What Happened with Housing in January and What to Expect
Properties For Sale, what I look for, are you looking at them the same way?
Every day I am looking at properties, for my clients (Buyers & Investors) all over town from Capitol Hill heading South thru Mt. Baker, Seward Park and then West to West Seattle and then NW, to Magnolia and Ballard. Don't get me wrong; I hit a lot more neighborhoods besides these.
What I saw and continue to see from some other Brokers is disappointing; these are listings that come on to the market and they are not prepared for the buyers. The sellers have one opportunity to make a first impression and when I walk up the house and grab onto a post to open a gate and the post is wobbly, I loose trust, then I say, well let’s see maybe that was overlooked. Then I see other items that make me nervous and concerned. These are minor items such as cover plates missing off electrical devices and poorly executed finishes. These are items that should have been addressed prior to putting this home on the market. Why? If these are not an issue then these items don’t turn off people.
As a professional I am coaching my clients on getting the best return for their investment and this means installing cover-plates on switches and receptacles, fixing a wiggly post for a fence and dealing with a heap fix to meet a code issue. Oh I forgot to mention, the house smelled! I work hard for my clients and my clients know that when I ask them to do something, they know it is in their best interest, not mine and for them to maximize their return, they do what makes sense.
I can see that several items feel thru the cracks for this listing, and I don't know where it was but I am glad to say I am thoroughly disappointed in what I saw. I saw another property that was on the market for a while and I can say the pictures online look great! The in person comments are, peeling paint and cracks in the walls. For a fixer upper, not a problem, but overpriced is what we see and this will attract the low ballers.
Look at the listing as what the buyer will see, the “Buyers Eyes”. Remember if a buyer sees items that don't look good, they start thinking what else is wrong with the house?
Don’t let the buyer drive the price down, get the price up.
Let me know if I can help you.
Tom Fine
Windermere RE, Capitol Hill, Inc.
What Do Buyers and Sellers Pay in Closing Costs?
If you’ve never been through a real estate closing before, you might imagine convening around a large table where, at the end of escrow, you’re presented with an itemized list of big expenses required to close the deal.
But that’s not always the reality. While people still do meet around a table at the closing, today some closings happen virtually. The buyers and sellers can sign the necessary documents remotely and wire money for the closing.
More importantly, it’s unlikely that a buyer or seller would show up to closing without any idea of what their costs will be. If you’re new to real estate, or haven’t bought or sold in a while, here’s what you need to know about closing costs.
Buyers have more costs, but usually pay less than sellers
In a closing, both buyers and sellers have costs. Usually, the buyer is faced with more line-item expenses than the seller. For starters, most buyers are getting loans to make the purchase; many of the charges stem from the loan.
A buyer should receive a “Truth in Lending” statement early on in the sale process. This document spells out all the approximate costs the buyer will face when making the purchase, so there aren’t any surprises at closing. Some buyers use the “Truth in Lending” statement to shop for different lenders, interest rates and costs.
Aside from the costs of getting a loan or buying a home, some expenses, such as property taxes orhomeowners association dues, are pro-rated and paid at the time of closing. For example, if you’re buying a home and you close toward the end of the property tax period, you’ll likely need to pay the balance of taxes upfront. The same holds true for pre-paid loan interest. If you close toward the end of the month, the lender may ask for the first month’s payment upfront.
Typically, buyers getting a loan will see some of the following costs:
- Appraisal fee
- Origination fee
- Pre-paid interest
- Pre-paid insurance
- Flood certification fee
- Tax servicing fee
- Credit report fee
- Bank processing fee
- Recording fee
- Notary fee
- Title insurance
Be sure to go through these fees line by line with your mortgage professional to understand exactly what they are and how they apply to your loan.
Sellers pay the commission
For sellers, there are always fewer line items on an estimated closing statement. But the seller generally bears the biggest brunt of the fees: the real estate commission.
The commission is based on a percentage of the total sale price, so it tends to be the biggest fee. In addition to the real estate commission, sellers may have to pay the balance of their property taxes, if they haven’t done so already.
There’s some room for negotiation
All fees and charges can be negotiated during the real state transaction. For buyers, coming up with an extra 1 to 2 percent in closing costs can be a bigger deal than a $5,000 reduction in the purchase price. A credit for $5,000 to go toward closing costs will be a much bigger bang for your buck for the buyer. The price reduction won’t amount to much more than a few dollars per month over the length of the home loan. Saving $5,000 at the closing will be money right back in the buyer’s pocket.
Related:
- Ways to Get Creative in a Real Estate Transaction
- Why Real Estate Listing Photos Matter
- The Anatomy of a Real Estate Purchase
Brendon DeSimone is a Realtor and a real estate expert. His practical advice is regularly sought out by print, online and television media outlets including FOX News, CNBC, USA Today, Bloomberg, FOX Business and Forbes. An active investor himself, Brendon owns real estate around the U.S. and abroad and is licensed to sell in California and New York. Consumers often call on Brendon for advice and to help them find a real estate agent. You can find Brendon on Facebook or follow him on Twitter or Google Plus. posted on Zillow Blog
How to Sell your Home, Several Simple Steps to Increase the Value of you Home
This is scary, challenging and exciting all at the same time. The thought of selling your biggest investment. Well being wise and realistic you'll do fine. I knw you're thinking you can do the FSBO, of course as a realtor I don't believe in FSBO (For Sale By Owner), here you have your biggest asset and you have a fulltime job and know you are thinking of taking on this huge endeavor, is this smart? Do you know how much time it will take? Do you have experience in selling a home? Marketing a home, Interacting with potential buyers? Do you know what to say and how to close the deal or negotiate? What are these values worth?
The right realtor will make the cost of their services pay off, they will make you as much money as possible and will engage with potential buyers and buyers agents. Well let's get down to why you are here.
Here are some steps to get your home prepared for selling for the maximum amount.
1. Curb Appeal, this is the first impressions a potential buyer will see your home, beside the pictures online. Clean the yard, make the yard attractive, simple plants and bark in the beds can make your yard stand out from other homes for sale.
2. The first thing to do is to declutter your home, this means getting rid if all the excess items, possibly too many chairs in the living room, too much furniture is a turn off. The rooms should feel larger and by minimizing them, making the rooms look clean, larger this will give the rooms more volume. Clean your home, this means dusting, washing windows, this means deep cleaning and keep it clean, you never know when a potential buyer will want to see your home.
3. Make necessary repairs, do a walk thru and look at everything and make a list, that is what a good inspector will do and you'll loose money on the house if there any issues. Once you have the list, prioritize the list and go over the list with your realtor, they can help make key judgments on what should be repaired or replaced.
4. Prepare a list of what you like about the house and what repairs and improvements you've made on the property.
5. How about another list of what shops, restaurants and other great places are around your home that buyers can associate with and can see the proximity of these places. Anything special like this: "Look thru Living room window to see the Space Needle", "Walk to the Waterfront", "Pike Place Market are within walking distance from the house".
6. Once you hire a realtor to represent your home, they will provide a CMA, (Comparative Market Analysis) which will have comparative properties to provide you with a good idea of what your home is worth and what price range the home can sell for. A realtor is here to provide you with details and information and it is your job top make the decision on price from t he information they have provided. It's important to try to leave the emotion out of this process and try to look at it as a business transaction. i know that's tough, but emotions get in the way of a realistic price. Emotions increase the price. Keep your emotions out, be realistic what your home is worth, otherwise it's a waste of time to try to sell an overpriced home
7. Tell your friends and neighbors that you are selling your home, word of mouth is an incredible power full source, utilize it. Spread the word.
With the right presentation and price and terms, it should sell fast in the right market.
Good luck on your home sale and I hope you do well.
Contact me to help you sell your home.
Tom Fine