Is It Your Time To Buy !

Many of my rental clients will often ask me for my advice when it comes to them renting or should they take the steps to purchase their first home. There are some specific questions you have to ask yourself when your deciding to rent or to buy. 

Do you have enough work history ? You don’t need to have worked at the same place but you will want to have worked steadily for about 2 years for most loans, if your applying with a co-signer than your work history can be a bit less if the other person has a good work history.

How is your credit ? The average credit score to be able to obtain a mortgage is about 625, running your own credit to make sure you don’t have too much outstanding debt is helpful and it can also help you correct any information that might not have updated on your report.

What kind of savings do you have ? There are costs that you will have to be able to meet to purchase starting with the down payment, and closing costs but you also home inspections and an attorney.

How much time do you have ? If your currently in a rental and your landlord is not open to you staying on a month-month basis you may not want to rush into a purchase because of those kinds of time constraints. 

Here is a great tool that Realtor.Com provides to help you decide if financially would be better suited to continue renting or making your first purchase ! Rent Vs Buy Calculator

There are also ways around the financing is some instances, there are options of grants, down payment assistance, flexible mortgage options that can put buyers in a perfect position to buy.

State/Town Grants - These are most common in Condo Developments where the State/Town is paying a large portion of the mortgage. 

Down Payment Assistance - There are some programs that will match what you are able to put down on a home, or larger programs that allow your down payment to come from your loan without paying interest on that down payment.

Mortgage Options - You have many different mortgage options you can add sellers concessions to help with closing costs, or choose a loan that is interest only, you also have mortgages that increase your payments as it progresses allowing you to pay more when you financially will be able to. 

Of course their are pro’s and con’s to both so here are a few that you should think about when your deciding which is a better fit for you ! 

Pro’s Of Buying
Creative Control - You won’t have the limitations of decor since it will be your own home to do what you would like. 
Investment - You are investing in your future with the current market conditions, buying will put you in a great position in the future.
Tax Breaks - You have the ability to take deductions that you ordinarily do not get simply just paying rent, even property tax has exemptions for just living in your home, and veterans as well. 

Pro’s Of Renting
Flexibility - You have the option to move around into different areas, this is important for those who maybe are thinking about switching jobs you can move where your work actually is, moving for those who own can be more difficult.
Less Maintenance - The responsibility of general maintenance in most cases does not fall on you, those details are handled by someone else.

Signature Premier Properties Hosts Freedom Mortgage (Continental Home Loans) Homebuyers Seminar on January 27th to review in detail the process of buying, and all the financing options that are available. All are welcome to attend this is event, and a detailed blog will follow to give everyone the additional details ! Be sure to check the event out on our Facebook page ! Home Buyers Seminar 

What Are Styles Of Homes For Sale !

Looking on MLS for a home can be an overwhelming task, so many options are presented on the search that you may not want to limit your results ! As realtors we tend to know what styles to pull for clients based on their wants and needs simply because we know what to look for, this blog will help you narrow your search on these sites and tips to make sure you don't miss "the one"! 

Styles: With these websites often will list dozens of styles because they cover such a large area, if your narrowing by style this list contains all styles used by Realtors on Long Island for these sites. 

Antique/Historical         Bungalow             Bungalow 

Colonial                        Contemporary       Cottage

Ranch/Exp Ranch         Cape/Exp Cape     Duplex

Farm Ranch                  Hi Ranch               Ranch/Expanded Ranch 

Splits                            Splanch                  Traditional

Tudor                           Victorian                2 Story 

Characteristics: These will help you find the home that will suite you the best allowing you to narrow by style, remember only use this if the layout is a "must have" 

Starter Homes (Comparable to sq.ft of Condo/Co-op)

Bungalow

Cottage

Bedrooms All On One Floor 

Colonial                                  Contemporary

Farm Ranch                            Hi Ranch

Ranch/Expanded Ranch         Splits

Splanch

Bedrooms Separate from Entertaining Areas

Cape/Expanded Cape             Colonial 

Contemporary                        Farm Ranch 

Splits                                      Splanch

Master Bedroom Suites On Separate Level 

Colonial 

Expanded Capes 

Splits

Legal Income Potential 

Duplex

Hi Ranch

Split 

Splanch 

Historical Home (Built Prior to 1950) 

Antique/Historical

Tudor

Victorian

Tips For MLS: There are actually some very simply things that buyers will do during the search that are limiting their search results and you won't realize it.  

• Eat In Kitchen - Many homes do not in reality have "eat-in kitchens" they actually have formal dining rooms in close proximity which gives the appearance of an eat in kitchen.  Normally I recommend buyers not use the offered preference - rather go by the pictures ! 
• Wood Floors - If your ok with having original wood floors that need to be refinished this is not an option you want to specify - listing agents can only say "yes" to this if they are exposed ! 
• Basements - If your looking for a home that is similar to a high ranch - that using the basement requirement will actually reduce your criteria - these homes are not considered to have a basement rather it is considered "first floor & second floor" 

Why Does It Take An Agent Time To Make My Appointments !

One of the very first discussions I have with all my buyers after we have agreed that I will be representing them is the general rules for scheduling showings.  This blog will give you an idea of how and why it is not always that simple to get into listings and what you should be expecting !

Why Do I Have To Go To Open Houses Without My Agent ! 

• The first reason is because although we work for buyers, we also work for sellers and they are at the same time.  We must send our buyers to open houses, because we also need to hold our open houses for our listings.  The windows of time for open houses are often similar if not at the same time so do not take this personally, go armed with your Realtors cards and if you do like the home your agent should make a 2nd appointment to accompany you for another look ! 
• There are also times where if a listing is a bit difficult to show the listing Realtor may have more open houses rather than private showings.  This is something that neither the listing agent or your realtor has control over - it is decided by the homeowners and how/when they want their home shown.  

I Saw A Home Driving Home And I Want To See It Tonight ! 

• If the home is vacant this is rarely an issue, but try and be realistic their might be a conflict in schedule.  Often times our week is booked solid by Tuesday or Wednesday filled with buyer and appointment at our own listings.  Generally if your working with a good agent they will call you to see what day/time that week you would like to go and look at homes this way the time is booked for as many homes you would like to see including those that might come onto the market during that week ! 
• Homeowners & agents that need to be their to accompany also play a big part in that availability of seeing a home. Homeowners imparticular will normally ask that you give them a reasonable amount of time to "prepare" for their home to be shown.  Your agent will be able to see this if the listing agent has it noted on MLS simply by pulling the listing information.  

My Agent Says That Their Are No Interior Showings ! 

• This may seem a bit ridiculous, who would buy a house if they can't see the inside of it ! This is more common than you might think - income properties are the most common occurrence because the house is not owner occupied and is rented out - they will not want their tenants disturbed unless the buyer has a proven interest in the home.   
• Also sometimes in the case of short sale/foreclosure because the tenants are protected by law that if they have a lease that although the house can be sold their lease is still in affect.  Commonly with those cases once the lease is up and the tenant vacates the home will than be able to be shown.  
• This is also common when your agent is calling on a listing that is an exclusive listing from another company.  Ordinarily you would not be able to be get access to these listings but when their is a buyer broker contract in place it does open that inventory up to you.  Keep in mind many homes that are being held on exclusive will normally have a reason for this, such as work going on in the home or in the case of an estate sale they might be getting the executor in place.  

Keep in mind when you are out their looking for a home that there unfortunately are some homes that are just a bit more difficult than others to see.  The general rule to have successful showings is to give your agent notice, and in turn they will be able to make arrangements for each one of those homes and you will have a nice day of home shopping  ! 

What Should You Look For When Buying A Renovated Home ?

The weather has finally warmed up and the real estate market has too ! We are seeing a lot of renovated homes come onto the market, and most people are a bit hesitant to make a purchase because they do carry a large amount of "what ifs" so to speak. This blog will give you some tips on how to critique a renovated home, and what you should be looking for !

Tip 1: Buyer Broker

• You should always be using a buyers broker, since you pay for one regardless it is always my advice for every buyer to take advantage of this.  It is extremely important in this situation because you truly need someone who is going to do the homework that is necessary when purchasing a renovation.  
• Your buyers broker will be able to find out information for you like when they purchased the property and how much.  They will also be able to pull the current assessed value of the home to make sure if your property is re-assessed after your purchase at its new value that your taxes will still be reasonable and you will not have any surprises.  

Tip 2: Its All About The Numbers 

• Buying a property that was an investment has a great benefit that these investors do not have the emotional investment in the home, it is all about numbers for them.  They want these properties to move so they can move onto their next one.  You should speak with your agent to find out how much they purchased it for initially and keep in mind depending on the length of time you should add in the taxes they have been paying.  
• After you know what they paid including the taxes you and your agent should of course run the comparable homes in the area keeping in mind their is an increased value since the items would be consider new rather than updated.  You will want to take into account some very specific items being new or original to the home such as electric, plumbing and heating.  

Tip 3: It All Looks New What Should You Be Looking For 

• Electrical: Some investors may opt to not change out the electric in a home, they simply may update the panel and put in newer electrical boxes.  Your agent should be able to tell you what the ampage of the home is by looking at the box, but you should always be sure to have an inspector actually take off the panel to make sure it was wired correctly.  If the home has the original box as well as original wiring you may want to consider the cost for you to do this upgrade if you plan on adding things like central air or a central vac system.  
• Plumbing: Most homes built on Long Island will still contain original plumbing, but when we refer to it we are actually referring to the bones of the plumbing not necessarily the copper which you may think.  When homes are upgraded they are changed over to PVC piping which is easy to spot if the basement or crawl space is unfinished.  The original piping is not a safety issue but a matter a functionality over time it gets build up and may result in lower water pressure.  
• Heating: This is a big one, many investors will upgrade a home to a gas heating system when they can.  If it has not been your agent can call the gas company and see if there is already gas lines ran on the street.  What you should be looking for is the age and condition of the boiler and the hot water heater in the home.  Just because it is older does not mean it needed to be upgraded, if it is nearing the end of its days a good investor will put in a new one.  For those which don't need the upgrade most investors will at least get it checked and serviced before putting the home back onto the market.  
• Timeframe: You will want to take into consideration not only for price but quality of workmanship by looking at how long it took them.  Most investors will have crews ready to begin the repairs immediately upon closing, and may choose to put it onto the market before some work is complete to give the buyers options regarding cabinetry and colors.  If the home was flipped too quickly you may want to consider what quality of work was put into it.   Regardless of this time frame ALWAYS be sure to have a good home inspector ! 

These are just some of the tips that are important when your purchasing a renovated home, each home will be unique so make sure you have open communication with your buyers brokers about both your wants and needs of now and in the future to make sure the home is right for you ! Many renovated homes will be aggressively priced and highly marketed, which means they often receive multiple offers so you will want to have all your "ducks in a row" in order to purchase one, including your mortgage pre-approval, down payment, and attorney information available to move along quickly once you have gotten your accepted offer ! 

What You Should Ask Realtors Before You Re-List Your Home !

Many of my listing happen to come from expired listings, because of that I meet a lot of homeowners that are hoping a new Realtor will get their home sold.  Let me first off by pointing out that I am going to list the questions you should be asking in order of importance ! 

1. How Many Expired Listings Have They Sold and How Did They Come Across Your Listing ? 

• How Did They Come Across Your Listing ? In my opinion if you received a piece of "bulk mail" I will usually discard it just like anyone along with the junk mail.  If you receive a piece of mail that they took the effort to hand deliver I would give them the opportunity to at least come and speak with you and about what they can do to help get your home sold. 

• How Many Expired Listings Have They Sold ?  When your hiring an agent after you have expired it is important that they understand the extra work that they will need to do.  They will run into buyers that have already seen your home and may not want to view it because it was "sitting" for so long or because a previous listing wasn't descriptive enough.  You don't want an agent who is going to re-list it just "to have their name out there", I don't take listings I can't sell.  Many times I see other agents get the listing and once it expires again the homeowners than call me for the help I tell all of my homeowners "I don't list houses, I sell houses"! 

2. What Kind Of Company Do They Work For ? 

The very first question I hear from homeowners is "What Is Your Commission?" This should actually be your LAST question, it doesn't matter what a Realtors commission rate is if they don't do what needs to be done to sell your home! 

• Is the company individually owned, or is it operated by a company ? In most cases bigger is always better because they are affiliated with other companies that can get your home sold.  You can't assume that because they have the name Century 21, Coldwell Banker, or Elliman that it will have the resources needed.  Coldwell Banker Residential Brokerage is company owned and is affiliated with Coldwell Banker Mortgage, NRT Insurance & Title, & American Home Shield.  We also offer professional photography, top placement, featured branding & much more ! 

3. What Is Their Internet Presence, And How Do They Create Your Listing ?

• What do they do for online advertising ? Everyone puts their listings onto MLS, what you want to know is how many other sites will you be on. Also who will be the point of contact on each of those websites, Without having "Branding" leads for your home are sold to other Realtors

• How do you monitor your online presence ? This is another important part of your Internet presence is knowing how many times your home has actually been viewed, partnering with the top websites (Zillow, Trulia, Optimum Homes, Newsday.Com, Realtor.Com) Coldwell Banker is able to send you weekly reviews of how many people looked at your home ! We are also able to track feedback from other Realtors viewings and send it directly to you, this is also provided with the Open House Survey filled out by consumers ! 

• What do they do to create your listing ? The first impression your house gives is by its listing does the agent stage your home or use a professional photographer ? Buyers are very visual so you want to be sure that you catch their attention right away ! Making sure that your listing is complete is often overlooked things like directions, or a full description can get a buyer to actually want to come see your home ! 

4. How Available Will Your Agent Be ? 

• How available are they to your buyers ? This is a very important question to ask because how quickly an agent responds to inquiries will decide how many buyers stay interested in your home! Statistics show that 60 minutes after an inquiry is sent the chances of reaching that buyer decrease by over 50%! The best way to find out how quickly they respond place an inquiry on one of their properties before your appointment and see how quickly they respond to you ! 

• How available are they to you ? This is another question homeowners often forget to ask, you want to know how often your realtor will be following up with you to give you updates on your home, feedback from Realtors and most importantly what is going on with other homes in the area ! Realtors that have a system set up and set times to be in contact with you for these things will always keep communication less stressful ! 

5. What Is Your Home Worth ? 

• I am sure your wondering why this is at the bottom of the list, the reason why is because as long as the agent has provided you with a Comparative Market Analysis than the price of your home should not vary by very much.  If the agent has not performed an actual CMA and presented it to you, than that should make your decision a bit easier.  The one part of this you do want to make note of is what kind of pricing style they would suggest for your home and area Market Priced or Action Priced ! 

These are the most important question you should be getting the answers too, and the very last should be about commission, don't discount a company or agent because of this answer decide who you think will do the best job and get your home sold ! 

How Long Should I List My Home For ?

As you will see the way to determine how long to list your home for is according to the market.  So really although it is up to you to choose, you should be sure you are basing your decision on solid facts! In today's market it takes more than listing your home on MLS get it to the closing table.  You need an agent that is actively marketing your home in all venues internet presence, direct mail and open houses are just some of what needs to be done.  For today's market you should be listing your home with an agent for atleast 180 days, with the option to be released if they are not doing all that they agreed to do to market your home.  
Coldwell Banker Residential Brokerage does offer you this gurantee, if we are not doing everything we agreed to do, we will release you from the contract with us at anytime! 

Reasons for a 30-Day Listing 

• If your market is steaming hot and homes are flying into pending status within days, your agent might be agreeable to a 30-day listing.
• This way, if every other home on your street is selling within three weeks and yours is still sitting without an offer on day 29, you can easily get rid of your agent and hire somebody else.
• Before you refuse to relist with your agent, though, first look at the price. If your price is too high, no agent is going to sell it.

Reasons for a 90-Day Listing 

• In normal markets, 90-day listings are more common.
• During the first 30 days, you should get a lot of showings if you are priced right.
• Ask your agent for buyer feedback and follow up on suggestions to improve the condition of your home and / or price.

Reasons for a 180-Day Listing 

• If the average DOM exceeds two months, you're probably trying to sell in a buyer's market and will need a longer listing term.
• If you go into contract on a 90-day listing, your listing might expire while in escrow. In that event, your agent may require that you extend the listing, so it makes more sense to start out with a 180-day listing.
• Ask your agent when you initially sign the six-month listing if the agent will give you a personal guarantee that you can cancel at the end of 90 days if you are unhappy. If the agent won't give you that guarantee, then list with an agent who has more confidence to make you that offer.

Reasons for a One-Year Listing 

• If you live out in the boondocks where nothing ever sells under one year, then a 360-day listing might be the norm in your area.
• Unique properties, large parcels and expensive estates might take longer to sell because they may appeal to a limited number of buyers.
• Private islands and lavish vacation homes require a longer marketing time, and agents might not be willing to shell out the big marketing bucks for a short-term listing.

How To Make The Sale Of Your Home As Stress Free As Possible

COLDWELL BANKER® SHOWS YOU HOW TO MAKE SURE THE YOUR HOME SELLS AT THE RIGHT PRICE

Establishing a reasonable and profitable listing price for a home is perhaps the biggest challenge for every home seller. Before coming to a final figure, many sellers ask themselves: "That home down the block went for a lot; can I just price my home in the same ballpark?" "Can I jack the price up in a hot market?" These and many other factors must be considered before settling on a listing price. The professionals at Coldwell Banker Residential Homes recommend taking the following steps before setting an asking figure.

         

Choose the Right Sales Associate 
While many people use a friend or relative's referral to select a sales associate, it is smart to interview many prospective agents. Invite several sales associates to show their listings presentations. Pay attention to how they plan to market the home, and find out the reach of their company's Web site. Also, make certain they plan to list the home on the multiple listing service (MLS) and inquire about how broad their real estate contact network is.

Do The Homework. 
Ask a real estate sales associate for a written comparative market analysis (CMA). This will provide a list of recent sales prices of similar homes in the area (with comparable numbers of bedrooms, baths, square footage and lot size), the asking prices of homes currently for sale nearby and other important information. Then a sales associate will provide a professional estimation of a legitimate selling price.

Take the Emotion Out of It 
While the seller likely has great affection for the home, the sales associate will not set the price based on the seller's emotion. Instead, he or she will evaluate the location, condition and size of the home. A house in a secluded, exclusive area may appeal to some, while others will want to be closer to schools, shopping and health care facilities. What is the physical condition of the home? Is it a fixer-upper? Does it make a good first impression (the ever important curb appeal)? Will it appeal to a growing family, or is it better suited to empty nesters?

Determine If It Is a Buyers/Sellers Market
Home inventory, mortgage interest rates and the economy play a role in determining whether the buyer or seller has a negotiating advantage. Interest rates remain at historically low levels even as the economy shows signs of improving, putting buyers in a good position to shoulder "good" debt of homeownership.

     

Do the Math 
Do not forget to figure in closing costs, legal fees and other selling expenses when determining the selling price. The sales associate should be able to provide cost estimates, and negotiate with a potential buyer to ensure a good sale price.

                                                            
Give It the Once Over
There is one more step to ensure that the house sells for your price, or more. Do as much as possible to improve the home's appearance: touch up the paint, fix leaks, seal any cracks, clean up the clutter, and eliminate pet odors. The house has only one chance to make a first impression.

Why Do Real Estate Agents Ask For Price Reductions ?

So you have listed your home, and now a few weeks later your Realtor has called and suggested a price reduction on your home.  I find that most homeowners do not take to this well, but unfortunately the time or the need for price reductions can not be predicted by anyone.

Although I know many homeowners cringe, and feel as if their Realtor may have agreed to a listing price just to get the listing, this is not the case.  Realtors that do not care about their homeowners, and just wanted another listing will NOT ask for a price reduction they will simply sit by and do nothing.  If your Realtor calls you for a price reduction, listen to their reasons why, remember we do not control the market but it is our responsibility to keep you informed  about it. 

In some cases when I take a listing, I will tell the homeowner that we will be discussing a possible price reduction in 30 days.  I do this mainly for homes that I know have a large amount of competition surrounding them. Buyers will know how long your home has been on the market and we don't want them thinking your home is lacking in value.  I prefer to be up-front wiht my homeowners this way they know we will be having frequent discussions about the market, and what it means for their home.

Sometime price reductions are necessary for these homes because,

• The homes that were previously UC, sold at a lower price point than predicted by the closed sales of previous months.  
• Large amount of other homes have come onto the market at a substantially lower price.   
• Your home is getting views online but no one is calling to see it in person, this means you need to change the buyer pool.
• Your home is getting alot of potential buyers in but no offers, it means you have the right buyers but you need to adjust your homes perception of value.  

This is usually tricky, homeowners don't always see the difference between changing your price to adjust the buyer pool, and changing your price you change your homes perception of value.

Changing Your Buyers Pool

Your buyer pool is determined by the overall price of your home, in the price range where you are what do the buyers expect to be seeing? 

If your home is priced at the higher end of a range than you should really take a look at your competition and see where does your house come in? 

You may not want to lose the money by dropping your price, but unfortunately if the market has changed you have already lost it and you have the chance to do "damage control" and adjust to market conditions.  

Changing Your Perception Of Value

This is the tricky part sometimes adding value to your home is something your Realtor can actually do for you.  Perhaps your pictures didn't show everything your home had to offer, or they may have additional services to offer buyers than they had not utilized.  I personally have home warranties on my listings, it is very important for those that have a lot of competition because it gives my listings added value.   Sometimes their might be something specific that buyers have an issue with, an example is a homes whose taxes are higher than the competition offering negotiate a "price adjustment" for qualified buyers.  

The Exception

Some homes after the 30 days, even if I haven't received an offer I will suggest that we DO NOT reduce the price.  Certain homes, are sometimes just in need of a particular kind of buyer.  This is usually the case in larger homes, extremely small homes like cottages, waterfront or beach-front homes, or new construction.  These homes are not "cookie cutter" homes, and it will be a very specific buyer so the value of these homes are quite different.

The one thing you have to keep in mind when you get "that call" is that your Realtor is working for you our job is not to just sell your home, it is to help you make good decisions about the sale of your home!  There are some cases where a person absolutely can not budge on their price for financial reasons, if that is the case be honest with your Realtor they may be able to provide you with other alternatives aside from just selling your home.

What You Must Know When Selling Your Home

Many homeowners listed their homes back when our spring market started, which was early this year around February when we started seeing alot of buyer activity.  With the summer market quickly approaching those same homeowners are starting to wonder why their home may not have sold yet.  Now some of you may be thinking that is has only been 4 months since buyer activity picked up, but with a home correctly priced we will normally see them go under contract within 60 days.  There are only 3 things you & your Realtor have control over, and if your home is not selling than you should look at those 3 things first and foremost !!

Price

• When a person is searching for a home with the same characteristics as yours (bedrooms, baths), where does your home fall in the list? Look at the homes as if you are a buyer, if you are finding all the homes are priced below yours offer more you may want to consider adjusting your price. 
• Ask your Realtor to pull recent comps, meet with them and discuss market conditions.  This is also important because your Realtor will need to have these to support the price of your home once you have accepted an offer.  

Myth: Not all homes are created equal, sometimes your home may not be selling as quickly as you would like not because of price but because it is for a particular kind of buyer.  An example of this is if the home your selling is a cottage, or a high-end home because there is a smaller buyer pool for that kind of home.  The most important part of selling a home with a small buyer pool is making sure that you have the best exposure, and easy availability to make sure your don't lost out on any buyers.  

Tip: If your home is priced above market value, it will be impossible for your Realtor to get potential buyers to come and view your home.  Many homeowners will agree to taking a much lower offer than the listing price, but there is no way to convey that to buyers who are viewing your house online, they will rule it out simply because of the price.

Availability

• If your home has very strict restrictions on when potential buyers can come and see it, you may want to reconsider how/when you are showing it.  If you are unavailable to show your home during the week because of your work schedule, you should speak with your Realtor about allowing them to accompany showings during the week to take the burden off of you, and allowing more buyers to be able to get in.  
• This next one is something that not all Realtors agree with, but I am a big believer in open houses.  I schedule all of my open houses for the month in advance because I want to give buyers an open invitation to come in and see your home the moment that they see it online.  
• Taking it a step farther you will want to make sure your Realtor is getting back to those that are inquiring about your home in a timely manner. Sometimes it is not always about how quickly buyers can see your home, bu how long it takes for your Realtor to get back to them! 

Myth: Some sellers believe that by requiring 48 hours for their home to be shown gives them a better chance of preparing their home to make sure it shows well.  Unfortunately, not all buyers give their Realtors 48 hours notice that they want to see your home, it is better to ask for a reasonable amount of time to prepare than possibly lose that buyer. 

Tip: When potential buyers are viewing your home whether it is a private viewing, or an open house do not follow them around.  Often times buyers will feel as if they are intruding on the homeowners by being there, you want to give them space to take it all in! 

Condition

• First thing you should do is look at  your pictures, if you took pictures before the spring flowers and grass became green you should ask your Realtor to update your pictures.  Remember you need to sell the house first via the pictures to get the buyers to want to come and see it in person.  
• Spruce up your curb appeal, give the front door a fresh coat of paint or add some solar lights and plants.  Buyers spend their weekends driving around looking for open houses, even if your home is not having one you still want to catch their attention!  
• If you have broken screens/doors/cabinets/tiles take the time the time and replace them if it is not a huge expense those are the things that make buyers look at your home and think of "projects" although they have quick fixes.  

Myth: Many homeowners think fixing up your home is a waste of time and money when you are attempting to sell it. Now this is only somewhat of a myth, doing major renovations may not be the best idea, but doing small projects to fix or update your home is normally recommended to help your homes chance.  

Tip: Take the time to look at your home objectively, remember although you can not make every buyer happy you can help the chances of your home selling quickly by doing some small projects.  The best place to start is by doing all those things that were on your "honey do list" that you hadn't had time to get to! 

There are so many different factors that come into play when getting your home sold, but these are the top 3 that are the most important ! Over the next few weeks I will be blogging more about some tips for sellers, but as always if you have a question I did not cover please feel free to comment or email me directly! 

Cash Deals In Today's Market

I thought it was about time I took some time and wrote a blog about cash deals in today's market.  Interest rates are at a all time low still, but some buyers are still opting to buy their homes in cash figuring it will earn them interest quicker invested in a property than sitting in the bank.  If you are the buyer who has the ability to buy in cash you do have the upper hand on some other buyers, but not all.  This blog is for both the buyers, and for sellers to help both understand how a cash deal works, benefits of accepting a cash offer, but also how/why a seller may not be able to accept a cash offer.  

Presenting A Cash Offer

There are certain steps to presenting a cash offer that you may not ordinarily have to do, normally when you present an offer with a mortgage you would be presenting the offer with you mortgage pre-approval.  When you are doing a cash deal you will need to provide "Proof of Funds", this must be  recent, if your proof is 3 months or older you must get a new one.  Generally you can contact an agent at your bank and ask them to provide you with a letter, or even simply a copy of a recent bank statement with your bank account information hidden with only your name and available balance displayed.  

If you are purchasing your new home, with the cash from the sale of your current home than you must let this be known in the very beginning of negotiating.  Before you can place an offer, just like any other buyer you should be under contract on your current home.  

Benefits Of Cash Offers 

A seller may or may not prefer a cash offer because of the benefits it presents to them.  Not all homeowners are in a position to accept a lower cash offer because they may have a certain amount they need to "clear" on their home.  There are benefits that can make taking a lower cash offer vs a higher offer with a mortgage appealing to a homeowner.  

• No Bank Appraisals - This is pretty simple to understand, you do not need to worry at all about whether or not your home appraises because there is no bank involved which can sometimes be an obstacle.  

• No Loan Funding Contingencies - Whenever someone obtains a mortgage there are certain paperwork the bank will require from them, if they can't meet those requirements they will not be able to obtain the mortgage.  This can sometimes be avoided by using a good mortgage company but their are no guarantees, financial circumstances can change quickly and unexpectedly. 

• Home Inspections - Every buyer is entitled to a home inspection, but generally with cash deals the home is sold "as is", which means there will be no repairs or credits done to the home.   This is because generally homeowners are already accepting a lesser offer because of it being cash.  

• Faster Closing - It generally takes 60-90 days to go to closing on a home, the time frame is usually decided by how quickly a buyer can get the mortgage commitment, and close.  With no bank comes the benefit of being able to close at a time that is good for both the seller and the buyer.  

I have many homeowners ask me when is the best time to accept a cash offer vs waiting for a buyer with a mortgage pre-approval, unfortunately there is no set criteria but I can give you some pointers on when or why you should consider it.  

• If you need to move or relocate quickly, no one likes the idea of leaving there home vacant because of the risks and costs associated with it.  
• If you have your eye on another home that is on the market the benefit of having your home go to contract quickly will in turn mean you can put in a stronger offer for your new home.
• If the home is an estate sale it may need work, or you may not know the full history like the actually homeowner would.  Homes that need work will generally take longer to sell, which is why a cash offer allows you to move the home quickly reducing costs, as well as risks while giving you less responsibility after your home inspection report comes back.  

Always remember your Realtor should be advising you whether or not a cash deal is a good option for you, this goes for both buyers and sellers.  If you are the buyer placing a cash offer, my best advice is to make sure your Buyer Broker has helped you come up with a fair offer, remember there is a difference between a cash offer and a low offer ! For homeowners that have received a cash offer the process of deciding whether to accept it, or perhaps counter all depends on your home, situation, and the market for your immediate area. Your Realtor will be able to pull what cash sales have closed to help you make an educated decision about what is a fair offer for your home! 

Tax Benefits & Deductions For Homeowners

There are many benefits to being a homeowner, one of which is the tax deductions that you are entitled to.  There are a few different areas where you can get a break but you should always consult with a tax consultant to make sure it is done properly. 

• Mortgage Interest Deduction - This is a deduction available for mortgages on your primary, or secondary home only.  This is one of the most commonly known tax breaks that are taken by homeowners, but for first time buyer who have done already owned a home often are not quite sure about.  Keep form 1098 Mortgage Interest Statement from your lender this will tell you exactly how much interest you paid on your loan.  If you have paid more in interest than the standard deduction than you may benefit from itemizing your taxes to be able to get more than the standard.  

• Mortgage Insurance Premiums  - Homeowners with new mortgages that have the primary mortgage insurance are also eligible for an additional tax break.  In order to qualify for this tax break your Adjust Gross Income must be less than $109,000.  Unfortunately if you make over that you will not be eligible to partake in this deduction.  

• Energy Star Deductions - This is a great deduction, and it is not limited to just first time buyers, it is for all homeowners.  In order to get this deduction you should be sure you stay organized with any of the new appliances or improvements you make to you home by saving the receipts because there is no set documentation required.  Many manufacturers will advertise if the product is eligible for this kind of deduction.  Everything from appliances, windows, even solar panels improvements can be tax deductible.  The one catch is you are not eligible to deduct for the cost of insulation, and some items have a maximum amount you can get credit for.  For a full list of what items are eligible for tax deductions please refer to Energy Saving Information.               

• Property Taxes - This a great deduction because there is no limit to what you can deduct obviously you can not deduct more than what you paid, but you do not need to meet any income restrictions.  This is a line item on your normal tax return, and does not require an additional "schedule".  

Something all new homeowners should be aware of is that you are eligible to grieve your property taxes which is different from taking the deduction for your property tax. 

I will usually recommend grieving your taxes I personally do so every year, when you grieve your taxes they can not be raised so it makes it a worthwhile investment of your time.  Many companies offer to do the paperwork for you and split the savings with you at the end of the day.  When you are in the process of buying the home you should ask to know what the assessed value of the home is, just for your knowledge.  

So lets say you purchase a home that is currently being assessed at $300,000 which could put your taxes around $9000, but you purchased it for say $250,000 than your home is over assessed.  This is the perfect time to grieve your taxes, it is also recommended for those sellers to do this prior to listing your home if you are over assessed. 

For more information on Grievance Procedures please refer to the NYS Website.

I am getting quite a few questions about the First Time Homebuyers Credit, and unfortunately it is no longer available for 2012. First time homebuyers are still entitled to pull money out of their IRA penalty free towards the purchase of their first home, and I will be writing another blog about this as well as Affordable Housing Developments for first time homebuyers in the next few weeks! 

What Your Should Ask Before Re-Listing Your Home

Many of my listings happen to come from expired listings, because of that I meet a lot of homeowners that are hoping a new Realtor will get their home sold.  Let me first off by pointing out that I am going to list the questions you should be asking in order and the most important !

1.  What Kind Of Company Do They Work For ? 
The very first question I hear from a homeowner is "What Is Your Commission" ? This should actually be your LAST question, it does not matter what a Realtors commission rate is if they don't do what needs to be done to sell your home.

• Is the company individually owned, or is it owned by a company ? In most cases bigger is always better because they are affiliated with other companies that can help get your home sold.  You can't just assume that because they have the named Century 21, Coldwell Banker, or Prudential does not mean owned by a company because these are franchises.   Coldwell Banker Residential Brokerage is company owned, that is why and how we are able to offer so many options like in-house mortgages, home warranties, insurance, and a title agency. 

2. What Is Their Internet Presence, and How Do They Create Your Listing ? 

• What do they do for online advertising ? Everyone puts their listings onto MLS, what you want to know is how many other sites will your home be on, and who will be the point of contact on each of those websites ! Many homeowners don't realize but the ad space around all listings need to be purchased by your agent otherwise the point of contact is not your agent, but rather the agent who did purchase it.  Another important part of Internet presence is do you know if your listing is actually coming up in a search and being viewed, you should find a company that can track at least the number of views your getting or how many times your home came up in someones search.  

• What do they do to create your listing ? The first impression your house gives is by it's listing does the agent stage your home or professional photos, buyers are very visual so you want to be sure that you catch their attention right away ! Another often overlooked aspect is what your listing will actually have written on it ? You want to make sure that it has a detailed description and directions many buyers look to the directions to figure out the area that it is in.  The best way to gauge all of these things is to ask to see the agents other listings and see how they present ! 

3. How Available Would Your Agent Be ? 

• How available are they to you ? This is another question that homeowners often forget to ask, you want to know how often your realtor will be following up with you to give you updates on your home, feedback from Realtors, and most importantly what is going on with other homes that are selling and coming onto the market while your on the market ! You want a realtor who has a system to keep you up to date on all of those things going on in the market around you, this way you know how and when you will hear from them.  

• How available are they to buyers ? This is a very important question to ask because how quickly they respond to inquiries will decide how many buyers stay interested in your home.  Statistics show that 60 minutes after an inquiry is sent, the chance of reaching that potential buyer decreases to less than 50% !  The best way to find this out is after your appointment place an inquiry with them about one of their listings and see how long it takes for them to get in touch with you !  You will also want to see if they will attend showings that are being done by other brokers.  Granted the other brokers will be the ones talking to the buyers you want any questions they have, or any pertinent information about your home to be answered accurately and the only way they can be sure that happens is if your agent is there.  Now, this is my disclaimer, even the best agent will not be able to attend all showings but you should make sure they have a follow up plan in place for the ones they won't be able to attend.  

4. What Technology Do They Use To Help Their Listings ? 

• This question is more of a general question, you want an agent who uses all the tools that are available out there to help get your home sold.  You also want someone who understands the basic technology that is being used in today's market such as the social marketing, virtual presentations, online newspapers and forums ! These are the tools that bring buyers to your home, the more places your home and your agent are the more chance the right buyer for your home will come across it.  I happen to offer some additional tools for buyers who look at my listings like that ability to chat with me online, or giving them the ability to actually schedule an appointment anytime at their convenience! 

5. What Is Your Home Worth ? 

• I am sure your wondering why this at the bottom of the list, the reason why is because as long as the agent has provided you with a Comparative Market Analysis than the price of your home should not vary by very much.  If the agent has not performed an actual CMA and presented it to you, than that should make your decision for you ! The one part of this you do want to make note of is what kind of pricing style they would suggest for your home and area Market Priced or Action Priced !

These are the most important questions you should be getting the answers too, and the very last question should be that of "What Is Your Commission", don't discount a company or agent because of this answer decide who you think will do the best job and get your home sold ! If you hire an agent that your not sure can actually sell your home to save 1% on commission you will only end up spending more time and money living and maintaining it rather than moving onto your next home !