Considering FSBO? 6 Things to Know About Selling Your Home Alone

If you are planning to sell your home in the near future, you may be considering selling “By Owner.” The idea of saving the money you might spend on broker’s commissions is attractive. After all, who wouldn’t want to have a few thousand more dollars to spend on their new home? However, selling your home by yourself is more time consuming and stressful than most people realize. One of the scenarios we agents see all too often is the homeowner that puts their house up for sale without planning realistically for the whole process. Then, after weeks or months of frustration, they call on a real estate agent to bail them out and get the job done quickly. So, before you put that FSBO sign in the yard, give some thought to these points from your local real estate experts:

1. You’ll need a fair market value on your home. You may think you know what your home should sell for, but often homeowners overprice their home, which will lead to more time on the market. Real estate agents have many tools available to evaluate the market in your area and give you an accurate sales price.

2. Buyers will lowball you on offers. Knowing you aren’t paying broker’s commissions, buyers will offer you well below your asking price, so you may not save as much as you hope. Research shows homes listed with a broker sell for more money and less time on the market than those sold by owner. Having an agent who is experienced in negotiating price and terms is well worth the cost.

3. You will need to coordinate your own showings and open houses. Do you have the flexibility to field calls and schedule showings at all hours of the day and night? Agents are used to working 24/7 and juggling ever-changing showing schedules. You may not be prepared for shifting your family’s schedule around daily so that someone can be home to show the house. How will you respond to strangers roaming through your home, closets and cabinets? It’s well known that homes show better when the seller is not home and the buyer can look freely, under the supervision of a real estate agent. 

4. You’ll need to advertise your home. When you list with an agent, your home goes into the Multiple Listing Service (MLS), where it is available to every agent in your area, and it will appear on Zillow.com, Realtor.com and other national sites. Additionally, your agent will market your home within their network of agents, on social media, in print media, mass mailings, local signage, open houses, or other sources. There are flat fee listing services that will put your home in the MLS system, but they don’t offer you the support and personalized services a dedicated agent can give you.

5. The process is just starting when the contract is signed. Getting under contract is the first step of many in the process, and things can, and often do, go wrong along the way. The escrow deposit, home inspection period, home appraisal, buyer’s financing approval, obtaining a clear title, and the buyer’s final walk-through are all hurdles that must be cleared. Each step requires a clear and legal paper trail that an agent knows how to properly execute to protect your rights as a seller. An agent can guide you through any complications that might arise and will be able to speak effectively on your behalf to the other parties working on your transaction.

6. We’re here for the long haul. As your real estate agent, we want to build a lasting relationship with you. We’ll be here after closing day to help you with any additional needs. Even if you are moving to another city, you can call on us to give you referrals for professionals in your new area.

Questions You Should Ask When Buying New Construction

There’s nothing like moving into a home that is truly new, with no smells, smudges or dust left behind by a previous owner. Even better is when you get to make your own custom selections. But buying from a builder is a different ball game and it’s important you know how to play. Consider these questions if you are considering new construction.

Should you use a real estate agent? I think so! The builder may have sales agents or an assistant that helps buyer’s through the process, but those people work for the builder. It’s always a good idea to have a professional advocating for you, and most builders will pay agents a commission for bringing the buyer. It’s important that your agent accompany you to the first visit to the model center or builders’ office so that representation is established.

Does the builder have a good reputation? We’ve all heard stories of builders who fail to deliver on their promises, using lower grade materials than quoted, or even disappearing before the work was completed. Check out your builder before signing anything. Find out if there are any complaints registered against them and ask for references from other homeowners. Find out if you can tour a model or a recently completed home, and bring someone who can judge the quality of the workmanship.

Should you use the builders’ lender? Many builders work with a preferred lender that offers attractive discounts on closing costs when you finance through them. It’s important to know if the lender is working as a referral or if the mortgage company is owned by the same company that is building your home. If your lender and builder both work for the same company, it’s a good idea to have an attorney review your contracts as an independent set of eyes. 

What are the deed restrictions and is there an HOA? Developers usually file a subdivision’s restrictive covenants when applying for approval to build the development. Any persons buying property in the development are bound to abide by these restrictions. You can get a copy of the deed restrictions from the builder. Also ask if there is, or will be, a homeowner’s association, what the HOA fees will be and what they cover. 

Can the builder charge extra for unexpected cost increases? Look over the builder’s contract carefully, or have an attorney do so, and note if there is an escalation clause that would allow the builder to pass cost increases onto you in the event that materials or labor costs increase during construction.

What warranties are provided? Normally a builder offers a warranty lasting from six month to two years, possibly longer for some items. You should know what is covered under the builder’s warranty and for how long. All the major structural items and mechanical systems are usually covered. Appliances are not, but they should come with a manufacturer’s warranty. Damage from weather, shrinkage or expansion of the home or foundation, and anything resulting from the homeowner’s failure to provide maintenance or from work done on the home after construction is not covered.

What is the timeline for completion? This will depend on whether the build is a production home, meaning the builder is building select models throughout a development, or if you have hired the builder to build a custom home. Production homes can be completed in three to four months, where custom homes usually take a minimum of six months. Regardless, the builder should be able to give you a timeline outlining each phase of construction. Factors affecting the timeline include weather, delays receiving building supplies, or the number of changes you make along the way.

Can you choose different finishes or colors? Again, it depends on the type of build. Certainly, if you are building a custom home, you can make as many changes as you are willing to pay for. But if the home is part of a development and the builder has color palettes and finishes chosen, there may be a limit to how much you can change. Often the builder will allow you to change paint colors, flooring, fixtures, tile or appliances, as long as what you choose is in line with the budget he set, and those items have not already been ordered. 

Can you get a credit if you buy your own appliances? If you already own your own appliances or prefer to choose something different from the builder’s choice, ask if you can be credited back the amount he had budgeted to pay for those items.

Is landscaping included? It’s no fun to get to the end of construction and find out there is no budget for landscaping. Find out what the builder plans to put in in terms of grass, trees and shrubbery. You may want to make additions or changes to his landscape plan.

7 Things You Can do to Qualify for a Mortgage

If you are thinking about buying a home this year and aren’t sure if you will qualify for a mortgage, there are several actions you can take to improve your chances of being approved for the amount you wish to borrow.

Lenders look at more than just your credit rating. They want to know that you have a steady income and are responsible with your money. Before you start home shopping, take some time to make sure you are fiscally stable.

1. Stay at your present job. The bank will want to see, at minimum, your last two tax returns. If you want to buy a home this year, it’s not the time to start over in a new industry. If you are just getting started in the professional world, you may need to work a while longer in order to show a history of steady income.

2. Put off buying a new car. Be careful about buying big-ticket items like a new car or boat or on credit until after you have closed on your home.

3. Pay down credit debt. If you are carrying a balance on credit cards, work hard to pay those down or off. Try not to use credit cards if you can’t pay the balance off monthly.

4. Pay your bills on time. Incurring late payments will reflect poorly on your credit report, so keep track of deadlines or set up automatic payments before they are due.  

5. Save up cash for a down payment. You have a better chance of being approved for a lower amount, so try to save up for a down payment to reduce the loan amount.

6. Say no to cosigning for others. Now is not the time to cosign on any loans with family members or friends. 

7. Throw those credit card offers away. Each time you apply for credit, the provider will pull your credit history, which affects your score.  

Tips for Virtual Home Shopping During COVID-19

The COVID-19 pandemic has changed so much of the way we live right now, home shopping included. With Stay at Home mandates in place in much of the country, we certainly can’t be going in and out of strangers’ homes touching doorknobs, light switches, and appliances. 

If you are needing to move soon, however, don’t despair! We can help you find a home and stay safely within the health guidelines. Here are some tips for home shopping during the pandemic.

1. Be selective about the homes you choose to visit. If you are the type of buyer that likes to cast a wide net and see everything in your price range, you may have to change your methodology. Try to narrow down your list of homes to visit to your very top choices. 

2. Start with a Virtual Tour. Many sellers are making virtual home tours available for buyers.The technology for virtual has improved greatly in the last couple of years, from simple videos to 3-D tours with floorplans that help you feel what it is really like to walk throughthe rooms.

3. Take a Facetime tour with your agent. If the seller doesn’t offer a virtual tour, have your agent do one for you. The seller may be more comfortable allowing one agent to come in than a group of people. Your agent, masked and gloved, can take a video for you or Facetime with you while you tour the home.

4. Scheduling a live showing. When you find a home you really must see in person, don’t bring anyone with you that isn’t vital to the decision-making process. Besides the fact that sellers probably don’t want a family of six parading around, with fewer distractions you can get a better look and eliminate the need to come back a second time. Take lots of pictures and measurements so you don’t miss anything. 

5. Put safety first when touring. You want to safeguard your own health, and you want the sellers to appreciate that you safeguard theirs as well. Have your agent arrange for the sellers to stay in one area of the home, or in the yard, while you look and ask the sellers to open all the doors, cabinets, and closets so you don’t have to touch anything. Wear a mask and use hand sanitizer before and after you enter the home. 
   
   We are showing and selling houses during the pandemic, so don’t let it discourage you from looking. Most of the process can be handled online now, and what cannot be done digitally we are taking care of with your health and safety in mind.

How to Move Safely During the Pandemic

With travel restrictions and social distancing in place, many people are postponing their moving plans. Governments are assisting by suspending foreclosures and eviction processes during this time.

Move.org recommends you consider these questions before planning your move:

1. Is COVID-19 spreading in the area where you’re going?

2. Will you or your travel companion(s) be in close contact with others during your trip?

3. Are you or your travel companion(s) more likely to get severe illness if you get COVID-19?

4. Do you have a plan for taking time off from work or school, in case you are told to stay home for 14 days for self-monitoring or if you get sick with COVID-19?

5. Do you live with someone who is older or has a serious, chronic medical condition?

6. Is COVID-19 spreading where I live when I return from travel?

If you can’t put off your move, don’t worry! You can get it done with some careful planning. Here are some steps you can take to move safely.

1. Talk to your moving company. Moving companies are taking several precautions to protect their customers, including following social distancing guidelines, providing estimates based on photos or videos of your belongings, sanitizing trucks and equipment, and wearing masks and gloves.

2. Use a packing calculator, like this one from Moving.com so you can purchase all your supplies in one trip to the store.

3. Do your own packing to reduce contact with moving personnel. The coronavirus can live on cardboard for 24 hours, so any recycled boxes you are using should have sat untouched for at least 24 hours before you use them.

4. If you are moving out of or into an apartment or condominium building, notify your neighbors so they can choose to avoid elevators, stairwells, or hallways during your move.

5. Use door stops to hold doors open to reduce toughing door handles. Have your pets secured so you don’t have to worry about the doors being left open.

6. Pack hand soap and paper towels in a marked box so they can be last on and first off the truck.

7. When you arrive at the new home, disinfect door handles, cabinet and drawers pulls, appliance handles, and light switches first, even if the home was professionally cleaned before you arrived.