Kirk Groves

HOW TO GIVE YOUR HOME A FACE-LIFT:

Your house isn't a dog! It just looks like it!!!!!

One of the great challenges to selling a home can be showing all of its space, decor and natural light potential. For example, every home has crowded closets and dead space. Sellers should be aware that areas such as these are easy to spruce-up with a little elbow grease and old-fashioned innovation.

Begin by evaluating your closet/storage space, determine which areas can cut-down in clutter. Go through old clothes, shoes, etc., and get rid of anything that will not be used and in turn create more space. Consider organizing shelves and other areas to make better use of your storage space, including your garage and basement. Also, try to throw out or give away any old furniture that is no longer of use. All of the discarded items can be given to Good Will, Salvation Army or even sold at a yard sale. Remember, when considering a yard sale, that many time you will realize a higher return for your "treasures" by donating them and taking a tax deduction.

Although most sellers keep their homes clean and well-decorated, it can be difficult to convince a buyer of a home's potential when clutter is noticeable. As brokers, it's our responsibility to offer any tips that will expedite the sale and make the experience more enjoyable for the seller.

Once you've eliminated the unwanted items and furniture, begin the 'renovation' process. For non-storage spaces that could use a little more decor, consider adding a small bookshelf complemented with a cozy reading chair. Always be sure you're filtering as much light into your property as possible. Open or replace curtains. For example, light from a window overlooking the backyard offers a room more color, a great view and the illusion of more space.

Always maximize the potential of existing decor; wash old curtains, re-stain old wood casings, anything that refreshes and emphasizes all the potential of the space and decor of the home.

Prospective buyers are often more drawn to homes with features that they don't have, those with clutter-free closets, open sunny rooms, and cozy little corners. To ensure you've realized all of the above characteristics the last step should be to bring in a friend and observe their reaction. Make sure it's an honest friend, who will offer suggestions as well as notice the improvements. Seeing your own home through someone else's eyes is a great way to make a home optimally attractive and more sellable to prospective buyers.

Be diligent in your efforts and be sure the renovations improve the aesthetic appeal of the home. All the hard work will be worth the reward of a successful sale.

As always, I'm easy to reach for any questions or advice you may need! Just call or e-mail me!

Think Spring!

From my friend John Shea:

Those Who Wait Will Pay Thousands More This Spring

Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loans guaranteed by the Federal Housing Authority (FHA).

Coming just weeks before the April 30 deadline for the Home Buyer Tax Credit and just days after the March 31 expiration of the Federal Reserve Board's mortgage backed securities purchase program (which has kept home loan rates artificially low for over a year), these FHA changes make it even more important to act now to save big.

Here are a few reasons why:

On April 5th, the cost of required up-front mortgage insurance for loans guaranteed by the FHA will increase from 1.75% to 2.25%. For a borrower purchasing a $200,000 home with a $7,000 down payment, the up-front mortgage insurance will increase by $965. Up-front mortgage insurance is typically financed in the final loan amount so the impact to a monthly payment will be minimal but overall, the increase is still borne by the borrower both upfront and monthly.

Later this spring, the amount of money that a seller can return to the buyer from their sale proceeds will be reduced from 6% to 3%. The reduction in these "seller concessions" can increase the amount of cash a buyer will be required to pay at closing by $6,000 for a home purchase of $200,000.

There is only one way to avoid being affected by all of these costly changes that lie ahead - submit all FHA mortgage applications by the last week of March.

If I can answer any questions you may have about how these changes could impact you, call me. I appreciate your business.

Sincerely,

John M. Shea
Capital Mortgage Finance a divsion of FNBCC

Maybe you're moving to a larger home to accommodate a growing family, relocating for a new career opportunity, or purchasing a townhouse for retirement. Whatever the reason for the move, you'll need to take the necessary steps to sell your home for the best possible price, within a reasonable amount of time. Where do you begin?

If you're like most people, you'll start by seeking assistance from a professional. A local real estate sales associate, who knows your neighborhood, can help you determine a fair market price. The sales associate should also recommend the extent to which you should make repairs or improvements to your house.

In order to select a real estate professional who's right for you, ask family, friends and neighbors for referrals. Attend open houses and interview several sales associates to find out how professional or experienced they may be. Get a written outline of how they plan to market your property and the services they will offer you.

Once you've identified a qualified professional, the rest is chemistry. Is the sales associate someone with whom you would like to work closely? Do you feel comfortable with the sales associate as your partner, working with you to give you advice and acting as your representative? Does he or she practice a consultative selling approach, focusing on the long-term client relationship and on the importance of exceeding client needs and expectations or is he or she caught up in the proverbial 'hard sell?'

The brokerage firm that your agent is associated with is also important. Research the firm's success rate and commitment to quality service. Does it survey existing clients in order to ensure customer satisfaction? What are the results of those surveys? How in tune are they with consumer needs? Do they offer guidance with mortgages or any discounts for other home related or moving services?

Determining your home's fair market value is one of the most important decisions you'll make during the home-selling/buying process. Your sales associate can help you set a fair price based on local market conditions. For instance, she or he will provide sale prices and other statistics of homes similar to yours that have recently been sold. Prospective buyers will be comparing your home to others on the market. Therefore, setting a competitive price can determine if your property will or will not sell.

For the first offer made, it's rare that the prospective buyer matches the asking price. If the offer is reasonably close to the asking price, carefully consider the offer before you consider turning it down. Curiously, it's the first offer that can often be the best offer. If the first offer is unacceptable to you, it may in your best interest to have your sales associate respond with a counter offer. Whenever considering an offer, ask yourself if you would purchase the property for the amount being offered. Always be willing to negotiate, especially if the prospective buyer is pre-qualified for a mortgage.

Once you decide what terms are acceptable, let your sales associate negotiate with the prospective buyer to work out the best agreement for you. You'll need to be patient while the buyer arranges financing and as the real estate company compiles and prepares pertinent data.

Careful planning and sound advice from a real estate professional can make selling your home a very satisfying experience. If I can assist you in any way with this process, please contact me at any time. Information and advice is always free...and freely given!

SELLING YOUR HOME IN THE WINTER

By Kirk Groves

Associate Broker CENTURY 21 New Millennium

In many parts of the country, selling a home during the winter months can be a challenge. Dreary, cold weather and the end-of-the-year holidays can keep buyers away and heighten fears of your home staying on the market longer than expected.

However, there are a few things you can do to enhance "curb appeal." And when that happens, buyers will take notice.

For example, if your home has been on the market for more than six months, its probably time to change the sales approach. There are several factors that could be reviewed with your real estate agent to determine improvements that can be made. Ask for a reassessment of the sales price; it may be too high for the current market. Also, ask the agent for a new or updated marketing plan and ask for a specific explanation of each activity. Marketing your home goes beyond a few ads in the newspaper and a listing on the Multiple Listing Service (MLS); a good agent will do more to get your home sold.

If your current agent doesn't respond to your satisfaction, you should contact the real estate broker (the owner of the office) and ask for a different sales agent - or, if you're no longer under any contractual obligation to the firm, it might be time to change real estate offices entirely.

When setting the asking price through a comparative marketing analysis, compare similar homes sold in the winter months. Many owners set their asking price too high because of comparisons with sales prices during peak seasons. Always try to compare like properties sold at the same time of year.

Once you've settled on an asking price, its time to spruce up the interior and exterior of your home. Many real estate agents recommend opening as many curtains as possible to add light and color to rooms. Also, it's suggested that you keep spring and summer pictures of your home out on tables and in clear view. Photos of your front yard flowers or the backyard shade tree in full summer bloom can help swing many buyers in favor of a purchase.

Staying on top of winter maintenance and chores is another sure-fire way of adding value to your home. A neatly shoveled driveway and cleared walkway can add a nice touch. Make sure the furnace is in good working condition and that the room temperature is kept at a comfortable level. Also, check to see that the basement if dry and sealed from any drafts.

Take yourself on a tour of your home. Start in the basement and work you way through the house. More than likely you'll see many previously undiscovered cluttered spaces and needed repairs that can turn off potential buyers.

Don't overload your home with holiday decorations, either. The buyer should have a chance to see you home in its everyday condition.

If you have specific questions please feel free to e-mail me anytime. I'm always happy to help or advise!

kirk.groves@c21nm.com

These latest graphs show some interesting and positive trends. This is the fourth monthly update with charts and analysis. If you would like a copy of past updates, please e-mail me and I'll send them to you for your reference. As the summer season fades, we should be making our plans for the first quarter of '09 right now. Lots of business happens in the fourth quarter. Get yours now while you prepare for next year's business!

We have good reason to be encouraged by what this chart reveals. The blue "Active Listings" line has made its seasonal downturn. Our optimism is justified in that historically, our inventory levels peak in the beginning of October and then decline sharply through winter. This current decline began in July and shows good downward trajectory. In this market climate, it is imperative that we are cautious with our optimism especially when we are counseling our clients as to their options.

Our market seems to be fluctuating between improvement and disappointment. This is a good indication that we have hit the "bottom" and are poised for a recovery. That said, our recovery will most likely be very slow and could be upset by any one of a number of factors that we have no control over. The key for buyers is to BUY NOW! Interest rates are great....today, and sellers are highly motivated. Neither condition is guaranteed to last. As a matter of fact, these conditions are GUARANTEED to change and probably not for the better for buyers. For our sellers, this is a time to take full advantage of a possible continued upturn in buyer activity. Get it sold now! If interest rates get back up close to 7, buyer urgency and motivation will evaporate.

This chart could not be easier to analyze. Prices have taken a substantial drop to the lowest level in years and, not coincidentally, our pink "Days On Market" line has been heading down sharply at a time of the year that we usually see flat or, more often, rising days on the market. This downward trend seems to have paused slightly but with education, reason and some credible professional advice, our seller clients will do what is necessary to take advantage of this great opportunity to sell. Our buyers, with our sound counsel, will jump at the chance to buy at the lowest prices in years at interest rates that rival those of the "boom" years. All this with lots of inventory, cooperative sellers and the ability to make the decision to buy without worrying: "How much over the asking price will I need to offer?". Buyers are responding to the positive buying environment!

This is truly a season of opportunity! Remember, the foundation for a successful '09 should be well underway. My stats show that a significant percentage of buyers and sellers start their inquiries and searches in January and February in anticipation of a spring or summer move. This means that if you make your moves or spiff up your marketing during the "slow" months of winter, by the time you get the wheels on your wagon, the horses will be hitched up to someone else's wagon and moving toward the horizon. Trying to get them back after they've had apples off another tree is difficult. Have your apples ready in December and January or you'll be "hoofing it" in April!

If you think it's time to change your "latitude", I have a path for you to follow to success.

Disclaimer: Horse analogy not directed at any particular person....or candidate. :)

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kirk.groves@c21nm.com

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