Bob Smith

If the buyer can read, probably not. But, for some who really do not understand the market and how homes are priced, it is a good idea to present the following facts and have the buyer sign a notice of the facts.

The square footage of a house may be an important factor to a buyer in deciding on a purchase price. As a result, the buyer should consider several factors regarding square footage issue.

First, the buyers offer is a dollar based offer, it is not based on the square footage of the house. Remember the contract does not have a provision that the property is being sold or bought on a per square foot basis.

Second, the square footage in the MLS is only a statement by a source, such as a tax role, of that sources belief in the square feet measurement.

Third, the Seller is not warranting the square feet of the property, but is stating what a certain date source (tax roll, builder, appraiser, etc.) says they think it is.

Forth, appraisers can have a disparity in square feet measurement especially for a house with a complex design features.

And last. The price the buyer offers is based on many factors that square footage price may not take into consideration such as location, market demand for that area, condition and drive up appeal.

I have had buyers who wanted to work and rework over the per square footage price of a house to try to arrive at the price that made mathematical sense.

A purchase of a house is often based on emotion and feels the buyer has for the house, the neighborhood and the school system. If the area is HOT and the homes that are listed have sold for a short number of days on the market and at or above 100% of list price, square footage is meaningless. The buyer, if they want the house, is going to have to pay the sellers asking price. If they do not, then the buyer who does recognize they will have to pay the asking price will win the negotiation. Our exceptional real estate guru, Bob Baker in Plano came up with this notice and can be an important part of your buyer package.

Probably the most difficult part of finding a new home is making a matrix of decisions before you take the first step.

From a realtor's point of view, the basics need to be covered.

What is your budget for your new home? Have you considered county, city and school taxes as part of your monthly payment? Will you also need to include some money for painting and carpeting? Will some landscaping need to be done to make it "right"?

Once you have established the "How Much", the amount of money you have available to purchase your new home, we need to fine tune your next steps.

"Where" will we live, becomes the next thought? Here we have a number of decision criteria that need answers. The closer to work you live, probably the less stressed you will be when you start your drive to and from home. A thirty minute drive is a whole lot better than a long drive in heavy traffic. So what is your drive time?

Within the "Where will we live" are considerations of the safety of the neighborhood, the school system, the structure of the traffic arteries (straight shot with few turns or a winding, time eating, drive).

Within the area do you want a great landscape with good size yard? Are you willing to take an older home in a more mature neighborhood or do you want a relatively new home? Many older homes have "good bones" and could be more solid then new construction.

Next comes the size of a home. If you are still planning growing your family, consider the square footage you will need. Since homes usually appreciate in value, considering the stability of the neighborhood, buying an affordable home with the size you will need is a good decision. If you are thinking of downsizing, there are a number of subdivisions I know where most of the residences have made the decision to buy a smaller, but a comfortable and pretty home.

I would always recommend you have a master bedroom on the first floor if the home you are considering is two stories. You will have a heck of a time selling a home with the master on the second floor. Also, consider how the house is orientated. Will you have the West sun in the front, back or side yard ... it will make a difference if you want a pool or shade.

Now, we are at the "When" question? Interest rates are a historically low. So the question is when are you going to take advantage of the rate and the available inventory before both rate and house value goes up?

There are probably a hundred other questions that will come up and I could talk a long time on each one of them.

One conversation with a knowledgable real estate agent will save you days of looking on the internet or just driving around.

No Stage, No Play

<!-- ###JFR 20080610 Tags: <a href="http://blog.homegain.com/tag/carl-medford/" mce_href="http://blog.homegain.com/tag/carl-medford/" rel="tag">carl medford</a>, <a href="http://blog.homegain.com/tag/home/" mce_href="http://blog.homegain.com/tag/home/" rel="tag">home</a>, <a href="http://blog.homegain.com/tag/home-sale/" mce_href="http://blog.homegain.com/tag/home-sale/" rel="tag">home sale</a>, <a href="http://blog.homegain.com/tag/home-staging/" mce_href="http://blog.homegain.com/tag/home-staging/" rel="tag">home staging</a>, <a href="http://blog.homegain.com/tag/homebuyer/" mce_href="http://blog.homegain.com/tag/homebuyer/" rel="tag">homebuyer</a>, <a href="http://blog.homegain.com/tag/reo/" mce_href="http://blog.homegain.com/tag/reo/" rel="tag">REO</a><br /> -->Posted by: Carl Medford on January 27th, 2009

Although, in Shakespeare's words, "All the world's a stage," in the world of theater, a play is rather hard to enact without a stage. It's been tried over the years, but traditional theatergoers prefer a conventional stage.

And so do homebuyers.

GREAT. Yet another blog on staging, you say. One more appeal to get sellers to pay money they don't have to sell their home in a market that's upside down like the Poseidon. Why bother? Haven't we heard it all?

In the immortal words of Bullwinkle the Moose, "BUT WAIT! There's more!"

The three pillars of a successful sale are: Preparation, Promotion and Price. Of the three legs, price is without question the most important of the three. Using the Pareto Principle, price actually accounts for 80% of a successful sale. Currently, discount pricing reigns supreme as REOs are flooding into the market like water through the cracked levees of New Orleans. How can a normal seller HOPE to float a normal sale against the incoming surge of lower priced homes?

Believe it or not, there are buyers out there who don't want an REO.

They aren't "handi" types. They don't have the will or desire to "make the house their own." They can't "see the potential" and quite frankly, aren't interested. And not everyone has the Martha Stewart gene for using a twisted fork as a curtain tieback. Many of these buyers are actually willing to pay more to buy a nice house that's ready to move into.

Scratch most REOs off your list.

This is where an understanding of buyer psychology is critical. Sellers need to realize that before buyers visit their listing they've already been shopping. And not for homes, either. They've been to Pottery Barn, Ashley Furniture, Crate & Barrel and more. They already have all the furnishings picked out for their new digs. They know what colors they like. You get the idea. Savvy sellers and their agents understand what buyers are looking for.

A place that ALREADY feels like home.

THEIR home. The one they want to live in. A home that resonates with them from the very first moment they walk through the front door. A home that has effectively been prepared to be a "stage" upon which they can live out the drama of their lives. Make no mistake about it: when you stage your home, you are trying to connect with the psyche of potential buyers. You are trying to manipulate their emotions and excite them into action. Just like a fine actor works the audience when you go to the theater.

If a seller wants to compete in today's market with REOs and come out ahead, staging is not an option. Sellers have to remove Price as the primary consideration -- in other words, they have to attack the 80% (Price) with the remaining 20% (Preparation and Promotion): and they have to win.

And they can - if done well. I‘ve actually seen buyers walk around and stroke the furniture in a well staged home. That caress is a touch of identification. New home builders know this all too well - if you've been to one of their showrooms lately you'll understand that even in these depressing times, their model homes sizzle.

Only good stagers need apply.

This is not for the faint of heart or the not-so-skillful. You need a stager who is at the top of their game and understands the psychological makeup of the buyers you are targeting. One with an eye for making rooms pop. If done right, the staging in a seller's home will resemble a Tony Award winning production, alongside of which the "reality shows" of REOs will pale in comparison. And get equally poor ratings.

No stage? No play. No sale, either.

Bob Smith. GRI, ABR, HHS

Spring Cleaning Checklist

With spring selling season arriving, take the time now to polish your home to perfection.

1. Let the sun in. Make any room look brighter with clean blinds and windows. Mix a solution of one part white vinegar to eight parts water, plus a drop or two of liquid dishwashing liquid, for a green window cleaner. Spray on and wipe with newspaper to avoid streaks. (Washing on a cloudy day also reduces streaking.)

Showing tip: Replace heavy drapes with lightweight shears during warmer months to give a room a brighter, lighter feel for prospective buyers.

2. Sniff out smells. Check the drip tray underneath your refrigerator and wash out any standing water from

defrosting. Remove inside odors by washing the inside of the fridge with a baking soda and water solution. Boil lemon juice in your microwave and add it to your dishwasher to eliminate bad smells. Also, put the lemon rinds down the disposal. Add activated charcoal in the fridge to keep odors at bay.

Showing tip: Make the fridge smell fresh instantly with cotton balls soaked in vanilla extract or orange juice.

3. Make your bed better. Vacuum mattresses and box springs, and then rotate and flip over. Do the same for removable furniture cushions. This is also a great time to wash or dry-clean the dust ruffle and mattress pad.

Showing tip: Add new loft to a lumpy comforter by having two people vigorously shake the quilt up and down to redistribute stuffing.

4. Clean those coils. Improve energy efficiency by vacuuming grates, coils, and condensers in your furnace, stove, and refrigerator (either underneath or in back). If a vacuum won't reach, try a rag tied to a yardstick.

Showing tip: If during the Summer, shut some air conditioning vents on the first floor or basement so that more air will reach and cool the second floor. Reverse the process in winter for heat vents.

5. Wash the walls. Grease, smoke, and dust can adhere to walls and make even the best decorating look dingy. Wash walls using a general-purpose cleaner with hot water. Start at the top of the wall to avoid drips and in a corner so that you wash one wall at a time. Rinse the mop head frequently in clean water. And don't press too hard because flat latex paint won't absorb too much water.

Showing tip: Resist the temptation to spot-clean walls since it will make the rest of the wall look dingy.

From Buyers, I hear a number of thoughts as to why they "are not ready yet ..." to buy a new home.

The number one reason usually is "we have to sell our home first". This is certainly understandable. NO one wants two mortgages unless you have won the lottery and want the tax deduction. I think most sellers are running so hard, nose down and tail up as we say, that they do not realize that NOW is the time to sell and then buy, not in September, October, etc.

Consistently for years we always see the greatest number of buyers coming to the market in April, May and June. From then on, the numbers of buyers drop off until December. After December we have another three months before the market again picks up. We see this cycle every year.

Knowing the buyers market has a cycle it goes through; sellers need to have their home drive up friendly and ready to show. Fresh paint, clean carpet, flowers in the yard, weeds removed and grass fertilized ... all of the things that need to be done to a home to make it show good if not well( look on my website for tips on making your home presentable to sell).

Bottom line:

Now is the time to sell. If your home is presentable, clean and organized and priced properly, it will sell and you're free to move on to buy your new home.

Interest rates are about as low as they are going to be... what better time is there then now to buy? IF the November elections throw the market into a crisis, the former seller may not be able to male a move for a number of reasons not his choosing.

Mortgage money IS available to buyers with good credit.

Market prices are only 4% lower then last year so home prices are holding.

Choose a home closer to work or your family. Now is the time to sell with interest rate as low as they are ...

Do not waste your time trying to sell the house yourself. There is not enough time in the day to do your job and sell your house. An experienced real estate agent knows what your home is worth and the best way to sell it. There is just one of you selling the home and there are over 40,000 realtors in the North Dallas market who have interested clients and can help make the sale. Even more important, do not waste the market's time in trying to make the sale. If you are not making milestones you can track in getting it sold, the buying market will discount the house as either over-priced or something is wrong with it. Now, you may not sell it at all... at least this year.

Go to my website and read the article "Seller's Secrets", then call me and let me walk you through the maze of selling your home. www.exceptionalhomesonline.com