WolfTeam News

June 29, 2009

10 Ideas to Sell Your Home in a Buyers Market

Curb Appeal is Very Important

Curb Appeal is Very Important

In a buyers market, such as the market we are currently in, selling a house can be a bit more challenging.  Buyers can pick and choose, so sellers need to “stand out” from the rest of the homes competing for a buyer and a sale.

1. Work on curb appeal.  If the yard is a mess, people are going to be less likely to buy the house, let alone look at the interior.  Some simple things that can be done are keeping the lawn mowed and edged and your house exterior painted and “squared away”.  Sealing an asphalt driveway with the “Black Jack” tar can improve your curb appeal.

2. Remove all clutter.  Clutter makes the house seem smaller and less inviting to prospective buyers.  Discard or donate items to charities that you have out grown or no longer need, but are still usable.

3. Neutralize any smells.  Sorry to say, but a home with cigarette smoke can be a huge turn-off to people who don’t smoke.  If you have pets, the smell of pets will turn off a buyer.  Cat boxes, dog mess in the back yard, stale fish tanks and ferret cages are good examples of smells that will get a buyer out of your home quickly.

4. Clean your interior!  Hire a cleaning service if you hate this sort of work, but nothing if more important.  Shampoo carpets, vacuum floors, wash any dirty walls from pets, kids and wash windows inside and out.  Also consider removing some of your personal things, such as photo’s of your kids in every grade as they matured.  It makes it easier for prospective buyers to see themselves living in your home.

5. Inspect the house.  Sometimes something as minor as a creaky floorboard, a broken light switch or a toilet that runs can cast an impression to the buyer you don’t want.  Get someone not emotionally involved with your house to walk through and help you evaluate your home with another set of eyes.

6. Fix any neglected things.  If something obviously needs fixing, especially if it is something anybody can do, it sends a conflicting message to the prospective buyer.  Subconsciously, they will start to wonder what the next surprise will be.  A lot of first time home-buyers barely have enough money to buy the house and are not ready to have to begin repairs right away.

7. Invest in renovations, if necessary.  Is the carpet worn?  Are there wear paths down the hall or stairs in the carpeting?  Are there marks on your walls from a child’s marker pen?  Do you have loud primary paint colors on your walls?  Was your kitchen in-vogue in 1975 and pretty much looks the same?  Don’t count on finding a buyer who wants to find a home they can work on.  Far more buyers are looking for a home they DON’T have to work on.

8. Get the opinions of others.  Sometimes a different perspective can go a long way to broadening your houses’s appeal.  Others see and notice things you tend to ignore.  Sometimes you’ve lived with something in your own home so long you don’t even see it anymore.  A good realtor can be invaluable here, as they may be able to see home weaknesses that you are unaware of.

9. Consider getting a home inspection.  Sure, it’s normal for a buyer to get an inspection when they buy, but what if you could get a jump on the process and show a recent inspection report and show you’ve already made the recommended repairs or have them underway? 

Darren Donald and Sarah Haltness, licensed Realtors

Darren Donald and Sarah Haltness, licensed Realtors

10. Get a good Realtor.  You want a realtor whom you can communicate with.  You want a realtor who can really look out for your best interests and that will keep you abreast with all feedback from buyers and other Realtors when they show your home.

June 27, 2009

$8,000 Home Buyer Tax Credit

Filed under: General Real Estate Industry News,Saving Money — Dan @ 4:31 pm

One of the few stimulus things being offered to real estate from the Federal Government is a $8,000 credit for home buyers.  Here are the highlights of the program. 

1.  The tax credit is for first-time home buyers only defined by the IRS as someone who has not owned a principal residnece during the three year period period prior to the purchase.

2. The tax credit does not have to be repaid.

3. The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

4. The credit is available for homes purchaseed before December 1, 2009.

A Good Time to Save Some Money!

A Good Time to Save Some Money!

5. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

And unlike previous home-buyer credits, this one is refundable;  meaning that the credit can be calimed even if you have little or no federal income tax liability to offset.  For example, if you had a tax liability of $2,000 and recieved a tax credit of $8,000, Uncle Sam would send you a check for a whopping $6,000.

Who says it doesn’t pay to buy right now?

June 24, 2009

10 Considerations When You Are Buying

1.  Get Pre-approved first!
Now is a great time to buy, but lenders have tightened up their rules and criteria.  Getting pre-approved with save yourself the grief of looking at houses you can’t afford and put you in a better position to make a serious offer when you do find the right house.

Prepare in advance of your home search

Prepare in advance of your home search

Not every lender is the same, just like every person isn’t the same.  Real Estate agents will work with more than one lender and consider personalities when making a referral.  It is very important that you are meeting with a licensed, established lender to avoid any fly by night operations.  Yes, they do exist!  If a deal sounds too good to be true, it probably is!
It is not a bad idea to ask the lender how long they have been in the business to make sure that they have the experience necessary to give you the best loan options.  Do they offer all types of loan programs such as FHA, VA, Conventional and Alaska Housing Loans?

Keep in mind when you shop rates the quotes you receive are just that “quotes”!  Until you are under contract and have decided on a lender you are not able to lock in on the interest rate.  Interest rates can change at any given time so for example even if a lender quotes a rate at 9:00 am the rate can change up or down before the end of the day.
If you do lock early make sure you are aware of any extension fees that may occur if you go past the 30 day deadline.
 

2.  Prepare for your lending appointment by bringing:
a. One month current paystubs
b. Three months bank statements
c. Three most recent years tax returns and W-2 forms
d. If divorced a copy of the decree and child support paperwork if applicable

3.  Aim for a home you can afford. 
Go back to #1.  Over time, you’ll come to appreciate why lenders are conservative and generally don’t want your mortgage to be over 30% of your gross income.  In time, you’ll find you will be glad you have extra money for other things such as family vacations, new furniture and personal hobbies.  Don’t get yourself get strapped too tight.

4.  Get Professional Help
This is another good spot to ask for a referral from someone you trust.  A Realtor is a professional in assisting buyers in the entire process of finding, negotiating and closing on a home.  “Your” realtor should have your best interests at heart and can help you through out the entire process.
You should see enough homes to be confident of values before you bid on a house.  Your real estate professional should be able to provide you with “pending” and “closed” sales of similar homes so you can be confident of the price you offer.

5.  Don’t Buy if You Can’t Stay Put

A home in a long term investment!  You should plan on staying in the home three to five years at a minimum.  If you cannot commit to remaining in one place for at least that long, owning probably isn’t for you. 

6.Consider the schools when you purchase!
Even if you don’t have children now, you might some day.  Even if you don’t, you may sell one day and want to appeal to as wide a group of buyers as you can.  And people with children consider the schools.

7.  Remember “location, location, location.” 

Neighborhood, location and schools are important

Neighborhood, location and schools are important

You’ve heard this as long as you’ve talked about real estate.  Everyone from your dad to Donald Trump reminds you that location is important.  Someday, when you are a seller you’ll find a buyer might overlook other flaws in your home if your location is great.  A good view is a real asset, too.

8.  Clean up your credit score.
Aim to raise your FICO score to at least 720.  That is what you’ll need to qualify for the lowest rates on home loans.

9.  Keep your score blemish free. 
While you’re improving your credit score, make sure you don’t do things that might sabotage your efforts.  Pay your bills on time.  Late payments on all kinds of bills, not just your credit card bills can lower your score.  And don’t open new credit account that you don’t really need.

10.  Get a home inspection
An appraisal and a home inspection are different things.  An appraisal is for the bank to confirm the house will secure the banks loan to you.  A home inspection with experience will confirm the operation of the key points of your home and evaluate all major components including furnace, water heater, foundation, roof, window height and other key points of your home.  This inspection will teach you a lot about your home, and may give you the opportunity to ask the seller to make some key required repairs.  Some “first-time home buyer” lender programs require buyers to get a home inspection, but generally, it is recommended but not required.  Get one!

June 21, 2009

Anchorage Real Estate Market Statistics

So, “how is the real estate market in Anchorage” is a question I am asked every day.  The answer can be a bit like the parable where the question was asked of the blind men what an elephant looks like.  You remember, one blind guy was feeling the tail and thought an elephant looked like a rope while another was hugging a leg and thought a elephant was like a tree.  Ask someone who happened to sell in a week, you get one answer and ask someone with a large home who has been on the market a while and you’ll get a different answer. 

Let’s consider the “average” house in Anchorage;

Real Estate Statistics

Real Estate Statistics

The average sales price in the Anchorage area is approximately $320,000.  Right now there are 81 “average” homes listed for sale in the market.  Approximately 25 of these “average” homes sell each month, meaning there is about a 3.5 month supply or existing home inventory.

Albeit, the volume of sales is slower:

In April and May 2006, total residential sales were 247 and 284 home sales each month.  Last year the sales for those two months had dropped 12% to 217 and 228.  This year MLS showed 149 single family sales in April and 175 for May.  That means there were 109 fewer single family home sales this year in May than were in May 2006.  This is why newer real estate agents are having a hard time. More established agents are working hard to make a living; newer agents are taking a second job and asking their spouse to pitch in.

The supply of homes, or active inventory, seems fairly stable in the past three years, and not really growing, which is a positive sign.  Consider this:

In May of 2006, there were 783 single family homes on the market.  In May 2007, the number of “active” single family homes had mushroomed to 1,168 in just one year.  In May 2008 the number was similar at 1137.  This year, the active listings were at 1,085, so supply is staying pretty constant, and not increasing noticeably.

Interestingly, while the volume of sales has dropped sharply, the average sales price really hasn’t.  For instance, in May this year, the average sales price was $330,497.  In May of 2006 the average sales price was $303,699.  That doesn’t mean prices have increased by any means.  Because there are more homes for sale, buyers can be much more selective and are getting more for their dollar now than they could get three years ago.

sign-071704-5

Moving, slowly and cautiously.

The average days on the market for this average sales price is 91 days for the Sold home, and the average “active” home has been on the market 71 days.

In 2009, the “average” seller initially listed their home at $336,610.  Most likely due to a combination of slow showings, and/or feedback from the fewer agents who showed the home, on the average, sellers reduced prices 3.5% to $324,718.  On the average, when they accepted offers they received about 98% of their new, reduced, sales price or $317,963.  Roughly 10% of the homes in this price range “expire” on the market and don’t sell during the listing period.  Many of these home are re-listed at a better price or improved condition, such as new paint and carpet.

June 18, 2009

Public “Twitter” post

I’m sure you are familiar with social posting on sites like Facebook and Twitter.  It seems like everyone is on those sites now.  People who use it say what they are doing right now, and everyone sees the “posting” and can comment on it.  It’s a social site that encourages communication between people.

On that note, this is interesting.  Did you hear about the Arizona folks who “twittered” that they were preparing to head out of town.  While they were on the road their home was burglarized! 

The victim, Israel Hyman has a business with about 2,000 followers he stays in touch with on the Twitter site.  Hyman believes his post on Twitter tipped of the burglar that he wasn’t going to be home. 

Home Security System is Armed!

Home Security System is Armed!

Police don’t know if their is a connection or not, but the story should give us a pause to think, huh?  Even if the post has nothing to do with the incident, it does show that sharing too much information especially in a format where you don’t know who is reading it, could create a problem for you!

Lots of us have good locks on our doors and good security systems.  Telling people when you aren’t at home could be a security breach!

June 17, 2009

Anchorage in the National News…again!

 U.S. News and World Report recently published an article ranking the ”Top 10 Housing Markets in the US for the Next 10 Years.” 
The article is based upon Moody’s ”www.economy.com”  analysis of population and employment data as well industry and geographical trends.
The positive news related to us here in Anchorage is that Anchorage, Alaska ranked Number 5 with a projected average appreciation rate of 3.8% for the next ten years!
The article was delivered to real estate offices by title company reps and emailed around.  We’ll take any good news we can get right now, right?  If you’d like a copy of the article, email me and forward it to you.
Bring it on! 
And in the same vein of thought, the REALTOR Magazine online features Anchorage Alaska as the number 1 spot to “start over” :)   Check it out here.

June 10, 2009

Pricing a Property in Any Market

When it comes to selling a property, in any type of market, it always boils down to two things, the Price and the Condition.  And to a large degree, if you can’t improve the condition, you can solve that with changing the price, so really price solves everything. 

 

There is a lot of discussion as to what determines a property’s market value.  Many buyers and sellers use all types of factors to try to determine a just price such as appraisals, replacement cost, cost of property updates and other factors.   

But at the end of the day, only two things matter determine market value:  1) What a buyer is willing to pay, and; 2) What a seller is willing to sell for.  If there are no buyers willing to pay $500,000 for a property, then market prices trend down.  Adversely, if no sellers are willing to let their property go for $200,000 then market prices trend higher.  Arriving at this number and pricing a property to attract buyers is more complicated. 
 

Priced Correctly Will Get Your Home Sold

Priced Correctly Will Get Your Home Sold

 Using active listing to price a property is a common mistake sellers make.  A seller might think, “Well, they’re asking $350,000 up the street and my home is just as nice, so my house must be worth $350,000.”  The problem is the house up the street hasn’t sold and might have been on the market for months with little interest.  When using active listings for comparable purposes, it is very important to ask “What is the strongest competition for my house, or what can a buyer get that is similar to mine, for less money?  If there are other similar listings on the market for less money, your property might just help the other houses sell.  Meaning buyers view your house, and then feel good when they get a better buy on a similar house.

 

Everyone wants to get the most for their home or land when they sell and that is completely natural.  However, many sellers make the mistake of pricing their home too high, and this can actually lead to getting less for their property in the end.  For example, seller Joe and Sally decide to sell.  They meet with a couple of real estate agents who give opinions on what to price their property for.  Joe and Sally believe their house is worth more, because friends and guests have told them how nice their house is.

 

Ultimately they find a real estate licensee who will list their house at the price they want to list it at, which is higher than the prices the first agents told them the house would sell for.  They leave it at this price for a few months, but few people come to look at the home because it is priced too high.  After a few months, they start making price reductions.  When the price gets lowered to the right area, the home begins to get interest from buyers and their agents.  But buyers looking at the property keep asking, “Why has this house been on the market so long?  When buyers do make an offer, they make a low offer because it has been on the market so long.  The sellers feel inclined to take the offer since the market has been so slow and they have been on the market so long.  So you see how this spiral can happen?  This is a risk when you overprice a home.  And when a property is overpriced, no amount of exposure from the Internet, print media, signage, flyers or helium balloons will get your house sold.

 

However, even in a difficult market, properties that are priced according to market conditions are selling.  Overpriced properties are sitting unsold, but properties that have been priced well to compete are selling.  Sellers who want to sell should stay abreast of what is happening in their market to make sure their property is priced accordingly.

The most widely used method of pricing real estate is to study recent comparable sales.  Sellers looking to determine what their home is worth should contact an active real estate licensee and ask for a “Competitive Market Analysis,” or more commonly called a CMA.  A CMA is a compilation of comparable active listings and recently sold listings, and should help a seller determine what to ask for their property.  Recent sold properties give the best indication of market price because they have actually sold, whereas active listings have not.

 

 

 

 

June 5, 2009

New Flooring Make Welcome Change

Filed under: Maintenance,Property Values — Dan @ 9:00 am
Nothing makes as large a change as new carpeting!

Nothing makes as large a change as new carpeting!

There are very few things that make as big an impact to your home than replacing carpet.

When I am looking at the homes of many people who have been in their homes for a long time the two most common things they need to do to sell are paint and carpeting.

I’ve talked to many a seller that liked the new carpet so much after they did it, they wished they had updated it long ago!

In two story or split level homes, the stairs seem to suffer wear the most as well as hallways from continual foot traffic.

Sometimes switching from carpet to a good quality laminate is a welcome change, too.  I hear sellers say they like the warmth of carpet under their feet, so it is a personal preference for sure.

Sometimes I hear people comment that the bedroom carpet is fine and just the halls and

It is best to use a neutral color when you plan to sell.

It is best to use a neutral color when you plan to sell.

main rooms are bad.  I recommend spending the extra money and making the rooms the same color whenever it can be done.  It’s more commonly seen and overall makes the house look better and the cost is minimal once you get to the point of doing the stairs and hallways!

June 2, 2009

Yard Weeds not “Mission-Impossible”

Filed under: Life in Anchorage,Maintenance,Uncategorized — Dan @ 9:30 am

Everyone knows how desirable a healthy mature lawn is.  Unfortunately, with Alaska’s short, but intense growing season, we all get a variety of weeds that can be frustrating to stay ahead of. 

The most common weeds for most yards are dandelions by far, with clover running a close second.  Unchecked, clover and dandelions will overtake your lawn, expecially in thin soil or shaded area’s.  Fortunately, herbicides were developed long ago that make the job much easier to tackle and with some effort, actually win!  Basically the type of weeks we are most concerned with are called “broad-leaf” weeds which includes both dandelions and clover and even some lesser weeds like fire-weed.

Two effective herbicide applicators

Two effective herbicide applicators

In years past, I would carry a weed puller in my back pocket and instead of walking over weeds, I would pull them.  This can be a job you do several times a week and even get blisters on your had from using the puller.  This year I visited a “lawn and garden” store and talked with knowledgeable people about herbicides.  I bought some “serious” herbicide and a couple of spraying devices to “do battle”.  Note, you can get a granular “weed and feed” product, too, but I selected the bottles in the photo’s to take the battle right to the ground as effectively as I could.

Read the bottle to practise how strong you want to mix the water and the herbicide.  I have found it necessary to slowly increase the amount slightly higher than what the bottle says to really “put the hurt” on the weeds, but I have to say my yard is practically clover and dandelion free with a couple of thorough specific applications!

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