Jan
1
Staging Your Home for Selling
Filed Under real estate | Leave a Comment
Home staging is the act of preparing a private residence prior to going up for sale in the real estate marketplace. The goal of staging is to sell a home quickly, and for the most money possible by attracting the highest amount of potential buyers.
Here are some tips to help you stage your home:
When selling your home some tips for psychologically enticing a potential buyer would be; making your home look as a model home, furnished but not lived in.
Clutter is a definite no-no when you have your home up for sale. Remove unnecessary furniture, wall hangings, stacks of books/papers and other items which might give your home a cluttered look. Remember that just because a certain lock or decor appeals to you it may not be someone else’s cup of tea. Try to make the home look as open and neutral as possible.
Homes have odor and when you live in the home you are immune to that odor but new visitors can smell it. Use apple spice air freshener they work best.
Open up windows to bring as much natural light into the house as possible. Possibly consider even storing some of your furniture somewhere to help make the home appear much roomier. The more appealing and comforting you can make the home appear the better first impression you will leave on potential home buyers.
Never under estimate the power of curb appeal. Make sure spend as much or more time getting the out side of your house cleaned up as you do for the inside of the house.
If you know you will be showing your home, be sure to cut the grass, trim the bushes, and in general clean up the outside of your home. The outside of your home is the home’s first impression. The term for this is curb appeal. By increasing the curb appeal, you increase the likelihood of someone coming inside to see the rest of the home!
If you have pets make sure they are not present and any items that people associate with animals is gone. Some buyers will want a house that has not had recent animal activity in it.
A fresh coat of paint can do wonders! Neutral colors are soothing and appeal to a wide range of buyers.
Every home has a peculiar smell to visitors. To mask such smells and create a homey feeling, some real estate agents have suggested to bake some cookies or cakes in the oven.
Correct staging of a home is necessary for a quick sale. Take the advice of your realtor or hire a company to stage your home for you.
Jan
1
Refinancing
Filed Under mortgage | Leave a Comment
Paying off one loan by obtaining another; refinancing is generally done to secure better loan terms (like a lower interest rate).
In a low interest rate climate, many homeowners also refinance for a shorter loan term, so that they can pay off the mortgage on their homes sooner. If one can get a lower interest rate by refinancing, he can often refinance a 30 year mortgage with a 15 year loan with little to no increase to his monthly payment.
Remember, your situation is unique. Don’t be tricked into thinking that one particular type of refinance loan is a must have just because your friend or coworker just got “a great rate” on their latest refinance or because it was the loan your parent’s had.
Refinancing to make home improvements is one of the best ways to build value and equity in your home. Certain additions, particularly decks, kitchens and garages, as well as a fresh coat of paint, can really raise your property’s value and of course improve your quality of life. Some of these improvements can return up to 200% on the amount you borrow to invest in them, however if you do the work yourself you can create even more value, which helps your house stand out from the crowd when it finally time to sell.
Having your loan to value ratio change is often a good reason to refinance your mortgage. If the equity in your home has grown by a decent amount, a lender may consider your risk level to be lower. That can result in being able to have a lower interest rate.
Refinancing used to mean lowering your rate by two points. That simply is not true anymore. You can save money just by removing mortgage insurance or consolidating debt even at the same rate. If you are on an FHA loan you must lower your rate by at least a half a percent from fixed to fixed and by two points if you are going from fixed to adjustable.
Refinancing your mortgage has many benefits. Lowering your payment and interest rate are the obvious first reasons. However, you can also refinance for cash out to consolidate other bills and credit cards into one easy monthly payment that could save you hundreds of dollars each month. You can also use the cash out to purchase cars, home improvements, educational financing etc. With interest rates near record lows many homeowners have taken advantage of refinancing.
Jan
1
Increasing your homes value
Filed Under mortgage | Leave a Comment
There are many things you can do to increase the value of your home. You can add on to your home by having an addition built. Increasing your home from a 3 bedroom to a 4 bedroom will add value. Adding a 3rd bathroom instead of having just 2 will help increase the value of your home. These are just a few of the many things you can do to add value to your house.
If you are thinking about installing a pool it’s not wise to base that decision on increasing your home value. A pool actually does very little to the value of your home and may even deter some people from buying due to maintenance issues.
All home improvements are not created equal. Knowing the difference between “increasing your homes resale value” and “increasing the marketability of your home” is very important. Before you spend a significant amount of money improving or upgrading your home you need to ask yourself what your desired result are. If the result of your efforts is to sell your home fast in the near future then spend your money on cosmetic improvements. This can include adding “curb appeal” to your property, fresh exterior paint, a new front door, walkway or landscaping. Interior improvements may consist of updating the color scheme of a bathroom or kitchen, or tearing up old carpeting to reveal wood floors. Consult with a real estate agent several months before you decide to sell you home to find out what buyers are looking for.
When it comes to new home upgrades, there are thousands of options. That’s why choosing upgrades can be a daunting task for home buyers as they try to put their own personal style into their new home and at the same time maximize its appeal for resale. Whatever the motive, some experts say that real wood finishes are one of the best options for personalizing your space and creating a showplace that will stand out when it comes time to sell the home.
Upgrading your home to today’s standards is also a great way to increase the value of your home. Upgrades can be as subtle as appliances, to completely overhauling kitchens and bathrooms.
Here’s something that very few people think of as a way to not only increase the value of their home but of all of the homes in their community. Ask any Real Estate agent what one thing makes a certain neighborhood more desirable and costly. There are of course many things but here is one they will all tell you: schools. In the county that I live in there is one area where the homes consistently sell for 15 to 20% higher than similar homes in other areas and it is solely because of a very high ranking school district in that area. What can you do? Get yourself and your neighbors involved with your local school boards. Put pressure on your local and state political forces to demand the best public schools possible. Many homeowners who do not have school aged children do not think they need to be concerned with schools but if you enjoy high property values you have a reason.
General maintenance is a great way to help increase your homes value. If you keep things in normal working order this will prevent your home from decreasing in value.
Any improvement that results in a higher home value than the cost of the improvement is a sound investment. Traditionally, a fresh coat of paint and an updated kitchen have been the best ways to increase the value of the home. Recently, quality hardwood floors have also been sought after by potential home buyers.
When improving your kitchen one of the hottest trends right now is laying tile. This is something that can be with very little cost but it is one of the most sought after floorings on the market.
You may be able to finance these projects using a renovation or a rehabilitation loan. Ask your loan professional about available programs today.
One great way to increase the value of your home is to add square footage. The next way is to remodel the kitchen.
Other sites: Loan Officer | VA | Reduced Documentation Loans | Rehabilitation mortgage | Investor Loans | Delinquency | Stated Income Loan | Fixed-rate mortgage | Why should I refinance | Increasing your homes value | FSBO| Pay Option Arm Calculator
Jan
1
For Sale By Owner Tips
Filed Under mortgage | Leave a Comment
Tips for your Open House:
- Clean up the inside of your home. Try and remove the clutter and make your home open and welcoming, people coming through will want to pen every closed and look behind every door. Turn on all the lights and replace any low watt bulbs with higher watt bulbs. You may want to consider a fresh coat of paint.
- Bake some cookies or get a sweet smelling candle (they do have cookie scented candles). Have fresh flowers in your kitchen and/or dining room.
- See if you can get some free flyers, recently sold properties in your area and the price, loan comparison forms based on your property and asking price. A mortgage broker can help you with some of these forms. Have your own flyers ready with your home’s information (look online at another home’s listing and make sure you covered all the bases). Check and see what your state required disclosures are and have them available, Home owners disclosure, lead based paint disclosure, property condition reports, etc.
- Freshen up any landscaping; a fresh layer of mulch can make a huge improvement in appearance. Sweep up walk ways and your drive way, and remove any eye sores or clutter.
- Put on your best. It is time for your best outfit, even if it is football Sunday sweat pants and your favorite team’s jersey is not appropriate. Put on your best smile and be friendly, pretend every person you meet just offered you 25% over your asking price as a cash offer.
- Ask questions. Some people will want the grand tour and some people will just want to be left alone to poke around. Be accommodating and help those who want it.
Always answer any questions honestly. If there is an ugly patch of carpet where your dog chewed up an ink pen, let the prospective buyers know. If the roof leaks in the spring, but it’s now summer and you’ve painted over the stain, tell the prospect. Anything you misrepresent can and probably will be used against you. And of course, you would want the same honesty when you purchase.
Remember to be willing to show your home a lot. In the end its well worth it.
Lots of Mortgage Brokers have a call capture number that comes along with an attention getting sign like 100 Percent Financing. Call for 24 hour Recorded Message that they can lend you to help manage and up the traffic on calls. They automatically capture the number of the caller like caller ID and can have it sent real time by email and text message to the seller and broker for quick prequalification.
Probably the most critical component to the success or failure of a For Sale By Owner is the asking price. It must be high enough so the seller doesn’t do all the work for nothing, yet pricing too high will make it hard to generate interest in the property. Many Realtors will perform a Comparative Market Analysis even though they are not going to be listing the home for sale. They do this because they feel the seller may let the Realtor represent them on the purchase of the seller’s next home. The CMA can prove very valuable in helping the seller determine a proper asking price.
One way to prevent potential litigation for a problem you were unaware of is to hire an inspector to go through your home before you list it. That way, there will be no nasty surprises years later when the new owners discover something that began while you owned it–but didn’t disclose. You don’t have necessarily have to fix the problems, but you do have to disclose their existence.
The National Association of REALTORS estimates that nationwide thirteen percent of real estate sales are done without any involvement from an agent or broker
Be sure and take a look at local and national FSBO companies. Many can get your home listed on the MLS system for a very small fee and provide you with the documents and information you need to do the job yourself. Plus you get the added bonus of also being featured on there website. You may also want to have open house attendee’s sign a guest book with there contact information so you can follow up with them at a later date.
Most important…make sure your house is CLEAN! Potential buyers don’t want to see an inch of dust on the baseboards. If your house looks dirty, who’s to say the upkeep and necessary maintenance have been done.
The kitchen is the single most important room that sells the house. Create a spacious feeling in the kitchen by putting away small appliances, such as microwave oven, toaster, and blender. Also be sure the kitchen counter is free of personal mails, magazines and newspapers.
There can be a great win-win situation created for a FSBO and Mortgage Broker working together where the Broker is taking the phone calls for you. The Broker can determine rather quickly rather a potential buyer would be waste of time for the owner of the property by pulling credit and assessing their potential for obtaining a mortgage.
A mortgage professional can often times help you sell your home faster, by providing free marketing, and even potential qualified buyers.
Disqualifying prospective buyers on the basis of race, color, religion, sex, handicap, family status, or national origin is illegal. Discrimination can get you into a heap of legal trouble and can cost you big bucks. If in doubt, check with the Equal Housing Opportunity agency in your area.
You are attempting to sell your home yourself to avoid paying several thousand dollars in commissions. Be willing to spend some of that on advertising. Remember your home is competing for attention with those listed by real estate agents and they are putting ads in homes magazines, mailing out flyers, etc. A small 4 or 5 line ad once a week will most likely not get the job done. Establish a budget that will realistically promote the sale of your home.
Check with a title company for a FSBO kit. Many of them will provide them at no cost to encourage the seller to use them to close the loan. The kit will have a purchase agreement and other helpful information.
One effective way to get a win-win is to help someone with no down payment money on a For Sale By Owner home. The seller is more likely to agree to seller concessions when they know they are saving the realtor commission. If you find a 100% loan for the buyer and the seller will agree to 6% seller concessions, the broker can get a fair commission for playing real estate agent and directing the parties to a good title company or attorney to help with contracts and closing. This is often considerably cheaper than FHA because FHA has the mandatory up front PMI of 1.5% although the interest rate may be a little higher than the FHA rate. You might also ask your mortgage broker about companies that offer to have the PMI added to the interest rate where it is tax deductible, or have them do an 80/20 loan to avoid MI altogether.
Work with a qualified mortgage professional. It cost you nothing, yet they will help you tremendously. A mortgage professional working for the seller should pre qualify anyone who shows an interest in your home - even those who say they are already pre-qualified. This can save you countless hours of frustration dealing with people who are not qualified to purchase your home.
Finding a mortgage professional to work with in your for sale by owner listing can help you a lot. They can make flyers for your home giving different payments and scenarios for potential buyers.
Remember less is more and that also means the furniture in your home, areas that have to much furniture will appear smaller in size than reality. Remove to many personal items so potential buyers can see there own stuff fitting right in. Burn a candle to make your home smell fresh and inviting.