O.M.G! INTEREST RATE HIKE!

We are a sound-bite society.  But it's not entirely our fault.

                We are bombarded daily with so much information from so very many sources that it is impossible to process it all.  So we lean on those little blurbs, the abbreviated headlines that we see on our phones or our televisions or on the internet, or…. God forbid, on Facebook.

                 But that's another subject.

                And yesterday, one of the top blurbs vying for your attention and mine was that the Feds have raised the interest rate.  That may be the sum total of what you heard or saw.  Just that one little phrase.  And a conversation similar to the following might have flitted through your head.

                "They've raised the interest rates!  I probably can't buy a house.  I knew I should have already done that.  My credit card payments will be a lot higher.  I'll never get out of debt and I'll have to drive this car, like, forever…"

                Let's face it.  The majority of us don't really understand the whole interest rate thing anyway.  We are not accountants and somehow that entire lesson about compound interest went entirely over our heads.  And like every other soundbite, blurb or Facebook headline you read, you really only want to know one thing.

                What does a rise in interest rates really mean to ME?

                I don't pretend to be a mortgage expert or a financial analyst.  (Good thing, too, because I am woefully unqualified to be either.)  However, after all these years in real estate, there is one thing I can help you understand -- with the help of my handy-dandy loan calculator app. 

                How does a change in interest rate really affect your ability to buy a home?

                The answer is… not that much.

                The following is a simplified example.  Remember, these figures are principal and interest only.  If you were actually looking at your potential payment on a home, it would include the cost of taxes and insurance as well which will vary depending on your area.

                So, here's the most basic example I can think of:

                You are purchasing a $100,000 home and are going to pay for it over thirty years.  The principal and interest portion of your payment at a 3.75% interest rate would be - $463.12

                At 4.0% (the Feds raised interest rates by .25%) your payment would be - $477.42. That's a difference of a whopping $14.30 per month. But let's assume they might raise it again.

                At 4.25% - $491.94

                At 4.5% - $506.69

                At 4.75% - $521.65

                And at 5%, that payment will be $536.82.

                If the interest rate goes up a whole percentage point in 2016, the difference in your principal and interest payment will still only be a little over $70 a month.

                Come on, admit it.  You spend that on fast food and pop at the convenience store.

                So, how does this interest rate hike affect your ability to get a mortgage?  

                Not much.

                Not much at all. 

                

FICO, SCHMIKO!  (Or, What in the world is a FICO score anyway?)

                I'm going to be honest with you. Understanding  your credit score can be like understanding a foreign language film without subtitles. The whole credit score world seems to speak a numerical language, and unless you're a computer, you don't speak numbers. Even their commercials are peppered with numbers: 720, 830, 640.  But what on earth do they mean and how do credit scores happen?

                So, let's start with the basics.  If a bank is going to loan you money, they want to know two things:

                Will you pay this money back?

                Will you pay on time?

                A FICO score is the lending world's attempt to keep score for you.  Imagine you're at a baseball game and you have one of those cool scorecards that lets you keep track inning by inning.  The Yankees score 2 runs in the first and you mark your card accordingly. The Braves scores 1 run and 1 error in the second.  Now imagine that there's only one team, and it's you and your spouse. Experian, Transunion and Equifax are the ones sitting in the bleachers, keeping the score cards. 

*Paid that credit card bill fifteen days late? -1!  

*Borrowed $5000 for a motorcycle? -10

*Paid off that credit card as agreed? +20  

                Those figures are arbitrary and mean absolutely nothing in the real world, but you get the idea.  Every credit reporting agency keeps a running tally on you.  And me. And the 300+ million people in the U.S.  Everything we do, whether we apply for a store credit card, buy a new car or get a cell phone is reported to these agencies.  The combination of activity in your credit life is what constitutes a FICO score.

                So, what makes it lower than it should be?  Obviously, unpaid bills or bills that are paid late, but a myriad of other things can affect your score negatively. If you have too much debt, or too many new credit cards.  Believe it or not, too little debt and too few credit reportings can also be detrimental.

                There are five things that contribute to your FICO score.  Types of credit in use, New Credit, Payment History, Length of Credit History and Amounts owed.

                In order to stay aware of your position in this confusing world, always request your credit report from all three agencies once a year.  Mistakes happen and it's possible there are things on your credit report that make you go, "Huh?"  That is the time to make a call and set things in motion to fix any items that are not yours.

                If everything on the report looks like it's yours, but your score still will not let you buy a house or car or tractor or whatever you want, follow these simple tips.

                Pay your bills on time.  From your water bill to your cell phone bill to your car loan, pay on time.  Every month. Period.

                Get current and stay current. If you've fallen behind, make the moves to get things up to date and then stay there.  It might take a while, but your efforts will cause that number to rise.

                If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor.  This is not an instant fix, but managing your credit will allow your score to improve over time.

                Keep your balances low.  High outstanding debt can significantly lower your FICO score.

                Pay off debt.  Those offers from your credit card company allowing you to move your "high interest balances" to another card won't help your score.  Paying down the debt will.

               

                In short, manage your credit carefully.  Your future depends upon it.

Blast From the Past!

     Once upon a time in America, say around 1960, the average price of a home in this country was $16,500.
     Yes, you read that right.  Sixteen thousand Five Hundred Dollars.
     Of course, a dozen eggs cost 57 cents and a loaf of bread was a quarter.
     But I digress.
   
     In those bygone days, owning a home was the pinnacle of achievement.  It was "The American Dream".  Part of the reason it was a "dream", is that it was not easy to achieve.  When you owned a home, you had arrived.
      In those days, and frankly in the days when I first started Real Estate, people saved for a down payment, usually 20%.  On $16,500, that would be somewhere around $3300.  And the average house payment was $85.00. Remember,we're talking about a time when the average household yearly income was $5620.00. (Source: bls.gov/opub/uscs)
    It is true that everything was cheaper then.  Milk was 49 cents a gallon. Gas was 31 cents a gallon. A stamp was 4 cents.
    And the mail was delivered on time.

    But that's another subject.
    Saving for a down payment and buying a house were a benchmark of success -- much as they still are today.
    In comparison, buying a house in 2015 is actually much easier. The interest rate is incredibly low.  Compare today's rate to the interest rate in 1993 when I was first licensed to be a Realtor.  The rate in January of 1993 was around 8% for a 30 year Fixed Rate Mortgage. The rate in January of 1995 was 9.15%.
       At this writing, the 30 year rate is 3.76% (Source: Zillow), and that is a thirteen week high!
       Lenders and the government and the economy have all banded together to make owning a home more accessible to today's consumer than ever before.
       Does that make the American Dream less valuable?  Not at all.  It simply makes it more accessible.
       And there's nothing quite so satisfying as making a house your home.



   

Biggest Bang For Your Buck?

             We live in a "home improvement" world.  If you spend a couple of hours watching nightly television, you'll see enough home improvement projects to fill an entire year of weekends. Every town seems to have a home improvement warehouse, and every homeowner has thought -- at least a little bit -- about some future project. 

                So, which home improvement projects are going to bring the most return?  And exactly what is the difference between home improvement and maintenance?  

  

         

That Roof Cost $10,000 and that Make My House Worth $10,000 More!

                Of course, that's right.

                Right???

                Well...  Probably not.

               

                Thinking every penny you spend on a project will be returned when you sell the house is simply not realistic.  Often clients will tell me they've replaced the roof, replaced the windows, replaced the hot water heater, and replaced the heat and air.

                Those things are wonderful, and Realtors love to hear them.  They definitely make your home more appealing to both you and to a potential buyer.  And they are costly.

                However, your house already had a roof. And windows, and hot water and heat and air.  After all, they're a necessary part of the structure.  You could hardly sell a house without a roof, right?

                Replacing faulty or outdated necessities is maintenance. After all, you don't want a roof that leaks or a cold bath in the morning. 

                It's a lot like fixing the brakes on your car:  It has to be done, but it doesn't necessarily make your car worth more money.

                The one exception could be replacing the windows, and we'll discuss more about that later.

In An Appraiser's World

               

                If you plan to add a pool, replace a roof, get new windows or completely remodel your kitchen, it's good to know ahead of time just exactly how beneficial those items will be when you decide to sell your house.  A pool costs many thousands of dollars, but exactly how much does it really contribute to your bottom line when you sell?

                When I decided to write this blog, I consulted a local, well-respected appraiser on the subject of home improvements.  ( I call that "research")

                I asked one question. 

                What adds to a home's value, and what doesn't?

                Or maybe that's two questions…

                As with all things real estate, appraisal is a complicated business -- never more so than in the last several years.  I'm told that a new roof does not exactly increase the value of a home, but it can put your home in a different class when the appraiser is pulling comparable sales to determine the market value.  In other words, with your old roof, your house might be compared to house A, which is older and in average condition.  With a new roof, your house might be compared to house B, which is in above average condition.

                It's not trading the $10,000 you spent on a roof for $10,000 in market value, but it is increasing your home's value by upping the category your house fits in.  (Yes, my English teacher friends,  I know I ended that sentence with a preposition.)  

                Also, if you completely tear out your kitchen and remodel it, the appraiser is likely going to use newer homes as comparable sales in your appraisal report. (Or, at the very least, homes with newer kitchens.)  Obviously, those houses are going to be worth more than a house built in 1970 with the original kitchen.  

                If your house has been basically remodeled from the ground up, it will then be compared to newer homes when determining value.

                You get the drift.  Most remodels will up the ante a little bit, thereby making your market value a bit higher. 

                Not a dollar for dollar trade, but a definite increase in value. 

                

But, We Have New Bathrooms!

                When it comes to improving the value of your home, you're going to get the best return on investment from bathrooms, kitchens and anything that improves the energy efficiency of your home. 

And here, we're talking about remodels, not cosmetics.  If you replace the tub, tile, sinks, counter tops and toilets in the bathroom and the kitchen cabinets, counter tops, appliances and flooring in the kitchen, you've added value.

                If you replace a sink, or a tub surround, or a couple of faucets, you've made your home more attractive, but not necessarily more valuable.

                According to a number of sources on the internet, the one home improvement project most likely to give you a sizeable return is replacing your windows.  Not only do they improve the appearance of your home, they provide a much desired boost in energy efficiency.

                You'll like that. 

                Buyers like that. 

                And, apparently, appraisers like that.

What About CURB Appeal?

                There are three areas where you should exercise caution when planning to upgrade your house; landscaping, pools and shop buildings.  The appraiser -- who, after all, is the final decider about your home's value -- is limited on how much they're allowed to add to the market price for a pool.  You could easily spend $40,000 adding an in-ground pool to your home, and an appraiser might only be allowed to add $5,000 for that improvement.  The same rule applies to shop buildings, patios and outdoor kitchens. 

                Don't misunderstand me.  I'm not advising against adding pools or shop buildings.  If you love swimming, add a pool.  If you love working on old cars or refinishing furniture or sitting around with a group of guys smoking cigars and telling fish stories, build that shop.  Just remember that you're building it for your benefit, not to add value to your property.

                And that brings us to landscaping.

                Landscaping will add tons of curb appeal and attract buyers, but be careful how much you spend on it.  Appraisers do not consider landscaping in calculating the value of your home. 

          

Is the Bottom Line the Bottom Line?

               

                Let's face it.  Home improvement is exciting.  It's fun to watch your home's transformation take place and satisfying to stand back and admire the job you've done.  

                 The key is to do the things you want to do.  If you want a pool, have one. If you want an outdoor kitchen, enjoy it. 

                 If you want a pink, heart-shaped jetted tub-for-two sitting in the middle of your master bedroom, give me a call first.  We need to talk....

                 It's your house, and the point is to enjoy it while you live there.  You might sell it someday, but right now, you're not selling.  You're improving.  Do the things that make you and your family happy and comfortable. Do the things that make a house a home.

                Whether you're going to get every penny back or not.

                

One Small Step for a Seller... One Frightening Leap for The Buyer!!!

            There are a lot of things in this world that are intimidating.  Your first foray into the stock market or your first public speaking engagement and surgery for example can be pretty unnerving.

            Then, there are the things in life that are downright frightening – like finding a snake in your bathtub or re-wiring your own home. Scary in different way, maybe, but either of these can lead to a 9-1-1 call. 

            There’s not a lot we can do about snakes.  Snakes happen.  But unless you’re an engineer or an electrician, you’d better leave the electricity to the experts.  

            If you’re considering buying a house, one of the most unnerving and intimidating parts of the process is the actual offer.  How much is enough?  How much is too little?  How does the price of this house fit into the prices of the other houses in this neighborhood? 

            Location, location, location is really important, but paying too much for a house in a great location is not what anyone wants to do.

            On the other side, if you’re the seller, you have the same problem in reverse.  You don’t want to sell for too little, but you also don’t want to overprice your home.  Overpricing is the quickest way to a house that sets records for most days on the market.

            This is not an award you want to receive.

But, I Don’t Know What to Do!

           

            Researchers say that stress is caused by a situation that is out of our control.  In addition, our sense of stress is only magnified by situations where we don’t know what to do.

            Enter the real estate negotiation. Sellers have no control over what a buyer will offer, buyers have no control over what a seller will accept. 

            And no one knows what to do. Or even what the rules are.

            Though life would be simpler if there were some hard and fast rules for negotiating, unfortunately, there just aren’t.  There are, however, some guidelines that will be helpful when you’re deciding what to offer on a house.  Or deciding how to counteroffer.

Information is King

           

            Let’s start with the offer.  If you’re working with a Realtor, take advantage of all he/she has to offer.  Although a Realtor, depending on agency laws in your state, could make recommendations, it is your money.  Only you know how you want to spend it. 

            If you haven’t already received it, have your agent run you the comparable sales in the neighborhood. These constitute the best way to determine what you’ll eventually pay for your new house.  The information you’ll receive is some of the precise information an appraiser will use to determine value for your lender.

            It’s true that every buyer is looking for a “deal”.  At the same time, every seller is looking to make the most out of their home. 

            Don’t forget this.  To you, it’s a great house or you wouldn't be making an offer.  But that great house is the seller’s home.  Maybe their children have grown up there.  Maybe, it’s the place they've gathered around the tree on Christmas mornings. Their memories have happened there. 

            When you’re deciding what to offer for a house, don’t forget there’s a sentimental attachment on the seller’s side.  Ignore that sentiment and you might offer so low, the seller is insulted.  When that happens, you’ll watch your “deal” fly out the window. 

            And you could be looking for another option.

And In This Corner…  

            Information is still king. A look at what houses have sold for in your neighborhood will tell you approximately what to expect when you’re listing your home.

            It’s hard to look at things from the buyer’s side, but it’s best to put aside your sentimentality and be practical.  Although you may love your home and you have no doubt paid attention to every detail, don’t forget an appraiser will be the final say in what your house is worth.  It won’t help if the buyers agree to pay full price and find out the bank won’t lend on it because it won’t appraise.

            A quick word about appraisers:  Some things that are a definite improvement to a home, such as landscaping or a new roof, don’t add one shiny dime to the appraised value.  Appraisers have guidelines that force them to concentrate on the structure itself, not any of the landscaping or even a pool.  You’d be shocked to learn how little value an appraiser places on a pool.  Even though it cost you thousands of dollars to install, you’ll only get a fraction of that on the appraisal. And new roofs are essential. Bft it already had a roof, right?

            There is an old adage that all Realtors know. Your first buyer is almost always your best buyer.   If your house has been on the market only a short time and you got an offer, be glad.  Be thrilled, even.  It’s tempting to think, “If I got this offer so quickly, someone will pay my full price.”  

            Maybe.  After several more months of showings.  

            Perhaps

            As your granddaddy probably said, “a bird in the hand is worth two in the bush”.  Especially, when you might have to wait six months for that second bird.

And The Winner Is…

           

            When the buyers have the right information, they’ll know what they should offer for a home. 

            The seller will already know what to expect because he did his homework before he listed.

            So who wins in a negotiation?  You do.

            And it wasn't scary at all.

            

Just How Big a Deal is Curb Appeal?

         We've all seen the television show.  They find a worthy family, take their dilapidated, practically  falling down house, and Voila! They replace it with a mansion -- in just a few days. Or from our point of view, in an hour.  It's a fun show to watch, with extraordinary results and the opportunity for a good cry.
          If you're so inclined.
         
Yeah....
          It would be nice to be able to spend a few days and replace your house with a mansion.  And let someone else pay for it. Really nice.  Here in this little place we call the "real world", we're just trying to make the house we have look amazing.
          Here are a few tips for your Not-So-Extreme-Home-Makeover.

                 
          Everyone knows what "curb appeal" is.
          And we know what it isn't.
          Unlike a lot of real estate terms that are thrown around with abandon, curb appeal is pretty self-explanatory.  Consider the above photo.  Chances are pretty good that if that house had a "For Sale" sign in front of it, no one would make an appointment.
            Curb appeal makes the buyer want to come inside.

            If you’re the seller, you want that. A lot.

            Here's the good news.  Enhancing your curb appeal does not mean you have to spend a lot of money. Or make your house look like a mansion.  Curb appeal lies in the little stuff -- the details you probably don't even notice anymore.
            
Curb Appeal is For Everyone!

            Now that it's finally here, Spring is a great time to take a good long look at your home -- even if selling is not in your plans.  Your home is ... well, your home.  Dressing up your house is kind of like dressing yourself up for an evening out. It just makes you feel good.
            And you'll be surprised at how many little things can be done to improve the exterior of your home for just about the price of a new outfit and an elegant dinner.  

Say Cheese…   

      

            If you've read this blog before, you've probably figured out that cameras are one of my favorite tools.  And favorite toys. Even if you're not a camera nut like me, there's something about a picture that helps to distance you from a subject.  And if that subject just happens to be a house you're very familiar with, a picture is the quickest way for you to see what a stranger might see.
           To begin your Not-So-Extreme-Home-Makeover, take several pictures of the exterior of your house and take a moment to study them.  Does the trim seem faded or dirty, does the siding need a bath? Have the shrubs grown up over the front windows?

            At this time of year, you're probably seeing what most of us would see -- the end of a hard winter.  The flowerbeds look shabby and tired, the siding and/or brick needs to be power-washed to remove the residue of rain and snow and ice and mud and ...
             Have I mentioned how much I love Spring?

Love At First Sight

            A buyer’s first impression of your home often centers on the front door. If your house is beautiful, but the front door is peeling or faded or damaged or just plain ugly ... well, you get the idea.  It's like a gorgeous model showing up on the red carpet in a stained, torn dress.  You know she's beautiful, but it's kind of hard to look away from the stain.
            Adding pizzazz to the front of your house can be as easy as painting the door.  If paint won't fix the problem, you can replace it for as little as $100.  Brighten things up with a snazzy new color, polish the hardware and clean the glass.  Be sure you clean the casing around the door while you’re at it.  You’ll be amazed at how much this one simple and cheap step can improve your home’s appearance.
            Before you shop for paint colors for your door, you'd better look with an unbiased eye at your siding, brick, trim and guttering.  Most of the time, it will look fresh and clean with a simple power wash but if it's been several years, it might be time to paint.  Paint is your home's protection against the elements, so don't put it off.  Delaying will only cause more maintenance down the road.
            

Accessorize, Accessorize....

           

            Ideally, you want your home to have that "Wow!" factor that sets it apart from other homes in the neighborhood. Depending on the style of your home, shutters or window boxes might be just the touch you need.  Either option is relatively inexpensive, easy to install yourself and can be done in a weekend.  There’s nothing quite like window boxes overflowing with flowers to add charm to your home's exterior.
           And to charm a potential buyer.

            It's easy to overlook the driveway and walkways but if the surface is cracking and weeds are sprouting through, it can ruin the look of your home.  Spend a little time killing weeds and filling cracks.  You can even use bricks or flagstones to add a walkway or to widen the parking space you have.  They’ll add an elegant touch to what is usually just a boring slab of gray.

           

Bring Me Flowers!

           

            There was a time when having flowers in the front of your house meant a lot of extra work, weeding and mulching and weeding again.  Fortunately, we live in 2013.  Container gardening is a great way to add a splash of welcoming color to the front of your house without all the hassle. You can buy containers already overflowing with flowers at any garden shop or nursery.   Fill your porch with color.  With a little water, it will look beautiful all summer. 
            Of course, if you really want to bring me flowers....

        

Shave and a Haircut

            I know I don't need to tell you that your lawn and flowerbeds need to be trimmed and neat and tidy.  In addition to the basics however, there are several simple things you can do to improve the landscaping without spending your life's savings.

            Build a new flower bed or simply clean out the old ones and start over.  It's astonishing how much new plants and a new design will update the look of your home.  If you don't feel qualified to decide on a new design, your local nursery will happily supply you with ideas.  
            Landscaping is the not-so-secret key to making your house the most attractive house on the block.  But one word of caution here. As much as landscaping will improve the look of your home, it sadly doesn't add any money to an appraiser's determined value, so bear that in mind when you're planning.  

Set boundaries

            Sometimes a little definition is in order. Fencing can do much more than keep the dog and kids in the yard. Make sure any existing fencing is straight and clean and the gates are working properly.  If you don’t have fencing, consider adding some.  You don’t have to completely fence the yard to change the look of your house.  Adding vinyl fencing and a gate that stretches from the side of your house to the property line will accomplish the same thing for a fraction of the cost. 

            Another great way to add definition is to give your mailbox a makeover. This might be as simple as buying a new mailbox at your local hardware store or planting a small ring of flowers around the base of the mailbox you already own. Whatever you choose to do, make sure it matches the style of your home.  Your mailbox should be an extension of your home’s overall appearance.

            Outdoor lighting is another dramatic and effective way to add interest to your home.  Luckily, you can accomplish this without extensive wiring.  Solar lighting is not as bright, but can still add accents to landscaping or trees at little cost.

The Bottomline

            If you’re willing to set a few weekends aside, everything on this list could be accomplished for a few hundred dollars.  And the payoff is not only enhanced curb appeal for your potential buyers.  It’s a new sense of pride in your home.

            And of course, the envy of your neighbors.

Lies Sellers Tell Themselves

What’s it worth to ya?

            Part of the realtor’s job is something we fondly call a CMA. 

No, that’s not the Country Music Awards.

“CMA”, in real estate parlance, stands for “Comparative Market Analysis”.  It’s a tried and true method of determining the approximate value of a piece of property by comparing similar properties that have sold or are currently active listings.  This little document helps both the realtor and the seller determine how best to list a property for the quickest sale at the most money.

            Because that is the goal, right? 

Seller Quote #1: “My neighbor sold his house for Cash….”

            Rumors fly like Superman on speed.  Sometimes, a seller will have heard that so-and-so down the street got $fill in the blank from a “cash buyer” (from out of state, of course).  I suppose there might have been a time when a buyer from out-of-state would come for a visit, see a property, be so amazed at the price (compared to their own state, of course) that they would plunk down cash to buy it right now.

            In the words of an old song, “Those were the days, my friend”.  

            That buyer is as hard to find as Bruce Willis’s hair.   

            In today’s market, buyers are savvy.  They’ve done their homework and know pretty well what every single house similar to what they’re looking for has sold for, when it sold and whether the current owner is happy in it or not. 

Well.  Maybe not that last one.

            Anything that’s a matter of public record is easily accessible these days.  And sale prices of homes are public record.  Anyone, anywhere, can look it up with the click of a mouse. 

            Cash buyers exist, but they’re just as savvy as everyone else.

Seller quote #2: “You can always go down, but you can never go up.”

            It’s true, that it is difficult to raise the price on the house once it’s on the market, but don’t lose sight of the ultimate goal.  It’s the most money in the least amount of time.

There is no more important element when listing a house than determining the right price. 

Buyers have a different goal.  They want the most house for the money they can spend.  "Most house" might mean the largest, or the newest or the prettiest.  All buyers have different priorities. One thing is certain. If you list too high, you will limit your number of showings and may prevent a potential buyer from making an offer. 

            So, ask yourself this.  Do I really want to keep this house sparkling clean all day every day, seven days a week, for six months -- or nine months -- or a year?

Seller Quote #3: “I know the carpet looks bad, but the buyer can replace it.”

He could. 

But he probably won’t.  He’d rather find a house where he doesn’t have to replace carpet. 

This doesn’t apply to all price ranges, of course. But even in a $70,000 house, if the buyer has two to choose from, and one has fresh paint and one does not, chances are really good he’ll pick the new paint. 

Don’t forget the buyer is choosing a home, not just a house.  The quicker he’ll be able to turn it into the home he’s dreamed of, the quicker your house will sell. 

So if your carpet was installed in 1962 or you have an in-home-day-care and the Kool-aid stains to prove it, you’ll need to replace your carpet to get most money from your home.

            If the price of your home doesn’t justify new carpet or you simply can’t afford to spend the money, have it cleaned by a professional at the very least.  You want to make the best impression you can.

Seller Quote #4: “I Want to Sell “As-Is.”

            No, you don’t.  Really.  You don’t.

            Not only will you limit your buyers to people who have enough extra ready cash to complete repairs, you’ll limit buyers to people who are getting loans that don’t require repairs.  That means, no buyer who qualifies for USDA, FHA, Freddie Mac, Fannie Mae or VA loans would be able to buy your house.  All of these loans now require the appraiser to look for things that need to be repaired.

            And repairs have to be completed before the loan closes.

            “AS-IS” means you’re agreeing to sell your house for less than it’s worth.

            That is not anyone’s goal.

Seller Quote #5:  “I Need at least 24 Hours Notice To Show.”

            Do you really need 24 hours?  Or would you just like to have 24 hours? Often sellers think a buyer can wait till tomorrow to look, but what if he's in town for just today?

            Despite all the stress we realtors put on keeping things neat and tidy, if we can’t show it, we can’t sell it. 

            So, unless your living rooms looks like a team of oxen spent the weekend, don’t say no. Say, give me a couple of hours, or the afternoon, or whatever you need to make things presentable. 

            Whatever you do, don’t turn down a showing.

            Showings are like the raffle tickets of the real estate market.  The more raffle tickets you buy, the better your odds of winning. 

            The more showings your house gets, the better your chances at making a sale. So, never, ever say “no”.

Seller Quote #6:  “So-and-So sold his House the First Day it was On the Market, so It must have been priced too low.”

            Sellers want to get the most money in the least amount of time, right? 

            But not on the first day or even in the first week it’s on the market!  That’s too soon!

            Everyone has a tendency to second-guess themselves.  We all do it.  But if you’ve priced your home with the advice and information gathered by your realtor, you priced it right. What realtor would want your house to sell for less than it’s worth?

            So why did your friend get a buyer so quickly?  Because Realtors are pretty savvy too.  We look several times a day for a new listing that we think would be perfect for our actively searching buyers.  And when we find it, that’s the fun part of the job!       

            As the seller, you have no idea how long that particular buyer has been looking for a house.  You don’t know how many houses they’ve rejected before they found yours. The only thing you know is that they think it’s perfect for them. 

            And that makes it perfect for you, too!