A Gaggle of Tips to Prepare your House for Sale

If you've ever sold a house before, you probably know that in order to be successful, you should live differently than you normally would while marketing it for sale (unless of course, you're a bit OCD and a clean freak, in which case selling your house should be a breeze once it's priced right). As a REALTOR, I want nothing more than to sell your house…and for you to want the same. Here are some tips for minimizing the torture of "being on the market" so that you can move on with your life and IN to your new diggs!

• De-clutter! Repeat until you resemble a minimalist.
        ○ This is the easiest (and free) way to prepare your home for sale. Get knick knacks, crowded closets, and storage spaces under control. Take down personal photos. If you haven't used something in over a year, pitch it.
       ○ Use closet organizers to maximize storage space. Make sure buyers can see the back of closets and cupboards. Thinning closets cabinets, and basement will help your storage spaces look larger.
       ○ If you can't part with items, rent a POD or storage unit.
• Kitchen cabinets
       ○ If you don't already have hardware for your kitchen cabinets, get some.
       ○ If they're from a different decade, update them.
       ○ This is probably the biggest bang you'll get for your buck when selling. If you're installing them, make certain that they're level...or pay to have someone install them for you.
• Carpet
       ○ Steam cleaning carpet is great for spot cleaning and reviving semi-trafficked areas
       ○ If replacing carpet, be sure to use the best quality carpet pad, which will make any carpet "cushy". Cheap carpet with a great pad is better than a pricey carpet with a cheap pad.
• Windows
       ○ Make sure they're clean
       ○ Remove heavy drapes and/or valances
       ○ The more natural light coming in through the windows, the better. If you have blinds, open them for showings.
• Basements
       ○ If there is moisture, get a dehumidifier
       ○ If there's not already a sump pump, install one
       ○ Get rid of cobwebs
       ○ Organize storage areas
       ○ Wipe down the water heater, furnace, washer, and dryer
○ Outside
       ○ Limit yard ornaments to a favored few. Too many can make yards look busy and buyers also might want them included in the purchase.
       ○ Replace broken bricks on terraces, cracked concrete patios and steps. If your deck has any broken planks, replace those as well.
       ○ Paint or stain (if needed)
              - Shutters
              - yard lights
              - flag poles
              - Mailboxes and address #'s
              - Planter boxes
              - Fences
              - Swing set or play equipment
              - Deck
       ○ Take a good look at the front of your home from the street. Look for overgrown or dead shrubs and trim/replace them with plants that are scaled to the size of your home.
       ○ Add color with a few sets of flowers around the entrance. And don't forget to mulch.
       ○ If you have a dog(s), pick up dog droppings from the yard. Buyers outside admiring your yard don't want to take that with them.
• Paint scuffed up or dirty trim, moldings, and ceilings. Bright white will make your walls "pop"!
• Neutralize colors. If any of your walls are Red, purple, or any other darker shade, rethink the color. Neutral, earth tones sell the easiest. When in doubt, call me and I'll stop over to give you some good color choices.
• Remove wallpaper. It dates the home and no two people have the same taste.
• Simple furniture rearrangement can bring new life to a tired space. Float sofas and coffee tables away from walls for a designer look. Use area rugs to anchor furniture groupings on tile or wood floors.
• Polish and wax hardwood floors to brighten and blend an old finish
• Replace screens on porches and windows. Dirty rusty, or ripped screens limit functionality to home-buyers and give the impression that the home isn't cared for as it is.
• If you have Pets, take them off-site, when possible. A barking dog or over-friendly cat can kill a showing, especially if the potential Buyer(s) has allergies.
• Clean every surface until it shines. First impressions are important!


Of course, you don't have to do ALL of these things, but decide what your house really needs and start checking things off.

Hop off "The Fence"

If you're a first time buyer who's been thinking, daydreaming, or is confused about whether or not to make a home purchase
procrastinating! I can't tell you that you need to buy a home but I CAN tell you to do yourself a favor and contact an expert in the field to figure out if you should. Find a full time REALTOR with experience working with first time buyers, and most importantly someone that you trust. Myself, for instance.

Interest rates are still suuuper low which affects how much home you can purchase (see my previous blog on affordability), there are a TON of homes to choose from, and you get eight THOUSAND dollars from the US Government (I really don't see them extending this little ditty).

It takes about 30 days to obtain financing (sometimes more) and depending on what you're looking for it can take weeks to find a home. That said, if you're interested in getting some of that hard earned money back that you've been paying the government, that ship is getting ready to sail.

Of course, homeownership isn't right for everyone and I'm not here to convince you that it is. Here are a few scenarios where you wouldn't want to purchase a home right now:

-You don't have at least 3.5% of the purchase price available for a down payment…or can't find a way to get it.
-Your credit score is below a 620. Here are some good tips that I found for improving your credit: http://www.creditsc0re.com/ Note-These are good tips but the website itself seems a bit sales pitchy. If you want an actual free copy of your credit report (score isn't included), go to www.annualcreditreport.com
-If you're a first time buyer hopping off of the proverbial fence because of the tax credit but are unsure that you'll be able to live in the house for at least 3 years.

If you still have questions or are contemplating, give me a call or e-mail with your situation and I'll be glad to help you make a sound decision. I may be a REALTOR but I am not in "sales" as so many people think. You sell clothes, computers, etc. I am a trusted advisor, excellent negotiator, educator, and a much needed helping hand for those who do decide to make what's usually the largest purchase of their lifetime. I don't take my responsibilities lightly.

Interest rates effect on affordability

I read an article this morning from the National Association of Realtors website indicating that interest rates will start to rise in the second quarter. Here's an excerpt: "April 1 will be the first day that the Federal Reserve will end its debt purchase program and allow the struggling U.S. mortgage market to operate unassisted. As a result, the Fed believes mortgage rates will rise about three-quarters of a percent to about 6 percent, Boston Fed President Eric Rosengren said Saturday."

Not a huge increase but it got me thinking. Yes, this might be bad for the real estate industry but my gut reaction was "it's about time!" Rates have been so low for so long that it seems some take it for granted. I wholeheartedly understand that not everyone is in the place where they want to or can buy a home or investment property right now. It's the flippant "I'm not worried about it...rates aren't going anywhere" attitude that rubs me the wrong way. Maybe it's said because I'm a realtor and a debate seems fun...probably because they're not able to buy anyway. But if this is truly the attitude of potential buyers out there, the only thing that will make them see the proverbial light is for interest rates to climb. I can even see a little justification to these beliefs as interest rates have been low and haven't "gone anywhere" too high in quite a long time but all good things eventually come to an end.

I was curious what the 30 year mortgage rate trend has been but had a hard time finding a graph illustrating it so I made one up myself:

(to actually see the graph, right click on picture and click "open link in New tab")

Info. source:

http://www.freddiemac.com/pmms/pmms30.htm

What does this all mean, you ask? Rates play a significant role in affordability of homes. Let's take a principle and interest only payment of $1500 per month and see what price of house it will afford you based on a 7 point rate spread (5-11%) for a 30 year fixed rate mortgage.

5% interest rate = $279K home
6% interest rate = $250K home
7% interest rate = $225K home
8% interest rate = $204K home
9% interest rate = $186K home
10% interest rate = $170K home
11% interest rate = $158K home

These are basic figures taking only interest rate and payment into account. Taxes, insurance down payment, PMI, etc. have not been calculated as they can vary tremendously. See a mortgage professional for accurate figures based on your desired monthly payment or income.

Who knows what the future holds for interest rates and I realize that we probably won't see anything near the 11% mark for awhile but a low interest rate can make the difference between a comfortable mortgage payment and being house poor, which is the point I'm really trying to illustrate.

Let's look at it another way. If the median price for the area you would like to purchase is $210,527. Assuming a 5% down payment, here are the principle and interest only payments based on a $200,000 mortgage amount:

5% interest = $1074/mo.
6% interest = $1200/mo.
7% interest = $1330/mo.
8% interest = $1468/mo.
9% interest = $1609/mo.
10% interest = $1755/mo.
11% interest = $1905/mo.

Again, these are principle and interest only payments. Taxes, insurance, down payment, PMI, etc. have not been taken into account. Here is a link to a mortgage calculator to figure what your individual payment would amount to once you know a tax and insurance figure: mortgage calculator . You will still need the help of a mortgage advisor to figure PMI (private mortgage insurance) if your down payment is less than 20%. I also recommend asking for an estimate of closing costs.

There are plenty of reasons not to purchase a home as well (job instability, potential relocation, bad credit, etc.) but for many, now is a pretty awesome time to purchase. As the Greek say, "Carpe diem!"

Tax Credit extension is finally helping move up buyers!

As you may already know, the "first time homebuyer tax credit" was extended through the end of April, 2010. The part of the credit that was added and has me even more excited is the portion that finally includes current homeowners that want to sell...and buy another home. As much as I love a 1st time buyer, I haven't seen the fairness in not letting move up buyers have a "piece of the pie" as well. Now they can...hooray!!

Here's the scoop:

1st time buyers
-Still receive $8,000 (or 10% of purchase price, whichever is less)

Move up buyers
-Now get $6500 (or 10% of purchase price, whichever is less)
-Downsizing is A-ok (ie. new purchase needn't exceed the price of the house you're selling)
-You must have lived in the home you'll be selling for 5 of the past 8 years

Both Groups:
-Must be in contract on new home by April 30, 2010
-Closing needs to occur by June 30, 2010
-Income for single buyers to be below $125,000
-Income for couples to be under $225,000

-Purchased home can't exceed $800,000

This is not a tax deduction...it's cash in your pockets!

I do realize that buying and/or selling a home is no small feat and would never try to talk someone into doing so. Buuuut, if you are already thinking about moving and your current home is in the first time buyers price range (under $225Kish), I truly don't think there will be a better time to sell...at least for quite awhile. Especially considering how low rates have been.

Whether you've got questions, want to discuss options, or just want to get on the road to your next humble abode, get in touch with me. You'll be glad you did!

E-mail: haley.weaver@kingthompson.com

Cell: 614-530-0005

Office: 614-523-0808

Fax: 614-474-8427