Overcome Obstacles

Analyze your situation. What barriers are keeping you from selling? For instance, many sellers feel handicapped by a less than ideal location, but location is just one part of the home sale cycle. You can overcome this and other issues easily in almost all cases by packaging your home to make it attractive to buyers no matter where it is located.

Before you discount the price, try inexpensive fixes such as pressure washing the roof and exterior, painting exterior doors, and making sure the windows are crack-free and sparkling. Key areas like kitchens and bathrooms must look fresh and inviting, and make any repairs or necessary upgrades. Painting and your sweat equity in cleaning, repairing and refreshing your home are the least expensive, most effective ways to get a higher price.

The old school trend was for sellers to offer allowances such as a carpet allowance or an appliance allowance as an incentive for buyers to make a purchase offer. However, most modern buyers are not interested in fixer uppers. They want a home that they can move into and set up housekeeping immediately. Installing new carpet or upgrading appliances may cost a little up front, but if the investment yields a full price contract, you get a quick return on the money.

Do Your Own Creative Financing

What do you do if you have a qualified buyer who needs $20,000 down for a $100,000 house, but only has access to $10,000? Rather than take the hit yourself by cutting your price (and profit), consider holding a second mortgage for the additional $10,000. Protect yourself with a contractual agreement and make sure that the terms are acceptable to whoever holds the first mortgage.

Another way to sell your home without lowering the price in a slow marketplace is to sell it on what is known as a land contract. In this scenario, you maintain the title and rights to the property, but you contract with the buyer to pay a down payment and specified monthly payment for a pre-determined period. At the end of the contract, the assumption is the buyer can qualify for a conventional mortgage and you complete the transaction in the traditional way by closing the sale.

The advantage to sellers in this instance is they still hold title to the property and the equity so they can take a loan against the cash value of the house if necessary. This is a much better scenario than renting the house if it doesn’t sell because you are working with a motivated individual who has a stake in purchasing your home. If the deal does go bad for whatever reason, you own the home and can put it back on the market.

As a last ditch effort to sweeten a deal if you’ve tried all other options and the house is just not selling, consider renting it until the market takes an upswing.

Negotiate from Strength

Never act insulted by any offer even if the price seems unrealistic to you. Always act as if you are seriously considering their offer, but be prepared to counter.

One of the biggest objections for inexperienced sellers to overcome without sacrificing a big chunk of their profits is “Would you take less for the house?” Whether the buyer is asking you to take $5,000 less or $50,000 less, the bottom line is when you discount price; the money comes out of your pocket.

One way to handle this situation is to build the value of the home in the buyer’s perception by pointing out things such as:
• Renovations to the property
• Amenities such as proximity to shopping, educational, recreational and community sites
• New or refurbished roofs or heating and air conditioning systems
• Safety and security of the neighborhood (is the next door neighbor a policeman or fireman)
Then, answer the objection by saying something like “When you consider the value of all these extra features, wouldn’t you agree they more than exceed the amount you are asking me to discount the price?”

Answer questions with questions. For instance, if the buyer asks you to lower the price, respond with “Obviously, you have a reason for asking that. May I ask what it is?” This allows you to discover their real motivation for asking for a discount. Many times, buyers are simply asking for the price to be lowered on the chance that a desperate seller will cut the price to make a sale.

If they want a lower price to compensate for a minor issue such as worn-out carpeting or minor remodeling, ask them to commit to a full price contract if you fix the problem. This allows you to decide if fixing a perceived problem is worth obtaining a full price purchase offer. If you feel that absorbing the total expense of mitigation is too much, ask the buyer to split the difference with you. The key is to establish a situation where you sell your property at the price you want while the buyer feels that they made a good deal.

If you are a For Sale By Owner seller, it is probably because you want to get top dollar for your property without paying a large portion of the net profit to a real estate agent. However, if you want to sell your home fast and get the highest possible price, you’ll need to do your homework and avoid making these expensive selling mistakes.

Poor Preparation

Most sellers fail to develop a marketing strategy, determine a realistic price point, and mitigate any defects or repairs before placing their homes on the market. Neglecting this crucial step may end up costing thousands of dollars when little deal breakers such as water damage or loose doorknobs rear their ugly heads.

Here’s what you need to do before you post a for sale sign on the front lawn:
• Identify your preferred methods of advertising. The best types are signage, newspaper and Internet, drive-by traffic and word of mouth. In addition, in some high-ticket areas, open houses work extremely well.
• Set a budget for each type and a timeline for implementation in your marketing plan.
• Package your home to make a good first impression by focusing on curb appeal, decluttering and home staging techniques.
• Hire a home inspector and use the recommendations to get the house into move-in ready condition. A home pre-inspection report is an excellent marketing tool as well.
• Clear any clouds on the title. If an ex-spouse or relative needs to sign a quitclaim deed, it’s easier to get it signed before there is a contract on the property.
• Use a current tax assessment or have a survey or appraisal done to determine the home’s approximate market value.
• Decide how to handle issues such as offensive odors or what to do with pets during open houses and showings.
Now that the house is ready to show, price it right.

Mispricing

If you under-price, you sacrifice profit; if you over-price, the home may take too long to sell, go stale on the market, or never sell at all.
In addition to the information from a tax assessment, appraisal or survey, you need to know:
• List price of houses for sale in your neighborhood.
• Sale prices of houses sold in the last thirty days in your area.
• The number of days comparable houses stayed on the market.
To make a realistic comparison, a good rule of thumb is to analyze homes within a one to two mile radius of your home. Understand what the term “comparable” means. Simply put, you are comparing your home with a house that is similar in location, size and square footage, style, number of bedrooms and baths, and upgrades and amenities.

Operating From Emotions

Many individuals struggle with viewing their property objectively. They may be offended by a disparaging remark by a potential buyer or reject a low offer because they are reacting emotionally rather than logically. However, you can’t put a price on, or obtain any extra value for, your sentimentality. Once you put your home on the market, it becomes a business transaction, not a home. Treat the process as you would any other business transaction.

Not Disclosing Fully

Even if the home is offered for sale as-is, there is an obligation for full disclosure, so fill out the state disclosure form completely. Since you are not an expert and you are merely expressing your opinion as a layperson, have the appropriate documentation to back up important information such as the age and condition of the roof or major repairs or renovations. When in doubt, disclose but do not elaborate.

Poor Negotiating And Sales Skills

It is easy to back yourself into a corner if you are not careful. For instance, many sellers make purchase offers on a new home without considering what will happen if they cannot sell their old home fast enough. If there is any pressure to make a fast sale, you are more likely to settle for less than your house is worth, which is an expensive mistake.
Other mistakes sellers make are:
• Failing to qualify prospects so they are only working with ready, able and willing buyers.
• Not identifying the buyer’s motivation – is it a need to buy or a desire to buy.
• Discounting the asking price too quickly.
• Rejecting offers outright instead of making a counter offer.
The bottom line to selling your house for the best possible profit is location, exposure and price. When you get those three elements right, you operate from a position of strength, and you can expect to get top dollar for your home no matter what is happening in the real estate industry.

The Greater Capital Association of Realtors most recent monthly statistics indicate that the 393 closed sales in the six county region in February was a 17% increase compared to the same month in 2009.  It did however reflect a 17.5% decrease compared to February of 2008.

Following the same trend, the first two months of this year were up 7.5% from 2009 with 784 closed sales, yet still lagged about 22% behind 2008. In addition the region experienced a 16.7% surge in new listings at 1290. Pending sales were up 13.5% to 615 and there was a 7% increase in the median sales price of homes to $187,000.

James Ader, the association’s chief executive officer commented that “It has been some time since so many indicators were positive at the same time.“  Ader and other experts agree that the up to $8000 tax credit for homebuyers helped attribute to the significant increases in the Albany real estate sales.

Both he and the association’s president, Laurene Curtin feel that despite the fact that the credit will expire in April, the real estate market will continue to improve. Though she doesn’t see consistent across the board improvements every month and not at the levels of last month, she does expect the market to slowly start rebuilding itself.

Putting your home on the market involves some work. There may be repairs to make, cleaning to do, and perhaps some painting. But one of the first and most important things you can do before putting your home on the market is to de-clutter it as much as possible.

The objective is to make the home appear open and inviting when you are welcoming prospective buyers. The reality is a clutter-free home looks more spacious. Think less is more!

The first step is to decide what items are essential for everyday living. Once you’ve established that, you can begin to sort through the rest of your things. It helps to organize items into three categories, one to keep, one to sell and one to donate.

Having a garage sale is a great way to begin your de-cluttering process. After the sale, you may wish to donate any items that didn’t sell.

Once you have decided which of the items you are keeping, it is best to pack up and store off-site your personal items like collections and photos. This allows the buyer to visualize the space being their own, and prevents them from being overwhelmed and distracted by your stuff.

De-cluttering your home can be quite a process, so make sure you give yourself plenty of time to get the job done right.

If you have a lot of things to get rid of it may be wise to consider a junk removal service. These companies specialize in residential cleanup and will remove unwanted items – from small items to old furniture, appliances, etc. – from your home. They do all of the loading and cleanup for one predetermined price.

If you are overwhelmed by the process, or have accumulated a vast inventory of items over the course of many years, you may want to check out The STACKS Organizational System. It is a step-by-step method for dealing with de-cluttering and organizing your home.

Whether you decide to tackle it on your own or with the help of a professional, begin the process as soon as you make the decision to sell your house and keep chipping away until you get the results you want. Not only will you be getting your house in perfect “show” condition, you will also be preparing to make your packing and moving experience a much lighter, organized and easier one.

You’ve received an offer on your home, now what? Remember once you accept an offer, that offer quickly becomes a legal binding contract to sell. So, before you accept any offer there are a few steps you should take to make sure the deal is in your best interest.

1. First find out if the buyer has been pre-approved for the mortgage loan. Many deals are either held up or get canceled because the buyer can’t obtain financing – thus wasting valuable time.
2. Find out if the buyers is expecting you to pay for repairs or agent commissions. Add these together and subtract that number from the offer they are proposing. This number represents the actual offer they are making.
3. Ascertain is what your absolute bottom line is. Make certain that you research your costs and do the math.
4. Once you obtain the balance of your mortgage, ask your real estate attorney to estimate closing and escrow costs you will be responsible for.
5. These numbers will determine whether you are going to profit or pay out of pocket to close the deal.
6. The offer will have an expiration date. Most buyers will give you enough time to consider the offer carefully. However, If the deadline you have been given is short, find out why. Most of the time, if the buyer feels there are other interested parties, the deadline will be shortened in hopes of getting their offer accepted first.
7. Alert any other serious, interested parties that you have an offer on the table. Multiple offers can lead to a bidding war and reward you with the best possible deal.
8. Above all, consult with the experts. Be sure to have your attorney review the contract prior to accepting it. He can fine tune it and make suggestions you may have overlooked.

All of the show’s proceed benefit the Saratoga Rotary and are distributed to community organizations, youth scholarships, and international humanitarian projects.

So with spring coming, this is a great event to get ideas for your Saratoga Homes and Gardens.

Dates, Time and Location - 2010
Friday, February 26, 5 p.m. – 9 p.m.
Saturday, February 27, 9 a.m. – 7 p.m.
Sunday, February 28, 10 a.m. – 4 p.m.
Saratoga Springs City Center on Broadway in downtown Saratoga Springs

Admission

Adults $6; kids 5-12 $1; under 5 free

It is named for Amanda Hansen of West Seneca, New York who died while sleeping at a friends house on January 17, 2009 as a result of a carbon monoxide leak from a defective furnace.

The law requires that all homes in New York State that burn fuel which could result in carbon monoxide production must have a carbon monoxide detector.

The alarm must be installed on the lowest floor of the home having a sleeping area, and must be clearly audible from all sleeping areas with the doors closed.

Carbon monoxide is produced when any type of fuel burns incompletely. Depending on the levels in the environment, it can take minutes or hours to become deadly.

Carbon monoxide is colorless, odorless and tasteless making detection of it in a home impossible without a warning device.

Symptoms of carbon monoxide poisoning can mimic that of the flu. They include fatigue, dizziness, impaired memory and judgment, headache, nausea and vomiting eventually leading to nervous system damage, cardiac trauma, brain damage, coma and death.

By the time someone realizes there is a problem they are frequently too incapacitated to get out of the home safely and get the help they need.

Under the new law homes built before January 1, 2008 can have battery-powered CO alarms. Homes built after this date must have alarm systems hard-wired into the building.

Amanda’s Law also make contractors responsible for installing a CO detector in a home when replacing a furnace or hot water tank if the home is not already equipped.

Governor Patterson and the OFPC would also like to remind homeowners that in addition to installing a CO detector, they should take the following actions to ensure they are reducing their risks and keeping themselves and their families safe.

• Test / replace detectors according to the manufacturer’s instructions
• Have a qualified technician inspect and clean heating systems, chimneys, vents and flues annually
• Examine vents and chimneys regularly. Check for rust, soot and debris as well as improper connections
• Never allow a vehicle to run in an attached garage
• Never run a fuel powered motor indoors
• Never use your homes gas oven as a heat source
• Always use barbecue grills outdoors, not in a garage or house
• Don’t forget to install smoke alarms on every level of the house and near sleeping areas

The  program is part of the stimulus bill  created by Congress. It offers up to a $8000 tax credit to first time home buyers as an incentive to boost home sales.

I know from personal experience that when you’re purchasing a home for the first time, $8000 added to your budget can make a huge difference. In fact it could make the difference between deciding to purchase and feeling like you just can’t quite swing it financially.

The article sited 3 different people from different parts of the country who took advantage of the credit. In all 3 cases, the tax credit had a huge impact on their ability to purchase a home.

Rob Logan purchased his home in October 2009. “I wouldn’t have been able to afford my house without it, it was one of the main reasons I started looking”.

More good news! The original credit expired in November, but due to the popularity of the program has been extended to April 30, 2010. There is talk of a further extension as well.

The average return on value for a remodeling project declined from 87% in 2005 to 64% in 2009. Follow these simple guidelines to ensure the maximum return on your remodeling investment.

1. Repair rather that upgrade:
Having many upgrades in your home can enhance the enjoyment of the home as well as attract buyers. However, defects caused by improper maintenance of your home can quickly become a major financial burden for you in addition to eliminating the interest of any potential buyer. No one wants own or purchase a home with issues.

By neglecting to disclose defects to your potential buyer, you are putting yourself at risk to pay a penalty. This, in addition to having to foot the bill for the repair, will only add to the time and expense of closing a potential deal.

If need be, have a home inspection. Address any problems that the report reveals. By performing routine maintenance you will ensure the comfort and safety of your home as well as making it more attractive to buyers.

2. Remodel existing space rather than adding square footage:
The current trend in real estate favors quality over quantity. A multi-use great room for example, is more desirable than a formal living room and separate family room.

Consider finishing a basement or attic. Keep an open floor plan idea in mind as you visualize reconfiguring the space you use now into more user friendly square footage.

3. Don’t over-remodel or upgrade:
When planning a project, keep the neighborhood in mind. Your amenities should be comparable to the other homes on the block, especially if you are planning on selling.

If your plans are to stay in your home for more than five years, now may be an excellent time to consider doing that home improvement project you’ve been putting off. Home improvement contractors are hungry for work and are willing to offer more competitive pricing just to keep their workers busy. Getting multiple bids may translate into a real bargain for you. But, as always, don’t base your decision solely on price. Always ask for and check references.

If you plan on moving within 3 to 5 years experts agree that you should not take on the expense of a major project. The risk is just too high that your investment, aside from necessary repairs and cosmetic work, could be lost while the real estate markets continues to struggle.

4. Think Eco friendly and Tech infrastructure:
Green features save you energy and money, as well as making the home more desirable to todays eco-friendly home buyers.

Take advantage of federal tax credits, plus local rebates and tax incentives (see dsireusa.org) by replacing worn appliances with new Energy Star appliances and adding extra wall insulation.

If you do open a wall for a construction project, consider adding extra cable and Ethernet ports. At a cost of about $80 per room, you will ensure your home will have the capability to utilize new technologies that come along.

Do some research and carefully consider your goals when planning a remodel project. Make an informed decision in order to benefit your individual situation and maximize the return on your investment.

November sales this year also beat November sales from last year.

The news was especially good because speculators had predicted a slump in December. This prediction was based on the premise that the federal tax credit for buyers was due to expire at the end of November.

The $8000 rebate, speculators feared, was a huge factor in artificially boosting November sales. They feared December numbers would crash. However, the tax credit was extended and even expanded and helped keep the local numbers balanced for December.

According to Greater Capital Association of Realtors there is evidence to suggest that the local market is stabilizing. However it does remain a buyers market, with prices flat or down slightly.

The Capital District area has been largely unaffected by the worst recession in decades and remains a good place to live and work.