Tips for Home Sellers: Preparing Your Home for Sale

Before you start showing your home, it is a good idea to make it as presentable as possible. This includes making some repairs and/or improvements. This stage of the selling process is call “pre-marketing”.

The first part of the home you want to check is the exterior, including the yard. First impressions are very important, especially with homes. You want the buyer to pull up to your house and say “wow”. For your back yard, make sure your lawn is green and mowed and clean your outdoor furniture. The front should be as inviting as possible so you want to do the same as you did with the back, plus more. Trim the hedges, give the fence a fresh coat of paint, and make sure the drive way is clean and free of clutter. You may even want to consider planting some bright colored flowers to make the front more welcoming.

As for the exterior of the house itself, it’s a good idea to touch up the paint. Make sure mail box is clean and the numbers a legible. You also want to check for any cracks in the chimney or walls and have them filled. Finally, you should repair any loose trim or drain pipes, and clean the windows and doors.

Next is the garage. This is pretty simple. All you need to do is make sure it is organized and clean the floor. You want the buyer to feel the garage is large, with plenty of storage space. If your garage is messy, buyers will be turned off.

Finally, you need to work on the interior. As with the outside, touching up the paint is a good idea. However, you may want to consider repainting in neutral tones. Most buyers want a home that is like a “blank canvas”, ready for them to make their own. Although you may love your deep red dining room, but if someone is not particularly fond of red, it can be a turn off. Carpets and drapes should be steam cleaned and all the light bulbs need to be working. In the kitchen, make sure the counters are and sink are spotless. Also clean the stove and oven. Make sure the bedrooms and closets are clean and organized as well.

Overall, you want the house to look very clean, bright, and inviting. It is also a good idea to hire an interior designer or home staging specialist, if your home in is a higher priced area.

I hope this provides some useful information, and as always, feel free to ask a question or leave a comment below.

Tips for Home Sellers: Choosing an Agent

So now that I've spent some time giving tips for consumers looking to buy a home, I will devote my next few post to providing advice for sellers.  Even though the market is dominated by foreclosures and short sales, which are significantly discounted compared to a traditional sale, it still could be the right time to sell.  There are a lot of buyers out there, with great credit, looking for a new home.  Many buyers don’t want to have to deal with the headache or drama associated with foreclosures and short sales so they prefer to buy a non-distressed home, even if they have to pay more for it.

The first step in selling your home, is selecting a Realtor.  A good Realtor can be one of the most important parts of selling your home.  They will provide you will information regarding current market conditions and where you should price your home.  They can also provide referrals to staging and moving companies.

You want to look for an agent who is active and knowledgeable in your area.  It is also common to use the same agent you used when you first purchased the home, provided you are happy with their service.  As with selecting an agent for the buying process, you want to make sure you are comfortable with him or her.  Does the agent answer your questions sufficiently? How quickly do they respond to your phone calls? These are the types of questions to ask yourself.

What it really comes down to, is you want an agent whom you are comfortable with and who will best market your property.  There are many marketing venues when it comes to real estate and your agent should utilize a lot of them.  The best agents will use, MLS, virtual tours, social media, craigslist and a few listing web sites.  The key is to make your property as visible as possible.  The more people who see your how, the more likely you will sell it quickly and for your asking price.  They should also follow up with agents who showed the home and ask for their input on the price, staging and condition of the home.

Remember, what you don’t want is a “yes man”.  You agent should have an extensive knowledge of the market and the industry, and they should know more than you.  Therefore, listen to their suggestions.  They want to sell your home just as much as you do and they know what works and what doesn't.

Next time I will go over what pre-marketing is and what you should be doing during that process.  Take care and remember, good things come to those who make it happen!

Home Buying Tips: Part 3

Hello Everyone, I hope you all had a great Holiday break and New Year. Now that we are back to the grind, I will continue with tips for home buyers. If you remember, my last two posts went over getting started and finding the right home. Today, I will talk about what to do once you find the right house. This includes the inspections and making an offer.

Having an inspection is a very important part of the home buying process. It is one of the ways you “the buyer” can protect yourself from any problems with the functionality or construction of the home. The primary purpose of the inspection is to check and estimate the cost to repair any issues with pests, water, foundation and all other aspects of construction. If there a major problem is discovered, the inspector may recommend a more specific inspection of that area.

You also need to consider if the home is in a flood plain. Your Realtor will answer this question for you and if it is, you will be required to purchase flood insurance. If you are near, but not in a flood plain, you still should consider buying flood insurance because floods are typically not covered in basic home owners insurance. Other factors you want to consider are probability of natural disasters, zoning laws, and building codes. These are all questions your real estate agent should be able assist you with. Some states, including California, require the seller give a natural hazards disclosure statement to buyers which covers earthquakes, floods, wildfires and dams.

It is important that you have the inspection done before you make an offer, because once your offer is accepted, it is legally binding. If you do not have an inspection done before the offer, you need to make sure your offer contains an “inspection contingency”. This allows you to pull out of the sale if the inspection finds any major problems. I’ll go offers and contingencies next.

Making an offer is not a difficult process, but it’s not as easy and telling the seller you will buy the house for the asking price. There is a specific format and all offers should include the following:

Complete legal description of the property

·         Move-in date

·         Closing date

·         Amount of deposit

·         Down payment amount and financing details

·         Purchase price

·         Time period for which the offer is valid

·         Details of the offer

The legal description of the property is not just the address. It describes the specific parcel of land and how it was accounted for in county’s map and usually contains the property’s Assessor Parcel Number (APN). The move-in date is the day you wish to occupy the home and the closing date is the day ownership is legally transferred.

Your deposit is a sum of money, included with the offer, which you give to the seller to show you are “serious” about buying the home. It is usually 1 to 5 percent of the purchase price. If your offer is accepted, the deposit becomes part of your down payment. If it is rejected, then the deposit is returned to you. The down payment amount and full purchase price need to be included as well. Most banks want to see a 20% down payment, but there is no “mandatory standard” so it is always negotiable.

The details sections will include any contingencies regarding the offer/purchase. Contingencies are items which must be fulfilled by either party or the agreement can be terminated. There are a wide variety of contingences, but some of the major ones involve inspections, financing, and the purchase/sale of other homes. An example of the purchase contingency would be if the seller only wanted to sell if they found a new home to buy. Sale contingencies would be used if the buyer didn’t want to buy the home unless they can sell their other home.

Determining the purchase price and contingencies are the hardest parts of making an offer and this is when it is good to have a knowledgeable agent. They will know what similar homes are selling for in similar areas and how different types of financing affect the price. The amount of time the home has been on the market affects the price, as well. Usually, sellers will accept an offer which is lower than the list price, if the home has been for sale for a long time. Your agent will help you decided what contingencies are necessary, as each situation is different.

Remember, once an offer is accepted, it is legally binding. Meaning, if you submit an offer and it is accepted by the seller and all contingencies are fulfilled, you are legally bound to purchase the house. If you back out of the sale, your deposit may be forfeited to the seller and you may be liable for any losses incurred by the seller, seller’s agent, and/or your agent as a result of cancelling the agreement.

I hope this provided some good information for you and as always, if you have any questions or comments, leave them below. Take care and see you next week.

Short Sale Information 3 of 4

Here is part 3 of 4 of my short sale information blog. It is about the licensing requirements and questions 12-15. Enjoy.

III.  Licensing Requirements for Short Sales

Q 12.  What is a short sale consultant?

A  A short sale consultant is someone who advises on short sales.  Depending on the agreement between the parties involved, the typical short sale consultant assists a homeowner or listing agent to prepare a short sale application package, submit it to the homeowner’s lender, and negotiate with the lender on the homeowner’s behalf to approve the short sale.

Q 13.  Does a short sale consultant have to be a real estate licensee?

A  Yes.  Generally, if a short sale consultant negotiates real estate loans or performs services for borrowers or lenders, both the short sale consultant and the short sale consulting company must be properly licensed with the California Department of Real Estate (DRE).  More specifically, unless an exemption applies, a real estate license is required for someone who, for compensation or in expectation of compensation, does or negotiates to do any of the following acts on behalf of another:

•  Solicits borrowers or lenders for loans secured by real property;

•  Negotiates loans secured by real property;

•  Performs services for borrowers, lenders or note holders for loans secured by real property; or

•  Collects payments for loans secured by real property.

(Cal. Bus. & Prof. Code § 10131(d).)

To check someone’s license status with the DRE, go to its Web site at http://www2.dre.ca.gov/PublicASP/pplinfo.asp.

Certain exemptions to the licensing laws may apply.  For example, a real estate license is not required if someone merely performs clerical or administrative services, such as assembling a short sale package as long as final determination as to its completeness is made by the broker (see 10 Cal. Code of Reg. § 2841 which lists other permissible clerical activities).  For other exemptions to the licensing laws, see C.A.R.’s legal articles, Licensing Guide for REALTORS® and Licensing Chart for REALTORS®.

Q 14.  Can a licensed short sale consultant collect an advance fee?

A  No, unless certain requirements are met.  An advance fee is a fee charged upfront for services not yet performed.  An advance fee is broadly defined to include a fee claimed, demanded, charged, received, collected or contracted from a principal for negotiating real estate loans (Cal. Bus. & Prof. Code § 10026).  Among other things, no less than ten calendar days before collecting an advance fee, a real estate broker must submit to the DRE the advance fee agreement and all other materials to be used for advertising, promoting, soliciting, or negotiating the advance fee (10 Cal. Code of Reg. § 2970).  Furthermore, if a Notice of Default has been recorded against a property involving one-to-four owner occupied residential units, an advance fee is prohibited for foreclosure-related consulting services under the foreclosure consultant law (Cal. Civ. Code § 2945 et seq.).  For a list of real estate brokers who have received “no objection” letters for their advance fee agreements, go to the DRE Web site at http://www.dre.ca.gov/mlb_adv_fees_list.html.

Q 15.  If a real estate broker collects an advance fee, does it have to be handled in a special way?

A  Yes.  A real estate broker who collects an advance fee must deposit it in a trust account with a bank or other recognized depository.  Amounts may not be withdrawn for the agent’s behalf until actually expended for the benefit of the principal or five days after a verified accounting as specified is mailed to the principal in compliance with Section 2972 of Title 10 of the California Code of Regulations.  (Cal. Bus. & Prof. Code § 10146.)


Remember to leave a comment or ask a question below. Happy Veterans Day. See you next week!

When is the Best Time to Sell a Home

Often when GreatWest GMAC Real Estate professionals are asked, when is the best time of year to sell a home, a seller's largest asset. The consumer may be thinking the answer an easy one - spring of course.

However, there are a few thoughts, which support another theory.It is true that many buyers begin looking in spring for a suitable home for their moves - especially when there are school-age children involved. But, one thing to remember, in springtime, EVERY seller thinks that spring is the time to sell. This generally brings MORE sellers to the marketplace, which means MORE COMPETITION.

When there are more sellers on the market, the pricing of your home becomes a critical issue. It is paramount to tighten price to remain competitive within the marketplace. Therefore an advantage can occur during the quieter winter months when less seller competition is in place.

One GreatWest GMAC Real Estate professional reminisced - she actually purchased her own home on Christmas Eve, and counted it as a wonderful holiday present for her family! Real estate buying and selling is very much a year round activity!

Written for GreatWest GMAC
by: Myrl Jeffcoat

Website Identifies Neighborhood Felons

GreatWest GMAC Real Estate Professionals are often queried by buyers as to crime in the neighborhoods they hope to buy homes in.

In addition to the Megan's List website, there is also another important web resource. It's http://www.felonspy.com/ - Just enter an address and up pops a neighborhood map flagged with names, age of the felons and the crimes committed.

Nearly all areas of the country are impacted to some degree. However for those homeowners interested in having this type of knowledge, this website could have importance to them.

Take a minute to check out a neighborhood, and then pass on the link to people that may have an interest.

Written for GreatWest GMAC
by: Myrl Jeffcoat

Six Reasons Your Listing Won't Sell

GreatWest Real Estate professionals are experienced in advising home sellers on the importance of key issues, which will keep their homes from selling. They begin as follows:

1. You don’t have quality photos of your home. Most homebuyers begin their home search via the Internet. What they see visually in those first on-line encounters with your home can make the difference between whether they continue to explore your home further, or click away to the next available property with criteria they are searching. Quality photos make a significant difference in a homebuyer’s initial decision-making. It helps them decide whether their next action will be making an appointment to actually see your home in person.

2. Does your home show well? Sometimes this can mean the more subtle things – The smell of the house (especially if you have pets). It can be the annoyance of a dog that barks. Are the walls in need of fresh paint, and does the carpet really need replacing.

3. Have you overpriced the home? It is vitally important that you view your property with objectivity. Divorce yourself from your own feelings about your home, and view it through the eyes of a “buyer.” Pay attention to the Comparative Market Analysis prepared for you by a knowledgeable real estate agent. Make certain that it INCLUDES short sales and foreclosures. How does it compare in condition and updating to other properties being marketed or recently sold. These factors can make significant difference in valuation for market purposes.

4. Has your listing worn out it’s welcome on the market? It is a fact, that once homes have been on the market for awhile, they lose their initial fresh marketing impact. If you have overpriced your home, or allowed it to remain on the market without showing well, or the other important marketing energy discussed in the previous items, this can happen. There are several ways you can remedy this - (a) You can remove it from the market and give it a rest until spring. (b) You can initiate a price reduction. (c) You can make some needed improvements like paint, new carpet, or other cosmetic touches. (d) Home staging is another useful tool.

5. Transparency is more prevalent in today’s real estate world. In the past, Buyers traditionally contacted an agent for their “first” viewings of “for sale” homes. However, in today’s world, the Internet is primarily the “first” showing of properties, with the “actual” second showing occurring when the Buyer has previewed your home via websites like Craig’s List, Zillow, Trulia, and Google Base, etc.

6. It ain’t what you hoped for. You are fortunate enough to be in an area where homes often receive multiple offers. And you have accepted an offer on your home that is above list price. HOWEVER, the appraisal arrives $30,000 less that what has been agreed upon by you and the Buyer. You can sometimes successfully negotiate with them - but make it work, even if you need to drop the price. After all you will likely have the same problem with subsequent Buyers.

If you have questions, or wish to explore the quality marketing advantages of GreatWest Real Estate, please contact us. We look forward to hearing from you!

Written for GreatWest GMAC
by: Myrl Jeffcoat

Choosing a Great Real Estate Maestro is Key

A GreatWest GMAC Real Estate professional recently recalled an early childhood memory. This memory took her back to a time when her mother took her to a delightful stage show.

While the production was going on, she saw dancers on stage. In an area slightly below, and in front of the stage, there was the conductor who waved his magical wand in the air, while delightful music seemingly flowed from it. She was certain the maestro was a sorcerer with the ability to conjure magical sounds - and because he was standing in the direction of the stage and commanding the rhythmic wand, it also seemed he was invoking the very steps of the dancers.

The mother tried to convince her that things were not as perceived - there was an orchestra "in the pit." Imagine what images pranced in her tiny head when mother spoke those words. She knew what a pit was, but had no idea what an orchestra may be. So, about half way through the composition, she bolted from her seat next to the aisle, and ran up to the front railing of the orchestra where the Maestro stood.

Quickly she could see there were all sorts of interesting instruments - cellos, violins, flutes, horns, drums, and a piano. There sat several dozen beings all dressed in black - manipulating bows, strings, sticks, and keyboards, to truly make music happen - at least until the curtain drew to a close.

As real estate professionals look back today, we often realize that running real estate transactions must sometimes seem like viewing a show through the eyes of a small child. What may appear to be a maestro, invoking dance, and leading the orchestra with a single wand, is only an illusion, to all the activity going on by others not readily seen to the view.

Carefully conducting the symphony, known as a real estate transaction, takes all sorts of individuals flawlessly playing their part, in order for the composition to be a well-orchestrated success. Wisely choosing a great real estate agent to perform, as conductor of any real estate sale and transaction is important.

Generally, it is the agent, which will have the most visibility and contact not only with clients, but a multitude of other unseen individuals (lenders, inspectors, escrow and title people, etc.), which are working more or less behind the scenes. How well, an agent helps coordinate other activity will depend on how well your real estate transaction flows. Understanding the importance of wisely choosing a great real estate Maestro is key!


Written for GreatWest GMAC
by: Myrl Jeffcoat