What to do if you are selling in today's competitive Real Estate market

In today's super-competitive real estate market, any little edge to help potential buyers envision themselves in the house you're trying to sell can make a difference.

That's why I think "depersonalizing" when you put your house up for sale.

There are key steps -- besides putting a realistic, post-housing bubble asking price on the property -- that can make a house stand out amid an immense inventory of "for sale" signs.

Keep in mind that the buyer has a lot of choices in today's market. It's most likely the shiny apple that's going to get picked. It's the same with houses. It's to a seller's benefit to make their house shine. It absolutely is.

How do you make it shine?

For starters, take down the wallpaper. Removal of all wallpaper is huge. It's too individualized to the current owner's tastes. Buyers just do not like wallpaper. If you go into a wallpaper store, there are thousands of patterns. Why is that? It's because people are very particular.

Still, some sellers are trying to sell houses with a different kind of wallpaper in every room. That puts them at a disadvantage to a seller who has "neutralized" personal tastes by removing wallpaper and repainting with warmer colors.

Clutter also has to go.

De-cluttering is a real important step that I think a lot of sellers overlook. We live in a house differently than we sell it, and packing away things that you don't use gives the buyer the opportunity to walk through and mentally put their things in the house.

People also get blind to the clutter. Ninety-five percent of sellers need an honest but tough assessment of what needs to get put in storage.

Carpeting is another issue. Buyers frown on houses that have a different color of carpet in every room. If the carpet would cost too much to replace but it has hardwood floors underneath, the best option probably is to pull it up and show the floor.

But if you can afford to replace it before you put the home on the market, it will make a big difference.

It doesn't need to be real expensive carpet, just mid-grade, recommending beige as the color. Beige that flows right through, that will change the house's appearance like you wouldn't believe.

Evidence the house has been well-maintained is important, right down to the front door. With inventories high in a slower market, buyers expect to be able to move right in and not face neglected maintenance issues.

It sounds corny, but make sure your front door looks good and the doorbell works. It's one of those signs that, if you're not willing to have your front look good and doorbell work, what other things don't work?

A likely sale killer, pet odors.

Smelly properties don't sell.

In the end, it usually comes down to a house in the best condition at the best price.

Homes that are priced right vs. their immediate competitors that are in great condition are the ones that get 30 showings in the first week on the market and three offers. It happens.

Properties that are in so-so condition and priced the same or higher than other competing listings are going to sit for a really long time and may never sell.

So take the time to make your home stand out and you will be happy you did. Sell faster in a shorter period of time.

Does buying really make better sense than renting?

Forget the finances for a minute. Why did you even begin to consider purchasing a home? The Fannie Mae National Housing Survey shows that four of the biggest reasons people buy a home have nothing at all to do with money. They want a place to raise and educate their children, a place where their family will feel safe, to have plenty of living space, and to have control over the space. What non financial benefits will your family gain from owning a home? Yours answers to that question should be the reason you decide to purchase or not. The bottom line is that the cost of a home will probably remain relatively unchanged even if prices continue to depreciate. Don't allow money to be the only factor in making the decision that's right for you.

If it's possible that prices will continue to fall, why should I buy now?

While price is the major concern for anyone selling a home, cost should be your primary concern as a buyer. That means you have to take into account what your monthly payment will be, considering not only the price of the home but also the interest of your mortgage. Waiting for prices to bottom out while rates are increasing can wind up costing more over the life of the mortgage. Fannie Mae, Freddie Mac, the National Association of Realtors, PMI, and the Mortgage Bankers Association are all projecting interest rates will increase over the next several quarters. It's best that you meet with your mortgage professional to help you determine what an interest rate increase will cost you based on the expected size of your loan. That will help you make a decision.

Help with closing costs

Fannie Mae is once again offering closing-cost assistance for buyers who close on a home in the mortgage giant's real-estate owned (REO) inventory, but in most states will not bring back cash bonuses it previously paid to buyers' agents.

Buyers who put in initial offers on or after April 11, and close on the sale of a Fannie Mae HomePath property by June 30, will be eligible to receive up to 3.5 percent in closing-cost assistance.

The offer is only good for buyers who intend to occupy the home they are purchasing as their primary residence -- second homes and investor properties are not eligible.

Offers submitted before May 15 have the best chance of qualifying, Fannie Mae said, as offers submitted after that "are particularly questionable for closing" by the June 30 deadline.

Take advantage to the low rates today and this help with closing costs.

Mortgage interest rates and credit scoring.

Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.

There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.

There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.

Mortgage Interest Rates for Fixed Rate Mortgages are low. Call to find out more..

Helping sellers sell their home

You will never trick someone into buying your home. If the listing pics are photo-edited within an inch of their lives, or your home is described as an “approved” short sale when, in fact, the bank approved another offer, now withdrawn, but will require a new offer to go through any sort of approval process (even a truncated one), buyers will learn this information at some point. If your neighborhood is described as funky and vibrant, as code for the fact that your house is under the train tracks and you live in between a wrecking yard and a biker bar, prospects will figure this out. If the detailed information about your home, neighborhood or even transactional position (e.g., short sale status, seller financing, etc.) is misrepresented, the sheer misrepresentation will turn otherwise interested buyers off. If you authorize your agent to “verbally approve” the buyer’s offer, don’t go back the next day demanding an extra $5,000. In cases where the buyer feels misled, whether or not that was your intention, running through the buyer’s mind is this question: If they can’t trust you to be honest about this, how can they trust you to be honest about everything else?

Financing for your first home

Are you getting ready to buy your first home? It is important to know how much you can afford before you begin looking at properties. Talking with a lender and getting pre-approved for a loan puts you in a stronger negotiating position with sellers.

As a rule, your monthly housing costs should not exceed 28% of your monthly pre-tax income. These costs include the mortgage payment, real estate taxes, and insurance. If you have long-term debts, such as student loans or car payments, your monthly payments, including your housing costs, should be less than 36% of your pre-tax monthly income. Some loans, such as VA and FHA loans, are more flexible with these basic guidelines.

Depending on which type of mortgage you select, you can consider houses in various price ranges. An adjustable-rate mortgage will usually enable you to qualify for a higher loan amount. Your real estate agent can help you make the basic calculations. Remember that buying at the top end of your price range gives you more time to outgrow your home, and can save you money over the long term.

Being a first time home buyer is exciting. Being able to buy your first home, the American Dream come true.

Help someone avoid foreclosure.

Many people have the impression that most real estate agents only care about themselves and their commissions. I'm here to help you avoid foreclosure if possible. For example, if you are facing a foreclosure sale, you can ask me about the "ask for the note strategy" to delay or stop the foreclosure. I can also refer you to an organization such as NACA.net. NACA.net who does forensic loan audits to determine if the lender violated any RESPA or other requirements. If the lender did so, then you have more leverage to work out a loan modification, a short sale, or some other solution.

Give me a call today. I can help.

Now is the time to buy a home

A recent survey by FNMA showed the housing crisis hasn't quenched the home ownership thirst. More than 51% of people said the recent troubles did not change their willingness to buy a home and an additional 27% said it actually made them more likely to do so.

A recent story from Forbes titled “Home Prices Exit 2000s Way Up, Despite Crash” explains that in reality housing actually had a superb decade. In fact, the value of a square foot of housing in the U.S. is up 58% from its January 2000 level for the 25 largest U.S. metropolitan areas.

Third, population growth continues strong and home builders have been under-producing new housing for the past several years based on population growth so that a return to 1,500,000+ new housing starts annually must occur well before the end of this decade to satisfy demand.

With interest rates still very low by historical standards and pricing at their lowest levels in over five year, yes, now is the perfect time to buy a home.

Real Estate - Stand by Me & I'll stand by YOU

Real estate transactions are complicated and unpredictable. Professional real estate agents are trained to handle the many facets of buying a home. A good agent is an invaluable asset to your venture if you are in the market for a house.

When you find a real estate agent with whom you feel confident, it is good to enter into a committed working relationship with that person. Concentrating your search with one agent will allow that agent to become truly familiar with your needs, desires, and financial capacities.

Maintaining loyalty to the real estate agent of your choice will bear you more fruit than scattering your attention among several agents. An agent who feels your commitment will devote his or her entire energy to finding the right home for you.

Buying a home in 2011

Here are some great tips to help you in 2011 to buy a home instead of renting. Make it a New Year's Resolution.

Resolution #1: I will save up for up-front costs associated with buying a home.
While it is true you can buy a home without the full 20% deposit, home buyers should still make the effort to save for a size-able down payment. A five percent or ten percent down payment is a step in the right direction. In addition, you will need to account for finances for closing costs. While some sellers will make concessions and pay it for home buyers, not all will, so be prepared for the cost. A good rule of thumb when looking at closing costs is two to four percent of the purchase price.

Resolution #2: I will get my credit in line.
The first step to improving your credit score is to know it. There are several free sites you can use to get your credit score, such as www.AnnualCreditReport.com. The next step will be to pay down/off your credit card debt. Paying down/off revolving debt looks better on your credit report. And be sure that your balance is 30% or less of your credit card limit. High balances, even with regular payments, do not help your final score.

Resolution #3: I will find a qualified agent to represent me.
Buying and selling a home is a huge financial transaction, so it is important to work with a qualified real estate professional who will understand your needs, the real estate industry and the current market. You will want to reach out to your network, interview at least three agents and trust your instincts during selection. You can also visit Homes.com ‘Find a Real Estate Agent’ section to locate a professional in your area.

Resolution #4: I will be an educated home buyer.
Being an educated home buyer is really important for the process to run smoothly and ensure that you enjoy your home search experience. You can begin research on the Internet to learn the various vocabulary terms and each step in purchasing a home. Attending various courses for home buyers and homeowners is also beneficial.

Resolution #5: I will take my time and enjoy the process.
As a recent first time home buyer, I can attest that the home buying process can be stressful, overwhelming and sometimes chaotic. That being stated, you will still need to take the time and enjoy the home search process. Whenever you feel overwhelmed, take a step back and relax. This is your buying experience, and you will ultimately be living in the place you decide.

I just got a call from (the buyer's agent), and the buyers are coming back with a counter offer of $345,000. I know you said $349,950 is your bottom line, and I'm representing you, trying to get you the most money possible. At the same time I want to make sure I'm honest with you about my professional opinion. If you want to sell the home in a reasonable time frame, I would really consider accepting this offer, (Seller).



Here are my thoughts and concerns:



1. How long will it take to find another buyer in this market who is financially qualified to buy, with their home already sold? Many buyers in your price range do have a home to sell because it's generally a move up range.



2. In the end even when we do find another buyer, are they going to be willing to pay more than this? These buyers have come up quite a bit and are very close. They respect the home, what you've done to it and are being reasonable...which seems foreign to most buyers in today's market.



3. If these buyers walk away because you won't come down, you have to consider your monthly carrying costs and determine if you'll actually be ahead if you sit on it for several more months and end up with the same offer later.



4. Will it appraise? This is a concern for all parties. If it doesn't appraise then the bank doesn't lend the money and the sale becomes null and void. The only way to keep the sale is if the buyer pays the difference in cash, or the seller comes down in price to the appraised value. In recent years, appraisers have become very, very critical on property values due to the volume of foreclosures. They don't want the banks coming back to them for over valuing the homes when they're foreclosed on.



At $345,000 you would walk away with approximately ($345,000 minus commission and closing costs) after all expenses except for your loan payoff.



I know you want to get as much out of it as possible (Seller), and I do, too. The more you make the more I make as well. However, it's just such a challenging market right now. While things are slowly shifting, it's going to take some time for the market to recover to a point where it changes from a buyers market to a sellers market and prices begin to stabilize again. And since you hired me to sell the home I just want to be honest and tell you I think this is a fair offer. So, at at least I've expressed my thoughts and opinions in case we're still on the market months from now.



In my experience the first offer is generally the best offer. Time and again I've seen sellers turn down offers and kick themselves months later wishing they would've accepted it.



Let me know your thoughts. You can email me back or call me at (number)."



Remember, the seller called back almost immediately and accepted the buyer's offer.



Thanks for sharing Christy.