Wednesday, May 21, 2008

How to stage your home the right way

Selling a home is all about making an impression on buyers. If you want to get the highest price possible for your home it’s imperative that you make a very positive impression on potential buyers. Selling a home priced above average market value is more difficult than selling an average or below average priced home. There are simply not as many buyers who can afford an upper end home. Staging has emerged as a popular means of dressing up high end homes in order to make more of an impression on buyers.

If done right, staging a home can dramatically shorten the length of time a home spends on the market. When staging a home you really need to think like one of your potential buyers. That is, you need to determine what prospective buyers want to see and not what you think looks good. Just because something is appealing to you doesn’t mean it will also appeal to buyers. Fortunately, most home staging companies offer expert advice included with their different home packages.

Curb appeal is everything and how your home looks on the outside makes a profound difference on the attitude of buyers. If you are selling a high end home, your home absolutely must look perfect on the outside. This means you need to do things like trim the hedges, pick up toys, edge the lawn, wash the driveway, and even powerspray the home itself if need be. Hiring a landscaper before you home goes on the market is really good idea and can easily be worth several times the cost.

Clutter is almost always a turn off to home buyers. Buyers want to be able to enter a home and see the home in its most natural state. Buyers don’t want to see your collection of photographs and memorabilia. Again, a professional home staging company can easily help you declutter your home. Different people find different colors appealing but generally neutral colors are much preferred to more bold ones.

Neutral colors are important not only because they look pleasing but because they can also make your home look more spacious. The more neutral the colors are the more spacious your home will seem. Buyers also don’t want to have to go through the trouble of repainting a home. If your home has utilized neutral colors through out you will have a much greater chance of selling your home.

See you next time...

Warmest regards,

Daniel Durham
Founder of Region Real Estate Resource
http://www.regionrealestateresource.com/

Monday, May 19, 2008

Company's coming: What's in your closet?

A state closely resembling panic sets in when the real estate agent calls to say she is coming to show your house. You run around picking up the clutter, stuffing it here and there to make things look nice. So many things get piled in the hall closet that it is almost impossible to shut the door. The kids throw everything from the floor of the bedroom to the floor of the closet. One pushes it all in while the other one shuts the door. You take a look around and feel satisfied the place looks clean enough to show. Out the door you go without a thought about anything but an offer.

Enter the agent. This poor, unsuspecting soul has done her best to round up as many buyers as she can to help you sell your home. She is excited because this one seems like a great candidate. Your house is exactly what this buyer has been talking about for a week. They are about to take a private tour. The key word there is private.

These people who are going through your home are not going to just walk from room to room. They are going to open cupboard doors. They will peek inside the medicine chest. They will open every door and built in drawer there is in the house. After all, they will want to see what they are actually buying. They will want to know how much space is in the kitchen. They will want to know if their things will fit in the closets.

When you put your house on the market everything is an open book. People will be going through with a fine tooth comb to see what the house has to offer. This means looking in places a guest would not even go near. There are some things you should do to prepare your home for the people who will be coming in during the showings and open houses.

The first thing you should do is pack up anything in any of the closets which are not necessary. Put them in storage, whether it is in the garage, basement, or even a storage unit. You will want to get rid of anything you will not need. This will make the closets more roomy and appear larger.

You will also want to clear clutter from built in drawers. Again, box up what you do not need. There are some bedrooms which have the added convenience of built in drawers. Some people keep very personal items in these drawers. Anyone who is interested in buying your home will be looking in them. If you do not want things seen then move them to an appropriate place where they will not be discovered.

Many good real estate agents will tell you to prepare your home so that anyone walking in can visualize their possessions in the space. This means removing any personal items like family pictures. You will want to make the house appear as neutral as possible. This can allow the potential buyer to see the house and not the decorations. They can envision how the rooms will look when they are in the home.

By packing up what is not necessary will help you when it comes time to move. You will have many of the things in the closets and drawers already packed. This makes it so much easier to not leave anything behind. You can also avoid any embarrassment when people start looking behind closed doors.

See you next time...

Warmest regards,

Daniel Durham
Founder of Region Real Estate Resource
http://www.regionrealestateresource.com/

Friday, May 16, 2008

The maze of real estate contracts

First time home buyers, and sellers, can become overwhelmed with all the legal aspects of buying or selling a house. The paperwork can make anyone's head swim. It is extremely easy to familiarize yourself with the real estate contracts with some simple research.

The first contract you may run into as the seller is the listing agreement. This is the real estate contract you will sign with the agent who is going to put your house on the market. This agreement will state the name, address, and other important information about the seller and the property. It will also list the terms of the listing. For instance, how much the brokerage is charging for their services, how much you are selling the house for, how long the house will stay with the broker, and what is included in the sale.

You will also see a lead paint disclosure form if your home was built before 1978. This form simply states when the home was built and that the seller either does or does not have documentation or information pertaining to the lead paint. If there is documentation, the seller is required to turn it over for inspection. If there is no known documentation, the buyer has a certain amount of time to have a risk assessment done to see if a hazardous condition exists.

Along with the lead paint disclosure is the seller's disclosure. This is the form which allows the seller to tell about the property. For instance, if the property is in good repair this can be stated. The seller is responsible for releasing information on any damage which may have occurred due to flooding or other problems. If there was an infestation of any kind which had to be professionally treated, the seller will put it on this form.

The seller will also see another form the real estate agent must present. This is the agency disclosure form. This is the form which states the agent is working for the seller. It is important to have this one because some agents work for the buyer, while others are dual agents who work for both. The seller needs to know who his agent is working for.

The buyer has an entirely different set of real estate contracts they will encounter. The mortgage contract will be used to determine the loan amount for purchasing the property. This will list the details of the purchase. It will tell how much the buyer will put up and how much the lender will contribute. There will also be an appraisal done so the property can be properly assessed.

The purchase agreement is a contract both the buyer and seller will be using. This is the form the buyer will use to make an offer on the property. This will also include the amount the buyer is borrowing, any closing costs they are asking the seller to pay, and the amount of earnest money put down. The purchase agreement will also list what else the buyer would like. For instance, the window treatments or appliances may be requested in the purchase of the home.

One of the last forms both parties will see is the title disclosure. This is the paperwork which states the title is free and clear from all encumbrances. It also states the seller is the property holder and is allowed to sell the home.

One final contract is the mortgage paperwork at closing. This is where the title will change hands, the money will exchange hands, and the property now belongs to the new buyer.

See you next time...

Warmest regards,

Daniel Durham
Founder of Region Real Estate Resource
http://www.regionrealestateresource.com/

Wednesday, May 14, 2008

Understanding A listing Contract

The listing contract is the written agreement between the seller of the property and the brokerage firm or it's representative. There are many aspects of the listing agreement. Each one is extremely important to both parties.

The first thing you will notice is that it states this contract is an exclusive agreement between the parties. This means the only agent you are going to let represent your property on the market is the one listed on the contract. It will be the brokerage firm/realtor listed on line one, usually. What this means in plain English is that you will not deal with other agents unless they go through your agent to contact you. You will not allow another agent or agency to offer your house for sale under their logo.

Your property will be assigned a listing number. This is the number the other real estate agents will be able to use to locate your property in the multiple listing service (MLS) book. It is just like having an inventory number for the home.

You will also notice on the listing agreement the date of the contract as well as the expiration date. Usually there will be a six month difference between the two dates. Most listing contracts are for six month periods. There are times when you can negotiate a shorter term. You can also have a one day listing for a real estate agent if you are selling the home on your own. This can happen when an agent is working with a buyer who drove by and saw your house. The agent will not get paid a commission if the buyer deals directly with you. Many times an agent will approach a For Sale By Owner (FSBO) with a potential buyer and ask for a one day listing agreement so that he or she may show the property. The benefits to this are that the buyer is usually pre-qualified so there is no problems with the deal falling through and the agent may have a title company and mortgage broker already in place to close the deal quickly.

When you have a listing agreement with a real estate agent you will also have in writing everything that goes with the property. This may be nothing but the structure or include everything under the roof. You can be specific. Usually things like window treatments and blinds, appliances, lighting fixtures, and other things like this will stay when you sell the home. However, if the chandelier in the dining room belonged to great Aunt Mabel, you can have it excluded in the listing agreement. Your agent will go over everything with you when you fill out the contract.

One big issue is the commission which the real estate agent will earn should he or she sell your home. This is usually around 7%. Many brokers also have a minimum commission they charge for their services. The commission will always be the percentage or the minimum, which ever is greater. It is also always paid by the seller. There is one key detail which you must be aware of in this paragraph. If your house goes off the market, for what ever reason, and you sell your home to a buyer who learned about your house through the brokerage, you pay the commission. In other words, you can not sell to “Mr. Smith” for six months after the listing expired or was taken off the market if “Mr. Smith” first came to your home because of your agent. If you do, then you still owe the commission to the brokerage.

Remember the listing agreement is an agreement. You can negotiate the terms when you fill it out to what you feel is fair. Talk with the broker to determine what works best for you both.

See you next time...

Warmest regards,

Daniel Durham
Founder of Region Real Estate Resource
http://www.regionrealestateresource.com/

Monday, May 12, 2008

Real Estate Agents and Selling a Home

As you probably know, selling a home can be a long and sometime stressful process. While some sellers get lucky and find a buyer within a matter of days, this is far from being the status quo. The fact of the matter is that most homes sit on the market for a month or longer. Are you going to be able to handle everything that comes along by yourself? If not, you need to look into hiring one of the many real estate agents that are surely doing business in your area. As you can imagine, getting the assistance of an agent is often times much easier than working on your own.

There are some people who would prefer to sell their home by owner. And if you decide to do so, there is nothing wrong with this. Just remember, when you sell by owner you are not going to have anybody to talk to or lean on during the process. Instead, you will be doing everything from staging open houses to negotiating on price on your own. Are you ready for such a large task?

When you hire a real estate agent to help sell your home, they will get a feel for you and your property and then take things from there. The nice thing about this is that you can let your agent do all of the difficult work while you sit back and hope for a buyer to come around. The best real estate agents are the ones who will actively seek out buyers for your home. They do this through various marketing techniques, as well as calling clients of theirs who are in the market. This is why hiring an experienced and well versed real estate agent is very important.

You can sell a home by owner, or you can do things the smart way. There are not too many people who sell by owner, and admit when everything is done that they were right. The bottom line is that real estate agents are in business to help you sell your home. If you are going to put your property on the market, you might as well let an agent assist you. This holds true even if you do have to pay them a small percentage of the selling price.

See you next time...

Warmest regards,

Daniel Durham
Founder of Region Real Estate Resource

http://www.regionrealestateresource.com/

Friday, May 9, 2008

Home Inspection for Sellers

In most cases, a home buyer is the one that pays for the home inspection. But with that being said, there are some sellers who will do this themselves before putting their home on the market. This way, they can get any potential problems fixed, and also market their home as one that has been pre-inspected.

As a seller, the home inspection process is much different for you. Whereas the buyer is the one paying and doing all the work, you are simply sitting back waiting for the results. But even then, this can be a stressful process; especially if you are worried about one part of your home not passing inspection. After all, once problems are found in your home it is up to you to get them corrected, or deal with not being able to make a sale.

Once the home inspection report comes back, the buyer will either accept what they see or ask the seller to fix some problems. Remember, as a seller you do not have to do what they ask. But of course, if you want to keep the possibility of a deal alive you may have to make some concessions.

The worst situation that a seller could run into would be a major problem with their home. This could include anything from a cracked foundation to radon being detected. These are major problems that most buyers do not want to deal with. If you run into this type of issue, it is safe to say that you are going to have to make some major changes to sell your home. This could mean a costly repair, or greatly reducing your asking price. All you can do is hope that you do not run into these problems during a home inspection.

In many cases, the home inspection process is more stressful for the seller than the buyer. The buyer has the chance to walk away in most cases. But the seller will have to deal with any issues that the home inspection turns up.

All in all, an inspection is part of selling a home. If you want to stay ahead of the game, you may want to pay for a home inspection before you ever put your property on the market.

See you next time...

Warmest regards,

Daniel DurhamFounder of Region Real Estate Resource http://www.regionrealestateresource.com/

Wednesday, May 7, 2008

Creative ways to advertise your home

With the advent of the Internet a whole new market has opened in the advertising world. There are virtual worlds being created every day to introduce the world of consumers to new products. Why not use this innovative way to sell your home.

It is possible to create a free web site with many different web hosting companies. This includes Yahoo and Bravenet. You can log on and set up an account for absolutely no charge. Both of these sites have a What You See Is What You Get (WYSIWYG) site builder. You can create a beautiful, informative web site for nothing.

Using this concept, you can advertise your home to the world. Making up flyers with the web site address printed on them will allow you to send interested parties through a virtual tour of your home. You can put these flyers in a special bin under the “For Sale” sign in the front lawn. You can even put them up at the local grocery store or laundry mat. By taking video of your home and narrating it, you can show off your house as no one else could. You can point out all the unique features which made you buy the home in the first place. Then you can point out the hidden ones which made you fall in love with the place while you lived there.

There are sites which allow you to advertise for free, like Craig's List, on the Internet. Many homes have been bought and sold on this virtual “classifieds” section of the web. Investors are always looking here for their next purchase. Whether you want to reach the people in your local area or the ones across the country, you can do it with Craig's List.

Other sites specialize in For Sale By Owner (FSBO) properties. Some of them charge a fee while others allow you to enter your listing for free. Many of these web sites offer informational videos which explain the entire process from deciding to sell to closing the deal. You can even find contracts and other forms you may need. You can chat with other FSBO sellers to see what they are doing to market their homes. Many great ideas come from listening to others.

Of course the traditional sign in the yard will let those in your neighborhood know you are selling your home. However, asking your neighbors in for a private showing can also bring in some great potential buyers. You can do it in a neat way by calling up your friends and neighbors and saying something like this. “Hi Jane, I just wanted to invite you and Bob over on Saturday. Bill and I are putting our house on the market and we thought you may know someone who might want to take a look at it. How does 1 o'clock sound?” You got their attention, went straight to the point and let them know they could bring someone to look at the house. You can explain the details later in the conversation. Things like it is only going to be for a half hour because you have someone else coming at 1:45 gets the ball rolling. If “Jane and Bob” know anyone who thought about moving into the neighborhood, this is their time to shine. Remember, people like to shine. If you do this with ten of your friends and neighbors, you just got some of the best advertising money could buy, word of mouth.

When you sell a home, think of it as a marketing game. You have the product, now find your market. Ask yourself who would want your house and where would you find them. This is always the best place to start when selling anything and a house is no different. There are many creative buyers. Be a creative seller.

See you next time...

Warmest regards,

Daniel DurhamFounder of Region Real Estate Resource http://www.regionrealestateresource.com/