Warning Signs To Look For In a Home
Buying a home is a very emotional process, but if you allow those emotions to get the best of you, you may fall prey to a number of common home buyer mistakes. Since buying a home has many far-reaching implications – ranging from from where you will live to how hard it will be to make ends meet – it’s important to keep your emotions in check and make the most rational decision possible.
To avoid grief later on, consider these tips and questions when deciding if a particular type of home is right for you.
Neighborhood
*Have neighbors complained about air or noise pollution from traffic and industry in the area?
*How close is the house to power lines or large electrical towers?
* When it rains, is there good drainage or does the street flood, threatening to do the same to your basement or garage?
Exterior
*Stand across the street. Does the land slope toward the house? Drainage should be away from the perimeter of the home.
*Do any of the materials show signs of rotting or a previous bug problem?
*Does the house have suitable storm windows? Do all the windows have screens? Do they open and close easily? Press your finger into the wood of the sills; if it’s soft, it’s rotten!
*Are all doors able to shut completely to avoid drafts/bugs?
*When was the roof last replaced? Are there odd bumps or dips? Are shingles missing?
Garage
*If the house has an attached garage, is there space or a well-sealed door between the garage and the living area?
*Is there adequate vehicle and storage space?
Interior
*Check the ceilings and walls for watermark stains or mold; this is an indication of water damage. Consider visiting the house on a rainy day to check for leaks.
*Does the basement or crawl space smell damp or moldy?
*Does the staircase seem sturdy, or is it squeaky and unsteady?
*Is the paint peeling or the molding cracked?
Flooring
*Wood flooring and natural stone should be sealed with non-toxic sealers.
*What’s underneath? Less expensive subflooring is prone to water damage.
*Inspect tiles and grout for cracks.
*Check for holes and crevices that could allow pests to get in.
Electrical
*Does the location of the home make it prone to power outages?
*Are the switches antiquated? If so, perhaps the wiring is too.
*Is the fuse box easy to understand?
*Are there enough outlets for your needs? Are they in preferable places throughout the house?
*Try to avoid situations where the bedroom backs up against the kitchen wall where the refrigerator or other large appliances are running.
Water
*Does the home have copper plumbing?
*Run the water in the kitchen, bathroom and laundry room to test water pressure, cleanliness of the water and proper drainage.
*Look for moisture damage, mold or leaking around and underneath the sink.
*Check the hot water system. Is it leaky or rusty? Is it big enough for your family?
General
*Does the house have central heating and air conditioning? How old are the systems? Are they functioning well?
*What are the average monthly costs for heating and cooling? Good insulation is key!
*Is there proper ventilation in the kitchen and bathroom?
*The house should be tested for lead, asbestos and radon. A termite check is a good idea too.
*Is there adequate storage for all of your belongings?
*Bring out a tape measure to make sure the furniture you plan to bring with you will fit in the rooms. Measure spaces to make sure your appliances such as the refrigerator, washing machine, dishwasher and microwave will fit.
You probably have more questions of your own, but hopefully you will consider these to be a good start as you determine whether a particular house is the one you want to call home. Ask us if there is anything else you need to know about a particular house when you’re viewing it. As your agent, we tend to have a more unbiased and un-emotional view of properties than you might.
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6 Tips To Sell Your Home Faster
In a down real estate market where supply outstrips demand, a person can generally sell a house faster by lowering the price. But there are other ways to enhance a home’s attractiveness besides lowering the asking price. If you’re looking to sell your home in this cool real estate market, here are a few tips on how to generate interest and get the best price possible.
Differentiate From the Neighbors
In order to attract attention and make your home more memorable, consider custom designs or additions, such as landscaping, high grade windows or a new roof. This can help improve the home’s aesthetics, while potentially adding value to the home.
Any improvements should be practical and use colors and designs that will appeal to the widest audience. In addition, they should compliment the home and its other amenities, such as building a deck or patio adjacent to an outdoor swimming pool.
However, while it can pay to spice up your home, don’t over-improve it. According to a 2006 article in Realtor Magazine, some renovations, such as adding a bathroom or a sun room, might not always pay. The data suggests that the nationwide average amount recouped for a bathroom addition is about 75%. For a sun room, it’s even less. If you’re going to invest in renovations, do your research and be sure to put your money into the things that are likely to get you the best return.
In addition, if you have added any custom features you think buyers will be interested in, make sure they are included in the home’s listing information. More than ever, in a down market you should take every small edge you can get.
Clean the Clutter
It is imperative to remove all clutter from the home before showing it to potential buyers because buyers need to be able to picture themselves in the space. This might include removing some furniture to make rooms look bigger, and putting away family photographs and personal items.
You may even want to hire a stager to help you make better use of the space. Staging costs can range from a couple hundred dollars for a basic consultation to several thousand dollars, particularly if you rent modern, neutral furniture for showing your home. Many people feel that stagers can make a home more salable, so hiring one deserves some consideration.
Improve Curb Appeal
Sellers often overlook the importance of their home’s curb appeal. The first thing a buyer sees is a home’s external appearance and the way it fits into the surrounding neighborhood. Try to make certain the exterior has a fresh coat of paint, and the bushes and lawn are well manicured. In real estate, appearances mean a lot. What better way to set your home apart than to make it attractive at first glance?
Get Your Home in “Move In” Condition
Aesthetics are important, but it’s also important that doors, appliances and electrical and plumbing fixtures be in compliance with current building codes and in working order. Again, the idea is to have the home in move in condition and to give potential buyers the impression that they will be able to move right in and start enjoying their new home, rather than spending time and money fixing it up.
Sweeten the Deal
Another way to make the home and deal more attractive to buyers is to offer things or terms that might sweeten the pot. For example, sellers that offer the buyer a couple of thousand dollars credit toward closing costs, or offer to pay closing costs entirely will in some cases receive more attention from house hunters looking at similar homes. In a down market, buyers are looking for a deal, so do your best to make them feel they’re getting one.
Another tip is to offer a transferable home warranty, which can cost $300 to $400 for a one-year policy and will cover appliances, such as air conditioners and refrigerators, that fail. Depending on the policy, other appliances and house gadgets may be covered as well. A potential buyer may feel more at ease knowing that he or she will be covered against such problems, which could make your home more attractive than a competing home.
Finally, it’s important to note that some buyers are motivated by the option to close in a short amount of time. If it is possible for you to close on the home within 30 to 60 days, this may set your deal apart and get you a contract.
Pricing It Right
Perhaps most important of all these tips is the importance of pricing the home appropriately. Consult a local real estate agent, read the newspapers and go to online real estate sites to see what comparable homes are going for in your area.
It’s not always imperative to be the lowest priced home on the block, particularly when aesthetic and other significant improvements have been made. However, it is important that your listing price is not out of line with other comparable homes in the market. Try to put yourself in the buyer’s shoes and then determine what a fair price might be. Have friends, neighbors and real estate professionals tour the home and weigh in as well.
In Summary
Do everything you can to get the home in excellent shape and be prepared to make some small concessions at closing. These tips, coupled with an attractive price, will increase the odds of getting your home sold.
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Housing Crisis: A Sign The Worst Is Over
Falling mortgage delinquency rates seem to be indicating the housing crisis may be at the beginning of its end.
A quarterly release from the Mortgage Bankers Association revealed that mortgage payment problems eased during the first three months of 2011 for every category of default.
The rate of loans past due, unadjusted for seasonal factors, decreased 1.17 percentage points to 7.79% from 8.96% during the last quarter of 2010. It was down 1.59 points year-over-year.
The percentage of loans somewhere in foreclosure is down from last quarter’s record high.
The overall national decline comes despite continuing delays in processing foreclosures stemming from the “robo-signing” scandal in which banks were accused of mishandling legal paperwork. As a result, foreclosures take longer to work through the system, so they show up in delinquency rates quarter after quarter.
Meanwhile, the nation’s continued, albeit slow-motion, economic recovery is also providing some relief. There’s a close correlation between unemployment and mortgage payment problems. Not only are people with jobs more able to make their mortgage payments than unemployed borrowers, but hiring itself boosts consumer confidence and, ultimately, housing markets.
The light at the end of the foreclosure crisis tunnel may still be some distance off, but at least it’s visible again after years of doom and gloom.
