Vacation Homes: A Place to Make Memories

Last week I showed several beach properties on the island of Sunset Beach, NC to a couple who were looking to purchase a vacation or second home.  The day was glorious with beautiful blue skies and sunshine which I had arranged just for them!!
One of the homes we looked at was an older home which had been lovingly cared for and showed very well.  On the right side of the home was a large room which looked like a converted porch.  It ran the width of the house and then lead out onto the back porch and the roof deck.  One half of the room contained two twin beds in an "L"  and a dresser of draws for additional sleep space.  The other end had a small table and chairs and a TV.  Something about that room almost immediately took me back to my childhood and summer vacations spent with all my cousins at the beach house my grandparent's would rent every year when we were young.  Three generations would spend wonderful times together at the beach.  There were beds everywhere and it must've been those "L" shaped beds that jogged the wonderful memories of a simpler time.

  A few months ago, I had the pleasure of helping another couple purchase a second home, this time on the mainland.  Theirs was to be a vacation home for their entire family and every decision they made was with their children, and their children's children in mind.  This was their gift,- the purchase of this second home where the family would vacation together,  enjoy each other and be present in each other's lives.

Times have definitely changed but vacation homes still have the magnificent power to bring families together and strengthen the ties that bind; to make us take time to appreciate each other and form new memories that will last a lifetime and put a smile on your face.

My Vacation Memories from Days Gone By

 

 

When You Make An Offer to Purchase A Home...Go The Distance

When a client is ready to make an Offer to Purchase on a home, one of the first things I do is determine how realistically the asking price is.  This is important because the closer asking price is to market value, the closer the agreed upon purchase price will be to that number, except in cases of hardship.  To determine market value,  I look at comparable sales in the last six months, days on market, whether the home has received other offers, tax value, and local market conditions, to name a few.   I present my finding to the buyer client in order to help them determine a good opening offer.

Of course it's human nature to want to get the best deal possible, I get that.  But the purpose of making an offer is, at the very least, to get the seller to counter offer, if not accept.  So if the home is priced relatively close to market value, and your initial offer is ridiculously low, the only thing you will have accomplished will be to have insulted the seller who'll shut you down.  

As an agent, I wish for homes to be priced correctly because they are easier to sell.  As a buyer, you have to be able to recognize it when it happens and react accordingly.  Your agent has done a lot of work to help you achieve your goal of finding a home in your price range that meets your needs; has done all the paperwork necessary to make an offer; and has researched comparable properties and market conditions so you can make an educated offer.  If you are a serious buyer, go the distance.  Consider all the information given to you by your agent and negotiate intelligently.  If both buyer and seller are committed, it should result in a meeting of the minds and an accepted offer.

The Proof is in the Pudding...I Mean Pricing

Recently I  received a full price offer on one of my listings - my second listing to receive full price in as many months.  What this illustrates to me is that the proof is in the pudding - if you price your home or property correctly from the start, it will sell faster, the percentage of sales price to asking price will be greater, and there will be a minimum amount of negotiations needed.
 
As agents, we take many classes, study the MLS and the market trends, do our comparative analyses, all so we can be insightful and offer our clients the best possible service.  Our education, and more importantly our experience, has shown us that correctly pricing a home or property from the start is important for several reasons,

Pricing a home correctly from the onset, according the National Association of REALTORS* is key to a swift sale.  That is important because a home priced incorrectly means it will spend a longer time on the market.  Longer time on market also correlates to the number of price reductions,  increased need for negotiations and seller concessions, and finally sales price as a percentage of list price will be lower.

It is understandable that the decision to sell a home can be an emotional one.  Agents do recognize that you may have brought up your children in this home or that you may have put your heart and sole is in it.  But you hire a real estate professional for their knowledge of the local real estate market, for their objectivity, experience and ability to create a pricing strategy based on many factors that impact price.  You hire a real estate professional to sell your home as quickly as possible and for the most money it can get.  All they want is to do their job and achieve the results you want and expect.  Trust them and listen to them.  The cost of overpricing is too dear.

Getting a Mortgage After Foreclosure - MSN Real Estate

Getting a mortgage after you have gone through a short sale, bankruptcy or foreclosure will be challenging, but it's not impossible.

Getting a mortgage after foreclosure - MSN Real Estate

 

 

1195 Eastwood Landing Way, Sunset Beach, NC

Are You Ready to Make An Offer?

   Your real estate agent has shown you homes and you now want to make an offer. These days, everyone is looking for "a deal", but you need to be able to recognize "a deal" when you see it.

The comparable active and sold property information that your agent gives you should help you determine what market value is for this home and how asking price compares. The home may be priced above market value, but if it is priced belowt or at market, even if you made a full price offer you still would be getting a good deal.

Compare this home with the others you have seen in your price range. How does it rank among them? If it out-shines the other available properties, has more upgrades, better location, or a more appealing floor plan, for example, it will have more value than the others.

A seller offering to pay all or some closing costs, is providing a home warranty that transfers to the buyer at closing, or is willing to work with your time table also adds value. All things to consider.

In closing, a "lowball" offer does not guarantee getting a "good deal" on a home and may actually have more negative effects than positive. You have to be able to recognize a good price when you see it, and if you are a serious buyer, make an offer and negotiate it from an educated standpoint. Be realistic and stay focused on what you and your agent are trying to achieve - not the thrill of the game - and you will get the prize!

Antiques Roadshow and a Lesson in Real Estate

Recently, I subscribed to the blog of Joe Manausa, Owner of Manausa and Associates, a Century 21 affilate in Tallahassee, Florida. Joe's blog was about watching an episode of the program, Antiques Roadshow. If you've never seen it, people bring their treasures and get them appraised and valued by experts.

This episode, while not about real estate, happened to include a great analogy and might be helpful to sellers and how to price their home in the market, and clearly describes why the appraisal value may not always be the market value. Please read this short but interesting blog by Joe Manausa.

What The Antiques Roadshow Can Teach You About Selling A Home I was watching an episode of the Antiques Roadshow this past weekend and I saw numerous lessons on valuation that could be applied to selling a home.    Read more

What You Should Know About Working With A REALTOR

As a REALTOR, I think buyers and sellers should always seek the services of a real estate professional when looking to buy or sell property. But my opinion is definitely biased!  Yes, selling real estate is my job, but honestly, money is not the only reason I do it. In fact, and I know you won't believe me, but as I progress through the purchase or sales transaction and I get to know my clients, their dreams become my dreams, and the commission check I get at closing is almost an afterthought!  Told you you wouldn't believe me...but it is true!

• A real estate professional can help sellers increase their bottom line by knowing the market and what similar homes have recently sold for. Pricing your home correctly from the onset is very important and your agent can help you determine what the value of your home is.
• Agents have many tools available to them to advertise your property and get buyer attention. Close to 90% of buyers start their search on the internet and agents have access to websites, the Multiple Listing Service (MLS), and resources that syndicate listings to all major real estate websites basically all over the world.
• Real estate is our job and agents work at selling your home or property every day.
• Perhaps you're tempted to sell your home on your own because you think you will get more money, Before you put that "FSBO" sign in your yard, be aware that it can indicate to buyers that you would be willing to take a lower price. In addition, strangers will be ringing your bell to see your home who may not really be interest in purchasing or who are not qualified to get a mortgage. Agents know how to screen perspective buyers, have the contacts to get them qualified for a mortgage, and know how to negotiate price and other important aspects of a contract.
• Buyers should choose a REALTOR they want to represent them with care, but once you find one you are comfortable with, you should sign a buyer's agreement. A buyer's agency agreement is a commitment that goes both ways. It not only commits the agent to you, but also shows the agent that you are also comitted to him or her and that you have confidence in how they will represent you. Once they know know that, they will work tirelessly for you.
• When you find a home, an agent can provide market information and insight to help you determine what kind of offer to make. They will not tell you what you should pay - that is up to you, but they can tell you why a seller may or may not take less and provide the tools so you can make an informed decision.
  

In conclusion, once you have found a good agent, stick with them and let them do their job. The rewards will be great.  

Mortgage Forgiveness Debt Relief Act for Short Sales Extended

In an effort to avoid the fiscal cliff, Congress passed the 2013 AmericanTax Payer Relief Act. Included in it is a one year extension of the 2007 Mortgage Forgiveness Debt Relief Act through the end of 2013. This is good news and a relief to homeowners who may be in a short sale situation or considering it.

A short sale occurs when a homeowner is in default and needs to sell a home which is worth less than the mortgage amount owed . The difference between what owed at time of sale and amount actually receivde from the sale is called the deficiency. The sale price is subject to lender approval for the very reason that the bank or lender will be accepting an amount which is less than what is owed.

Prior to the Mortgage Debt Relief Act, the government viewed the debt forgiveness as income to the seller who then had to pay taxes on that "income" at the end of the year. To sellers facing this tax liability in addition to having to give up their home, the advantage to short sale over foreclosure might not be so clear.

The extension of the law allows borrowers to exclude the debt forgiven in a short sale from income. Thus the added stress of a looming and possibly large tax liability is removed making the short sale solution a more viable alternative to sellers facing hardship once again. The amount extends up to $2 million ($1 million if filing separately) of debt forgiven on a principal residence. As per Compass Point Research & Trading, "for homeowners to qualify, their debt must have been used to buy, build or substantially improve their principal residence and be secured by that residence".

A Few Simple Renovations Can Yield Big Returns

Many times when I am showing real estate, I am surprised at how closely buyers scrutinize the condition of the homes; how little they are willing to overlook regardless of how realistically priced the home is, and with little regard to the value a home that just needs a little TLC.  More and more it appears that the discerning homebuyer just doesn't want to be bothered even if the home is a "bargain".
For this reason, it has become increasingly important that sellers consider making some renovations prior to putting their home on the market.  I realize the idea of putting money into a home you want to sell may not sit so well and that sellers may cringe at the idea of doing home renovations, but you need to weigh the size of the investment you will make with the return you will get when you sell. 

There are a few affordable do-it-yourself projects that can be done with minimal disruption to your home, and which can result in substantial returns.

1. Hard Wood Floors - According to HomeGain's Annual Home Improvement and Staging Survey, approximately 86% of homebuyers in 2011 chose a home with hardwood floors.  If you have wood floors that seem worn, you may want to consider refinishing them.  This would require the expertise of a skilled professional, but is well worth it.  If you don't have wood floors, seek the advice of a craftsman and explore your options regarding different installation methods available.
2. Kitchen & Bathroom Hardware - Installing new towel racks, cabinet handles, toilet paper dispensers, etc, is a simple upgrade that you can do yourself if you are somewhat handy and which can make these rooms appear to have been upgraded. 
3. Cabinet Upgrades - If your cabinets are not dated or in poor condition, refinishing the doors and draw panels and replacing old hardware with updated ones is less expensive and less disruptive to your home. 
4. Exterior Door Replacement - The first thing visitors see as they approach your home, the front door should be replaced if it is old, damaged, warped or energy inefficient. 
5. Fresh Coat of Interior Paint - A fresh coat of paint goes a long way and not only brightens your home, but also protects it. It helps to show your home in the best light and while it does take patience, you can do this project yourself. ( I say this easily, but I am the first one to step into paint or spill it!)

Some other simple projects which give sellers the biggest return for their time and money are:

• Cleaning and decluttering countertops, closets and shelves
• Brighten up the home by cleaning windows inside and out; maybe replacing old curtains and lighting fixtures
• Rearrange furniture and add some new accessories, artwork and soft music
• Spruce up the curb appeal by making sure lawn, bushes and flowers are cared for and manicured 
• Shampoo carpets; repair floor creaks, cracked moldings
• Fix leaks in and under the sinks, remove any mildew stains; ensure plumbing is in good condition

I know this seems like a lot, but these days sellers must make the effort if they want to attract homebuyers and statistics show these projects will be worth your while.

Buyers Facing a Changing Market

House hunters looking to cash in on the "perfect storm" of low mortgage rates and reduced home prices may have to change their strategies. Market competition due to diminishing supplies of homes in certain price ranges and locations is causing a condition we haven't seen in awhile - multiple offer situations. For that reason, and what I try to tell my buyer clients, is that if they want to get that "deal", they will need to make a realistic offer and be prepared to move quickly.

How To Prepare

• Research the area and available properties ahead of time. Make sure you know what you are looking for in a home and understand home values.
• Before I take a buyer client out to see homes, I make sure they have already talked to a lender(s). I want to know that they are serious, but more importantly I want to know that if we find a house that they like, they are actually in a position to purchase.
• When shopping for a mortgage, look for a local and accessible lender. Ask questions - How long will the approval process take? Are underwriters on site or in some other location? Can the lender provide a preapproval letter quickly? What are their current rates and fees?
• While it is not required, to save time and show buyer intent I like to include a lender preapproval letter with any offer I present. A preapproval letter will inevitably be requested by the seller so that he has some indication that the buyer can, in fact, get a mortgage. To take it a step further, actually going through the mortgage-approval process will save transaction time and determine the maximum amount you can borrow. A seller will consider that a big plus, should you be in a multiple offer situation.
• Any credit issues should be resolved in advance and make sure you have the cash for closing costs and the down payment.

Making An Offer

Despite the decline in the housing market, buyers should realize that homes are selling and that most likely, if you are interested in a home that looks good and is priced right, someone else is too! So when you find a home that you like, you need to be ready to be decisive and move quickly. You want to write a strong offer. Your agent should try to find out what is motivating the seller; if timing is important to them, or money, or both. Then you can try to tailor your offer to include those things if possible.
An earnest money deposit will also accompany an offer. Minimum is usually 1% of offer price, however, a higher earnest money deposit may make a statement about how serious you are. The type of loan you are going to obtain may also play a part in whether a seller chooses your offer over another's. FHA, USDA and other government loans may have more stringent requirements and appraisals, whereas conventional loans or a cash buyer may be more appealing to the seller. Conventional loans usually require a larger down payment.

In conclusion, buyer competition and multiple offer situations may be something you will face in the future. If you follow some of these tips, are decisive and prepared, it could help you get an accepted offer and the home of your dreams.