A federal tax credit of up to $8,000 is nudging many Americans into buying a home for the first time, good news for those trying to sell one.
Selling a home in today's market isn't easy but it can be done, especially with a home selling team as dedicated as mine. To get a first time home buyer to submit an offer on your home it must stand out from the competition, including homes in your area for sale and also in neighboring cities with similar pricing. One thing going for a seller is that a home buyer will have an easier time picturing themselves in a well maintained lived in home than a vacant fixer upper foreclosure. New buyers are skeptical to buy a home that needs a lot of work. Sellers certainly don't need to remodel their kitchen but they should make sure their home shows well. The number one concern of first time home buyers is affordability. Only 7% said first-time buyers were looking to purchase fixer-upper homes that they could buy on the cheap and renovate.
Assuming you've priced the home correctly, here are five ways to lure a first-time buyer:
1) Maintain and stage: A home that has been lived in and taken care of will be much more appealing than a vacant foreclosure. If someone is living there the landscaping will be alive and the home will have a warm feeling.A fresh coat of paint, decluttering and the removal of unpleasant odors can go a long way to making a good first impression. Be careful to not over renovate and lose money in your investments. Some fixes are just not worth it.
2) Mention up front that you'll help pay closing costs: Generally, there's a good chance they'll ask for closing cost help anyway, but it might pay off to be proactive and offer it at the beginning.
3) Offer a home warranty: First-time buyers are often coming from a rental, and they are used to calling a landlord when there's a problem. To help them more easily transition into homeownership, provide them a warranty that covers major systems when problems arise.
4) Offer mortgage protection: The plan will make several months of mortgage payments in the event that the buyer becomes unemployed.
5) Don't snub low offers: Buyers know prices are falling and thus are trying to get your price lower than listed. If they come with an extremely low offer don't blow it off, think about where they are coming from and counter it. A low offer is better than no offer at all. Maybe through negotiations the price can come back up.
Permits rise too; both are signs that the real estate market is healing.
Construction of new homes jumped in May by the largest amount in three months, an encouraging sign that the nation's deep housing recession was beginning to bottom out. The Commerce Department said Tuesday that construction of new homes and apartments jumped 17.2 percent last month to a seasonally adjusted annual rate of 532,000 units. That was better than the 500,000-unit pace that economists had expected and came after construction fell in April to a record low of 454,000 units. The better-than-expected rebound in construction was the latest sign that the prolonged slump in housing is coming to an end, which would be good news for the broader economy. analysts don't expect a quick rebound in housing, since the economy is still shedding jobs and home prices are falling in many places, making people hesitant to commit to buying a new home.
The jump reflected a 7.5 percent rise in construction of single-family homes, the third consecutive increase in this critical segment of the market. Construction rose 11.1 percent in the Midwest.
In San Francisco, a 1,600-square foot rancher listed for $179,000 drew multiple offers last month with a high of $210,000 in cash. The panicked buying- fueled by buyers' fear they'll miss out on firesale prices- belies the doom-and-gloom evoked by recent reports of rising mortgage delinquency rates and foreclosure activity. The U.S. housing-market turnaround has started in the nation's hardest hit markets. The median home price is expected to continue rising at a healthy clip in months ahead since it's now at the level of nine years ago, before the bubble began inflating. Total sales closed in March showed flourishing demand, the fourth best on record. The specter of rising foreclosure- born now of the recession rather than just overleveraged subprime borrowers- is the wild card in future health of the U.S. housing market and the economy by extension. Most important for gauging the strength of the nationwide market is how conditions are improving in the most-depressed regional markets. With those markets now stabilizing, banks are no longer anxious to dump real estate owned properties fearing they'll get appreciably less three months from now for their foreclosed properties. The new goal: to maximize the value of supplies in hand rather than unload it helter-skelter and torpedo the housing market like thye did while they were shell shocked by the devastation they'd wrough. Banks also will be less likely to want to part with their "toxic assets" knowing the most-scorched, still-serviceable mortgages will be the most valuable on a credit-risk markup once the economy recovers.
If your heading out on a summer vacation or just want to feel a little safer in your home here are some crime deterrents sure to put your mind at ease.
When your at home:
When you on vacation:
Your front yard is the first thing the buyer will see when they drive up to your house so make it look as good as possible. If you are preparing to put your home on the market that means that you not only have to stage your home's interior but also spruce up your yard.
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