Should You Sell Now or Wait for Spring?

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One of the most common questions that we get each and every year is whether a home seller should try to sell their home during the cold, winter months or wait for spring to put it on the market? There are pros and cons to every situation, but I want to give you a few things to think about that you may not have considered.

Many people believe that it is always best to list and sell a home during spring. After all, isn't that when everyone else does it? Plus, there are some negatives to selling during the winter.

For one thing, winter is the holiday season. You have Thanksgiving and Christmas, among other holidays. Many people don't want the showings during the holidays. They don't like the idea of people walking through their home with snow on their shoes. They have their holiday decorations up and don't really want anyone messing with their festive home.

Many sellers think that there are less buyers during the winter, and that is probably true. However, consider this: buyers who are looking around the holidays are serious. Why else would they be looking for a home at that time of the year? Many relocation companies move employees during the winter because they want to get things done before the end of the year. Relocation buyers are often some of the strongest purchasers you can find.

Some sellers are also under the assumption that prices go up in the spring. Unfortunately, the current real estate market does not point to the idea that prices will rise in the spring. Experts hope that they do not fall further, in fact. Waiting for prices to go up so quickly may be a dangerous game for a seller to play.

There are some absolute positives to putting your home on the market during winter. First, the interest rates are very low right now. Buyers are getting into homes for 3.75% to 4% right now. No one can predict the future, so you want to strike while the iron is hot.

Also, there are less homes on the market in winter which means way less competition for a home seller. The greater metro area had 20% less listings going into the winter months than will be true during spring.

On a good note, homes are still selling. I checked the records, and last winter through February, our team sold 60 homes! I also checked the MLS records and saw that 2,363 homes sold last year in our area. Your home only has to be ONE of them.

In short, if you don't mind the little inconveniences of selling during winter, you can reap big rewards. Call on us today to find out more about putting your home on the market the right way.

20 Things You Can Do To Get Your Home To Sell Faster

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Want to have the upper hand on your selling competition?  Follow these 20 tips and watch your house sell faster than you can say, “SOLD!”

1. Apply a fresh coat of paint – try to use neutral colors that would appeal to most palates and would easily blend with most buyers’ tastes.

2. Stage the home – a buyer ideally should be able to envision living in the space. Set things up in a way that allow fluidity and extra space because better flow will be more attractive to prospective buyers and it will also allow them to see everything there is to see in the home.

3. Remove all traces of personalization – too many personal artifacts can hinder a sale because buyers can’t see the home for what it is. Keep things clean and try to set things up as you might see a home in professional photographs.

4. Steam clean all fabric surfaces – without realizing it, many homeowners neglect to clean much-needed areas and it costs them a sale.  Grungy surfaces will be cleaned, and it will also freshen up the space plus eliminate any odors from smoking or pets.

5. Replace less-than-perfect carpet – if you can afford it replacing stained carpet is a small investment that will go a long way.

6. Fix any loose ends – there are a surprising number of small things around the house that need repairing – usually items that can pop up during the buyer’s home inspection.  By working to address these items in advance, you save lots of time.

7. Decorate using neutral colors – neutral colors allow a buyer to imagine their own color palates rather than have to attempt to see through the homeowner’s tastes.

8. Provide incentives – pay for homeowners’ insurance for a year or leave existing paid for contracts of home-maintenance so that the new homeowners can use them till the contracts end.

9. Market the property using multiple marketing tools – Deviate from the standard listing practices and move toward the use of technological advances. Engage in proactive marketing such as using YouTube, Facebook, Twitter, 360-degree panoramic videos, individual property websites, instant real-time communication with prospects and more.

10. Hire a top-producing Realtor – the person you hire as your real estate agent will be a decision that will largely impact your success.  Top-producing Realtors usually have a wide network of associates, colleagues, business and person acquaintances as well as vendors and suppliers – all very useful to sellers.

11. Spruce up the curb appeal – The way a home looks from the moment one sees it is a very important impression on the buyer.  Neaten up messy flowerbeds, get rid of weeds, make sure the grass is watered and check the function of your storm door or entry-area.

12. Put out a new welcome mat at the front door – nothing says, “buy me” more than the feeling of warm, cozy and being welcome.  A nice welcome mat is a small expense but it has a large impact as the first impression.

13. Allow easy and frequent access to your home for showing – provide prospective buyers ample opportunity to access your home.  The last thing you want is for a buyer to be interested only to lose that interest if they can’t see the home quickly.

14. Be willing to negotiate – Don’t be hung up on the price or the concessions you offered from the start.  If the feeling is right, be willing to come down a bit on price or give a little more concessions.

15. Price it right – Here is a great article on Trulia about the 7 Deadly Sins of Overpricing your property.

16. Leave in the extras – Buyers are attracted to homes that have major appliances included in the deal – simple.

17. Get a pre-sell home inspection and address any issues – A move-in read y home is clearly going to be the first choice for buyers.

18. Offer to pay part of the closing costs – it takes concessions to appease the savvy buyers of today.

19. Give your pets a new home– Pet smells is a turnoff to someone considering your home.  Consider moving it temporarily until the open house and/or showing period is over.

20. Highlight the home’s best features – If your home’s open floor plan and a great crosswind are fabulous then do your best to show them off.  It will definitely be a selling factor giving you an edge over your competitors.

Comprehensive Fall Task Checklist

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DOWNLOAD YOUR PRINTABLE FALL CHECKLIST HERE

Organize and Get a Jump on Winter

The following list of chores includes tasks that need to be done every year, though some can be every two years or so. We've tried to include everything we could think of, but depending on your home and location, you may have other chores that are equally important.

In and around the house:

- Buy and store a supply of wood. Less seasoned wood may be cheaper; let it dry this year and use it next year. Just don't burn it until it's dry! Read more information about wood stoves.

- Have your backup heat source serviced. Wood stoves and pellet stove should be checked to make sure they are in good condition and ready for another year of service. Have your chimney cleaned, especially if you use a woodstove or fireplace a lot during the cold season. Find out more about chimney maintenance.

- Clean the gutters.

- Check downspouts and splash blocks. Water should flow freely away from the house.

- Examine the roof and gutters. Make repairs yourself, or hire someone, but do it now.

- Check ridge vents and make sure they are clear of any obstructions.

- Schedule heating system service if you haven’t done it in a while.

- Check the smoke alarm and carbon-monoxide detector. Replace batteries.

- Weatherize your home. Use caulk, weather-stripping, and check for new, inexpensive ways to reduce heat loss. We have a few energy tips that might be helpful.

- Check your foundation before winter sets in. It may be too late to do anything if you find cracks or damage, but you can take a picture and document any problems you find. It will give you a point of reference next spring when you make your post-winter inspection and give you an idea of how quickly problems are progressing.

- Wander through your home and make sure that all heat vents are clear. Stuff gets moved during the summer and often vents get blocked, especially in homes without central air conditioning.

- Replace that air filter before you turn on the heat. Pick memorable date (like the first Saturday of every month) and make replacing the filter a monthly chore. Buy a season’s supply of filters. Many come in packs of three or more and you can save money as well as time.

- Add insulation. If your home needs more, start at the top and work down to get the most for your money. Most warm air leaves through the roof so concentrate your insulation there, adding extra to the walls and under floors as time and money permit.

- Remove screens, clean, and repair before putting them away. Replace with storm windows if you don't have dual-pane, low-e windows.

Images by: http://www.freedigitalphotos.net/images/view_photog.php?photogid=472

Why Sellers Should Get a Pre-List Home Inspection to Ensure Better Selling Results

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With the state of our real estate market the way it is at the moment, sellers need to do all they can to ensure that their home sells.  Average days on market figures have been on the rise especially with the turn of the season toward cooler months, typically a slow period for real estate anyway.  But if you find yourself in the position to need to sell your home now despite all these factors, the last thing you can afford is to lose your sale to other homes on the street that may have been in better condition.

A pre-list home inspection is one of the best ways to remain proactive and manage any issues that may come up with your home so there are no additional hurdles in the sale process.

“But Why Should I Pay For It If The Buyer Is Responsible For The Home Inspection Cost?”

Even though it is customary for the buyer to order a home inspection on a prospective home purchase, the reason a seller would do so is to preempt any concerns that may pop up during the appraisal and inspection process ordered by the buyer.  The benefit of being able to know in advance any safety, structural or aesthetic concerns that may hinder the sale in the future puts the sellers at an edge over others who may not have done the same.

Being Proactive Rather Than Reactive

As a seller if you are actively making an effort to present your home in the best condition possible it only demonstrates your flexibility and willingness to accommodate buyers.  Today’s buyers are definitely more savvy and they know they have the upper hand in many cases so when they come across a seller that is willing to go the extra mile to make sure nothing goes wrong it only further solidifies the sale.  Not only that, what you do with the results of the home inspection is what really counts.  Proactively correcting problems that show up in the inspection is what needs to be done.

“If I’m Selling, Why Do I Need To Spend Money On The House?”

Too many times a seller will be daunted by a few dollars needing to be spent to fix up the house or bring it up to par and in presentable condition.  In actuality, spending only $200 on cosmetic things like a coat of paint or professional carpet cleaning is a small investment that will yield bigger returns when yours is the home that sells on the street.  Keep in mind that for you it is only $200 but it saves the buyer the hassle of doing the repairs or fixes and also they may not see the repairs as $200 worth during negotiations.  In fact, many buyers will try to squeeze out as much as ten times more if they can.  What better than to remove the ammunition from the buyer’s pricing gun when it comes time for negotiations? It is much better for the seller to be able to fix problems rather than to incorporate them into price.
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At the end of the day, by being just a little proactive rather than reactive you can avoid needing to defend issues that may come up during a buyer’s home inspection process, and end up netting thousands of dollars more on the sale of your home.

Better Prepared People, Walk Out With Better and Faster Results

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Prequalifying for a mortgage is a step that has almost become a necessity these days.  As the market continues to be a soft one, where buyers definitely have the upper edge, there is definitely some buying competition out there.  One way to have an extra edge is to show up with a prequalifying letter from your mortgage lender.   What do you need to take with you to the lender when seeking prequalification?

Two, Two and Two

Most lenders require two years of tax returns, two years of business tax statements and two months of bank statements.  If you are not self-employed, then instead of the business tax statements, it would be the previous two months’ paystubs.  As mentioned in the video, some mortgage lenders require just 30 days of bank statements and things can change here and there from one lender to the next.

Be prepared to asked for additional information – in fact, if at all possible, take whatever possibly relevant documentation that you feel may help you to demonstrate your ability to manage a mortgage and your financial viability.  This could mean evidence of other liquid assets, reporting other forms of income that may or may not be showing on the previous years’ tax returns, or anything else that might be useful.  You will need to provide your driver’s license at the time of applying for a mortgage prequalification too.

Full and Complete Documentation

If you provide the bank with incomplete documentation, it will only end up delaying your prequalification process.  When submitting tax documents, be sure to include the entire tax return, with every schedule, worksheet and attachment that was sent in to the IRS.  This can serve to avoid the need for a 4506t audit, which would only further delay the process – either now, or down the line.

Similarly, be sure to provide official bank statements rather than something pulled from the Internet.  It will be helpful when the statements clearly indicate that you are the owner of the account.
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All in all, the entire process can be a long and drawn out one especially in light of recent mortgage processing guidelines tightening.  As long as you are prepared to provide the lender whatever information may be necessary and are willing to be patient if it takes longer than expected at times, you can be on your way to owning a home, despite being an independent contractor or self employed person!

What You Need To Do Before Setting Out to Purchase a New Home

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It is a very exciting time to be buying a home, especially these days when the rates out there are so low that the cost of borrowing money is more than half it was just a few years ago. Couple that with housing prices that have not been this low in decades and rising inventory levels and it is a buyer’s dream scenario you do not want to miss. Here are a few things you should do to prepare for buying a new home:

Know What Your Purchase Power Is

Understanding the scope of your purchasing power is an important part of being able to effectively find a home that is right for you and within your means. Not only will it help to know what your price cap is on homes you can search but it will also be beneficial to have an idea of the type of property you can afford.

Obtain a preapproval from at least one lender, so that you can confidently view homes that are within your reach. It would also be a good idea to meet with your Realtor before seeking preapproval with a lender to determine what you feel your limit is, based on estimated monthly payments, including tax, title, insurance and everything else. Remember, preapproval and prequalification is not the same thing.

Identify the Things That Matter Most

If you can identify exactly the things that matter most to you in the purchase of your property, it will be easier to weed out the ones you come across that do not fit the bill. Though there is always breathing room and the capacity for some flexibility, you should know the basic requirements of you and your family and put them on paper – the “must haves”. Make a separate list of “would like to haves” and finally, compile a list of things that would be a luxury.

Once you have an idea of what you need, want and would love to have, make an appointment with your Realtor to further discuss the things on your list. Since real estate agents deal with potential homebuyers very frequently, they may be able to shed light on some areas you may not have considered. Conversely, they may be able to provide much-needed clarification on things you may not have thought of such as dealing with any unrealistic expectations you may have with your price point, for example.

Decide On a Bottom Line

It is a good idea to know what your bottom line is in terms of both price ceiling and flexibility with amenities and features of the home. For example, if you have listed “swimming pool” as one of your “would like to have” items then be prepared to expect a premium in price to be able to get what you want. How willing are you to forego the pool in exchange for ample living space? Would it be acceptable to have a smaller kitchen so that a home with a pool can be afforded? Knowing where you stand before it comes time to make an offer on a home or property is a good idea because it can save precious time that might otherwise be wasted in back and forth counter-offers. This will also be very useful during the negotiation stage.

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You can never be too prepared before taking a huge step like buying a home and taking just a few precautions and a bit of time before you begin the journey, could likely end up saving you a lot of money, countless headaches and get you in a perfect home within your means.

What Determines the Value of Your Home?

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Basically, a home's worth is determined by its market value. How is "market value" determined? Most often, it's figured by a comparison ("comp") with homes similar to yours in the surrounding area. So, if the homes in your neighborhood average, say, $250,000, then it's likely that the value of your property will fall in the same range. But market value is also determined by a number of factors including the following: 

External Factors 

There can be several external factors influencing the value of your home. One is "curb appeal", or the first impression your property makes upon prospective buyers. A home that's in excellent condition on the outside will make a great first impression; a home in poor repair instantly loses its appeal to buyers. Other factors can include lot size, popularity of an architectural style of property, water/sewage systems, paved roads, sidewalks, etc. 

Internal Factors  

The condition of a home's interior also has a huge influence on prospective buyers. When you've demonstrated "pride of ownership" and kept up the maintenance (quality paint, trim, molding, etc.), a buyer's interest will immediately perk up for the simple reason that they know your care and concern will result in less cost and maintenance for them. Other internal factors include construction quality, condition of appliances, size and number of rooms, heating/cooling type, energy efficiency, etc. 

Supply and Demand 

"Supply and demand" simply refers to the number of homes for sale versus the number of buyers. When there are more homes than there are buyers, prices tend to be lower. When there are a lot of buyers chasing few homes, then prices tend to rise. In effect, supply and demand affects how quickly your home will sell. Location More than likely, you already know the old saying, "There are three main factors in real estate - location, location, location." While that's not the whole story, desirability is a big factor for home buyers. They may want to live in particular school district known for its education excellence…a great and safe neighborhood with rising property values…etc. 

But I Know My Home Is More Valuable Than a Lot of Comparable Homes in My Neighborhood  

Aren't Allowances Made for This? Definitely! Sometimes, it can be difficult to find homes exactly comparable to your own. So, dollar adjustments are made for the differences between your home and comparable properties. 

Where Do I Find Sales Comparison Information? 

The easiest source to access is your Realtor. After all, it's his or her business to know such information! But, there are also other sources you can tap into in order to get a complete picture of your home's value in comparison to others in your neighborhood. Here's an overview of them:

1. ) The Local Assessor's Office  

It's very likely that your local assessor will be able to provide the sales history of a particular house, neighborhood, or style of architecture. Many assessors also provide lists of recent sales which you can browse and compare to the assessment roll. Today, many municipalities provide local sales and assessment information online making it very easy to access. Check with your local government agency to find out if they provide this service. 

2.) Online Private Companies  

You can search for these companies using the Google search engine and the keywords "comparable home sales" or "comparable sales." Some companies offer free information; others charge a nominal fee. If you wish to get more specific, you can Google "real estate database" and type in the name of your particular state to get additional property information. 

3.) Your Local Newspaper  

It's likely that your local newspaper is a great source of specific real estate information. Look for quarterly sales reports in the real estate or business sections.

The Key to Getting the Price You Want (or Close To It) for Your Home 

The key to getting the best value is finding and matching the right buyer to your home. And that's the job of the Realtor! He or she should work hard to qualify those buyers upfront so the right people are viewing your property! In other words, the Realtor should weed out "lookers" and other unsuitable buyers as a first step in working with you. See how I do that for you by calling me today!

Exploring the Main Differences That Makes a Short Sale a Better Choice Than a Foreclosure

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Just a couple years ago, most people usually thought they had to give up their home in a foreclosure when they faced a financial stonewall. However, since then the phenomenon of short sales has been on the rise, leaving homeowners a bigger, better and brighter option for the present and future. In this article, we explore the comparative differences between the two so you can gain an edge when deciding which is better for you.

Purchasing Power

After walking away from your mortgage through a foreclosure, you can expect to feel the negative impact of it for five years, in terms of being able to purchase another home. Even then, like a bankruptcy, a foreclosure is something you will perpetually have to report no matter how long it has been since the home went into foreclosure. 

Though these days you see a lot of talk about the financial and credit impact foreclosures have on homeowners, the unseen part of it is something to be dealt with. Going through this process can leave a lasting emotional hole in people who otherwise were law-abiding citizens, going about their normal lives when all of a sudden they are faced with severe financial hardship and must resort to extreme measures. That, or if the value of their home has dropped well below the amount they paid for it and they see very little hope for the future.

Short sales are much simpler. They will affect your purchasing power for a mere two years, often just the amount of time it takes to get back on one’s financial feet. Not only that, there is no requirement to report a short sale transaction.

Credit Outlook

There are two main areas that are of concern when it comes to your credit – your credit score and your credit history. In case of a foreclosure, credit scores drop a whopping 200 to 300 points. This can have a significantly negative impact on your ability to purchase big-ticket items or secure loans in the future. Not to mention it takes years to rebuild a credit score that has dropped that low. In terms of credit history, a foreclosure remains visible on your credit report for anywhere from ten years or more, rendering each future potential lending transaction either useless or very hard-pressed at getting approved. The overall impact you will see on your credit will be for about three years.

Short sales are far easier on your credit outlook, in that the point drop is only about 50 on average and the transaction itself will impact your credit profile for as relatively little as 12 to 15 months. The one thing to keep in mind is that if you have defaulted on any payments or if you already have a weak credit profile, the post-short sale point drop on your credit report can be more than just 50. Also, there is no formal reporting or declaration of a short sale on your credit report like a foreclosure although the transaction will show up as either settled or not paid in full.

Amount Still Owed

Usually there is a gap in the amount owed after owners walk away from a property and the bank assumes responsibility. In case of a foreclosure, given the amount of processing time and resultant vulnerability and exposure of the property, the value can and often does drop greatly after vandalism and from sitting there unused. The Deficiency Amount (also called Judgment Amount) is the difference that remains after the bank calculates what was owed on the property at the time of foreclosure and when they sold the home. Because of this vandalism and vulnerability, the amount of value drop is far more than with a short sale, when the homeowners are still residing in the property during processing. The bank has the legal right to pursue homeowners for the amount difference. 

Short sales differ in that not only is the deficiency amount much less but also, your Realtor can negotiate a waiver of that amount so you don’t have to pay for it.

Why Some Homes Sell More Easily – Plus How South Central Alaska’s Doing in the Market

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Everyone who puts their home on the market wants to sell it and sell well.  So what is it that sets those people apart who are able to powerhouse their way into a deal very soon after they list their property?  How do these people manage to successfully get the price they want and with the terms that they are happy with?  The answer lies in five simple, but very effective aspects of selling real estate that I’ve learned in my twenty years of being in the real estate business.

Location, Location, Location!

Yep, that famous saying you’ve heard has a lot of truth to it.  How and where your property is situated makes a huge difference in terms of your selling success.  Things like being centrally located (to the city), being within a good school system, having access to shopping, dining and entertainment facilities plus nearby recreational venues, all add to the value of a property’s location.

How’s That Property Looking?

Believe it or not, what all those design TV shows keep saying, is true.  How you present your home when you put it up for sale has a lot to do with your potential selling success.  Do not underestimate the power of curb appeal.  By spending a little bit to update the house, in almost all cases, it translates to a far better received house on the market.  Fix things that are broken, try to decorate or set up things in a neutral way so that buyers can imagine themselves in the home.  A bright red wall, for example, is not everyone’s idea of a perfect family room color.

How Much Did You Say That Was?

The single most important factor when looking at a home’s selling capability is its price.  Buyers are definitely very savvy, especially these days when it’s a buyers’ market.  Not only will they be fully aware of area property values but they will also call you on it if you overprice your home.  In a market where buyers have considerable more inventory to choose from than if it was more a seller’s market, it is very important to focus on setting a realistic price.

Terms, Perks and Other Deal-Sweetening Things

Of COURSE the cool people that agreed to throw in the backyard Jacuzzi will sell their house before you sell yours.  The trick is to know and understand exactly how to entice the buyers into wanting your home.  What are the ways to do that?  Some of them are in your hands, like offering to add extra items like curtains or fixed furnishings – while other factors are market-dependent, like the current interest rates.  But at the end of the day, one of the key reasons successful sales happen is because the terms were favorable and agreeable to both parties.

Boy Was That Ever Easy, Thanks To The Realtor’s Experience!

Most homeowners who try to sell their home on their own, what’s known as a FSBO in real estate jargon, usually don’t.  The simple fact of the matter is that by going through a Realtor, homes have a far better chance of selling – and this is for many reasons.  But it’s not just any Realtor that is the key to success; rather it’s choosing an experienced professional who knows their stuff.

As long as you are market-savvy, you understand what buyers are looking for and are willing to accommodate the things that will set you apart and give you the edge over other sellers, your property should sell.  And even more so, by following through with the five things that homes do sell with success, you will sell your home and sell it well.

A Closer Look At Our Neck of the Woods

	Anchorage	Eagle River/Chugiak	Palmer and Wasilla
Homes on the Market	1057	349	906
Homes in Sale Pending Status	307	164	226
Pending Ratio	29%	29.8%	24.9%
Inventory Exhaustion Rate**	3.4 months	3.4 months	4 months
Sold Properties~	751	195	453
Unsold Properties	168	46	157
Initial Selling Price*	$335,059	$346,134	$249,460
Price Reduction*	$12,762	$14,078	$11,481
New Selling Price*	$322,297	$332,056	$228,979
Over/Under Initial Price	-$5,014	+$872	-$6307
Indications	Overpriced	Priced Right	Overpriced
Days to Sell*	77	84	97
Days Listed*	96	89	-

**Number of months it would take for inventory to exhaust, assuming no new homes were listed at the current rate

~Sold in the last six months
*Averages