Getting Ready to Sell

Before you put your house on the market, you need to mentally prepare to sell it. You need to begin thinking of your house as a marketable commodity. The goal is to get potential buyers to see themselves in your home. As difficult as it may be, the more emotion you can take out of the process, the easier it will be.

Along these same lines, you need to take “your family” out of the house. While you begin to prepare your home for the selling process, go see a model home.  Notice the furnishings and the lack of personal items. These homes look like anyone could live there – that should be your goal too.

You may want to pack some things early – like excessive photos and collectibles. You want to get rid of knick-knacks so buyers can envision their belongings in the house. When you pack your boxes, don’t leave them in the garage. It’s better to rent a storage unit because the less clutter, the better. Remember, potential buyers will be looking everywhere. Getting you and your home emotionally and physically ready for sale is an important beginning to the sale process. When you’re ready to sell your home, we can work together to make the sale a success.

Questions for Your Lender When Buying a Home

You often hear people talk about shopping for a loan, but what questions do you ask while you're shopping?  Getting answers to the following questions will help you make an educated decision on the type of loan that best suits you.

• What are the most popular mortgage loans? Which one fits me best and why?


• What is the rate for this loan? Can I lock it in, for how long? If the rate drops can I get that rate?


• Can I get a “good faith estimate” on closing costs? Are they negotiable along with rates, terms, and fees?


• Will I have to buy private mortgage insurance (PMI)? For what term? For this loan?


• What documents do I need for the loan approval process and once it begins, how long will it take?


• Are there penalties for making extra payments or pre-paying the loan?


• Once in escrow, how long will it take to close the loan?

Once you get the information you need we can review your options and get you that pre-approved loan and hopefully that home of your dreams.

     

About Moving Companies

Consumer complaints against moving companies have been rising. Following are some tips that can help your move go smoothly. Get a binding estimate from the moving company. Make sure the amount is written in the contract. 

• Inquire about their on-time record and other complaints with the local Better Business Bureau or consumer complaints department.


• Movers are limited by law, regarding what they can give you for lost or damaged goods. To cover potential damage, check existing homeowners or renter's policy.


• Ask about expected gratuities and write into contract.


• Have the contract include a guarantee of how many hours the job will take, allowing an overrun of no more than 10%.


• Be sure all charges are listed on contract.


• Inform the moving company of how many stairs are at your new home.


• Watch loading and unloading and examine all items carefully before signing a receipt. 

 Document an inventory of your belongings before you pack!       

Buyer’s Home Closing Checklist

Have you made a final walk-thru inspection of the property?

Is the condition of the house or property as it should be? Are there any personal property items left behind by the Seller. Is everything in working order? Did you order a Home Warranty policy for future repairs? If so, did you review that policy?

Are you satisfied that the Seller provided you with all required disclosure documents or any known defects on the property?

Have you carefully reviewed your mortgage closing documents? Are the lender’s closing costs as they represented they would be? Are there any “junk fees” added on that you do not agree to? Are the names correct on the mortgage or Deed of Trust documents?

Is the loan amount, interest rate, term of the loan, and prepayment penalty correctly stated? When will your first mortgage payment be due? Where will the payment be made?

Do you agree with the title fees being paid to the title company, attorney, or escrow agency? Are they the same as previously quoted to you?

Do you understand the prorations, those items or costs of which you will pay a portion of or be given a credit for? Are the prorated dates and amounts correct?

It is clear on which day you will take possession of the property? Will the Seller hand over the keys on the day of closing or at a later date?

Is the purchase price correct on the closing documents?

Have you been credited for all deposits put into escrow either by you or on your behalf?

Is your name correct on the grant deed? Is it spelled correctly, and does it include your correct middle initial? Is the manner in which you will take title stated correctly? Is the legal description of the property correct? Does this description conform with the one given in the title report? Are all the easements and rights-of-way properly listed?

Were any questionable items on the title report removed or explained to your satisfaction?

If there is any personal property included, are you being given a Bill of Sale, and do you agree with the items included?

Are you paying for fire insurance yourself outside of escrow or through the closing agent? Is the premium correct and is the policy for a full year?

Are the property taxes being paid in full? Ask when the next property tax bill will become due.

Does your state allow a Homestead exemption? If so, and you want to choose this option, ask how you file for Homestead exemption status.

Check that the return address on the Deed is where you will want the recorded Deed to be sent. (You will want to keep this official document in a safe place).

Window Safety Checklist

Fires and falls of all kinds are among the leading causes of injury and death in young children. While some falls occur from windows, it is important to realize that in the event of a fire, a window can also save a child's life. This is why windows play a critical role in home safety. Print out this checklist and use these tips to help keep your family safer around the windows and patio doors in your home.

Has your family developed an emergency fire escape plan?
Determine your family's emergency escape plan and practice it regularly. In the plan, include two avenues of escape from every room. Remember children may have to rely on a window to escape a fire. Help them learn to safely use a window under these circumstances. Make sure you have identified a safe meeting place outside. 

Do you keep windows shut when children are around?

You should keep your windows closed and locked when children are around. When opening windows for ventilation, open windows that children cannot reach. Also, set and enforce rules about keeping children's play away from windows and/or patio doors. Falling through the glass can be fatal or cause a serious injury.

Do you leave, or have you left, windows open because you thought the insect screen provided a safeguard from a fall?
Don't rely on insect screens to prevent a fall. Insect screens are designed to provide ventilation while keeping insects out; they are not designed to, nor will they prevent a child's fall from a window. 

Is there furniture placed under or near windows in your home?
Keep furniture - or anything children can climb - away from windows. Children may use such objects as a climbing aid.

Do any windows in your home have guards, security bars, grilles or grates?
These windows are useless in an emergency if the devices on them do not have a functioning release mechanism. Time is critical when escaping a fire. Consult your local fire department or building code official to determine proper window guard placement.

Inspect your home's windows carefully. Are any windows in your home painted or nailed shut?

Never paint or nail windows shut. You must be able to open them to escape in an emergency.

Do you have any window unit air conditioners in bedroom windows or other windows in your home that may be needed for escape or rescue in an emergency?
Do not install window unit air conditioners in windows that may be needed for escape or rescue in an emergency. The air conditioning unit could block or impede escape through the window. Always be sure that you have at least one window in each sleeping and living area that meets escape and rescue requirements. 

Did you know that strategic landscaping may lessen the extent of injury sustained in the event a fall does occur?
Plant shrubs and soft edging like wood chips or grass under windows to cushion potential falls. The surface can greatly affect the degree of injury sustained from a fall

Maintenance Must-dos

First-time buyers often don’t know a lot about home maintenance. This maintenance checklist was adopted from “Maintenance Must-do’s” by John N. Frank published in Realtor magazine.

Inside Tasks

Change your furnace filters monthly. It’s so easy to do but so critical. Clogged filters decrease furnace efficiency and can cause breakdowns.

Drain your water heater at least once a year. Sediment will drain out along with the water from the water tank. Removing sediment can prolong the heater’s useful life.

Check your circuits. Test the performance of the circuit breakers in your electrical circuit box twice a year by flipping them off and back on. If you have a circuit that keeps shutting off with normal daily electrical use, call an electrical. A faulty circuit breaker could indicate a short in the wiring inside your walls.

Watch out for drips. Check under sinks periodically to look for leaks or water stains that might indicate leaks. Catching a small problem early can prevent water damage. Use a plunger to clean out sinks and tubs whenever water doesn’t drain normally.

Replace regularly. Water heaters, furnaces, roofs, and other key components of your home should be replaced before they fail, based on their average useful lives.

Outside Tasks

Keep the wet out. Water is a major enemy of your house. Check each season for signs of water damage to your home. Flashing, the metal pieves used to seal the areas between roofs and chimneys and around doors and windows, are especially vulnerable to damage by wind or age. Loose flashing can let water seep under a roof or inside walls, which in turn can cause mold.

Get to the bottom of things. Check your home’s foundation for cracks or gaps that could let in water or varmints. Also look at the ground around your house. As homes age, they often sink slightly below the surrounding ground. This settling lets water puddle against the foundation and possibly damage it. Doing major lndscap8ng work also can cause changes to the ground’s pitch that let water flow toward the house.

Look up. Chimneys take a great deal of weather abuse. Visually inspect them each year for signs of loose mortar or loose or missing bricks. Have the inside s of chimneys cleaned every two to three years. Also check your roof for loose singles or dangling gutters. 

Schedule For Replacement Exterior painting 5-10 years Furnace 15-50 years Roof 3-15 years Water Heater 7-15 years Wood Deck Staining 4-7 years

Preparing Your House For Sale

Outside Curb Appeal is the first impression of your house.  Keeping the grass cut and the area tidy will help make a great impression.  Paint or wash the exterior of the house (including windows casings, shutters, and doors). Wash the windows inside and out. Check the gutters and chimneys.

Touch up the Interior. Put a fresh coat of paint in the most used areas of the home. This will clean as well as brighten up the rooms. Wash the walls where paint is not appropriate (i.e. wall paper, paneling). Shampoo dirty carpets. Get rid of clutter. Clean out your closets, garage, basement and attic. Use self-storage if necessary.  Replacing air filters will help keep the dust down. Getting rid of any bad smells Pay attention to pet or cigarette odors. Place scented potpourri around the house. On the day you’re expecting a potential buyer, pop a batch of frozen cinnamon rolls or home made bread into the oven for a great aroma. 

 

Replace bathroom and kitchen fixtures that are worn or leaking. People will notice a leaking or worn out faucet. By replacing these items you will give a new look to the room. Clean under the sinks. If there is any leaks fix them. Then clean up the damage using contact paper or paint

Discounted Real Estate Brokerage

I am sure most of you have heard of them. These are companies that charge 1-5% realtor fees or pre-set fees. But if you’ve heard the expression “you get what you pay for” - this is a very good example of that.

What do you get for the set fee brokerage or 1% fee - Your property gets entered in the MLS system, a lot of times partial or incorrect info makes it through; and you get a small sign in your yard (might as well be FSBO at least you’re in charge). With 2-3% in addition to the items above, you might get a lockbox on your door.

With 3-5% you might get a bit more. Maybe a bigger sign, and maybe a listing in the brokerage’s website; occasionally a newspaper ad. You have to understand that the only way these companies make money is to turn a lot of volume to make up for the money lost in discounted commissions.

Have you ever tried to call one of the numbers on these “discounted commission” companies? Try it! A lot of times you get this answer: “you’ll have to call a local agent if you want to see the property”. Last time I got that answer I tried to explain to the lady that I WAS a local agent and I needed the code to the lockbox so I could show the property. She wasn’t sure who would have that, but she promised to call me back.

Now if you think that these agents are doing the same quality job that they would’ve done had they gotten the full 6-7% commission, you’re mistaken. Put yourself in those shoes! If your boss called you in the office tomorrow and said: “Hey, John, I’m having a hard month and can’t pay all my bills this time. Would you work for $7/hour this month instead of your regular $15/hour? I would really appreciate it!” - I can almost hear you give him a piece of your mind right there on the spot! “Is he kidding?  What about YOUR bills? Is this a joke? If it is, it sure is a very bad one!”

My point is that we realtors rely on those commissions to take care of our businesses as

well as our families. Actually we don’t get to collect a penny of that money until your house sells, which sometimes takes a long time and a lot of operating expenses (signs, lockboxes, MLS fees, phone, fax, copies….) or advertising in the media - newspapers, magazines, TV, web and more. All this comes out of our pockets, and if your house doesn’t sell, we never recover those expenses!

Here is another  view at this discounted brokerage trend: after your discount agent has listed your house in the MLS, it is exposed to hundreds of other agents working with buyers. You think: “Good! One of them will sell it!”     Here is the question though: Do you think these buyer’s agents would rather show and sell houses where they would receive their full 3% commission or the ones that they would make a mere few hundred dollars?! I’m sure you know the answer to that.

By the time you go thru a few of these “cheap” options of selling your house, and your house still hasn’t sold, you realize that maybe you should call the “real” agents to get the job done. By this time you have already lost valuable time, you have lost the market’s interest on your property, and you sure didn’t save any money.

Please, keep all this in mind if you are thinking of selling your home! It is true that not all of us (realtors) are cut from the same cloth and even for the same commission, we will all offer a variety of levels of service, and this is the part where YOU have to do your HOMEWORK: interview more than one agent and more than one company and compare what each has to offer. I hope you would include me in the list of the agents you will interview for the job! I would be honored to represent you in such an important occasion.

Create More Usable Closet Space

Extra storage is always a plus, whether you are selling your home or staying put, but if you are indeed planning to sell, maximizing your storage space is         essential.  Extra storage space helps attract homebuyers, and lets you stay organized while the home is still yours. 

De-clutter:  Before you decide how much storage you need, decide what you can throw away, sell, or donate.  And look on the bright side--if you pitch it now you won't have to pack and move it later.  

Evaluate Bedroom Closets:  Are there single rods running from end to end in each closet, with a single shelf above each rod?  That arrangement is typical in the traditional smallish closets we see in extra bedrooms, and sometimes even in walk-in closets.  How about your clothes, are they packed so tightly that you can't find what you're looking for? Are the top shelves filled with things you haven't seen for years?  Start emptying the closets, one at a time, putting items in three piles: (1) Things to keep that will stay in the closet, (2) Things to dispose, donate, sell, and (3) Things that are stored in the wrong place, put in a plastic bin to tote to other areas. 

So get started and look at everything with a critical eye. If you haven't used it for two years, do you really need to keep it?

Summer Staycation Ideas

Many people are cutting back on big vacations this summer. Here are several ideas for inexpensive stay-at-home vacations.

1. Make a list of all the local destinations that out-of-towners would visit if they came to the area. Pick one and pretend you're an out-of-towner.

2.  Rent a hotel room for a night and live it up— play in the pool, order room service.

3.  Consider a 3-day fishing, hiking, camping, horseback, surfing excursion.

4.  Likewise, consider creating a 3-day themed vacation where you study a particular person, topic, or art form that's represented locally.

5.  Have a camp-out in your own backyard.

6.  Volunteer to do community work by improving a park or helping at the food bank.

7.  Plan to go to a local event, like a rock concert, film festival, or car show, instead of fighting traffic, plan on getting a hotel room in the vicinity.

Stranded Car Dilemma

Imagine you are driving alone in two-seater car on a deserted road in blizzard conditions, when you see another car which has recently run off the road and into a tree. There are three people in the stranded car, none of whom is injured:

· An old friend, who once saved your life

· Your greatest lost love and childhood sweetheart

· An elderly lady

No-one has a phone. The likelihood of any more passing traffic is effectively zero. The conditions are too dangerous for people to walk anywhere. It is not possible to tow the crashed car. The nearest town is an hour's drive away. It is very cold and you can see that the three people are shivering uncontrollably.

The question is: Given that your car is just a two-seater, in what order should the stranded people be taken to the nearest town?

ANSWER:  There is no right or wrong answer, but the most creatively balance solution is:  Ask your old friend to drive the old lady to town and get help, while you and your lost love keep each other warm and wait for help to arrive.

Most people get stuck on this dilemma because they refuse to give up the driver’s seat. The moral is that when you’re stuck on a problem in life, try moving all the pieces around to come up with new combinations. Get someone outside of you to help you see the possibilities from a different perspective.

A Divorce Plan

How do financial divorce professionals help?

Financial divorce professionals understand that divorce is very difficult even when both parties agree. The division of assets – house, all property, money, retirement funds, everything that has worth – is one of the most difficult issues that must be decided. Not only are current worth and tax consequences important, but future worth and future tax consequences must be calculated as well.

Financial divorce professionals specialize in the financial issues of the division marital assets. They work with divorcing clients by showing long-term consequences of any suggested settlement proposal. As a result, both parties know what to expect and can rebuild their lives on reasonable financial information and planning.

The power of seeing the end result.

What’s missing in most divorce processes is financial expertise which can accurately forecast the long-term effects of the final settlement. Divorce planning software graphically reveals the economic consequence of divorce settlements and court orders.

This can lead to settlements between parties instead of lengthy, expensive court trials; less anger and bitterness as each party takes part in the decision-making process and less upset for the children.

Divorce planning software includes input of net income, expenses, assets, retirement pay, social security, investments, child support, and maintenance. It automatically applies formulas for salary increases, inflation, return on investment, taxes on maintenance, and recent tax law changes.

Output includes financial status, cash flow, net worth of each individual spouse, an infinite variety of settlement scenarios over a life plan, and columnar and graphic formats.

Let’s look at a case study.

This Case Study will show you the power of divorce planning software:

Paul and Karen are 40 years old and have two children. They own a home worth $365,000 with net equity of $177,500. Their IRAs and 401(k) retirement plan total $422,500 in value. Paul earns $90,000 a year. Karen earns $18,900 a year.

Paul proposes that Karen and the children will get the house, which will be deeded to her. She will also receive $122,500 of the retirement moneys and Paul $300,000, thus dividing the assets equally. Paul will pay Karen alimony of $1,600 per month for 5 years and child support of $500 per month. He will also pay for college which will start in 4 years. Paul’s expenses include his normal living expenses, child support, alimony and college costs. Karen’s expenses include support of the children and are reduced when each child leaves home.

This appears to be a reasonably fair settlement. However, an analysis creates the financial future illustrated in the following graph.

Graph #1

Graph I shows that within 10 years Karen’s assets are gone (including the house) while Paul’s net worth has increased.

Using divorce planning software, a financial divorce professional will show you the financial result of any given proposal.

Graph II

 

Graph II shows how more alimony for a longer period of time helps Karen while Paul is still able to increase his net worth.

The sample case illustrates the value of financial planning as a means of more equitable divorce settlements. If the court’s intent is to treat both parties in divorce as equitably as possible, it is essential to analyze the marriage as a financial contract, with tangible investment into it by both parties.

Remember, with Collaborative Divorce, you and your spouse agree with your lawyers that you will settle the case and not go to court. This is usually less costly and takes less time. It produces “win-win” settlements and allows you and your family to retain your dignity through this stressful time.

Call a financial divorce professional to schedule an appointment. This could be the most important phone call you’ll ever make.

Courtesy of Financial Divorce Association

Tips On Homeowner’s Insurance

You're a statistic. To an insurer, you're not a person; you're a set of risks. An insurer bases its premium on your "risk factors," including occupation, who you are, what you own, and how you live.

Know your home's value. Before you choose a policy, it is essential to establish your home's replacement cost. A local builder can provide the best estimate.

Insurers differ. What seems to be the same product can be priced differently by different companies. Save money by comparison shopping.

Don't just look at price. A low price is no bargain if an insurer takes forever to service your claim.

Go beyond the basics. A basic homeowner’s policy may not promise to entirely replace your home.

Demand discounts. Insurers provide discounts to reward behaviors that reduce risk. However, people waste money because they don’t ask for them!

At claims time, your insurer isn't your friend. Your idea of fair compensation may not match that of your insurer. Prove your losses so you get what you need.

Prepare before filing a claim. Keep your policy updated, and reread it before you file a claim so there are no surprises.

The Importance of Homeowners Warranty Seller's Coverage

While your home is on the market, a Homeowners Warranty Plan provides repair and replacement coverage for your home's systems & appliances. The plan helps avoid closing delays while providing budget protections.

The benefits of seller's coverage:

• Immediate Protection - coverage starts at time of application and continues through close of sale.
  
• Sell Your Home Faster - by providing a competitive edge over other homes on the market.
  
• Attract Solid Offers - because buyers feel protected from unknown after-sale problems and will be more likely to offer a higher price.
  
• Feel Secure - knowing that the seller's coverage will take care of unforseen home system & appliance breakdowns during the listing and selling period, which could delay closing.
  
• Have Confidence - knowing that covered service problems will be handled for the buyer after moving in, which means additional after-sale liability protection for you.
  
• No high repair or replacement costs for you.
  
• No searching for a reliable contractor to fix your problem.
  
• No closing delays.

New Home Checklist

Heating System
      Check filters every month.
      Have annual system maintenance service done one month before the heating
            season.

Electrical System
      To prevent power outages, limit the number of appliances plugged into one
            circuit.

Air Conditioning
      Check filters every month.
      Have annual system maintenance service done before the hot weather season
            begins.
      Keep the condensing unit free of debris.

Refrigerator
      Clean the interior shelves, shell, and gaskets every three months.
      Once a year, clean the coils on the back or underneath.

Range/Oven
      To avoid damaging the burners, do not use extra-large/heavy cooking pots
            and pans.
      If you have a self-cleaning oven, do not use any other method to clean it.

Dishwasher
      Mineral deposits on the heating elements can be cleaned with vinegar.
      Be sure dishes don't block or damage the spray arm.

Garbage Disposal
      To clean the disposal, push a tray full of ice cubes through it while running
            cold water.
      Always remember to run water during use and for at least 2 minutes after
            you finish. This prevents stoppages.

Washer & Dryer
      Clean the lint screen after each load of clothes has been dried and the unit is
            empty.

Trash Compactor
      Replace the deodorant supply regularly to prevent odors.