Home Sellers: Do You Want to Be In the Market or On The Market?

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As a home seller, you have to ask yourself an important question. Do you want to be “in” the market to get your home sold quickly for the most money OR do you want your home to be “on” the market? Believe it or not, there is a big different. As your Realtor, I want your home to be on the market for the shortest time possible in order to net you the most money in your pocket. I am sure that is what you want as well!

Before your home can sell, you have to understand that a buyer equates value with two different things: price and condition. These two factors have to be just right in today's market in order for you to get an offer on your property. In fact, there really is an art form that an agent has to know in order to price homes to sell while still preserving as much of the seller's equity as possible.

When we look back to the year 2007, you just didn't have to do as much preparation when it was time to list your home for sale. In other words, your home's condition could be less than stellar while you were still able to get a decent, higher sales price. A lot of this was because there was simply a bigger pool of buyers out in the market competing for properties.

Today, in 2011, we have to get tighter on price and condition. The buyer pool is smaller, so sellers have to make sure that they are reasonable and attractive when it comes to condition and pricing. We have to do the simplest things such as turning on all of the lights for showings, touching up paint, open up the blinds and remove personal pictures from the home.

Condition is every bit as important as price these days. That means that we have to do both things correctly in order to be “in” the market instead of just sitting “on” the market. Being “in” the market means you will get showings and offers. Being “on” the market might just mean you have a sign in your yard and a listing in the local MLS, but what good does that do without contracts and buyers?

Some sellers are stuck between being “in” the market and “on” the market. They might be getting some showings, but no offers. This is usually because either condition or pricing is “off” when it comes to attracting qualified buyers. I call this “no man's land”. You have to get “in” the market by making sure both factors are correct.

As a seller, you don't want to be in “no man's land”. Real estate agents know that these homes are what actually help sell the competition. When a buyer walks into a “no man's land” home, it often confirms for them that they need to purchase the better priced, better condition home down the street.

If you are not getting showings or offers, you are “out” of the market completely. Remember that you must work with your real estate professional to make sure that you are firmly entrenched “in” the market so that you are the next home to sell!

Get Debt FREE and Raise Your Credit Score!

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Pay Off  YOUR Debt,  NOW!

The only way to raise a credit score is to pay off your debt or at least reduce it to an acceptable level! I recommend paying off high interest rate  credit card debt first.They can suck the life out of your finances! As for those, "magic cure" credit repair commercials you hear and see promising a quick fix, their scam is even greater than high interest rate scam your credit card company is charging you!

What steps do you need to take to build your credit score to the highest level possible? How can you secure a mortgage with a lower interest rate? Use my common sense guidelines provided below to get rid of the debts that have reeked havoc on your chances for a lower-interest mortgage on your dream home.

1.) Pay Your Bills on Time – All the Time!
I know, I know – this isn’t always easy. But, lenders of all kinds look for reliability on your part. Since loaning money is a risk for them, they look for signs that you have a reliable income and the discipline to pay your bills over time. When they see those signs, they say to themselves, “Hmmm, this person looks like a good risk to me; therefore, he or she deserves a lower interest rate.”

2.)  Do Not – I Repeat! – Do Not Open Unnecessary Credit Cards!
People sometimes open credit card accounts in order to increase their available credit. Absolutely avoid this temptation! It’s simply too darned easy to charge for items you don’t really need, and, before you know it, you’re back in debt or have increased it to an unreasonable degree.

3.) Budget, Budget, Budget!
Financially, this is possibly the most “unsexy” task there is, and yet it’s the most vital and important one you can possibly undertake! YOU need to figure out where you stand financially. Budgeting will allow you to get rid of debt, improve your credit score, and shape a low interest rate financial future for you!

4.) How Much Debt is Too Much?
Here’s the first question to ask yourself in terms of budgeting: How much debt is too much?
Actually, there’s a standard financial formula that allows you to answer that question. This formula is called the debt to income ratio, and what it does is measure your net monthly income against your debt.

Here’s an example:
"George” has a net monthly income of $2000 and his monthly debt payments are $500.
So, to get his debt-to-income ratio, George divides $500 by $2000 and gets this ratio:
500÷2000 =.25 (25%)
  
Is this a good ratio?
Well, financial experts generally agree that debt expenses should be 25% or less of your income. George’s ratio is reasonable but could be better.So, what’s the ratio of your debt to your income? Figure that out by taking the next step.

5.) Calculate Your Debt-to-Income Ratio
You can answer that question by completing the following tasks:

Task 1: Analyze your bills from the last month. Add up all the fixed expense items (rent, mortgage, car payments, child support, loan payments, etc.)

Task 2: Review your credit card bills and add up the minimum payments owed on each card.

Task 3: Figure out your monthly take-home pay (net salary).

Task 4: Divide your monthly fixed expenses by your monthly income to get your debt-to-income ratio.

What percentage did you get? If it’s 25% or greater, then it’s definitely time to budget in order to reduce or eliminate your debt.

6.) The book I am speaking about is: 
The 4 Laws of Financial Prosperity: Get Control of Your Money Now! (Formerly The Four Laws of Debt Free Prosperity / This is the same great book with a new title) [Paperback] Blaine Harris (Author)
› Visit Amazon's Blaine Harris Page 

I’d be happy to discuss some more in-depth  budgeting tips and provide you with information on mortgages at the same time!

Educated buyers, sellers finding deals

Ashley Wilson of Wilson Realty Group says closings are up for her brokerage because agents make clear the advantages and disadvantages inherent in the current market.

For sellers, she says, "It's a beauty contest," and reminds them that while they may not get the selling price they want, they will see savings on a purchase to balance out the equation.

Source: http://www.wral.com/business/blogpost/10073220/

What Determines the Value of Your Home?

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Basically, a home's worth is determined by its market value. How is "market value" determined? Most often, it's figured by a comparison ("comp") with homes similar to yours in the surrounding area. So, if the homes in your neighborhood average, say, $250,000, then it's likely that the value of your property will fall in the same range. But market value is also determined by a number of factors including the following: 

External Factors 

There can be several external factors influencing the value of your home. One is "curb appeal", or the first impression your property makes upon prospective buyers. A home that's in excellent condition on the outside will make a great first impression; a home in poor repair instantly loses its appeal to buyers. Other factors can include lot size, popularity of an architectural style of property, water/sewage systems, paved roads, sidewalks, etc. 

Internal Factors  

The condition of a home's interior also has a huge influence on prospective buyers. When you've demonstrated "pride of ownership" and kept up the maintenance (quality paint, trim, molding, etc.), a buyer's interest will immediately perk up for the simple reason that they know your care and concern will result in less cost and maintenance for them. Other internal factors include construction quality, condition of appliances, size and number of rooms, heating/cooling type, energy efficiency, etc. 

Supply and Demand 

"Supply and demand" simply refers to the number of homes for sale versus the number of buyers. When there are more homes than there are buyers, prices tend to be lower. When there are a lot of buyers chasing few homes, then prices tend to rise. In effect, supply and demand affects how quickly your home will sell. Location More than likely, you already know the old saying, "There are three main factors in real estate - location, location, location." While that's not the whole story, desirability is a big factor for home buyers. They may want to live in particular school district known for its education excellence…a great and safe neighborhood with rising property values…etc. 

But I Know My Home Is More Valuable Than a Lot of Comparable Homes in My Neighborhood  

Aren't Allowances Made for This? Definitely! Sometimes, it can be difficult to find homes exactly comparable to your own. So, dollar adjustments are made for the differences between your home and comparable properties. 

Where Do I Find Sales Comparison Information? 

The easiest source to access is your Realtor. After all, it's his or her business to know such information! But, there are also other sources you can tap into in order to get a complete picture of your home's value in comparison to others in your neighborhood. Here's an overview of them:

1. ) The Local Assessor's Office  

It's very likely that your local assessor will be able to provide the sales history of a particular house, neighborhood, or style of architecture. Many assessors also provide lists of recent sales which you can browse and compare to the assessment roll. Today, many municipalities provide local sales and assessment information online making it very easy to access. Check with your local government agency to find out if they provide this service. 

2.) Online Private Companies  

You can search for these companies using the Google search engine and the keywords "comparable home sales" or "comparable sales." Some companies offer free information; others charge a nominal fee. If you wish to get more specific, you can Google "real estate database" and type in the name of your particular state to get additional property information. 

3.) Your Local Newspaper  

It's likely that your local newspaper is a great source of specific real estate information. Look for quarterly sales reports in the real estate or business sections.

The Key to Getting the Price You Want (or Close To It) for Your Home 

The key to getting the best value is finding and matching the right buyer to your home. And that's the job of the Realtor! He or she should work hard to qualify those buyers upfront so the right people are viewing your property! In other words, the Realtor should weed out "lookers" and other unsuitable buyers as a first step in working with you. See how I do that for you by calling me today!