May 18, 2009
Unlike an automobile, you can’t test drive a home before you purchase it (unless you get on TV). You have to base your decision on other factors such as layout, condition and much more. And, of course, the seller is obligated to disclose the property’s condition that may alert you to issues such as previous mold, defective water heater or leaky roof. Yet, that still doesn’t always paint the entire picture. Here are six questions you should consider asking the seller to gain negotiating power and additional insights into your dream home.
1. Why is the seller selling the house?
This question may help you evaluate the “real value” of the property. Is there something about the house the seller does not like? If so, you may be able to adjust the purchase offer accordingly.
2. How much did the seller pay for the home?
In some instances, the answer to this question may help you negotiate a better deal. However, it is important to remember that the purchase price is influenced by several factors, like the current market value and any improvements the seller may have made to the home. The original purchase price might not have anything to do with the current value of the house.
3. What does the seller like most and least about the property?
By asking the seller what he or she likes most and least about the property, you might get some interesting information. In a few cases, what a seller likes the most about a home might actually be something the buyer is looking to avoid. For example, if the seller describes his house as being in a “happening neighborhood,” the buyer might consider this a negative factor because the area may be too noisy or busy for his or her taste.
4. Has the seller had any problems with the home in the past?
It is also a good idea to ask the seller if he or she has had any problems with the home while living there. Has the seller had problems with a leakage from the upstairs bedroom in the past? If so, even if the leak has been corrected, the floor and walls around the bathroom might have been damaged. You should check that these items were repaired properly.
5. Are there any nuisances?
Use this question to find out about barking dogs, heavy airplane traffic or even planned changes to the community, such as a planned street widening. This may give you insight on why the seller is really moving.
6. How are the public schools in the area?
Because the value of a community is usually greatly influenced by the public schools in the area, finding out the buyer’s perception can give you some insight about the quality of the area’s schools.
Knowing all you can about a prospective home will help you make a more informed decision as well as offer.
April 25, 2009
A sale can be made or lost as a direct result of your home’s curb appeal. When it comes to selling your home, the first impression is probably the most important impression. If the outside of the property doesn’t create interest or appear well-maintained, a buyer may choose to not even come inside the home. Here are five ways to create curb appeal.
Paint and polish. A fresh coat of paint breathes new life into a tired-looking home. If your home looks dull or suffers from peeling, cracked or chipped surfaces, a paint job is a great investment. Polish the doorknocker and mail slot on the front door, as well as any light fixtures by the entry. Re-condition your deck. Consider renting a power washer to clean dirt and mildew from the wood, and then apply an all-weather sealer or stain.
Manicure the grounds. Mow and edge the grass, and trim the trees and bushes. Also, clear away dead leaves and flowers, and mulch and weed the beds. Check to see that tree branches are not touching the home’s roof or outer walls. Add some color to your landscape by planting annuals and placing planters of flowers in strategic spots. You can even spruce up the property by hanging flowering baskets. Add flowering plants in the back yard, too.
Make needed repairs. See if anything is unhinged, loose or just an eyesore. Fix everything including broken fencing, windows and screens. Make sure winter’s cold weather didn’t leave any gutters sagging or loose. Replace any missing shingles from the roof. Try the doorbell. Check stairs and railings. Test doors for squeaks and rusted hinges. Don’t forget to take a critical look at the property at night. Make sure the lights work, and replace dim and burned-out bulbs.
Unclutter. Tidy up the deck, patio and back yard. Rearrange the outdoor furniture to look inviting. Put away gardening tools and toys. Clean up the barbecue area. Eliminate any “evidence” of pets, and restrict them to the back yard when showing the home. Move extra vehicles from the view of passersby.
Clean. Clean the windows, inside and out, wash down the walks and driveway, and hose down the siding. Clean outdoor furniture and cushions. Check for oil spots on cement surfaces, especially the garage floor.
The old saying about making a good first impression couldn’t be truer than when you are selling your home. Even the smallest enhancements can make a big difference in creating love at first sight for buyers.
March 6, 2009
The last step in the home buying process is what we in real estate commonly refer to as “the closing.” The closing is when all the progressive steps in buying a home from the acceptance of the offer, title search, home inspection, mortgage approval, and so on, come together in a final transaction. The documents are ready to sign, the buyer is ready to hand over the purchase price and the seller is ready to transfer title—and most importantly the keys!
Usually held in an office setting, either the seller’s lawyers office or the title company. I have been to some closing that last only 45 minutes and other that can last more than 3 hours. The closing might be attended by some or all of the various parties in the process: the buyer, seller, real estate sales professionals, attorney, and title-company representative.
What goes on during the closing? The buyer reviews and signs loan and real estate documents, as well as pays for the property, closing and other costs. One such loan document is the federal Truth-in-Lending disclosure form which describes the annual rate of financing (APR), finance charges, amount financed, total of payments and the payment schedule. There will also be a form itemizing what your monthly payment consists of including the principal, interest, taxes, insurance and other monthly charges. If everything is in order, the buyer signs the loan papers.
Real estate documents are just as important. There’s the HUD-1 form, which you have the right to inspect at least one day before the closing. This statement itemizes services provided and the fees charged for the entire real estate transactions. There will be a breakdown of the seller’s and buyer’s (borrower) financial obligations. Some of the charges include appraisal fee, credit report fee, loan origination fee, loan discount (points), title insurance fee, government recording fees, PMI Premium, inspections and attorney fee.
Other real estate documents that may be reviewed and/or signed include title documents, warranty deed (which transfers the title of the property) and other reports.
Assuming that the funds are in order, the deed is correct and the title is clear, the final step is the disbursement of funds to the seller for the purchase price of the home. The title company should already have the loan funds in its possession, but the buyer will need to bring a cashier’s or certified check for the down payment and the closing costs if it was not included in the mortgage loan. If the buyer’s annual real estate taxes and homeowner’s insurance will be paid through the lender, an escrow account will also be established.
Once all the papers are signed and funds are disbursed, the buyer receives the keys and is now a homeowner!
March 5, 2009
In today’s real estate market, the mortgage rules seem to be in constant flux. Here are some common credit questions that will help you make sure you are positioned well to get that home loan (or any other loan for that matter).
Will ordering my credit report negatively affect my credit score?
No, it will not have a negative impact on your score. The most important factor to your credit score is your credit history. Do you pay your bills on time? Are you maxed out on all your credit cards? Do you have a long credit history?
I just found an error on my report, can that be changed?
Yes, it can. You can try to write the company yourself with proof of the error. You can also request that your mortgage broker write a letter on your behalf. The Department of Housing and Urban Development also has credit counselors available to answer your questions.
Where can I see my credit report?
Every year you can get a free credit report from the three major credit bureaus. They are Experian, TransUnion, and Equifax. According to the FTC website, www.annualcreditreport.com is the only authorized online source for a free credit report under federal law.
I have a blemish on my credit report; can I get it removed fast?
Unfortunately, no. Time is the only thing that will remove bad credit from your report (unless it was put there in error). The FTC requires the bureaus to keep your credit information current for the last 7 years. After 7 years the bad credit blemish will “fall off” your report (10 years for a bankruptcy).
How to I get a better credit score?
Well, it’s easier said than done these days. You can reduce your debt and pay your bills on time. When a lender looks at your debt to income ratio, they like to see it below 36%.
February 11, 2009
It’s not surprising that two of the most popular rooms for home makeovers are the kitchen and bathroom. When I am out with buyers 
searching for homes, they generally are more attracted to homes with updated kitchens and baths. These same rooms rank high in return on remodeling investment at resale, according to Remodeling Magazine’s Cost-vs-Value 2008-09 Study.
However, both can be pricey ventures. According to the same study, the national average for minor kitchen remodel was $21,246. A sample remodel at this cost includes replacing cabinet fronts, flooring, laminate countertops and oven and cooktop; installing mid-priced sink and faucet, adding wall cover and repainting trim.
The national average for a mid-range bathroom remodel was $15,899, which included replacing fixtures, installing a porcelain-on-steel tub, new shower and ceramic tile flooring.
If you’re like many consumers today, you are more budget conscious and may not be able to afford thousands of dollars on a remodeling project. Here are some alternatives that will give your kitchen and bathroom a fresh, modern look without breaking the bank.
Kitchen
- Cabinets—Give your cabinets a fresh look by either refinishing or refacing the fronts at a more economical cost than buying new ones. You can even take the center face out and install a glass front.
- Hardware—Replacing your cabinet knobs and drawer pulls, can give your kitchen an entirely new look.
- Paint—A fresh coat of paint is always a sure bet. And it is one of the least expensive ways to give a room a makeover.
Countertops—The price of natural quartz or stone countertops can quickly eat away your kitchen remodeling budget. Less expensive, yet still attractive alternatives are solid surface materials such as Silestone® or granite and ceramic tiles.- Faucets and Sinks—Add a fresh new look by replacing your sink and faucet with a high-arched spout in an updated finish, such as brushed nickel, brushed chrome or stainless steel.
- Backsplash—Another option to modernize your kitchen’s look is adding a backsplash. But rather than having ceramic tiles, consider creating a mosaic with ceramic or glass or install a faux backsplash panel.
- Window treatments—Switch out older valances with options that let the natural light in.
- Lighting—By adding under cabinet lights or even track lighting, you can create a dramatic look to your kitchen.
Bathroom
Paint—As with the kitchen, a new coat of paint is a low-cost way to renew a room’s look.- Showerheads—Change out old showerheads with a new rain showerhead.
- Shower Doors – If you still use shower curtains for your bathtub, you can update the look by installing glass doors. Frameless doors are preferable. However, if the walls aren’t flush to the tub area, framed doors will still give you the modernized look you’re seeking.
- Hardware—Just as with the kitchen, replacing the knobs and handles can give your vanity a fresh new appearance.
- Lighting and Mirrors—In addition to the vanity, the lighting and mirrors above that area can combine to make the perfect focal piece for your bathroom. If changing the vanity is not in your budget, consider swapping out your unframed glass for a more decorative mirror and add a new lighting fixture.
You don’t have to spend thousands of dollars to add pizzazz to your kitchen or bath. Just changing one or two elements can make a huge difference in its appeal to you and a potential buyer down the road.
February 6, 2009
I know it’s a self centered headline, but that doesn’t happen very often, so what the hell. After I published a blog post on the Glen Ellyn and Wheaton 2008 sales, market times and total number of homes sold, Brian Hudson, reporter for the Glen Ellyn News and Wheaton Leader called me about my statistics. We had a wonderful talk and he asked if I would mind being quoted in his article. Well, no; please go ahead and quote me!
He later called me back and asked if I would be willing to find a buyer and do a photo shoot for the article. I called Kathy Quaid, another fabulous agent in my office. I told her I have a house if she could bring the buyer. We met the photographer at 120 Tennyson, Wheaton. Kathy did an amazing job showing her client all the features of this wonderful home.
Not only does the article cover home sales in Wheaton and Glen Ellyn, but talks about the decrease of tax revenues and an interview with Kathy Doremus of the DuPage Homeownership Center, a nonprofit affordable housing agency.
Don’t get too down about the headline. I just ran numbers for Wheaton townhouses and the prices actually went up in 2008. There is hope!
January 30, 2009
There are some quick, easy and inexpensive ways to make your home more attractive to potential buyers. Most of these ideas take more time than money.
Clean goes a long, long way, even in an outdated home. Buyers like to know that a home has been loved and well maintained. I once had a seller who keep her files in the dishwasher. According to her, the dishwasher just didn’t get the dishes clean enough. I’m not saying you need to go that far, but scrub every corner of your home, it will pay off.
Furniture placement – rearranging furniture can give your rooms the energy and space they need. Remove any extra furniture, tables, knick-knacks and books. Make sure there is enough space to walk around the whole room.
Paint – this has to be one of the most inexpensive ways to freshen up a room. Feel free to do the work yourself, but if you need help picking paint colors, definitely pay a professional for their advice. The wrong paint color and a lot of wallpaper can turn off buyers.
Green it up – add some green household plants for warmth and texture. Set some fresh cut flowers on the dinning room table or in the bathroom. Just make sure to keep them watered and looking good. And never use artificial plants.
Clutter – admit it, we all have it. You can organize it and put it in pretty containers, or better yet, pack it up and move it to a storage unit or neatly stack it in the garage. Your goal is to move, get a head start and pack it away now.
Update – updating doesn’t mean spending a ton of money. You can replace switch plates, cabinet handles, light bulbs, sinks, door knobs, bath towels, welcome mats and toilet seats. None of those things will break the bank, and they will go a long way to freshen up your home.
Lighting – make sure you have enough lights in the home. Even during the day, turn on lights for a showing.
January 28, 2009
Our government is making an effort to entice first time homebuyers to purchase houses. On July 20, 2008, then President Bush signed into law, as part of the Housing and Economic Recovery Act of 2008, a $7,500 tax credit for first time homebuyers. This tax credit is available from April 9, 2008 to July 1, 2009.
Here are some details you need to know:
- The tax credit if for 10% of the cost of the home, not to exceed $7,500. The property purchased must be used as a primary residence.
- A single borrower must have an adjusted gross income of $75,000 or less. That goes up to $150,000 if you file a joint return.
- You must be a first time homebuyer.
If you choose to sell your home before the 15 years are up, you owe the IRS. Say you still owe $3000 and you make a $20,000 profit from your home when you sell. You would pay the IRS that $3000 at closing and walk away with $17,000.
Stay tuned, you never know when our government will change the rules and hopefully make this a gift, instead of a interest-free loan!
January 27, 2009
Both the Wall Street Journal and Bloomberg.com are reporting today that homes sales in December had their biggest monthly increase in nearly seven years. Homes sales were up 6.5% nationally in December 2008.
Most likely this is due to buyers taking advantage of home price cuts and homes in foreclosure.
January 26, 2009
Some great news for Wheaton real estate. 2008 condo and townhome average prices have gone up 11% since 2007! That is wonderful news considering the current real estate market and financial credit situation.
The market times have gone up considerably and the number of homes sold have been more than cut in half from the height of the market in 2005. However, these numbers are more consistent with single family homes in Wheaton.
