I woke up this morning with the best intentions. I felt pretty motivated and determined that I am going to plow through my tasks, do some proactive business activities and really start checking things off my list.
Next thing I know, I am reading about politics and getting every opinion about the next President and our economy and the real estate market. I decided to get to work and noticed an email from facebook, then somehow I spent the next hour "playing" on facebook and myspace and just surfing aimlessly.
As a REALTOR, most of us working from home, we have no choice but to be self-motivated, not to mention, self-disciplined. Sometimes it just takes turning off CNN, not reading the news at all and just creating your own world. I closed my email and the notification and put before me only my database of my past, current and future clients and my sphere of influence and decided not to let anything distract me.
Having the vision of what I want to accomplish and a clear picture in my head gets me DOING the things I should be doing. Things seem to flow more naturally if you have the end result in your mind. What do I want to accomplish TODAY, not tomorrow. Do I want to sit down for dinner tonight and say.."I certainly could have accomplished more today?" or do I want to feel that I put in an honest day of effort to reach my goals.
I know that I can trust that the small things that I do today will get me to my goal for tomorrow. So today, feeling like a slacker, I made 3 phone calls to past clients and sent out 3 notes and I feel great about it! I know it seems pretty small, but at least I didn't say "I'll make 3 phone calls and write 3 notes tomorrow!" (Which I will!!) Maybe I'll even do a pop-by!
It's important to carefully look at your neighborhood activity, before deciding on a price for your house.
What you paid for the house + improvements you have made to the house DOES NOT EQUAL the selling price of your house.
You should seek out a Competitive Market Analysis (otherwise known as a CMA) of your area, take a look at active, expired, pending and sold listings.
The active listings are obviously your competition.
Take a look at the expired listings and be sure you don't follow their lead on price, since you actually want to sell your house, instead of it expiring.
The sold listings is where you should focus when setting your price. List your home no more than 4% higher than the reality you see in this section and you will get an offer far sooner than the average days on the market.
The other option is to price it higher, then lower it in a few months to get the same amount you could have sold it for in the beginning. Only after it's on the market for a long time, buyers try to come down harder on the older listings.
The more similar the homes are in an area, the more consistent the selling price will be.
Take a look at price per square foot. This will help you get to your price in an area where homes are not as consistent.
WHAT'S UP WITH THE REAL ESTATE MARKET? Lack of confidence is really what we are talking about here. Reality is that the price of homes has declined. Long-term investments have their ups and downs and real estate is, after all, a long term investment.
NOT IN THE NEWS - If you look at the market over the past decades and decades, real estate increases over time.. no matter what the market is in the short run.
The media version of the real estate market and mortgage lending, for that matter, does nothing to help build it up. Another example of how Bad News is King in the media. Wouldn't you love to see a local highlight each night on how many homes have sold? Now that would be news that this country could use.
It's funny to me.. Real Estate ON SALE NOW... ATTENTION BUYERS! But somehow it gets turned around! If the plasma TV you have been wanting to buy drops in price, should the headlines read.. Economic Crisis? The economy is falling apart! Just an observation that everything has it's ups and downs and real estate is no different.
Everyone who has their home listed at an amount that is unrealistic for the market is making matters worse. If the overpriced homes were not on the market, the saturation problem would be lessened. After all, the majority of the sellers on the market are going to buy a home to move into.
It's the simple law of supply and demand... and right now supply is over demand by 9 to 11 months!
EDUCATION - If you price your house in line with the market and you buy a home that is in line with the market.. any dollars that you feel you've given up on the sale of your home, you are very likely to make up on the purchase on your next home. So pricing it right, in the first place is a win-win situation for you, making a buyer's or seller's market less relevant to the big picture than most people think.
In time confidence in real estate will be restored.
Dream Media - Wouldn't it be great if the media removed the negative spin on the real estate market?
For example:
They could help by talking about how the first-time buyers (or buyers who have not owned a home for the past 3 years) can benefit with the $7500 tax credit through June of 2009. This should be getting buyers excited.
They should talk about how this is the time to buy and let's predict the News of the future. In 2018, a newscaster interviews a real estate investor, who bought properties up during the down market, back in 2008 and now is a ga-zillionaire! Then the news will be that people wish they has bought more!
I guess my point here is that it's all in the attitude and a POSITIVE ATTITUDE and some POSITIVE NEWS would be great!
Below are some numbers that I found to be pretty interesting. The housing market has been consistent over time with appreciation and continues to be a solid investment.
Similar to other long-term investments, real estate will have it's ups and downs, but over time will increase in value.
Here is The Current Median Sales Price of U.S. Homes (found on Realtor.org)
WEST - $341,300
MIDWEST - $165,300
SOUTH- $185,000
NORTHEAST- $276,800
National Trends in the US on Average Home Value
1990 $95,500
1995 $112,900
2000 $139,000
2005 $219,600
2007 $222,600
Purchasing a home is a good investment
because it builds equity over time. However,
to base spending on perceived equity is a bad
idea, equity is not tangible until it is released!
In short, the better your credit score, the more loan options you will have to choose from.
•· know your score
•· take steps to maintain good credit .
What Determines you Credit Score?
•· Your history of how you handle credit obligations (credit cards, car payments, etc.)
•· Your income-to-debt ratio (a comparison of how much money you make to your expenses).
•· Compiled information -Credit bureaus compile a record of debts from credit card companies, banks, department stores and other firms. This information appears on your credit report, so it shows whether you pay your bills on time. Lenders determine your credit rating based on how well you manage your credit obligations.
•· The higher your score, the more flexible lenders will be in your loan approval!
Tips on how to maintain good credit:
Do pay what you owe - regularly and on time?
Don't skip payments?
Do have a checking and a savings account?
Don't hold more than four credit cards?
Don't exceed or continuously increase your line of credit?
Do keep track of your spending and stay within your budget?
Do you have outstanding debt that needs to be "cleaned up"
If you've got credit questions?
Your first step should be to speak with a mortgage professional who can help you better understand what your score means in terms of qualifying for a loan. This should be Free of Charge!
I am happy to connect you to and excellent mortgage lender to help you with determining your credit.
You have finally found that perfect home, signed a purchase agreement, had your inspections and received approval on your mortgage. Congratulations! You are almost there! The only thing that awaits you now is the closing - where you officially receive your property and you have some documents to sign.
Here is an overview of what will be taking place once the closing date has been set:
•· A survey of the home's property will be conducted.
The title will be researched to verify the seller actually owns the property and that there are no claims on it.
You will need to get homeowner's insurance and present proof of it on the closing date. If needed, you will also need to present proof of flood insurance.
Just before closing, it will be a good idea to do a final walk-through of the house to check any repairs that may have been made and make sure that no new damage has been done.
About a day or so before your closing, your bank should provide you with the total amount of your closing costs.
Be sure to have a certified check or money order with that amount when you come to closing.
At the closing meeting, be prepared to sign your name - several times!
Here is a basic overview of what will take place during the meeting itself: Settlement and mortgage documents are examined and signed, any outstanding fees are paid (closing costs and down payments) and the property is officially transferred to you.
Most closings can be hassle-free if you have the right people working on your side. If you have any questions about what to expect on your closing date or during any other part of the process, please feel free to contact me.
The first step in managing your credit score is to know where you stand. Everyone is entitled to 3 free credit reports per year.
annualcreditreport.com is the ONLY authorized online source for you to get a free credit report under federal law. You can get a free report from each of the three national credit reporting companies every 12 months. Some other sites claim to offer "free" credit reports, but may charge you for another product if you accept a "free" report.
Figure out the facts
Take a good look at the date on your report. Credit reports are rarely as spotless as you think. One late payment to Sears can stay on your report for up to seven years.
Look for mistakes. It is estimated that 80% of credit reports contain at least one error. After you identify any discrepancies, you need to eliminate them. A dispute form is available online, or usually accompanies your report if you obtain it through the mail.
Clean up! Identify any debts that are still pending and set up a plan to eliminate them. Clearing up debt can take time, which makes it even more important to start right away!
Add remarks! You have a right to add remarks to your credit report. Take this opportunity to explain or draw attention to a loan that was paid in full with no late payments!
Make fixed payments, even if it's the minimum payment. This proves that you are responsible enough to repay loans as promised. Over time they will outweigh the negative points on your credit report.
Check your report every 90 days or so. This will cut down on ugly surprises when you decided to purchase a new home or auto.
The one we always hear... WHOA on the CREDIT CARDS! I have heard the adage from every direction that if you want to get out of a hole... STOP DIGGING!
STOP DIGGING TIPS!
Carry Cash - give yourself a weekly cash allowance and you'll be more aware of how much you spend. Plus once you run out of money, you're more inclined to stop spending! It's very easy to overspend when you just run a card through a machine!
When only plastic will do.... Use a debit card, instead of a credit card.
LEAVE YOUR CREDIT CARDS AT HOME! One of the easiest ways to stop charging is to not carry the cards with you.
How many cards to you have? Keep a few credit cards with a long standing positive history and close the rest! Having a few good cards will boost your score, but having too many my hurt it. (not to mention leave you tempted to use them!)
LOWER YOUR RATES
Once your spending is under control, move on to reducing your interest rates!
There are so many credit cards out there, they are forced to be competitive. Call them and negotiate your rates. Explain to them that you plan to transfer the balances to another card unless your rate is lowered. Usually card holders with good credit can lower their rate, sometimes substantially!
Transfer it! Move the balance to the card with the lowest rate! Look for offers with low introductory rates, like zero interest for 6 months, etc. Do your best to pay this card off, with 100% of every payment coming right off your balance you will be making serious progress... BUT MARK YOUR CALENDAR! If you still have a balance when the 6 months is up, move it again to the lowest rate possible!
REDUCE your Debt!!
Start getting rid of that debt! Develop a strategy and make it happen!
Break it down - Make a list of each credit card you have, it's balance, minimum payment and interest rate.
I've read lots of strategies on which debt to pay first! It makes sense to me to pay the minimum on all your cards and put your "determination to make larger payments" on the card that has the highest interest rate!
Another strategy that I've heard is to divide the minimum payment by the outstanding balance on all your cards and pay the highest number first. Then move on to the next highest number
Example:
Account Balance Min. Payment How many payments remaining?
Balance divided minimum payment
Sears - 1,200 38.00 31
Visa - 700 60.00 12
Discover- 4,000 100.00 40
In this case you would pay the "extra money" to the visa account until that one is gone, then move on to the Sears account. Once you have the Visa card paid off, add that payment to the Sears card and so on!
Once you start seeing the progress, it becomes addictive to see more progress!
Repeat this process until you are DEBT FREE!
Then you can start thinking further ahead! Start thinking about investing and planning!
Setting goals for today and the future may not be easy, but getting your plan in order will get you where you want to go faster!
IDENTIFY YOUR GOALS!
WHAT? What do you want to accomplish (ex. pay off credit card, save for a home improvement, etc.)
WHEN? Set a specific start and end date for meeting you goal
WHERE? Where are you getting the money to meet your goals? Will it come from saving, cutting other expenses, investing, etc?
WHY? The most important question. Decide why your goal is important to you. Your "why" is what keeps you from spending $5.00 a day on a cup a coffee, instead of putting that money away.
BREAK DOWN YOUR GOALS
It may seem like a big goal, at first. Your goal will become much more manageable when you divide it into small, attainable steps.
Example- If you have a $2000 credit card that you want to pay off in 4 months. Break that down into smaller manageable chunks (about $500 per month) Then figure out how you can conquer that $500 per month. Will you bring lunch to work? Make coffee at home? Do some work for someone?
IMPLEMENT YOUR PLAN
Follow your action steps and track your progress. You might even find the act of crossing off these "to do's" an addictive process!
Go easy on yourself if you get side-tracked! All you need to do is review your goals and adjust them appropriately.
Remember there are often many routes to the same outcome!!!
Happy Saving!
Here is a website the I found very helpful for more financial inspiration!
The Federal Trade Commission lists 66 ways to Save Money
Real Estate values have been falling in much of the US. The pace of new homes is down, as well, with many on the market for months.
There are strategies that can help you sell your home - For a fair price - even in this market.
First of all, you might have to be very aggressive, especially if your local market has tons of homes for sale.
** DON'T START WITH A HIGH PRICE - Asking price is the single most important reason that a house does not sell. In this buyer's market, it is a mistake to set a high price and assume that you can lower it later or lower it in negotiations. Local Real Estate Agents pay the most attention to homes when they are new on the market. These days, agents may not even show your home if it is overpriced.
If you start too high, then lower your price, agents will have newer listings to show. The buyers who do see your home will view your price cut as a sign of desperation and bid low.
WHAT is the CORRECT PRICE? The correct price in this market is toward the low end of the range of prices being asked on comparable homes currently for sale in your neighborhood.
Pricing your home as a bit of a bargain ensures that as many potential buyers as possible will view your home. This is vitally important when the number of sellers outnumber buyers.
KEEP an EYE ON COMPARABLE LISTINGS every two to four weeks if your home has not sold. If local prices are falling, you may have to lower your price to remain competitive. When you do a price drop, make it large enough that the new price is VERY competitive with comparable home or even "The Best Deal."
IMPORTANT- The sale price of neighbors homes for a year or two ago should not even enter your thinking when you set your asking price. It was a very different market then and those prices are not even relevant today.
NOTE - If your home is not attracting many showings, the price is probably the problem. If it is attracting showings but not offers, the home itself is most likely to blame.
Fix it up first - "Fixer Uppers" tend to be ignored in a slow market because buyers can find good deals without doing any work. If your home needs repairs, get the work done before putting it on the market.
Pay attention to Curb Appeal - Buyers have a lot of choices and if your home doesn't look attractive from the street, they will drive past without even stopping. Replace damaged screens, tidy up the lawn and landscaping, pressure wash the sidewalk and mulch around trees and flower beds. If necessary, touch up paint, particularly the front door and trim. Upgrade outdoor lighting fixtures, doorknobs and your doorbell switch or knocker. These small details can evoke an emotional reaction in a home shopper that can lead to a sale.
Freshen up Inside - a fresh coat of paint can go a long way. It also pays to have a professional cleaner to remove years of grime from your kitchen and bathrooms. Your home should sparkle. Smell Matters!! It is extremely difficult to sell a home that reeks of cigarette smoke or pet and cooking odors. Perfuming the home doesn't fool anyone.
Advertise special features of the home. French doors, original woodwork, etc. And be descriptive, rather than writing "inground pool," write "inground pool with stone deck and waterfall."
Help with closing costs - buyers who are short on cash may have trouble paying upfront mortgage expenses. Offer to pay a portion of these costs, and buyers have a reason to choose your home.
Pay for buy downs. Many lenders will lower interest rates by 1/8 to 1/4 percentage point in exchange for an up-front payment. The payment is usually 1% or 2% of the loan amount.
Include details of your incentives in your MLS listing, newspaper ad, flyer's and on your website.
You can also offer real estate agents a bonus, which could be an extra 1% of the purchase price, on top of their usual commission, at closing if they find you a buyer. Mention this only in the MLS listing.
Lastly - Don't Overnegotiate- If a potential buyer's first offer is reasonable, consider accepting it, rather than making a higher counter offer. Buyers have so many homes to choose from today that they sometimes move on to other homes, rather than make a second offer when sellers don't accept their initial bids. If you do not need to sell quickly or your home is having lots of showings, counter, but if you need to sell fast and the initial offer is reasonable, do not risk losing the sale over a small amount of money.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
;)
;)
