Monday, July 31, 2006

Putting it in Reverse!

Reverse mortgages have existed for nearly twenty years now, but still aren't well understood. Their complexity makes it difficult to separate fact from fiction, and not every person over 61 years old will find a reverse mortgage to be the best choice.

How does it work? It's still a loan, but is not paid back until the last owner/co-owner dies, or the home is sold or left unoccupied for one year. You may receive an equity line of credit, borrowing money as needed, or receive monthly checks for the rest of your life, like an annuity.

The loan amount is based on your age and your home's value, among other factors. Lenders don't loan the full value of your home, and there are fees. While a reverse mortgage provides a low-risk option that allows seniors to remain in their home for the rest of their lives, other investments should be depleted before giving it consideration. Your home's equity should be tapped as a last resource.

When the loan becomes due for any of the reasons stated above, the home is sold and you (or your heirs) would receive any money left over. If the house sells for less than the loan amount, the lender eats the loss. Again, this is a great option for many, but not all, qualified borrowers. Give it thorough investigation.

Monday, July 24, 2006

Creating Demand!


You hear it everywhere, "It's a seller's market." True, homeowners in many parts of the country haven’t had to wait long for offers, but let's assume that the great times won't last forever. Don't worry about any "bubbles" bursting, but take a smart approach if you're considering selling your home soon.

You cannot control the laws of supply and demand, but you can control whether or not your home sells. The two biggest factors you need to work on are pricing the property correctly and getting buyers inside the door.

The best opportunity to sell your home is immediately after it enters the market. Pricing your home too high at the start will result in few offers. Serious and qualified buyers jump on brand new listings, and if you wait too long to reduce your price back down to market, it will simply be too late to attract those buyers. Worse, you'll only generate interest again if you reduce to below market, an unsatisfactory option.

Now that the price is right, the greatest challenge is getting those buyers inside your home. Create "curb appeal" by mowing the grass, cleaning the windows, planting flowers, and so on. If your best features are inside or out back, offer photos and "virtual tours" online. Lure them with price and wow them with value, the solution for any market.

Monday, July 17, 2006

How Does that Compute?

The growth of information technology in real estate has provided benefits to both agents and consumers. Not only are buyers and sellers better informed and more demanding, but real estate agents are also able to offer a higher level of service.

When computers and the Internet first came to prominence and use in real estate, the expectation was that access to all that information would soon replace the need for representation in the sales transaction. Why then would there be so many more agents practicing now? In the real estate industry, the number of agents, the use of technology, and economic growth have all increased together over the years.

Now consumers can view listings online, research neighborhood demographics, and even find a lender after shopping around for the best rates and lowest fees. All of this creates a more educated homeowner or buyer, who understands the benefits of representation.

It's almost like "information overload," and the real estate agent is there to translate all the input, as well as assist with complicated matters like title insurance, inspections, legal documents, negotiations, and more.

Real estate, like law or medicine, is not something you learn on Internet search engines like Google or Yahoo. There may be such a thing now as virtual reality, but there can never be virtual realty, and there should never be a virtual agent!

Monday, July 10, 2006

Less is More!


High prices and rising interest rates are making smaller homes an attractive option to buyers. Of course, there has always been a market for small homes, especially because that's where so many first-time buyers begin their home ownership experience.

With smaller homes in such high demand, there is a lot of competition for buyers. What steps can you take to prepare your home for a quick, full-price sale? If you can't afford the services of a "home stager" to come in and redecorate, you can at least follow some of their advice.

Make your home look more spacious by using neutral colors on the walls and carpeting. Far from appearing boring, the neutral scheme will actually allow buyers to better visualize their own decorating plans. Along those same lines, get organized and reduce the clutter around the home.

This also means rearranging furniture, or even putting some furniture into storage, if it will help your rooms "breathe." After all, you want buyers to be able to picture their own furniture and belongings in your home. It will be easier for them to imagine moving in if you’ve already taken steps to clear the space a bit.

Details like door handles, cabinet hardware, and faucets can be inexpensively updated to show pride of ownership in your smaller home. Now you’re ready to successfully compete for those buyers!

Monday, July 3, 2006

Be Ready For Anything!

Whether you are buying or selling a home, you will probably encounter "the inspection." This needn't strike fear into the hearts of sellers, and it needn't encourage buyers to look for fault.

Disclosure and awareness are the most important issues, and a recent survey of the National Association of Home Inspectors sheds some light on the most prevalent problems that they encounter. Sellers will want to address any problems before listing their home, and buyers will want to be sure to pay special attention to the following survey results.

One of the four most common major problems is improper drainage around the house. Unsuitable grading can lead to water penetration and even problems with the foundation. Another of the four biggest problems involves – big surprise – roofing. Look for damage in the form of worn materials or improper flashing.

The survey results also point to a couple of interior problems. In older homes, particular attention should be paid to the electrical system, which might have inadequate overload protection or "suspicious" wiring, if not insufficient power. Also inspect the heating and air conditioning systems, especially if managed with an older thermostat or other controls.

Keep in mind that most homes will not have major problems, but that these are the most common. Trust your agent to prepare you for anything, whether selling or buying.