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“LET’S TALK REAL ESTATE” – Cathie Chasman, Associate Broker, CRS, GRI, ABR Coldwell Banker Upchurch Realty
EXPERIENCE IS PRICELESS! Real Estate has been my passion for 28 years. Turning 16, getting married, your first child, finally becoming an empty nester, and buying or selling a home are very important moments in your life. Give me the pleasure of being there for your special real estate needs. Call me at 706-540-6720 and let’s get started!
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HOME IMPROVEMENTS THAT PAY OFF
If you're planning to sell your home any time soon, the upgrades you make should be focused on what buyers want. Today’s buyer is looking for a home that is completely move-in ready. So the first part of your improvement budget should go to repairing anything that’s broken or worn out. Once you have your property in ship-shape, you can make a few key upgrades that will give you a competitive edge over the competition. Experts often say that “kitchens sell houses” and a beautiful, modern kitchen will go a long way with potential buyers. But you don’t have to do a complete remodel. New countertops, appliances and cabinet hardware can often give a kitchen the face lift it needs. According the Remodeling Magazine a new front door, an outdoor deck, double paned windows, upgraded bathroom and energy efficient appliances are all improvements that will pay off at sales time. Be sure to ask your REALTOR® about what upgrades buyers want in your area. **************************************************************
TIME FOR THE ANNUAL CHECKUP
Every year it’s a good idea to give your home a complete checkup. Autumn is an excellent time to do this in order to locate any brewing problems and make repairs before the winter weather sets in. Here is a list of areas that you can check without having to hire a professional: 1. Make sure your gutters are clean and secured firmly to the house. 2. Test weatherproofing and calking around windows and doors. If any calk is brittle or cracked, replace it. 3. Check for missing or curling roof shingles, which could cause extensive water damage if not replaced, and cut back any dragging tree branches. 4. Replace filters in your heating system, change the batteries in your fire alarm units, and test your carbon monoxide detector. 5. Check all your appliances for frayed cords, damaged plugs and leaking hoses. Identifying small problems now will give you the chance to make repairs easily and inexpensively before they can become more costly problems later on.
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TIMING THE MARKET
If you are waiting until the real estate market has finally touched bottom before you buy a home, just know that even the most successful real estate investors say that it’s really impossible to accurately time the market.
However, there are a few indicators that seasoned investors use to decide whether a property is a good investment. First, they look at local market conditions. If there are a lot of properties for sale that eventually sell below asking price, then you have a “buyer’s market”; which means you can negotiate a better deal at the bargaining table. Interest rates are also important. Most buyers think that the asking price of a home is the key financial issue to consider, but the interest rate is actually more significant. The difference of 1 percent doesn’t sound like much, but it could mean many thousands in savings over the lifetime of the loan.
Today, with home prices and interest rates at historic lows, experts say this is a perfect climate to buy.
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MOVING WITH CHILDREN
INCREASE YOUR HOME’S VALUE – PLANT A TREE
CREDIT SCORE UPDATE
Most home buyers don’t know about the recent changes in disclosure requirements for lenders. Now lenders must disclose how they set loan terms, if they use risk-based pricing (which means that they use borrower’s credit scores to determine the quality of a loan). They can either send you a “Risk Based Pricing Notice”, which explains that they used your credit report to determine your loan, how to get a free credit report and how to correct any errors in the report. Or they can send you the more comprehensive “Credit Score Disclosure Notice”. This also includes your credit score, the reporting agency they used and how your score compares to others, with up to five issues that negatively affected your score.
LET SPRING DO YOUR SELLING Spring is when most homebuyers find the urge to get out in the fresh air and go house hunting. Traditionally, 60 percent of American homebuyers will move to their new homes in June and July. That means they started looking in April and May. To get the attention of buyers this spring, emphasize the spirit of renewal with color and light. Give the front door a fresh coat of paint and place planters with bright seasonal flowers on the threshold.
Carry the spring theme inside with new pastel linens in the bedrooms, bathrooms and kitchen. Open your curtains to let in the sparkling daylight. Finish off your spring look with luxurious flower arrangements in every room. The cost of fresh flowers is minimal compared to the positive impact they have on buyers. Spring is the time to celebrate new beginnings. Make your home into a haven that will inspire buyers to dream of starting their own new life, right inside your front door. --------------------------------------------------------------------------------------------------------------
WIN-WIN NEGOTIATIONS
Be clear on the points that are most important to you. Do you want the seller to pay for closing costs no matter what? Do you want the buyer to close within a certain time frame? Both buyer and seller will have issues that are important to them. The best qualities to bring to the bargaining table are clarity about your priorities, the ability to listen to others needs and be flexible whenever possible, and trust that you will all come away satisfied. Your REALTOR® is an expert with negotiating real estate transactions and will be invaluable help when it comes time to working out an equitable situation.
TIME TO TAKE A WALK
Successful home sellers work closely with their REALTOR® and stay actively involved throughout the process. But there is one instance when it’s important to stay out of the action, and that’s when your REALTOR® brings a buyer over to see your property. This is sometimes difficult to do. You’ve worked so hard to get your home ready and you don’t want your REALTOR® to miss anything. But it is better for them to overlook something than for you to usher the buyer around.
Buying a home is an emotional process and your want buyers to feel completely free to look at your home critically without worrying about hurting your feelings; and your REALTOR® needs the space to work with the buyer's objections. This process is difficult if the seller is on the scene.
So when your REALTOR® calls to say they’ll be over in 20 minutes, it’s time to take a walk and leave the house in your REALTOR’s® capable hands. -------------------------------------------------------------------------------------------------------------- THE 2010 HOMEBUYER SURVEY
Every year, the National Association of Realtors® conducts a survey of homebuyers around the country. This year they sent out a questionnaire to 111,000 people who bought a home between July 2009 and June 2010.
The results of the survey are particularly helpful for both REALTORS® and home-sellers, because the most interesting findings reveal the type of people who bought homes and how they went about finding them.
In the past year, most home-buyers were first-timers (50 percent). The U.S. Government’s homebuyer tax credits, low interest rates and affordable prices all helped to initiate a whole new group of people into the joys of home ownership.
Buyers made use of the internet more than ever during the house-hunting process (74 percent, up from 42 percent in 2003). But most buyers used a REALTOR® to finally locate and purchase their new home.
While the internet continues to grow in popularity, the help of an experienced REALTOR® is an invaluable asset to completing a successful home purchase. -------------------------------------------------------------------------------------------------------------- PURCHASE OFFER STRATEGIES
In today’s real estate climate, home buyers are in an excellent position to negotiate a good deal. Here are a few tips on writing the purchase offer to your best advantage:
Have your REALTOR® bring a list of similar homes that have sold in the neighborhood over the last six months and use the information to negotiate a better sales price. You can also ask the seller to pay the closing costs.
Buyers should always get a home inspection. With the inspection report in hand, you can often renegotiate the sales price or ask for a credit against your closing costs. And don't be afraid to ask for a home warranty plan that covers appliances plus plumbing, heating and air conditioning systems.
In a buyer’s market, you can ask for extras like the washer and dryer or new carpeting, but it’s important to always keep your eye on your primary goal - owning this beautiful new home, once and for all. -------------------------------------------------------------------------------------------------------------- BEST FIRST IMPRESSIONS
When getting a home ready to sell, there is so much you need to accomplish before planting the “For Sale” sign on the lawn, that it’s sometimes easy to overlook the smaller details that make all the difference.
A buyer’s decision to choose one home over another is often based on primal emotions. Remember, they have just a few minutes to look at your property. So from the moment they step out of the car, they are making incremental judgments based on everything they see and feel. These first impressions carry a lot of weight in making their final decision.
Certain small improvements will go a long way to make a great first impression. Installing new gutters, a state-of-the-art door knob and lock, shiny brass address numbers, a new, designer front door and doormat and a trendy mailbox costs very little. But when buyers see these details, they think “This house is in great shape” and will want to go inside and see more. --------------------------------------------------------------------------------------------------------------- 5 GOLDEN DAYS
The internet has changed how Americans buy homes in surprising new ways. According to an article in the Wall Street Journal, two new studies show that most active buyers depend on email alerts to learn about new listings, so homes get 4 times as many page views in the first 5 days on the market than they do just a week later.
This doesn’t mean that your home won’t sell if you don’t get a buyer in 5 days. It just emphasizes the importance of having certain details in place before your list:
Stage your property for the professional photo session to make the best impression. Write up a detailed description of your property that highlights its best features. Most importantly, ask your REALTOR® to help you price your home strategically, based on today’s values.
In today’s internet world, house hunting is instantaneous. So before you list your property, make sure you are prepared to make the most of those first 5 golden days.
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It’s a perfect market for a buyer right now. Interest rates are at their lowest in 50 years; there is huge selection of homes to choose from; and prices are very affordable. But if you are thinking about buying a home, you need to prepare yourself before applying for a loan.
Even though interest rates are at an all-time low, lenders are only offering them to borrowers with credit scores of 720 and above, says a recent report by the National Association of Realtors (NAR). Borrowers with scores below 720 will see their APR rise accordingly, and people with scores below 620 will have a hard time getting a loan at all.
So before you apply for a loan, first find out what your FICO score is by going to www.annualCreditReport.com (it is the only government authorized source for credit reporting) and request a free credit report. If you measure below your lender’s requirements, you will need to get to work and improve your score. --------------------------------------------------------------------------------------------------------------
SMART PRICING IN 2011
HOW TO SAVE ON HOMEOWNER INSURANCE
When you buy a home, getting a professional home inspection isn’t mandatory, but it’s a very smart thing to do. The inspection report (which is about 30 to 50 pages) will give you a detailed account of the condition of all the underlying structures of a property. Buyers can use that information when it comes time to negotiate the sale. The trick is understanding the report. The language is technical, and if you don’t know what you are looking at, you may miss something important.
MANAGING YOUR MORTGAGE
Most homeowners overlook their mortgage payment as a financial tool for money management. Smart buyers know that adding even a small amount to their monthly payments can substantially reduce the term of their loan and the amount of interest they will pay over time. In fact, prepaying one full year of a standard mortgage can save thousands of dollars in interest. The key is to do it properly and to find a lender for whom prepayment is not a problem.
More and more lenders now allow buyers the option of adding an additional amount to their monthly payment that goes directly to the principal. The homeowner must clearly mark the extra payment as “to be applied to loan principal.” The amount you add will depend on your cash flow. But remember that your mortgage interest rate is probably the lowest interest loan you will find, so don't short yourself with prepayment only to run up credit card debt! -------------------------------------------------------------------------------------------------------------------- ARE YOU RELOCATING ANYWHERE IN THE USA OR EVEN THE WORLD?
Do you know a real estate professional in that area? OR - If a move is not in your future, do you know anyone who is relocating? It does not matter if the move is to or from Athens, to California from India, or from Atlanta to Valdosta!
Because I have attended local, state, and national conferences for years, I have a vast network of full-time, full-service, real estate professionals who I personally know and would be comfortable in recommending to you or your friends.
Did you know that Coldwell Banker Upchurch Realty Relocation is a member of the Cartus Broker Network, the world's largest relocation Network that has serviced MORE relocations than ANYONE! Please call me today to get the moving trucks rolling! -------------------------------------------------------------------------------------------------------------
MANUFACTURED HOMES ARE NOT MOBILE HOMES
Gone is the image of cheap construction and poor resale value that came with the typical “mobile home” of the past. Today, the manufactured home often is built with top quality materials and better construction standards than some on-site built homes, while still maintaining the cost benets they are known for.
Considering the price of new homes today, it’s not surprising that an increasing proportion of buyers are opting for a manufactured home -- one that is built o--site, usually in a factory. Typically, prices for manufactured homes range from 10 to 35 percent less per square foot than comparable site-built homes, according to a study by the Manufactured Housing Institute. This difference allows many more families to enjoy their dream of homeownership. These savings apply to resale as well as new homes.
With streamlined production methods and modern home designs in the manufactured home industry, it’s often difficult to see a difference between a site-built and factory-built new home.
The future looks bright for the manufactured housing industry. There are now about 18 million manufactured homeowners in this country – a number that will certainly increase in future years. -----------------------------------------------------------------------------------------------------------------
HOW RISKY ARE CONTINGENT CONTRACTS?
Buyers walk into your home and fall in love with it. There is one problem--they will have to sell their home before they can buy yours. Their other contains a contingency clause that makes their purchase dependent upon selling their present home.
Should you accept such an offer? Your decision should be based on several factors. Is their home being professionally marketed at this time, or are they trying to sell it themselves (a risky proposition!)? How long has it been on the market? If the house doesn't sell, can the buyers take out a bridge loan or make other arrangements to complete the purchase? How important is timing for you? Will the buyers agree to let you continue marketing your home and accept a non contingent contract (and void theirs) if their house does not sell? There should be a release clause in your contract that allows you to accept a better offer should one come along.
Contingent contracts often work out well, but you need the help of a professional to weigh the pros and cons. -----------------------------------------------------------------------------------------------------------------------
FOREIGN BUYERS WANT U.S. PROPERTIES
While many prospective American home buyers are still sitting on the fence waiting for prices to come down further, foreign buyers are actively looking for and acquiring U.S. properties believing this to be an excellent time to invest in American real estate. Prices and financing costs are lower and they are confident the market will soon turn around.
Foreign buyers are particularly targeting mid-level and luxury market properties. About 18 percent of Realtors surveyed by the National Association of Realtors report increasing interest and sales transactions from international clients. They consider property offerings in this country to be real bargains at this point when taking into account the currently weak dollar. Generally, foreign buyers are showing strong confidence in the health of the U.S. real estate market – a positive view that is still lacking with many domestic buyers.
Take a tip from our foreign friends. Now, with new home sales rising nationally, is a great time to purchase a home or other property. With interest rates still at near record low levels, there couldn’t be a better time to act before those bargain rates inevitably rise. --------------------------------------------------------------------------------------------------------------
WHEN A PROFESSIONAL MARKETS YOUR HOME
Promoting the sale of a home requires planning. When a real estate professional takes on home listing, they develop a systematic approach to selling the property.
As the homeowner, it’s essential for you to be informed about your realtor’s business plan for selling your home. Feel free to ask your realtor questions to help you understand the process. Who are the potential buyers for your particular location and price range? What forms of media will be used to advertise the listing? Will the home be promoted with multiple photos and a virtual tour of the property? How will the realtor work with other local real estate professionals?
Part of your agent’s job is to protect you by screening buyers, identifying those who are serious and pre-qualifying those who have the resources to make a credible offer. Realtors specialize in the art of communication and negotiation. They will escort buyers through your house to maintain your privacy and protect the security of your home.
Your real estate agent is your skilled collaborator in the campaign to market your home successfully. ---------------------------------------------------------------------------------------------------------------
GREAT CURB APPEAL
First impressions are important, especially when your home is on the market. Prospective buyers are strongly inuenced by what they see as they drive up in front of your house.
Before your home goes on the market, ask your Realtor what steps you should take to maximize your home's curb appeal. If your home is on the market during the summer months, be sure your yard is neatly mowed and trimmed.
An investment in owers, shrubs or mulch might also be in order at that time of the year. Any peeling paint should be scraped and repainted, and bikes or toys should be removed from the yard. When prospective buyers drive up to a house with a "shaggy" exterior, they
tend to assume that the interior may need work as well, and they may not even want to look at the house. -e time and money you spend improving your home's appearance is well spent and can help bring top dollar for your home. ------------------------------------------------------------------------------------------------------------- THE SELLER MAY PAY
You have finally saved enough for a down payment on your first home, with a little left over to buy the furniture you will need. Then you hear about additional closing costs you weren't anticipating which seem like a real setback.
One way to cover such a shortage is to make the sellers an offer that calls for them to credit you for some of the closing costs. As a rule, the sellers may pay a maximum of 3 percent of the sales price if the buyer is putting five percent down. If the buyer is making a down payment of 10 percent or more, the seller can contribute up to 6 percent of the sales price to cover the buyer's closing costs. The buyers may pay for some items, such as prepaid taxes and the first month's mortgage payment. Sellers may also contribute to paying the appraisal, points, title insurance, settlement attorney fees, state or local transfer taxes and similar items.
Keep in mind that if the credit is included in the price of the house, the appraiser will have to justify the amount, based on sales prices of similar homes in the neighborhood. --------------------------------------------------------------------------------------------------------------
ESTIMATING CLOSING COSTS
When you buy a home, you will pay "closing costs" in addition to the down payment. These costs include the loan origination fee, appraisal, title and hazard insurance, the title search, legal fees, and other charges imposed by the lender. These charges vary by state and county, but they usually represent a considerable amount of money.
Your Realtor can give you information about the closing costs at the time you begin your search for a new home. You can use this information as a guideline. When you apply for your loan, the lender is required to provide you with a "good faith" estimate of the closing costs. This figure is usually very close to the actual amount, since the sales contract will have the price and terms of your new home spelled out. Your loan officer or closing attorney will give you final figure for the certified check that is needed to close. -------------------------------------------------------------------------------------------------------------
“CLEAN” CONTRACTS
"Clean" is a term that is often used to describe an offer on a house. A "clean" offer does not refer to the price of the house, but to the terms of the agreement. If you really want a particular house, the "cleaner" you can make your offer, the better.
What are the characteristics of a clean contract? A contract is regarded to be "clean" if the buyers are paying cash or are clearly qualified for a loan, the sale isn't contingent on the sale of another home, the buyers don't ask the sellers to carry any of the financing and if the closing date coincides with the sellers' needs. A clean contract doesn't have any unusual requests for repairs or insistence that certain articles stay that would not ordinarily be included. A clean offer has an important competitive edge if you are offering less than full price or if you are in a situation where there is more than one offer on the property. --------------------------------------------------------------------------------------------------------------- IS THE FIRST OFFER THE BEST?
Your home has been listed for just a few days, and your Realtor calls with great news. The people who looked at the house last night have come in with an offer to buy it! When the agents arrive to present the offer, you are excited and nervous. As they explain the price and terms, however, you feel that the price is a little too low and that the offer contains some terms that will be either expensive or inconvenient for you to meet.
Should you respond to the offer by opening negotiations, or wait for something better? If the offer is reasonably close to your asking price, it doesn’t hurt to try to work it out! Often the first offer to come in is the best one. When a house is fresh on the market, there is usually a rush of activity and the buyers who see it during the first few days are those most likely to be the most interested. If you are fortunate enough to get an offer right away, you will probably be better off in the long run if you accept it or try to work out a compromise.
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