How long is it going to take to sell my house?

The first question sellers usually ask is, “How much will my property sell for?” And the second one is, “How long is it going to take for my home to sell”?

Realtors always say something at this point, but it’s rarely the truth, because that’s just not something that the seller wants to hear.

The truth is WE DON’T KNOW…we can’t possibly know exactly when your house is going to sell!

We do have something, though, that can help us predict with some degree of accuracy how long it could take to sell. It’s a chart called the Total Market Overview, and Keller Williams Realty—Alaska Group produces a new one every week.

The Total Market Overview chart is good for predicting the number of days on the market, and it also breaks down all the different price categories and shows us what the average market time is, inventory levels, average sales prices compared to listing prices, and much more.

Wouldn’t it be great if you knew:

1) If the home prices will move upward, stay the same, or come down?
2) If the days on the market will increase, stay the same, or decrease?
3) If a buyer’s market, a balanced market, or a seller’s market is coming?

People generally don’t know this information, or more importantly, how it will affect their plans. Even many realtors don’t know this information. The most profitable moves in real estate are planned in advance, but most folks do not plan. In fact, they don’t even speak with a realtor until they want to do something or worse, after they’ve already done something.

This next statement is absolutely worth underlining: Hire your realtor long before you intend to do anything in real estate, whether buying or selling! That way you’ll know what’s going on and what’s coming up, then let what you learned with the information dictate exactly when you should be buying or selling.

If you have any questions, feel free to email or call me on my direct line.

—–Nate

5 Important Things to do for First-time Home Buyers

You may have heard that today’s real estate market has many opportunities for first-time home buyers. Shopping around for your first home can be very exciting, but it can also become quite stressful especially if you’re unfamiliar with how the market works.

That’s why it’s important to make sure you know what to expect before you start looking. Work with a trusted real estate professional who can help you prepare yourself and guide you through the following steps:

1. Begin by taking an honest look at your finances. Working out your income and expenses and taking the time to crunch some numbers will enable you to set a realistic budget for yourself.

2. Once you’ve gotten your finances in order, start talking to lenders and mortgage brokers to make sure you can secure a loan. Ask your real estate agent to recommend lenders whom you can work with, shop around to get the lowest interest rates and the best deal possible, and make sure you understand all the fees involved.

3. Determine your criteria. This is where the process of buying a home becomes more fun, because once you’ve gotten your funding in order, you can now begin your search. Be sure to let your real estate agent know what you’re looking for in a home (location, square footage, important features such as how many bedrooms, garage, a large backyard, etc.) so that they can help you find homes that match your preferences. This will save you a lot of time and money.

4. Take notes when looking at houses. Don’t view homes without a pen, paper and camera. Write down important details and take pictures of the homes you’re interested in. Have a list of questions ready before each showing.

5. Once you’ve found the home for you, don’t hesitate. Many first-time home buyers have missed out on a great deal because they got cold feet and continued to shop around. You’ll know when you’ve found the right home, it should just feel right and your agent should be able to tell you whether it’s a good deal or not. Make an offer and be ready to negotiate. Once you’ve made an agreement with the seller, read the contract thoroughly and make sure you understand everything before you sign anything. Once again, enlist the help of your agent in explaining anything that isn’t clear to you.

Throughout the entire process, the knowledge and expertise of an experienced real estate professional will be invaluable to you, so make sure you hire someone trustworthy and reputable to help guide you through this exciting time.

 

 

Why Listings Expire and some Homes don’t Sell

Expired listings aren’t hard to understand, but they can be difficult to deal with because of the emotions they evoke. Most listing realtors feel really bad for several reasons when one of their listings doesn’t sell. They may feel bad because they feel as if they’ve let their clients down, because they may have tried many different things over the course of many months to attract buyers to no avail, and/or because they may have invested money in the marketing of a property without earning anything in return.

The fact of the matter is, though both you and your realtor may (understandably) feel bad about not selling, at the end of the day, your energy would be best spent on understanding why your home didn’t sell instead of placing the blame on anyone.

To make a long story short, the reason why your home didn’t sell is most likely because in the eyes of your potential buyers, it just wasn’t worth the price you were asking for it.

What you need to do now is decide whether you want to:
a) Forget about selling your property,
b) Make your house right for the price you’re asking, or
c) Make the price right for the house you’re offering.

Bear in mind that the major things that turn buyers off are an unrealistic asking price, a home that doesn’t show well, a home that doesn’t smell good, and a home that is too difficult to show.

These are things you and your realtor can think about and work on if you decide to keep trying to sell your home. Remember, any free market demands accountability, and what you’re offering has to be worth what you’re asking or else it won’t sell!

Ten tips to help you Sell your Home

Selling a home in a down economy can be a very challenging task. Here are ten tips you can follow to help make things easier.

Hire a good real estate professional. Before doing anything else, find yourself an experienced and reputable real estate agent. Selling your home can be a stressful experience, but an expert’s knowledge and guidance will take most of the burden off your shoulders and make the transaction go much smoother.

Clean your home from top to bottom. This should be a pretty common sense step to take. Obviously you will want to make your home as clean and inviting as possible to attract potential buyers. Don’t forget these often overlooked areas/items: windows, corners, ceiling fans, lighting fixtures, and your refrigerator.

Give your home curb appeal. Buyers often decide whether or not they like a house based on first impressions alone, so you will want to make your home look as appealing on the outside as it is on the inside. Make sure your lawn is well-maintained and properly manicured, keep the grass short, clean and clutter-free and plant colorful flowers for added appeal.

Make any minor repairs your home may need. Don’t give your potential buyers any reason to start picking at the value of your home by leaving minor repairs unfixed. These include cracked floor or counter tiles, holes in walls, leaky faucets, doors or drawers and jam, faded or peeling paint, and burned-out light bulbs.

Stage your home. Many sellers take this for granted, but a properly staged home will sell much faster and for more money than one that isn’t. Home staging is the art of making your home look bigger, brighter, more inviting and more appealing. Ask your real estate agent for tips on how to stage it yourself or consider hiring a professional.

Determine the right asking price. This is probably one of the most important things you should do besides hiring a good real estate agent. Your agent will work with you on this by providing a comparative market analysis and giving you insight on how to put a fair and competitive price on your home.

Capture initial excitement. Make sure you have taken all of the steps above before putting your home on the market, as you want to make sure it and you are completely ready. Get the most out of initial excitement that a new listing gives potential buyers.

Be flexible. Be willing to work with potential buyers to increase your chances of making a quick and profitable sale. Be open to negotiation about closing costs and repairs, and be flexible about when your agent can schedule showings.

Give out information only on a need-to-know basis. When it comes to interacting with buyers and showing your home, it’s best to leave the talking up to your agent. You have to be very careful not to divulge any information that may harm the outcome of your sale. Apart from your legal obligation to disclose information about the condition of your home and property, not much else is required for you to say.

Don’t get in over your head. Make sure you put your home on the market way before you even start looking for a new home. Don’t place an offer on your next home before you have a solid offer on the one you’re selling now. The last thing you want is to have two mortgage payments to juggle.

Hopefully these tips will make the process of selling your home easier for you and allow for a more relaxed real estate experience.

5 Simple things you can do to Update your Home

Have you ever taken a look at your home and decided that it’s in need of a makeover? Sometimes the thought of improving your home’s appearance can be a bit overwhelming; perhaps you feel that a lot needs to be done to take it from looking outdated and shabby. The truth is, there are five simple things you can do that won’t cost a lot and will make a world of difference to your home.

Give it a coat of fresh paint. This is one of the most cost-effective ways to improve the appearance of your home. A simple coat of paint will quickly make your home look fresh, brighter and newer. This applies to more than just your walls; if you have kitchen cabinets that are still in good shape but look worn out, you can simply sand them down and add a couple of coats of paint to make them look current and stylish. Take it a step further and change the handles and knobs, you can buy these at any hardware store.

Upgrade your bathrooms. Vanities, taps, hardware and even toilets are readily available at home improvement stores, don’t cost a lot and can deliver stunning results. Consider changing these items to transform the entire look of your bathrooms.

Change your lighting. All you have to do is purchase new outdoor and indoor lighting fixtures, and that can change the whole look of your home. Use softer yellow light instead of harsh white lighting to give your home a warm and classy feel.

Add curb appeal. Keep your lawn meticulously maintained and weed out your flower beds. If you don’t have any, consider adding some. Hedges or potted plants can also help bring a pop of color to your landscaping. Decorate your porches and decks with hanging plants for added visual dimension, and for a fresh twist, put a flower box filled with herbs near the kitchen window.

Consider updating your flooring. This is probably the most costly step you can take to improve your home’s appearance, but if you have the budget for it, this will definitely make your home look much better and considerably increase its market value. Hardwood or tile floors look great and can be installed yourself.

Doing even just a few of these home improvements can result in a significant difference in the overall look and feel of your home, without breaking the bank or requiring months of hard labor.

Mortgage Interest Rates are now Lower than Ever!

Thanks to a bond market rout, mortgage interest rates have hit a new low this week, says the latest Primary Mortgage Market Survey (PMMS) from Freddie Mac. This means that if you’re in the market to purchase a property, or if you are able to refinance your home, things are looking up for you.

According to Freddie Mac, mortgage interest rates are continuing to decline, with the 30-year fixed averaging 4.32 percent and marking a new low for 2011; and the 15-year fixed, 5-year ARM, and 1-year ARM all averaging new all-time record lows this week.

Freddie Mac vice president and chief economist Frank Nothaft explained the reason behind the dropping figures: traders got nervous about European debts and whether France was going to follow the U.S. and lose its AAA rating. That led investors to shift funds into U.S. Treasuries, pushing long-term yields lower.

“Further, in its August 9th Federal Open Market Committee statement, the Federal Reserve noted that economic growth so far this year had been considerably slower than it expected and that overall labor market conditions had deteriorated in recent months, leading the Committee to conclude that an exceptionally low federal funds rate should be maintained at least through mid-2013. These developments helped to ease mortgage rates lower this week,” he explained.

Dan Gjeldum, a senior loan officer with Mortgage Services Illinois based in Chicago illustrated just how good these new low interest rates are.

“Here’s an example of how low mortgage interest rates are and what we can do. If you have a single family purchase that’s closing in 30 days, and your FICO score is 740 or above, and you have escrows for taxes and insurance, the buyers would get a 3.875 percent interest rate on a 30-year fixed rate mortgage. That’s an APR of 3.903 percent on a 30-year fixed-rate mortgage!”

If there’s one thing to keep in mind, it’s that as interest rates fall lower, the cost of buying a house also drops significantly.

“Lower mortgage rates will help to maintain the high degree of home-buyer affordability in the market,” said Nothaft. “The National Association of Realtors reported that its affordability index over the past three quarters has indicated the highest affordability since the inception of the index in 1970.”

A lot of real estate professionals are now saying that for people who have been waiting for the housing crisis and interest rates to hit rock bottom–if this isn’t it, then it’s pretty darn close.

How to Stage Your Home for Sale

Beyond decorating and cleaning, home staging is an art, and has become a crucial part of the home selling process. The aim is to create a lasting first impression on potential buyers, so that your house stands out in their memory and so they can envision making it their home. If you plan to stage your home yourself before sale, there are a few things to keep in mind.

Remember that not everyone has the same taste when it comes to a house’s color palette or decorating style. Just because you love the current lime green color of your walls doesn’t mean that everyone else will, too. The key is to neutralize. If the color scheme of a home is too loud or flashy, it may make it difficult for potential buyers to visualize themselves and their belongings in the house.

Remove all clutter and excess furniture or pieces that are too big. The aim to is to show off how much space there is in your home, so you need to make sure the corners of each room are seen, and that whatever items you decide to keep on display complement the space, instead of giving viewers the impression that there isn’t enough room for things and that the house is bursting at the seams.

Pay attention to the small details and replace things like dated or worn fixtures and drapery and window treatments. These are the simplest and least costly upgrades you can make on your home, yet they can make a world of difference on the appearance of your house, and even add considerable value to it.

Don’t rush out to put your house on the market before it’s presentable. Selling your property requires strategic thinking. Identify the competition, then make your house look better than the others on the market. These days, buyers are impressed by care and attention to detail on the part of the seller, and if a house is “move-in ready”, it means less work for them and possibly a better offer for you.

Tips on Selling Your Home Profitably

In today’s “buyer’s market” real estate market conditions, homebuyers can afford to be picky and demanding about what they look for in a home. If you are planning to sell your home and hope to make the most out of it in terms of both money and satisfaction, there are a few things you will need to do.

First, you will need to make sure your home is in top condition before you sell it. You may need to make some minor repairs to ensure that everything is in order and that nothing leaks or is faulty. It is best to consult an expert before going about this. You want to make sure that you are making only cost-effective repairs that will add value to your property and make buyers want to purchase it. Calculate how much the repairs will cost and compare it with how much value it will add onto your home. Remember that today’s buyer only has a limited amount of money to spend on a home, so they will be extra careful about how they spend it. They want to make sure they are buying a property that won’t require them to spend a lot of extra money on repairs and fixing it up.

Be sure to clean your house from top to bottom before selling it. De-clutter and stage it to make it look cozier and more attractive. Statistics show that properly staged homes sell faster and for more money than homes that have not been staged prior to selling. You may choose to stage your home yourself, but consider hiring a professional home stager if you have the means, as doing so can get you the best results.

Make sure the asking price on your home is competitive with other homes on the market in your neighborhood. The asking price on a home is mainly determined by the law of supply and demand, so sellers have little to no control over this. Enlist the help of your agent to ensure accuracy.

How to Make an Offer on a Home

The truth is there really is no hard and fast rule when it comes to making offers, and no secret ingredient to making an offer that is guaranteed to be accepted by a seller. The one thing you should definitely do is to act fast. Offers can very quickly turn into contracts, so it’s best to ensure that you already have everything you need before you even make one.

Have your proposed selling price ready

It would be a good idea to make an initial offer that is around eight to ten percent below the asking price. This would leave you room to negotiate–just bear in mind that this tactic may not always work in different areas depending on the market trends. Also make sure not to go beyond your budget. It would help a great deal if you determine the maximum amount you can afford before you start to look at houses.

Have ready any concessions you want the seller to make, as well as any financing contingencies and any home inspection contingencies.

Have a clear definition of what exactly is to be included in the sale

Don’t simply assume that items such as refrigerators or other appliances and fixtures will be automatically be included. Name them specifically in your offer.

Have your financial documents ready

Specifically, your preapproval or prequalification letter, as many sellers prefer for their buyers to be preapproved or prequalified before they will even consider any offers made on their home

Finally, prepare your deposit or the amount of earnest money that will be tendered with the offer

Obviously this is very important, as you don’t want to find yourself in a situation where you’ve made an offer that was accepted by the seller but you don’t have the deposit amount to proceed with the sale!

Home Staging to Sell

How is staging a home different from preparing it for sale? While the latter mainly involves cleaning, repairs, and de-cluttering, home staging is about creating an inviting atmosphere that will appeal to buyers and help them form an emotional connection to a house. This is done through the strategic use of home decoration accessories such as artwork, plants, carpets and rugs, mirrors, lamps, and striking pieces of furniture.

Before you dismiss this as an unnecessary step in the home selling process, consider this–statistics prove that homes that have been staged prior to selling actually sell faster and for more than homes that have not.

So how does one go about staging a home? You can either stage it yourself or you can choose to hire a professional stager. If you choose to stage it yourself, some real estate agents will help show you how. It doesn’t have to cost a lot, but you will need to learn how to create a warm and inviting atmosphere that will appeal to as wide a range of buyers as possible without using a whole lot of accessories.

Professional stagers have got this down to an art. They know how arrange even sparse pieces of furniture and make the effect seem picturesque. They know how to create illusions and make homes seem brighter, bigger, warmer, and newer. They know how to highlight a home’s best features and downplay its flaws. Hiring a professional stager is a good investment in that it would cost you much less than having to reduce the selling price of your home if you can’t sell it because it doesn’t show well. Ask your real estate agent to recommend a good home stager if you are interested in hiring one.

Whether you decide to do it yourself or hire a professional, home staging has become an important part of the home selling process; and in this day and age of discriminating buyers, it could spell the difference between selling your home quickly at a higher price, and having it stay on the market for a long, long time.