Bob's Blog

Take the Trauma Out of Home Buying

2008-03-25T18:00:22Z

10 Things to Take the Trauma Out of Home Buying

Find a real estate professional who's simpatico. Home buying is not only a big financial commitment, but also an emotional one. It's critical that the practitioner you choose is both skilled and a good fit with your personality.
Remember, there's no "right" time to buy, any more than there's a right time to sell. If you find a home now, don't try to second-guess the interest rates or the housing market by waiting. Changes don't usually occur fast enough to make that much difference in price, and a good home won't stay on the market long.
Don't ask for too many opinions. It's natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision.
Accept that no house is ever perfect. Focus in on the things that are most important to you and let the minor ones go.
Don't try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to "win" by getting an extra-low price may lose you the home you love.
Remember your home doesn't exist in a vacuum. Don't get so caught up in the physical aspects of the house itself-room size, kitchen-that you forget such issues as amenities, noise level, etc., that have a big impact on what it's like to live in your new home.
Don't wait until you've found a home and made an offer to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.
Factor in maintenance and repair costs in your post-home-buying budget. Even if you buy a new home, there will be some costs. Don't leave yourself short and let your home deteriorate.
Accept that a little buyer's remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big commitment, but it also yields big benefits.
Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated historically, a home's most important role is as a comfortable, safe place to live.

Showing Tips for Sellers

2008-03-25T17:49:07Z

OK, you have a showing scheduled. Great! Now what can you do quickly to put your best foot forward? Here are some things you can do in about 20 minutes - 10 minutes if you have a helper.

Turn on a lot of lights and put on some soft music.
Keep a box or two (or three if you're like me ) in a closet - put any clutter in the boxes - you can put it back after the showing so you can live your life. Kitchen counters, table tops and desk tops should be as free from "stuff" as possible .
Get all dirty dishes/glasses, etc. out of the kitchen sink. Wipe the sink out with a damp cloth. Wipe the counters quickly.
Put away toiletries in the bathrooms and put out nice hand towels. Vanity tops should be as clutter free as possible.
If the shower/tub is wet from recent use, take your bath towel and wipe it down. Use the same towel to wipe down the sink and vanity, then throw it in a hamper.
Do a brush and flush on the toilets. Keeping a can of cleanser and a toilet brush in each bathroom makes this a snap.
Make the beds!
Pick up all clothes and put away.
Set the thermostat at a comfortable level.
Vacuum quickly.
Sweep and/or damp mop vinyl and ceramic floors.
Put away valuables, financial records, and prescription medicines.
Spray some air freshener - especially if you have pets or smoke. Smokers - dishes of vinegar can help knock down the smoke smell, and it's cheap. Get rid of them before the showing. (Do not smoke indoors while you are trying to sell your house!)
Pets - make sure kitty litter boxes are clean.
Leave or make yourself scarce! (If you are selling your home yourself, you will have to decide if you are comfortable letting visitors wander through your home unescorted).

Homeowner’s Insurance and Your Credit History

2008-02-20T20:03:01Z

Homeowner's Insurance and Your Credit History

Unless you have recently purchased a home or refinanced the home you're currently living in, you may not be aware that insurance companies are now looking at credit scores. According to the Insurance Information Institute (a non-profit organization, www.iii.org), insurance companies have learned that a person's credit history is an accurate predictor of risk. Lenders also look at a person's credit history, but they do not assess the same factors as insurance companies.

According to Fair, Isaac & Company (a provider of consumer credit scoring models and formulas, www.fairisaac.com) insurance companies assess and weight these factors:

Factors Weighting

How much you owe 30%

Length of credit history 15%

Payment history; e.g. late payments, foreclosures, liens, etc. 35%

Types of credit; e.g. retail, credit cards, finance companies, etc. 10%

New credit; i.e. how long it's been since you've opened a new account 10%

If you have a good or great credit scores, it is likely that your homeowner's insurance rate will be lower. If your credit scores are sub-standard, you need to do two things: (1) work on repairing your credit (an excellent book: Credit Repair, by Robin Leonard & Deanne Loonin); and (2) shop around for different lenders and different homeowner's insurance providers. You can also lower your rate by raising your deductible amount.

If you need to repair your credit, keep in mind that:

You are not alone.
You have legal rights.
You can do it by yourself without paying high fees for an attorney or credit repair clinic.
Nobody's credit is too "poor" to repair.
The first step is to set a budget and stick to it.
The second step is to cut up all or most of your credit cards.

Recommendation:

Do a credit check on yourself once per year to stay on top of your credit scores and take the appropriate steps to improve your credit history and lower your homeowner's insurance rates. The three major credit bureaus who can provide you with information on your credit history are:

Equifax (www.equifax.com)
TransUnion (www.tuc.com)
Experian (www.experian.com)

Ten Steps to Selling Your Home - For-Sale-By-Owner

2008-02-20T09:25:02Z

Ten Steps to Selling Your Home - For-Sale-By-Owner

Define your goals, wants, needs and expectations. A good place to begin is by exploring your short and long term goals in life and how selling your home fits in.
Determine the best price for what's going on in the market right now. Assess the current state of the market and what comparable homes are actually selling for by reviewing a Comparative Market Analysis (CMA) on your home. That way, you can objectively determine its fair market value and price it right.
Prepare your property so that it is in top-selling condition. Most of us don't keep our homes in top-selling condition. Think about your home from a buyer's point of view. Repair, replace or remove items in your home so that it makes a GREAT first impression.
Implement time-proven, research-based marketing strategies. Market your home to as many people as possible using for sale signs, flyer boxes, open houses, feedback tracking and web listings.
Show your property. Ensure that your home is always in top-selling condition. When you leave for work, make sure that your home remains in top-selling condition. You know what they say about first impressions!
Receive an offer. When a buyer decides to buy your home, an offer will be presented. Consult with legal counsel.
Negotiate to sell. Most offers require some level of negotiation. Decide your parameters and be prepared to negotiate towards a win-win situation.
Have your home appraised and inspected. Once you have accepted an offer, work with the buyer or buyer's agent to coordinate an appraisal, inspections and a survey (if required). If the buyer requires that certain repairs be made on your home, negotiate or make them to move successfully from contract to closing.
Prepare for closing. A few days before closing (also known as settlement), contact the title company and the buyer or buyer's agent to ensure that all the necessary forms and documents have been prepared. Consult with legal counsel.
Close! At the closing meeting, ownership of your property is legally transferred to the buyer.

Showing Your Home Yourself - Security Tips

2008-02-15T18:36:40Z

If you decide to sell your home yourself, OK. Here are some tips about showing a home yourself.

For your own safety, never set an appointment with anyone to see your home unless they have given you their name and number and you have called back to verify that number. An easy way to do this is to say. "Let me check with my husband/wife for the best time and I will call you back." Use this method even if you are not married. You can also check the phone number on the Internet or with the information service of your local phone company.
Never let potential buyers know your schedule. Don't ever tell them when you won't be at home, when your spouse won't be home, when you pick up the kids, when you work, when you will be on vacation, etc.
Never give unknown callers information about your home's security such as deadlock bolts, security systems, and so forth.
Always have a back-up plan when you allow strangers into your home, especially if you have children. Have a neighbor look out for you until the lookers have gone.
Never let a stranger into your home without seeing some identification. If the person says he/she is a real estate agent, ask for a card, then consider calling his/her office to verify the information if you don't recognize the person.
Keep a log of everyone who has looked at your house. Get their name, telephone number, address, car description, tag number, and any additional information that could be helpful in the event of a future problem.
If you use a flyer to advertise your home, don't include any information that might breach security.
Remove from sight all valuables, including guns, jewelry, silverware, and collections. Also put away all prescription drugs.
Never leave strangers alone, and watch their every move while they're in your home. Particularly watch out if a "family" comes to see your home and then they split up once they are inside.

Staging Tips for Sellers

2008-02-15T18:21:49Z

STAGING TIPS FOR SELLERS

Curb appeal is important. You have to get people out of the car. Once you've done that, people want to know that you have taken care of the house. Finally, people will try to envision their own belongings in your house. Pay attention to condition and color of walls, light fixtures, flooring, window treatments, and landscaping. Make a list of items to improve on.

Entrance

Consider painting/staining the front door.
Ensure that all hardware on front door is clean and attractive.
Replace any old or torn screen doors.
Add fresh flowers or a plant to the foyer area of the house.

Front Yard

Keep grass trimmed.
Rake leaves, pick up debris.
Apply weed killer if needed.
Plant flowers to add color.
Put away lawn and garden equipment, including the garden hose.
Put away children's toys and any other clutter.

Walls

Repair any holes (other than nail holes for current wall décor).
Consider painting walls a neutral color; it helps buyers visualize their own belongings in the house.

Carpets

Make sure they are clean.
If they are not in good condition and you have good hardwood floors underneath, consider removing the carpeting.
If they are not in good condition and you do not have hardwood underneath, consider replacement.

Window treatments

Take down anything worn or dated and consider replacing with neutral, inexpensive window coverings or blinds.
Open window coverings before showings - natural light is a selling point.
Living and Family Rooms
Remove excess furniture so potential buyers can easily walk around the room. Put toys away.
Consider replacing dated or showy light fixtures with something simple.

Bedrooms

Remove unnecessary furniture.
Clean out closets so they appear neat and roomy.
Replace dated or worn bedding with something neutral and inexpensive.
Add throw pillows.

Bathrooms

Thoroughly clean all bathrooms every day.
Consider replacing the shower liner, the shower curtain, and the toilet seats.
Pull the shower curtain half way back - it will add about 2 feet to the room.
Keep toilet paper dispensers full (Yes, people will use your bathrooms).
If tile grout is stained or mildewed clean or re-grout.
Remove rugs and coverings around the toilet.
Put away your toiletries.

Kitchen

Make the kitchen as clean as possible.
Replace stained or worn flooring.
Remove small appliances and clutter from countertops.
Make eating areas seem roomier by removing leaves or chairs from the table.
Sweep and/or mop the floor every day.
Wipe down countertops and appliances every day.
Consider new hardware for cabinets.

Dining Room

Make the room seem larger by removing leaves or chairs from the table.
Remove excess furniture.
If you have heavily patterned wallpaper, consider removing it and painting with a neutral color.
Ensure that china cabinets are clean and contents are clean.

Helping Children Cope with Moving

2008-02-15T18:13:16Z

Moving can be a challenging time for anybody. With all the things that need to get done, it's important to remember how moving impacts children. Here are a few ideas on how to make the road a little smoother for kids.

Show the children the new home and their new room prior to moving. If this is not possible, pictures or videos will help them visualize where they are going.
Assure children that you won't forget their friends.
Make a scrapbook of the old home and neighborhood.
Throw a good-bye party. At the party have their friends sign a t-shirt.
Have your children write good-bye letters and enclose their new address. You may wish to call the other children's parents so that they will encourage return letters.
When packing, give your children their own box and let them decorate it.
Start a scrapbook for your new home.
Visit your children's new school, park, church, etc. Take a camera.
Help your children invite new friends over to your new home.
Let your children choose a new favorite restaurant. This may help them feel in control of their New World.
Encourage them to send letters about their new home to their friends.
Involve your children in groups, sports, and activities like the ones they used to participate in.

Remember, even if you only lived in a home for a few years, to a young child it is nearly their entire lifetime.

Should a seller pay to have the home inspected when they list?

2008-02-15T18:07:55Z

If you are planning to sell your home, should you have professional inspections done?

My answer to this is a resounding YES, even if the city you live in does require point-of-sale inspections. Having your home inspected and making necessary repairs very early in the selling process accomplishes the following:

You can make the inspection results available to prospective buyers - giving them comfort that the home is in good condition and may not require an inspection that THEY have to pay for.
You reduce the likelihood of a second round of negotiations on price after the Buyer's inspection is completed.
You can frequently complete needed work according to your schedule, rather than being rushed into having everything completed in a very short time period (which can significantly increase the cost).
You might even be able to do some of the repairs yourself, bringing the cost down to that of just the materials and some sweat. If you wait until a problem shows up on an inspection report that the Buyer has paid for, it might be too late to do it yourself. Many Buyer's agents specify that all repairs are to be completed professionally with paid invoices provided as evidence of completion of the work.

Here is a list of inspections you may wish to consider having done very early in the selling process:

General Home Inspection
Pest/Wood Destroying Insects Inspection
Radon Testing
Septic System Testing
Water Potability and Well Flow Rate (only if you have well water)

When you get the results, look for health, safety, and structural issues. These are the ones that you should focus on first.

If you would like a list of inspectors that can assist you in this, I would be happy to provide that to you at no cost.

Bob's Blog

Take the Trauma Out of Home Buying

10 Things to Take the Trauma Out of Home Buying

Find a real estate professional who's simpatico. Home buying is not only a big financial commitment, but also an emotional one. It's critical that the practitioner you choose is both skilled and a good fit with your personality.

Don't ask for too many opinions. It's natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision.

Accept that no house is ever perfect. Focus in on the things that are most important to you and let the minor ones go.

Don't try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to "win" by getting an extra-low price may lose you the home you love.

Remember your home doesn't exist in a vacuum. Don't get so caught up in the physical aspects of the house itself-room size, kitchen-that you forget such issues as amenities, noise level, etc., that have a big impact on what it's like to live in your new home.

Don't wait until you've found a home and made an offer to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

Factor in maintenance and repair costs in your post-home-buying budget. Even if you buy a new home, there will be some costs. Don't leave yourself short and let your home deteriorate.

Accept that a little buyer's remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big commitment, but it also yields big benefits.