Plan and Prepare to Sell Your House

Million of existing homes are sold each year, and while each transaction is different, every owner wants the same thing; the best possible deal with the least amount of hassle. Unfortunately, home selling has become a more complex business than it used to be. The home-selling process has changed.

Are you ready?
The home-selling process typically starts several months before a property is made available for sale. It's necessary to look at a home through the eyes of a prospective buyer and determine what needs to be cleaned, painted, repaired and tossed out.

Ask yourself: If you were buying this home what would you want to see? The goal is to show a home which looks good, maximizes space and attracts as many buyers as possible.

While part of the "getting ready" phase relates to repairs, painting and other home improvements, this is also a good time to ask why you really want to sell.

Selling a home is an important matter and there should be a good reason to sell; perhaps a job change to a new community or the need for more space. Your reason for selling can impact the negotiating process so it's important to discuss your needs and wants in private with the realtor who lists your home.

How do you improve your home's value?
The general rule in real estate is that buyers seek the least expensive home in the best neighborhood they can afford. In terms of improvements, this means you want a home that fits in the neighborhood but is not over-improved. Improvements should be made so that the property shows well, is consistent with the neighborhood and does not involve capital investments, the cost of which cannot be recovered from the sale.

Cosmetic improvements - paint, wallpaper and landscaping - help a home "show" better and often are good investments. Mechanical repairs to ensure that all systems and appliances are in good working condition are required to get a good price.

Ideally, you want to be sure that your property is competitive with other homes available in the community.

For more Real Estate information, email to: miriam@arubahouses.com

7 ways to financially prepare to buy a home

7 ways to financially prepare to buy a home

Many home buyers have been haunted by the problem of being able to save up enough money in order to buy a house. Since buying a house is a financial commitment, various factors have to be considered and home buyers need the opportunity to step back and assess their strategies. However, before actually going out and looking for a home, you must first have the money to pay for the house, financially support it and still be financially comfortable. A house is a lifetime asset that provides happiness, satisfaction, shelter and security which only indicates the importance of being financially ready when investing in it.

1. Factors needed for saving strategies

Aside from making every effort to save up money to buy a house, there are a few factors that you will have to incorporate into your strategies to guide you into being able to save the right amount of money before you buy the house and for any other expenses after the house has been bought.

2. Find out the total amount of money needed upfront and other associated fees

Unfortunately, down payments are not the only cash requirements when you buy a house because there are also fees such as transfer tax, notary fees and insurances. When you find out the total amount of money involved beforehand, you can save yourself the stress when you are already in the process of buying the home.

3. Your credit score

If you have a good credit score, you can get better rates and an increase on the amount of money you can borrow. This is why you must pay off any debts you may have before you begin saving up for a house or you will have a hard time getting a bank to lend you a reasonable amount of money for mortgage.

4. A 15 year or a 30 year mortgage

When you have more money to pay for your house then you can expect a short term mortgage. However, if you are unable to produce a reasonably large amount, then you will have to opt for a longer mortgage term so that the monthly payments will be easier to pay. Longer mortgage terms are usually preferred even if there is money available due to the flexible terms and payments can often be made at your own pace. Shorter mortgage terms on the other hand can help you pay off your loans in half the time with less interest involved.

5. Determine the size of the house you intend to buy

The price tag of a house will be based on its size and location, so if you want a large house with upgrades in a desirable neighborhood, you can expect a higher price tag. Determine how much you can afford and then look for a house that meets your budget even if you must compromise on certain features.

6. Funds that you can set aside in cases of emergency

Never invest all your money into buying a house as you will need a security blanket in cases of emergency such as loss of income and other expenses. So you must always have other funds set aside even after you are able to buy a house and settle in.

7. A set timeline until you are able to buy the house

Buying a house cannot be done within a short period of time if you do not have the funds. You cannot rush the process of buying a house and you cannot rush yourself to save up fast either. When you do things in a rush, you will only find yourself making poor decisions.

For more Real Estate information, email to: miriam@arubahouses.com

5 Real Estate tips for home buyers

By Miriam Engeln, blogger since 2004. www.arubaconnections.blogspot.com

Buying a house is an exciting time for most people. A fresh start in a new home brings a lot of hope and promise for the future. There are few decisions in life that are more personal than choosing the place you will call home. And although we aren't usually in a business mindset when we make personal choices in our lives, it's important to remember that your home is a business venture. After all, it is probably your single largest investment. So go ahead and get your mind into business mode for a moment and think about these real estate tips when conducting your real estate transaction.

1. Hire a Qualified "Real Estate agent"

Purchasing a home is a lot of work. Eliminate a lot of stress by hiring a professional real estate agent to arrange showings, inspections, appraisals, contracts, and negotiations. Talk to the people you trust and get recommendation of. Keep searching until you find an agent who is right for you.

2. Get Pre approved with a lender

Without a preapproval letter you are nothing more than a "wannabe" buyer; and no seller will negotiate their best deal with a "wannabe" buyer. Plus, knowing how much you'll be able to borrow from the bank will help you stay realistic when it comes to the purchase price.

3. Know the Difference between your needs versus wants

We all like to dream about our perfect home, but for most of us, our dreams don't usually equal reality. Your budget will dictate how much of your dream you'll be able to achieve, so prioritize a home's features by their level of importance. Is a three-car garage non-negotiable? Or is it more important to have a private lot? Think about your priorities and be aware that you will most likely re-prioritize several times throughout the buying process.

4. Don't look at too many homes

Many home buyers find themselves feeling overwhelmed and confused after a long day of touring homes. Sometimes you're pressed for time, but be reasonable when scheduling home tours; too many in a short period of time and everything will run together in your mind. Refer to your list of needs and wants, as a way to narrow your search.

5. Get an Inspection

Unless you are home inspector by trade, your skills will only get you so far so hire a professional inspector. A good inspector will identify problems, explain the extent of the problems, and also recommend the appropriate repairs. They can run tests to determine the status of many systems. Certain things such as a roof or electrical wiring are considered major issues and may warrant a specialized inspector all their own. These inspections cost more upfront but they can save you thousands in the long run.

making an offer

Make an Offer That Sellers Can't Refuse

With shrinking inventories, many home buyers are finding only competitive offers will win them the house they want.

1.   Be preapproved: About three or four months before home buyers even shop for a home, they should review their credit reports to make sure they are accurate and take short-term steps to improve their credit score.

Buyers then should get a bank’s preapproval. While that won’t guarantee they’ll get the loan, it shows sellers that a lender has verified the buyer’s income and credit score to determine that he/ she can afford payments on a mortgage for a certain amount.

2. Don’t lowball: Buyers may only get one chance to get the home they want in a competitive market. They may not get a second try to sweeten the deal later, so a lowball offer the first time around could cause them to lose out. Buyers should use sales prices of comparable properties in the neighborhood to submit their best offer the first time around.

3. Add earnest money: The extra deposit can show sellers how serious the buyer is. Some buyers may even double the amount that the seller requests to show their commitment in purchasing the home.

4. Keep contingencies to a minimum: Sellers prefer no contingencies, but buyers want to protect their interests too. “Offset a financing contingency with preapproval and a strong earnest money deposit. “If you have enough cash, temper an appraisal contingency by assuring sellers that if the appraisal comes in lower than the purchase price, you'll pay the difference or split it with them (up to a certain amount).”

5. Write a letter: Personal love letters about the home addressed to the sellers are winning over some hearts lately. The letters tell the seller about the buyer (e.g. “We’re relocating from ...”) and what drew the buyer to the home (e.g. “We especially love ...”).

 

Appraisals/ Inspections

What is the Difference between an Appraisal and an Inspection?

When you are getting ready to sell your home, dealing with inspections and appraisals is part of the process. Your home is now a product that is being sold and needs to be evaluated. Many people think that appraisals and inspections are essentially the same thing but there are some key differences. Each property is unique, and the appraiser relies on his general expertise and specific research to arrive at an opinion of value.

An appraisal provides valuable information for the buyer and the seller, but the appraiser’s primary mission is to protect the lender/ bank. Lenders don’t want to own overpriced property and that’s why the appraisal takes place before the lender grants final approval of the buyer’s loan.

The Appraisal Process

Appraisers use a variety of factors in their decision making. They weigh the location of the home, its proximity to desirable schools and other public facilities, the size of the lot, the size and condition of the home itself and recent sales prices of comparable properties, among other factors.

Appraisers are not interested in whether or not the house is clean but they do notice signs of neglect such as cracked walls, chipped paint, broken windows, damaged floors and inoperable appliances.

If the buyer is applying for a mortgage the appraiser must survey the physical condition of the home and disclose potential problems to the buyer. No such obligation exists for cash buyers.

If a home receives an appraisal lower than the purchase price there are some ways the purchase can still go through. The seller can reduce the purchase price or the buyer could make a bigger down payment.

How Is An Appraisal Different From An Inspection?

An appraisal isn’t a substitute for a professional home inspection in fact they have some key differences. The appraiser formulates an opinion of the property’s value for the lender, while the inspector educates the buyer about the condition of the home and its major components. The appraiser is primarily focused on the value of the home whereas the inspector keys in on the home’s condition with an eye toward both existing and potential future problems.

Today’s buyers are more cautious, and an inspection ordered by the buyer is a regular part of the real estate purchase process. Spending the fees for a home inspection can be well worth it both for peace of mind and the potential cost of trouble avoided.

You may also want to ask the inspector if you can come along during the inspection. This will allow you to be able to see the problems or potential issues that will later appear in the report.

Ask your Lender for a list of qualified home inspectors/ appraisers.

Wise investing

The prospect of buying inexpensive properties, making cosmetic improvements and flipping those homes back onto the market for a hefty profit causes many people to ponder becoming real estate investors.
And while a fraction of those who take this approach are successful, most of them have worked for other people to learn the business, have extensive experience in real estate and contracting and/or have the resources to support themselves — and cover some losses — so they can focus on flipping homes full time for a few years to get started.
For everyone else, the best way to make money in real estate is to focus on the long haul: Buy cash-flow positive properties, do due diligence before buying and keep tenants for a long time.

Learning as you go
Buying rental properties for long-term hold is likely to be a successful way to earn money in real estate. But it isn’t easy; in fact it’s a lot of hard work. Most rental property owners have horror stories of lessons learned from losing money and the hassles they’ve experienced on rental properties. But they learn as time goes on, and they start to earn consistent income. And once they do, they laugh about the past and most of them would swear they’d do the same thing over again.
Wise investing
If you make smart real estate purchase decisions and buy decent properties that are cash-flow positive, put money into improving those properties, select good tenants and work hard to keep those tenants, then you can earn a nice retirement “pension” plan.
Beware that buying decent properties is no easy task: The education is formidable, and you will feel some pain over time as mistakes you make come to light. But it can be a great long-term wealth building tool if you’re patient and stick with it.
For most people, building real estate wealth simply takes time.

10 selling secrets in Real Estate

Selling Secret #10: Pricing it right

Find out what your home is worth, then shave 10% off the price. In this current buyers market you are aiming to receive multiple offers, and buyers will bid up the price over what it’s worth. It takes courage, but it is the best strategy to sell a home in today’s market.

Selling Secret #9: Half-empty closets
Storage is something buyers are looking for and you can never have enough of. Take half the clothes out of your closet, and neatly organize it. Buyers will always open closets, so be sure to keep all your closets and cabinets clean and tidy.

Selling Secret #8: Light it up
Maximize the light in your home. After location, good light is the one thing that every buyer wants in a home. Take down the drapes, clean the windows, and change the lampshades. Do what you have to do make your house bright, it will make it more sellable.

Selling Secret #7: Play the agent field
A secret sale killer is hiring the wrong Real Estate broker. Make sure you have a broker who is totally informed. They must constantly monitor the comparable listing and know what properties are going on the market. Find a broker who embraces technology – a tech-savvy one has many tools to get your house sold.

Selling Secret #6: Conceal the critters
You might think a cute dog would warm the hearts of potential buyers, but you're wrong. Not everybody is a dog/ cat lover. Buyers don’t want to walk in a home and see a food bowl, smell the litter box or have tufts of pet hair stuck to their clothes. It will give buyers the impression that your house is not clean. If you’re planning to sell your house, keep it clean and odorless.

Selling Secret #5: Don’t over-upgrade

Quick fixes before selling always pay off. You probably won’t get your money back if you do a huge improvement project before you put your house on the market. Instead, do updates that will pay off and get you top dollar. Get fresh paint on the walls. Clean the curtains, replace door handles/ cabinet hardware, fix leaking faucets and clean the grout.

Selling Secret #4: Take the home out of your house
One of the most important things to do when selling your house is to de-personalize it. The more personal stuff in your house, the less potential buyers can imagine themselves living there. Get rid of family photos, kids toys and personal keepsakes. Arrange your furniture to best showcase the floor plan and maximize the use of space.

Selling Secret #3: The kitchen comes first
The benefits of remodeling your kitchen are endless, and the best part of it is that you’ll probably get 85% of your money back. It may be a few thousand dollars to replace countertops where a buyer may knock $10,000 off the asking price if your kitchen looks dated. The fastest, most inexpensive kitchen updates include painting and new cabinet hardware. Use a neutral-color paint so you can present buyers with a blank canvas where they can start envisioning their own style. If you have a little money to spend, buy stainless steel appliances. 

Selling Secret #2: Always be ready to show
Your house needs to be "show-ready" at all times – you never know when your buyer is going to walk through the door. You have to be available whenever they want to come see the place and it has to be in tip-top shape. Don’t leave dishes in the sink, the bathrooms sparkling and make sure there are no dust bunnies in the corners. It’s a little inconvenient, but it will get your house sold.

Selling Secret #1: The first impression is the only impression
No matter how good the interior of your home looks, buyers have already judged your home before they walk through the door. You never have a second chance to make a first impression. It’s important to make people feel welcome and safe as they approach the house. Entryways are very important. You use it as a utility space for your coat and keys. But, when you’re selling, make it welcoming by putting in a small bench, a vase of fresh-cut flowers or even some cookies.