Tips For Selling Your Home

It is a proven fact - homes that show well are more likely to sell faster and for a better price than homes that do not.
There are many things you can do to help set your home apart from the competition.

Many people don't realize that the longer a home is on the market, the less it sells for. This isn't just because you must keep lowering the price to reenergize showings. When a home buyer knows that a home has been on the market for a while, they usually assume the home owner is willing to take a lower offer because they haven't had any luck selling thus far. Furthermore, if you realize your home is not selling and decide to start working on some of the things needed to make it show better, you have already wasted valuable time on the market. You may not get a second chance to make a good impression on the swell of home buyers that is typical when you first list your home.

Investing a little time in your home before you put it on the market may be more profitable than you realize. For instance, painting the interior walls may cost you a few hundred dollars but could raise your asking price significantly more. Improving the curb appeal with a few perennials (weather permitting), making sure your grass is in tip-top shape, and painting your front door are cheap ways of making your home show well.

 

Some sellers do not see the importance in making their home non-taste specific. Many home owners insist that the bright purple living room walls will not deter home buyers because, after all, they can paint it whatever color they choose once it is theirs. However, many people are not able to envision what a space may look like with a little paint and elbow grease. Others may not be willing to spend the time and energy required to change it to a more neutral color. Like it or not, neutral sells.

 

If you have a long list of deferred maintenance, don’t decide to wait until the home inspector points them out to the buyer and deal with it at that time. Chances are the home buyer will notice many of the problems while looking at the home the first time, and it may scare them off completely. If there are a lot of “honey dos” that never got done, do them before you list rather than after.

Organizing, de-cluttering, and cleaning are essential if you want to sell your home quickly for top dollar. As soon as you decide you want to put your home on the market, get rid of the things you don't want or no longer need. Have a garage sale or donate it to charity. Make sure rooms are not overloaded with furniture. This can make a room look smaller than it actually is. Once you have downsized and organized, do some spring cleaning - even if it is not spring. Don't forget the ceiling fans!

 

One of the most underestimated aspects of selling a home is lighting. A bright and airy home not only appears larger but is more inviting and cheerful. If you have a lot of natural light, try to make sure the blinds or drapes are pulled open. Turn on all of your lights when you are expecting a showing. Yes, this may run up your electric bill, but when a home buyer walks into a dark home they have never been in and can't see, it may be difficult for them to envision living there.

 

The smell of your home is very important. While some realtors will suggest you spray air freshener in the air before a showing, I believe keeping your home clean by using furniture polish and other fresh smelling cleaners that aren't too strong is a better option. If you have the motivation and time, something that makes a home seem inviting and "homey" is the smell of fresh-baked cookies. Buy a tub of prepackaged cookie dough to keep in your fridge, and when you are expecting a showing, make a few cookies. It will make your home smell delicious! If you'd like, you could put them on a small plate with a note for the potential home buyers to help themselves to a cookie. Another idea is to take a small oven safe dish, fill it with water, cinnamon, and a chopped apple and bake it in the oven for a while before a showing. Just make sure to turn off the oven before you leave.

Don't hang around the house during showings. Many home buyers don't feel comfortable looking when the home owners are there. They may feel intrusive and will likely rush. Make sure the Realtor showing your home gives you no more than a two hour window of when the homeowners will be there. You may use this opportunity to go to the movies, take the kids to the park, visit friends, or browse the local library.

 

Never underestimate the importance of choosing the right Realtor to sell your home. Not all Realtors do the same amount of marketing for their listings. Some will have you sign a contract to insure they get a commission, slap your listing on the MLS, and call it good. Before signing with a Realtor, have them explain exactly what their marketing strategy will be. Which websites, magazines, or newspapers will your home be advertised on? Will they take pictures? Will they have Open Houses? Just because a Realtor understands the legal aspects involved in selling a home does not mean they have the skills to successfully market your home. These skills may include the ability to take good pictures, promote the selling features of your home, and advertise your home in multiple ways.

 

Last, but definitely not least, is pricing your home. Incorrect pricing is the number one reason why a home’s Days on the Market (DOM) ends up being longer than the average DOM. It is crucial that your agent does some thorough market analysis to make sure your home is priced right.

 

Living in a home that is on the market is not easy. Trying to keep it clean, smelling nice, and having to leave when you may not want to is, let's just say it, a pain. But doing these things really does help make the potential buyers feel more comfortable and more able to envision it as being somewhere they would want to call home. 

If you would like help selling your home in the Pikes Peak area, I would be more than happy to present my home marketing strategy to you. Please visit my website.

Buying Your First House? Don't Forget to Factor in All the Costs.

So, you've gotten your financial situation in order and are ready to buy a house. Do you know how much house your monthly budget can handle?

You've probably used a mortgage calculator to get an idea of the price range in which you should be looking. While that might give you a very rough idea of the homes you should consider, it shouldn't be the only budgeting you do. In addition to your down payment, there are other expenses to consider, both at closing and after your moving truck pulls up, including:

• The upfront cost of a home inspection ($300 to $400)
• Closing costs, including appraisal, loan, title and lender fees. The average closing cost on a $200,000 mortgage is $3,754, according to Bankrate's annual survey of closing costs.
• Monthly homeowners-association fees.
• Moving costs.
• Maintenance costs; credit counselors suggest putting aside 1% of your home's value annually to make needed repairs.
• Higher utility costs.
• The bigger gas, electric or water bills that come with a home rather than an apartment. You may want to call the local utility service before you buy to get an idea of what the average bill is in your area.

Other expenses that buyers don't remember to budget for are things such as curtains or blinds for their new house, a lawn mower, garage shelving and new appliances if the ones in the home are on their last legs.

It's important to be realistic about what you can afford each month and still maintain the lifestyle you want, complete with vacations, piano lessons and the occasional dinner out.

Get preapproved for a mortgage before you start shopping for a home. But just because you're approved for a certain amount, don't think you necessarily should spend that much. Banks will often qualify you for more than you should get.

Fannie Mae advises that buyers spend no more than 28% of their gross income on a mortgage payment and no more than 32% on total housing costs, including mortgage, insurance, property taxes and private mortgage insurance (PMI), which is required if your down payment is less than 20%.

So be house proud, and not house poor, by setting a realistic budget and sticking to it.

Should You Rent or Should You Buy?

Rent is at an all-time high here in Colorado Springs. Right now, it is actually cheaper to pay a monthly mortgage than to rent a similar property. Since interest on your mortgage is tax deductible, tax benefits of owning rather than renting make it even more economically attractive. However, the question of whether you should rent or buy depends on a number of factors.

If you are considering buying a home, you should verify that you are qualified for a mortgage and for how much. You should not assume you cannot qualify for a mortgage. If you have decent credit and a good employment history, do not be discouraged even if you do not have much money to put on a down payment. There are some loans that require little or no money down, and the seller will often agree to pay much of the closing costs. It costs you nothing to get preapproved and will help in the rent vs. buy decision.

How long you plan on living in your next home before moving should play a large role in deciding whether to buy or rent. Generally speaking, if you are planning on moving in a year or less, it will be cheaper to rent. You should also consider if you will have to move without much notice, as is often the case with military families. Will you have the time needed to sell your home before you move? Would renting out your home be a viable option? You can use this calculator to see if the numbers are in your favor to buy or if renting will be a better choice for the time being.

If you are planning on staying in your next home for a while, and are preapproved for a mortgage, buying a home is usually a sound investment. While rent is money that you will most certainly never see again, a mortgage in a stable economy can usually be expected to be recouped when sold. Not to mention the joy and pride of home ownership.

If you would like to look for a home, I am more than happy to help you make that dream become a reality. I can set you up with a lender that specializes in your particular circumstances. Please visit my website  or email me to see how I can help.