You hate to see bad things happen to good people, and perhaps that's why it has taken so long for me to write this article. It happened to someone I know. But it's a story that needs to be told to protect those that I make it a point of protecting; you.

You may have heard me speak of the challenges that face those who sell their homes "for sale by owner." My neighbor decided to do that. They had been approached by another neighbor in the community interested in buying their property. They must have felt that bringing in a Realtor would be a waste of money. So they didn't, and I want you to know the three things they gave up, and how that impacted the sale. You may think this has something to do with them not hiring me to represent them, but you'll see in a moment that it has no bearing.

1. The first thing they gave up was representation. At first they believed that there wouldn't be a Realtor involved at all. But along the way they agreed to the buyers bringing in their Realtor. The result being that they were unrepresented while they paid for the buyers to be represented. Their plan to save money at this point was cut in half.

And when the appraisal came in at less than asking price, they had no one to go to bat for them. They got an unpleasant (downright rude) appraiser and felt stuck with the result. Had they been represented, it likely would not have ended that way

2. As a result of poor representation, they gave up a huge chunk of money. They received $119 a square foot (SF) while the average rate in the neighborhood was $130. They accepted an offer of $283,000 when the house should have been listed and sold for about $300,000. In fact, the house next to them, more than 200 SF smaller, sold for $289,000 just weeks after their closing. The difference was a great Realtor (me).

3. Lastly, these sellers have a long-time friend who is their Realtor (not me). Their FSBO approach kept their friend from earning a paycheck. Had they employed their friend and got just the averageprice for the home, they would have realized a $24,000 increase. After their Realtor earned his commission, they would have netted an additional $15,000.

Many people think that they can afford to be without a Realtor. I would tell you they're wrong. And I think my old neighbors would tell you the same thing. TALK to TOP.

www.TALKtoTOP.com

Each month I am in a LOT of homes. The ones that are selling at the time of this writing have one or two things in common; they are either better "staged" than the others, they are better priced, or they are both.

Staging doesn't always mean place settings and flower arrangements, though that can make a difference in how a home shows. Staging primarily means preparing the home as best you can to sell it. That can often be nothing more than keeping the grass cut. Or it could mean a new roof.

You've heard me talk about the power of new paint and carpeting, but it basically comes down to prioritizing what your home needs to be in ideal condition, then doing the extra things that will have the most impact. If the first thing a potential buyer sees is a horrible lawn, that may be the best place to spend your "staging" money.

Bank owned properties are often a great example of the need for staging. They are often missing things (carpet, faucets, light fixtures, switch plates, etc.) that make the home "feel horrible" when you show it. Sometimes they are dirty and have the feeling of abuse. And they are often absent power, water and gas, so that potential buyers don't know what works and what doesn't until they have the inspection. And if it is cold outside, without heat buyers can't wait to get out of them. As a result, these homes must be sold at bargain basement prices, although the owners are sometimes slow to realize this. Its a fact that these homes would command much higher prices if the owners spent just a bit in staging. So why don't they?

Most often banks are simply unwilling to spend the money to make the homes "habitable." I know that sounds crazy since they are selling homes, but the fact is they often try to sell houses that are simply uninhabitable. At any rate, it can mean big savings for buyers and "hard to believe" losses for the banks. But as for the losses to the bank, it's their money to lose, right?

Hey,wait a minute...

www.TALKtoTOP.com

Al "Top" Stickland

Riley Jackson Real Estate

Homeowners, you are an important factor in the sale of the homes around you. On more than one occasion I've had clients tell me as we're pulling into a driveway that they weren't interested in looking at the interior of a home. The reason? "The house next door looks scary." You might wonder why you should concern yourself about this, since you don't have any plans to move. But move you will, when the time comes. And when the time comes, you'll want not only your neighbor's help, you'll also want the property values to be at their highest.

Remember the movie Pay it Forward? Someone did something nice for someone figuring that someday the favor would be returned. In the movie the idea caught on, till everyone was doing little and large favors for others. Like in the movie, you can do somethings to help your neighbors, all the while doing something to help yourself. You can make sure that your home helps your neighbor sell theirs. Here are some helping hints:

1. Allow a small directional sign to be placed in your yard. Some people (some 9% of home buyers) find homes while out driving around, so those signs are important. I place them in an area that won't interfere with yard maintenance. And I send a small gift card as a thank you.

2. Keep the trash cans behind the fence or in the backyard. Some buyers are "put off" when they see cans aren't put away for fear of what else might be neglected.

3. Keep the yard maintained. They say that curb appeal is worth $20,000 in a home's selling value. I am convinced that there is also value in a neighborhoods' (and specifically a neighbor's) well kept yards.

4. Park cars in the driveway or better yet, in the garage. Lots of cars, especially in the street, makes the neighborhood appear crowded. This is a particular problem in cul-de-sacs (also called courts) where parking in front of homes is reduced by the circular pattern of the street. Often times people will simply park in the street, cutting off emergency vehicles and diminishing the look of the neighborhood.

5. Keep toys and sports equipment out of the street and off the sidewalks. Again, clear areas make the neighborhood look large and inviting.

It may seem crazy, but those small things can mean the difference in selling and not, especially in slow markets. And they are the difference in home prices from one neighborhood to the next. If your neighborhood homes don't have the resale value of others in the area, drive around and compare yours to theirs. If you need help or advice, TALK to TOP.

www.TALKtoTOP.com

Al Stickland

Riley Jackson Real Estate

There is nothing worse for a home seller than to enter into an agreement with a prospective buyer, virtually take the home off the market, and then find out somewhere down the road that the buyer isn't qualified.

During the peak of the housing boom, Realtors would advise their clients to investigate home buyer qualifications closely. Realtors would routinely contact the lender personally and gather as much information as possible about the buyer, sometimes even before accepting the offer. At the time, homes were scarce and sellers had all the power. Now roles are reversed and sellers tread a bit lightly for fear of scaring off a buyer.

To make matters even more complicated, new finance rules are making qualifying for a loan tougher, and the changes to lending practices are coming fast, sometimes sweeping away otherwise qualified buyers in the process. As a result, lenders are often taken by surprise when a new loan stipulation disqualifies their client.

It's difficult to distinguish a qualified buyer from a disqualified buyer when there are programs available that require little to no money down. FHA loans for example require only 3.5% down. A buyer can build closing costs into a loan and get a $200,000 home for only $7,000 of up-front contribution. Other government loans, such as VA, may require even less, and in some cases, no money down. You don't have to have a lot of money to buy a house, even in today's market.

Take heart in the fact that Realtors do their best to qualify buyers before they spend resources showing homes. If a Realtor brings a potential buyer to your home, they have likely done what they can to pre-qualify them. But that doesn't mean all will end well.

Here are three things you can do to minimize the chances that you'll begin the transaction and have it fall apart along the way:

1. Get a pre-approval letter. This is slightly more solid than a pre-qualification letter. But beware. Any letter is only as good as the loan officer writing it.

2. Ask if this buyer is approved by the Realtor's preferred lender. Realtors have one or more lenders they use regularly, and they use these "preferred" lenders because they are sure that once the process starts, it will close. Often times buyers come to Realtors with their own lender in tow, and in that situation the Realtor may not know with certainty that the buyer is fully qualified (see #1).

3. Require a loan update letter often in the process, to solidify the buyer's qualification.

Of course, having the right Realtor will help as well. If you have question, TALK to TOP.

www.TALKtoTOP.com

Al Stickland

Riley Jackson Real Estate

Recently I visited a neighbor's home as he prepared it for sale. He mentioned he had a company coming to replace several windows with blown seals (condensation between the panes). He then told me how much it was costing him. I examined the windows and noticed they were Milgard windows, and I knew my neighbor was the home's original owner. I advised him that Milgard windows are covered by a lifetime warranty for the original homeowner. In addition, this warranty is fully transferable for 10 years to subsequent homeowners.

I was able to supply the warranty number to Milgard and advised my client to call their representatives to set up his free window replacement.

When I returned a few days later, I learned my client had been unable to cancel the window replacement request with the other local glass company (he'd already paid half of the cost of the new windows) and the local company was to arrive at any moment to replace the windows.

When the technician arrived, I pointed out that the windows were Milgard, and that my client was the original homeowner. I was shocked when the technician complained that the homeowner should have told him. I pointed out that the technician should have told the homeowner! We got Milgard on the phone and scheduled a visit with a warranty technician and sent the local glass company person on his way. We also asked for a refund of the money my client had already paid, and I'm happy to report that the money was indeed refunded. Milgard came out and replaced all the bad windows in the home, a near $1200 savings.

We must be sure to investigate before we make major repairs on our homes. And when its time to sell, it helps to have a Realtor that will fight for you. Even when its just about the windows. A good Realtor will step in when something isn't right and help you get the kind of assistance you deserve.

Al "Top" Stickland

www.TALKtoTOP.com

360-359-1274

Riley Jackson Real Estate

When you talk real estate, TALK to TOP!