Thinking of Trying to Sell Your Home on Your Own?

Occasionally homeowners decide to try and sell their home without the use of a professional Real Estate agent. As a chronic do-it-yourselfer, I can certainly understand the thought process. I have completed many successful home projects and am quite proud of my work on most of them. There are however a few times, when I regretted not hiring a professional. I believe selling your home is a good time to hire a professional as there are some mistakes that can be very costly and even a few legal pitfalls.

  It looks easy enough, do some advertising, place a sign in the yard and wait for someone to make you an offer. In my opinion, after you find the buyer is when you may be entering the danger zone. Here are a few things to think about before deciding to sell your home on your own...

1) Negotiations
 Are you a skilled negotiator? It can be difficult for someone with an emotional attachment to remain calm and negotiate effectively. Buyers who are looking at For Sale by Owner properties are looking to save money too.

 2) Paperwork
Realtor's use contracts and disclosures that were created by the state Real Estate Association's legal team. In addition to the purchase agreement there is a seller's disclosure, homeowner's association disclosure and various other disclosures that should be used for your protection in certain types of sales.

3) Inspections
Does the purchase agreement you plan to use clearly spell out the inspection timeline and whether repairs are to be made by you prior to closing? Is it clear what items must be repaired. if any? Are you willing to renegotiate on price if a large item comes up as a result of the inspections?

4) Appraisals
Is your buyer financing their purchase? Do you know what your options are if the property doesn't appraise? Will you and the buyer renegotiate the price? Did you get a pre-approval letter from the buyer's lender when they signed the purchase agreement? Do you have lender contacts that might be able to save the deal if financing becomes an issue? Are you aware that an FHA appraisal will stay with the property for four months, so any future FHA buyers will get the same appraised value on your home until after the four months have past?

These are just a few of the potential situations you might find yourself up against if you try to sell on your own. There are sellers that do sell their own home, and I'm sure there are a few that say they would do it again next time, but are you sure you're up for challenge? I'm here to help and am willing to meet with you and answer any and all questions about selling your home, whether or not you decide to list your home with me or any other agent. Call for your free, no obligation, consultation today!

Is Home Ownership a Good Investment?

From time to time I run into a non-homeowner who tells me they don't want to buy a home because they don't think home ownership is a good investment. In general I don't think of my home as an investment, at least not the same way I think of my stock and IRA accounts. I do however believe that home ownership is a GREAT investment!

With the exception of those few unmentionable years from about 2007 to 2011, home prices have remained stable and/or increased. If we look at averages, even averaging in the down years, overall home appreciation is still up.

The primary reason I love Real Estate as an investment is the power of leverage. I don't know of many investments where you can control an entity with as little as 3.5% down and benefit 100% on the gains of the entire value of that entity. For example, if you put 3.5% down ($7,000) on a $200,000 home, and that home appreciates 5% over the next five years, then you have increased your equity by $10,000 (not including the principle amount you pay down over those 5 years). You make $10,000 in equity but you only invested $7,000 to control an asset worth $200,000. That is a gain of almost 145% on your initial investment!

Lastly, I love Real Estate as an investment because housing is a necessary expense so why not benefit from future equity gains and possible tax relief on something you pay for anyway?

How's The Market?

Probably the most common question I am asked when I tell someone I am a Realtor is "How's the Market?" While market conditions vary widely based on local conditions, I feel it is important to understand the national market too. I think it is especially important for sellers to understand the national market.

 As a seller your primary goal is to find a qualified buyer for your home. In order to find a buyer, you need to think like a buyer. Unless a buyer has been working with an agent and looking for a while, their most likely source of information regarding the housing market is the media. The media primarily reports national statistics.

So what's happening nationally in the Real Estate market? The most recent statistics reported by the National Association of Realtor's show that overall, sales, prices and inventory are up and distressed sales are down!  Look for more information to come regarding regional and local statistics in future posts.

Where Are Home Prices Headed?

Everyone is curious about home appreciation! Buyers are worried that they may be priced out of the market or will have to settle for a smaller home, and sellers want to know how much equity they have gained or lost. The county property appraiser wants to know if he can raise taxes and even your lender wants to be sure their investment is secure.

So where are home prices headed today? Based on the article below, the most recent survey from Pulsenomics says prices are projected to rise. While most will consider this great news as this shows increasing confidence in economic stability for the nation as a whole and should help to increase overall economic growth for the country, it could indicate that it is time to take action for others.

Who should take action now? Homebuyers are the obvious answer, but what about Sellers? If you are a seller who has been waiting for the market to improve, now may be a perfect time to sell. If you currently own and have been thinking of selling then most likely you are either moving up to larger home or downsizing to a smaller home.

If you are thinking of moving up, then an increase in home values will not only affect you regarding price on the sale of your current home, but on the purchase price of your new home. It is also important to look at the appreciation of both homes. If you currently own a $100,000 home and it appreciates 10% over the next few years you will have gained $10,000 in equity, but if you move up to a $200,000 home and it appreciates 10% over the next few years you will have gained $20,000 in equity. With prices going up, the sooner you move up, the sooner you can start gaining more equity!

If you are curious about your current homes value and/or are considering buying or selling, it would be my pleasure to assist you! Please call or email today for your free, no obligation consultation.

Why You Should Buy in 2014

Many buyers may still be undecided when it comes to buying a home. The market has certainly been a scary place over the last few years! If you are waiting to buy, I feel there are some very compelling reasons why you should consider buying now.

In December 2012 the national average sales price of a home was $230,600 and national average interest rates were 3.35%. Payments for a home at this price and interest rate were $1016.29. Fast forward to December 2013 and again look at the average price and interest rate. At the new price and rate, your new home now costs you $1244.64 per month. Your cost of home ownership in December 2013 is now $228.35 more per month or $2,740.20 more per year! Ouch!

If we take this idea one step further and use projections from the National Association of Realtors for home prices and interest rate projections from Freddie Mac for January 2015, the cost of home ownership in 2014 vs. 2015 will go up yet again by another $202.52 per month or $2,430.24 per year.

What do you think? Is is time to act?