May 2009

Home Retention Consultation Services

With the rapid increase of foreclosures during the past few years Taylor’d 2 U Realty is pleased to offer southwest Ohio area residents Home Retention Consultation and Counseling Services.  Our goal is to re-establish communication between mortgage servicers and homeowners who are in default of their home loans and educate them on the alternatives to foreclosure.

Our company partners with top mortgage servicers to create positive, timely and cost-effective resolution of non-performing assets.  We work with each of our clients to manage volume and identify ways to create personalized solutions that fit the needs of the servicers and the homeowners.

Our team of Foreclosure Intervention Specialists continually strive to educate homeowners in default on alternatives to foreclosure, including re-instating the existing loan, executing loan modifications and relocation.

The Taylor’d 2 U Realty team of professionals specialize in resolving the following non-performing asset challenges:

Foreclosure

Intervention

Homeowner Contacting

Homeowner Counseling

Property Evaluation (BPOs) and Property Inspection

REO Sales and Disposition and Property Management

Please feel free to contact us for a free initial consultation.

Treasury and HUD Announce $419 Million In Recovery Act Funds For Creation of Jobs & Affordable Housing

As part of the Obama Administration’s effort to create jobs and ease pressures on the housing market, the U.S. Department of the Treasury today announced more than $330 million in American Recovery and Reinvestment Act (Recovery Act) funding to spur the development of affordable housing units in Kansas, Michigan, Ohio, Wisconsin, and Puerto Rico. The Department of Housing and Urban Development (HUD) also announced $83 million for housing development in Ohio. The announcements come just three months after the Recovery Act was signed into law on February 17.

“Today’s announcement of housing funds is an example of how President Obama’s Recovery Act is setting our nation back on the path to economic stability, one community at a time,” said Treasury Secretary Tim Geithner. “The construction and development created by this initiative will help the private sector to create much needed jobs and increase the availability of affordable housing for families around the country.”

“In order for the Recovery Act to work as the President and Congress intended, it is essential that funds get out and contribute to job creation as quickly and efficiently as possible,” said HUD Secretary Shaun Donovan. “This announcement today illustrates the commitment these agencies, and the Administration as a whole, have to ensuring that Recovery Act funds work to jumpstart the economy and housing market.”

The labor and housing crises in this country are deeply inter-connected. Since their peak level at the beginning of 2006, housing starts have fallen 80 percent. Houses currently under construction are at a 12-year low, down 60 percent from the peak in the first quarter of 2006. This collapse has led to severe job losses in the residential building and specialty trades sector related to housing, with employment down by nearly one-third — a loss of close to one million jobs. Such losses not only indicate significant problems in the residential construction sector, but also suggest that the need for affordable housing has risen markedly during the recession.

In response, the Treasury Department and HUD have launched two innovative programs that will provide more than $5 billion from the Recovery Act to put people to work building quality, affordable housing for individuals and families affected by the current crisis.

The Treasury Department will work with state housing agencies to provide $3 billion in funding to jump start the development or renovation of qualified affordable housing for families across the country. Under this program, after meeting certain eligibility requirements, state housing agencies will receive funding to construct affordable housing developments.

Today, the Treasury Department is announcing the first round of recipients: $115 million in Wisconsin; $99 million in Puerto Rico; $78 million in Michigan; $23 million in Kansas; and $21 million in Ohio.

In addition, HUD will be awarding $2.25 billion in grants to state housing credit agencies under the Tax Credit Assistance Program (TCAP) program to complete construction of qualified housing developments. This program will ultimately provide affordable housing to at least 35,000 low-income households. Today, HUD announced its first award, providing $83 million to kick-start stalled multifamily developments in Ohio. Submissions from the remaining states, Puerto Rico, and the District of Columbia are due to HUD by no later than June 3, so this is the first of many similar announcements HUD anticipates making in the coming weeks.

The following are examples of specific local projects the Treasury funds will support:

Osawatomie, Kansas. The funds will complete construction on an elderly low-income housing project. Earlier this year, developers had to halt construction with three fourths of the building completed because, as the economy contracted, they could not attract additional investors. The Kansas Housing Resources Corporation anticipates that jobs will be created for plumbers, landscapers, electricians, general contractors, and painters. In addition, 24 Osawatomie families will have affordable housing at a time when many need it most.

Detroit, Michigan. Among the project the Michigan State Housing Development Authority expects to fund is Across the Park Apartments, a $13 million preservation effort that will restore and modernize a federally assisted development in the City of Detroit. Plans include renovating all 200 housing units, including energy efficiency upgrades. The project is expected to create construction jobs and full-time property management jobs.

Canton, Ohio. The housing award fund will allow for construction of Gateway House II, a new 40-unit permanent housing project in Canton, Ohio, to serve Stark County’s population. The property is currently occupied by a vacant three-story vinyl sided tenement building, which is slated for demolition. The property has ample space around it for parking, green space and recreational activities. The project will provide jobs for contractors, electricians, plumbers, painters, roofers, and landscapers. In addition, once complete, the developments will make permanent jobs in property management and maintenance.

The funds announced today are the first in a series of awards based on a rolling application process HUD and the Treasury Department anticipate making similar announcements in the coming weeks.

HUD Announces Sanctions Against More Than 120 FHA Approved Lenders

The U.S. Department of Housing and Urban Development’s Mortgagee Review Board today announced actions against more than 120 lenders for violating FHA requirements. Violations range from failure to conduct sufficient quality control, to failure to continue to meet FHA recertification requirements, to falsifying loan documents.

The entire list of Board actions is posted as a Notice in the Federal Register and may be accessed through the HUD website.

Yesterday, President Barack Obama signed the Helping Families Save Their Homes Act that grants FHA more authority to keep bad actors out of the FHA programs and provided additional enforcement tools to police those lenders who employ false or misleading marketing tactics (see attached). Meanwhile, the Administration’s FY 2010 budget proposal seeks additional investments in FHA to curb fraud and abuse including enhanced investments in technology, staffing and training to enable FHA to cope with the rising volume of mortgage business, detect fraud, and monitor the practices of lenders and appraisers.

“At this time of uncertainty in the mortgage market, FHA needs to be especially vigilant in making sure that its approved lenders meet the highest standards of conduct,” said HUD Secretary Shaun Donovan. “We expect, and more importantly American homebuyers deserve, that when they deal with an FHA-approved lender, they’re dealing with a lender they can trust. “The provisions in the Helping Families Save Their Homes Act will expand our enforcement and help keep bad actors out of our program.”

Sanctions the Board may impose include issuing letters of reprimand, suspension of FHA lending approval, probation, withdrawal of FHA approval, and payment of civil money penalties. Among the actions announced today, 102 lenders had their FHA approval withdrawn, five lenders agreed to make indemnification payments to FHA totaling more than $500,000, and 24 lenders were accessed fines or administrative costs totaling more than $1.2 million.

HUD’s actions resulted from standard compliance reviews of FHA-approved lenders. HUD’s four Home Ownership Centers - in Atlanta, Denver, Philadelphia and Santa Ana, California - conduct a majority of the reviews. The most serious violations of FHA requirements are referred to the Mortgagee Review Board. Board actions are reported quarterly in the Federal Register.

The lenders noted below had their FHA approval withdrawn and were assessed substantial civil money penalties:

Gatewood Mortgage Corporation, Houston, TX

Gatewood Mortgage Corporation (Gatewood) is a Direct Endorsement lender. This matter came before the Board as a result of multiple violations including the submission of false information and documentation, and violations of FHA approval and underwriting requirements.

Among other things, the Board found that Gatewood submitted false information with respect to its initial approval application, Yearly Reverification Report and multiple notifications to HUD. Gatewood also used the identity of individuals without their knowledge. Further, Gatewood submitted financial statements to HUD that were falsified and not audited by a licensed certified public accountant. Gatewood also violated HUD eligibility requirements by employing and retaining a debarred individual as an employee. Gatewood improperly permitted third parties to originate FHA insured mortgage loans. Finally, Gatewood failed to provide proper documentation in connection with the source of funds required for closing. Based upon the numerous and serious violations of HUD requirements and the submission of false information to the Department, Gatewood’s FHA approval was permanently withdrawn on January 16, 2009, and a Civil Money Penalty of $492,500 was imposed.

Hogar Mortgage and Financial Services, Inc., Montvale, NJ

Hogar Mortgage and Financial Services, Inc., (Hogar) is a Direct Endorsement lender. In this case, the Board determined that Hogar committed serious violations of HUD underwriting requirements. Specifically, it found that Hogar failed to resolve discrepancies and conflicting information when originating loans and/or obtaining mortgage insurance; failed to document the source and/or adequacy of funds for the downpayment, closing costs and/or cash reserves; and failed to maintain and implement a Quality Control Plan in compliance with HUD/FHA requirements. Based upon the seriousness of the violations and the lender’s response, Hogar’s FHA approval was withdrawn on January 27, 2009, for five years and a civil money penalty was imposed in the amount of $151,500.

HUD’s Mortgagee Review Board was established in 1989 and exercises all of the functions of the Secretary with respect to administrative actions against lenders. The Board is the only entity in the Department that has the authority to impose civil money penalties and administrative sanctions against HUD/FHA-approved lenders who knowingly and materially violate HUD/FHA program statutes, regulations and handbook requirements. The Board also acts to enforce the provisions of the Fair Housing Act, the Equal Credit Opportunity Act, and Executive Order 11063, as they apply to the origination and servicing of HUD/FHA-insured single family and multifamily mortgages and loans.

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The Helping Families Save Their Homes Act contains numerous provisions that help FHA better ensure that predatory lending entities and individuals are not allowed to participate in the FHA home mortgage insurance program. Specifically, the Act would:

Require HUD approval of all parties participating in the FHA single family mortgage origination process.

Allow HUD to impose a civil money penalty against loan originators who are not HUD-approved and yet participate in FHA mortgage originations.

Make clear that an applicant is ineligible for approval if the entity or any officer, partner, director, principal, or employee of the entity is: a) suspended or debarred by any Federal agency; b) under indictment for, or has been convicted of, an offense that reflects adversely upon the applicant’s integrity, competence or fitness to meet the responsibilities of an approved mortgagee; c) subject to unresolved findings contained in a HUD or other governmental audit, investigation, or review; d) engaged in business practices that do not conform to generally accepted practices of prudent mortgagees; e) convicted of a felony related to participation in the real estate or mortgage loan industry; or f) in violation of provisions of the S.A.F.E. Mortgage Licensing Act.

Require that HUD receives notice of the debarment and any change in licensing status of a FHA-approved mortgagee.

Require HUD to expand the existing FHA process of reviewing new applicants for FHA approval for the purpose of identifying those representing a high risk to the Mutual Mortgage Insurance Fund and implement procedures that expand the number of loans reviewed by FHA for lenders approved within the last 12 months, and include a process for random reviews that is based on loan volume by newly approved participants.

Require FHA-approved mortgagees to use their HUD registered company names in all advertizing and to keep copies of all advertisements. FHA has witnessed a significant increase in deceptive advertising practices over the last 18 months. This provision will provide for better oversight of the advertising practices of approved lenders by requiring that the lenders use the same corporate name as is on file with FHA.

Get the Facts About Foreclosures

Anyone can fall behind on their mortgage payment and face foreclosure. It is often the result of unplanned, even uncontrollable circumstances in a person’s life such as unemployment, the death or illness of a loved one, natural disaster, divorce or other unexpected changes in a family’s financial situation. After payments are missed, the mortgage servicer can initiate the legal process of foreclosure.

Home Inspections Avert Future Headaches

Suppose you bought a house and later discovered, to your dismay, that the stucco exterior concealed a nasty case of dry rot. Or suppose that when you fired up the furnace in the winter, you discovered a cracked heat exchanger leaking gas into your home. The best way to avoid unpleasant surprises like these is to arrange for a home inspection before you buy.

Home Inspections Help You Avoid Unpleasant Surprises

A good home inspection is an objective, top-to-bottom examination of a home and everything that comes with it. The standard inspection report includes a review of the home’s heating and air-conditioning systems; plumbing and wiring; roof, attic, walls, ceilings, floors, windows, doors, foundation and basement.

Getting a professional inspection is crucial for older homes because age often takes its toll on the roof and other hard-to-reach areas. Problems can also be the result of neglect or hazardous repair work, such as a past owner’s failed attempt to install lights and an outlet in a linen closet.

A home inspection is also a wise investment when buying a new home. In fact, new homes frequently have defects, whether caused by an oversight during construction or simply human error.

Getting an Inspector

Real estate agents can usually recommend an experienced home inspector. Make sure to get an unbiased inspector. You can find one through word-of-mouth referrals, or look in the Yellow Pages or online under “Building Inspection” or “Home Inspection.”

Home inspections cost about a few hundred dollars, depending on the size of the house and location. Inspection fees tend to be higher in urban areas than in rural areas. You may find the cost of inspection high, but it is money well spent. Think of it as an investment in your investment – your future home.

Some builders may try to dissuade you from getting a home inspection on a home they’ve built. They may not necessarily be trying to hide anything because most builders guarantee their work and will fix any problems in your new home before you move in. Some builders, in fact, will offer to do their own inspections. But it’s best to have an objective professional appraisal - insist on a third-party inspector.

An Inspection Will Educate You about Your House

Education is another good reason for getting an inspection. Most buyers want to learn as much as they can about their purchase so they can protect their investment. An examination by an impartial home inspector helps in this learning process.

Ask if you can follow the home inspector on his or her rounds. Most inspectors are glad to share their knowledge, and you’ll be able to ask plenty of questions.

Inspection Timing and Results

Homebuyers usually arrange for an inspection after signing a contract or purchase agreement with the seller. The results may be available immediately or within a few days. The home inspector will review his or her findings with you and alert you to any costly or potentially hazardous conditions. In some cases, you may be advised not to buy the home unless such problems are remedied.

You could include a clause in your purchase agreement that makes your purchase contingent upon satisfactory inspection results. If major problems are found, you can back out of the deal. If costly repairs are warranted, the seller may be willing to adjust the home’s price or the contract’s terms. But when only minor repairs are needed, the buyer and seller can usually work out an agreement that won’t affect the sale price.

Tips on Finding the Right Home for You

Once you’ve settled on a couple of preferred neighborhoods for your home search, it’s time to pick out a few homes to view. Having a house features “wish list” keeps you focused on which features are most important to you.

When narrowing down your home search, consider the following:

• know what types of home you want to buy
• determine what age and condition of the house you want to buy
• consider resale potential
• use a features wish list to keep focused
• use a home search comparison chart to keep organized
• act decisively when you find the right home

Determine What Type of Home You Want to Buy

There are several forms of home ownership: single-family homes, multiple-family homes, condominiums and co-ops.

Single-family homes: One home per lot.

Multiple-family homes: Some buyers, particularly first-timers, start with multiple-family dwellings, so they’ll have rental income to help with their costs. Many mortgage plans, including VA and FHA loans, can be used for buildings with up to four units, if the buyer intends to occupy one of them.

Condominiums: With a condo, you own “from the plaster in.” You also own a certain percentage of the “common elements” - staircases, sidewalks, roofs, etc. Monthly charges pay your share of taxes and insurance on those elements, as well as repairs and maintenance. A homeowner’s association administers the development.

Co-ops: In some cities, cooperative apartments are common. With co-ops, you purchase shares in a corporation that owns the whole building, and you receive a lease to your own unit. A board of directors, comprised of owners and elected by owners, supervises the building management. Monthly charges include your share of an overall mortgage on the building.

Decide What Age and Condition of Home You Want to Purchase

Weigh your needs, budget and personal tastes in deciding whether you want to buy a newly constructed home, an older home or a “fixer-upper” that requires some work.

Consider Resale Potential

As you look at homes, you may want to keep in mind these resale considerations.

• One-bedroom condos are more difficult to resell than two-bedroom condos.
• Two-bedroom/one-bath single houses generally have less appeal than houses with three or more bedrooms, and therefore have less appreciation potential.
• Homes with “curb appeal,” i.e., well-maintained, attractive and with a charming appearance from the street, are the easiest to resell.
• The most expensive houses on the street, or ones with anything unusual or unique are not suited for resale. The best investment potential is traditionally found in a less expensive, more moderately sized home.

Use a Features Wish List to Keep Your Search Focused

Make a features wish list to clarify which features are most and least important to you when looking for a home. Using this features wish list will keep your house hunt focused and effective.

Use a Home Comparison Chart to Keep Your Observations Organized

While house hunting, it’s a good idea to make notes about what you see because viewing several houses at a time can be confusing. Use a home comparison chart to help you keep track of your search, organize your thoughts and record your impressions.

Act Decisively When You Find the Right Home

Before you begin the home buying process, resolve to act promptly when you do find the right house. Every REALTOR® has stories to tell about a couple who looked far and wide for their dream home, finally found it, and then said, “We always promised my Dad we’d sleep on it, so we’ll make an offer tomorrow.” Many times the story had a sad ending - someone else came in that evening with an offer that was accepted.

Resolve that you will act decisively when you find the house that’s clearly right for you. This is particularly important after a long search or if the house is newly listed and/or underpriced.

Tips On Identifying The Right Neighborhoods For Your Home Search

Narrow your home search by identifying neighborhoods that are right for you. This helps keep your search focused and efficient. Your local REALTOR® can offer neighborhood information to guide you in your search.

When evaluating a neighborhood you should investigate local conditions. Depending on your own particular needs and tastes, some of the following factors may be more important considerations than others:

• quality of schools
• property values
• traffic
• crime rate
• future construction
• proximity to schools, employment, hospitals, shops, public transportation, prisons, freeways, airports, beaches, parks, stadiums and cultural centers such as museums and theaters

Neighborhood Search Strategies for Limited Budgets

If you’re a first time-buyer with limited financial resources, it’s wise to buy a home that meets your primary needs in the best neighborhood that fits within your price range. You can maximize your home purchase location by incorporating some of the following strategies into your neighborhood search:

• Upcoming neighborhoods: Look for communities that are likely to become “hot neighborhoods” in the coming years. They can often be discovered on the periphery of the most continuously desirable areas.
  Check for planned future development such as additional transit; new community services such as pools and theatres; and chain stores planning to move in.
  Look for a home in a good neighborhood that is a bit farther out of the city. If commuting is a concern, purchase a home that is close to public transportation.
• Neighborhood demand: Look at the neighborhood demand by asking your real estate agent whether multiple offers are being made, whether the gap between the list price and sale price is decreasing and whether there is active community involvement. You can also drive around neighborhoods and see how many “sale pending” and “sold” signs there are in a particular area.
• Co-ownership: Look into purchasing a condominium or co-op, rather than a house, in a desirable neighborhood. This way you still may be able to purchase in a prime area that you otherwise could not afford.

Tips On Setting A Firm List Price For Home Re-Sale

Setting the list price for your home involves evaluating various market conditions and financial factors. During this phase of the home selling process, your REALTOR^® will help you set your list price based on:

• pricing considerations
• comparable sales
• market conditions
• offering incentives
• estimated net proceeds

Pricing Considerations – Find a Balance Between Too High and Too Low

When setting a list price for your home, you should be aware of a buyer’s frame of mind. Consider the following pricing factors:

If you set the price too high, your house won’t be picked for viewing, even though it may be much nicer than other homes on the street. You may have told your REALTOR^® to “Bring me any offer. Frankly, I’d take less.” But compared to other houses for sale, your home simply looks too expensive to be considered.

If you price too low, you’ll short-change yourself. Your house will sell promptly, yes, but you may make less on the sale than if you had set a higher price and waited for a buyer who was willing to pay it.

TIP: Never say “asking” price, which implies you don’t expect to get it.

Price Against Comparable Sales in Your Neighborhood

No matter how attractive and polished your house, buyers will be comparing its price with everything else on the market.

Your best guide is a record of what the buying public has been willing to pay in the past few months for property in your neighborhood. Your REALTOR^® can furnish data on sales figures for those comparable sales and analyze them to help you come up with a suggested listing price. The decision about how much to ask, though, is always yours.

Competitive Market Analysis (CMA): The list of comparable sales a REALTOR^® brings to you, along with data about other houses in your neighborhood that are presently on the market, is used for a “Comparative Market Analysis” (CMA). To help in estimating a possible sales price for your house, the analysis will also include data on nearby houses that failed to sell in the past few months, along with their list prices.

A CMA differs from a formal appraisal in several ways. One major difference is that an appraisal will be based only on past sales. Also, an appraisal is done for a fee while the CMA is provided by your REALTOR^® and may include properties currently listed for sale and those currently pending sale. For the average home sale, a CMA probably gives enough information to help you set a proper price.

Formal Written Appraisal: A formal written appraisal (which may cost a few hundred dollars) can be useful if you have unique property, if there hasn’t been much activity in your area recently, if co-owners disagree about price or if there is any other circumstance that makes it difficult to put a value on your home.

TIP: If you do order a market value appraisal, make it clear you don’t need an elaborate, or full narrative report, i.e., the kind that’s complete with photos of the house and neighborhood. Floor plans and a site map is sufficient in most cases.

Market Conditions – Is it a Buyer’s Market or a Seller’s Market?

A CMA often includes a Days on the Market (DOM) value for each comparable house sold. When real estate is booming and prices are rising, houses may sell in a few days. Conversely, when the market slows down, average DOM can run into many months.

Your REALTOR^® can tell you whether your area is currently in a buyer’s market or a seller’s market. In a seller’s market, you can price a bit beyond what you really expect, just to see what the reaction will be. In a buyer’s market, if you really need to sell promptly, offer an attractive bargain price.

If You Price High, Set a Schedule for Lowering the Price

Some sellers list at the rock-bottom price they’d really take, because they hate bargaining. Others add on thousands to the estimated market value “just to see what happens.” If you want to try that, and if you have the luxury of enough time to feel out the market, sit down with your REALTOR^® and work out an advance schedule for lowering the price if need be.

If there haven’t been many prospects viewing your home after three weeks, you may need to lower your list price. If that doesn’t bring any prospective buyers, you may need to lower your list price again. Plan on doing that regularly until you find a level that attracts buyers. Make a written schedule in advance, before emotion takes over and you’re tempted to dig your heels in.

Offering Incentives to Hasten a Sale

Sometimes cash incentives are as effective as lowering the price, especially in the lower price range where buyers may be “cash poor.” You may offer to pay some or all of a buyer’s closing costs and discount points required by the buyer’s lending institution.

If you haven’t had much traffic through your house and you’re in a hurry to sell, you may want to add the offer of a bonus to the selling broker, in addition to their commission. An example of the wording for such an offer may be “to the broker who brings a successful offer before Christmas.”

Estimating Net Proceeds

Once you’ve been given an estimate of market value by your REALTOR^®, you can get a rough idea of how much cash you might walk away with when the sale is completed. This can be particularly useful when you start looking for another home to buy.

To estimate your net proceeds, from the estimated sales amount, subtract the applicable costs in the three sections outlined below: seller’s costs, buyer’s/seller’s costs and closing costs.

Seller’s Costs: Subtract the following costs as applicable.

• payoff figure on your present loan(s)
• broker’s commission
• prepayment penalty on your mortgage
• attorney’s fees
• unpaid property taxes

Buyer’s/Seller’s Costs: Additionally, your REALTOR^® can tell you whether local customs or rules dictate whether the buyer or seller pays for the items listed below. Subtract the following costs, as applicable.

• title insurance premium
• transfer taxes
• survey fees
• inspections and repairs for termites, etc.
• recording fees
• Homeowner Association transfer fees and document preparation
• home protection plan
• natural hazard disclosure report

Closing Costs: As far as closing costs are concerned, you and your eventual buyer may agree on any arrangement that suits you, no matter what local practice dictates. Your REALTOR^® will assist you in estimating what your final closing costs will be.

Tips For Getting Your House Ready to Show Potential Buyers

Get Your House Ready to Show to Buyers

A house that “sparkles” on the surface will sell faster than its shabby neighbor, even though both are structurally well maintained.

From experience, REALTORS^® also know that a “well-polished” house appeals to more buyers and will sell faster and for a higher price. Additionally, buyers feel more comfortable purchasing a well-cared for home because if what they can see is well maintained, they assume that what they can’t see has probably also been well maintained. In readying your house for sale, consider:

• how much should you spend to prepare your house for sale?
• exterior and curb appeal
• interior appeal

Before putting your house on the market, take as much time as necessary (and as little money as possible) to maximize its exterior and interior appeal.

How Much Should You Spend to Prepare Your House for Sale?

In preparing your home for the market, spend as little money as possible. Buyers will be impressed by a brand new roof, but they aren’t likely to give you enough extra money to pay for it. There is a big difference between making minor and inexpensive polishes and touch-ups to your house, such as putting new knobs on cabinets and a fresh coat of neutral paint in the living room, and doing extensive and costly renovations, like installing a new kitchen.

Your REALTOR^® is familiar with buyers’ expectations in your neighborhood and can advise you specifically on what improvements need to be made and which improvements are most effective. Don’t hesitate to ask for advice.

Maximizing Exterior and Curb Appeal

When preparing to put your home up for sale, your first concern is the home’s exterior. If the outside, or “curb appeal” looks good, people will more than likely want to see what’s on the inside.

Here are some tips to enhance your home’s exterior and curb appeal to buyers:

• Keep the lawn edged, cut and watered. 
• Regularly trim hedges and weed lawns and flowerbeds.
• Be sure your front door area has a “Welcome” feeling.
• Paint the front door.
• In spring and summer, add a couple of pots of showy annuals near your front entrance.
• In snowy areas, keep walks neatly cleared of snow and ice.
• Check foundation, steps, walkways, walls and patios for cracks and deterioration, and fix any problem areas.
• Remove and repaint any peeling paint on doors and windows.
• Clean and align gutters.
• Inspect and clean the chimney.
• Repair and replace loose or damaged roof shingles.
• Repair and repaint loose siding and caulking.
• Reseal old asphalt.
• Keep the garage door closed.
• Store RVs and old cars elsewhere while the house is on the market.

Maximizing Interior Appeal

You want your home to look as spacious, bright and clean as possible. Also the home should look neutral – without a lot of your personal and sentimental objects - so buyers can begin to imagine living there.

Here are some tips to enhance your home’s interior appeal to buyers:

• Give every room in the house a thorough cleaning and remove all clutter. This alone will make your house appear bigger and brighter. Some homeowners with crowded rooms actually rent storage garages and move half their furniture out, creating a sleeker, more spacious look.
• Use a professional cleaning service every few weeks while the house is on the market.
• Remove the less frequently used, and even daily-used items from kitchen counters, closets, basement and attic to make these areas more inviting.
• Make sure that table tops, dressers and closets are free of clutter.
• Pay special attention to the kitchen and bathrooms: they should look as modern, bright and fresh as possible. It is essential for them to be clean and odor free.
• Repair dripping faucets and showerheads.
• Buy showy new towels for the bathroom, and put them out only for showings.
• Spruce up a kitchen in need of more major remodeling by installing new curtains and cabinet knobs, or applying a fresh coat of neutral paint.
• Clean walls and doors of smudges and scuff marks.
• If necessary, repaint dingy, soiled or strongly-colored walls with a neutral shade of paint, such as off-white or beige. The same neutral scheme can be applied to carpets and linoleum.
• Check for cracks, leaks and signs of dampness in the attic and basement, and fix any problem areas.
• Seal basement walls if there are any signs of dampness or leakage.
• Repair cracks, holes or damage to plaster, wallboard, wallpaper, paint and tiles.
• Replace broken or cracked windowpanes, moldings and other woodwork.
• Inspect and repair the plumbing, heating, cooling and alarm systems.

The Basics of Marketing Your Home

Your REALTOR^®’s marketing efforts and considerations will include advertising, showing the property, how long the house has been on the market and whether you’re buying another home. Your home should be listed, whenever possible, through a Multiple Listing Service (MLS).

Advertising and Promotion

Properties are commonly advertised through real estate agent Web sites, Internet home search/listing services, classified advertising and real estate guides. Promotion efforts through office and MLS tours are a good way of getting other buyer agents to view your home and to promote it to the buyers they are working with.

Even with all these advertising avenues, ” For Sale” signs on front lawns are still remarkably effective. Many REALTORS^® promote their Web sites on the sign and use brochure boxes with the signs to market the property. When appropriate, and with your permission, your REALTOR^® may send a mailing about your property to neighbors. Sometimes one of them has a friend or relative who always wanted to live near them. You never know how far reaching the benefits of word-of-mouth advertising by friends, relatives and neighbors can be.

Showings and Open Houses

To prepare your home for viewing, make it as bright, clean, cheerful and serene as possible. Always look at your home from the buyer’s point of view. Your REALTOR^® will probably find a tactful way to suggest that you be absent while the house is being shown to prospective buyers, because your presence will inhibit their actions and conversations. They won’t feel free to open closets and cabinets, test out the plumbing and discuss their observations objectively as they walk through the house. It goes without saying that your children and pets should not be on the premises either.

If your REALTOR^® has scheduled an open house, you may want to notify the neighbors, and assure them that they’ll be welcome. They’ll jump at the chance to poke around in your house, and sometimes they can turn up a buyer among their friends.

Quick tips for showings and open houses:

• Clean or replace dirty or worn carpets.
• Open all curtains and blinds.
• Replace any burned out light bulbs and turn on all lights.
• Clear all clutter.
• Clear all countertops.
• Wash and put away any dirty dishes.
• Set the dining room or kitchen table if you have particularly nice linen or china.
• Simmer a few drops of vanilla on the stove.
• Put on soft music.
• Burn wood in the fireplace on cold days, otherwise, clean the fireplace.
• Put fresh towels in the bathroom.
• Take any laundry out of the washer and dryer.
• Leave the house so your REALTOR^® is free to deal with prospective buyers in a professional manner.
• Put pets in cages or take them to a neighbor.

How Long Has Your House Been on the Market?

Professional appraisers sum up their entire body of knowledge in three words: ” Buyers make value.” Your home is worth as much as a buyer will pay for it.

If your home has been on the market for months, it’s a clear message that the property may not be worth what you’re asking for it. This is particularly true if there haven’t been many prospects coming to see it. What you do at that point depends on whether you really need to sell, and whether you’re working with a time limit.

If you’re not really motivated to move soon, you can always wait - years if necessary - and hope inflation will catch up with the price you want. The problem is that in that time, your home begins to feel shopworn. Buyers become suspicious of a house that’s been for sale for a long time.

If you really do need to sell, with your REALTOR^® discuss a schedule for gradually dropping your price until you find a level that attracts buyers. There’s no point in saying, ” We simply can’t sell our house.” Anything will sell if the price is right.

If You’re Buying Another Home

You may wonder what will happen when you’re selling one home and buying another – how will all the details work out? This is a common situation and REALTORS^®, lawyers, and title and escrow companies have plenty of experience in arranging contracts and loans so that the two transactions dovetail smoothly.

And should you sell your home first then buy or buy first then sell? Ideally, it’s best to find a home you like and make an offer subject to selling your current home. This generally works in a normal market. However, in a “hot” market most sellers will not accept a “subject to sale” offer. In this case you need to sell your home first and then buy a new home in the interim period between selling and vacating your house.

If you find that you need to buy the next house before you’ve received the proceeds from the present one, lending institutions can sometimes make you a short-term ” bridge” loan to tide you over between the two transactions. Make sure you fully understand the exposure and emotional investment before proceeding with this type of loan.

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