realtor Archives - Page 18 of 24

Serious Problems in Overpricing Your Home

Putting your home on the market and want to get the most you can out of the sale? Of course, you do. We all do. However, there are issues associated with listing your home too high. After you review the comps from your neighborhood, you come to your own conclusion that your home is worth more. You can even find Realtors who will agree with you but know that the very best Realtors will tell you that overpricing a home can lead to serious problems.

Problem #1: Listings get the most showings in the first 30 days of being on the market. If a home is priced too high, buyers may choose to ignore it or put it in a “wait and see category.” The longer the home sits unsold, though, the more negatively it is viewed. Buyers will think it must be overpriced or there is something wrong with the home. If you wait too long to do drop the price, most of those “wait and see” buyers will have already moved on and there will be a smaller pool of buyers interested in your listing as the days on the market increase.

If the home is on the market too long, potential buyers will think they are in a better negotiating position and you may end receiving a low ball offer, which can be frustrating. Even if you can negotiate up, it will be for far less than your original asking price. If you want to attract as many potential buyers as possible, it’s important that the home is priced correctly from the onset of it going on the market.

Problem #2: An overpriced home helps your competitors. When a buyer looks at your home and then visits another that is priced the same but comes with more features, your competitor’s home will look like a much better deal.

Problem #3: If your home sits on the market for too long, neighbors and potential buyers will assume that there is a problem with it. The home will be stigmatized, and buyers will either be too turned off or too afraid to check it out.

No one wants to buy a house that nobody else seems to want. A house that sticks on the market for months often generate suspicions that some undisclosed feature or element is making it unsalable.

Problem #4: A buyer is interested in your house and willing to pay the price you are asking. But they need to get money from the bank to pay for it. All banks demand an appraisal of any property they loan out money for, and yours will not be the exception. The market runs the appraiser and they will appraise your property in accordance with it. When the appraiser comes back with a noticeably lower market value than the price the buyer is offering the bank will likely refuse to give the buyer a mortgage. This can lead you from a safe selling to an unsuccessful mortgage application leaving you with no option than seeking more buyers.

The Bottom Line: Find an experienced Real Estate Agent and listen to their advice for pricing your home, stay realistic in your pricing and accomplish your ultimate goal of selling your home. Know that 75% of real estate marketing is the price you set for your home. All of the marketing and advertising in the world will not sell an overpriced home.

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Securing Your Smartphone

As technology advances, so does the use of smartphones. How cool is it to be able to do just about anything online, while on the go? These devices are becoming more commonplace, and the number of mobile phone users around the globe is expected to exceed the 5 billion mark in 2019. Most people don’t leave home or work without having their phone in tow.

Whether it’s calling your coworker, checking your bank account or sending a quick email, smartphones have become the one-stop-shop for conducting business. Now, more than ever, smartphones are being targeted by cybercriminals due to their part in multifactor authentication to access computers, mobile banking and shopping accounts. These accounts often hold sensitive data, credit card information (PCI) and personally identifiable information (PII). As we move into a digital era for the home closing process, smartphones have become another place to review sensitive documents ahead of signing. With such important information being viewed and sometimes stored on your phone, it has become even more vital that you keep your phone secure.

It may be surprising, but the largest risk to your phone security isn’t hackers, it’s you. Forgetting your phone at the table when you leave a restaurant, losing it at the airport or having it plucked from your purse are far more likely scenarios than getting hacked. However, hacking devices is on the rise too, and your phone security strategy should take that into account. Activating the lock screen feature on all your devices is a good place to start. The screen automatically locks when the device is not in use, and it requires a passcode, fingerprint or facial recognition to unlock it. This step helps to ensure that no one can access your device if it is lost or stolen.

Here are some other great tips to help secure your mobile device:

Ensure your phone is always running the latest version of its operating system and apps by enabling automatic updates. These updates often are meant to fix security weaknesses in the software to reduce its chance of being hacked.
When downloading apps to your phone, only use trusted sources such as the Apple App Store, Google Play or the Amazon Appstore. Don’t trust every app on these stores, either. Many apps ask for overly broad permissions, are brand new and not fully tested, or are no longer updated, which could expose you to security vulnerabilities. Be sure to check reviews and for active updating before downloading an app.
Download a credible antivirus app recommended by a trusted source. Your device should be treated just like a computer and protected that way as well.
Many phones today come with software you can enable to remotely track your device if it’s lost or stolen. Even if your phone doesn’t come with this feature, or you would like expanded security options, there are many anti-theft apps available. These apps range from simply pinging your phone’s location to being able to remotely lock and wipe all content from it.
Regularly backing up your data is a great strategy to retain your information. Many phones allow you to set up an automatic backup to store photos, messages, apps and more. Knowing this information is backed up will make it easier to choose to remotely wipe your phone, if needed.

Overall, mobile devices add productivity and flexibility by providing access to resources at any time, from anywhere. Smartphones are becoming our constant companions, so we need to stay vigilant when it comes to mobile security.

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Increase the Value of Your Home, Inexpensively

Considering selling your home by next Spring? You will want to get the best price, of course, so start now by getting your home in tip-top shape. You don’t need to spend a lot of money and can do much on your own. Here are a few ideas and if you need guidance, calling the most experienced Realtor to visit and give you advice is always a good idea.

Deep Clean: Start with decluttering every room and closet. Donate, sell or throw away things you don’t use anymore. Vacuum, mop, & dust every surface, every vent, every blind and scrub the bathrooms. Get down on the floor and get your baseboards and lower cabinet doors wiped down. Wash the walls and make all your windows sparkle. Steam-clean all the carpets. These are all perfect cold, Winter day chores to tackle.

Paint: While you may love your brightly painted rooms, they make it harder to sell as the potential buyer usually can’t see beyond your taste. Use neutral colors and watch as minor flaws are hidden and the rooms are brightened. Simply paint the trim and see a new room appear! Just updating paint jobs, especially in the master bedroom the entry foyer, living room, and kitchen can increase the value of your home.

The Face of the Home: Rent a power washer if you don’t have one and transform the exterior of your home from “lived in” to “like new”. Use it on the siding, brick or wood, sidewalks, driveways, decks, porches, garage doors, any porch furniture that is left out and windows.

Landscaping: Depending on the time of year – if it’s right now, Fall, get the leaves up and off the ground. Rake out gardens and pick up sticks. Cut down any low hanging branches or twigs. Removed dead shrubs and make sure the property is well-edged.

Spruce Up Your Kitchen: No need to gut and rebuild. Add value by replacing cabinet hardware, the faucet in the sink, even appliances if they are dented or overused. Repaint walls and even cabinets.

The Bottom Line: There are so many ways to upgrade your home before you sell it and literally up the value by thousands. A simple change of light switch and outlet covers make a world of difference. So, if you are waiting until Spring to list your home, spend the dark Winter months knocking off a to-do list!

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Homebuyers in November and December are Motivated

It’s a common thought, however misguided, that homes don’t sell during the months of November and December. The truth of the matter is that homes listed during this time period are likely to sell quicker and for a higher asking price.

Motivated Buyers: If there are people out there trudging through often cold, even snowy weather to look at homes for sale, they are motivated. It might be that they have had a job transfer, a family situation, and if you have a home available to look at that is priced right, they will come. The fact that it’s the busiest holiday time is also very telling about their motivation.

Competition: Simply because so many believe this isn’t the ideal time to sell their home, they wait to put it on the market, and with that, you are left with less competition. Remember also, that the internet is instant access to a home listing. Motivated buyers will start online and you want your home to be in the search results. Be sure to have professional pictures taken to showcase your home at it’s very best.

Year-End Tax Breaks: Plenty of buyers wan to reduce their taxes and buying a home lets them deduct the home purchase costs, such as points, interest, and property taxes.

The Bottom Line: Meet with an experienced Realtor and be sure to price your home right. Motivated buyers don’t have the time to negotiate and wait for gradual price deductions. While people will tell you to wait until Spring, the truth is that any home can sell at any time of the year if it is packaged right.

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HOW TITLE INSURANCE PROTECTS ALL HOMEBUYERS

Whether you’re purchasing a new or existing home or refinancing, title insurance protects you against any problems affecting the title to your home.

The Basics
There are two types of title insurance: the owner’s policy and the lender’s policy. The owner’s policy protects your property rights as the homebuyer, whereas the lender’s policy insures the financial investment of the bank or lender. If someone else claims ownership of your property, title insurance typically defends you legally and financially.

Common Risks: Here are some examples of problems with title:

Liens against the property that serve as security for the payment of an obligation (e.g. mortgage liens, judgment liens for unpaid court judgments, federal tax liens, state and local liens for failure to pay real estate taxes or assessments, mechanic’s liens to secure payment for property improvements, liens for recovery of child support payments or, as in New York City, for unpaid parking tickets).
Easements that have been created by contract or arisen through use or adverse prescription (e.g. rights of way for utilities, rights acquired by neighbors because of a fence encroachment).
Building or use restrictions contained in recorded plats, agreements or deeds.
Claims arising out of bankruptcy.

These are just some of the many reasons why getting owner’s title insurance is crucial when buying or refinancing a home. It gives you peace of mind that your property rights are protected.

Refinancing?
When you refinance, you are obtaining a new loan, even if you stay with your original lender. Lenders will usually require a new title search and lender’s policy to protect their investment in the property. Fortunately, homeowners don’t need to purchase a new owner’s policy—the one you bought at closing is good for as long as you or your family own the property. However, you may want to contact an ALTA member to update your policy to reflect changes in your life.

Enduring Value
Owner’s title insurance is a low, one-time fee based on the value of your home. For example, the typical owner’s title insurance policy costs an average of 0.5% of a home’s purchase price. With a home being one of the largest investments you’ll ever make, it’s clear why getting owner’s title insurance is such a smart way to give yourself peace of mind.

More Homebuyer Tips & Information
The American Land Title Association helps educate homebuyers like you about title insurance so you can protect your property rights. Check out Title First Agency to learn more about title insurance and the home closing process.

*This advertising offers a brief description of insurance coverages, products and services and is meant for informational purposes only. Actual coverages may vary by state, company or locality. You may not be eligible for all of the insurance products, coverages or services described in this advertising. For exact terms, conditions, exclusions, and limitations, please contact a title insurance company authorized to do business in your location.

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Red Flags to Watch For When Buying a Home

Avoid buying a home that comes with extra work and expensive repairs. With all the emotion that goes into searching for the perfect home, it’s easy to overlook some very important issues while house hunting that could end up costing you big-time in the end.

Foundation & Structural: A home with problems in this area can end up costing thousands of dollars. The home depends on the sturdiness of the foundation. A few things to be on the lookout for:

Uneven floors – do you see any sloping or even separation form a wall?
Broken foundation blocks – any cracks in exterior brick mean that there could be water pressure build-up.
Hard to open or close doors and windows – a sign that there might be damage from water

Mold: Sometimes this issue results from neglect and other times it is a simple fix. Look where the problem is and if the mold is mostly in small areas it can be resolved. But, it can be a huge red flag and indicate issues with the home, such as major and expensive leaks.

Fresh paint: While it is not uncommon for homeowners to paint their homes to look their very best to sell, it’s important to look for the “patches’ of paint inside and outside the home. The damage that a “patch” is covering could be many different issues that could end up costing a lot of money.

Stains on ceilings: No paint “patches” can show you this red flag and it’s important to find out what is causing these stains. It could be a leak in the roof, ice damming, plumbing issues, etc. These need to be investigated as the repairs could cost thousands.

The neighborhood: Big red flag if there are many homes in the neighborhood on the market. It’s usually not a coincidence when everyone wants to sell their home at the same time. Look around for foreclosures or abandoned lots which indicate a stagnant growth. Look online where you will easily be able to find the crime frequency and sex offender lists. Are there a lot of rentals? Is the street a cut-through during commuting hours? All negative feedback is important as it will affect your ability to sell the home later.

The Bottom Line: Buying a home is a huge deal. It’s of utmost importance to find the top Realtor in the area in which you are looking as they will be able to point out many of these and more red flags. A home inspector can detect problems missed and then with an experienced Realtor you will know if its worth spending money to fix an issue or if you should negotiate a compromise.

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WHAT EVERY REALTOR ® SHOULD KNOW ABOUT OWNER’S TITLE INSURANCE

Make sure all of your clients are protected
You’re a real estate agent, so you know that buying a home can be overwhelming for many of your clients. Homebuyers can easily feel confused and frustrated by the mounds of paperwork they have to sign. Plus, all the fees associated with closing can sometimes be a surprise even to an experienced buyer.

Owner’s title insurance is one of those items often misunderstood by homebuyers at closing, yet its value is tremendous. As an important advisor to your clients, you are in the position to help them understand the value of owner’s title insurance and the dangers that can be incurred without it.

What is title insurance?
Owner’s title insurance is a policy that protects homebuyers’ property rights. For the same reasons that the bank requires a lender’s insurance policy, a homebuyer obtains owner’s title insurance to protect their legal claims to the property.

How it protects your clients
Say, for example, your client recently purchased a new home from a builder, but the builder failed to pay the roofer. Wanting to be paid, the roofer filed a lien against the property. Without owner’s title insurance, your client would be responsible for paying this existing debt—meaning they’d be paying the roofer out of pocket instead of purchasing something nice for their new home, like new living room furniture. This is just one example of how owner’s title insurance protects homebuyers’ from various significant risks. With owner’s title insurance, your client would be protected from certain legal or financial responsibilities.

Enduring value
The good news is that owner’s title insurance protects homebuyers financially, as long as they or their heirs* own the home. For a low, one-time fee (average of 0.5% of purchase price), homebuyers can rest assured, knowing they are protected from inheriting existing debts or claims to their property.

State regulations and CFPB
Each state government regulates its own title insurance costs. In addition, the Consumer Financial Protection Bureau (CFPB) regulates closing and settlement practices which can impact title insurance. Keep in mind that title insurance industry practices vary due to differences in state laws and local real estate customs. The party that pays for the owner’s title insurance policy varies from state to state, and sometimes even within a state. For more information about title insurance, or to find a company approved to issue an owner’s policy, please direct your homebuyer clients to www.homeclosing101.org.

Free resources for Realtors ®

Together, real estate agents, land title insurance professionals, and other stakeholders involved in real estate transactions can protect homebuyers and provide them with the peace of mind they deserve during the home closing process.

For more information about title insurance, and to get free resources for real estate agents, visit Alta.

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Don’t Scare Homebuyers Away. Be Prepared.

Putting your home on the market? There can be the normal challenges you might face (lowball offers, competition, slow market) and a few things that will outright scare people away from even considering your home. Before you list your home, consider having the following inspected:

Windows: Ensure all windows are opening, closing, and locking correctly. Older windows sometimes will not remain open and may need to have the sash cords replaced. An experienced Realtor will point out things that may drain the homebuyer’s bank account, and windows are on that list. You might want to replace them before listing the home or consider adjusting your asking price to compensate for the old windows.
Furnace / Air Conditioning: Have a professional HVAC contractor clean and inspect your furnace prior to listing your home. An HVAC contractor will ensure the heat exchanger is not cracked. Make sure the contractor places a sticker on the furnace and provides a receipt and report so you can provide that to a homebuyer.
Electrical System: It’s not a good idea to try and sell a home with questionable wiring and electrical systems. This is a big one and vital to the value of your home. Problems will be found during the inspection and will have buyers moving on. Have a professional inspect the service entrance cable to ensure there is no fraying or splitting as well as assuring that there are no double-tapped circuit breakers.
Water Damage: An inspector will be looking for signs of leaks or water damage, so it’s in your best interest to get those issues repaired before listing your home. Trying to sell a home with water damage is daunting so it is best to have expert guidance. Additionally, mold is one of the biggest deal-breakers so consider getting a professional mold inspection.

The Bottom Line: The last thing you want to happen when a buyer decides he wants your home is to have one of the above situations occur. Properly preparing your home to sell makes a huge difference. Get the advice of an experienced Realtor who will have a list of contacts that include all types of specialists you will need to handle any of the problems. Buyers are not expecting perfection, but they want to know there aren’t any expensive burdens.

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Buying A Home in the Best School District

When it comes to resale value, even for buyers without children, it’s best to invest in a home in a top school district. These homes often sell faster than homes in lesser school districts. In a case of bad economic times, a home in the lower quality school district declines in home value, while the homes in the top school districts will hold their value.

Do the research. Any information you need for absolutely anything is available online. Do a search to determine the school district or even the specific school, that is the best in the town you will be searching for a new home. There are websites that offer test scores, rankings and demographic information, including student diversity by race and gender, the percentage of students on free lunch programs and the student-teacher ratio, to learn about the schools and school districts you are considering.

A survey on Realtor.com asked random people about their overall buying strategy and how they viewed school performance. The results found that a surprising number of people are willing to give up things to get within the boundaries of a good school district. That, for every five buyers, one buyer would be prepared to give up a garage or bedroom for a good school.

They also found that for every three buyers surveyed, one buyer would even settle for a smaller home to get access to a good school. And over half of those surveyed said they would sacrifice nearby shopping options for a better school.

Beyond sacrificing things in their home purchase, buyers were willing to pay more money for a home in a good school district. One out of five of those surveyed said they would pay between six and ten percent more for a home – and one out of ten people surveyed stated that they’d go even higher, paying up to 20 percent more for a home with access to the right schools.

The Bottom Line: Consult with the best Realtor in the area in which you are looking. The next best resource for neighborhood and nearby school knowledge is your local real estate agent. Even if you don’t have kids, between the Realtor and the research you do, buying a home in good school district affects the value of the home.

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Selling Your Home? Create an Inviting Space

Smart Design Choices to Make the Most of Your Space
No matter what size your living space is, there are a lot of smart design choices to help you make the most of it. You could be living in a small space by choice or necessity, but either way, there’s no need to put up with miniature things and clutter everywhere. Here are some essential tips to transform your home from a claustrophobic area to a fun, comfortable, and functional living space.

Prioritize Organization
The first thing you need to do is get organized. If you’re not one of the lucky people who seem to be born with exceptional organizational skills, then it’s time to learn this skill. Take time to go through your house and plan how you can make the most of your space. Make notes of where you can creatively organize your space. For instance, you might be able to install open shelves in your kitchen for more space, or you could loft your bed in order to add more floor space.

Streamline Everything
When you live in a small house or apartment, it’s essential to constantly evaluate your possessions so that you’re not keeping unnecessary things around. Whether it’s clothes you haven’t worn in years or receipts for stuff you’ve already broken or lost, it’s vital to minimize the clutter as much as you can. In much the same way as learning to get organized, you can also pick up some storage tips that will help you to increase the amount of free space you have. If you can, try to rent a small storage unit where you can house items that you don’t use regularly, but you’d still like to keep, such as holiday decorations, camping/fishing gear, beach umbrellas, and other seasonal belongings.

Leverage Color
Using color to your advantage is something that can totally transform your living space. Painting your home is also one of the most affordable ways of changing its look and feel. You can choose lighter hues for the walls to create an airy effect and make your indoor space feel a lot bigger. When it comes to creating the illusion of space and depth, neutral colors are the best choice. You’ll be able to expand the room with just a coat of paint. You can then add a bit of color and texture to create interest. However, try to stay away from large prints and particularly loud patterns as these tend to dwarf your space, making it feel smaller.

The Bottom Line
When you want to sell your home, there are many other tips and tricks to help you transform any room in your home and make space feel and look a lot bigger than it actually is. Other smart design options include using furnishings that work to visually expand the room, such as low-profile seating to create an illusion of high ceilings. You can also pick furniture that does double duty, such as having a
trunk/coffee table, or a coffee table/fish tank. The sky’s the limit, but you can get started right now by using the three tips outlined above to add more space and depth to so you can make the most of the space in each room.

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