Show Them You Care!

You might think that the living room or family room is the heart of your home, but in the eyes of potential buyers, there are at least three other rooms that will demand your attention as you prepare to sell your home for top dollar. Avoiding improvements in the following areas may cost you a lot more than the small investment it takes to impress buyers.

For buyers, the kitchen is often the most important area, and while you may not need to replace your cabinets, refacing or just sanding and painting will go a long way towards improving their appearance. If the floor is in poor condition, consider replacing it.

In the bathroom, fresh paint and new flooring are also fine improvements, but your greatest payoff might come from simply investing a couple hundred dollars in a new mirror and vanity.

The laundry room is often overlooked when it comes to improvements, but buyers will respond positively if you install built-in shelving and storage. If your laundry area isn't flooded with light, consider upgrading the light fixtures. While you're at it, that fresh paint and new flooring wouldn't hurt here, either.

Trust me that if these three rooms are bright, neat and clean, it conveys to the buyers that you are a responsible seller with pride of ownership, worthy of a full price offer.

It Works Both Ways!

In slower housing markets, most sellers understand that attracting buyers becomes more of a challenge. With more homes for sale at ever more competitive prices, buyers tend to have more power to choose and negotiate under these circumstances.

What steps can you take to insure a faster sale at a higher price? First, seek representation. Over the last ten years, the number of homes that sold "by owner" fell by one third, and that statistic includes all markets, both hot and cool. What does that trend mean? Sellers have come to realize that real estate professionals are better equipped to produce top dollar offers, especially in slower conditions.

In 2006, the National Association of REALTORS® reported that the median selling price for homes listed through agents was 16% higher than those homes that were sold "by owner." Beyond putting more money in your pocket, an agent also saves you untold headaches associated with marketing your home, orchestrating showings, and coordinating paperwork.

Last year, a significant number of unrepresented sellers ended up finally turning to a professional. Why wait until your home has already become stale inventory to reach the same conclusion? Remember that what works in a slow market also holds true in very active markets - a professional representative simply brings more knowledge and experience to the table, resulting in higher offers in less time.

You're Not Alone!

Foreclosure. The very term strikes fear into the heart of any homeowner. Would you believe that one in every 1000 homes in the U.S. were in the process of foreclosure at the end of 2006? If you're facing such circumstances, first understand that you are not alone.

Most people got into this position by taking advantage of ridiculously low introductory rates on adjustable rate mortgages (ARMs). Now that those loans are resetting, consumers face dramatic increases in the interest rate, and consequently, the monthly payment. Even a reasonable rate like 7% becomes a burden to those who have grown accustomed to the 1 or 2 percent introductory rates.

Ideally, a short sale coordinated by a real estate professional provides the opportunity to satisfy all the motivated parties - seller, buyer, and lender. The seller wins by liquidating the property before foreclosure proceedings begin. The buyer benefits by securing property at a good value. Finally, the lender benefits by not having to initiate the foreclosure or take the property back.

A real estate agent may even have suggestions to help keep you in your home. Granted, it isn’t a sale, but agents appreciate the subtleties of building good relationships with loyal clients who will refer business to them in the future. Trust a professional to guide you through this difficult time with experience, courtesy and respect.

Rubbing Elbows!

At some point in your life you're likely to find yourself either buying or selling a home. When that time comes, you might want to ask yourself some questions.

Can I figure like an accountant? Can I measure like a surveyor? Do I understand "legalese" like an attorney? Can I spot defects like an inspector? Can I speak like an auctioneer? Do I understand zoning, building codes and taxes like a city or county employee? Do I understand human motivation like a psychologist?

Chances are you'll be hard pressed to answer all those questions with a "Yes," unless you're a real estate professional. Why, you ask, would an agent be different? It has to do with "rubbing elbows."

The daily routine of an active, highly committed real estate broker or agent is an exhausting one. During any 24 hour period, such a professional will likely have contact with loan officers, lawyers, tax collectors, land surveyors, insurance company representatives, mortgage lending officers, accountants, auctioneers, courthouse personnel, local businessmen and - most importantly - buyers and sellers.

Working at least six days a week, can you imagine how many individual contacts would be made in a year's time? Such an active individual can mean the difference between winning or losing at real estate. After all, it's who you know, and now you know the benefits of representation.

Vacant Home or "Open House"?

If you move out of your home while it's on the market, you'll expect your real estate agent to handle showings in your absence. But how do you avoid the unwanted attention that a vacant home can attract from uninvited intruders?

There are many suggestions to offer to increase your security. While your agent likely won't have the time available to constantly monitor your home, you do have the option of registering with the local police department, so that officers assigned to your neighborhood can keep an eye on your home and perform security checks as needed (generally at no charge).

If you have a security system already installed, be sure to notify your service that the house is empty, and provide an emergency contact number. Also employ a caretaker for the grounds, to keep the yard clean and maintained for a more lived-in look. Stop your newspaper deliveries and make sure your mail is being forwarded to your new address before your big moving day.

Don't leave anything valuable behind, and be sure to program all of the lights on timers, inside and out. An overlooked issue, however, is to not leave the lights on all night, as that is actually an obvious clue that no one is home.

Some simple planning now can save you untold worry and stress later. Enjoy your move!

An Ounce of Prevention!

What does the phrase "title search" mean to you? Aside from an activity at the local library, its purpose is critical to the successful sale of a home. A title search is performed by an attorney in order to guarantee that there are no unknown liens on or claims to a property.

Because title searches are often ordered only after a purchase contract is on the table, problems can suddenly turn up at the eleventh hour, causing delays in the closing. That's why it may be advisable for the sellers to request a title search before even listing their property for sale.

What sort of problems might a title search unearth? There might be an "unreleased mortgage," which happens when a previous refinance is paid off, but the lender fails to file a release on the old mortgage. Property taxes may appear to be unpaid until filing errors are discovered. A divorce or death in the family may not be properly reflected in the ownership structure. Sometimes property records are fraudulently used to commit identity theft.

This is not to say that these errors are common, but they are increasingly prevalent among properties that have changed hands several times over these last few years of frenzied real estate activity. Speak with an agent before listing your home to determine whether a title search is appropriate.

Back to Basics!

Okay, it's time to return to Real Estate 101. With so much gloom and doom reported, our successful sale stories are being pushed aside by national reports of overstocked inventories and reluctant buyers. Blaming slow sales on "the market" is just an excuse. There is only one reason that homes remain unsold: they are overpriced.

For many sellers, this lesson is only learned after it's too late, resulting in frustration and finger pointing. Let's try to put the record straight. Many markets experienced extremely high levels of activity over the last few years. Inventories adjust as the number of eager and willing buyers drops off. Simply put, buyers are becoming choosier.

Sellers must look around them and take note of homes currently for sale, homes that have recently sold, and homes that have languished or expired. In other words, look at those prices and learn from the experiences of those who have gone before you.

A primary rule of Real Estate 101 is that a home's value is determined by the buyer, not the seller. That means today's buyer, not yesterday's and not tomorrow's.

Buyers are in fact plentiful, but they're just as tuned in to the media's scare tactics as sellers are. If you want to sell your home to "today's" buyer, consult with a professional and price your home competitively against your rivals.

A Truly Secure Transaction!

If there were a health issue in your family, you would turn to your doctor with questions. Likewise, you would consult an attorney if you were facing a legal problem. Chances are, however, that you would first go online to any number of medical or legal websites to familiarize yourself with the issues and get enough information to begin an informed discussion with the professional.

Those websites won't illustrate how to perform surgery, or advise you how to conduct your case in court. That's up to the professional. The Internet plays a similar role in real estate. It's a place to discover information, but it doesn't replace the trust and service provided by an accomplished representative.

Nearly three-quarters of buyers these days use the Internet to begin their home search, and most of them eventually seek the assistance of a living real estate agent to consummate their purchase. They're not about to take a virtual tour of 264 Elmwood Drive, add it to their "shopping cart," and proceed to "secure checkout" to complete the sale.

Buying a home is not the same as buying airline tickets or DVDs. Real estate agents provide essential services to both buyers and sellers, marketing properties as unique as their owners. Don't short change yourself on the biggest transaction of your life. Seek the representation of a knowledgeable and experienced professional.

First Impressions Count!

When you start planning to put your home on the market, it's time to show off! Try to imagine that your in-laws are coming for an extended visit, and then triple the effort you would put into preparing for their arrival. Sellers are competing for offers, and it all starts at your front door - literally.

Impress potential buyers at first sight with a well-tended lawn and entryway. When they walk through the door, make sure they do not sense any clutter. You've got to pack it up sooner or later, so take the opportunity to do it now, before another agent or buyer steps into your home. An abundance of personal items like photos and children's "refrigerator art" can interfere with a buyer's ability to picture the home as their own.

Next, if it should shine, make it so! Polish doorknobs, handrails, and lighting fixtures, anything that can add a little sparkle and show your pride of ownership. This includes windows (and screens), which should let in plenty of light for the show.

First impressions really do count when it comes to presenting your home. Accentuate its features and eliminate distractions such as personal items or unpleasant odors. An uncluttered, well kept home will attract buyers, and a little time and care can make the difference between a quick sale and a languishing listing.

The Uninvited Pest!

When you prepare an offer to purchase a home, be sure that "uninvited guests" don't appear at the closing. The guests I'm talking about are termites! Although termite inspections are not always required, you'll find that most lenders will not approve a loan without one.

A report prepared by a licensed pest control company will show if there is any presence of termite damage, or if there is any evidence of treatment for the wood-destroying insects. It isn't a guarantee that there aren't any termites present - it only reports visual damage or treatment.

Who pays for the inspection? That comes down to local customs and negotiation and between the buyers and the sellers. When buyers pay, it’s easy to avoid any conflict of interest by being sure to use a pest control company that is different from the one currently servicing the home. This ultimately protects the sellers, too, because if problems show up later, it can be shown that the buyers conducted an independent and objective inspection.

Again, understand that the inspection and subsequent report will not prove or disprove the existence of termites, but buyers who ignore this important issue during the purchasing process could be asking for trouble later on down the road. If you have any questions or concerns, consult with the real estate agent and move forward with confidence.

Cause and Effect!

Real estate is experiencing an unusual adjustment these days. Unusual, because in the past, sales declined due to either high interest rates or economic slowdowns. Neither of those factors exist right now, so where does the blame lie?

Quite frankly, one of the biggest reasons that home prices rose to such artificially high levels was because of a frenzied degree of investor speculation. "Flippers" would buy and then sell homes just for a short-term gain. The truly negative effect that this activity had was to drive home prices so high that most median-income families could not afford homeownership.

Now, as prices come back down to realistic levels, more middle-class buyers are capable of making the purchase. Sellers are beginning to realize that they have enjoyed substantial gains in equity and appreciation over the last few years. A price reduction of five or even ten percent is unlikely to erase those gains.

Realistic pricing by sellers encourages more sales. As more sales happen, inventories will again drop. As inventories drop, home prices will begin climbing again (at a more reasonable rate this time). Real estate agents are prepared for the cycle to continue, and you should be too. There is no need to panic when pricing adjustments are actually leading to a positive impact on your financing ability and the long-term value of your home.

Time to Reassess!

We all know that homes in many markets across the country experienced substantial gains in appreciation over the last few years of heated real estate activity. While sale prices are currently leveling out, you may have experienced "sticker shock" if you recently got a property tax assessment that shot way up.

As a matter of fact, property tax collections across the nation were up 35% from 2002 to 2006 (U.S. Census Bureau). That's twice the growth of personal income, spurring some 15 states to consider tax-cut proposals.

If you don't want to wait for new legislation, you can simply "act locally," and challenge your tax bill. It's not a hopeless case, because the American Homeowners Association (AHA) estimates that 60% of homes are in fact assessed too high.

Don't march down to the Assessor's office until you've checked your property data card for errors. Are the number of bedrooms and baths correct? Finished or unfinished basement? Lot size? Assessments are often based on replacement cost or what your home would sell for, so check with your insurance policy and real estate transaction records to determine if those figures are in line with what your tax bill states.

Not enough homeowners bother to make a challenge, but 70% of those who document and report errors manage to lower their tax bill (AHA). It's well worth a look.

Two Sides of the Same Coin!

How would you place a value on your home? More critically, how would you put a price on your home? Sounds like the same question, but it suggests the difference between price and value that's important to understand as you prepare to sell your home.

Two homes may have identical features and prices, but factors like location and condition can impact the homes' perceived value. To arrive at an attractive asking price, you must compare your home's value against its competition, which is easily done through realty websites and advertisements.

Your goal is to set the right price right away. Your best window for a full price offer will come within the first three weeks, so if you don't see any activity in that timeframe, take action. In changing markets, pricing a home becomes an ongoing activity. You need to consider real estate dynamics - new listings, recent transactions, expired listings, shifts in inventory, and so on.

Your best source of information and guidance is your neighborhood real estate agent, whose vocation it is to monitor all those conditions and bring buyers and sellers to the table for a satisfying transaction. Meet with your representative to discuss your motivation and timetable, compare your home's value against the competition, and analyze current trends in this market. The relationship between price and value will become crystal clear!

Make it Legal!

Millions of people each year move from one state to another. Reasons for relocating range from a new job to retiring to simply better housing. The financial and personal impact of buying and/or selling a home can be enormous. One aspect you should fully understand before making a big move is the tax implications.

Real estate agents are not financial advisors, but they do know a thing or two about what to do before relocating. At the top of the list is to legally change your state of residence and determine how that affects taxes on income, property, and your estate.

Once you're a legal resident of your new home state, you can apply for incentives like homestead exemptions (if available). Also make sure you've updated the address on your credit report. Investigate how the enforcement of certain legal documents like wills and powers of attorney might change because of the change in residence.

Rules are different from state to state, and many experts suggest trying to make your move as early in the year as possible in order to minimize the impact. Tax returns can be confusing when you're claiming part-time residency in two different states during the year you move. Trust a real estate professional to help with selling, buying and moving, and seek advice from a tax consultant about the financial implications.

No Time for Modesty!

You've taken care of needed repairs and cosmetic improvements, and you're ready to list your home for sale. A likely next step is hosting an Open House, where buyers and agents can check out your new offering. Expect plenty of visitors, and expect some of them to be neighbors.

You might be concerned about "tire kickers" or nosy neighbors traipsing through your home, but don't be too skeptical. There are plenty of reasons neighbors visit an Open House, many of which are quite harmless and understandable.

They might simply be looking for decorating ideas to implement in their similar homes. True, in this case they are not potential buyers, and are not looking on behalf of someone else. But why would you want to start quarreling with people from whom you are soon moving away?

Maybe they are interested in the presentation of your home because they are considering selling theirs. The point is, you just never know. Frankly, that is the work of the real estate agent.

It's simply best for you to leave your home during the showing, and leave the "Lookie Lou's" and genuine prospects to the agent to handle. Sincere buyers can be uncomfortable asking questions in front of the owners, but the agent will have all the knowledge and experience to separate the seed from the chaff. Don’t worry, start packing!