Important Property Tips

Key Selling Points

Just like anything that is sold, the marketing approach can be a key element in how fast and how much your home sells for. Buyers are often looking for one or two key ingredients that grab their attention. You may not be aware of it, but your home may have one of those special selling points. I am keenly aware of it! There are buyers looking for special ingredients such as open space, extra bathrooms, an in-law apartment, attached garage, home office, alarm system, near town but private, and on and on.

Finding the right selling points that fit current market conditions is vital. Creating interest among buyers and injecting excitement into the sales process helps attract buyers, especially those who are looking for homes with special qualities. These elements must be brought to the forefront quickly. I pride myself in doing this. If you want your home to stand out in the marketplace, call me.

Mineral Rights

When properties are sold, the rights to the minerals in the soil below are many times held by the previous owner either for the current value or possible future benefit. Because mineral rights are usually held as separate from the right to build or occupy a piece of real property, they are often overlooked, and unless reserved and made part of the purchase agreement, the rights do not automatically go to the buyer upon sale.

Because oil and mineral exploration is usually done far below the surface of the earth, and the extensive use of slant drilling today, oil and minerals can be taken from hundreds of feet below the surface without the dwellings on the ground being disturbed or even aware of what is going on. The grant deed at the time of sale will usually note if the mineral rights are included. It is not uncommon for sellers thirty or forty years earlier to still be in possession of the rights and any royalties from oil and minerals.

Negotiating

When either selling or buying a home, negotiating the best possible price and terms is an art, and it is one that often times takes much training and experience.

Usually, a third party, such as a real estate agent, can act as a buffer between the two principals and work out the differences that would be hard to overcome by both buyer and seller meeting face to face and not trained in negotiating. Also, someone not involved in the actual transaction can take a more distant and realistic look at the two sides and offer solutions that a buyer or seller who are emotionally involved would not think of.

Some of the largest and most sophisticated corporations in the country regularly hire negotiators for important projects because of their expertise, so it’s only natural that someone buying or selling a home, which usually represents one’s largest financial investment, would have an agent negotiating on their behalf.

Never A Better Time

The old saying goes: “There is no time like the present.” When making the decision to move up to a larger or newer home, there is no better time than right now to put your home on the market. There are some wonderful opportunities to secure that home of your dreams right now at the right price.

However, before you can seriously think about a new home, you have to do something about your present one. The best situation is to have your present home under contract or sold. Without the first event, the second event may be a difficult reality. By having the dollar figures in hand from the sale of your present home, you can better evaluate how much cash you’ll have for a down payment and how much you can actually afford to pay for the new home.

Coordinating the purchase and sale of two homes in a short time frame can be tricky. As your Realtor, I can guide you through the steps to produce a smooth sale as well as purchase.

Painting And Curb Appeal

The executive dressed in a tailored suit looks a whole lot different than he does on a weekend fishing trip. Just like the well-groomed person gets more attention, your home will get more favorable looks from buyers if it has a fresh face to it. It will probably sell for a higher price as well.

One of the most effective ways to dress up your home for sale is to put on a fresh coat of paint. Dollar for dollar, you will get more in terms of a higher selling price with new paint than with just about any other improvement you can make. Curb appeal is extremely important in attracting buyers. Old, weather-beaten paint can actually detract interest and buyers from a very nice home.

Many times, just painting the trim, doors, the eves and rain gutters is all that is needed to give a house a fresh look. Selecting contemporary colors that give a home that up-to-date look will also help in getting top dollar for your home once it goes on the market.

Do You Qualify For A Mortgage?

When buying a home, one of the most important aspects for most buyers once they have decided on their choice of a home, is meeting the lender’s requirements for obtaining the loan.

The elements that the lender will look for in qualifying a buyer for a loan is the amount of total income, long-term debt such as auto payments, installment loans and credit card payments. These amounts, along with the projected cost of repaying the mortgage and figuring monthly payments on principal, interest, taxes and insurance are all figured together and subtracted from the total income.

From there, the lender will allow a certain percentage of these costs, roughly a third, from the total income as allowable debt. This so-called ratio is how the lender qualifies a prospect for a home loan, along with credit history, savings reserves and stability of employment.

Why A Second Mortgage?

A second mortgage, which is so-called because it is recorded behind a senior or first loan and has a secondary priority, can be a very valuable tool for both buyers and sellers of homes.

Buyers can sometimes afford more home through having the seller carry back a second mortgage, and thereby enabling the purchaser to have to qualify for and secure a small first mortgage, usually from an institutional lender. Some mortgage companies and banks make second mortgages, both for purchasers and for owners to tap some of their unused equity and get cash out

For a seller willing to carry back a second mortgage, it could mean getting a higher price and a quicker sale, since doing this will expand the available pool of buyers who may not have all the cash required for a large down payment. Sometimes the willingness to carry a second in itself may bring a buyer who might have otherwise overlooked a particular piece of property.

Sell In A Hurry

Question: I am anxious to sell my home in the shortest amount of time possible. Any advice?

Answer: There are a few people who will drive by and see your sign. There are very few people who will see your ad in the short time you have available. The best way to sell your home in a hurry is to call my office. I have a ready pool of prospects. Many homes which sell in a short amount of time do so because a Realtor knows precisely the needs of a buyer he or she has been working with.

Question: My kitchen looks like a picture out of the silent movies and my bathroom would only appeal to the Ancient Mariner. Would it make more sense to remodel or “move up” to a better home?

Answer: Get an estimate from a contractor on modernizing and compare this with the cost of moving up to a better home. Kitchen and bath renovations are costly, complex and disrupting. Often, it’s better to move up to a house that already has what you want.

Appraiser And Market Estimate

Estimating the value of a home is not an exact science. Although everyone can have an opinion, the appraiser, because of training and background, is the person who is hired to give a documented report as to the market value of a piece of real estate at a given point in time.

Appraisers are hired by owners, buyers and lenders to look at real estate, compare it with like properties in the same area that have recently sold, and then give an educated opinion of its value in the current market.

Appraisers have to look at many variables when doing this, such as condition of the property, circumstances of the sale, time on the market, variables because of location and adjust for differences in square footage of the home or lot for the comparable sales. After all of these have been factored in, the appraiser then compiles a written report, usually with photographs and a detailed accounting of each property compared to the subject.

The Importance of Location

Any Realtor will tell you that the three most important factors concerning the value of a house are: “Location, Location, and Location.” Unfortunately, most home buyers ignore this important advice.

Location is especially vital when buying a house for maximum resale value. Statistics say that you will be reselling your home long before the final mortgage payment is in the mail. Therefore, take a long, hard look, not only at the present, but the future prospects for the community and immediate neighborhood.

Select a location where raw land and house values have an increasing price trend. Especially check into the zoning laws for any unfavorable change which could cause a depreciation in the value of the neighborhood and the resale price of your home in the near future.

Remember - you can remove, replace or remodel a house, but you can never change the location. So choose carefully.

Setting Selling Price

How do you set the selling price of your home? Probably the most dangerous way is to do it yourself. The asking price is, by far, the most important part of the selling process. You need expert input.

At our agency, we offer a comparative market analysis to help evaluate your property. In doing this market analysis, we walk through your house with you, often making suggestions about selling points that should be emphasized or minor changes that will enhance the sale. After this personal inspection, we will compare your property with others similar in size and character that are currently on the market or that have been sold during the past year. In effect, the proper selling price will be determined by the local market - and you’ll probably be pleased with the suggested selling price.

This market analysis is an excellent way of rationally determining your asking price. Bear in mind, however, that it’s an estimate. You have no obligation to list your property at the suggested price.

Homeowners Tax Haven

You can forget about the old, confusing IRS regulations on tax breaks when you sell your principal home. Forget about the once-in-a-lifetime exemption of up to $125,000 in profits for those over 55 years of age. Forget about having to buy or build another house within two years of the sale which cost as much or more than the one you sold in order to defer paying capital gains taxes. The new look is here and it is great for homeowners.

The latest tax law now allows homeowners to avoid paying taxes on the first $250,000 of profits in a home if they are single, or on the first $500,000 of profits if they are married at the time they sell the home.

Because a homeowner can use the exemption repeatedly, as long as he or she lives in each house for at least two years, most will never have to pay taxes on profits from home sales. This change exempts over 99% of home sales from capital gains taxes.

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