Winter landscaping to sell

Experienced landscapers will tell you that preparing your yard for showing during the winter months is a challenging project. The greenery is lacking, the days are shorter and the weather can wreak havoc. With that said, when it comes to home staging, real estate agents will tell you that staging your home in winter is extremely important.

Make use of natural light.

As often as possible, show your home during the daylight hours. If you show your home after work in the winter, you’ll be totally in the dark and potential home buyers won’t be able to see how your landscaping adds to the curb appeal of your home. If you must show your home at night in the winter months, turn on all the lights so your home invites potential home buyers in, despite the dark.

Take advantage of scents of the season.

Set the scene and help the buyers see themselves living happily in your home. Consider placing a basket of cinnamon-scented pine cones by the entryway. Once potential home buyers are inside, offer them coffee or hot chocolate so home buyers feel cozy and warm. Set your lights on timers. You can’t be home all the time and you want your home to look warm and welcoming whenever prospective buyers drive past. Put indoor and outdoor lights on timers. Inspect the outdoor lighting around the door. Is there enough light to make it feel inviting and safe? If not, get the fixtures changed or have new ones added.

Clear out the ice and snow.

The top tip from home staging services and real estate agents: If the potential home buyer can’t get in easily, the house won’t sell. As stated above, this means keeping walkways and driveways free of ice and snow.

Prune those trees and bushes!

In winter, while deciduous trees and shrubs are dormant and without leaves, is the best time to prune. Don’t let overgrown vegetation block the windows or path to the entrance. Cutting back shrubs and tree limbs will let the sun inside and showcase the exterior of your home. Be cautious, though, and don’t overdo it! No potential home buyer wants to see a tree with no branches. If you don’t understand proper pruning, hire a professional to do it for you!

I have an accepted offer. Now what?!

Congratulations on finding the home of your dreams and making it through the offer process.  Now comes the challenging part – getting through the loan approval process.

As soon as your offer is accepted by the selling party, your loan application will go in to the underwriting approval process.  This could take as little as two weeks and as much as two months and is often the most stressful part of the home buying process for the buyer.  Unfortunately, most buyers will now begin to hear scary stories from their friends and family, based on their own experiences with the lending process.  Scarier still, the idea of having to find temporary housing or putting your belongings in storage if/when the loan does not come through on time.  Fear not!  There are some tips and ideas that you can look to so that you can get through the closing process as quickly as possible.

First, know how much you can spend on a home.  The lender will tell you how much you should qualify for but it is important for you to also look at your monthly budget and make smart decisions.  How much are you paying for rent now and how much more can you feasibly stretch for a mortgage? 

Second, know your credit score and be aware of any credit-related challenges you may face.  There are several free resources to go to when pulling your credit report.  Be sure to do this well in advance of applying for your home loan.

Provide your financial information as soon as possible and be honest about anything that may be seen as a red flag to lenders.  If you know about it, they will soon know about it and it is better to head it off early.

Turn over paper and electronic copies of your financial documents, including recent tax returns, bank statements, title work for vehicles and other property, etc.

Be in constant communication with your lender and their team.  Asking if there is anything else you can provide and being proactive may prompt them to move your file along faster.

At the end of the day, you will have to rely on this team of professionals that you have chosen to work with to get your loan application to approved status and on to the closing table.  With that said, being prepared and organized will go a long way towards getting this done on time and with the best results.

Why you need a REALTOR when presenting an offer to a Seller

In today’s Internet age and with such easy access to information, it is easy to see how the average consumer could feel comfortable handling a real estate transaction by themselves.  With that said, it makes perfect sense that they would be a little nervous at the idea of negotiating the home price in this turbulent economy!  The art of negotiation is a tricky one and having a firm grasp on it can be the difference between a great deal and several thousand dollars out of your pocket unnecessarily. 

The first hurdle in negotiating: Be prepared with the right data

The most important information you can have when preparing an offer is a CMA or Comparative Market Analysis.  A CMA is an analysis of the most recent pricing of “like” sold homes in the area.  While there are many places for you to find a small part of sold home information online, only a licensed REALTOR can provide information on everything involved in the transaction, including credits to the Buyer, commissions paid, etc.  Most importantly, a real estate agent can make sure the homes included in the analysis are the best matches to the home of interest and also speak intelligently to the impact of local short sales and foreclosures in the immediate area. 

The second hurdle in negotiation: What is the Seller’s motivation?

Once you have handled the question of price, it is pretty important to figure out what is the reason behind the sale?  When you are a lone Buyer handling this process on your own it can be hard to pick up the clues and figure out what is going on.  A trained real estate professional can usually shed some light on the story by having a series of conversations with the Selling agent.  In most situations, a Selling agent is not likely to relay this information to an un-represented Buyer and furthermore, they are not required to do so.  Why does motivation matter?  You need to know if you are dealing with a “must sell” or “would like to sell” situation.

The final hurdle is time: Be respectful of others’ time and your own.

You may be quick to think that presenting a low ball offer is the best way to see if a Seller may bite.  In fact, it is the fastest path to making them believe you are not a serious Buyer and will only delay the process.  At the same time, Sellers who are unwilling to make concessions based on the market comparables may not be serious Sellers, either.  In real estate, every minute matters when it comes to getting the home you want under contract.  Don’t waste your time or others with offers that are not reasonable. 

Negotiation is an art and a science.  Licensed REALTORS have the skills and experience to guide you through this process.  As a Buyer, this representation is free to you in most cases, so why not make it easier on yourself and possibly save yourself some money in the long run?

Why you should list your home for sale during the holidays

Now that Halloween is behind us, the holidays are just around the corner.  You are probably beginning to plan your menus, visits to see family and what presents are on your shopping list.  The last thing that would ever come to mind is the idea of selling your home and moving to a new one, right?  Surprisingly, the holidays are one of the best times of year to put your home on the market and for eight really good reasons.

Less competition:

During the winter months there is less inventory on the market, which means you have less competition for Buyers and your sales price is likely to be higher due to that lack of competition. 

Quality of prospects:

Winter Buyers are more serious Buyers!  Just as you were cautious about listing your home for sale during the holidays, Buyers have to decide if they want to go through this process during one of the busiest times of the year.  If they are in the market to buy during the winter months, chances are they are motivated to purchase and not just look.

Picture perfect:

Let’s be honest, your home looks a lot better during this time of year!  Because of the entertaining factor, your home is probably kept cleaner than usual and you have all your pretty holiday décor on display.  If you are going to let people see your home, it may as well be when you already have it in tip top shape.

Statistics:

Statistically speaking, your odds of selling are higher during these months.  One of the highest percentages of listings taken to listings sold occurs during this time of year.

Transfers:

January is typically the biggest transfer month and you must have your home listed in order to capture this market!

Delayed closing:

By selling now, your chances of a delayed closing or extended occupancy until after the first of the year are good.  The Buyer probably doesn’t want to move just yet, either.

Timing:

By selling your home during the winter months, you have an opportunity to buy your next home at the beginning of the spring selling season, when inventory is fresh and plentiful.

Fewer showings:

You will probably have less showings this time of year, but the quality of the Buyers will be better.  The best part about that is that you will be inconvenienced by showings less often!

As a real estate professional, I have this conversation with my clients every year.  It is not uncommon to be worried about taking on such a big task at the end of the year, but the good news is that you have my team and I in your corner to take care of the big details!

How long will it take to sell my home?

In the last few years, the average time it takes to sell a home has increased quite a bit.  Mostly due to the credit lines tightening up and unemployment rising, Sellers have to be more competitive and more flexible than ever before to get their home sold in a reasonable amount of time.

What affects the average time on the market?

Price: An asking price that is too high can drastically impact your ability to sell your home quickly.  Your real estate agent can provide you with the most recent comparable sales in the area and information on the local market so that you can make the best initial decision on list price.  If you choose to ignore their advice, you risk being on the market longer than you would like and may end up selling for less in the long run.

Condition: If you think it should be repaired, replaced or spruced up, you are probably right.  Fix all nail holes, carpet stains, get rid of odors and pet stains.  Clean your house from top to bottom, windows and doors included and de-clutter.  The less Buyers have to look at in your home the more they are able to envision themselves in it.

Region: Markets around the country vary considerably.  For example,Las Vegas,MiamiandDetroithomes sales average several more months on the market than home sales in Dallas orWashington,D.C.

Location: You’ve heard it before.  Location, location, location!  This will go a long way to determining how quickly you may be able to sell.  Homes that are adjacent to or back up to busy streets, power lines, commercial property, etc. are going to have a more difficult time selling their home and often times, a price reduction is necessary.

Flexibility of the Seller: In a soft market, it is so crucial for a Seller to be flexible when it comes to showings, Buyer requests and of course price. 

Type ofSale: Obviously, a short sale or foreclosure sale is going to be more involved than a straightforward sale and therefore will take more time.  In some cases, as much as six months to a year longer on a short sale property. 

By taking all of these factors in to consideration and remaining as flexible and patient as possible you will get your home sold.  Just remember…it only takes one Buyer!

Home Inspections – Need to Know

When you hire a professional home inspector, it is okay that you really don’t know what it is you are supposed to be looking for, that is their job.  They will help you find the Seller’s dirty little home secrets and make recommendations on how to address them.  If you choose to go it alone, here are some tips for what to look for.  However, we suggest professional home inspectors because their extensive knowledge is usually worth the cost in the long run.

Things to Look For in Home Inspection

 

Buyer Home Inspections – Tip 1: Check structural aspects

Structural aspects include the foundation, support structures (like beams), and framing, among others. Cracks in the foundation, improper structural engineering and things that could potentially make the home unsafe will all be evaluated. Some people ask, Should I get a structural inspection in addition to a general home inspection? If your general home inspector finds any structural issues, you might want to get a specialized structural engineer to do a home inspection.

 

Buyer Home Inspections – Tip 2: Inspect plumbing

Does this property have water and gas supply lines with the proper shut-offs? How is the water pressure? Could there be anything potentially hazardous, or even just plain inconvenient, with the drainage and functional flow of liquids? Your home inspector will be able to tell you.

Buyer Home Inspections – Tip 3: Examine heating, cooling and ventilation systems

There is a lot of hype surrounding super-efficient heating and cooling systems these days, so HVAC is often in the news. During your home inspection, all of the home’s controls and thermostats, filters, ductwork and pumps will be examined so you can decide if you want or need to keep what comes with the home purchase, or if you’re going to upgrade.

Buyer Home Inspections Tip 4: Inventory major appliances

Not all new homes come with their appliances, but most will even if they aren’t stainless steel. From washers and dryers to ceiling fans and microwaves, you will have a complete evaluation of what works, what kind of works and what didn’t pass inspection. If you are buying a house that is a short sale and foreclosure, and the appliances have been removed, the home inspector can help ensure there was no damage when the appliances were removed.

Buyer Home Inspections  Tip 5: Scrutinize the roof

Roof inspections cover the materials used, chimneys, all the gutters and downspouts, and the things they refer to as flashed penetrations, which include vents and skylights. With an inspection, you’ll have a better idea if you’ll be spending autumn months digging goop out of your gutters, and if those pretty cedar wood shingles are as flammable as they say they are. But most importantly, you will know approximately how long before the roof will need to be replaced. If you are negotiating after a home inspection, roof issues are one of the most expensive items to fix or replace.

Buyer Home Inspections Tip 6: Don’t forget attics and exterior components

Insulation? Check. Ventilation? Check. Crawl spaces? Check. All these hard to reach places are key components in a home inspection. And with a professional home inspector, he is the one crawling and climbing into these less than desirable places.

Buyer Home Inspections  Tip 7: Wiring and breakers

If you are wondering, How do I do my own home inspection ask yourself whether you really know enough about electrical wiring to ensure your new home is safe. At the very minimum, you want to know: Is anything going to explode or catch on fire? And if it does, are there working smoke detectors? A professional home inspector will also let you know if the electrical wiring is up to code.

What to Expect During a Home Inspection

Your home inspection should take a few hours, depending on the house size and number of accessories. Many times, you’ll be invited to tag along, so the home inspector can verbally explain what he or she is looking at and for. In addition, you’ll be given a detailed, written account of everything within a couple of days of the inspection. Some of the more tech-savvy inspectors take photos or videos of issues and supply electronic files along with a written report.

There is really no set rate for buyer home inspections. Most will cost at least a few hundred dollars depending on the region, size of home, age of home and extras such as septic systems and wells, but it is worth it not to cut corners and miss out on a good inspector.  For a list of reputable home inspectors in the area, please contact me at charles@edmondhomes.com.

How to avoid capital gains tax on the sale of your home

There are many tax breaks available to homeowners. The Department of the Treasury, Internal Revenue Service Publication 523 explains how to avoid capital gains tax after selling your home. In 2010, you may be able to avoid capital gains tax on the sale of a home up to a profit of $250,000, or $500,000 if you are filing a joint return. If you can exclude all of the capital gains on the sale of your home, you do not need to report the sale on your tax return. Any capital gains that cannot be excluded are taxable and must be reported on Schedule D (Form 1040).

The IRS defines your main home as the one in which you live most of the time. To avoid paying capital gains tax after selling your home, you must have owned and lived in the property for at least two years during the five-year period ending on the date of the sale. These two-year periods of ownership and use do not have to be continuous nor do they have to occur at the same time. In order to avoid capital gains tax after selling a home, the two-year periods of ownership and use only have to both occur within the five-year period before the selling of your home.

If you sell the land that your home sits on, but don’t sell the home, you will not avoid capital gains tax on the sale of the land. Internal Revenue Service Publication 523 also explains the criteria for avoiding capital gains tax on the sale of vacant land.

Some taxpayers can avoid capital gains tax after selling a home when additional conditions exist. Exceptions to the ownership and use tests exist under the following conditions.

• There is an exception to the use test in the five years prior to selling a home for individuals with a disability. If a person who has owned or lived in a primary home for a total of at least one year becomes physically or mentally disabled and cannot care for him/herself, the time that he/she lives in a facility licensed to care for people with that disability can count as time lived in the primary home. In order to avoid capital gains tax after selling a home, the disabled person must still meet the two-out-of-five-year ownership test.
• If your previous home was destroyed or condemned you can avoid capital gains tax when selling your replacement home if the ownership and use of the combined homes meet the two-out-of-five-year exclusion.
• If you are a member of the uniformed services or Foreign Service, employee of the intelligence community, or employee or volunteer of the Peace Corps you may be able to avoid capital gains tax after selling a home by having the two-year period of use suspended during qualified official tours of duty of either you or your spouse. By suspending the period of time you were on extended duty you may be able to qualify for the two-year use test even if you did not live in your house during the five-year period prior to the sale of the home.

 

Top 10 Tips When Selling a Home

Selling a home in this economy can be a painstaking decision. Use the following 10 tips when selling a home to get the most out of your investment.  Contact us to get started in listing your Edmond, OK area home.

Home Selling Tip #1: Hire a reputable real estate agent.

Selling a home can be stressful, and you want a reliable real estate agent you can trust to take some of the burden of selling a home off your hands.

Home Selling Tip #2: Give your home curb appeal.

When selling a home, you need to keep your home looking its best. If a buyer is turned off by what your home looks like from the street, you will never get him or her inside to look around. Clean up your lawn, patch brown spots in the grass, clear sidewalks, and keep leaves and other debris picked up. Potential home buyers also notice things like chipped paint and dirty siding, so pressure-wash your home and repaint before putting it on the market if needed. Do whatever you need to do to show buyers that you’re serious about your home’s maintenance. Finally, let color help you when selling a home. Yellow evokes the emotion of buying, so plant yellow flowers near the entrance.

Home Selling Tip #3: Make minor repairs to your home.

Don’t give potential home buyers an opportunity to start nitpicking at the value of your home by leaving minor repairs unfixed. Replace cracked floor or counter tiles. Patch holes in walls. Fix leaky faucets. Fix doors that don’t close properly and kitchen drawers that jam. Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls. Replace burned-out light bulbs.

Home Selling Tip #4: Stage your home.

Once you have a potential home buyer inside, it’s important that your home has been spruced up and has been staged for the market. Think of your home as a product for sale, and imagine walking through it from the buyer’s perspective. Depersonalize it by packing up family heirlooms and photos. You want buyers to imagine themselves living in the home and they won’t do that if they can’t see past your stuff. Rent a storage unit and clear out the junk. De-clutter. Remove unused pieces of furniture and window coverings and light fixtures you are going to take with you. Each room should be left with just enough furniture to showcase it as the perfect room for its purpose. Remove books, knickknacks, and anything that seems deeply personal. Clear out closets and neatly arrange your dishes in the kitchen cupboards.

Home Selling Tip #5: Clean your home!

Wash windows inside and out. Clean out cobwebs from corners, ceiling fan blades and light fixtures. Re-caulk tubs, showers and sinks. Polish chrome faucets and mirrors. Clean out the refrigerator. Vacuum daily. Wax floors. Dust furniture with an oil-based furniture polish that leaves a ôcleanö scent behind. Bleach dingy grout. Remove or replace worn rugs. Hang up fresh towels in the bathroom. Eliminate any musty odors.

Home Selling Tip #6: Price your home right.

Of all of the 10 tips for selling a home, this one is the most important. You need to price your home competitively, perhaps slightly lower than comparable homes in your neighborhood. Unfortunately, many sellers choose the real estate agent who suggests the highest listing price, but this can come back to haunt you. Pricing your home to sell involves looking at similar properties, making adjustments for the differences between them, tracking market movements and considering present inventory to arrive at a realistic value for the price of your home. Setting your listing price just right could lead to a bidding war, resulting in a higher sales price for you. Work with your listing agent to price your home correctly.

Home Selling Tip #7: Capture initial excitement.

Don’t put your home on the market before your home and you are completely ready. Make sure you have taken all of the steps above before placing your home on the market. When selling a home, you need to get the most out of the initial excitement that a new home listing creates in potential home buyers. Home buyers will feel like they have discovered a great find if they snatch up a home just as it comes on the market. Once it’s been listed for a few weeks, however, home buyers will conclude that it’s not such a great value. Therefore, when selling a home, make sure you’ve done everything you can to make your home attractive to potential home buyers.

Home Selling Tip #8: Don’t get in over your head.

Put your home on the market well in advance of looking for a new home. Don’t place an offer on your next home until you have solid offers on the one you have to sell now. The last thing you want to do is juggle two mortgage payments.

Home Selling Tip #9: Only divulge information on a need-to-know basis.

Don’t do anything to create a perception that you will lower your potential selling price. For example, if you are moving due to job relocation, don’t offer up that information. Don’t let the potential home buyers think there is any urgency on your part in selling the home. If you are asked why you’re selling, simply say that you’re ready to trade up. You have a legal obligation to disclose information about the condition of the home and property, but you are not obligated to disclose your personal situation.

Home Selling Tip #10: Be flexible.

Be willing to work with potential home buyers to help your chances of making a quick sale. Offer to pay for closing costs or repairs, and be adaptable when it comes to showing your home and holding open houses. If you really need to sell, you need to accommodate buyers’ busy schedules. This might mean opening your home to strangers on weeknights and weekends.

Using these 10 tips when selling a home can help you sell your home fast and for a good price. Do you have any additional home selling tips you’d like to share? Please comment and let’s make this top 10 list even stronger.