Rates for 30-year home loans were unchanged this week and remain close to record-low levels. The average rate for a 30-year fixed mortgage was 5.04 percent, still attractive for people looking to buy a home, the same as a week earlier, mortgage company Freddie Mac said Thursday.
In an effort to strengthen the recovery the Federal Reserve is to stretching out a program that has lowered mortgage rates and propped up the housing market this year. Analysts suggest that mortgage rates should remain low for now but could eventually head higher, and buyers who want to purchase a home while rates are still good shouldn’t delay.
The Federal Reserve “is betting that conditions should be improved by the second quarter of 2010, and therefore it makes sense to stretch out the timetable for supporting the mortgage markets,” Brian Bethune, chief U.S. economist at IHS Global Insight wrote Wednesday.
The way a property shows is critical. Step back and look at your home from a buyers prospective. Is it warm and friendly. Even if the home is vacant there are ways to make it more inviting. Prior to showing if the property has a fireplace, especially gas, start it up. During this season hang some stockings. Kitchens can look inviting by setting a bowl on the counter and add a pitcher of wooden spoons beside it. A towel hanging from the oven or laid on a counter can catch the eye. Bathrooms can get color by hanging towels and setting a basket of creams, soaps and lotions on the vanity or close to the tub. Bring a room to life just by adding accent pieces that will highlight the best feature of the room. By using these tips you will make the property go from looking empty and cold to useful and warm. Just use your imagination and you could be pleasantly surprised how much more inviting the property can appear. It is a very inexpensive way of showing the property off to your next prospective buyer.
Winter months are historically known for slower home sales however this year may be the year that sales increase from the past sales of December. With low rates and fair pricing a serious buyer may conitinue his search for a home purchase. It will be less likely the buyer will be in a bidding war on the property and most serious sellers will realize the buyers value of being a ready, willing and able buyer.
Internet home searches also advance the capability for the buyer to preview properties for sale prior to making a committment to visit the home. This trend may cause more buyers to limit their homes searches so when they visit a home the interest is increased for the seller. One able home buyer is worth more than 20 buyers coming to an open house. Although an open house can be good for showings it does not mean that all buyers showing up at your door can actually purchase the property. With a caller you can do a quick prequalification of the buyers motives and ability to purchase. With an open house it is difficult to distinguish the good buyer from those just looking for decorating ideas.
Buyers expect to find a Feature Sheet regarding the property when preiviewing. A feature sheet should include at least one photo of the property and more if possible. A buyer generally visits several homes in one day and by the end of the showing period can easily forget the details of each property. The photo will help dentify the property quickly for them so when reviewing the feature sheet confusion between homes will disapear. The feature sheet should include any additional information that may help them with their decision process. The feature sheet should also include information that will allow the buyer or buyers agent to write a contract on the property if desired. To write a contract the buyer will need property address, legal description, inclusions of the sale, price, seller concessions if any and sellers name. Leaving copies of the property disclosure and any other disclousres relevant to the sale for the buyer to take along with the feature sheet may also be a good idea. Most buyers will not take the dislcosures unless they feel they have a strong interest in the property. In most states disclousres must become a part of a sales contract and the sales contract can be voided if not attached.
Feature sheets outside of the property should entice the buyer to call for more information. The feature sheet should be simple and at the lowest cost to you. A half page should be ample and you can get two detailed featured sheets from one page. The page should include a photo of the property, price, general information about the property, webpage link and a way they can contact you for more information. These are resource sheets for buyers of all kinds who will take the information and will most likely not be qualified to purchase the property. Although it is recommended to use feature sheets on the outside of the property it may warrant some thought to the cost of each sheet that may be taken and only thrown away moments later.
Videos and home tours on realtor.com and MLS help buyers to get a visual on their next potential home purchase. With many people now relocating they are begining their home buying search online. Buyers can view property, price, and location prior to making a commitment to the area. In todays market buyers are more aware of home value and the ability the property may have to rise in value. Realtor.com remains the number one source for buyers to search properties for sale. Buyers find that their searches help to eliminate properties they may have otherwise spent hours touring and choosing those that show the most potential for their likes and needs. This may be the reason that properties shown on realtor.com with a virtual tour are visited by buyers first.
A virtual tour should be shot by a professional photographer who deals with taking still shots and making them come to life as a video. The buyer can do a visual walk through of the property. They can note the color of walls, kitchen appliances and with some tours view the backyard and other exterior features. Tours give the buyer an opportunity to visit the property prior to walking out the door.
The cost of a virtual tour can range in price depending on its length. The size home for sale can be a determining factor on how many photos the photographer may suggest to completely display the homes rooms and features. Most tours are no more than $250.00. The cost is a small fee for the attention the property could gain on public sites and the MLS.
It is easy to get carried away with decorating for the holidays. As a seller however you may want to consider the decor of your outside displays. Keep it simple. The curb appeal of the property is the first impression any buyer will have prior to entering the property. If the yard is overloaded with lights, deer, blow ups and other holiday decorations it may be distracting to the buyer to get a true sense of its beauty. Simplicity may be your best bet. Keep it warm and friendly on the outside to encourage the buyer to want to see the inside. Curb Appeal in the market place can be crucial to the interest a buyer may show in the home and their desire to see it. Keep in mind potential buyers find properties for sale many ways and one of those ways is a driving by. With the holidays comes more neighborhood visitors and the odds of a buyer seeing your sign for sale is greater. Keep your for sale sign visible to the street and keep information that may entice the buyer to want to see the property available in a tube or information box.
Overloading your property with lights and other decorations may distract the buyer from seeing the for sale sign. For sale signs can be a great marketing tool in the holiday market so why take any chances of a buyer seeing your desire to sell the home. Simplicity is great way to spend this holiday beginning with the exterior.
Whether you are selling a property as a for sale by owner or have enlisted the help of a traditional realtor one fact remains pricing is everything in todays market. If you are not competetive with the value of your property there is a good chance you will not sell. The fact is that the market is full of homes for sale and with the loss of jobs and uncertainties in the work place an overpriced home will eliminate a buyer from even previewing the property. The buyers ready, willing and able to purchase can see hundreds of homes on the market why yours? Hopefully they will choose your property because the price is right, the condition is good and the flexibilty of a closing date is an open mind.
Every potential purchaser this time of year is a serious buyer. If someone is looking for properties to buy right now they are doing so for a reason. Don’t underestimate the buyers ability to search homes for sale or the ability to search the fair market value prior to looking at the property or making an offer. Whether or not you are a selling a property yourself or have enlisted the help of a Realtor take charge of the pricing. Keep in mind your goal in selling the property is to get results. The result being a sale and closing on the property.
A home inspector can be hired by either the seller or buyer. When purchasing a home it is important that you know the conidition of the property prior to closing. If the property is sold “as is” a home inspection is still a condition you may want to put into the offer. The term “as is” is used when a seller cannot or chooses not to repair the property. Although ”as is” should be a disclaimer made about the property, prior to you writing the offer, it may still be important for you to know what costs could be associated with the property once you have closed. A certifed home inspector can help you determine age of equipment, potential and pre-existing problems in the property’s structure or any immediate cosmetic treatments that may be needed. A home inspection may save you thousands in dollars of repairs after closing. In most cases the seller does agree to review the inspection report, if one is provided by the buyer, and will help in costs.
A Home Warranty for the property may help you in completing some of the defects found by the home inspector. In most cases the warranty is paid for by the seller but there is no reason a buyer cannot purchase the home warranty for themselves. The home warranty may help off set some of the costs of repair that the inspector may find while inspecting the property. It is not wise to take a property at face value as being well kept so then problem free. The condition of the property extends from roof to crawl space so it impossible for you to see everything about the property without a trained eye.
If you are selling a home in today’s market you should now know that the buyer can purchase the property by getting a loan with a very low interest rate. This can be a key factor in your advertising. If you have not yet contacted a Mortgage company you may want to consider it. Why? Most mortgage companies will complete specifics of the buyer’s downpayment, closing costs and monthly payments. Although it will not be specific to the individual buyer the general concept will give the buyer a better idea of what is needed for cash and payments when previewing your property. This will be a visual aid that may cause the buyer to see the property as one they can acutally own. Most mortgage companies will do this as a free service. They do it in hopes the buyer will call them for the loan.
Once the buyer contacts a mortgage company the loan officer can be specific to their needs for the purchase. The loan officer will also supply you as the seller a letter of quailification for the buyer so that you know prior to taking the property off the market that the buyer can perform on the sales contract.
Buyers are now looking for assurances that the next home purchase they make will be an investment. They are looking for every means possible to reserve their cash now and avoid any additional costs in the near future due to new ownership. With a home that is not newly constructed comes concerns of upkeep, age of appliances and any other unexpected costs down the road. They do not want their dream dashed away by installing a new heat pump six months after moving in the property. One way to give the buyer added assurance of the properties condition is a home warranty. With many plans a small deduction is paid for the repair or replacement of the item. For example instead of paying thousands for a new heat pump they may pay as little as fity to seventy five dollars.
The cost of offering a home warranty plan for a buyer is small compared to the costs they may occur down the road. What most sellers dont understand is that the plan covers them as well from the day the plan is confirmed through the closing date. The warranty then transfers to the buyer for a full year from the closing date. The benefit to the seller is that in the time period they are selling the home and if they were to encounter a problem like a dishwasher breaking they will pay only the deductible and the item will be repaired or replaced for them. It is generally the seller that will offer the plan but a buyer may purchase it for themselves as well. If the buyer purchases the plan the seller is not covered and any costs that may arise with equipment in the property up until closing will be paid by the seller.
Pets are the best but when selling a property they can be a hindrance. A number one turn off to a homebuyer is pet odor in the home. If you have a cat make sure the litter box is clean. If you have a dog be certain shedding hair is not on furniture or carpets. Other small creatures should be kept in cages like hamsters, birds and snakes. Not everyone enjoys small rodents or birds. A temporary residence during showings may be the utility room or garage.
If you have a dog or other animals that can go outside during showings that would be best. If you have a dog that loves to greet people by jumping on them put them in a pen. With the winter weather and muddy yards paws do get dirty outside. What buyer wants to continue his tour with dog prints on his suit.
You know your animals, you know the smells they can cause. Be aware of the odors that may be in your home. It is easy to become immune to odors. Yes pets are the best but when it comes to selling a home they are not always the best feature.
The decline in licensed realtors is predicted. The driop should be apparent by January. Where did they all go? When the market is good the world is flooded with Real Estate agents. The market is booming and so is their business. In a good market it takes very little to get a property sold or to get a buyer to “buy quick” before the pricing goes up …again. It is a lucrative business when times are good. With little more than a few class hours and an exam they are ready to tell you how to deal with one of the largest investments most people make in their life. .. a home.
There is a good chance the realtor that sold you the home no longer is in the business. And if they are still in the business what money is left in their pockets to spend on your property for advertising. Although every seller should be sensitive to a marketing budget it may be wise especially now to review a plan with the agent you hire. Times are changing and more to the point Times have changed. More and more selles who paid to much for properties are going it alone when putting their homes back on the market. With over priced properties, rising mortgage payments who can afford to hire back the agent that convinced them in the first place it was “the time to buy”. For Sale by Owners are plentiful and certainly capable of pricing their home, putting a sign in the yard, posting ads on the internet and newspapers and showing the property. For many it is not a choice it is a real way of earning their money back.
With the Real Estate market offering thousands of homes for sale where do you start when seriously beginning the search for your next home? First you may want to consider writing a wish list. This would be the area of choice, the style home you like, bedrooms, baths, and any amenities you would like the home to offer. You may want to get ideas by previewing homes on online sites. This will help with deciding what style homes can be found in the areas you are most interested in. You may also want to compare prices of the neighborhood you have interest. Determining a price range will quickly help you weed through the possibilities. Your next step should be contacting a mortgage lender or completing a mortgage pre qualification online. A prequalification letter is standard when presenting an offer to a seller. Most sellers today will not even consider an offer without proof that you are a ready, Willing and Able buyer.
Next you need to determine if you are going to hire a traditional buyer agent to show you properties or if it is not wiser to use a Rebate Broker online that will create cash from the commissions at closing to assist you with closing costs or rate buydown. Both these type services can assist you with daily new listings reports of homes that may come on the market fitting your criteria. Yes one of these will drive you around and open the door and the other will not. One is a full service, fully compensated, agent where the other is a Buyer agent that allows you the compensation for doing the work. Much like a For Sale by Owner you are compensated by monetary savings by driving yourself around and showing the property to yourself. It won’t be hard to find a house with all the choices in this market but it may be a hard choice when trying to determine whether a large percentage of the buyer commission ends up in your pocket or someone elses.
What home improvements can add value to your home when trying to sell ? The best person to determine that may be you. If you know you need a new roof then address it. If you are attempting to get the best price for the property then be aware of the properties that are for sale around you. If the property down the street has a new roof and you are priced to draw the same potential buyers interest and are comparibly priced then it may be a subject you want to address by getting the repairs done or make clear when advertising that a credit would be made toward a new roof. You should be aware of all the properties that are on the market or have recently sold. By comparing your property to their property should help you determine the value. You may want to ride by properties that have sold to help you determine their condition. The condition of properties are and have been a determing factor to any offer.
Don’t turn a blind eye to unsightly repairs. Review your property as if you were the buyer. If you can move from seller to buyer it will help you see things that you may have otherwise missed. Repair cost versus value. How much more would you give if a home was in move in condition versus one that may take months to repair before moving in. Any buyer is going to want to be compensated for his or her time for repairs.
Flat Fee MLS Services are quickly gaining ground as the number one alternative for folks selling their properties in these ecomomic times. With the equity of homes decreasing across the country and the enourmous capability buyers now have to search properties for sale online sellers are realizing they can in part market the property themselves. A sellers property can be advertised in the same MLS as a traditional realtor, charging six percent, posts their listing. The seller by using a limited service broker and by doing some of the work themselves only pays a fraction of a listing fee charged by Brokers. Most online brokers provide extensive internet exposure for the property and in most cases complimentary websites and other tools that can provide additional help to the seller. Flat Fee Services in their covered areas are getting properties sold equally or greater than what traditional Brokers are performing in sales. With these services sellers have an opportunity to budget their own marketing without waiting on the Realtor to decide when or where an ad should be created.
Another major difference in Traditional brokers and selling on your own with a Limited Service Broker is that you maintain the right to sell the property on your own. So if your efforts bring the buyer to the table ( in most states) the seller does not pay anyone a compensation but themselves. Wow all that equity stays in the sellers pocket. It is a great way to sell and it works in every market.
As a for sale by owner or home seller looking to maximize their exposure in this market there are now ways you can do that at less cost than the traditional methods. As a for sale by owner you may not be interested in paying Realtor commssions. At some internet broker sites you can find packages that will allow you to post your property on Realtor.com and showcase the property with mutliple photos, remarks, and scrolling text. Realtor.com gets 5 million visitors a month from people searching homes. The site also allows for open house announcements that can be posted weeks in advance. The property will be exposed to other websites and portals such as Trulia, Yahoo, Google to name a few. By advertising on Realtor.com you are not obligated in anyway to pay a Realtor fee. You retain your for sale by owner status but gain tremendous exposure for the property.
Home for sale without a costly commission. Save your listing broker commission by using a Flat Fee Broker service. These brokers are licensed in the areas in which they do business. The MLS ad and Realtor.com ad is the exact same MLS used by local brokers in your area to expose the home for sale. The main difference is that you save thousands when doing some of the work yourself. Yes, thousands less. One fee, in most cases, is paid to cover the cost of setting up the lisitng and ads. The Buyer agent fee is then determined by the seller. With the property exposed in the MLS, Realtor.com and other public sites you have the maximum exposure to get the property sold.
Keeping the house clean. With four children, a cat, and a dog sometimes that may be a hard thing to do. It is simplier to get the house listed and check the ads than it is to get someone to pick up the towel off of the floor after their shower. No doubt a home shows better when the house sparkles and the toys aren’t at the door waiting to trip the potential buyer as they come in. If it is impossible, which many agree it is, to show the property at a minutes notice with kids in toe here is a suggestion. For showing instructions request that the showing times are limited to certain hours. You may want to post a short span of time for those looking at lunch and another time that would be convenient after working hours. Five to Seven would allow someone to come directly from work leaving an eating time that is acceptable to your family and then put the children to bed. To put yourself on the market does not mean you have to put yourself in the crazy farm. Most buyers want to see the property at its best and most should be able to manage your timeframe if they are serious about seeing your property.
A property does not show its best with mess becaue it is an automatic assumption by the buyer that the home will be to small for their needs. Don’t risk a buyer not making an offer but be ready. Take charge so that your home can always show its best.
Searching homes for sale online has become a potential buyers pass time and why not. Most homes found on sites have photos, virtual tours and descriptive remarks. The buyer has an opportunity to preview properties without having to go to the property. The need for someone to drive them around all day to view properties is quickly becoming a thing of the past.
If you use the internet to preview properties and its your time spent sorting out the list of homes you want to see why not earn the money for your time. It is not as hard as you may think or a traditional realtor may lead you to believe. Most internet home selling companies offer rebates to the buyer who is willing to do the leg work. Once you find a home a contract is written by the broker and submitted to the lisitng agent or homeowner just as is the case with a visible agent. You will find the property, set the appointment to see the property or visit an open house and then bring the details of your offer to the broker. The broker speaks wih you in detail prior to making the offer. At closing you will be paid for your efforts by way of a Rebate. The Rebate is created by the commission generrally paid to the buyers agent. Charts are generally available on sites offering these type services. By using the charts you can get an estimate of how much you can earn back by doing exactly what you are most likely doing right now,,,,,,searching homes online.
Homes are selling and Can sell when your price is right. How can you avoid major equity loss but still keep your property listed at fair market value. You can choose to sell your property yourself as a for sale by ownr , try to negotiate commissions with a traditional realtor or find a Flat Fee MLS site that allows you the ability to save your equity while having the property listed on the MLS and Realtor.com.
In today’s market it is fairly easy to see why flat fee services are gaining ground as the smart alternative when selling property. For sale by owners are finding that they can be listed on the exact same MLS with the same exact exposure on Realtor.com as a traditional agent provides. All of these similiar services without giving their equity away to an agent. If you have sold property before this method will be easy. With one fee paid upfront these services provide, in most cases, up to 6 months in the MLS and on Realtor.com. With many such sites you can create a personal property webpage and utilize free and a la carte services that match those of a 6 percent realtor.
By doing some of the work yourself you create an opportunity to start off with a competitive price and moving forward with price flexiblity.
In today’s market with job changes and companies relocating you never know when or where your potential buyer may come from. One thing may be be for certain the buyer shopping for properties during the holidays is a Serious Buyer. It is not how many people you can get into your property to preview it but how you can get one willing, able and ready buyer. The ready buyer just may be the one that calls right when you are about to carve the turkey. Not suggested to break tradition and get up from the buffet but do keep in mind that this may be the best showing you will have.
Homes sell on Thanksgiving and homes sell on Christmas Eve. If you are conteplating a move and are considering taking the property off the market you may want to reconsider. It is a serious market out there from November through January for buyers and as a seller you may want to take advantage of the decline of homes being offered for sale in that time period.
It may be that gifts of perfume isn’t all that is on the list for the holidays. Certainly a house will not be on everyones list but it may just be on the list of the perfect buyer for your home.
With changes taken place across the country and prices dropping if you are in a position to purchase a home this may be the time. There are properties out there that sellers must sell and are in time crunch to do it. Circumstances from job loss to pending foreclosures are causing many sellers to drop properties below market value. It certainly doesn’t help the cause of those trying to sell in or around them but for homebuyers there liesthe opportunity to get into neighborhoods at a price that may have ”once upon a time” been out of their price range.
With buyer rebate programs available through internet sites further savings for a homebuyer could be in store. It is no longer difficult to find a property. Realtor.com as well as other public home selling sites have now become the number one places buyers go first, even before they call a realtor, to preview potential homes for sale that may meet their criteria. Most buyers find there homes this way. If you are doing the searching and are capable of setting an appointment you may be a prime buyer candidate for rebates on your next purchase. Rebates do vary for the home buyer but in most cases they can save the buyer up to 2% of the commssion being offered otherwise paid to the buyer agent. It is a great time to buy.
If you are attempting to sell a property yourself “For Sale by Owner” there are some do’s and dont’s that can make a difference when showing the property to a potential buyer. It is not recommended that you allow anyone in your home without keeping an eye on there whereabouts but be careful on how much you say while walking. You can be your worst enemy if your chatter becomes more of the focus than the preview of the house the buyers may not even remember what they have seen.
Answer the buyers question with a question. An example of this might be: The buyer may ask a question as simple as how large is the yard. Your reply may be “our yard is huge - it is one of the largest in the neighborhood” which of course you think is great but maybe not the buyer. If you had replied to the buyers after their question like this “is a large yard important to you”? then your response would be more in line to meet the question appropriately. Listen then answer the question with a question then answer. It may be the difference in keeping the buyer interest or not.
You can get tips for showing for free at many online sites associated with for sale by owner sellers.
