Thursday, November 21, 2013

7 Habits Every Home Seller Should Have

Putting your home on the market and getting it sold for a decent price is not easy. In fact, selling a home can be quite stressful. However, you can reduce your stress levels by following these highly effective habits.

1. Be Realistic

Your neighbor probably sold their house for top dollar last month, but it doesn't matter now. You didn't sell your home when the market was at its peak. Right now, your only concern should be getting your home sold for a reasonable price and that won't be possible unless you are realistic.

When selling a home, don't expect to recover every cent you spent on it. It is not always possible. So be realistic about the value of your home, the quality of your neighborhood and current market conditions. There is hardly anything that you can do to improve the neighborhood or the market. Nonetheless, you can improve the way your home looks. Make it clean and repair the parts that need to be repaired.

2. Listen to suggestions and advice

You probably don’t have much experience in selling a home; however, your agent has. A good agent sells many homes a year so they should understand the process better than you. Listen to their advice. Of course, it is nearly impossible to do everything that they suggest. Nonetheless, listen to them and do whatever you can to present and market your home in the best possible way.

3. Be Available

You don't have to be physically present during showings. In fact, the presence of the home owner may make the buyer uncomfortable and force them to rush through the process. Nonetheless, your home should be easily accessible to buyers. You must be willing to vacate the premise whenever your agent asks you to so that potential buyers can view it. This improves your chances of selling it.

4. Be Smart

Knowledge is power, so gain as much information as you can about the home buying and selling process. Of course, you are not buying, but you should still be able to know what the buyers are going through. Also understand the real estate market. If you have doubts, ask your agent to clarify them.

5. Don’t let emotion cloud reason

All of us are emotionally attached to our home. We are also proud of it and expect it to be sold for a price that is reflective of our pride. However, market conditions and location often determine the price. If you don't get the price you are asking for, you should be willing to lower it.

6. Be Reasonable

While selling a home, price shouldn't be the only consideration. You must also take into account the buyer's eligibility for a loan. If buyers request for repairs, you should consider every aspect closely. Don't risk losing a potential buyer by refusing to repair a leaky faucet or something just as trivial. That doesn't mean that you have to give into every demand. Be reasonable. That's enough.

7. Ask Questions

During the selling process you may hear many terms that you don't normally use on a regular basis. If you don't understand anything, don't hesitate to ask for clarification. 

These seven habits will not only reduce your stress levels but also increase your chances of getting a good price for your home.
To assist you in pricing your home to sell, you can get a free home valuation report from Neighborhood IQ and find out what your home is really worth.
Thinking about refinancing? You can find lenders that can help you with a refinance on your home loan. Let The Home Loan Advisor help you today!

Thursday, November 14, 2013

Budgeting Mistakes of First-time Home Buyers

The experience of purchasing your first home can be both exciting and stressful. Like in all first-time situations, the probability of committing “newbie” errors is high. This especially happens in the case of the budgeting of funds to cover all expenses before and after the house purchase.

Some typical budgeting mistakes are made by buyers going in for their first homes. Though these errors are understandable, they can prove to be quite costly. If you’re aware of them, you have better chances of avoiding them.

Lack of affordability knowledge

Many buyers envision their first home as a castle or a dream house. But a first home most often has very few features of the dreams of young home buyers. You need to have a clear idea regarding how much you can afford to spend on your home before you begin shopping.

Make it a point to invest more time in researching for suitable financing options and understanding the effect of debt ratios on mortgage approvals rather than in judging design preferences and home styles. Once you know what exactly you can afford, you’re in a better position to make a judicious choice from the options available.
Incorrect assumptions

It’s true that everyone is thrilled to get a deal. But it’s highly erroneous to assume that every foreclosed or short-sale property offers a fabulous deal. This may be true in some cases but in the real estate market, a property is only worth as much as a buyer is ready to pay for it.

Experts in the real estate field know that it’s quite likely that properties which appear to be bargains often have serious HVAC, plumbing, structural, or other problems.

Inappropriate buyer's agent

A seller's agent has the responsibility of getting the best deal in terms of the highest sale price possible for a home seller. Similarly, a buyer's agent needs to represent the buyer's interests and try to get a great deal from the buyer’s perspective.

If you pick an inappropriate buyer's agent to represent you, you could be down by thousands of dollars by the end of the transaction.

Underestimating total costs

If you do not correctly gauge the real costs associated with home ownership, you’re in trouble. When you’re staying on rent, you can call your landlord when anything goes wrong. But when you become a home owner, this option is eliminated. The complete responsbility is on you.

So even if you’re buying a brand-new house, some things may go awry and you’ve got to solve all issues yourself. You would generally need to spend money to resolve the problems because you cannot be a master electrician, plumber, and everything else yourself. So make sure you plan for repairs, maintenance and emergencies. Also, remember to budget sufficient funds to take care of moving expenses.

No contingency clause in sales agreement

Today, most standard Sales and Purchase Agreements contain contingency clauses. While sellers would prefer not to have these clauses, they are of utmost importance from the buyer’s perspective. If you do not receive the required mortgage, the purchase will not be possible.

If you do not have a clause regarding this in the agreement, you don’t have a way out and your seller can refuse to return your deposit. Also funds spent for things like land surveys, appraisals and home inspections are forever gone. So make sure you have contingency clauses in the Sales Agreement before signing on it.
Don't make the mistake of not knowing the value of the home you want to purchase! Neighborhood IQ offers a free home value report that will tell you what a house is worth so that you can budget accordingly. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.

Thursday, November 7, 2013

Top 5 Reasons Why It’s a Good Idea to Sell Your Home Now

Selling your home is a big decision. Your house is most likely one of the most expensive investments you’ve ever made, and deciding to sell involves a weighing of pros and cons. Some sellers are wary of the unstable housing market, but with the proper preparation and information, it could be the best time for you to sell your home since property is at all-time lows right now.

There is a difference between needing to sell and wanting to sell. If you must sell your house due to financial difficulties, it is entirely understandable. However, if you simply have the desire to sell, now is a great time to begin the process. Consider the following reasons why it’s a good idea to sell your house now:
Buyers are serious. There is currently a strong demand in the housing market, and buyers have cash to accommodate the market. Houses are selling at increased paces the last few years, so take advantage of this time when home buyers have the money to spend and are serious about buying.
You are having financial trouble. If you are having trouble making ends meet with your mortgage and the other costs associated with owning a home, if may make perfect financial sense to consider housing that costs less. Maybe you have too much consumer debt or you are facing events such as medical problems or divorce. Whatever the reason for your financial problems, selling your home may be just what you need right now.
You are retiring. You may have too much space than you really need, or perhaps you can’t afford the house payment because you are not working full-time anymore. You can free up some of the money that you have put into your house and use it to move to a less expensive home. Or, you may want to consider renting.
The housing inventory is low. This means that buyers have a fewer number of homes to choose from. If your home is a quality property, it is more likely to stand out among the small amount of competition.
You need to move for your job. Depending on your aspirations, you may get a promising career opportunity or promotion. Sometimes, this requires you to relocate. If you feel that it is a good move for your career financially and personally, it could be the perfect reason to sell.
Remember that selling your home takes patience and perseverance. Because there are so many properties for sale these days, it may take some time to get an offer. You should consider all offers carefully, especially if you are in a desperate financial situation. If you don’t have a strict timeline, be patient and the right home buyer will make you the appropriate offer.
When you decide to sell, you will definitely need to know the value of your home so that it can be priced accordingly. Find out worth of your home with a home value report from Neighborhood IQ. It’s absolutely free!