Home Staging® is the process of preparing your home for sale. The purpose of Staging® is to make your home look like a model home, appealing to as many buyers as possible. It is simply a redesign that will show off your home's best features and minimize any flaws. Staging® is becoming very common these days and a variety of articles can be found in The New York Times, Washington Post, and Money Magazine. Even HGTV and TLC have homes shows dedicated to Staging® with "Designed to Sell" and "Sell This House".
Staging Criteria
By Barb Schwarz, The Creator of Home Staging®, the author of the boook
"Home Staging - The Winning Way to Sell Your House for More Money"
Things to keep in mind:
1. Buyers only know what they see, not how it's going to be
2. You can't sell it if you can't see it
3. You can't sell it if you can smell it
4. The way you live in your home and the way we market and sell your
house are two very different things.
When you get ready to place a home on the market for sale it becomes a product, just like any product on the shelves at your local store it has features and benefits, pluses and minuses and there are other products to compete with. To gain an edge in your marketplace you must be priced right and look better than the competition. Sometimes it's difficult to think of a home as a mere product, but it helps to think that way so that you can get top dollar for your property and sell it in a reasonable amount of time.
When you sell your home you're going to have to move. When you move you're going to have to pack. Most of the principles of Staging just mean that you're going to pack up some of your things early. It's a little bit of work, but you're going to have to do it anyway, so let's do it now so you can get top dollar for your property in your marketplace.
General Comments:
In every room...stand at the doorway and look at the room through the eyes of a buyer. What do you see? Be tough on yourself: What can you live without while your home is on the market?
Most carpets need to be cleaned. Have them professionally cleaned before coming on the market.
Check all light fixtures. Are they working properly? replace all burned out light bulbs. Look for dark hallways and corners and increase the wattage of bulbs in those areas. Make sure there are lamps with adequate bulbs in dark corners that are turned on for showings.
Repair and repaint cracks on all walls and ceilings.
Repair or replace broken light switches and switch plates. Clean any dirty areas around them.
Keep all curtains and blinds open during the day to let light and Check all light fixtures. Are they working properly? replace all burned out light bulbs. Look for dark hallways and corners and increase the wattage of bulbs in those areas.
Make sure there are lamps with adequate bulbs in dark corners that are turned on for showings.
Repair and repaint cracks on all walls and ceilings.
Repair or replace broken light switches and switch plates. Clean any dirty areas around them.
Keep all curtains and blinds open during the day to let light and views.
The extra cost of additional heating or air conditioning is a necessary cost of selling.
Reduce the number of pillows on couches to zero or two. Remove all afghans and blankets.
Pack up all valuable items to protect them. If necessary, take them to a safe deposit box.
Take a hard look at those beloved houseplants. In most cases they need to be pruned and/or the number of plants reduced to create more space. If plants don't look healthy and are just barely clinging to life give them away.
Fireplaces need to be cleaned out. Glass doors should be cleaned. Mantels and hearths need to be cleared off except for a very few necessary items.
To create more space you may want to remove a chair, a loveseat or other pieces of furniture.(Remember the model home!)
Pack up all collections (You're going to need to pack them up sooner or later). They become a distraction for buyers from the desired focal point...your home.
Reduce the number of books on bookshelves. Pack up extra books early!
Reduce the number of family pictures on shelves, pianos, and tables.
Reduce the number of wall hung photos and paintings in every room to one large piece on a wall or a small group of three. Make sure they are hung at eye level.
Keep soft music playing at all times for showings. Easy-listening or light jazz, not hard rock or funeral music.
Be sensitive to odors, because your buyers are! Excessive cooking or smoking odors, dog or cat odors, baby, laundry and mildew odors will turn off buyers. If there is a challenge with odors in your home use room deodorants or disinfectant sprays and keep windows cracked open for ventilation even in very hot or cold weather. (There are great products in pet stores for pet odors, and many professional carpet cleaners have special ozone machines that can really help with difficult odors.) You can't sell it if you can smell it!
Wash all windows and make sure they operate freely. If the seal is broken on a double-pane window, replace it now.
Repair items that are broken. This will show that your home is well-taken-care-of. In most cases, buyers will ask for them to be repaired anyway, so do it now.
Don't be afraid to move furniture from room to room. That extra chair from the living room or dining room may just look great in the master bedroom.
In general pack up the little things. Little things create clutter and they need to be packed up anyway, so pack them up now.
Home Staging Guidlines Inside The House
Living Room
Clear off all coffee tables and end tables to just 2 or 3 magazines and one nice vase or statuary.
Remove all ashtrays.
Family Room, Den, Bonus Room, or Rec Room
Same as Living Room
Dining Room
Clear off dining room table except for one nice centerpiece.
Remove tablecloths from table.
Remove extra leaves from the table to make the room look bigger.
Remove extra dining room chairs if they crowd the table or fill up the corners of the room. Four or six chairs are plenty. It will make the room look bigger and you can put the extra chairs in the garage or a storage unit.
See the Living Room section above concerning removing or reducing the number of items, valuable items, and collections. It all applies here too, especially in a buffet.
Kitchen
The main question in the kitchen is...What can you live without? Clear off counters leaving only a very few items that you have to use on a daily basis. Everything else should be kept off the counters to create space. Most homes have far too many small appliances and other items out that should be stored out of sight. Leave out a few large decorative items like a bowl of fruit or a basket with bread in it.
Repair any tile or Formica counter tops and edges that have been damaged or come unglued.
Clean tile grout with bleach if it is stained.
Remove all magnets, photos, children's drawings, etc., from the front of the refridgerator. If there are a couple of truly necessary items put them on the side of the refridgerator.
Clean the stove top and oven. Replace old burner pans if they are badly stained. Clean all exhaust fans, filters, and hoods.
Clean the kitchen floor and keep it clean for showings.
Keep the kitchen sink clean and empty on a daily basis.
Make sure the kitchen faucet is working smoothly without drips and that it is clean.
Clear everything off the window ledge above the kitchen sink.
remember to pack up the collections in the kitchen too. Pack up your antique plate collection or whatever will distract buyers and take up space.
Some kitchens have too many scatter rugs in them. Too many rugs make a room look smaller. If space allows, one large Oriental rug in the middle of the kitchen looks great.
Empty the garbage regularly to prevent kitchen odors.
Move dog and cat dishes so that they don't interfere with buyers walking around the room
Master Bedroom
Make the bed every day.
Invest in a new bedspread if necessary.
Clear off bedside tables and chest of drawers except for a very few necessary items.(see Living Room coffee and end tables)
Store extra books and magazines underneath the bed.
Keep closet doors closed. If you have a walk-in closet keep the floor clean and free of laundry and clutter items, and collections. It all applies here too, especially in a buffet.
If you have a clock radio keep it playing soft music during showings.
Reduce the number of photos on tables and chest of drawers to a minimum.
Hallways
Remove plastic runners on carpet or hardwood floors.
Additional Bedrooms
In children's rooms take down all the posters except for one favorite over the bed. Repair nail holes and paint walls. (See Master Bedroom guideline)
Laundry Room
Put soaps & cleaners in a cupboard or reduce the number & organize them neatly on one shelf.
Just like in the kitchen, keep counters and sinks clean and empty.
Get rid of excess hangers and hanging laundry. If you have a drying area replace all those miscellaneous hangers with one style of white plastic hangers.
Make sure that light bulbs are working and have adequate wattage. Many laundry rooms are too dark and need to be brighter.
Bathrooms
Clear off counters. Reduce toiletries down to a decorative few (3-6) and consolidate them on a tray or decorative basket. Put everything else in drawers or cabinets.
Replace that ugly dirty hand soap with a neat bottle of liquid soap.
Coordinate all towels with one or two colors. Fold in thirds and hang neatly every day. New towels can be purchased very inexpensively if the ones you have don't match.
Clear everything out of the shower and tub except for one bottle of liquid soap and one shampoo.
Clean or replace the shower curtain. Keep shower curtains drawn at all times.
One common problem in a lot of bathrooms is cracking or peeling just above the top of the shower tile or tub enclosure where it meets the dry wall or ceiling. Repair using caulking and paint or install wood trim coated in polyurethane.
Get rid of mold and stains throughout bathroom, especially in the shower and bathtub area.
Many tubs and showers need a fresh new bead of silicone caulking around the edges to make them look neat and clean.
Take all cloth toilet lid covers and water closet covers off. Keep toilet lids down every day.
Scatter rugs in front of sink and toilet and shower make the room look small. Use one larger rug in the middle of the room or none at all.
Hide all cleaning supplies and the garbage can under the sink or out of the line of sight.
Closets
Make sure you can open the door freely without something falling out on a prospective buyer.
Garage or Carport
Carports have to be completely cleaned out...everything!
Garages should be swept out and organized. If you have to use part or the entire garage for storage that's fine, just keep it neat.
Always keep garage doors down while your home is on the market.
If you're not using the garage for storage, keep cars in the garage and not in the driveway.
Move Boats & RVs to a storage facility or neighbor's home several homes away until your home sells.
Home Staging Guidlines Outside of House
The first impression when a buyer drives up to your home is critical. Walk across the street and look at it through the eyes of a buyer. Be tough on yourself. What do you see?
Trim and House Paint
Take a hard look at the front door and trim. Give special attention to this because this is where buyers will get their first opportunity to make a close inspection of your home. Does it need repainting or staining?
Repainting the doors and trim to help make the house look crisp and in good condition is one of the least expensive things you can do to dress up a home.
Decks, Proches, & Patios
Sweep all decks, walks, porches, and patios and keep them swept.
Remove any moss from all decks, walks, and patios.
Decks should be pressure-washed, stained, or painted if they are in need of it.
Reduce clutter on decks, porches, and patios so that they look bigger.
Get rid of old flowerpots, barbecues, charcoal, planters, toys, construction materials, and excess furniture.
If you have outdoor furniture create one simple 'room setting' of clean furniture that will remind buyers of the usefulness of the space.
Landscaping
Plants are like children...they grow up so fast! First they are little and cute, then they seem just right, and all of a sudden they're so big we hardly know how to take care of them! You can't trim the kids, but you can trim your plants. If they need it, do it now.
Rake and weed flower beds. If possible, spread new mulch such as beauty bark, pine needles, gravel, or lava rock to put a finishing touch on the landscaping.
Remove and, if needed, replace all dead plants.
Mow lawn and keep it mowed on a weekly basis during the growing season.
Trim branches around the roof line to prevent animals, insects, & foliage from getting on the roof.
Front Yard
'Curb appeal' is important. Has your landscaping overgrown the house? Remember..."You can't sell it if you can't see it!" Cut back all shrubs to window height that block light or view from windows. (If you're afraid they won't bloom next year, don't worry...you won't be there!)
Move all children's toys to the back yard.
Clean and sweep paved driveways. Rake, weed, or re-gravel gravel driveways.
Back Yard
Remove any extra items from the yard, such as tools, piles of lumber, or auto parts.
Children's toys should all go in one area in the backyard.
Repair any cracks in the ceilings and walls.
Clear any drains.
Fences
Repair broken fences and paint if necessary.
Roof
Clean all debris and moss from roof and gutters.
Before All Showings
Set the stage: Lights, Music, Action!
Open all curtains and blinds, unless otherwise advised.
Turn all lights and lamps.
Close garage doors.
Make sure all toilet lids are down.
If it's hot outside, keep your house cool on the inside. If it's cold outside, keep the heat on inside your house even if it's vacant. Buyers won't stay in a house that's too hot or cold.
Allow potential buyers privacy as they view your home. It is best to leave altogether, work in the yard, or take a nice long walk.
Remember, the way you live in a home and the way you market and sell your house are two different things. Try to look at your house through a buyer's eyes, as though you have never seen it before.
If you would like to sell or buy a house in the Greater Houston area, or if you have any questions regarding Houston Real Estate please contact Irena Gorski 281-610-4524, http://irenagorski.com/
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Showing posts with label Houston home sellers. Show all posts
Showing posts with label Houston home sellers. Show all posts
Monday, July 25, 2011
Wednesday, March 02, 2011
10 Common Errors Home Owners Make When Filing Taxes
By: G. M. Filisko
Published: January 25, 2011
Source: HouseLogic.com
Don’t rouse the IRS or pay more taxes than necessary—know the score on each home tax deduction and credit.
As you calculate your tax returns, consider each home tax deduction and credit you are—and are not—entitled to. Running afoul of any of these 10 home-related tax mistakes—which tax pros say are especially common—can cost you money or draw the IRS to your doorstep.
Sin #1: Deducting the wrong year for property taxes
You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind—that is, you’re not billed for 2010 property taxes until 2011. But that’s irrelevant to the feds.
Enter on your federal forms whatever amount you actually paid in 2010, no matter what the date is on your tax bill. Dave Hampton, CPA, tax manager at the Cincinnati accounting firm of Burke & Schindler, has seen home owners confuse payments for different years and claim the incorrect amount.
Sin #2: Confusing escrow amount for actual taxes paid
If your lender escrows funds to pay your property taxes, don’t just deduct the amount escrowed, says Bob Meighan, CPA and vice president at TurboTax in San Diego. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two.
For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200. Your lender will send you an official statement listing the actual taxes paid. Use that. Don’t just add up 12 months of escrow property tax payments.
Sin #3: Deducting points paid to refinance
Deduct points you paid your lender to secure your mortgage in full for the year you bought your home. However, when you refinance, says Meighan, you must deduct points over the life of your new loan. If you paid $2,000 in points to refinance into a 15-year mortgage, your tax deduction is $133 per year.
Sin #4: Failing to deduct private mortgage insurance
Lenders require home buyers with a downpayment of less than 20% to purchase private mortgage insurance (PMI). Avoid the common mistake of forgetting to deduct your PMI payments. However, note the deduction begins to phase out once your adjusted gross income reaches $100,000 and disappears entirely when your AGI surpasses $109,000.
Sin #5: Misjudging the home office tax deduction
This deduction may not be as good as it seems. It often doesn’t amount to much of a deduction, has to be recaptured if you turn a profit when you sell your home, and can pique the IRS’s interest in your return. Hampton’s advice: Claim it only if it’s worth those drawbacks.
Sin #6: Missing the first-time home buyer tax credit
If you met the midyear 2010 deadlines, don’t forget to take this tax credit into account when filing.
Even if you missed the 2010 deadlines, you still might be in luck: Congress extended the first-time home buyer credit for military families and other government workers on assignment outside the United States. If you meet the criteria, you have until June 30, 2011, to close on your first home and qualify for the tax credit of up to $8,000.
Sin #7: Failing to track home-related expenses
If the IRS comes a-knockin’, don’t be scrambling to compile your records. Many people forget to track home office and home maintenance and repair expenses, says Meighan. File away documents as you go. For example, save each manufacturer’s certification statement for energy tax credits, insurance company statements for PMI, and lender or government statements to confirm property taxes paid.
Sin #8: Forgetting to keep track of capital gains
If you sold your main home last year, don’t forget to pay capital gains taxes on any profit. However, you can exclude $250,000 (or $500,000 if you’re a married couple) of any profits from taxes. So if you bought a home for $100,000 and sold it for $400,000, your capital gains are $300,000. If you’re single, you owe taxes on $50,000 of gains. However, there are minimum time limits for holding property to take advantage of the exclusions, and other details. Consult IRS Publication 523.
Sin #9: Filing incorrectly for energy tax credits
If you made any eligible improvement, fill out Form 5695. Part I, which covers the 30%/$1,500 credit for such items as insulation and windows, is fairly straightforward. But Part II, which covers the 30%/no-limit items such as geothermal heat pumps, can be incredibly complex and involves crosschecking with half a dozen other IRS forms. Read the instructions carefully.
Sin #10: Claiming too much for the mortgage interest tax deduction
You can deduct mortgage interest only up to $1 million of mortgage debt, says Meighan. If you have $1.2 million in mortgage debt, for example, deduct only the mortgage interest attributable to the first $1 million.
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.
If you would like to sell or buy a house in the Greater Houston area, or if you have any questions regarding Houston Real Estate please contact Irena Gorski 281-610-4524, http://IrenaGorski.com
Published: January 25, 2011
Source: HouseLogic.com
Don’t rouse the IRS or pay more taxes than necessary—know the score on each home tax deduction and credit.
As you calculate your tax returns, consider each home tax deduction and credit you are—and are not—entitled to. Running afoul of any of these 10 home-related tax mistakes—which tax pros say are especially common—can cost you money or draw the IRS to your doorstep.
Sin #1: Deducting the wrong year for property taxes
You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind—that is, you’re not billed for 2010 property taxes until 2011. But that’s irrelevant to the feds.
Enter on your federal forms whatever amount you actually paid in 2010, no matter what the date is on your tax bill. Dave Hampton, CPA, tax manager at the Cincinnati accounting firm of Burke & Schindler, has seen home owners confuse payments for different years and claim the incorrect amount.
Sin #2: Confusing escrow amount for actual taxes paid
If your lender escrows funds to pay your property taxes, don’t just deduct the amount escrowed, says Bob Meighan, CPA and vice president at TurboTax in San Diego. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two.
For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200. Your lender will send you an official statement listing the actual taxes paid. Use that. Don’t just add up 12 months of escrow property tax payments.
Sin #3: Deducting points paid to refinance
Deduct points you paid your lender to secure your mortgage in full for the year you bought your home. However, when you refinance, says Meighan, you must deduct points over the life of your new loan. If you paid $2,000 in points to refinance into a 15-year mortgage, your tax deduction is $133 per year.
Sin #4: Failing to deduct private mortgage insurance
Lenders require home buyers with a downpayment of less than 20% to purchase private mortgage insurance (PMI). Avoid the common mistake of forgetting to deduct your PMI payments. However, note the deduction begins to phase out once your adjusted gross income reaches $100,000 and disappears entirely when your AGI surpasses $109,000.
Sin #5: Misjudging the home office tax deduction
This deduction may not be as good as it seems. It often doesn’t amount to much of a deduction, has to be recaptured if you turn a profit when you sell your home, and can pique the IRS’s interest in your return. Hampton’s advice: Claim it only if it’s worth those drawbacks.
Sin #6: Missing the first-time home buyer tax credit
If you met the midyear 2010 deadlines, don’t forget to take this tax credit into account when filing.
Even if you missed the 2010 deadlines, you still might be in luck: Congress extended the first-time home buyer credit for military families and other government workers on assignment outside the United States. If you meet the criteria, you have until June 30, 2011, to close on your first home and qualify for the tax credit of up to $8,000.
Sin #7: Failing to track home-related expenses
If the IRS comes a-knockin’, don’t be scrambling to compile your records. Many people forget to track home office and home maintenance and repair expenses, says Meighan. File away documents as you go. For example, save each manufacturer’s certification statement for energy tax credits, insurance company statements for PMI, and lender or government statements to confirm property taxes paid.
Sin #8: Forgetting to keep track of capital gains
If you sold your main home last year, don’t forget to pay capital gains taxes on any profit. However, you can exclude $250,000 (or $500,000 if you’re a married couple) of any profits from taxes. So if you bought a home for $100,000 and sold it for $400,000, your capital gains are $300,000. If you’re single, you owe taxes on $50,000 of gains. However, there are minimum time limits for holding property to take advantage of the exclusions, and other details. Consult IRS Publication 523.
Sin #9: Filing incorrectly for energy tax credits
If you made any eligible improvement, fill out Form 5695. Part I, which covers the 30%/$1,500 credit for such items as insulation and windows, is fairly straightforward. But Part II, which covers the 30%/no-limit items such as geothermal heat pumps, can be incredibly complex and involves crosschecking with half a dozen other IRS forms. Read the instructions carefully.
Sin #10: Claiming too much for the mortgage interest tax deduction
You can deduct mortgage interest only up to $1 million of mortgage debt, says Meighan. If you have $1.2 million in mortgage debt, for example, deduct only the mortgage interest attributable to the first $1 million.
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.
If you would like to sell or buy a house in the Greater Houston area, or if you have any questions regarding Houston Real Estate please contact Irena Gorski 281-610-4524, http://IrenaGorski.com
Thursday, September 02, 2010
Sunday, February 14, 2010
New Improved Homebuyer Tax Credit
How to Get the First-Time Home Buyer Tax Credit
You've decided to purchase a home and take advantage of the Home Buyer Tax Credit. Here's what you have to do to get your benefit:
•Close on your home purchase by July 1, 2010
•Ensure that you are a qualified first-time buyer under IRS guidelines
•To prevent fraud, you are required to provide documentation proving that you purchased a home
•Be at least 18 yeas old to claim the credit
•Fill out Form 5405 to determine the amount of your available credit
If you would like to purchase a house in Greater Houston Area and take advantage
of Home Buyer Tax Credit please contact Houston Realtor® Irena Gorski 281-610-4524, http:IrenaGorski.com
Thursday, December 10, 2009
Wednesday, December 02, 2009
10 Common Selling Mistakes while selling your house
Mistake #1 -- Placing the Wrong Price on Your Property
Every seller obviously wants to get the most money for his or her product. Ironically, the best way to do this is NOT to list your product at an excessively high price! A high listing price will cause some prospective buyers to lose interest before even seeing your property. Also, it may lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price.
Mistake #2 -- Mistaking Re-finance Appraisals for the Market Value
Unfortunately, a re-finance appraisal may have been stated at an untruthfully high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. The market value of your home could actually be lower. Your best bet is to ask your realtor for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.
Mistake #3 -- Failing to "Showcase"
In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant as possible. Make necessary repairs. Clean. Make sure everything functions and looks presentable. A poorly kept home in need of repairs will surely lower the selling price of your property and will even turn away some buyers.
Mistake #4 - Trying to "Hard Sell" While Showing
Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don't try haggling or forcefully selling. Instead, be friendly and hospitable. A good idea would be to point out any subtle amenities and be receptive to questions.
Mistake #5 - Trying to Sell to Lookers
A prospective buyer who shows interest because of a "for sale" sign he saw may not really be interested in your property. Often buyers who do not come through a realtor are a good 6-9 months away from buying, and they are more interested in seeing what is out there than in actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet. They may still even be unsure as to whether or not they want to relocate.
Your realtor should be able to distinguish realistic potential buyers from mere lookers. Realtors should usually find out a prospective buyer's savings, credit rating, and purchasing power in general. If your realtor fails to find out this pertinent information, you should do some investigating and questioning on your own. This will help you avoid wasting valuable time marketing towards the wrong people. If you have to do this work yourself, consider finding a new realtor.
Mistake #6 -- Being Ignorant of Your Rights & Responsibilities
It is extremely important that you are well-informed of the details in your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what your are responsible for before signing the contract. Can the property be sold "as is"? How will deed restrictions and local zoning laws affect your transaction? Not knowing the answers to these kind of questions could end up costing you a considerable amount of money.
Mistake #7 - Signing a Contract with No Escape
Hopefully you will have taken the time to choose the best realtor for you. But sometimes, as we all know, circumstances change. Perhaps you misjudged your realtor, or perhaps the realtor has other priorities on his or her mind. In any case, you should have the right to fire your agent. Also, you should have the right to select another agent of your choosing. Many real estate companies will simply replace an agent with another one, without consulting you. Be sure to have control over your situation before signing a real estate contract.
Mistake #8 - Improperly Filling out Sellers Disclosure Forms
Not properly disclosing all known material facts about the house in the Sellers Disclosure,
leads to significant delays in the sale process and to risk of lawsuits in the future, even
after the closing.
Mistake #9 - Limiting the Marketing and Advertising of the Property
There are two obvious marketing tools that nearly every agent uses: open houses and classified ads. Unfortunately, these two tools are rather ineffective. Less than 1% of homes are sold at open houses, and less than 3% are sold because of classified ads. In fact, realtors often use open houses to attract future prospects, not to sell the house.
Your realtor should employ a wide variety of marketing techniques. He should be able to tell you, how he is promoting and marketing himself and his business, and how he is going to MARKET YOUR HOUSE. Ask him to show you samples of his, and his company, marketing tools / copies of website pages, brochures, mail outs, information about mass media advertising, number and quality of pictures he is placing on MLS etc./ Chances are, the way real estate agent is marketing himself and other houses, is the very same way he will market your house. Keep in mind, the bigger variety and the better quality of marketing tools and techniques, the bigger are chances to have your house SOLD. This is essential in the process of selling your house in today‘s very COMPETITIVE real estate market.
Mistake #10 - Choosing the Wrong Realtor®
Selling your home could be the most important financial transaction in your lifetime. As a result, it is extremely important that you select the realtor, that is best for you. Sellers often are trying to save the
money, and are choosing the agent, who is willing to accept lower commission. Lower commission usually means much less, or no money for marketing your house. It also leads to the following question: will the realtor, who is not able to negotiate his own commission, be able to negotiate the best price for your house? Overpriced at the beginning, without right marketing tools and techniques, houses are sitting on the market for extremely long time. That means in fact, that instead of saving money with agreement for lower commission, sellers are loosing incomparably bigger amounts of money. When house is on the market for extended period of time, they have to do monthly mortgage payments, taxes, property insurance etc., and when it is finally sold, usually for less than original listing price, sellers are never able to recover the money they lost in this process.
Take your time when selecting a real estate agent. Interview several agents; ask them key questions. If you want to make your selling experience the best it can be, it is crucial that you select the best agent for you.
Every seller obviously wants to get the most money for his or her product. Ironically, the best way to do this is NOT to list your product at an excessively high price! A high listing price will cause some prospective buyers to lose interest before even seeing your property. Also, it may lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price.
Mistake #2 -- Mistaking Re-finance Appraisals for the Market Value
Unfortunately, a re-finance appraisal may have been stated at an untruthfully high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. The market value of your home could actually be lower. Your best bet is to ask your realtor for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.
Mistake #3 -- Failing to "Showcase"
In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant as possible. Make necessary repairs. Clean. Make sure everything functions and looks presentable. A poorly kept home in need of repairs will surely lower the selling price of your property and will even turn away some buyers.
Mistake #4 - Trying to "Hard Sell" While Showing
Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don't try haggling or forcefully selling. Instead, be friendly and hospitable. A good idea would be to point out any subtle amenities and be receptive to questions.
Mistake #5 - Trying to Sell to Lookers
A prospective buyer who shows interest because of a "for sale" sign he saw may not really be interested in your property. Often buyers who do not come through a realtor are a good 6-9 months away from buying, and they are more interested in seeing what is out there than in actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet. They may still even be unsure as to whether or not they want to relocate.
Your realtor should be able to distinguish realistic potential buyers from mere lookers. Realtors should usually find out a prospective buyer's savings, credit rating, and purchasing power in general. If your realtor fails to find out this pertinent information, you should do some investigating and questioning on your own. This will help you avoid wasting valuable time marketing towards the wrong people. If you have to do this work yourself, consider finding a new realtor.
Mistake #6 -- Being Ignorant of Your Rights & Responsibilities
It is extremely important that you are well-informed of the details in your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what your are responsible for before signing the contract. Can the property be sold "as is"? How will deed restrictions and local zoning laws affect your transaction? Not knowing the answers to these kind of questions could end up costing you a considerable amount of money.
Mistake #7 - Signing a Contract with No Escape
Hopefully you will have taken the time to choose the best realtor for you. But sometimes, as we all know, circumstances change. Perhaps you misjudged your realtor, or perhaps the realtor has other priorities on his or her mind. In any case, you should have the right to fire your agent. Also, you should have the right to select another agent of your choosing. Many real estate companies will simply replace an agent with another one, without consulting you. Be sure to have control over your situation before signing a real estate contract.
Mistake #8 - Improperly Filling out Sellers Disclosure Forms
Not properly disclosing all known material facts about the house in the Sellers Disclosure,
leads to significant delays in the sale process and to risk of lawsuits in the future, even
after the closing.
Mistake #9 - Limiting the Marketing and Advertising of the Property
There are two obvious marketing tools that nearly every agent uses: open houses and classified ads. Unfortunately, these two tools are rather ineffective. Less than 1% of homes are sold at open houses, and less than 3% are sold because of classified ads. In fact, realtors often use open houses to attract future prospects, not to sell the house.
Your realtor should employ a wide variety of marketing techniques. He should be able to tell you, how he is promoting and marketing himself and his business, and how he is going to MARKET YOUR HOUSE. Ask him to show you samples of his, and his company, marketing tools / copies of website pages, brochures, mail outs, information about mass media advertising, number and quality of pictures he is placing on MLS etc./ Chances are, the way real estate agent is marketing himself and other houses, is the very same way he will market your house. Keep in mind, the bigger variety and the better quality of marketing tools and techniques, the bigger are chances to have your house SOLD. This is essential in the process of selling your house in today‘s very COMPETITIVE real estate market.
Mistake #10 - Choosing the Wrong Realtor®
Selling your home could be the most important financial transaction in your lifetime. As a result, it is extremely important that you select the realtor, that is best for you. Sellers often are trying to save the
money, and are choosing the agent, who is willing to accept lower commission. Lower commission usually means much less, or no money for marketing your house. It also leads to the following question: will the realtor, who is not able to negotiate his own commission, be able to negotiate the best price for your house? Overpriced at the beginning, without right marketing tools and techniques, houses are sitting on the market for extremely long time. That means in fact, that instead of saving money with agreement for lower commission, sellers are loosing incomparably bigger amounts of money. When house is on the market for extended period of time, they have to do monthly mortgage payments, taxes, property insurance etc., and when it is finally sold, usually for less than original listing price, sellers are never able to recover the money they lost in this process.
Take your time when selecting a real estate agent. Interview several agents; ask them key questions. If you want to make your selling experience the best it can be, it is crucial that you select the best agent for you.
Friday, November 13, 2009
Fraudulent 'Mortgage Rescue' Firm in Texas Faces Penalties
They posed as mortgage brokers, claiming they could help distressed homeowners who were behind on their mortgage payments. These scam artists collected fees but never followed through with their promises, and Texas Attorney General Greg Abbott is now taking legal action against them.
For these “services” victims were required to pay at least $1,000 in advance fees and were told to have no contact with their original mortgage servicers. They were also told to refrain from making future payments to their current mortgage servicer.
After collecting fees, the Baileys neglected to provide measurable foreclosure relief. No negotiations were made with homeowners original mortgage servicers, causing many to lose their homes to foreclosure action. In late October, the Baileys received a cease-and-desist order from the Department of Savings and Mortgage Lending, but the men continued to unlawfully operate their businesses.
Judge James M. Staton, from the 134th District of Dallas County, granted an agreed temporary injunction barring the Baileys from operating their businesses and required the defendants to reimburse all fees to the victims of their fraud or place these monies in a trust pending final judgment.
In addition to this restitution, the attorney general is seeking civil penalties of up to $20,000 per violation of the Texas Deceptive Trade Practices Act and is requiring the payment of all attorneys’ fees.
The defendants also allegedly violated other provisions of the Texas Business and Commerce Code by failing to provide homeowners with a required option to cancel the in-residence solicitation and violated the Texas Finance Code by failing to obtain a license.
From www.dsnews.com by Brittany Dunn
Call Irena Gorski for your Houston real estate needs 281-610-4524
You can search Over 40,000 Houston Real Estate Listings for Sale right now
For these “services” victims were required to pay at least $1,000 in advance fees and were told to have no contact with their original mortgage servicers. They were also told to refrain from making future payments to their current mortgage servicer.
After collecting fees, the Baileys neglected to provide measurable foreclosure relief. No negotiations were made with homeowners original mortgage servicers, causing many to lose their homes to foreclosure action. In late October, the Baileys received a cease-and-desist order from the Department of Savings and Mortgage Lending, but the men continued to unlawfully operate their businesses.
Judge James M. Staton, from the 134th District of Dallas County, granted an agreed temporary injunction barring the Baileys from operating their businesses and required the defendants to reimburse all fees to the victims of their fraud or place these monies in a trust pending final judgment.
In addition to this restitution, the attorney general is seeking civil penalties of up to $20,000 per violation of the Texas Deceptive Trade Practices Act and is requiring the payment of all attorneys’ fees.
The defendants also allegedly violated other provisions of the Texas Business and Commerce Code by failing to provide homeowners with a required option to cancel the in-residence solicitation and violated the Texas Finance Code by failing to obtain a license.
From www.dsnews.com by Brittany Dunn
Call Irena Gorski for your Houston real estate needs 281-610-4524
You can search Over 40,000 Houston Real Estate Listings for Sale right now
Saturday, October 31, 2009
Are you using videos to market your Houston home for sale?
Full motion, high definition videos of properties for sale like this one http://bit.ly/2S1KJr are in demand from home buyers and home sellers and are the future of real estate marketing. Yet it seems that not so many real estate professionals are using videos so far. Many agents are using slide shows or virtual tours and call them incorrectly as videos.Walk through Videos are the most effective way of giving maximum exposure to potential home buyers of properties for sale as 24/7 Open Houses. They are win-win tools for all parties involved:
For home sellers:
1. Give a maximum exposure for their houses for sale
2. More potential buyers "walk through" houses online before they actualy decide to go there
3. Save home sellers time since videos help eliminate actual showings just for lookers
4. Help sell houses faster
For home buyers:
1. Save time and fuel cost involved in driving to preview homes
2. Convenience, they can "walk through" houses online anytime, at their convenience from the comfort of their home
3. Help out of time buyers to "walk through" houses they are interested to buy without the expense of flying or driving
For real estate agents:
1. Save time and fuel cost involved in driving home buyers to preview houses, since buyers can decide which houses they really would like to go to and eliminate those not matching their interest.
2. Give maximum exposure to their listings and help them get more listings
Videos also help home buyers to preview neighborhoods before they decide to buy a house http://bit.ly/2poMKH
For home sellers:
1. Give a maximum exposure for their houses for sale
2. More potential buyers "walk through" houses online before they actualy decide to go there
3. Save home sellers time since videos help eliminate actual showings just for lookers
4. Help sell houses faster
For home buyers:
1. Save time and fuel cost involved in driving to preview homes
2. Convenience, they can "walk through" houses online anytime, at their convenience from the comfort of their home
3. Help out of time buyers to "walk through" houses they are interested to buy without the expense of flying or driving
For real estate agents:
1. Save time and fuel cost involved in driving home buyers to preview houses, since buyers can decide which houses they really would like to go to and eliminate those not matching their interest.
2. Give maximum exposure to their listings and help them get more listings
Videos also help home buyers to preview neighborhoods before they decide to buy a house http://bit.ly/2poMKH
Friday, September 25, 2009
"We Buy Houses" Scams. How to Spot Scams and How to Avoid Them.
There are many reasons why a home owner would want to sell a house fast. Job change, relocation, debt problems, divorce and inheritance are just a few. Unfortunately, people in need also tend to attract predators who have no problem profiting from someone else's misfortune.
If you're looking to sell a house fast, here are a few scams to be on the lookout for and how to avoid becoming a victim yourself.
Equity Scam
One of the most common types of "we buy houses" scams allows the "buyer" of the home to make off with most or all of your equity. It begins with you transferring your home's deed to the "buyer." The buyer may then have you make payments to him instead of the mortgage company, or he may have you move out so he can begin renting out the house.
There are several ways the buyer can then profit from this transaction. First, he receives some sort of payment every month — whether from you or from the renter. Second, he can use the equity in your home to secure home equity loans or other lines of financing. Third, he can simply resell the house without satisfying the outstanding mortgage.
Ultimately, once most of his profit is exhausted, he simply stops making payments on the mortgage and allows the home to go into foreclosure, because while he holds the deed to the home, he never assumed liability for the mortgage. As a result, you are left with a foreclosed home, no remaining equity and a significant black spot on your credit history.
Contract Bait and Switch
The contract "bait and switch" is a clever scheme that takes advantage of the trust between buyer and seller.
In one version of this scam, the home buyer inspects your house and makes a verbal offer that you accept. A few days later, he presents you with a written contract that he presents as "just a formal, legal version" of your verbal agreement. Because you believe it to be the same offer you had already agreed to, you simply skim it and sign on the dotted line.
In the time between signing and closing, he may also deliver one or more "minor changes" to the contract. He presents these as simply "a few tweaks" and nothing that really affects the original agreement.
At some point, though, possibly at the closing or even later, you discover that the last contract you signed actually bears little resemblance to the initial offer, and you are either stuck with a losing home sale or tangled in legal battles for months or even years to get out of the contract.
Liberian FSBO
This scam is an interesting twist on the Nigerian Scam or 419 Scam. In it, a person outside the U.S. contacts you after seeing your house on a For Sale By Owner site, telling you that he is looking to move to the U.S. soon and can pay cash for your home. His story is compelling to the point that you actually feel good about helping him out — not to mention being able to sell your home.
Ultimately, though, his only goal is to get you to transfer him money and/or to get access to your bank account so that he can transfer the funds himself before you realize what has happened. And because he is outside the U.S., recovering your money can be next to impossible.
How to Protect Yourself from Scams
If you need to sell a house fast, here are a few rules for protecting yourself from falling prey to a scam like these.
Only Work with Professionals
The best way to protect yourself from scams is to work only with real estate professionals. Never sign documents you don't understand. It is always recommended that you consult an attorney before you sign documents you do not understand. Make sure that closing takes place at the title company, and/or real estate attorney is involved (depending of the rules in the state where you live).
Check Out the Buyer
If you have any concerns about the buyer, don't hesitate to check them out. Contact your state Attorney General's office, your state's Real Estate Commission, or your District Attorney's Consumer Fraud Unit. If they are an established business, also check out the Better Business Bureau.
Always Understand What You're Signing
Not asking questions because you are afraid of looking stupid could end up costing you tens of thousands of dollars or more if you end up in a deal that wasn't what you thought it was. A lawyer or even your mortgage company can help you if you want professional advice from a third party. Never, ever sign a contract that you don't understand. It is always recommended that you consult an attorney before you sign documents you do not understand.
Get All Agreements in Writing
If a disagreement arises about a verbal agreement, the issue becomes your word against theirs and often must go to a court of law to be settled. Don't risk that. Insist that all terms be in writing, and don't agree to anything that isn't.
If something sounds too good to be true, it usually is. So don't get so emotionally tied up in the sale of your home that you abandon caution and logic.
If you're looking to sell a house fast, here are a few scams to be on the lookout for and how to avoid becoming a victim yourself.
Equity Scam
One of the most common types of "we buy houses" scams allows the "buyer" of the home to make off with most or all of your equity. It begins with you transferring your home's deed to the "buyer." The buyer may then have you make payments to him instead of the mortgage company, or he may have you move out so he can begin renting out the house.
There are several ways the buyer can then profit from this transaction. First, he receives some sort of payment every month — whether from you or from the renter. Second, he can use the equity in your home to secure home equity loans or other lines of financing. Third, he can simply resell the house without satisfying the outstanding mortgage.
Ultimately, once most of his profit is exhausted, he simply stops making payments on the mortgage and allows the home to go into foreclosure, because while he holds the deed to the home, he never assumed liability for the mortgage. As a result, you are left with a foreclosed home, no remaining equity and a significant black spot on your credit history.
Contract Bait and Switch
The contract "bait and switch" is a clever scheme that takes advantage of the trust between buyer and seller.
In one version of this scam, the home buyer inspects your house and makes a verbal offer that you accept. A few days later, he presents you with a written contract that he presents as "just a formal, legal version" of your verbal agreement. Because you believe it to be the same offer you had already agreed to, you simply skim it and sign on the dotted line.
In the time between signing and closing, he may also deliver one or more "minor changes" to the contract. He presents these as simply "a few tweaks" and nothing that really affects the original agreement.
At some point, though, possibly at the closing or even later, you discover that the last contract you signed actually bears little resemblance to the initial offer, and you are either stuck with a losing home sale or tangled in legal battles for months or even years to get out of the contract.
Liberian FSBO
This scam is an interesting twist on the Nigerian Scam or 419 Scam. In it, a person outside the U.S. contacts you after seeing your house on a For Sale By Owner site, telling you that he is looking to move to the U.S. soon and can pay cash for your home. His story is compelling to the point that you actually feel good about helping him out — not to mention being able to sell your home.
Ultimately, though, his only goal is to get you to transfer him money and/or to get access to your bank account so that he can transfer the funds himself before you realize what has happened. And because he is outside the U.S., recovering your money can be next to impossible.
How to Protect Yourself from Scams
If you need to sell a house fast, here are a few rules for protecting yourself from falling prey to a scam like these.
Only Work with Professionals
The best way to protect yourself from scams is to work only with real estate professionals. Never sign documents you don't understand. It is always recommended that you consult an attorney before you sign documents you do not understand. Make sure that closing takes place at the title company, and/or real estate attorney is involved (depending of the rules in the state where you live).
Check Out the Buyer
If you have any concerns about the buyer, don't hesitate to check them out. Contact your state Attorney General's office, your state's Real Estate Commission, or your District Attorney's Consumer Fraud Unit. If they are an established business, also check out the Better Business Bureau.
Always Understand What You're Signing
Not asking questions because you are afraid of looking stupid could end up costing you tens of thousands of dollars or more if you end up in a deal that wasn't what you thought it was. A lawyer or even your mortgage company can help you if you want professional advice from a third party. Never, ever sign a contract that you don't understand. It is always recommended that you consult an attorney before you sign documents you do not understand.
Get All Agreements in Writing
If a disagreement arises about a verbal agreement, the issue becomes your word against theirs and often must go to a court of law to be settled. Don't risk that. Insist that all terms be in writing, and don't agree to anything that isn't.
If something sounds too good to be true, it usually is. So don't get so emotionally tied up in the sale of your home that you abandon caution and logic.
Sunday, August 30, 2009
More About Foreclosure Rescue Scams
Houston homeowners (and not only Houston homeowners), be aware of Foreclosure Scams!
In addition to my previous blog regarding Foreclosure Scams, here is a very good article regarding this topic http://bit.ly/hI0LE
In addition to my previous blog regarding Foreclosure Scams, here is a very good article regarding this topic http://bit.ly/hI0LE
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