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8 Cheap Home Improvements to Help Quickly Sell Your Home

Ok, so you are starting to think about selling your home.  Where do I start?  What can I do to get the BEST price possible, QUICKLY!

Well first off, there is a ton of property on the market right now.  Some in great condition, some not so much.  Guaranteed several homes will be quite similar to yours and very close in price.

Your GOAL will be to make your home STAND OUT from the others.   If prospective buyer have three homes to chose from including yours, you want them to choose yours first!  Here are 8 easy things you can center on to add value to your home and make it more appealing to a prospective buyer:

1.  DeClutter and DePersonalize
Buyers will walk into a home and immediately start trying to envision themselves there.  Where will my couches fit?  Aunt Jane's buffet?  My 75 inch Flatscreen?  The more spacious the rooms, the less they will be distracted.

The same is true for Family pictures and things like collections.  You certainly still have to live in the home until it sells, but think about putting your 4 bookshelves of family photos, and wall of Star Wars figurines into storage.  Less is more.  You want the buyers to be looking and thinking about how great the room would be for an office let's say, not concentrating on "the stuff" that's in it.

2.  Clean Up the Outside
First impressions are everything!  As the buyers drive up for the first time.  Have the lawn mowed, the leaves raked.  Power Wash the Vinyl Siding.  Paint and Clean Up the Front Door and Front Steps.  If the Screen Door is Falling off and looks terrible, replace it.  The brick front steps are falling apart, the concrete stoop is cracked and dangerous, have them fixed.

3.  Add Outside Interest and Color
In the spring and summer, plant some colorful inexpensive flowers and plants.  Or tastefully fill a selection of potted plants for the front stairs.  If you already have flowering bushes and plants, CUT THEM back.  Clean them up and make them stand out and look beautiful.   You want the colors to really stand out and grab people's attention, but again less is more.

4.   A New Paint Job
One of the easiest and CHEAPEST ways to breath new life into a home is a great NEW paint job!  Now, you may LOVE the Sherbet Orange Office, but guaranteed most will not.  Part of the job of selling your home is to tell people WHAT they want.  Most will not have enough vision to imagine past the bright pink or orange walls.  Go will white or neutral, something clean they can imagine having themselves.

5.  Fix Up the Bathroom
One of the BEST places to get the most bang for your buck would be the bathrooms!  That being said, completely renovating your bathroom might not be financially possible.  But little things can help.   What can I do with my mint green and black tile?  Well if a complete rehab is not workable, work with what you have.  Repaint the walls something neutral, get a fantastic new shower curtain that works with the colors you have, and some cool simple accent towels.  New fixtures, Towel Rack, Shower Head, Toilette Paper Holder, and such certainly will help as well.

6.  Lights
Older fixtures and Dim lighting can very quickly date a home.   Newer and brighter lighting can subtly and subconsciously improve a home very quickly.  A quick trip to Home Depot for a few new lights and some brighter soft light bulbs could be cheap and make a huge difference.

7.  Windows, Shades, and Curtains
Again, less is more.   Give the curtains, windows, and shades a good cleaning.  If you have dark dated curtains, take them down for something light and clean.  The lighter and cleaner the better.  People love natural light!

8.  Give the House a Good CLEAN
Make sure the house is always neat and clean, especially the flooring.  Most people don't have the funds to replace old flooring right before a move; however, a fresh shampoo job to old carpeting and a good clean and polish to wood floors goes a LONG way.

All of these suggestions are truly inexpensive and go a LONG way to staging and showing your home!  Honestly they will make a WORLD of difference!  Put your BEST foot forward from the beginning, and you'll be good to go!

What IS A SHORT SALE??

In this difficult and uncertain market there are a TON of BuzzWords floating around.  Many which are confusing and misleading. One in particular is the word "Short Sale".    Some think it means somehow selling your property in a really "Short" time frame.  Others have told me they thought it basically meant being able to buy a piece of property "On Sale" in a quick period of time.  Honestly, both could not be farther from the truth.

Simply put a Short Sale is selling a piece of property for less money than needed to pay off the current Mortgage.  For example, the seller owes $100,000 for the property, but on the Open Market it is only now worth $85,000.   They have two options at this point:

Option #1 Sell the Property for $85,000 and go to the closing table with an additional $15,000 to Satisfy the Mortgage they owe.

or

Option #2  Go back to their bank and ask them to "Forgive" the $15,000 difference.

Now, the likelihood of having extra cash around to put in to pay off your mortgage in this market is slim; therefore, many people are choosing to walk away thinking they have NO OPTIONS.  The bank will NEVER forgive the difference, right?  Additionally, I can't pay a Realtor, Attorney, or Taxes. So what do I do?

Isn't it better to walk away and let the bank Foreclose???

           -NO!  The answer is you HAVE Options, especially if you ACT soon enough.  It is MUCH better to Sell Short than to Foreclose.  First off, you have so much more control.  Secondly, the effect on your Credit is substantially less.  This is most import if you intend to purchase an other house in the near future.  A Foreclosure hit could push you out up to 7 years before you are able to apply for a Mortgage again. 

Will the banks consider letting me Sell Short?  

           -YES they will, but like anything It is a Process.

What about the FEES?

          -All of the fees: Realtor Fees, Attorney Fees, etc. are wrapped and negotiated into the Short Sale.

The biggest problem I find is that people are embarrassed at the thought of having to let go of their homes especially if it is for financial reasons; therefore, they are waiting too long to act.  The bottom line is it is a tough market out there.  And if you need to sell your house for one reason or an other, and it is no longer worth what you need to satisfy the Mortgage, there is nothing to be embarrassed about.  You are a vicim of the economy, period.   If you wait until the bank is too close to or has already initiated Foreclosure proceeding, it is MUCH more difficult to get them to halt them and have time to sell the property.  (Not impossible mind you, just more difficult)

Well What's Involved with Short Selling my House?

            1.  Your FIRST step is to contact a skilled Short Sale Expert like myself.

            2.  I'll come out and do a Competitive Market Analysis (CMA) on the property.  Like I would do        on any other.  This will give us a range where the house will sell on the Open Market.

            3.  We'll decide on a Price and get the property prepped to put onto the Market.

            4.  You will need to IMMEDIATELY call your bank and let them know you are working with a Licensed Realtor and are ACTIVELY trying to sell your property.  

The biggest thing here is to HALT any kind of Foreclosure proceedings if possible, especially if the sale of the property is for financial reasons and your are behind on your Mortgage.  Some times they will allow you to go on payment plans for a certain amount per month for a certain amount of months etc etc to keep you out of Foreclosure and allow you to sell.  Sometimes they make you apply for a loan modification.  I've heard of many different scenarios.  

             5.  Request the Bank send you/me their Short Sale Package.  We will fill that out completely, gather the necessary paperwork (pay stubs, bank statements, etc) and basically wait for an offer.

             6.  Once a Valid Offer is received, we will submit the entire package to the bank for consideration.

How Long Can this Process Take?

          - Once the offer is received and submitted it can take 3-4 MONTHS for the bank to come back with a decision.  It is NOT a quick process.  But depending on the bank, the time varies greatly!  There are many hands involved in the process that have to sign off on this decision.  And often times getting updates on their progress is VERY Difficult!

What happens if the bank says NO?

          -The Bank most likely will not say NO per se , but then may come back to the buyers with a Higher Amount  that they will accept.  At which point we go back to the buyers to see if they can meet the amount.  If they can't pay the price, we start over.

What if the bank says YES?

         - If the bank accepts the Offer.  They will come back with a closing date, 10-30 days out most likely, and you will close as you would with a normal sale.

What could I still have to pay for?

         -Once the property sells, and for example the bank forgives $15,000.   You COULD be taxed for that amount by the government as INCOME.

For a Seller it is definitely a valid, necessary, and common solution to selling a devalued home in the Current Housing Market!  It is nothing to be embarrassed about, and it DOES work!

For a Buyer it is definitely a GREAT way to get an excellent price on some GREAT pieces of property. However, the process is very emotional and not for the faint of heart.   Keep your expectations in place.  You are dealing with big banks and faceless voices.  You will have to spend money on Inspections and Purchase and Sale pretty much right out of the gate.  It could take quite some time, be very difficult to get updates while waiting, and at the end of the day they could come back and say NO to the price you offer.   The risk to you is a few hundred dollars and the time waiting for the answer.  But if it is truly your dream home, and the price is right, it is WORTH it!  

Either way, Short Sales are HERE to STAY, especially over the next 3-5 years!!!

America's Scariest Homes: Real-Life Haunted Houses

Keeping with the Season!  I love Halloween and stories about Haunted Houses.

Check out this article by Rachel Wise on FrontDoor.com from 8/05/2010 about 7 REAL life Haunted Houses in the US, including the infamous Amityville Horror House in nearby New York.

VERY spooky and cool!!  Makes you think.  Maybe the wind didn't really slam that door . . .


Enter the Haunted Houses ----> HERE!

World's Greenest Homes: Tiny Apartment Transforms - 24 Rooms

Check out the Video link below!  Talk about a COOL way to design, live, save money, and SPACE!!



http://planetgreen.discovery.com/videos/worlds-greenest-homes-hong-kong-space-saver.html

Cautionary Tale for properties For Sale By Owner (FSBO's)

Ok, So very often I overhear people chatting about selling their homes, and the first thing that they say is "Why Can't I Just Sell the House Myself".  Honestly, "Why Pay a Realtor"?  "What Do Realtors Really do Anyways?  I can CERTAINLY do it better"?

Well, I certainly know the value of having a REALTOR like myself involved, but even for myself it is interesting to see the process in action.

Just about two years ago I happened to notice a "For Sale By Owner" sign in the front of a beautiful duplex on Main Street in Northboro, MA.  Day after day for a few months I noticed the sign sit there.  First it was an ordinary HomeDepot red and white sign, then it eventually shifted to various "do it yourself" website companies like I Sold My House.com.  Each week it seemed the sign would change and that the sign reading "Price Reduction" would get more and more tattered and faded. 

After doing a bit more research, I found that the duplex was truly overpriced, the pictures online were frankly horrible, and the market presence was practically non-existent!  Ok, so I could have told you that without doing the research.  But I would always think to myself "ok so do the owners really think that this is worth it?"  Fine, they are saving the cost of the Realtor Commission; however, in a declining market, their already overpriced house has now sat for almost two years.  Guess what, they are now most likely going to get even LESS than what they would have gotten two years ago if it had been positioned correctly on the market.

So, I shook my head and moved on with life until that next week, after OVER two years, a Realtor Sign appeared on the front lawn.  That was Monday.  

When I drove by on Wednesday, THREE days later, the Rider read "SOLD"!!  It closed not soon after.

So, the moral of the story.  In one of the toughest Real Estate markets in US history trained professionals that spend hundreds of dollars a month in advertising, who know every trick, every statistic, every law,  who spend hours in classes each year on how to sell and price property,  are having issues selling properties.  How can someone without any of those resources or knowledge even begin without help?

The proof is in the pudding!  Look at the House in Northboro . . . .  What we do works!

Fannie Mae's 2010 Incentive Program to Help Buy Foreclosed Properties

The Deal with "Rent to Own"

In this crazy market and economy, it is the growing consensus that renting will be here to stay.  More and more Americans will be forced to rent: a. because they suffer from some sort of credit deterioration due to lack of payment or foreclosure because of financial circumstances or b. because they simply don't have the resources for a down payment and a monthly mortgage.


That being said, truly if you have great credit, and cash in the bank.  NOW is the time to buy.  With mortgage rates at an all time low, and falling home sales, there is no better long term investment.  Why pay someone else's mortgage, when you could be paying into your own??


An option that often comes up with renters is "Rent to Own".  I can't tell you how often I hear from prospective tenants . . ."Oh but would definitely consider renting with the option to buy".  And vice versa from the Landlord side.  People feel like this is a great bonus for the opposite side.  However, truly "renting to own" has been so rarely done in the past years, no one really knows what is entailed.


What is needed is this:


1.  The person renting with the idea of buying will need to come up with a substantially large NONREFUNDABLE deposit.  The reason for the deposit is honestly so the renters have some skin in the game and don't just up and walk away if they change their minds.  This keeps them invested and obviously protects the landlord.  If they back out, the landlord keeps that deposit!


2.  A month rate needs to be agreed upon by both parties as to how much will go towards the actual payment of the property on a monthly basis.  For example, the monthly rate agreed upon in the lease is $1000 as it stands.  This rate is the amount the renter pays currently to the landlord to cover all the expenses pertaining to the property: upkeep, mortgage, etc.  Those expenses will not go away just because it becomes a "rent to own" situation.  Therefore a NONREFUNDABLE amount above and beyond needs to be decided upon that will go towards the purchase, for example $200/month.  So, $1000 would still need to be paid to cover the cost of running the property, plus the NONREFUNDABLE $200 to go towards the purchase, increasing the rent to $1200/month.


3. A time frame and cost for the property needs to be decided on and agreed on in writing.  So, for example you decide that $200/ month will go towards the purchase price for 5 years.  In that 5th year, you will apply for a mortgage and buy the property outright for $200k.  Ok, well the danger in that is this.  As of today let's say, the property is worth $200k.  In five years it is worth $400k(wouldn't THAT be nice).  Well whoo hoo for the buyer.  They would be getting an amazing deal, and the seller . . . not so much.  But look at the reverse, in 5 years the property is worth $130k.  As a buyer, you would really be taking a huge hit, and the seller would definitely be making out.


All and all, it is a gamble.  For people who want to own a home who are really struggling from the aftermath of bad financial situations, like bankruptcy, foreclosure, is this a viable option?  No doubt!   But like anything else in this world, being forewarned is being forearmed!  Ask LOTS of questions, and go into it with your eyes WIDE open to the risks involved!!


~Pierre