Mistake No. 4: Having Home Viewed By Unqualified Buyers

Posted on May 29, 2013 by Erin Johnston

Mistake No. 4:   Having Home Viewed By Unqualified Buyers

What is a Pre-Qualified Buyer?  Well, simply put, it is the initial step in the mortgage process and is a simple determination of the creditworthiness of a potential buyer.  It’s fairly simple; a potential buyer provides a lender, either online or on the phone, with an informal (not based on credit report) overview their finances (Income vs. Debt). A lender then provides the buyer an idea of how much mortgage they may qualify for.   So, Mr. & Mrs. John Doe now know what price range they should look in (ex: $200,000)   There are no costs involved in prequalification.    The procedure is quick and easy and based solely on the information the buyer

Because it’s a quick and easy procedure, and based only on the information buyer provides to the lender, a pre-qualified amount is not a sure thing, but it does let the buyer know what their limits are.
So, let’s say Mr. & Mrs. J. Doe did not pre-qualify, but they are ready to buy and just love your home in that neighborhood.  So they call a Realtor and ask to view the home.  Your home is currently listed for $275,000.

You get a one hour notice from Mr. & Mrs. Doe’s agent that the family will be traipsing through your home this morning.   Inconvenient, however, you don’t want to lose a prospective buyer.  But did you?

In this economy, a showing requirement should be preapproval to ensure the people entering your home are shopping in the range they can afford.    (Some Realtors won’t put a buyer in their car and drive them all over town with these gas prices, without knowing what they qualify for, but some do).
You can request your Realtor to not show the home to unqualified buyers.  Your agent is working for you and your best interests and will advise you whether or not it’s a good idea, or a bad idea, depending on the specifics of your home and local market.

While written proof cannot be obtained, your Agent can request that other agents not show your home to unqualified buyers. This is perfectly acceptable if the request is coming from you, the client.

Call our office and speak to a Realtor® for more information.

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Mistake No. 3: Being dishonest about the home.

Posted on May 24, 2013 by Erin Johnston

Mistake No. 3: Being dishonest about the home.

Disclosure laws exist, but vary state to state.   A seller risks losing a potential sale by hiding something they know is wrong with their house.   When it’s found, inevitably during the Home Inspection, your buyer will wonder what else you are not telling them.

Bottom line, honesty, as always, is the best policy.

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Mistake No. 2: Overpricing Your Home.

Posted on May 22, 2013 by Erin Johnston

Mistake No. 2: Overpricing Your Home.

Ah….pricing your home right.   No subject could be touchier.  Although no one can place a value on the “home” you have built over the years, in order to sell, an asking price must be reached.  Your homes asking price cannot be based on what you need to net financially.   This usually never works, as the sales price is determined by the market, not you.

Setting your asking price too high may be the #1 mistake a seller can make. This will affect the amount of agents and buyers who will consider looking at the home and you will experience very few showings and probably no offers.   In contrast, a slightly-below-market asking price significantly increases buyer activity and may even generate multiple offers!

It is the job of your Realtor to determine a fair asking price.  This is done with a Comparative Market Analyses (CMA).   A CMA is an evaluation of certain market indicators of sold homes, current listings, pending sales and withdrawn or expired listings.  By reading indicators such as square footage, construction date, amenities, condition and location, a sales price for listing purposes can be reached.

Call us today for your CMA!

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Avoiding Mistakes When Selling

Posted on May 17, 2013 by Erin Johnston

In today’s market, selling your home is tough enough.  Certain mistakes can cost you a favorable deal or worse yet, any deal at all!   In today’s blog, we will discuss the top mistakes and provide tips to assist to make your home more “sellable”.

Mistake:  Failing to “Prep” the Home.

A polished home will make a buyer feel more at ease that they are purchasing a home that has been well maintained.  This appeal may allow your home to possibly sell faster.

Make the home more appealing to buyers by increasing curb appeal.  Ensure the yard and home’s exterior is well maintained throughout the time the home is on the market.

  • Keeping it edged and cut.
  • Trim hedges, weed lawns and flowerbeds, and prune trees regularly.
  • Paint the front door.
  • Clean and align gutters.
  • Repair and replace loose or damaged roof shingles.
  • Repair and repaint loose siding and caulking.
  • Plant a few flowers.
  • Paint the front door.

De-Clutter!  When a prospective buyer is viewing your home, they imagine their belongings fitting in the home and picturing themselves in the home.  That’s hard to do when the home is filled with all your cherished memories and all the trinkets from your family vacations.  Depersonalize and de clutter as much as possible.  Box up some of the family photos.  (When the home sells, you’re going to have to pack them up anyway, just get a head start.)

Clean out the closets, cabinets and garage.  Have a yard sale and use that cash to invest in a small storage unit for a few months for larger items that you prefer to hold onto.

Give the home a detailed cleaning. The home, now de-cluttered, will appear brighter.  If time is an issue, your Realtor can recommend a cleaning service.  It’s worth the investment.  If needed, repair any holes or damage to drywall.  Remove tattered wallpaper and paint with neutral colors like soft beige or off white.  Spruce up the paint on walls in heavy traffic areas.

Finally, keep the dishes out of the sink and the counters clean and free of clutter ona  day to day basis.  A buyer will reach there first impression within one minute of viewing the home.  Make sure that impression is a good one!

Stay tuned to the blog for our “next mistake”…..Overpricing your home!

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Appraisals Helping the Housing Market

Posted on May 15, 2013 by Erin Johnston

More home sales are now going through because appraisers are putting higher values on the homes. The higher values are due to the rise of home prices as well as the shrinking inventories. From 2008-2010, many home sales fell through because of low appraisal values. Now with most appraisals coming in above or at the selling price, the market is sure to see more deals succeed.

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Mother’s Day Events

Posted on May 10, 2013 by Erin Johnston

Wondering what events are going on in the Tri-Cities this weekend for that special day for Mom?

 

Mother’s Day Apple Pie Sale

Location:    Yokes Fresh Market

Address:     Bombing Range Road West Richland, WA 99353

Times:        10 a.m. – 4 p.m.

Phone:        509-943-2552

Admission: Free

Website:    Click To Visit Website

 

The Second Annual Macy’s Mother’s Day Brunch and Fashion Show

Address:
9221 W. Clearwater Ave.. Ste. A Kennewick, WA 99338
Times:
10 a.m. – 12 p.m.
Phone:
509-783-1574
Admission:
$20 in advance, $25 at the door, $150 for a table of 8
Mother's Day Brunch

Mother’s Day Brunch

Location:
Clover Island Inn
Address:
435 Clover Island Drive Kennewick, WA 99336
Times:
9 a.m. – 1 p.m.
Phone:
509-585-1267
Admission:
Other

Adult:
$24.95
Child:
$12.95
Senior:
$21.95
Website:
Click To Visit Website

Mothers Day Brunch at Tagaris

Location:
Tagaris Winery
Address:
844 Tulip Lane Richland, WA 99352
Times:
11 a.m. – 5 p.m.
Phone:
509-628-0020
Admission:
Free

Website:
Click To Visit Website

Hope you all have a wonderful and blessed Mother’s Day!!!!

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FHA To Make Permanent Mortgage Insurance

Posted on May 3, 2013 by Erin Johnston

Next month, the Federal Housing Administration plans to build up it’s finances by requiring anyone receiving a FHA loan with less than 20% down to carry mortgage insurance for as long as they have the loan. Previously it was only required to carry mortgage insurance until the loan balanced reached below 78% of the home’s value, when it could be cancelled.

As the largest low down loan insurer, the FHA is using this new rule as a big part of a larger plan to boost it’s finances. A smaller boost will come from last months raised mortgage insurance premiums to an average of 4.7%. These changes among others are estimated to lock in $10 billion in the next three years.

To see the full article: http://finance.fortune.cnn.com/2013/05/02/fhas-solvency-plan-isnt-fair/?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29

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The Five Year Rule

Posted on May 1, 2013 by Erin Johnston

One thing you should always ask yourself before you purchase a home is how long you plan on living there. The answer to that depends on your geographic area as well as the neighborhood you intend to purchase in. The recommended time is to stay in the home for at least 5 years. The reason behind this is if you do not you will probably end up losing money. The first area you’ll end up losing in is closing costs. Every time you go through closing, whether you are a buyer or seller, you will have to give out money. The second area you would lose financially in is the mortgage payments themselves. The way a mortgage works is you pay the most interest in the first few years you own the home, only making enough progress on the actual principle after roughly 5 years to not end up losing money when you sell. If you can, you should wait 5 years before resell and you should get a better return on your home.

Although 5 years is the recommended time, there can be exceptions to this. As most people tend to purchase a house that is towards the upper end of what they can afford, they tend to just pay the regular payments. However, if you buy at the lower end and toss in extra payments you will pay down your principle faster allowing you to get a bigger return as well as sell sooner than the recommended 5 years. You could also buy a home you know you don’t plan on staying in long term, pay it down, fix it up and then rent it out. Before you do this you should be sure you are financially set up enough to handle both mortgages in case you are ever without a renter.

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15 Year Mortgage Rate Lowest Ever

Posted on April 26, 2013 by Erin Johnston

According to a weekly report from Freddie Mac, this week the mortgage rate for a 15 year fixed-rate mortgage hit an all-time low of 2.61%, down from 2.64%. This new low beat out the previous record of 2.63% recorded in November of 2012. Also hitting record lows this week was the adjustable-rate mortgage (ARM) 5/1 with a rate of 2.5%.

This new rate for the 15 year mortgage means homeowners could potentially save substantial amounts through refinancing their current 30 year fixed rates. Those who have a 5% 30 year fixed loan and switch to a 2.6% 15 year loan would only pay $21,000 in interest for every $100,00 borrowed instead of the $93,000 interest on a 30 year fixed mortgage.

Although the 15 year fixed has hit record lows, the 30 year fixed-rate has actually risen slightly by 0.09% above its record low, coming in at 3.4%. Roughly 75% of last week’s loan applications were for refinancing.

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