Provided by Yahoo! Real Estate
Understand first of all that there IS a difference between price and value. Price is the amount you are asking for the property. Value is buyer perceived, and this perception of value is influenced by many factors such as location, features, condition, comparison to other purchase option, etc. By attending to details that can have a positive impact on the value, sellers can significantly increase their chance of attracting qualified buyers willing to pay the asking price.
Some tips to achieve a positive impact on value are:
Perceived size impacts value, even more so than actual square footage. Open floor plans make a room feel bigger than larger spaces with smaller rooms. Showing property that is furniture free, or at reduced clutter, helps to make the space feel bigger.
Vacancy increases sale-ability. Property is easier to show and easier to sell, and quicker to take possession of when it is vacant at the time it is offered for sale. Evidence of problems to take possession of the property -- such as encroachments, or tenants who wont allow buyer tours -- negatively impact value. Vacancy also helps the buyer walk through the property imagining ownership. Sellers should remove personal trinkets and family pictures as well as being conveniently absent during a buyer tour.
Cosmetics are important.
Fresh paint will always add more value than it costs.
Clean or new carpet/flooring adds more value than it costs.
Landscaping adds more value than it costs. At the very minimum, make the entrance area neat.
If you can, add some colorful flowers and new sod.
Take care of the obvious! The spot on the ceiling from the roof leak takes thousands of dollars from the perceived value and the offer price.
Condition affects value. Do a seller's home inspection to identify and fix the problem BEFORE closing. No point holding up your check a few extra days; plus a failed buyer's inspection could cost you the sale. Buyers will often bargain down your asking price to accomodate for property condition and repairs.
If you can, remodel/update the kitchen and master bathroom. These two areas have a big impact on home buying decisions.
Strategic renovations impact value and your bottom line. Don't spend more money to renovate the place than you can recapture in value on the sales price.
Friday, March 30, 2012
Wednesday, March 28, 2012
How Does Escrow Work?
Provided by Yahoo! Real Estate
If you've ever made an informal bet with a friend, you may have asked a third person to hold the money until the wager was resolved. When you take out a mortgage to buy a home, you're doing something similar by opening an escrow account.
How it works
When you put money in escrow it is held by a neutral third party (called an escrow agent) who works for both the lender and the borrower. The agent's role is to carry out the instructions agreed upon by both parties. The money is released when all the terms of the agreement are met. Escrow can be involved in anything from multimillion-dollar building projects to purchases made on online auction sites.
When it's used
When your mortgage closes, your lender will usually require you to open an escrow account to cover property taxes and homeowner's insurance. You'll make an initial deposit, followed by payments to the account every month. (Usually these are added to your regular mortgage payment.) The escrow agent will then release these funds as your taxes and insurance premiums come due.
Its purpose
The idea is to protect the lender by ensuring that you pay your taxes and insurance on time. If you default on your property tax, for example, your municipality can put a lien on the house, which would make it difficult to sell. Or if your house burns down and you've neglected to pay the insurance, the lender would be left with no collateral.
How you benefit
Escrow can benefit borrowers by helping them spread insurance and tax expenses evenly over 12 payments. For example, assume your yearly property taxes are two payments of $1,000 each, and your insurance is $400 annually. If you paid these directly, it would mean three large payments a year; your escrow costs, however, would be a manageable $200 a month.
Escrow payments
Your escrow account will have a built-in cushion -- if you miss a payment, the lender must still be able to pay your accounts on time. However, federal law prohibits lenders from requiring more than two months. expenses in escrow. And because your tax and insurance costs will change slightly from year to year, the lender will review and adjust your escrow payments annually.
When escrow may be waived
In most states, the money you place in an escrow account earns no interest for you. For that reason, many borrowers prefer to pay their taxes and insurance directly. Lenders may agree to this if your down payment is more than 20 percent, although some will raise your interest rate slightly to compensate. Once you agree to putting funds into an escrow account, however, it is difficult to cancel it, so make sure you fully understand the arrangement before your mortgage closes.
If you've ever made an informal bet with a friend, you may have asked a third person to hold the money until the wager was resolved. When you take out a mortgage to buy a home, you're doing something similar by opening an escrow account.
How it works
When you put money in escrow it is held by a neutral third party (called an escrow agent) who works for both the lender and the borrower. The agent's role is to carry out the instructions agreed upon by both parties. The money is released when all the terms of the agreement are met. Escrow can be involved in anything from multimillion-dollar building projects to purchases made on online auction sites.
When it's used
When your mortgage closes, your lender will usually require you to open an escrow account to cover property taxes and homeowner's insurance. You'll make an initial deposit, followed by payments to the account every month. (Usually these are added to your regular mortgage payment.) The escrow agent will then release these funds as your taxes and insurance premiums come due.
Its purpose
The idea is to protect the lender by ensuring that you pay your taxes and insurance on time. If you default on your property tax, for example, your municipality can put a lien on the house, which would make it difficult to sell. Or if your house burns down and you've neglected to pay the insurance, the lender would be left with no collateral.
How you benefit
Escrow can benefit borrowers by helping them spread insurance and tax expenses evenly over 12 payments. For example, assume your yearly property taxes are two payments of $1,000 each, and your insurance is $400 annually. If you paid these directly, it would mean three large payments a year; your escrow costs, however, would be a manageable $200 a month.
Escrow payments
Your escrow account will have a built-in cushion -- if you miss a payment, the lender must still be able to pay your accounts on time. However, federal law prohibits lenders from requiring more than two months. expenses in escrow. And because your tax and insurance costs will change slightly from year to year, the lender will review and adjust your escrow payments annually.
When escrow may be waived
In most states, the money you place in an escrow account earns no interest for you. For that reason, many borrowers prefer to pay their taxes and insurance directly. Lenders may agree to this if your down payment is more than 20 percent, although some will raise your interest rate slightly to compensate. Once you agree to putting funds into an escrow account, however, it is difficult to cancel it, so make sure you fully understand the arrangement before your mortgage closes.
Monday, March 26, 2012
First-Time Buyer Tips
Provided By Realty Times
Maybe you've been eyeing the real estate market and you think that you're finally ready to purchase your first home...if so, read on to be sure you're in the best position.
The rules have drastically changed in the real estate market. At one time, getting a mortgage seemed to require little more than just simply stating your income on paper. Today, the credit tightening continues. Banks want extra documentation that you can truly afford the home you want to buy.
But don't let that scare you. Your dream of becoming a homeowner is still a viable option. Here are a few tips to help you achieve your dream.
First take a good look at your credit. It's sad, but true, many people have no idea how their credit reports look. They can't remember if they've ever seen their report and they don't know their credit score.
Unfortunately, that puts buyers in a poor position. If there are errors on their credit reports, those must be handled before you try to purchase a home. Sometimes there are marks that truly shouldn't be on your credit. Other times there are knocks against your credit that you may be able to get removed.
Check your credit score at least three to six months before you apply for a mortgage. This will give you time to address any issues.
Start saving now. These days a downpayment for a home doesn't come easy. You may need as much as 20 percent down. However, there are still some loan programs that will allow you to put down much less.
Make sure you are working with an experienced team of real estate professionals. This kind of purchase requires lots of information, education, and knowledge. Having a team of industry professionals to guide you through the first-time home-buying experience will make the process so much easier.
When you're preparing to buy a home, if you haven't already, make a budget and start watching where every dollar goes. It's amazing how few people do this. It's even more amazing to see how much money is wasted. Those extra trips to the coffee shop, the donuts in the morning, the manicures, or shopping sprees, all are areas where you can likely cut back to save for your downpayment.
Picture your home. It might sound silly but you need to envision the home you want to buy. This will help you tremendously once you start your search. Start looking online, in magazines, and around your chosen neighborhoods.
You can even use online tools like Pintrest.com to pin images and videos you see on an online storage board to refer to later. This is a great tool for collecting photos of home decor.
The point here is to make sure you have an idea of what is important to you in a home. Since you've been renting, this might not be crystal clear at first. But as you make your list and explore homes with your agent, you'll begin to see which things are deal breakers and which things are a must-have.
Buying a home is like looking for the right relationship. It can be exciting at first, frustrating at times, and so comforting once you've finally found the right one. Happy house hunting!
Maybe you've been eyeing the real estate market and you think that you're finally ready to purchase your first home...if so, read on to be sure you're in the best position.
The rules have drastically changed in the real estate market. At one time, getting a mortgage seemed to require little more than just simply stating your income on paper. Today, the credit tightening continues. Banks want extra documentation that you can truly afford the home you want to buy.
But don't let that scare you. Your dream of becoming a homeowner is still a viable option. Here are a few tips to help you achieve your dream.
First take a good look at your credit. It's sad, but true, many people have no idea how their credit reports look. They can't remember if they've ever seen their report and they don't know their credit score.
Unfortunately, that puts buyers in a poor position. If there are errors on their credit reports, those must be handled before you try to purchase a home. Sometimes there are marks that truly shouldn't be on your credit. Other times there are knocks against your credit that you may be able to get removed.
Check your credit score at least three to six months before you apply for a mortgage. This will give you time to address any issues.
Start saving now. These days a downpayment for a home doesn't come easy. You may need as much as 20 percent down. However, there are still some loan programs that will allow you to put down much less.
Make sure you are working with an experienced team of real estate professionals. This kind of purchase requires lots of information, education, and knowledge. Having a team of industry professionals to guide you through the first-time home-buying experience will make the process so much easier.
When you're preparing to buy a home, if you haven't already, make a budget and start watching where every dollar goes. It's amazing how few people do this. It's even more amazing to see how much money is wasted. Those extra trips to the coffee shop, the donuts in the morning, the manicures, or shopping sprees, all are areas where you can likely cut back to save for your downpayment.
Picture your home. It might sound silly but you need to envision the home you want to buy. This will help you tremendously once you start your search. Start looking online, in magazines, and around your chosen neighborhoods.
You can even use online tools like Pintrest.com to pin images and videos you see on an online storage board to refer to later. This is a great tool for collecting photos of home decor.
The point here is to make sure you have an idea of what is important to you in a home. Since you've been renting, this might not be crystal clear at first. But as you make your list and explore homes with your agent, you'll begin to see which things are deal breakers and which things are a must-have.
Buying a home is like looking for the right relationship. It can be exciting at first, frustrating at times, and so comforting once you've finally found the right one. Happy house hunting!
Friday, March 23, 2012
Entryway Impressions
Provided By Realty Times
Homeowners who have decided to stay put as well as sellers looking for ways to impress should pay close attention to the look and feel of their entryways.
We all know the power first impressions has over our society. We make snap-judgements of books, homes, and people in the first few moments of meeting. This makes it even more important for homeowners to get entry-ways looking their best.
According to a recent national home valuation study conducted by Therma-Tru, even the simple update of installing a new entryway door can increase the perceived value of a home by more than $24,000 on average!
When it comes to entry doors, the sky is the limit these days. Manufacturers know the power of a showstopping door. This is why, according to Therma-Tru, "manufacturers offer a wide array of choices for entryways incorporating decorative glass doorlites, sidelites and transoms. These choices allow homeowners to create a custom look for the home while making a statement about the homeowner's personal sense of style."
More and more homeowners are choosing to stay in their homes to wait out the down market. Home prices have fallen across much of the nation. This has amped up remodeling across the nation.
Decorative glass entry doors are a great way to bring light into your entryway as well as add a spark of class to the exterior of your home.
Aside from updating your front door, a great tip for your entryway is to keep it organized. If you're not careful, your entryway can be come a dumping ground for keys, phones, paperwork, bags, coats, and other often used items. The key it to have a place for everything.
Invest in a suitable entry table that can house a docking port for phones as well as a hidden area for keys.
If your entryway has a coat closet be sure that it is cleared out to make room for daily use and for guest coats. Put in a shoe rack or bin for shoes, boots, and umbrellas. There shouldn't be anything cluttering up your space.
Add a few warm touches to this space by including an entry rug, which can also reduce slippage on tile floors. Place a warm lamp and some simple artwork on top of the entry table. Think about first impressions when you choose colors and styles. This space should make guests or prospective buyers feel warm and welcome!
If you're looking for a simple way to capitalize on your home's first impression, then consider adding a touch of class with some decorative glass as well as organizing your space.
Homeowners who have decided to stay put as well as sellers looking for ways to impress should pay close attention to the look and feel of their entryways.
We all know the power first impressions has over our society. We make snap-judgements of books, homes, and people in the first few moments of meeting. This makes it even more important for homeowners to get entry-ways looking their best.
According to a recent national home valuation study conducted by Therma-Tru, even the simple update of installing a new entryway door can increase the perceived value of a home by more than $24,000 on average!
When it comes to entry doors, the sky is the limit these days. Manufacturers know the power of a showstopping door. This is why, according to Therma-Tru, "manufacturers offer a wide array of choices for entryways incorporating decorative glass doorlites, sidelites and transoms. These choices allow homeowners to create a custom look for the home while making a statement about the homeowner's personal sense of style."
More and more homeowners are choosing to stay in their homes to wait out the down market. Home prices have fallen across much of the nation. This has amped up remodeling across the nation.
Decorative glass entry doors are a great way to bring light into your entryway as well as add a spark of class to the exterior of your home.
Aside from updating your front door, a great tip for your entryway is to keep it organized. If you're not careful, your entryway can be come a dumping ground for keys, phones, paperwork, bags, coats, and other often used items. The key it to have a place for everything.
Invest in a suitable entry table that can house a docking port for phones as well as a hidden area for keys.
If your entryway has a coat closet be sure that it is cleared out to make room for daily use and for guest coats. Put in a shoe rack or bin for shoes, boots, and umbrellas. There shouldn't be anything cluttering up your space.
Add a few warm touches to this space by including an entry rug, which can also reduce slippage on tile floors. Place a warm lamp and some simple artwork on top of the entry table. Think about first impressions when you choose colors and styles. This space should make guests or prospective buyers feel warm and welcome!
If you're looking for a simple way to capitalize on your home's first impression, then consider adding a touch of class with some decorative glass as well as organizing your space.
Wednesday, March 21, 2012
Swing into Spring: Five Easy Ways to Welcome Warm Weather
Provided By OrganizedHome.com
Blooming bulbs and Spring breezes signal that warmer weather is on the way.
Sure, many of us will do an all-out session of Spring cleaning, but even small, simple jobs can bring the season's freshness inside.
Shake the winter doldrums out of your organized home with these five easy ideas to swing into Spring:
Let the Light Shine: Wash the Windows!
Sunny days look brighter through clean windows, so tackle the grime that winter storms have left behind on interior and exterior windows now. Whether you're an advocate of the diluted-vinegar-and newspapers approach, or prefer to wield a squeegee like the pros do, choose a bright, still day to clean exterior windows.
Freed from their dark winter coats, clean windows spill sunshine inside, raising everyone's mood!
Catch the Breeze: Open Windows on a Warm Day
Cold weather brings shut windows and tightly-closed doors--which can create a build-up of stale odors in any home. When you live with them, your nose learns to ignore them, but nothing whispers "Spring is here!" like a freshly-aired house.
Solution: let breezes blow! Air out the house one sunny afternoon to bring Spring's freshness inside. Opening doors and windows to catch a breeze will chase away old cooking smells and any stale or musty odors that have built up during the winter months.
After an hour or so, close windows and doors, then tackle surfaces with an electrostatic cleaning cloth to capture any dust or pollen that's settled out in the breeze. Run the vacuum cleaner to remove dust from floors--and enjoy the Springtime freshness!
Blooming Wonder: Bring the Season Inside
Even if the budget won't stretch to regular purchases of cut flowers, Spring's blooming make it easy to spark up a home with fresh blossoms.
Cut small branches from a flowering tree, or gather ready-to-bloom daffodils and tulips from the garden.
Even an inexpensive bundle of cut flowers from the supermarket cooler can bring a welcome breath of Spring indoors.
Displayed simply, in a tall water glass, vase or mason jar, they'll add a splash of Spring color and fragrance to your home.
Fresh Start: Clean Out the Refrigerator
The arrival of a new season is a good signal to clean out stored food in refrigerator and pantry. As farmers' markets and roadside stands open to offer fresh food for the new season, create a good home by cleaning out the remains of winter.
Make a quick check of expiration dates of food stored in refrigerator or pantry, and toss expired foodstuffs.
Look sharp for the last survivors of holiday gift baskets! If you haven't eaten the smoked salmon spread or served the Texas Hot Chili Mix by now, donate these treats to the food bank, so they're enjoyed by others.
Give vegetable storage areas special attention. Bearded carrots, limp celery and shriveled onions can be tossed into a crockery slow-cooker overnight to make vegetable stock--or consign these items to the compost bin. Be ready to store Spring's bounty in a clean and roomy vegetable crisper!
Cull the Cuddly: Wind Down the Winter Warmers
Fall brings no greater pleasure than pulling out fleecy sweats, flannel pajamas and warm blankets--but by season's end, these cuddly favorites are frequently worse for wear.
As warm weather approaches, take a hard look at the family's cold-weather bedding and favorite winter warmers. Separate out the stained sweats, pilled flannel sheets and shrunken loungewear for recycling or donation.
As you return winter bedding and clothing to closet storage areas, make a quick list of any needed replacements. Look alert! End-of-season clearance sales make it easy AND cheap to replace worn-out linens and faded clothes.
Ready to swing into Spring? Welcome the season from your organized home!
Blooming bulbs and Spring breezes signal that warmer weather is on the way.
Sure, many of us will do an all-out session of Spring cleaning, but even small, simple jobs can bring the season's freshness inside.
Shake the winter doldrums out of your organized home with these five easy ideas to swing into Spring:
Let the Light Shine: Wash the Windows!
Sunny days look brighter through clean windows, so tackle the grime that winter storms have left behind on interior and exterior windows now. Whether you're an advocate of the diluted-vinegar-and newspapers approach, or prefer to wield a squeegee like the pros do, choose a bright, still day to clean exterior windows.
Freed from their dark winter coats, clean windows spill sunshine inside, raising everyone's mood!
Catch the Breeze: Open Windows on a Warm Day
Cold weather brings shut windows and tightly-closed doors--which can create a build-up of stale odors in any home. When you live with them, your nose learns to ignore them, but nothing whispers "Spring is here!" like a freshly-aired house.
Solution: let breezes blow! Air out the house one sunny afternoon to bring Spring's freshness inside. Opening doors and windows to catch a breeze will chase away old cooking smells and any stale or musty odors that have built up during the winter months.
After an hour or so, close windows and doors, then tackle surfaces with an electrostatic cleaning cloth to capture any dust or pollen that's settled out in the breeze. Run the vacuum cleaner to remove dust from floors--and enjoy the Springtime freshness!
Blooming Wonder: Bring the Season Inside
Even if the budget won't stretch to regular purchases of cut flowers, Spring's blooming make it easy to spark up a home with fresh blossoms.
Cut small branches from a flowering tree, or gather ready-to-bloom daffodils and tulips from the garden.
Even an inexpensive bundle of cut flowers from the supermarket cooler can bring a welcome breath of Spring indoors.
Displayed simply, in a tall water glass, vase or mason jar, they'll add a splash of Spring color and fragrance to your home.
Fresh Start: Clean Out the Refrigerator
The arrival of a new season is a good signal to clean out stored food in refrigerator and pantry. As farmers' markets and roadside stands open to offer fresh food for the new season, create a good home by cleaning out the remains of winter.
Make a quick check of expiration dates of food stored in refrigerator or pantry, and toss expired foodstuffs.
Look sharp for the last survivors of holiday gift baskets! If you haven't eaten the smoked salmon spread or served the Texas Hot Chili Mix by now, donate these treats to the food bank, so they're enjoyed by others.
Give vegetable storage areas special attention. Bearded carrots, limp celery and shriveled onions can be tossed into a crockery slow-cooker overnight to make vegetable stock--or consign these items to the compost bin. Be ready to store Spring's bounty in a clean and roomy vegetable crisper!
Cull the Cuddly: Wind Down the Winter Warmers
Fall brings no greater pleasure than pulling out fleecy sweats, flannel pajamas and warm blankets--but by season's end, these cuddly favorites are frequently worse for wear.
As warm weather approaches, take a hard look at the family's cold-weather bedding and favorite winter warmers. Separate out the stained sweats, pilled flannel sheets and shrunken loungewear for recycling or donation.
As you return winter bedding and clothing to closet storage areas, make a quick list of any needed replacements. Look alert! End-of-season clearance sales make it easy AND cheap to replace worn-out linens and faded clothes.
Ready to swing into Spring? Welcome the season from your organized home!
Subscribe to:
Posts (Atom)