Buying a Foreclosed Home

Purchasing property can be costly, yet it can prove to be worth the expense in the long run. Many people have turned to renting their home, and the current economic situation isn’t likely to make matters easier. It’s probably for this reason that foreclosures are gaining such popularity.

Foreclosures are those properties whose owners couldn’t afford to make mortgage payments and which they were forced to surrender to meet their debt obligations. Foreclosures are popular because they are usually a cheaper investment.

Here are some tips to help you find a foreclosed home and begin the buying process:

Locate some foreclosed property scheduled for sale. You can find properties by scanning the classified section of a newspaper or utilizing the internet.

Utilize the services of an attorney or real estate agent. Their expertise will help you to gain an understanding of the foreclosure proceedings in the area before taking any action.

Research the property. It will prove necessary to investigate the property at hand to determine its condition and market value, taking the time to research previous ownership and any potential problems such as existing liens.

Figure out the financing. You will need to communicate with the trustee of the foreclosure sale to determine the minimum bid before figuring out how you intend to finance the property. You might consider assuming the current loan.

Attend the foreclosure auction and make an offer. It is possible to submit a sealed bid after the sale.

Purchasing foreclosures can prove to be quite complicated, especially if you are unaware of the regulations governing the area on the matter. The following are some tips to help you in the foreclosure buying process:

It is important to scrutinize your budget carefully. Too many people make rash decisions about foreclosures because of the small price tags. It is necessary to take into account various factors that might encroach on your finances, such as any repairs that might prove necessary.

Don’t make any decisions before inspecting the property yourself. It is never advisable to buy a property you haven’t seen, this allowing you to determine if the condition of the house is worth the value being presented.

Consider the neighborhood. A home is more than the house in question and the right home should exist within the right neighborhood, one expected to take factors like crime into account before making this crucial investment.

Take into account how long the house was empty. This will determine the amount of damage it has incurred and the repairs that will prove necessary.

Remember that acquiring a profit out of such an investment will take time. It is common for buyers to purchase foreclosures with the aim of selling them off quickly for a profit. However this is unlikely to happen, especially taking into account the various states quick to penalize individuals that neglect their property. If you want to buy foreclosures for purposes of selling, you’ll need to take into account the considerable time required for repairs and maintenance. 

 

How Landscaping Improves Curb Appeal

Your landscaping should add functionality and enhance the curb appeal of your property. Good landscaping can increase the resale value of your property by up to 7%. It will also facilitate a quick sale. But don't landscape with the sole objective of improving your home's value. When you landscape, your main concern should be increasing your own enjoyment of the space.

In this article, we will share the vital elements of good landscaping that adds value and provides enjoyment to the owner and potential buyers.

Trees

Trees provide shade. They keep your home cool during the hot summer months and reduce your energy bills. Trees also improve the air quality. They absorb the carbon dioxide from the air and release oxygen. They also prevent soil erosion and retain the fertility of your soil. Trees are also known to reduce stress levels. Your trees may even increase the value of your neighbor's property.

In order to add resale value, the tree has to be healthy and mature. Trees that are native to the region have higher value because they don't require much maintenance. According to the US Department of Energy, two or three trees that are properly placed can save up to $250 in annual energy bills.

By planting windbreaks, you can also reduce your heating bills.

Native plants

If you are planning to add plants, trees or shrubs to the yard, opt for the native ones. They thrive well in their natural habitat. Native plantings can increase your home's value. They are also beneficial for the wildlife because they create a natural habitat for birds and butterflies.

Rain gardens

Rain gardens featuring native trees and plants are attracting buyers because they offer protection from extreme weather that plagues many states. These gardens can prevent rain water from seeping into the basement. Rain gardens can even reduce flood insurance premium.

Outdoor lighting

Good outdoor lighting is one of the most desirable outdoor features. It is also a great landscape essential.

Thoughtful lighting enhances the aesthetic value of your house at night. It has several other benefits, too. Outdoor lighting makes your yard usable at night. It prevents falls. It also keeps intruders away. If your outdoor areas are well-lit at night, thieves will think twice before trying to break in.

Fencing

Fencing sets boundaries and creates privacy. It will keep intruders out and pets in. Fencing is unlikely to improve resale value, but it has several other benefits. However, nice fences do have some value.

Retaining walls

Retaining walls help reclaim sloped yards. They control soil erosion by slowing the flow of rain water down the slope. They also add color to vast stretches of green. If done correctly, terracing and walls can increase the curb appeal of your property and add resale value. However, walls can be quite pricey.

Walkways

Walkways welcome visitors to your home. They also increase the overall curb appeal of your property. You can use pavers or solid stone walkways. When it comes to walkways, getting too fancy can be counterproductive. On the other hand, if your walkways don't meet the standard of your neighborhood, you will see a drop in the value of your property.

How to Determine Whether Your Visitor is a Serious Buyer

You have listed your home for sale, and now you are getting a lot of visitors. But don't expect each one of them to make an irresistible offer. Many people who visit a property are not serious buyers. They simply want to take a look at the house and leave.

This can frustrate the seller, but remember that showings are a normal part of the home selling process. If you really want to sell your property, you should be ready to show it to a number of potential buyers. You must be wondering if there is a way to determine whether a buyer is serious or not. Yes, you can decide whether a buyer is serious by simply asking them a few questions before they turn up to see the house. If the answers aren't satisfactory, you can refuse the visit.

Here are the questions you need to ask:

Do you think that my home will meet your needs?

Ask the prospective buyer if they have reviewed your listing thoroughly. And if so, do they think that your home will meet their needs? If they want three bedrooms and you have only two bedrooms, chances are things won't work out.

When do you intend to move in?

You should know when the buyer intends to move in. If the buyer wants to move in quickly and you are not ready to vacate the home in six months, then it isn't a good match.

Are you looking for 'extras'?

Some buyers expect 'extras'. For example, they might assume that you will sell your home appliances with the property. If that is not the case, you should let them know. Clearly state what items are included and what items are not included in the sale.

Do you have the financial means to buy a home?

Ask the buyer if they have got a mortgage pre-approved for the price of your home. If so, it is a clear indication that the buyer is serious. Serious buyers will explore the possibilities of getting finance even before they start looking for properties. However, just because a visitor doesn't have a pre-approved mortgage, you cannot assume that they are not serious. It is possible to get a mortgage approved after making an offer.

Hold an open house

If you feel that buyer visits are consuming too much time, you can consider holding your house open once a week. Ask everybody who has expressed an interest in your property to come and see it during this occasion. An open house will attract many visitors and at least one of them will hopefully come up with a great offer.

Selling a property can be a time consuming process. Don't expect to find a buyer overnight. There are, however, a few things you can do to sell your house quickly and profitably.

First of all, make sure that your asking price is right. If you quote an astronomical sum, finding a buyer will be very difficult. You also need to ensure that your home is in good condition. Even minor issues like leaking faucets and dysfunctional light bulbs need to be fixed before listing the property for sale.

The Best Time of Year to Buy a Home

Ah spring time! When flowers are young, the air is fresh, and people are in a home buying frenzy. This frenzy is not limited to age, gender, or marital status - it grips all classes of people.  When tender tulips start showing up through melting snow in cold climates and the rain stops falling in the rainy areas, prospective buyers start hitting the streets looking for homes.

Typically during the spring, the real estate market booms throughout the country.

Reasons Home Buyers Choose Springtime

Barring some exceptions, most home buyers select spring to begin house hunting. Here are some probable reasons why:

• Winter is over and spirits are high.
• Families get together more often with long awaited holidays in March-April.
• The school year is closing soon. Buyers plan to begin moving soon after the school ends.
• There are more inventories available in the market since many sellers decide to go for spring listings.
• This is a part of pre-vacation planning. Buyers prefer to move during vacation time.

Which Day of the Year is the Worst to Buy a Home?

You can say it's the very last Friday in the month of May. Many people might think that Christmas is possibly the worst day, but that’s not true. There are very few interested buyers at that time and competition is low. People are in good spirits and feel more generous, and home sellers might extend this generosity when they accept your offer.

The time when home buyers start scouting for a home is not an issue. The time they eventually finalize the home they’re going to buy might create a problem. This often happens in April. After that, very often a closing date of the last Friday of May is decided during the signing of the purchase offer. All at once, there are a huge number of closings scheduled for that very day of May.

Why You Should Avoid the Worst Day

The reasons are plentiful, beginning with competition offered by other buyers and concluding with the actual moving in.

• From the available inventory, the best new listings are lapped up first at higher prices. Neighborhoods play an important role. Homes in good condition with appealing prices and desirable neighborhoods get many offers. Because of the competition, buyers often end up with a higher price than planned.
• There’s often a peak of pending sales in April which results in a large quantum of May closings. Regular workloads of real estate workers sometimes triple during this period and there are backlogs which might delay your closing.
• Otherwise exemplary services can be weakened by the Memorial Day holiday. Due to long weekends, workers take off for holidays and cannot process your transaction. High volumes also delay processing of loan documents.
• Higher interest rates might result from delayed closing if the locking period of your loan ends. There is a good probability of this if there is a rising demand of properties in your area and you might be stuck with higher mortgage payments.
• Since many people shift residences at May end, movers hike their rates. So your moving costs escalate. You might find it difficult to even find a mover in peak seasons. Many movers get booked well in advance for all weekends right through July.

Make sure you don’t sign the deal during the worst time to buy a home! It’s best to start your home hunting process early.

How to Prepare Your Home for Showings

Your home should look as attractive as possible when potential buyers come to see it. If you can leave a positive impression on the buyer, you will get a better price for your property.

Here are a few tips to prepare your home for showings:

First impression counts

The first impression that your home leaves on the buyer is very important. If you can leave a positive impression, the visitor may as well turn into a buyer. The first thing you need to do is to keep the front part of your home attractive. If it looks great, buyers may actually want to see the inner parts as well. If the front portion doesn't look good, very few people will bother to venture inside.

If no one visits your home even after you have erected that 'For Sale' sign in the yard, there may be something wrong with the front part.

Clean the drive way. Mow the grass and water your plants. Add some potted flowers and plants to your garden. These small details will instantly make the home more inviting.

Make it look like they can move in immediately

Buyers should be able to move in immediately. At least that is the impression you should leave on them.

Take a second look at your walls

Overly bright colors might appeal to your taste, but they can put off many a potential buyer. Use neutral colors for your walls. If you have dark paints on the walls, the rooms may feel like a cave. By contrast, light shades make your rooms more spacious and lively. Also raise those blinds to let some sunlight in.

Get rid of those foul smells

Your home should look and smell clean. Smells are as important as looks. Foul smells will drive your visitors away. So, do whatever you can to get rid of bad odor. This is particularly important if you have pets. Stale air doesn’t smell good so keep the windows open whenever possible. Let fresh air enter the rooms.

Remove clutter

Clutter makes the space look cramped, so remove all unnecessary objects. If you have too much furniture, you should remove at least a few items. Also keep your closets and cupboards clean and orderly. Visitors might look in them. Remove collectibles and personal items like photos, trophies etc.

Invest in new furnishings

If your curtains and carpets are old, you should consider renting new pieces while you are showing the house. If the furnishings are new, the home may also look new. Also consider applying a fresh coat of paint. This is imperative if there are stains on the walls.

Artwork

Hang some paintings on the walls. If you do not have any artwork, you should consider buying or renting a few pieces.  Nice paintings add a touch of sophistication to the space. They also reveal that the owner has fine tastes.

Replace faulty fixtures

If you have lights that don't work, replace them. Buyers wouldn't want to replace the fixtures, so make sure that they are in working condition.

Hire home stagers

If your budget permits it, you should consider hiring home stagers. They know how to present your home before potential buyers. They will charge a fee, but in the end you will get a bigger price for your home. Besides increasing the selling price, home staging reduces the time it takes to sell the home.

How to Sell Your Home When the Market is Down

When the market is down, the easiest way to sell your house fast is to lower the price. But lowering your asking price isn't the only solution. You can also attract buyers by adding new features that enhance the value of your home.

Here are a few tips to sell your house at the best price:

Differentiate your home from your neighbors

You can attract buyer attention by differentiating your home from your neighbor's. For example, custom additions such as a new roof, landscaping, or high grade windows can make your home stand out from the rest. These features not only make your house more attractive but also enhance its value.

 

While adding new features, it’s best to opt for designs and colors that will impress most people. Any new feature should complement your home. For example, building a patio next to your outdoor swimming pool is a great idea.

However, resist the temptation to overspend. Of course, enhancing the appearance of your home may attract buyers, but it is not always easy to recover all the costs while you sell it. There is absolutely no example to prove that the new shingles on your roof will substantially increase the value of your home. If you're planning to invest a lot of money in improving the appearance of your home, do some research and add features that are more likely to recover their costs.

If you have recently added some interesting custom features, don't forget to include them in your home's listing. 

Clean the clutter

Make sure that your home is free of clutter when potential buyers come to see it. Clutter turns off people immediately. You can make your rooms look larger by removing some furniture. Also put away personal items and family photos. And if your budget permits, you should consider hiring a stager. Be willing to shell out a few thousand dollars if you are planning to rent modern furniture for showing your house.

Sweeten the deal

You can attract more buyers by sweetening the deal. You can, for example, offer to pay the buyer's closing costs. These deal sweeteners will help you to attract more buyer interest. You can also consider offering a transferable home warranty.

Improve curb appeal

Don't overlook the need to enhance your home's curb appeal. When a buyer takes a look at your house, the first thing they see is its external appearance. So make the exterior as attractive as possible. Apply a new coat of paint before listing your home for sale. You also need to keep your garden and lawn in good condition. Appearance means a lot in real estate.

Make sure that your home is ready to move in

Make sure that your plumbing and electrical fixtures and appliances are in working order. They should also comply with existing building codes. When potential buyers visit your home, they should get the impression that the home is ready to move in.

Price it right

Your home should be priced appropriately. You should consult a real estate agent to know what comparable homes in your area are selling for.

Your home doesn't have to be the least expensive home on the street. That said; it must still be reasonably priced.

 

The bottom line

It is not exactly easy to sell your house when the market is down. However, by adding a few interesting features and keeping your home in great shape, you can improve your chances of finding a buyer.

The Pros and Cons of Selling Your Own Home

If you are selling your home, will you get an agent or are you thinking about going at it alone? The answer depends on many different aspects. The obvious reason to sell your home yourself is to save the realtor commission fee, which can be a big chunk of change. However, in most cases, a realtor can get a higher selling price than what you can get yourself.
But the question is: Do you have what it takes to successfully sell your own home? You should really weigh the pros and cons to decide if you can take on the task by yourself:

Pros:

·         You can save money. You could potentially save thousands of dollars in real estate commission fees. The extra money can help if you still owe on the house you are selling. You won’t know if you can be successful concerning “For Sale by Owner” unless you try.

·         You know the house and neighborhood. You will likely be more educated about the strengths and weaknesses about the house. You will also know your neighbors and the surrounding area pretty well, so you can talk about how great they are when showing your house. Plus, you can let prospective buyers know personally about all of the home improvements you’ve done.

·         You may already have a ready buyer. In this case, you can save the real estate agent’s full commission because much of the work is already done. Or, you can hire an agent for a reduced fee to complete the transaction.

·         You are in control. Some people simply prefer to be in charge, especially when it comes to such a big financial decision.

Cons:

·         Selling is very time-consuming. Do you have the time to sell your house? It may be difficult to schedule appointments and show prospective buyers your home if you work full-time.

·         You have to take care of all the paperwork. There is a multitude of forms and paperwork to fill out, and an agent can seamlessly keep track of all signed documents. In order to be organized, you must be willing to do the same.

·         You have to prepare your home yourself. You may be blind to some of the flaws in your house, and a fresh pair of eyes can help get your house in selling shape.

·         You might not know how to market your home. You need to do some research to learn how to use useful forms of advertising such as the internet and classified ads. You also need to hone some important marketing skills to be successful in your sale.

As stated earlier, selling your own home means that you are the boss. You won’t have to succumb to overbearing agents or deal with unprofessionalism of any kind. You can call the shots, but it also means that any mistakes that are made rest solely on you.

If you decide to sell your own home, one of the most important pieces of information for you to know is the value of your home. You can rely on a free home value report from Neighborhood IQ to learn what your home is worth in order to ask for an appropriate price.

How to Price Your Home to Sell

Homeowners want to get the best value for their home, and this involves strategic planning. Getting your home sold involves three things: location, condition and price. You can’t control the location, but you do have the ability to control the price by improving the condition. While it may seem easier to take the price you paid and simply add a markup, the resulting price probably won’t reflect the true market value of your home.

The first two weeks that your house is on the market are the most critical because it will be exposed to an audience of ready and active buyers. If your initial price is too high, you will lose these potential buyers. The listing price of your property will make or break you. Simply put, if you price your home right, the buyers will come. But you need to know what your home is worth—not what you think it is worth. Here are some tips to help you in pricing your home to sell:

Work with the market. Instead of focusing on where the market has been, focus on where it is going. Look at comparable house prices in your area to get an idea of where the market is and go from there.

Figure out the fair market value of your home. More than just the value of your home, the fair market value is the price a buyer will pay and the seller will accept. It is much more powerful than what your home is simply worth; it is the right price. The best way to determine the fair market value of your property is to use a comparable market analysis to compare your house to others who have just sold or are still on the market.

Think like the buyer. This is a great selling technique because it allows you to put yourself in the buyer’s position and ask “Would I buy this house?” Be rational and look at your home from an outside point of view.

Realism goes a long way. If you don’t own a mansion but price it and market it as one, you will have a problem getting serious offers. Be honest with yourself about your home’s condition and value.

Leave room for negotiation. As a seller, you want to get your money’s worth. Buyers don’t want to pay more than they should. The price you quote should have some leeway for negotiating. But be careful because if you quote unrealistically high, potential buyers will pass you by.

Act quickly. Adjust your price if you have received feedback that your price is too steep, and do it without hesitating.

If your home is in great condition and part of a marketing strategy but it still lacks offers, it is probably overpriced. Signs that prices are too high may include a lack of second showings, or many showings but no offers.

A little research can mean an easy selling experience while maximizing your money. Even though buyers have a separate and not equal opinion of our house’s worth, you need to know that value of your home outside of the fair market value. To assist you in pricing your home to sell, you can geta free home valuation report from Neighborhood IQ and find out what your home is really worth.