This is 2011 and each viewer of homes on the Internet has one and only one goal in mind and that is to eliminate your home from further consideration. Just because you are thinking that your house is so gorgeous and wonderfully done, there are 10 other buyers who don't agree with you. The purpose of video exposure is to create an environment where we critique our competition with no consequence to us. Why have all these TV programs on decorating been so popular? Surely a little learning occurs for us but a lot of the fun comes from criticizing the designer. We love to pick apart what is assembled and redo because we can do it better! That is one factor of staging your home with a professional when getting ready to sell that you don't want to overlook.
What do we mean by this term "staging"? Do we really have to set it up on a stage and look at it or do we produce and direct a production worthy of Broadway? The dictionary includes both descriptions and either are correct. So when we stage our homes we are producing a platform to epitomize the best we can offer. As on Broadway we want to showcase a look and a feel about how we live in this home and we want it choreographed as perfect. We want the buyers to be impressed and want them to come and visit in person not just on the net. We long for approval from a potential buyer not a write off of our home because of something or some picture that is not quite right. How are your photos portraying your home that you are trying to sell? Are they inviting to visitors to include on an actual tour of homes or are they dismissing you as a no? Anything from lack of warmth in the setting, low visual impact or too vanilla of a paint job can be the turnoff to a buyer. What can you do to help create the warmth and visual appeal needed?
Get a good stager to professionally arrange furniture and give it a look of beauty queen appeal from outside looking in rather than inside looking out. This will make all the difference in whether your home is chosen for "real look" or the elimination on the internet. When we live in a house for 1 year or 10 years we tend not to see it as others do but to see it as we want and like. This is the big mistake that sellers make. They tend to forget that x and y generation people (the majority of today's buyers) have different tastes than we do. We don't want to project our tastes on them because it is very different from theirs and by staging we have that opportunity to welcome them with fresh and appealing ideas. In 25 years of selling real estate I have never listed a home for sale that did not need something added or subtracted or renewed. It is the difference between sold and expired!
Thursday, February 10, 2011
Wednesday, February 9, 2011
You Can Sell Your Home in Today's Economy
As I was writing yesterday morning about the number of homes that were selling in the US, it is very possible for you to sell yours as well because there are three more groups buying. Move up buyers are taking less for their present home but getting more equity in the new one they purchase. How does that work? When you sell a $200000 home for 20% less at $160000 and you buy a larger home at $400000 and get a 20% discount making it $320000. Even though you feel you are losing $40000, you are gaining $80000 on the new house increasing your equity by $40000. That is a no brainer I believe. Why don't people view it as such? The feeling of losing is probably first and foremost in their mind. They are not open to abundance concept only to scarcity mode. You may want more space or a different layout in a home and are not willing to add on a room or renovate your present situation. Purchasing a new house is the answer. Some folks are renting out their houses and buying if they have the down payment available and using this as a retirement vehicle. Good strategy also.
A fifth group of buyers is taking advantage of the short sale opportunities occurring in the marketplace as we speak. These are all sellers who have lost their jobs or unable to afford the homes they purchased and now are getting permission from their lender to sell for less than mortgage owed. They represent a wealth of investment opportunity for the buying public and can be purchased for 20-30% under market value. You don't need cash or a certified check to buy these because the banks will lend through normal lending practices. If you heard that they were difficult to purchase and steered away from them, you might want to reconsider this avenue. Look for Certified Distressed Property Expert in real estate brokerage to help you as they know how to handle this scenario.
Another group buying now are young families who rented when they first married and are now expecting their first child and want a home to call their own. The number of babies entering the world today is incredible and the baby boom is significant once again. These young couples are looking to buy good values but they do want nice amenities in them. They want granite, stainless appliances, hardwood floors and 2 story great rooms to complete an ideal house that they will invest in for the future. Many of these couples have saved up good down payments and have excellent jobs so they are great buyers. We have so many opportunities in 2011 to start your real estate investment portfolio. Waiting until the market gets better is not a money making strategy nor is waiting until prices bottom out a right choice. Now is right!
A fifth group of buyers is taking advantage of the short sale opportunities occurring in the marketplace as we speak. These are all sellers who have lost their jobs or unable to afford the homes they purchased and now are getting permission from their lender to sell for less than mortgage owed. They represent a wealth of investment opportunity for the buying public and can be purchased for 20-30% under market value. You don't need cash or a certified check to buy these because the banks will lend through normal lending practices. If you heard that they were difficult to purchase and steered away from them, you might want to reconsider this avenue. Look for Certified Distressed Property Expert in real estate brokerage to help you as they know how to handle this scenario.
Another group buying now are young families who rented when they first married and are now expecting their first child and want a home to call their own. The number of babies entering the world today is incredible and the baby boom is significant once again. These young couples are looking to buy good values but they do want nice amenities in them. They want granite, stainless appliances, hardwood floors and 2 story great rooms to complete an ideal house that they will invest in for the future. Many of these couples have saved up good down payments and have excellent jobs so they are great buyers. We have so many opportunities in 2011 to start your real estate investment portfolio. Waiting until the market gets better is not a money making strategy nor is waiting until prices bottom out a right choice. Now is right!
Tuesday, February 8, 2011
You Can Sell Your Home in Today's Economy
As I write from my desk on February 8, 2011, I am finding lots of homes being sold even in these tough economic times. You must have someplace to live and call home so why not take an opportunity to get a real bargain? Many 1st time buyers are in the marketplace those in age from 21-36 years who see this as a tremendous advantage to acquiring wealth. Values will rise again however since we don't know when we tend to shy away. We hear that the stock market is rising daily so we opt for the unknown and the risk rather than the future investment that we can enjoy now. This is particularly true of the baby boomers who are more negative than positive about the future. Generation X and Y are finding opportunity in distressful situations and buying property to substantiate that value. Another group of individuals taking advantage of the low prices are the international buyers.
The Asians, South Americans and the Mid Easterners are buying with cash a lot of our commercial and residential land. Just last week a German group sold one of Fannie Mae's offices that they had purchased the year before and doubled their money. They took advantage of our poor, wreckless habit of over extending and made a nice investment and within one year made a cool $40 million profit. This can work when you are buying a residence as well as investment property. Buy when prices are low not when they are high. The object of home ownership is steady accumulation of wealth and growth in your investment and not overnight gain. Buying when the market is low is the ideal time to acquire wealth because if you take out a loan the interest rate is generally lower and the price advantage you get from a seller is greater.
What other group of individuals is purchasing up foreclosures now? The investors are getting some unbelievable deals on the court house steps every month in every state. Some states such as Ca, Az,Nv,Fl and Ga offer houses for 30% or more under value. Good investment in the future for certain and this group knows that they can rent it in a heartbeat. So many of us have screwed up the credit that renting is the only option. Investors realize that housing prices will rise again in the future and they want to be in a good position. They are getting materials to fix up and repair these properties at lower costs than they had in many years. The helpers they are hiring to do the work are working for less money so it is win win for both sides.
Next blog we will talk about three more groups of people who are making money in real estate now.
.
The Asians, South Americans and the Mid Easterners are buying with cash a lot of our commercial and residential land. Just last week a German group sold one of Fannie Mae's offices that they had purchased the year before and doubled their money. They took advantage of our poor, wreckless habit of over extending and made a nice investment and within one year made a cool $40 million profit. This can work when you are buying a residence as well as investment property. Buy when prices are low not when they are high. The object of home ownership is steady accumulation of wealth and growth in your investment and not overnight gain. Buying when the market is low is the ideal time to acquire wealth because if you take out a loan the interest rate is generally lower and the price advantage you get from a seller is greater.
What other group of individuals is purchasing up foreclosures now? The investors are getting some unbelievable deals on the court house steps every month in every state. Some states such as Ca, Az,Nv,Fl and Ga offer houses for 30% or more under value. Good investment in the future for certain and this group knows that they can rent it in a heartbeat. So many of us have screwed up the credit that renting is the only option. Investors realize that housing prices will rise again in the future and they want to be in a good position. They are getting materials to fix up and repair these properties at lower costs than they had in many years. The helpers they are hiring to do the work are working for less money so it is win win for both sides.
Next blog we will talk about three more groups of people who are making money in real estate now.
.
Thursday, February 3, 2011
Pitfalls of Leasing a Home Part 4
We could have really used a good camera or video recorder when we took possession of a house in Atlanta in October 2008. Why is that important? The move in condition of a home will be forgotten by you or the landlord when you move 3 years later. Only the picture remains and it says a thousand words as testimony to condition of property. The small things such as kitchen faucets or window blind pulls can be a source of dispute between landlord and tenant but with photos you have proof of original condition. Certainly normal wear and tear can be expected during the lease period however you want to address that up front and not at move out time. Our expections may differ greatly from the other side because of familiarity with lease process, experience with rentals or jumping in as a novice landlord. Had the landlord ever leased a residential property before or did they have experience in handling tenants needs when repairs were required? If the landlord is inexperienced, it will be a learning situation for him and it is never easy to learn on this sort of a job!
Of course you will have the move in agreement from 3 years ago but items may have been replaced or damaged that were simply forgotten and with the hectic lives we lead it is inevitable. Protect yourself as the tenant should because you can believe that the landlord will do the same. My brother is a judge in a local court and he sees this every day because security deposit returns are the #1 issue for lawsuits. It is generally a good idea to contact the landlord on a regular basis via e-mail or a call to keep in the loop. What does that have to do with being a good tenant? Lots of stuff! If you notify the landlord monthly when you send a check or drop off a payment, that helps to keep them on their toes. It shows seriousness of purpose and you find out all sorts of things such as if a husband and wife share the information you provide. Sometimes they don't talk about their rental properties and one side may not get your message. We had one landlord situation where the husband and wife were separating and they did not live together or communicate about their properties. Both parties were on signed documents but each had to be called separately and e-mailed individually. Things don't always start that way but can end up like that.
Another way to keep them in the loop is to take pictures of the yard or back porch so they see over the years how well the house has been cared for and how much pride you take in keeping it this way. One thought crossed my mind and that was if the neighborhood had parties out in the cul de sac for Halloween or Easter, you could send them pictures of involvement in the SD. That lends credibility to your committement when you lease. Yes, not every tenant will do this however, for those that want to became part of the bigger picture it can work well. We always liked to join in the experience of meeting and getting to know the people, kids and their pets where we live. Besides you might want to make a contribution to better the neighborhood even if it is a short time stay.
Of course you will have the move in agreement from 3 years ago but items may have been replaced or damaged that were simply forgotten and with the hectic lives we lead it is inevitable. Protect yourself as the tenant should because you can believe that the landlord will do the same. My brother is a judge in a local court and he sees this every day because security deposit returns are the #1 issue for lawsuits. It is generally a good idea to contact the landlord on a regular basis via e-mail or a call to keep in the loop. What does that have to do with being a good tenant? Lots of stuff! If you notify the landlord monthly when you send a check or drop off a payment, that helps to keep them on their toes. It shows seriousness of purpose and you find out all sorts of things such as if a husband and wife share the information you provide. Sometimes they don't talk about their rental properties and one side may not get your message. We had one landlord situation where the husband and wife were separating and they did not live together or communicate about their properties. Both parties were on signed documents but each had to be called separately and e-mailed individually. Things don't always start that way but can end up like that.
Another way to keep them in the loop is to take pictures of the yard or back porch so they see over the years how well the house has been cared for and how much pride you take in keeping it this way. One thought crossed my mind and that was if the neighborhood had parties out in the cul de sac for Halloween or Easter, you could send them pictures of involvement in the SD. That lends credibility to your committement when you lease. Yes, not every tenant will do this however, for those that want to became part of the bigger picture it can work well. We always liked to join in the experience of meeting and getting to know the people, kids and their pets where we live. Besides you might want to make a contribution to better the neighborhood even if it is a short time stay.
Friday, January 28, 2011
Legalities of the Lease in Rental Homes Part 3
Boy did we find out ever so quickly that unless things are in writing and signed by all parties it is worthless and you might as well save your breath. Here is what happened to us just before Christmas. The owners sent us a new lease with increase in rent which of course I e-mailed to them and asked them to reconsider because fair market rental pricing had dropped in neighborhood to $1350 mo verses $1595 mo. The owner said she could not do that and let her know by Nov 22 at 5pm if we wished to renew at the rate of $1595. My husband called her husband and said fine about 7pm that evening we would sign the lease and stay another year. The husband said fine and he would tell his wife to disregard everything else and the lease would be forthcoming. My husband had just had a hip replacement operation on Sept 23 so he was not fully recovered from the surgery and that would make it very difficult for us to move. Well, we took his word thinking we were ok three days before Thanksgiving. Not so because I did not get the lease to the UPS office until Friday Nov 26 and they did not receive it until Dec 1st, they issued notice to vacate on Jan 8th.
Have you ever tried to get a suitable place before Christmas and be ready to move two weeks after the holidays? Nearly impossible for baby boomers in their 60's with 40 years of accumulated furniture and stuff. God must have been watching over because he sure helped us with this nightmare. I guess if the owner had told us up front that she wanted to move back in to the house, it wouldn't have been so bad and we would have accepted that. They decided to keep our security deposit and I had a feeling this would happen so we took an attorney with us at the move out time. He wrote a letter to substantiate the condition of the house and property as an eye witness because we will have to go to court. We took lots of photos at that time to document the appearance of the house.
Landlord/tenant security deposit problems are the most prevalent in small claims court today according to the circle of attorneys and judges that I know. Judges will normally take the side of the person they feel is right and it is usually 50% landlord and 50% tenant. We feel that we did our best to adhere to the rules and keep the owners property in excellent condition and leave it even better than it was after 27 months. Only a judge will answer that question. But just because you as a tenant replace broken items or paint and fixes a mailbox or plants flowers or grass doesn't mean anything to the owner because it was not in the lease. I guess because of our upbringing we try to always be good citizens and care for items of others.
Have you ever tried to get a suitable place before Christmas and be ready to move two weeks after the holidays? Nearly impossible for baby boomers in their 60's with 40 years of accumulated furniture and stuff. God must have been watching over because he sure helped us with this nightmare. I guess if the owner had told us up front that she wanted to move back in to the house, it wouldn't have been so bad and we would have accepted that. They decided to keep our security deposit and I had a feeling this would happen so we took an attorney with us at the move out time. He wrote a letter to substantiate the condition of the house and property as an eye witness because we will have to go to court. We took lots of photos at that time to document the appearance of the house.
Landlord/tenant security deposit problems are the most prevalent in small claims court today according to the circle of attorneys and judges that I know. Judges will normally take the side of the person they feel is right and it is usually 50% landlord and 50% tenant. We feel that we did our best to adhere to the rules and keep the owners property in excellent condition and leave it even better than it was after 27 months. Only a judge will answer that question. But just because you as a tenant replace broken items or paint and fixes a mailbox or plants flowers or grass doesn't mean anything to the owner because it was not in the lease. I guess because of our upbringing we try to always be good citizens and care for items of others.
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