In recent years, millions of homeowners have taken advantage of low rates and refinanced their mortgages. This article describes the advantages and possible pitfalls associated with a "refi."
Provided By Yahoo! Finance
Before You Start:
•Remember that refinancing to reduce debt can be a smart move, but refinancing in order to borrow more for consumer purchases (car, vacation, etc.) could set you back significantly.
•Read the fine print on your current mortgage to learn whether you'll be assessed penalties or fees for "getting out" of that loan early.
•Make sure you know whether you have a fixed or variable interest rate and what the terms are.
Home Refinancing Basics
In recent years, Americans seeking to take advantage of low interest rates have lined up to refinance their mortgages. In fact, refinancing hit an all-time high in 2003, and remained high in both 2004 and 2005, according to the Mortgage Bankers Association of America.
But while it's true that refinancing has the potential to help you reduce the costs associated with borrowing money to own a home, it is not necessarily a strategy that makes sense for every individual in every situation. So before you make a commitment to refinance your mortgage, it's important to do your homework and determine whether such a move is the right one for you.
To Refinance or Not
The old and arbitrary rule of thumb said that a refi only makes sense if you can lower your interest rate by at least two percentage points for example, from 9 percent to 7 percent. But what really matters is how long it will take you to break even and whether you plan to stay in your home that long. In other words, make sure you understand - and are comfortable with - the amount of time it will take for your overall savings to compensate for the cost of the refinancing.
Consider this: If you had a $200,000 30-year mortgage with an 8 percent interest rate, your monthly payment would be $1,468. If you refinanced at 6 percent, your new monthly payment would be $1,199, a savings of $269 per month. Assuming that your new closing costs amounted to $2,000, it would take eight months to break even. ($269 x 8 = $2,152). If you planned to stay in your home for at least eight more months, then a refi would be appropriate under these conditions. If you planned to sell the house before then, you might not want to bother refinancing. (See below for additional examples.)
Remember: All Mortgages Are Not Created Equal
Don't make the mistake of choosing a mortgage based only on its stated annual percentage rate (APR), because there are a variety of other important variables to consider, such as:
The term of the mortgage - This describes the amount of time it will take you to pay off the loan's principal and interest. Although short-term mortgages typically offer lower interest rates than long-term mortgages, they usually involve higher monthly payments. On the other hand, they can result in significantly reduced interest costs over time.
The variability of the interest rate - There are two basic types of mortgages: those with "fixed" (i.e., unchanging) interest rates and those with variable rates, which can change after a predetermined amount of time has passed, such as one year or five years. While an adjustable-rate mortgage (ARM) usually offers a lower introductory rate than a fixed-rate mortgage with a comparable term, the ARM's rate could jump in the future if interest rates rise. If you plan to stay in your home for a long time, it may make sense to opt for the predictability and security of a fixed rate, whereas an ARM might make sense if you plan to sell before its rate is allowed to go up. Also keep in mind that interest rates hovered near historical lows in recent years and are more likely to increase than decrease over time.
Points - Points (also known as "origination fees" or "discount fees") are fees that you pay to a lender or broker when you close the deal. While a "no-cost" or "zero points" mortgage does not carry this up-front cost, it could prove to be more expensive if the lender charges a higher interest rate instead. So you'll need to determine whether the savings from a lower rate justify the added costs of paying points. (One point is equal to one percent of the loan's value.)
How Much Would You Save?
A homeowner with a 30-year, $200,000 mortgage charging 8% interest would pay $1,468 each month.
A Closer Look at Mortgage Fees
Using data collected during 2003, researchers at Bankrate.com determined the average fees charged to consumers who borrow money to buy a home. Based on a loan of $180,000, the fees broke down as follows:
Average Lender/Broker Fees
Administration fee: $336
Application fee: $205
Commitment fee: $498
Document preparation: $194
Funding fee: $228
Mortgage broker fee: $839
Processing: $320
Tax service: $73
Underwriting: $269
Wire transfer: $31
Third-Party Fees
Appraisal: $327
Attorney or settlement fees: $445
Credit report: $29
Flood certification: $17
Pest & other inspection: $68
Postage/courier: $45
Survey: $174
Title insurance: $605
Title work: $200
Government Fees
Recording fee: $76
Various taxes: $1,339
Stick With What You Know
Finally, keep in mind that your current lender may make it easier and cheaper to refinance than another lender would. That's because your current lender is likely to have all of your important financial information on hand already, which reduces the time and resources necessary to process your application. But don't let that be your only consideration. To make a well-informed, confident decision you'll need to shop around, crunch the numbers, and ask plenty of questions.
Summary:
•The decision to refinance should only be made if the long-term savings outweigh the initial expenses. To calculate your break-even point, divide the cost of the refi by your monthly savings. The resulting figure represents the number of months you will need to stay in the home to make the strategy work.
•Don't select a new mortgage based only on its annual percentage rate.
•Also evaluate the term of the loan, whether the interest rate is fixed or variable, and the relative merits of paying up-front fees in exchange for a lower rate.
•Your current lender already knows you and has your financial information on file, so you may be able to get a better deal that way, instead of going to a new lender.
•To get the best possible refinancing deal, you'll need to shop around, crunch some numbers, and ask a lot of questions.
Checklist:
•Shop around and conduct a detailed cost assessment (with a financial professional, if necessary) to identify which mortgage offers the greatest financial benefits.
•Read the entire contract before signing. Don't let anyone pressure you or rush you to make a hasty decision.
•If refinancing results in lower monthly payments, use those savings to pursue other important goals, such as preparing for retirement and college costs.
If you are stuck between making the decision to refinance or sell your home, give us a call at 972-772-7000 or email us at rockwall@kw.com.
Showing posts with label real estate agent. Show all posts
Showing posts with label real estate agent. Show all posts
Friday, February 4, 2011
Wednesday, December 15, 2010
Does Brand Matter?
Provided By YouTube
When buying or selling a home you need an agent who is educated in the real estate market and understands the business. Call the experts at 972-772-7000 or email us at rockwall@kw.com.
When buying or selling a home you need an agent who is educated in the real estate market and understands the business. Call the experts at 972-772-7000 or email us at rockwall@kw.com.
Friday, November 5, 2010
How are real estate agents paid, and what is a Realtor?
Provided By The Cap Times
Real estate agents work for a real estate broker, with all commissions from a sale passing through the broker.
The most common type of listing agreement between a seller and real estate agent gives the agent’s broker the right to exclusively market the home. In return for finding a buyer, the seller agrees to pay a commission to the broker.
Typically, this commission comes right off the top as a percentage of the sales price — historically 7 percent but always negotiable — and is shared between the listing broker and the broker who locates a buyer.
New agents might receive as little as 30 percent to 40 percent of the total commission received by the brokerage. From that amount, other fees may be deducted such as advertising, sign rentals or office expenses.
Top producing agents might receive 100 percent of the commission and pay the broker a desk fee. Everybody else falls somewhere in between.
When more than one broker is involved, the commission is split between the buyer and seller sides. It’s not always 50-50 and can vary based on the type of listing agreement signed by the seller.
In a buyer’s market, sellers might consider asking their broker to give a larger percentage to the buyer’s broker. In a seller’s market, the buyer’s broker might receive less since there are so many people looking for homes. But there is no set formula.
Sometimes a buyer will sign an agreement with a broker to find them a house. In those cases, the fee paid to the broker is most commonly paid by the seller.
A “Realtor” refers to a member of the National Association of Realtors, a trade group.
When agents become Realtors they must agree to conduct their business in a way that adheres to the NAR’s Code of Ethics. The code covers ethical requirements that deal with all aspects of the profession, from working with consumers and fellow agents to writing truthful advertising.
Local groups of agents who have banded together in order to share listings more effectively are called Multiple Listing Services or “MLS.” Most of those groups are affiliated with their state and national Realtor associations and typically require all MLS agents to become members of both of those groups.
Agents pay dues to their state and local Realtor organizations. They also pay fees to become and maintain members of their local MLS.
Need answers to realtor related questions? Go straight to the source and call us at 972-772-7000 or email us at rockwall@kw.com.
Real estate agents work for a real estate broker, with all commissions from a sale passing through the broker.
The most common type of listing agreement between a seller and real estate agent gives the agent’s broker the right to exclusively market the home. In return for finding a buyer, the seller agrees to pay a commission to the broker.
Typically, this commission comes right off the top as a percentage of the sales price — historically 7 percent but always negotiable — and is shared between the listing broker and the broker who locates a buyer.
New agents might receive as little as 30 percent to 40 percent of the total commission received by the brokerage. From that amount, other fees may be deducted such as advertising, sign rentals or office expenses.
Top producing agents might receive 100 percent of the commission and pay the broker a desk fee. Everybody else falls somewhere in between.
When more than one broker is involved, the commission is split between the buyer and seller sides. It’s not always 50-50 and can vary based on the type of listing agreement signed by the seller.
In a buyer’s market, sellers might consider asking their broker to give a larger percentage to the buyer’s broker. In a seller’s market, the buyer’s broker might receive less since there are so many people looking for homes. But there is no set formula.
Sometimes a buyer will sign an agreement with a broker to find them a house. In those cases, the fee paid to the broker is most commonly paid by the seller.
A “Realtor” refers to a member of the National Association of Realtors, a trade group.
When agents become Realtors they must agree to conduct their business in a way that adheres to the NAR’s Code of Ethics. The code covers ethical requirements that deal with all aspects of the profession, from working with consumers and fellow agents to writing truthful advertising.
Local groups of agents who have banded together in order to share listings more effectively are called Multiple Listing Services or “MLS.” Most of those groups are affiliated with their state and national Realtor associations and typically require all MLS agents to become members of both of those groups.
Agents pay dues to their state and local Realtor organizations. They also pay fees to become and maintain members of their local MLS.
Need answers to realtor related questions? Go straight to the source and call us at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, August 11, 2010
Avoid Common First-Time Buyer Mistakes
Written By Carla Hill
Provided By Realty Times
If you are in the market to buy your first home, you may have already realized that the process involves many different levels of knowledge and understanding. Chances are many steps of the process are completely foreign to you.
By arming yourself with an arsenal of important questions, as well as with a team of professionals, you are sure to avoid some of the most common first-time homebuyer mistakes.
1. Hire the Right Agent. Personalities and experience levels range greatly, just as with any profession. Consider interviewing several local agents before deciding on which one to hire. Do you want a new agent who is sweet, patient, and ready to answer lots of questions? Or would you prefer a seasoned agent who gets you the best deal, but has less than stellar people skills? The choice is entirely yours, neither one being better than the other, but will make a big difference on how you feel about the process.
2. Interrogate the Lender. There's no need to play good cop, bad cop. This simply means you need to ask every question that comes to mind. In the wake of the predatory lending storm, its important to be sure you understand exactly what your mortgage will entail. Be sure to compare rates with other lenders to be sure you are getting the best rate. You can also ask for par pricing, which is the rate without points.
3. Be Ready To Act. In many markets, highly desirable areas come with a large amount of competition. Many buyers may be looking at the same homes as you. If you hesitate, you may very well lose out on your dream home. The best advice? Don't begin the process of viewing homes unless you are really ready to buy.
4. Think Long Term. You love the house, and you can deal with the small bedrooms and laundry room in the garage, but will the next set of buyers? If you are planning on selling the home in the next few years, you must remember to consider the resale value of a home. Is this neighborhood appreciating quickly, or are homes losing value?
5. Be Competitive. We all want to buy a home for the best bargain price possible, but a careful consideration is respecting the seller. You may view a low ball offer as a starting point, but a seller may view it as an insult and refuse to answer your offer. If you really want a home, be reasonable with your starting bid.
Buying your first home can be tough, make it a stress free and easy transition with the help of a Keller Williams agent! Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Provided By Realty Times
If you are in the market to buy your first home, you may have already realized that the process involves many different levels of knowledge and understanding. Chances are many steps of the process are completely foreign to you.
By arming yourself with an arsenal of important questions, as well as with a team of professionals, you are sure to avoid some of the most common first-time homebuyer mistakes.
1. Hire the Right Agent. Personalities and experience levels range greatly, just as with any profession. Consider interviewing several local agents before deciding on which one to hire. Do you want a new agent who is sweet, patient, and ready to answer lots of questions? Or would you prefer a seasoned agent who gets you the best deal, but has less than stellar people skills? The choice is entirely yours, neither one being better than the other, but will make a big difference on how you feel about the process.
2. Interrogate the Lender. There's no need to play good cop, bad cop. This simply means you need to ask every question that comes to mind. In the wake of the predatory lending storm, its important to be sure you understand exactly what your mortgage will entail. Be sure to compare rates with other lenders to be sure you are getting the best rate. You can also ask for par pricing, which is the rate without points.
3. Be Ready To Act. In many markets, highly desirable areas come with a large amount of competition. Many buyers may be looking at the same homes as you. If you hesitate, you may very well lose out on your dream home. The best advice? Don't begin the process of viewing homes unless you are really ready to buy.
4. Think Long Term. You love the house, and you can deal with the small bedrooms and laundry room in the garage, but will the next set of buyers? If you are planning on selling the home in the next few years, you must remember to consider the resale value of a home. Is this neighborhood appreciating quickly, or are homes losing value?
5. Be Competitive. We all want to buy a home for the best bargain price possible, but a careful consideration is respecting the seller. You may view a low ball offer as a starting point, but a seller may view it as an insult and refuse to answer your offer. If you really want a home, be reasonable with your starting bid.
Buying your first home can be tough, make it a stress free and easy transition with the help of a Keller Williams agent! Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, July 21, 2010
Avoid These Huge House Seller Mistakes
Written By Darline Bazile
Provided By Real Estate Articles
You would like to get the best price for your house, plus sell it in the least amount of time. In a buyers’ market like the one emerging now, houses will take longer to sell. For that reason, it’s important that you make the right moves in the very beginning of your homeselling process to remain competitive. Here are some top house seller mistakes and traps that home owners fall into and how to avoid them.
* Over-pricing – It’s easy to believe your house is worth a lot more than the current market may support, especially after the long run-up in home prices. Given that house costs have cooled down in markets around the country, house sellers should be willing to negotiate on price and terms, and stay flexible to other stipulations benefiting the buyer. Sellers should also keep their feelings under control during the process. After all, your house is special to you and the family, and you’re pleased with the improvements you’ve made over the years. However, how does your house really stand up to the others? And are those upgrades important to a potential buyer? To find out a fair listing price, get sales statistics on homes in the neighborhood including listing prices and actual sales prices, how long it took for the homes to sell, and government valuation comparisons. You’ll also need a market appraisal on your property. Visit properties for sale in your area and examine what you see in terms of sales appeal.
* Negligent Housekeeping – Buyers have to be able to imagine themselves living in the house. Have a good, objective look at the actual condition of your house. Clean, well-kept homes with an updated appearance always stand out, and a little decorating appeal can go a long way. You don’t have to purchase new furniture in order to produce charm, however , you can put toys and clutter away, freshen up paint and carpet, make the most of window coverings, and give a few key accessories in order to send out welcoming signals.
* Failing to Fix-It – Buyers, unless they are searching for a fixer-upper, would prefer to move into a house that’s in perfect or near-perfect condition. If they have to repair the roof, a broken tile floor, the garage door, worn carpet or just about anything, this could give them pause about buying. At the minimum, it may reduce the value of the home in the prospective buyer’s mind.
* Not Identifying Exclusions – This can be a cause of contention just at a critical point in the sale. Make sure to specify any special sales factors or exclusions from the fixtures and furnishings list. Generally, anything permanently fixed to the house is an asset that stays with the home after the sale. Therefore you intend to take your grandmother’s antique chandelier that’s hanging in the dining room, clearly specify the chandelier isn’t included in the sale price.
* Not Understanding the Agent Agreement – Your sales endeavor will certainly go easiest when all parties have a clear understanding of exactly what is expected. Understand the types of agency agreements when you sign with a real estate professional or company. Make sure to check on fees, commission percentages, marketing plans and timeframes. Just remember, get everything in writing.
Looking for help and the right answers in regards to selling your home? Give us a call at 972-772-7000 or email us rockwall@kw.com.
Provided By Real Estate Articles
You would like to get the best price for your house, plus sell it in the least amount of time. In a buyers’ market like the one emerging now, houses will take longer to sell. For that reason, it’s important that you make the right moves in the very beginning of your homeselling process to remain competitive. Here are some top house seller mistakes and traps that home owners fall into and how to avoid them.
* Over-pricing – It’s easy to believe your house is worth a lot more than the current market may support, especially after the long run-up in home prices. Given that house costs have cooled down in markets around the country, house sellers should be willing to negotiate on price and terms, and stay flexible to other stipulations benefiting the buyer. Sellers should also keep their feelings under control during the process. After all, your house is special to you and the family, and you’re pleased with the improvements you’ve made over the years. However, how does your house really stand up to the others? And are those upgrades important to a potential buyer? To find out a fair listing price, get sales statistics on homes in the neighborhood including listing prices and actual sales prices, how long it took for the homes to sell, and government valuation comparisons. You’ll also need a market appraisal on your property. Visit properties for sale in your area and examine what you see in terms of sales appeal.
* Negligent Housekeeping – Buyers have to be able to imagine themselves living in the house. Have a good, objective look at the actual condition of your house. Clean, well-kept homes with an updated appearance always stand out, and a little decorating appeal can go a long way. You don’t have to purchase new furniture in order to produce charm, however , you can put toys and clutter away, freshen up paint and carpet, make the most of window coverings, and give a few key accessories in order to send out welcoming signals.
* Failing to Fix-It – Buyers, unless they are searching for a fixer-upper, would prefer to move into a house that’s in perfect or near-perfect condition. If they have to repair the roof, a broken tile floor, the garage door, worn carpet or just about anything, this could give them pause about buying. At the minimum, it may reduce the value of the home in the prospective buyer’s mind.
* Not Identifying Exclusions – This can be a cause of contention just at a critical point in the sale. Make sure to specify any special sales factors or exclusions from the fixtures and furnishings list. Generally, anything permanently fixed to the house is an asset that stays with the home after the sale. Therefore you intend to take your grandmother’s antique chandelier that’s hanging in the dining room, clearly specify the chandelier isn’t included in the sale price.
* Not Understanding the Agent Agreement – Your sales endeavor will certainly go easiest when all parties have a clear understanding of exactly what is expected. Understand the types of agency agreements when you sign with a real estate professional or company. Make sure to check on fees, commission percentages, marketing plans and timeframes. Just remember, get everything in writing.
Looking for help and the right answers in regards to selling your home? Give us a call at 972-772-7000 or email us rockwall@kw.com.
Monday, June 28, 2010
Choosing the Best Home
Provided By Realty Times
Written By Carla Hill
After weeks of searching for your next home, you now have it narrowed down to two great options. One offers a shorter commute, but the other offers more square footage for your growing family. How can you make the best choice?
There are several strategies you can employ in your decision making process. Above all, be confident in your decision making abilities. "The fear of making serious decisions is a new kind of fear, called decidophobia," proclaimed by Walter Kaufmann at Princeton University in 1973. Worry and procrastination do nothing to aid the process, so buyers, be confident that you will make a sound choice.
Pro/Con list: In this case, you are deciding between two houses as your prospective home. For each house, divide a sheet of paper into two columns: pro and con. Be realistic about what the positive and negative factors would be for each purchase. Considerations could include: price, location, schools, repairs, square footage, floorplans, street noise, neighborhood value, comparables, and gut intuition.
Brainstorm scenarios: Chances are, whatever house you decided upon will be your residence for many years to come. Try and think ahead to situations that may arise in the future, and how each residence would affect those situations. Do you have aging parents that could move in? If so, then which house provides the best floorplan for this? Planning on having children? Check out ratings on local schools.
Do the math: Business executives might call this the "cost/benefit analysis." Buying a home is a huge financial decision, and while personal preferences (e.g. location, schools, square footage) all come into play in homebuying, many purchases are based on what makes the best financial sense. Discuss numbers and neighborhood comparables with your real estate agent. One home may be a smaller dollar amount, but the other may be a better deal in the long run. Some neighborhoods are up and coming, while others have come and gone. Are either homes overpriced or underpriced for their neighborhoods? Do either homes need repairs or updates?
Priorities list: Yes, you know you want the pool, landscaping, granite counters, close proximity to work, extra bath, and the list goes on. But when push comes to shove, and it might, what items are your priority, really? For some, driving a longer commute is worth having a larger house or a cheaper price. For other buyers, the exact opposite can be true.
Change perspectives: Sometimes you simply must step out of your own shoes to see a situation clearly. There are many different ways to approach this decision. You can look at it from an emotional point of view (which home do you love), an intuitive view (what does your gut tell you), and even a devil's advocate view (what if). Experts consider this the "Six Thinking Hats," introduced by Edward de Bono in a book of the same title, where you put on six different hats during a decision making process. Try and see the buying process from the perspective of your spouse, your children, friends, and even your worst enemy.
Finally, be realistic in your own abilities. While the final decision rests on your capable shoulders, you should rely on the professionals that are by your side. This includes your agent, lender, attorney, and even your family. And while you are the final say, remember that you have a team to help give you information to fuel that sound decision.
Are you looking for the best home for you and your family? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Written By Carla Hill
After weeks of searching for your next home, you now have it narrowed down to two great options. One offers a shorter commute, but the other offers more square footage for your growing family. How can you make the best choice?
There are several strategies you can employ in your decision making process. Above all, be confident in your decision making abilities. "The fear of making serious decisions is a new kind of fear, called decidophobia," proclaimed by Walter Kaufmann at Princeton University in 1973. Worry and procrastination do nothing to aid the process, so buyers, be confident that you will make a sound choice.
Pro/Con list: In this case, you are deciding between two houses as your prospective home. For each house, divide a sheet of paper into two columns: pro and con. Be realistic about what the positive and negative factors would be for each purchase. Considerations could include: price, location, schools, repairs, square footage, floorplans, street noise, neighborhood value, comparables, and gut intuition.
Brainstorm scenarios: Chances are, whatever house you decided upon will be your residence for many years to come. Try and think ahead to situations that may arise in the future, and how each residence would affect those situations. Do you have aging parents that could move in? If so, then which house provides the best floorplan for this? Planning on having children? Check out ratings on local schools.
Do the math: Business executives might call this the "cost/benefit analysis." Buying a home is a huge financial decision, and while personal preferences (e.g. location, schools, square footage) all come into play in homebuying, many purchases are based on what makes the best financial sense. Discuss numbers and neighborhood comparables with your real estate agent. One home may be a smaller dollar amount, but the other may be a better deal in the long run. Some neighborhoods are up and coming, while others have come and gone. Are either homes overpriced or underpriced for their neighborhoods? Do either homes need repairs or updates?
Priorities list: Yes, you know you want the pool, landscaping, granite counters, close proximity to work, extra bath, and the list goes on. But when push comes to shove, and it might, what items are your priority, really? For some, driving a longer commute is worth having a larger house or a cheaper price. For other buyers, the exact opposite can be true.
Change perspectives: Sometimes you simply must step out of your own shoes to see a situation clearly. There are many different ways to approach this decision. You can look at it from an emotional point of view (which home do you love), an intuitive view (what does your gut tell you), and even a devil's advocate view (what if). Experts consider this the "Six Thinking Hats," introduced by Edward de Bono in a book of the same title, where you put on six different hats during a decision making process. Try and see the buying process from the perspective of your spouse, your children, friends, and even your worst enemy.
Finally, be realistic in your own abilities. While the final decision rests on your capable shoulders, you should rely on the professionals that are by your side. This includes your agent, lender, attorney, and even your family. And while you are the final say, remember that you have a team to help give you information to fuel that sound decision.
Are you looking for the best home for you and your family? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Monday, June 14, 2010
Five Ways to Wow Buyers
Written By Phoebe Chongchua
Published By Realty Times
These days, tax credits and high housing inventory make it a buyers’ market. If you’re a seller, don’t despair. There are a variety of renovations that can help make your home stand out. Many buyers look at numerous homes when shopping for a house; so enhancing your home to make it more memorable is vital and increases the chances of a successful sale.
Clearing clutter, taking down personal photos, applying a fresh coat of paint, making minor repairs, and keeping a pleasant aroma are all basic techniques to make your home more appealing. But there are a few other creative enhancements that you can do to wow buyers without emptying your wallet. The results not only attract more attention, but also paint a picture of a well-cared-for home.
While not everyone has the same taste in housing, typically buyers are attracted to larger kitchens, extra storage space, light and bright rooms, and open floor plans. Special finishing touches on a home can be the needed incentive to generate an offer.
Kathy Gerstenberg has owned her home for nearly 20 years. Over the decades she’s made many improvements but now she’s considering selling and wants to make sure she gets top dollar in a down market. So, she’s examining her home the way a buyer would.
“We live in a tract home and I know there are many homes for sale; we don’t want ours to be seen as the same ‘cookie-cutter’ model as the others,” says Gerstenberg.
With that in mind, Gerstenberg has carefully made enhancements that make her home more comfortable and aesthetically pleasing. “I wanted to do improvements that would catch a buyer’s eye and also make it enjoyable for our family,” says Gerstenberg.
As she scouts the market for her next home there are various aspects of a potential home that she notices right away. “I love crown molding and finished doors and windows,” says Gerstenberg. She adds, “So many times builders just don’t complete the look of a home but when you frame a door or window and add some crown molding to a room it gives it a finished look.”
Industry experts agree; Americans are expected to spend $217 billion on remodeling in 2009. Here are five areas where homeowners may spend some of their remodeling money to add the “wow” factor to your home.
1. Go green. Energy efficient products and household goods are attractive to buyers. Renovations or replacements that help make the house more energy efficient are popular. Things such as better insulation, replacing old windows, caulking, and adding skylights can increase value.
2. Crown molding and wider baseboards. Some homeowners are shy to experiment with this, especially if they live in a small home, but it can be very attractive in any size home. Wider baseboard. The measly baseboard that builders often use in tract homes doesn’t draw attention. Adding a wider baseboard and a fresh coat of paint makes the room come to life. Also, framing windows and doors helps complete the look of a room.
3. Textured paint. Faux finishes, accented walls, or even just a little fresh paint on them makes a lasting impression. Choose colors and textures wisely. Don’t get carried away with a color you love (e.g. purple walls—I’ve seen it in a home for sale). Remember, that you want your home to appeal to the masses. You can always paint your new home purple—and then change it when it comes time to sell it!
4. Improved flooring. Wood, tile, and new carpet can be a showstopper. But if the flooring is chipped, torn, or dirty, you’ll get the opposite reaction from buyers. They’ll think your home hasn’t been cared for properly which could result in a lower offer -- or no sale at all.
5. Add a deck. Adding a deck can add value to your home. It’s a nice feature in a yard and many buyers are happy to purchase a home that already has a deck so that they don’t have to take on that home improvement project.
Are you looking for advice on selling your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Published By Realty Times
These days, tax credits and high housing inventory make it a buyers’ market. If you’re a seller, don’t despair. There are a variety of renovations that can help make your home stand out. Many buyers look at numerous homes when shopping for a house; so enhancing your home to make it more memorable is vital and increases the chances of a successful sale.
Clearing clutter, taking down personal photos, applying a fresh coat of paint, making minor repairs, and keeping a pleasant aroma are all basic techniques to make your home more appealing. But there are a few other creative enhancements that you can do to wow buyers without emptying your wallet. The results not only attract more attention, but also paint a picture of a well-cared-for home.
While not everyone has the same taste in housing, typically buyers are attracted to larger kitchens, extra storage space, light and bright rooms, and open floor plans. Special finishing touches on a home can be the needed incentive to generate an offer.
Kathy Gerstenberg has owned her home for nearly 20 years. Over the decades she’s made many improvements but now she’s considering selling and wants to make sure she gets top dollar in a down market. So, she’s examining her home the way a buyer would.
“We live in a tract home and I know there are many homes for sale; we don’t want ours to be seen as the same ‘cookie-cutter’ model as the others,” says Gerstenberg.
With that in mind, Gerstenberg has carefully made enhancements that make her home more comfortable and aesthetically pleasing. “I wanted to do improvements that would catch a buyer’s eye and also make it enjoyable for our family,” says Gerstenberg.
As she scouts the market for her next home there are various aspects of a potential home that she notices right away. “I love crown molding and finished doors and windows,” says Gerstenberg. She adds, “So many times builders just don’t complete the look of a home but when you frame a door or window and add some crown molding to a room it gives it a finished look.”
Industry experts agree; Americans are expected to spend $217 billion on remodeling in 2009. Here are five areas where homeowners may spend some of their remodeling money to add the “wow” factor to your home.
1. Go green. Energy efficient products and household goods are attractive to buyers. Renovations or replacements that help make the house more energy efficient are popular. Things such as better insulation, replacing old windows, caulking, and adding skylights can increase value.
2. Crown molding and wider baseboards. Some homeowners are shy to experiment with this, especially if they live in a small home, but it can be very attractive in any size home. Wider baseboard. The measly baseboard that builders often use in tract homes doesn’t draw attention. Adding a wider baseboard and a fresh coat of paint makes the room come to life. Also, framing windows and doors helps complete the look of a room.
3. Textured paint. Faux finishes, accented walls, or even just a little fresh paint on them makes a lasting impression. Choose colors and textures wisely. Don’t get carried away with a color you love (e.g. purple walls—I’ve seen it in a home for sale). Remember, that you want your home to appeal to the masses. You can always paint your new home purple—and then change it when it comes time to sell it!
4. Improved flooring. Wood, tile, and new carpet can be a showstopper. But if the flooring is chipped, torn, or dirty, you’ll get the opposite reaction from buyers. They’ll think your home hasn’t been cared for properly which could result in a lower offer -- or no sale at all.
5. Add a deck. Adding a deck can add value to your home. It’s a nice feature in a yard and many buyers are happy to purchase a home that already has a deck so that they don’t have to take on that home improvement project.
Are you looking for advice on selling your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Monday, May 31, 2010
Choosing Your Agent
Provided By Realty Times
It is recommended that you have a real estate agent help you with your transactions. But how do you know which agent to select? The choice can be difficult, but here are some questions to ask during potential agent interviews.
1. Do you have references from past clients? Ask their past clients if they were pleased with the service the agent provided them. Did they communicate in a timely manner, and were they kind and courteous?
2. What does being an agent mean to you? By asking this question you'll be able to see what their work ethic and business philosophy are. You want an agent that puts their priority on your happiness first, and their commission check second.
3. How long have you been in real estate? This is not to say that someone new to the business would not be a great asset. However, depending on the nature of your transaction, you may feel more comfortable with an agent with a proven record of sucess.
4. How many homes did you sell last year? Just because an agent has been in the business for a while doesn't mean they've been successful. You don't want to have your home on the market for months, when a savvy agent could have it sold in weeks.
5. What designations and certifications do you hold? Beyond holding a real estate license, agents can opt to expand their education and skills. There are a multitude of courses and programs available. In general, these certifications mean a more specialized agent.
6. What is your marketing plan? In an ideal world a house would just sell itself, right? But the market swings back and forth on a constant pendullum between being in favor of sellers and then buyers. If you are selling a house in a buyers market, then you need a solid marketing plan to make your home stand apart. Open houses, email campaigns, webcasts, and brochures are just a few of the items your agent may use.
7. Do you do dual agency? Dual agency is when the agent represents both the buyer and the seller. This is legal, as long as disclosed, but it may not be something you're interested in signing up for. Be sure to ask.
8. What are your home sales stats? It is important to ask them how long it takes them on average to sell a home. And then ask what the area average is. They should know this information off the top of their head, or at least have the statistics readily available.
9. How do you communicate with your clients? There is nothing worse than not being able to get ahold of your agent, with questions, for updates, and for feedback. In today's modern world of technology, there is no excuse for them not to stay in constant contact. There is email, texting, cell phones, and a myriad of other options. Ask what they use to stay in touch with their clients.
10. Do you have other connections? Meaning, will they be able to refer you to contractors, mortgage lenders, banks, landscapers, pool maintenance crews, and the like. This will be especially important if you are new to the area.
Finding an agent who is suited best for what you're looking for is easy! Give us a call at 972-772-7000 or email us at rockwall@kw.com.
It is recommended that you have a real estate agent help you with your transactions. But how do you know which agent to select? The choice can be difficult, but here are some questions to ask during potential agent interviews.
1. Do you have references from past clients? Ask their past clients if they were pleased with the service the agent provided them. Did they communicate in a timely manner, and were they kind and courteous?
2. What does being an agent mean to you? By asking this question you'll be able to see what their work ethic and business philosophy are. You want an agent that puts their priority on your happiness first, and their commission check second.
3. How long have you been in real estate? This is not to say that someone new to the business would not be a great asset. However, depending on the nature of your transaction, you may feel more comfortable with an agent with a proven record of sucess.
4. How many homes did you sell last year? Just because an agent has been in the business for a while doesn't mean they've been successful. You don't want to have your home on the market for months, when a savvy agent could have it sold in weeks.
5. What designations and certifications do you hold? Beyond holding a real estate license, agents can opt to expand their education and skills. There are a multitude of courses and programs available. In general, these certifications mean a more specialized agent.
6. What is your marketing plan? In an ideal world a house would just sell itself, right? But the market swings back and forth on a constant pendullum between being in favor of sellers and then buyers. If you are selling a house in a buyers market, then you need a solid marketing plan to make your home stand apart. Open houses, email campaigns, webcasts, and brochures are just a few of the items your agent may use.
7. Do you do dual agency? Dual agency is when the agent represents both the buyer and the seller. This is legal, as long as disclosed, but it may not be something you're interested in signing up for. Be sure to ask.
8. What are your home sales stats? It is important to ask them how long it takes them on average to sell a home. And then ask what the area average is. They should know this information off the top of their head, or at least have the statistics readily available.
9. How do you communicate with your clients? There is nothing worse than not being able to get ahold of your agent, with questions, for updates, and for feedback. In today's modern world of technology, there is no excuse for them not to stay in constant contact. There is email, texting, cell phones, and a myriad of other options. Ask what they use to stay in touch with their clients.
10. Do you have other connections? Meaning, will they be able to refer you to contractors, mortgage lenders, banks, landscapers, pool maintenance crews, and the like. This will be especially important if you are new to the area.
Finding an agent who is suited best for what you're looking for is easy! Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Friday, March 19, 2010
Which Backyard Features Add Value?
Provided By Yahoo Finance
Source Kiplinger.com
Is it worth it to spend as much money renovating a backyard as it costs to buy a small house? Depends on whom you ask. But if you're going to fork over the big bucks to revamp your yard -- or even if you're on a tight budget -- you should consider putting your dollars into features that add the most value to your property. Here's some advice from the pros:
Which features add value?
Jason Cupp, co-founder of design/build, landscape company Highland Outdoor, Olathe, Kan., says his clients frequently ask whether renovating their yards will add value to their property. If two similar neighboring houses were for sale and one had a great landscape design, that house would sell faster, he says.
However, he and other landscape designers agree that you probably won't get a return on your investment if your property is the only one in the neighborhood with the outdoor fireplace and kitchen, waterfall, custom-made pool and spa. That's why you should weigh your needs versus your desires when it comes to renovating your yard and deciding which features to add -- especially if you're on a tight budget. Even a little bit of money can go a long way if you prioritize and opt for features that are functional rather than purely aesthetic, says Brett Wendell, director of design build for HighGrove Partners in Austell, Ga.
Quality landscape design and installation will add value to your property and help it sell faster, landscape pros agree. If you're on a tight budget, hire a landscape architect or designer to create a design then install the landscaping yourself -- over time, if you have to. "Some advice is better than none," says Jeff Carbo, an award-winning landscape architect in Alexandria, La. A landscape architect charges $85 to $135, on average, to create a design plan, Wendell says, and could spend 12 to 18 hours creating that plan. A landscape designer typically charges $50 to $75 an hour. To find a designer or architect, talk with friends or family who have used one or check the American Society of Landscape Architect's FirmFinder and Association of Professional Landscape Designers' database of firms. Wendell recommends interviewing several pros, talking to their customers and checking out their projects. The designer or architect should ask you lifestyle questions (Do you like to garden? Will you maintain the landscaping or will someone else?) so he or she can give you what you need.
Also, if you make a significant investment in landscape, Cupp says, "it won't look as good if you don't have a proper irrigation system, and your investment will erode." Again, if you're on a budget, install the irrigation system before the landscaping, Cupp says. Expect to pay at least $3,000 to $4,000 for irrigation.
Outdoor living rooms, in particular, have been a growing trend over the last ten years, especially since the Sept. 11, 2001, terrorist attacks, Carbo says. In fact, designing and furnishing an outdoor room is the second most popular home remodeling project after remodeling kitchens, according to the Propane Education & Research Council. Homeowners spent $3.7 billion on patios and terraces in 2004 -- a 366% increase since 1994, according to the Census Bureau. The number of people who are complementing their patio with furniture and larger grills is growing (42% in 2005 versus 32% in 2003), according to a study by Hearth, Patio & Barbecue Association.
Outdoor living rooms often include a fireplace or firepit, cooking station and comfortable furniture. "We're finding that we have more and more clients spending money creating rooms outdoors," Cupp says. But this is an important area to decide whether you're spending money on something that's functional and will add value to your property versus something that is purely a luxury item.
Covered patio -- adds value. "There's no reason to have a great outdoors without an area to sit and enjoy it," Cupp says. For a patio to add value, though, it's got to be more than a concrete slab. He says 95% of the patios he installs are paver patios (brick-like material made of concrete that comes in a variety of styles and colors). The price of materials and installation runs from $12 to $15 a square foot up to $40 to $50 a square foot. And Carbo says patios should be covered to provide shade or protection from rain. Otherwise, you'd be wasting your money if you created a space without a cover to protect you from the elements.
Fireplaces -- luxury item only. The outdoor fireplace -- as well as the firepit -- is a relatively new trend and is growing in popularity, says Carol Kaplan of the Hearth, Patio and Barbecue Association. Portable firepits are a cheap way to create a cozy outdoor setting. The actual built-in fireplace, though, can cost $8,000 to $35,000, is beautiful to look at but isn't that functional, Wendell says. Because of the maintenance involved, outdoor fireplaces usually are used just during parties or when guests visit. So you probably won't get a return on your investment with this pricey feature, he says.
Kitchens -- add value. For anywhere from $15,000 to $100,000, you can have a refrigerator, grill and sink installed to cook and dine al fresco. "Why not have it all outside where cooking is part of the process of entertaining," Wendell says. He recommends getting a professional invovled to properly locate your outdoor kitchen so you can get the most out of it.
Television -- luxury item only. The cool factor is high here, but functionality is low because it's usually too bright during the day to watch outdoor TVs.
Swimming pools are one of those features that can be both functional and aesthetic and can add value -- or detract -- depending the type of pool and type of home buyer or owner. A 2004 National Association of Realtors study of home sales in the Philadelphia area from 1996 to 2003 found inground pools added 8% to sales price of home. However, all of the landscape designers we talked to said for a pool to add value to property, it has to be custom-made -- not a prefabricated pool that can be found in any backyard. A basic customized concrete pool can cost $60,000 to $80,000. Throw in a hot tub and water feature, such as a waterfall, and you could spend well into the six digits. The problem is, landscape designers say, some home buyers want nothing to do with a pool and will steer clear of houses with one -- regardless of whether it is custom-made or prefabricated. So a pool actually could lower the value of your property in some people's eyes.
Water features, such as a pond or waterfall, also are somewhat questionable as to whether they add value. Cupp says water features are popular and have a high level of value. Costs can range from $1,000 for a small pool of water to $25,000 or more for a pond with a waterfall. Wendell agrees water features are popular but are expensive to maintain. He says they usually aren't worth the money you have to put into them because 50% are abandoned or ignored after the first four years.
Need help selling your home? Call us at (972) 772-7000 or send us an email at rockwall@kw.com.
Source Kiplinger.com
Turn Your Backyard Into Paradise
Even if you're not trying to sell your home, you can increase its value by landscaping your lawn and creating a retreat that you, your family and friends can enjoy. Americans spend billions of dollars each year creating outdoor living spaces with comfortable furniture, built-in grills or complete kitchens, fireplaces, televisions, pools and spas.
Is it worth it to spend as much money renovating a backyard as it costs to buy a small house? Depends on whom you ask. But if you're going to fork over the big bucks to revamp your yard -- or even if you're on a tight budget -- you should consider putting your dollars into features that add the most value to your property. Here's some advice from the pros:
Which features add value?
Jason Cupp, co-founder of design/build, landscape company Highland Outdoor, Olathe, Kan., says his clients frequently ask whether renovating their yards will add value to their property. If two similar neighboring houses were for sale and one had a great landscape design, that house would sell faster, he says.
However, he and other landscape designers agree that you probably won't get a return on your investment if your property is the only one in the neighborhood with the outdoor fireplace and kitchen, waterfall, custom-made pool and spa. That's why you should weigh your needs versus your desires when it comes to renovating your yard and deciding which features to add -- especially if you're on a tight budget. Even a little bit of money can go a long way if you prioritize and opt for features that are functional rather than purely aesthetic, says Brett Wendell, director of design build for HighGrove Partners in Austell, Ga.
Quality landscape design and installation will add value to your property and help it sell faster, landscape pros agree. If you're on a tight budget, hire a landscape architect or designer to create a design then install the landscaping yourself -- over time, if you have to. "Some advice is better than none," says Jeff Carbo, an award-winning landscape architect in Alexandria, La. A landscape architect charges $85 to $135, on average, to create a design plan, Wendell says, and could spend 12 to 18 hours creating that plan. A landscape designer typically charges $50 to $75 an hour. To find a designer or architect, talk with friends or family who have used one or check the American Society of Landscape Architect's FirmFinder and Association of Professional Landscape Designers' database of firms. Wendell recommends interviewing several pros, talking to their customers and checking out their projects. The designer or architect should ask you lifestyle questions (Do you like to garden? Will you maintain the landscaping or will someone else?) so he or she can give you what you need.
Also, if you make a significant investment in landscape, Cupp says, "it won't look as good if you don't have a proper irrigation system, and your investment will erode." Again, if you're on a budget, install the irrigation system before the landscaping, Cupp says. Expect to pay at least $3,000 to $4,000 for irrigation.
Outdoor living rooms, in particular, have been a growing trend over the last ten years, especially since the Sept. 11, 2001, terrorist attacks, Carbo says. In fact, designing and furnishing an outdoor room is the second most popular home remodeling project after remodeling kitchens, according to the Propane Education & Research Council. Homeowners spent $3.7 billion on patios and terraces in 2004 -- a 366% increase since 1994, according to the Census Bureau. The number of people who are complementing their patio with furniture and larger grills is growing (42% in 2005 versus 32% in 2003), according to a study by Hearth, Patio & Barbecue Association.
Outdoor living rooms often include a fireplace or firepit, cooking station and comfortable furniture. "We're finding that we have more and more clients spending money creating rooms outdoors," Cupp says. But this is an important area to decide whether you're spending money on something that's functional and will add value to your property versus something that is purely a luxury item.
Covered patio -- adds value. "There's no reason to have a great outdoors without an area to sit and enjoy it," Cupp says. For a patio to add value, though, it's got to be more than a concrete slab. He says 95% of the patios he installs are paver patios (brick-like material made of concrete that comes in a variety of styles and colors). The price of materials and installation runs from $12 to $15 a square foot up to $40 to $50 a square foot. And Carbo says patios should be covered to provide shade or protection from rain. Otherwise, you'd be wasting your money if you created a space without a cover to protect you from the elements.
Fireplaces -- luxury item only. The outdoor fireplace -- as well as the firepit -- is a relatively new trend and is growing in popularity, says Carol Kaplan of the Hearth, Patio and Barbecue Association. Portable firepits are a cheap way to create a cozy outdoor setting. The actual built-in fireplace, though, can cost $8,000 to $35,000, is beautiful to look at but isn't that functional, Wendell says. Because of the maintenance involved, outdoor fireplaces usually are used just during parties or when guests visit. So you probably won't get a return on your investment with this pricey feature, he says.
Kitchens -- add value. For anywhere from $15,000 to $100,000, you can have a refrigerator, grill and sink installed to cook and dine al fresco. "Why not have it all outside where cooking is part of the process of entertaining," Wendell says. He recommends getting a professional invovled to properly locate your outdoor kitchen so you can get the most out of it.
Television -- luxury item only. The cool factor is high here, but functionality is low because it's usually too bright during the day to watch outdoor TVs.
Swimming pools are one of those features that can be both functional and aesthetic and can add value -- or detract -- depending the type of pool and type of home buyer or owner. A 2004 National Association of Realtors study of home sales in the Philadelphia area from 1996 to 2003 found inground pools added 8% to sales price of home. However, all of the landscape designers we talked to said for a pool to add value to property, it has to be custom-made -- not a prefabricated pool that can be found in any backyard. A basic customized concrete pool can cost $60,000 to $80,000. Throw in a hot tub and water feature, such as a waterfall, and you could spend well into the six digits. The problem is, landscape designers say, some home buyers want nothing to do with a pool and will steer clear of houses with one -- regardless of whether it is custom-made or prefabricated. So a pool actually could lower the value of your property in some people's eyes.
Water features, such as a pond or waterfall, also are somewhat questionable as to whether they add value. Cupp says water features are popular and have a high level of value. Costs can range from $1,000 for a small pool of water to $25,000 or more for a pond with a waterfall. Wendell agrees water features are popular but are expensive to maintain. He says they usually aren't worth the money you have to put into them because 50% are abandoned or ignored after the first four years.
Need help selling your home? Call us at (972) 772-7000 or send us an email at rockwall@kw.com.
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