Moving Out? In Today’s Real Estate Market, Which is Better, Renting or Selling?

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Contrary to what many experts, news media or analysts may have you believe, market conditions are not as bad as they are portrayed.  In some areas inventory is down, prices are up and the general consensus is a positive one, moving up in a positive outlook for the future.  But the question does arise when one is moving from a home – whether selling it now or renting it to hold out for a better selling price makes more sense.  Here we’ve put together some considerations that will help you discern which is the better choice for you.

Real Estate Is Always a Gamble, Now’s Not Any Different

There is no real way to tell exactly how the market will behave at any given time in the future but currently all trends reasonably point to both options being equally as viable.  If you opt to keep your home and rent it out, say for the next couple years or so, then there is a chance that prices will hit rock bottom and then begin to climb up again during that period.  However, there is also a chance that prices continue to plunge – in which case you would have been better off selling while a bit ahead of the game.

The main thing to keep in mind here is that even though things go up and down in the short term, real estate is a great long term investment and it’s fair to say that ultimately there will be a gain on your property value. 

Buyers’ Market Today, Who Knows What Happens Tomorrow

So many indications of it being a strong buyers’ market these days make it seem that the opportunities on the buying end of things are endless.  However anything can change and it can change fairly quickly.  Take our current interest rates.  Though buyers have been used to seeing such historically low interest rates for some time now, if the government decides to raise the rates it will instantaneously change things.  Since buyer’s ability to purchase will be affected in a major way, prices will concurrently come down.

Heavy Foreclosure Inventory Appears to Dominate The Coming Path

Nationwide there are literally millions of foreclosure properties out there that need to go through the system.  As foreclosure and short sales flood the market, prices will plummet as a result of these distress sales.  In some markets this trend has crept into the upper-end niche of the real estate industry.

Why Renting Can Be Risky

If a homeowner rents out their property and while it is on rent the condition of the property suffers some damage – then they have negatively impacted the value of the home during a time when they had hoped for an increase in value.  This is the single biggest gamble when it comes to choosing to rent your home rather than selling it.

Also, there is no way to tell what the condition of the selling market may be when it comes time for you to decide to sell.

Consult With Your Realtor To Assess Your Options

Realtors deal with myriad situations on a regular basis and they also intimately know the statistics of your neighborhood and surrounding areas.  By consulting with a trusted and reputable Realtor in your neighborhood, you can gain ample perspective on exactly how your property might fare in today’s market conditions.  An informed decision would be made, given the factors at hand so you can be assured that your choice is the best as per your own situation. 

Five Reasons Why You Should Hire Us, Not Them

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In a sea of agents, trust me – you want to hire someone who can keep your deals afloat and get you the best deal on the home of your dreams.  But I’m not suggesting you hire us based only on this one statement, in fact, I can provide you a list of reasons why we are a cut above the rest.  

Whether you are considering a new home so you can move up and into something better, or you want to invest in some property to avail the fantastic low rates out there right now, we want you to hire us.  Here are the top five reasons why hiring us for your real estate buying dreams will end up in you getting your dream home and us having a fruitful relationship with years of professional friendship to come.  But don’t take our word for it – the reasons listed below have come from our actual clients, who after years of being asked why they chose us over others, collectively answered with these consistent responses:

We Listen To You

You wouldn’t believe the nightmare stories we have heard about other agents trying to impose their own preferences on buyers.  Well, where we’re concerned, we understand and value the importance of your needs and the first step to implementing them is to foster solid communication – both ways.  That way, you can count on us going after the things that are most important to you and we can count on you trusting us.

Our Team Follows Through 

Nothing is more frustrating than to send an email or leave a voicemail for your agent and then spend hours, days or even weeks waiting for a response.  Our mantra is to follow through with everything and that means that every communication we get or every item that needs to be discussed, relayed or investigated – no matter what it might be – we get it done.  If we said we’d do it, you can count on it getting done.  

We Know Our Markets

Anyone can become an agent and often there are agents who “handle” markets all over the place, regardless of whether they’ve ever stepped foot in the town or not.  Inside information on the little nuances of a place can only come from a person or a team that knows the area well.  When you’re looking at buying a property, this inside knowledge is paramount and one that we pass on to our clients by way of our knowledge of the industry and our markets.

Our Team Is Solid and Strong

The hand picked team that we have developed did not happen by accident.  With careful consideration and years of cultivated relationships, we have created the perfect blend of a solid team and strong organization that keeps its promises, while delivering everything according to plan. That, too, is not by accident.  I have personally developed a system for every aspect of our organization so that we can carefully measure our progress and provide our clients with optimum service.  

Honesty and Integrity Is Our Priority 

Finally, our priority remains honesty and integrity.  We realize that in a business such as ours there can be lots of ups and down – and there is no better demonstration of that than the current state of our real estate market and overall economy.  Our clients know that we will always be honest with them about what to expect, whether or not their expectations are realistic and anything else that may come up in the myriad transactions that take place for real estate.  We take our relationship with our clients and their needs very seriously and work very hard not to jeopardize that trust.  Poor representation can cost thousands of dollars – excellent representation is priceless.

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With these five aspects of our business, we are confident that our clients understand our priorities and have rewarded us with their business in exchange.  I invite you to come visit us to see if there is anything we can do to help you get into your next dream home.  We won’t let you walk away disappointed.

How to Make a Buyer WANT Your House! Staging your house, before it’s too late and you lose the sale

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If you’ve shopped for a home, chances are you’ve come across one that you really wish you hadn’t visited in the first place. True, houses for sale ought to have a certain “lived in” quality to them, because they are to be lived in after all, but the art of tactfully balancing just the right amount of homeliness with neutrality is not so simple. You need to know what you’re doing when you prepare to set up your house and show it to potential buyers. We’ve put together some great tips for home-sellers so you can get the same results you’d get by hiring a professional staging company.

Fix Up the Place

One of the biggest mistakes homeowners make before putting their house up for sale is to neglect areas in the house that need attention. Folks, don’t leave that faulty step unrepaired, only for a potential buyer to step on, slide off of or worse, get injured on – FIX IT! You might think potential buyers won’t notice but they are walking around on your premises like hawks, noticing each little detail. The good news is that they are noticing the first-rate stuff too, so as long as you have the home’s amenities in order and other major areas in tip-top condition, you should be in good shape. Here’s how:

Get Rid of the Clutter

If you want to successfully sell your house, you need to get those potential buyers to imagine they already live there. Too much clutter, hobby-oriented items or personal possessions that most people may not be able to identify with, can easily get in the way of that vision. Organize things in stylish storage bins or better yet, have a garage sale before the open house and get rid of unwanted stuff. You have to move soon anyway, why not kill two birds with one stone? A clean and organized home will seem like a clean slate to buyers, who can then see themselves moving in without much hassle and settle in effortlessly.

Stay Neutral

Skip the tie and dye sofa cushions, shaggy 70s rug and don’t light incense on the day of your open house. While you’re at it, don’t fill the space with gender-specific things either. Buyers should walk into a neutral ground – literally. Light to medium colors, preferably in beige tones, are the simplest way to pull buyers’ attention away from other personal aspects of your home that they may not be able to identify with. Beige goes with almost anything so if someone considering purchasing your home can imagine their things in the space, then you’ve just crossed one of the most major hurdles in home-selling – making a buyer identify with the home.

Make It a Modern, Inviting Environment

If you don’t already have them, invest in a few modern decorative accessories to improve the look of your space while lending an air of style and taste and making it more enticing. It doesn’t have to take much but depending on how you set it up, you can enhance a given space with a few simple additions and deletions. Take your over-crowded study and rearrange the bookshelf to display only a few strategic but essential books, like a leather-bound set of encyclopedia or some literature classics. In the same way, leave a few children’s toys in a child’s room but be sure to display them tastefully.

Put a Few Finishing Touches in Place

The idea is that you want your house to be sold – and you probably want it sold fast. If you are careful to respect the people who are visiting your space to decide whether it’s the right one for them, then you are doing something that a lot of homeowners neglect to consider. Taking down a piece of controversial artwork that may make a potential purchaser uncomfortable could be the one bargaining chip that could make or break the sale. Arranging for all those who currently live in the home to be away during the open house and while showing the house being dressed in a way to present a good impression are also great ways to tip the scales in the right direction.

It’s very simple. You need to make the potential buyer feel right at home from the get-go. If from the moment they walk in and smell cinnamon cookies baking makes them wish this was already home – then you’re already two steps ahead and can call the open house a success! Of course, a signature on the dotted line is where the real success lies and as long as the buyer feels at home, chances are that if everything else lines up – the sale is a winner!

How Sellers Can Boost the Sale

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If you have made the decision to sell your home, of course you want it to sell well.  By selling well, we mean that you would expect to generate interest in buyers when your property is listed, be proud of your home as it is shown to prospective buyers, yield a good sale price and with all transactions running as smoothly and effectively as possible.  But how does one promote this type of positive and smooth-sailing sale?  As the owner of the property, there is a lot you can do to help convince buyers that your home should be their home.

Preparing the Home for Sale

In the soft market that we are currently experiencing, buyers have the edge and they know it.  That means that once they enter a property unless they are compelled to stay, they will simply move over to the next home on their list. 

Keeping in mind that buyers lean toward the most effectively priced homes as per the market– and also the ones that are clean.  By clean, we mean more than just vacuumed carpets, swept floors and spotless bathrooms.  In terms of selling a home, “clean” goes a lot further than that.  Be sure that beyond standard cleanliness, you also address larger items like windows, major appliances, basement area storage, the garage and exterior areas of the home. 

Another thing to consider is how cluttered the space is when a buyer walks through it.  Less clutter translates to the buyer viewing more of the house while visualizing his or her own personal touches in the home.  Similarly, by removing your own personal touches such as photographs and school calendars etc. on the fridge, for example, potential buyers can focus on how they might see themselves living in the home. 

Many homeowners neglect to pay attention to curb appeal – a very important part of the home that makes a very strong impression on buyers.  Check that the outdoor space is maintained, landscaping is updated and the entryway is appealing. 

Renovations, Updates and Repairs

A common question asked by sellers is what level of renovation and/or updating should they do prior to selling a home – and the answer will vary from one Realtor to the next. We suggest that you stay with the more basic of updates such as having carpets steam cleaned, walls touched up, or other important repairs that are essential to function, safety and security of the home.  Aside from these things, any renovations you have done may not be useful depending on the buyers’ tastes and should be avoided if possible.  Buyers may want to use those areas as part of negotiation based on their own needs or requirements.

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Selling a home is not easy, especially these days with so much more inventory on hand than buyers.  But if you plan it right and make good decisions you can and will succeed in your quest to sell your home – even in the winter.  A good Realtor that is experienced and knows the ins and outs of selling in a tougher market will be able to guide you, helping you to reach your selling goal sooner, better and at the best price possible.

With So Many Foreclosure Flops, the Best Opportunity for 2012 Lies in Flipping ‘Em

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Most people these days are wary of making any investments in the real estate industry until the financial situation improves – however, with some time and effort the current gloom and doom outlook need not be.  For the right investor, seizing opportunities that lie in REOs (Real Estate Owned properties) and making improvements upon them could be the perfect solution to keeping within the real estate arena yet doing so with considerable less risk. Here, we’ve put together some basics on what to consider when looking at a property to flip.

Assess Your Budget

Like any investment, purchasing a property with the intent to put more money into it to improve upon and correct existing problems, needs to be done with a well thought out plan.  The very first thing to consider is what budget you can set aside for this endeavor.  Keep in mind that many times a home that was previously owned by private owners and then subsequently foreclosed, has a chance to have hidden “surprises” and structural problems that are unexpected.  When you are assessing your budget for a flip project, be sure to include an extra margin amount for those sometimes lurking beneath the surface and unforeseen expenses.  

Review the Property

 When looking at potential flip opportunities, we strongly suggest having a building inspector review the property for a clear picture of what you may be getting into.  The types of  homes that are ideal for flipping are the ones that simply could use a bit of updating; new floors, updated kitchen appliances, fresh landscaping.  If what you come across are systemic problems, like bad plumbing, a weak foundation or an inadequate roof, it is best to steer away from that property.

Make a Plan

Many novices doing a flip for the first time make the mistake of not researching the steps needed and also failing to create a clearly outlined plan of action.  When you embark on a flip knowing all the potential costs, having identified the vendors/suppliers you prefer to work with for the scope of the project and you know exactly what you want to change versus what you want to leave as is – the success quotient is much higher.  It goes without saying that a project of this size without a plan of action is a recipe for disaster.

Be Disciplined

A lot of homebuyers who have ventured into property flipping recount having slipped out of their budget or letting the time frame and schedule lag significantly behind.  It is very important not to steer away from your original plan, as much as possible.  There will be times when you will have no choice but to handle something you hadn’t planned for in the first place, but generally, you will need to be vigilant about budget and schedule.

Choose Vendors Wisely

A very common mistake committed by inexperienced self-contractors during the process of fixing up a home for resale, is that the vendors and suppliers they choose are not certified or qualified with enough experience.  While it may be tempting to hire the lowest costing service providers to handle your home improvement tasks, doing so can end up disastrous and even cost you thousands of dollars.  This holds especially true for the larger improvements made to a property, such as a basement finishing or a kitchen/bathroom extension and remodel.  The old adage “you get what you pay for” is one to be taken seriously when it comes to flipping a property and hiring qualified subcontractors is an investment within your investment that you can’t afford to ignore.

Be Realistic

Finally, when putting your property on the market after you’ve made all the necessary improvements, be careful not to overestimate the cost.  By remaining realistic when pricing the property, you will most likely ensure serious buyers considering your property.  Inflated prices will only hurt your chances to sell within a reasonable profit.  Another thing to remember when putting up the home for sale is to be open with potential buyers.  Being forthcoming about the circumstances, your involvement in fixing up the home and in what capacity it was purchased – will create goodwill with your potential buyers and even open up the door for more successful flips in the future.
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Transformation of properties, in order to improve and increase their resale value has been a phenomenon long-standing, however during the last decade or so the occurrence has multiplied.  Especially with the number of foreclosures listed these days, now is the perfect time to buy and hold, or better yet, flip the property and make a handsome profit on it in the process!

What is the Foreclosure Situation Like in Our Area?

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One of the most common questions I get asked is how are foreclosures affecting our local market.  It's very difficult to look at an individual market and assess how the foreclosure situation is progressing there because the market is made up by many smaller areas. These smaller areas can have their own mini real estate market within them, so it's difficult to speak for the whole.

Some areas will show less of an effect of foreclosures.  For instance, we have seen that the areas that have more money and job stability in them have experienced less foreclosures.  At the same time, some of our lesser financially secure markets have shown more foreclosures.

When you look at the country as a whole, you're talking about one big pool of foreclosures throughout the entire country.  What you really need to identify is how the foreclosures are affecting your particular area.  The best way to do this is to contact your local real estate agent who can give you information specific to where you live.  This is especially important if you're thinking about selling because you need to know what kind of a situation your local real estate market is in.

How Can I Prevent A Foreclosure on My Own Home?

In order to prevent experiencing a foreclosure or short sale of your own home, you need to take some preventative measures.  If you see that you're having financial difficulty paying your mortgage, the first thing you should do is contact your bank and let them know.  These days, mortgage lenders have all different kinds of remedies available that might be able to help you get through the financial crisis.

For instance, there are loan modification programs available to homeowners who qualify.  Many times, it's simply a matter of filling out paperwork with your mortgage company and getting someone specific assigned to your case that can help you.

However, if you see that you are not going to be able to stay in the house for whatever reason, you may want to consider doing a short sale.  Again, you can contact the bank directly and inquire about the possibilities there.  You can also speak with a local real estate attorney or your agent to help you through the process of the short sale.

If you have any questions about our local market and the foreclosure situation, give us a call today.  We are always happy to answer your real estate questions.

Get Debt FREE and Raise Your Credit Score!

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Pay Off  YOUR Debt,  NOW!

The only way to raise a credit score is to pay off your debt or at least reduce it to an acceptable level! I recommend paying off high interest rate  credit card debt first.They can suck the life out of your finances! As for those, "magic cure" credit repair commercials you hear and see promising a quick fix, their scam is even greater than high interest rate scam your credit card company is charging you!

What steps do you need to take to build your credit score to the highest level possible? How can you secure a mortgage with a lower interest rate? Use my common sense guidelines provided below to get rid of the debts that have reeked havoc on your chances for a lower-interest mortgage on your dream home.

1.) Pay Your Bills on Time – All the Time!
I know, I know – this isn’t always easy. But, lenders of all kinds look for reliability on your part. Since loaning money is a risk for them, they look for signs that you have a reliable income and the discipline to pay your bills over time. When they see those signs, they say to themselves, “Hmmm, this person looks like a good risk to me; therefore, he or she deserves a lower interest rate.”

2.)  Do Not – I Repeat! – Do Not Open Unnecessary Credit Cards!
People sometimes open credit card accounts in order to increase their available credit. Absolutely avoid this temptation! It’s simply too darned easy to charge for items you don’t really need, and, before you know it, you’re back in debt or have increased it to an unreasonable degree.

3.) Budget, Budget, Budget!
Financially, this is possibly the most “unsexy” task there is, and yet it’s the most vital and important one you can possibly undertake! YOU need to figure out where you stand financially. Budgeting will allow you to get rid of debt, improve your credit score, and shape a low interest rate financial future for you!

4.) How Much Debt is Too Much?
Here’s the first question to ask yourself in terms of budgeting: How much debt is too much?
Actually, there’s a standard financial formula that allows you to answer that question. This formula is called the debt to income ratio, and what it does is measure your net monthly income against your debt.

Here’s an example:
"George” has a net monthly income of $2000 and his monthly debt payments are $500.
So, to get his debt-to-income ratio, George divides $500 by $2000 and gets this ratio:
500÷2000 =.25 (25%)
  
Is this a good ratio?
Well, financial experts generally agree that debt expenses should be 25% or less of your income. George’s ratio is reasonable but could be better.So, what’s the ratio of your debt to your income? Figure that out by taking the next step.

5.) Calculate Your Debt-to-Income Ratio
You can answer that question by completing the following tasks:

Task 1: Analyze your bills from the last month. Add up all the fixed expense items (rent, mortgage, car payments, child support, loan payments, etc.)

Task 2: Review your credit card bills and add up the minimum payments owed on each card.

Task 3: Figure out your monthly take-home pay (net salary).

Task 4: Divide your monthly fixed expenses by your monthly income to get your debt-to-income ratio.

What percentage did you get? If it’s 25% or greater, then it’s definitely time to budget in order to reduce or eliminate your debt.

 I’d be happy to discuss some more in-depth  budgeting tips and provide you with information on mortgages at the same time!