Curb Appeal: Creating a Lasting First Impression

Staging a home for sale also includes creating curb appeal, which is the way the outside of the home is presented. In her book Home Staging: The Winning Way to Sell Your House for More Money, Barb Schwarz, President and CEO of StagedHomes.com, said you can't sell it if you can't see it, so clients should keep their homes the center of focus. To do that, make sure clients' landscaping doesn't impede a view of their homes or is an eyesore to approaching home seekers. Great advice for sellers seeking curb appeal: Cut back all shrubs and bushes to window height, move children's toys to the backyard, and regularly clean and sweep paved driveways. Frequently rake, weed and remove fallen leaves and dead plants from your yard.

Short Sale - How is it Accomplished?

The real estate market transitions from "overheated" to normal, some people are in a position of no equity or negative equity regarding their home's value. In this situation, a seller who wants to sell his or her home will have to come to closing with a significant amount of cash to make the deal work.

What happens to a seller who is in a negative equity position and either does not have the liquid assets to sell or is facing foreclosure but wants to avoid foreclosure or bankruptcy? This is when a "short sale" must be contemplated. In a short sale, the seller's lender is contacted and the financial situation is outlined, along with proof of the home's value and the seller's financial condition.

SHORT PAYOFF

Under these circumstances, lenders often will cooperate with the seller and allow the property to be sold under normal market conditions to maximize the gross sales price and subsequent net to the lender. Upon sale and settlement, the lender will receive all net proceeds, following the payment of customary closing costs including the normal real estate commission, which will generate the lender less money than they are owed, also called a "short payoff." The lender has agreed to take this short payoff and release the lien against the property, thereby allowing the new purchaser to receive clear title to the property.

AVOIDING FORECLOSURE

The short sale also benefits the lender because the alternative - which could be foreclosure - would cost the lender more money by selling the house below market, carrying a vacant house for months and paying to maintain that property. Also, FHA, VA and conventional loan holders, Fannie Mae and Freddie Mac, require lenders to work with borrowers in a reasonable manner in such circumstances.

The short sale is not a miracle cure for all sellers because some lenders will not cooperate in the program. Also, where lenders do cooperate, there is no guarantee that the lender will forgive the remaining indebtedness; each case will be determined on many factors, including a borrower's future ability to pay. Additionally, a short sale could have adverse credit complications for future loan originations plus debt forgiveness may be subject to income tax.

EQUITY STATUS

Therefore, it is suggested that when a seller is about to list a property the seller and real estate agent should discuss the equity situations. If negative equity appears and the seller does not have financial ability to pay the money due at closing, a short sale should be explored immediately. The determination by a cooperating lender will take several weeks, so if the property is listed and a contract is accepted, it would be advisable to make the contract contingent on lender approval of a short sale.

Why use a Realtor?

Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.

But if you're still not convinced of the value of a REALTOR®, here are seven more reasons to use one:

1. Your REALTOR ® can help you determine your buying power - that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders - banks and mortgage companies offer limited choices.

2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.

3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning, schools, etc. There are two things you'll want to know First, will the property provide the environment I want for a home or investment? Second, will the property ha~e resale value when I am ready to sell?

4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase.Your agent can advise you as to which investigations and inspections are recommended or required.

5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports.

You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date

6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.

7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.

thanks to www.realtor.com

7 Tips to Radically Update Your Home (And Not Lose Money!!!)

by Eric Bramlett

Everyone loves to update their homes, and if you live in an older home in an appreciating neighborhood, it can be a fantastic investment. There are some pitfalls to avoid, which can cost a homeowner quite a bit of money because of no return on investment. However, it's better to focus on what TO do and stay the course.

1. Raise the Roof!!!

Not literally, but gut the attic, and raise the ceiling in, at least, the living room. Older homes typically have 8 foot ceilings, and it's one of the first characteristics that buyers notice. It's relatively inexpensive, when you compare your return on investment, to demolish the ceilings of your older home and sheetrock over your new, vaulted ceiling. It's amazing how much larger and lighter your home will feel.

2. Knock Down Walls

Literally, knock down as many walls as you can and still retain the integrity of the home, and the NECESSARY separation of rooms. If you compare older homes to newer homes, you'll notice that older homes are typically "choppy" while newer homes feel "open and flow well." This is due to "line of sight." Newer homes opt for less separation in rooms. You can create this same feeling by demolishing a half-wall that separates your kitchen from the living room or knocking down the wall between the living room and dining room to create one grand room. You'll be AMAZED at the difference it makes.

3. Overhaul Your Kitchen and/or Master Bathroom

These are the two rooms in the house that you can ALMOST go overboard and still get your money back when you sell the home. Refinish or replace the cabinetry, put in new tile and sinks - even install a new, stand-up shower!
When (or if) you put your home on the market, you should see a GREAT return on investment.

4. Add a Master Bathroom

The 1-Bathroom houses from the 1970's and earlier are now obsolete.
Americans have decided that we like a private bathroom for ourselves and another bathroom for our guests and children. While 90% of the house additions are bad ideas because they don't flow well or create poorly usable space, a master bathroom addition is a fantastic way to add more square footage, and more value to your home. Make SURE that your builder ties in the new slab to the old, and make sure that the addition is done properly. A poorly designed or executed addition never adds value - most buyers immediately imagine demolishing the work.

5. Xeriscape Your Lawn

It's trendy, it's cheap - it should be a go! Your homes curb appeal is the first thing that buyers notice, and it's how buyers decide whether or not they'll "click on your house" online to further investigate the interior.
You can xeriscape a ¼ acre lot for around $3000, and you'll more than make up for that when your home goes on the market. Furthermore, it's environmentally & fiscally responsible. Stop wasting water!

6. Paint!!!

It's fairly obvious, but painting your home modern, neutral colors makes a HUGE difference in the appearance of the home. And when you factor in the cost - roughly $0.75/s.f. - it would be a HUGE mistake to forego painting your home when you decide it's time to modernize it. If you're planning on staying in the home for some time, paint it whatever colors you wish, but plan on repainting right before it's time to put it up for sale. If you plan on updating your home in order to sell it, go with neutral colors so that it will appeal to the widest audience.

7. Put in Wood Floors

You won't ALWAYS get your money out of installing wood floors. If you're in a great area, and it's time to replace the floors, look at the cost difference between tile, pergo, and wood. If your home will sell for $250k+ then forget about pergo and, if you choose tile, make sure it's not cheap tile. If the cost difference between wood and your other options is negligible, then go with wood - it appeals to the most buyers.

Updating your older home can be very fun, very rewarding, and potentially very lucrative. Older homes in established neighborhoods are ripe for updating and can draw a premium on the marketplace. Make sure and follow these guidelines, and you should see a great return on your investment.

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Sellers, the best bang for your buck!

Don't assume that because home prices are out of free-fall that you can stab a For Sale sign in your lawn and be flooded with offers. This isn't 2003. If you want maximum buck for your property, you need to make sure it makes a bang when buyers see it.
Focus on high-impact improvements that can be done in less than 30 days and enhance the two most important aspects of the buyer experience:

The first impression.
The "feel" that buyers get when they walk through your home.

The Big Five

The following five improvements give homeowners the best return on investment when they sell:

Upgrade the kitchen. The kitchen is the heart of the home and the room where luxury becomes practicality. Most buyers spend a great deal of time in the kitchen, and it sets the tone for their walk-through. If your kitchen is outdated, hire a professional kitchen remodeling company to give you a quote for new countertops and cabinets. Pick out a new sink and sleek clean cabinet hardware. When you rip out your old cabinets and counters, hire a flooring person to lay down new flooring, whether it's laminate or tile. Paint using a color that complements your tile or countertop colors. Don't install new appliances unless yours are very old and worn.
Likely cost: $20,000-$25,000.
Likely payoff: Up to $40,000 in increased sale price.

Redo the bathroom. If you don't have the budget for a kitchen upgrade, the next best place to spend your cash is in the primary or master bathroom. Here, cosmetic upgrades can make a big difference. Have the bathtub bleached so it's snow-white. Re-tile the shower/tub surround. Replace a fabric or plastic shower curtain with a glass enclosure. Replace linoleum with ceramic floor tile. Upgrade old sink fixtures. Either replace an old wall mirror or frame it in dark wood to make it look stylish. Replace outdated medicine cabinets in wood that matches the mirror frame. Replace outdated light fixtures. Paint. You can do the same in other bathrooms and create a very classy, coordinated effect.
Likely cost: $5,000 for a master bath; $1,000-$2,000 for smaller baths.
Likely payoff: Up to $10,000 for each upgraded bathroom. Main or master baths give you the most profit.

Landscape the front yard. Hire a landscaping company if you're busy; do it yourself if you're not. But turn your front yard into a frame for your home. Tile or brick the walkways and line them with lights. Lay down new sod. Replace landscaping plants or plant new ones, interspersing them with potted plants and statuary for a nice mixed effect. Upgrade outdoor lighting. Consider a subtle fountain for the sound of falling water. Pay attention to how your front door looks. If it's peeled or dated, replace it.
Likely cost: $3,000-$10,000.
Likely payoff: $15,000-$20,000, plus greater curb appeal.

Improve the entry area. What do people see when they enter your home? A dim entry foyer with stained laminate flooring and poor lighting? Consider first impressions and line of sight. For example, if you just upgraded your kitchen, why would you want something blocking the view from your entryway? Upgrade your flooring -- install new tile or laminate, or if the floor is wood, have it refinished. Try colorful rugs. Install brighter, more modern light fixtures.
Likely cost: $1,000-$3,000.
Likely payoff: $3,000-$5,000.

Paint. Color is a personal choice, true, and your buyers will probably change the paint colors when they move in, but that's no reason not to paint when selling. You're out to showcase your home in its best light, and taking the time and trouble to hire a professional painter tells buyers you have taken care of your home. Don't fall into the "white or beige" trap, but also avoid rich, dark colors, because those don't appeal to everyone. Think about richer colors with wider appeal: khakis, sage greens, rich tans, subtle Tuscan golds. Hire a pro and focus on the details: window and door trim, baseboards, crown molding and so on.
Likely cost: $3,000-$5,000.
Likely payoff: $5,000-$7,500, plus faster offers.

There's much else you can do, but these choices have shown time and again that they deliver the most money on the final sale for sellers.

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