Selling Your Home? This market is a Price War and a Beauty Contest!

It’s a highly competitive market for home sellers right now. More homes to compete with means that the impression your homes makes - from the curb, and on the inside - matter now more than ever. You can increase your chances of selling faster - and at today’s top dollar - by investing in a select few home improvement projects that have been shown to make a big impact on buyers.

Bad news alert: it might cost you a little time, effort and cash. The good news, though, is that the best projects for quickly increasing your home’s resale value tend to be cosmetic and fairly simple and inexpensive to do. Here are five projects with big-time return on investment for home sellers-to-be, in terms of their power to attract buyers, and to attract dollars from those buyers.

1. Painting: Adding a fresh coat of paint to ceilings and walls is a tried and true way to increase your home’s appeal to buyers. Go for white or neutral tones that help lighten your rooms. (Now is not the time to show off your fascination with fuschia and lime green.) Buyers will have an easier time envisioning how they will infuse their own personalities into your home if they’re looking at a relatively blank slate.

Painting lightens and brightens rooms, instantly removes scuffs and dings and gives every room a fresh, polished feel.

Fresh exterior paint - even if your time or cash budget limits your efforts to accents like eaves, shutters, doors and trims - is also a quick, inexpensive way to polish the look of your home from the curb.

2. Landscaping: Everything you’ve heard about curb appeal is true. First impressions matter - especially if your house is one of eight or nine a buyer has seen in one day. Buyers will be more excited to look at the inside your home if the outside looks clean, charming and inviting. Mow the lawn, trim the hedges, pull the weeds and plant some flowers, bushes or shrubs for the biggest impact - and be diligent about keeping your landscaping very well-manicured throughout the time your home is on the market.

Be sure to keep it low-key, relatively low maintenance and neutral, though. This is not the time to indulge your personal fantasies of living in an exotic paradise, unless that matches the existing look and feel of your home, nor is it the time to install a time-intensive English garden that buyers will love, but not want to take on. Think clean, simple and elegant for the biggest boost in value.

3. Cleaning and de-cluttering: Start by removing all your family photos from the walls and all sorts of tchochkes and clutter from the tops of tables, desks, dressers and counters. Buyers want to be able to envision their lives in the house, not yours. Personal items - and the visual clutter they create - have been shown time and time again to block buyers’ ability to create this vision.

Also, remember that buyers are coming to see the house and evaluate its space, not to bear witness to all the fabulous furniture that means so much to you (no matter how amazing your personal taste). Remove furniture that takes up too much space and fills up rooms. Get rid of clutter such as clothes, boxes, piles of mail and other items.

And then clean - and keep cleaning obsessively, the entire time your place is on the market. Kitchens, bathrooms and bedrooms should look unlived in when they are shown. And don't forget to clean less obvious places like windows, walls, doors and and floors, to dust off shelves and furniture, and to polish appliances.

4. Plumbing repairs and water stain/damage repair: Paying a plumber to make a few stops throughout your home can be well worth the investment. Leaky faucet in the master bathroom? Get it fixed. Does the space under your kitchen sink look like a science experiment? Leaks and water stains definitely provoke disgust and exasperation on the part of the buyers you want and need to impress. And they can be pretty cost effective to fix - ask your agent for a referral, if you need one.

5. Staging: Staging your home can make a dramatic difference in the price for which your home sells. Good staging is equal parts:

(a) removing your personal belongings and replacing it with more artwork, decor and cleaner-looking furniture,

(b) and tweaking the home’s paint, wall coverings and even landscaping to show the place in its very best light.

When done well, staging can convert your home from just another listing on a buyer’s list to the setting for a fresh, new start to the fresh, new life of their dreams. Professional stagers, in particular, have special skills and materials they use, from convincing you to get rid of a bunch of things you value (but read: junk to a buyer), to items like mirrors, plants, art work, lamps, pillows and even furniture that tells a visual story of the life buyers can fantasize about living in your home.

Talk to your agent about staging - some agents have the skill to do this on their own, while others might have a professional stager they frequently work with.

In some cases, you might want to take on even larger projects. Before you go that route, talk with a local real estate agent; they are well-positioned to know what sort of updates and features will make the most impact on local buyers. Not all major, non-cosmetic upgrades to your home will create a significant difference in the price it commands, so take advantage of your agent’s expertise as you make decisions about whichproperty preparation investments to make (and which to forego).

Selling? Waiting Until the Spring Makes No Sense

• Late last year, banks were warned that they needed to guarantee that the paperwork necessary to start a foreclosure process on a family was both accurate and complete. Since then, the banks have slowed down the foreclosure process while they re-examined their procedures. They are now confident that all the required documentation is in order. We are currently waiting on a settlement between the banks and the state attorneys general which will establish what penalties will be assessed.

Once this settlement is reached, the banks will again move forward on many homes which are currently stalled at some stage in the foreclosure process.

How many homes are we talking about?

There are millions of homes in this category. Calculated Risk quantified the situation:

“There are a large number of seriously delinquent mortgage loans in limbo waiting for this settlement. According to LPS, at the end of August there were about 1.87 million loans seriously delinquent and another 2.15 million loans in the foreclosure process. This is only down slightly from a year ago when 4.4 million loans were seriously delinquent or in-foreclosure. Once the settlement is reached, the pace of foreclosures will pick up sharply.

The pace will “pick up sharply”.

Bottom Line

As more foreclosures come to the market at discounted prices, there will be greater downward pressure on all housing values. Waiting for the spring selling season to put your house on the market may not make sense this year. The increase in demand may be overshadowed by an increased supply of distressed properties.

Madison Wisconsin Best Buy of the Week

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2011 August Home Sales Report - Wisconsin REALTORS® Association

2011 August Home Sales Report - Wisconsin REALTORS® Association.

Tips for Selling Your Home Before the End of the Year

[caption id="attachment_559" align="alignleft" width="150" caption="Tips for Selling Your Home Before the End of the Year"][/caption]

The fourth quarter of the year can cause some sellers to worry if their home hasn't sold yet. But according to Trulia.com, there is still time to sell.

Typically, many buyers are eager to move and get settled in before the school year and holidays begin but that doesn't mean you should be discouraged.

In fact, there are some key factors that may help sell your home. First remember that the number of buyers may be reduced as we head closer to the holidays. Many people simply don't want to juggle the holiday rush and house hunting.

On the other hand, there will be some serious buyers looking for a very nice holiday gift for themselves. If they're out shopping in dreary weather or nearing the holidays, it could be because they're extremely serious about making a purchase before the end of the year. With this in mind, be sure to make the most of every showing. Don't let things slide with the upkeep of your home because you are juggling selling a home, working, or taking care of the kids. Selling your home in the fourth quarter must be a priority and the closer to the beginning of the quarter the better.

When considering how long to keep your home listed through the holidays, experts suggest looking at the rates of sales activity in your market. Some areas can be pretty bleak, but that doesn't necessarily mean there's no chance of selling. Remember, that some people may even have tax reasons and need to purchase before the end of the year.

Expert staging of your home will suit you well. This is a time of year when homeowners bring out a lot of stuff that may be very appealing to them–pumpkins, turkeys, holiday and religious ornaments–but those things don't always impress buyers. In fact, they can annoy them and make the house seem cluttered. This is not to say you can't have some nice seasonally appropriate decor. However, the fourth-quarter sale requires a good strategy like using an expert stager. If there are a a reduced number of buyers seeing your home, make the most of each showing by having a spectacularly staged and clutter-free house to show off. Staging provides a competitive advantage.

Another reason this fourth quarter may see more buyers is that interest rates remain historically low. The potential threat of a rise in mortgage rates could have more buyers eager to lock into an excellent rate, even if it means a move during the holidays.

However, you can also negotiate the sale and make arrangements so that you can still stay in your home for the holidays and make the move after the first of the year. Another effect of the holidays, buyers tend to be more emotional and may spend more during this time of year. Couple that with potentially fewer homes on the market and you may have the perfect setting for an ideal sale.

Stop Renting and Buy While Homes are Most Affordable

If you're currently renting and have dreamed of owning a home, now may be the perfect time. Trulia.com is reporting that during the month of July, buying was cheaper than renting in 74% of the country's 50 largest cities.

However, in 12% of the cities, such as New York, Seattle, and San Francisco, you could rent a place for less than you could buy one. And in the rest of the cities (14%), it was about even, with renting being only slightly less than the cost of buying.

What's tipping the scale to make buying cheaper than renting? Of course, it's the declining home prices and historically low interest rates are also helping to encourage home buying. Recently, interest rates for 30-year and 15-year fixed have been hovering near 4%. Also, the increased demand for rental units is pushing rents up, making now a good time to buy as purchasing a home is cheaper than renting one in most major U.S. cities.

This is making purchasing a home enticing for those who are planning to stay for several years and have the ability to put down a downpayment of about 20 percent.

Where are the hot buying markets? Las Vegas tops the list. The S&P/Case-Shiller home price index, as reported by CNNMoney.com, shows that prices "have plunged more than 59% from their August 2006 peak."

Other markets where buying beats renting include Detroit, Michigan; Mesa, Arizona; and Fresno, California. All of these are places where the cost of a median price condo/townhouse is approximately seven times annual rent.

And as reported by CNNMoney.com, Arlington, Texas; Sacramento, California; Phoenix, Arizona; and Jacksonville, Florida, "all had buy-rent ratios of eight," according to Trulia.

New York is the highest city to rent a home (of the 50 markets surveyed). And to buy in that city would cost about 36 times as much, pushing the purchase price to about a million dollars.

If you're renting now and wondering is this the right time, it really depends on your particular circumstances. Timing the real estate market is never a perfect science. However, the indicators are strong that if you can afford to buy, today's market certainly offers many good opportunities.

Here are a few things to consider to help you make your decision.

The first is the length of time you'll stay in the home. Moves are costly and purchasing a home requires extra cash for commissions and closing costs. So, if you're not sure you can stay for a while, postponing buying might be the right choice. However, if you've been in your rental for a long time and have roots in your city, there are great deals on homes. It might be the right time for you to start paying your own mortgage instead of paying your landlord's mortgage.

How much downpayment? This is a critical concern. With stricter lending requirements, having cash to put down is a make-or-break factor in purchasing a home. Buyers often have to come up with 20% and that can be a big chunk (or even all) of a person's savings. Also, note that the money usually has to be "seasoned". In other words, the downpayment money can't just suddenly appear in your savings account only days before you decide to buy a home. Ask your real estate agent and loan officer for more details.

The cost of owning a home. Part of the thrill of owning a home is the fact that you own it. That means you're responsible for everything inside and out. Of course, planned developments and Homeowner's Associations may cover some of the outside maintenance but then you'll be paying monthly fees. When considering whether to buy or rent, one of the things many first-time buyers neglect to think about is the cost of maintenance. When appliances break; you, the homeowner, will pay to fix them. No more landlord or apartment manager to the rescue. So, if you think things through and weigh the cost of rent versus the cost of buying, you may find the cost and the increased responsibility are well worth it because along with homeownership comes the pride of making your home yours exactly as you like it.

Rates Stay Low, BUT Will Costs Go Up?

Great article by Dean Hartman on September 22, 2011

We are enjoying extremely low interest rates, for sure. With the global economy, the national economy and unemployment where they are, no one is predicting a dramatic change in rates any time soon. BUT, on Monday, the Obama Administration floated out some interesting proposals they are considering through the Acting Director of the Federal Housing Finance Agency (FHFA), Edward DeMarco. It appears that two significant changes in housing financing are on the table.

You should know that FHFA is the new regulator that is overseeing the restoration of viability of Fannie Mae and Freddie Mac. They are charged with reducing the risk on loans delivered to the GSEs in order to protect the U.S. taxpayer.

In a speech this past Monday, Mr. DeMarco mentioned two potential changes:

Increasing the role of the private sector to lessen the risk held by the public sector.

The method mentioned was increasing the insurance coverages assumed by the PMI (Private Mortgage Insurance) companies. One result could be higher insurance rates for loans where customers put less than 20% down. The second wrinkle is potentially more damaging…the idea that PMI coverage may be required on loans with 21%-25% (maybe even 30%) down! Clearly, this is an attempt to get more fee income to the MI companies to entice them to remain viable and continue to serve those with less than 20% down. Regardless, the net result is that more people will have to pay more money for private mortgage insurance. “How much?” and “To what extent?” is yet to be defined; however, more costs to more people is bad.

Adjusting fees.

Recognize that the GSEs charge fees. Explaining what they are and why they exist is a topic for a different day. Suffice to say, today, fees are fairly standard geographically speaking. Mr. DeMarco is talking about adjusting the fees (i.e., increasing them) for areas that have proven more risky. This proposal means the hardest hit areas will have the most difficult time recovering because the increased fees always get passed on to the consumer. Rather than “spread the risk”, FHFA is talking about punishing the defenseless.

The predictable outcome of these “strategies” is higher costs to the consumer which makes buying a home more expensive. As costs go up, desire to buy goes down (as does the borrower’s ability to be approved for a mortgage).

Message: Buy sooner rather than later!

Enjoy The Fall Colors

Fall is right around the corner. Click Here for The Fall Colors Report

Getting Your Home Sold

While certain tips like properly staging your space will help get your home sold no matter what the economic climate, picking a talented real estate agent is one of the most crucial assets in getting your home sold fast and for the right price.

During the summer this is especially important to consider because buyers and sellers are less available due to vacations and kids being home on summer break. If you don’t have a dedicated agent you might not receive the customer service needed to get your sale closed.

Many agents are thriving in today’s market, so an easy way to find someone well qualified is to do some research- who is winning awards in your area and what are they doing to differentiate themselves from the competition? If you know someone that has recent bought or sold a home ask them for advice, or even a referral.

Before hiring your agent ask: What was your most challenging sale, what made it so difficult, and how did you ultimately get the home sold? This will tell you if the agent has experience and if they have the tools necessary to get your home sold.

Also, get realistic comps and price your home accordingly. If your home and a similar home across the street are on the market do something to differentiate yours from theirs whether it be lowering the price or putting some extra time, and perhaps a little money, into staging it properly.

Don’t take offense if you get an offer that is low, make a counter-offer. Let go of the emotion you’ve invested in your home. Be detached, using a business-like manner in your negotiations. You’ll definitely have an advantage over those who get caught up emotionally in the situation.

Ultimately, the best way to get your home sold in any economy is to know the market, work hard, and be realistic. By carefully choosing the right agent or team to make the sale you are setting yourself up for quick success.

By Chobee Hoy

My Madison Wisconsin Best Buy of the Week

This week I am featuring this lovely listing in Nakoma at 4105 Yuma Dr. This 3 bedroom, 1.5 bath Cape Cod in the heart of one of Madison’s finest neighborhoods is as move-in ready as it gets! Beautiful hardwood floors throughout, remodeled kitchen with custom cabinets & solid surface counters. Beautiful 1940’s built-ins & trim as well as arched entries. 2 fireplaces. Formal dining. Inviting finished lower level with fireplace & wet bar. Spacious screened porch ideal for outdoor dining and entertaining! Nicely landscaped fenced yard with patio completes the package. This poplular location makes this home a tour you do not want to miss!

Additional Information

Sue's Monthly Real Estate Report for September 2011

Here is an early release of my September Real Estate Report for all my website and social media followers. #madison #real estate #bestbuy #livinginmadison #suestark Enjoy!

September Edition - Sue's Monthly Real Estate Report

My Madison Wisconsin Best Buy of the Week

Every week I will scour the MLS for “My Madison Wisconsin Best Buy of the Week”

This week I am featuring an adorable ranch home in the popular Madison West neighborhood of Valley Ridge. This REO property is in amazing condition and less than 10 years old. Priced at only $184,900 this is an amazing opportunity to purchase in this great family friendly neighborhood.

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5 Great Reasons Why Now Is The Time To Sell

Great article today from KCM. 5 Great Reasons to Sell Your House Today
http://kcmblog.com/2011/09/06/5-great-reasons-t-sell-your-house-today-2/

Have You Considered an FHA 203k Loan?

Many times when I am showing older homes that are in need of updating, kitchens, baths, flooring, lighting, you know the drill buyers walk away overwhelmed by what needs to be done and how to get the cash to do it. Many people are not familiar with the FHA 203k loan which allows a buyer to finance these types of repairs. Here is a great article today on the possibilities of an FHA 203k loan. Call today for lenders in your area.

FHA 203k Financing