale By Owner listings are just starting to think about moving.  They may be good buyers, but they are six to nine months away from being ready.  They don’t want to bother an agent yet, so they call the “By Owner” ads to get a feel for what’s available.  They may have a house to sell first, may need to save some more money or may have credit that needs fixing.  When everything is in place, that’s when they go looking with an agent.

An agent will ask buyers how much they can really spend for a home, discuss down payment, evaluate credit and decide a realistic monthly payment.  It’s necessary to find out how much will be realized when their present home closes.  Unless your Realtor finds out all the facts first, you must ask all these questions before the buyer crosses your threshold.  Otherwise, you may have a parade of Sunday afternoon shoppers with just a dream of owning a home someday.

Deadly Mistake No. 5: Not Knowing Your Rights and Obligations

Real estate law is extensive and complex:  The contract for sale and purchase is a legally binding document.  An improperly written contract can cause the sale to fall through, or cost you thousands for repairs, inspections and remedies for title defects.  You must know whether the property can legally be sold ”as is” and how deed restrictions and local zoning will affect the transaction.  If there are defects in your title, or if the title or the property is in conflict with local restrictions, you or your Realtor must remedy them.  Also, current laws allow the buyer an option period to inspect and approve of any inspection reports and repair bids.  Know your alternatives here.

Deadly Mistake No. 6: Signing a Listing Contract with No Way Out

Many times an agent will have good intentions about marketing your home, but circumstances can change.  In cases where the agent isn’t performing, you should have the right to fire your agent.  In some companies the broker will assign your listing to someone else in the office, someone you didn’t personally select.  Always protect yourself by getting a guarantee of performance which gives you the right to cancel anytime for any reason.

Deadly Mistake No. 7: Limiting the Market and Exposure of the Property

The two most obvious marketing tools (open houses and classified ads) are only moderately effective.  Surprisingly, less that one percent of homes are sold at an open house.  Agents use them to attract future prospects, not sell your house!  Advertising studies show that less than three percent of people purchased their home because they responded to an ad.  If a machine answers, most callers just hang up without leaving a message.

The right Realtor will employ a broad spectrum of marketing activities, emphasizing what he or she believes will work best for you.  There are dozens of more effective ways to find buyers than just open houses and advertising.  Did you know that most calls come in during business hours when sellers are at work, and most home showings are between 9 a.m. and 5 p.m. Monday through Friday?  We market homes 24 hours a day, 7 days per week, 365 days a year!

Deadly Mistake No. 8: Choosing the Wrong Realtor

It’s very likely that you don’t interview people very often, and yet in order to find the right Realtor, you may interview several.  The quality of your home selling experience is dependent upon your skill at selecting the best qualified person.

It’s interesting that in the real estate business, someone with many successfully closed transactions almost always costs the same as an inexperienced agent.  Bringing that experience to bear on your transaction could mean a higher price at the negotiating table, selling in less time and with the minimum amount of hassles.  The world is populated with Realtors who are wrong for you.

The sale of your home could well be the most important financial transaction you have ever been involved with.  The person you select can make it a satisfying and profitable activity or a terrible experience.  It’s your home and your money.  The choice of your Realtor is up to you.  Make the selection carefully.

Twenty Low-Cost Fixes to Spruce Up Your Home

You don’t have to spend a fortune to spruce up your home.  Indeed, one of the biggest mistakes some sellers make is to do major remodeling work when instead of just paying attention to some of the smaller details that make for a marvelous showing.  Here are inexpensive tips to fetch top dollar without spending top dollar to do it.

1. Trim bushes so they don’t block windows and cut down on light.
2. Buy a new doormat.
3. Put a pot of bright flowers (or a small evergreen in winter) on your porch.
4. Put new doorknobs on your doors.
5. Put a fresh coating on your driveway.
6. Edge the grass around walks and trees.
7. Keep your garden tools out of site.
8. Be sure kids put away their toys.
9. Buy a new mailbox.
10. Upgrade the outside lighting.
11. Use warm, incandescent light bulbs for a homey feel.
12. Polish or replace your house numbers.
13. Clean your gutters.
14. Put out potpourri or burn scented candles.
15. Buy new pillows for the sofa.
16. Buy a flowering plant and put it in a window you pass by frequently.
17. Make a centerpiece for your table with fruit or artificial flowers.
18. Replace heavy curtains with sheer ones that let in more light.
19. Buy new towels.
20. Put a seasonal wreath on your door.

Tips for Holding a Yard Sale

An important goal before listing your home for sale should be to reduce the clutter in your home.  One way to do this is to hold a yard sale.  Not only will you cut out the clutter in your home, you’ll also get rid of items you didn’t want to move.  Here are some tips to make your yard sale a success.

1. See if neighbors want to participate.  A “block” sale may attract more visitors.
2. Check with your city or county government to see if you need a permit or license.
3. Advertise.  Put an ad in free classified papers and on Craigslist, put up signs and balloons at major intersections and in stores near your home.
4. Price items ahead of time by attaching prices with removable stickers.  Remember, yard sales are supposed to be bargains, so don’t try to sell anything of significant value this way.  Don’t count on people “making an offer” if there’s no price, but do expect people to negotiate on the sticker price.
5. Check items before the sale to be sure you haven’t included something you want by mistake.
6. Keep an eye on children and pets during the sale to keep them safe.
7. Display everything neatly and individually so customers don’t have to dig through boxes.
8. Have an outdoor extension cord plugged in to an electrical outlet so buyers can test appliances.
9. Have plenty of bags and newspapers for wrapping fragile items.
10. Keep enough change on hand, and keep a close eye on your cash.

10 Ways to Make Your House More Attractive to Buyers

1. Get rid of clutter.  Throw out or file stacks of newspapers and magazines.  Pack away most of your small decorative items.  Store out-of-season clothing to make closets seem roomier.  Clean out the garage.
2. Wash your windows and screens to let more light into the interior.
3. Keep everything extra clean.  Wash fingerprints from light switch plates.  Mop and wax floors.  Clean the stove and refrigerator.  A clean house makes a better first impression and convinces buyers that the home has been well cared for.
4. Get rid of smells.  Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells.  Open the windows.
5. Put higher wattage bulbs in light sockets to make rooms seem brighter, especially basements and other dark rooms.  Replace any burnt-out bulbs.
6. Make minor repairs that can create a bad impression.  Small problems, such as sticky doors, torn screens, cracked caulking, or a dripping faucet, may seem trivial, but they’ll give buyers the impression that the house isn’t well maintained.
7. Tidy your yard.  Cut the grass, rake the leaves, trim the bushes, and edge the walks.  Put a pot or two of bright flowers near the entryway.
8. Patch holes in your driveway and reapply sealant, if applicable.
9. Clean your gutters.
10. Polish your front doorknob and door numbers.

Seven Steps to Preparing for an Open House

These seven easy steps will help you hold an open house to highlight your home’s sales appeal.

1. Hire a cleaning service.  A spotlessly clean home is essential; dirt will turn off a prospect faster than anything.
2. Mow your lawn, and be sure toys and yard equipment are put away.
3. Serve cookies, coffee, and soft drinks.  It creates a welcoming touch.  Be sure the kitchen stays clean; use disposable cups so the sink doesn’t fill up.
4. Lock up your valuables, jewelry, and money.  Although the real estate salesperson will be on site during the open house, it’s impossible to watch everyone all the time.
5. Turn on all the lights.  Even in the daytime, incandescent lights add sparkle.
6. Send your pets to a neighbor or take them outside.  If that’s not possible, crate them or confine them to one room (a basement or bath), and let the salesperson know where to find them.
7. Leave.  It’s awkward for prospective buyers to look in your closets and express their opinions of your home with you there.

Making your Home Irresistable for an Open House

Ok, you’ve done the basics of getting ready for your open house.  Now go the extra step and really make your home irresistable to buyers.

1. Put fresh or silk flowers in principal rooms for a touch of color.
2. Add a new shower curtain, fresh towels, and new guest soaps to every bath.
3. Set out potpourri or fresh baked goods for a homey smell.
4. Set the table with pretty dishes and candles.
5. Buy a fresh doormat with a clever saying.
6. Take one or two major pieces of furniture out of every room to create a sense of spaciousness.
7. Put away kitchen appliances and personal bathroom items to give the illusion of more counter space.
8. Lay a fire in the fireplace, or put a basket of flowers there if it’s not in use.
9. Depersonalize the rooms by putting away family photos, mementos, and distinctive artwork.
10. Turn on the sprinklers for 30 minutes to make the lawn sparkle.

12 Tips for Hiring a Remodeling Contractor

1. Get at least three written estimates.
2. Get references and call to check on the work.  If possible, go by and visit earlier jobs.
3. Check with the local Chamber of Commerce or Better Business Bureau for complaints.
4. Be sure that the contract states exactly what is to be done and how change orders will be handled.
5. Make as small of a downpayment as possible so you won’t lose a lot if the contractor fails to complete the job.
6. Be sure that the contractor has the necessary permits, licenses, and insurance.
7. Be sure that the contract states when the work will be completed and what recourse you have if it isn’t.  Also remember that in many instances you can cancel a contract within three business days of signing it.
8. Ask if the contractor’s workers will do the entire job or whether subcontractors will do parts.
9. Get the contractor to indemnify you if work does not meet local building codes or regulations.
10. Be sure that the contract specifies that the contractor will clean up after the job and be responsible for any damage.
11. Make sure materials used meet your specifications.
12. Don’t make the final payment until you’re satisfied with the work.

Moving Tips for Sellers

1. Give your forwarding address to the post office, usually two to four weeks ahead of the move.
2. Notify your credit card companies, magazine subscriptions, and bank of the change of address.
3. Develop a list of friends, relatives, and business colleagues who need to be notified of the move.
4. Arrange to have utilities disconnected at your old home and connected at your new one.
5. Cancel the newspaper.
6. Check insurance coverage for moved items.  Usually movers only cover what they pack.
7. Clean out appliances and prepare them for moving, if applicable.
8. Note the weight of the goods you’ll have moved, as long-distance moves are usually billed according to weight.  Watch for movers that use excessive padding to add weight.
9. Check with your condo or co-op about restrictions on using the elevator or particular exits.
10. Have a “first open” box with the things you’ll need most:  toilet paper, soap, trash bags, scissors, hammer, screwdriver, pencils and paper, cups and plates, water, snacks, and toothpaste.

Plus, if you’re moving out of town . . .

1. Get copies of medical and dental records and prescriptions for your family and your pets.
2. Get copies of children’s school records for transfer.
3. Ask friends for introductions to anyone they know in your new neighborhood.
4. Consider special car needs for pets when traveling.
5. Let a friend or relative know your route.
6. Carry traveler’s checks or an ATM card for ready cash until you can open a bank account.
7. Empty your safety deposit box.
8. Put plants in boxes with holes for air circulation if you’re moving in cold weather.

Six Items to Have on Hand for the New Owners

1. Owner’s manuals for items left in the house.
2. Warranties for any items left in the house.
3. A list of local service providers:  the best dry cleaner, yard service, etc.
4. Garage door opener.
5. Extra sets of house keys.
6. Code to burglar alarm and phone number of monitoring service if not discontinued.

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