Top Means for Buyer Appeal

Do you have any advice for our sellers?

With spring on the way and the housing inventory's impending flooding, I wanted to share some tips on what sellers can do to help their home be appealing to buyers. To me, there are top objectives to concentrate on when getting ready for a showing.

What's number one?

Without a doubt, curb appeal. It's the first thing buyers see on the internet, and when they pull up to the house. Buyers will decide to see your home or rule it out based on that first impression. Cleaning the yard, fresh paint on the trim, making the exterior inviting is critical.

What can you advise about the interior?

When a buyer is going to look at your home, they're not trying to view it as your home, but instead to imagine the home as theirs. Remove excessive personal belongings and clutter. Focus on common areas such as the kitchen and the living room and the owner's suite, as these are the areas that cause a buyer to fall in love with one home over another. There's always a balance between living in a home and having it ready to show. Too many photos can be overwhelming, such as your grandmother's walls when we were younger, but a few family photos strategically placed can show that this is a happy home for a happy family. A common mistake we see is a house looks amazing, and then you open a closet and it's like an old sitcom scene with things flying out and hitting you on the head!

Anything else that comes to mind?

Our clients often ask us to give staging ideas, which we're happy to do! There are professional stagers that may charge up to a few thousand dollars. One of the benefits we offer our clients is that we have partnered with a fabulous stager who will come into your home for a flat fee of only $200 and work with you to help rearrange and regroup your existing furnishings and decor to maximize the show-ability and sale-ability of your home.

Whether you are a single home buyer or a family, there are probably few things in life that are as exciting - or nerve-racking - as looking for a home.

Home Inspections & Warranties

This morning we have a guest speaker with us today, Mr. Scott Herrmann of ABQ House Detectives and Assurance Home Warranty, filling in for Cheryl Marlow. Can you give us some information on home warranties and how they work?

We have had great success working with many of Cheryl's clients for several years. As a licensed home inspector, I would advise obtaining a home inspection and warranty, and here's why. A home inspection is vital to the process of purchasing a home, negotiating repairs, and fully understanding how to take care of your new home. A home inspection should reveal potential repair items, which, in turn, can save both buyers and sellers thousands of dollars.

Tell me about home warranties.

A  home warranty is a one-time annual premium that is renewable, and covers either the repair or replacement of these home system components that often break down. It's simple: when it comes to home warranties, we PREACH. Plumbing, roofs, electrical, appliances, cooling, and heating.

So what kinds of problems do warranty companies run into?

The most common issue is when people assume certain things are covered, when, in fact, they aren't; or they fail to contact their home warranty company before making repairs. So, the lesson to be learned here is that it's important to read and understand the warranty contract thoroughly in order to ensure that you're covering all of the bases. You can also contact me directly with any questions!

It certainly sounds like home warranties are important!

They most certainly are! Warranties protect all parties involved in a home sale transaction. They protect buyers and sellers from unexpected expenses that can end up burning holes in their pocket. Because buying a home is such a big investment, and probably one of the most important purchases you'll ever make, it's imperative to work with professionals, from your Realtor, to the inspector, to the home warranty company.

Short Sale vs. Foreclosure

We get a lot of questions about short sales, so I thought I would share some information this morning. A short sale is when the bank allows a payoff "short" of their lien amount in order to get the home sold. I appreciate the allure of the short sale from a buyer's perspective, in that you can often get a great deal on a home. However, we also have to remember that a short sale can be a very long, drawn-out process. We jokingly refer to them as "long sales" because bank approval on offers sometimes takes weeks, and usually months, of waiting. It's even possible you may not receive any response from the banks, especially if you really low-balled your offer. So you have to be patient,a and wait it out, and not be in a hurry to move.

What if a seller is in financial trouble? Why should they go through a short sale, and endure a foreclosure?

The primary benefit of going the short sale route is that typically with a foreclosure, the bank will pursue a deficiency judgment against you for the unpaid balance of the mortgage. With a short sale, your debt is often forgiven, and the seller will also avoid the devastating effects on their credit that comes from a foreclosure. A short sale damages your credit, a foreclosure destroys it.

So what all goes into buying or selling a short sale?

Most importantly, you need agents on both sides of the deal that are knowledgeable in the short sale process. If they don't have experience, the sale will be compromised and could end up falling through. As an agent with a lot of experience in working with short sales, I can tell you that it is imperative to have someone representing you that knows how to do the job. In all reality, your success in a shorts ale deal is almost 100% dependent upon the ability of your agent. They should know how to deal professionally with the banks, as well as the other agents. But remember, even experienced agents like myself are, unfortunately, still at the mercy of bank employees. As a short sale expert, please call me today so we can help you get your home sold quickly or find you the right home!

Technology in Real Estate

What are some helpful facets of technology you can share with us today?

I am constantly working, and don't have time to waste on things that don't function efficiently for my clients or my team. When I think of using futuristic gadgetry, I envision things that are simple and uncomplicated, yet flexible and powerful enough to perform the way they promote themselves and to fit in with my high-performance lifestyle. There are many, many apps and websites out there to choose from, and I wanted to share the ones that my team and I utilize. Today, I want to discuss the websites.

What are great websites for buyers?

The Multiple Listing Service, or MLS, is accessibly only Realtors, but there are other websites that pull directly from the MLS using what is called an IDX feed, such as Realtor.com and Homes.com. When people think of online websites, typically the first ones pop up are Trulia and Zillow, being two of the most popular sites out there. If I didn't say what great exposure they can be for sellers and prospective for buyers, I would be lying. However, these are often terribly inaccurate; know that you can always call our team for up-to-the-minute accurate information on homes. As a buyer, we can set up an up-to-the-minute, personalized portal of homes available straight to your inbox for FREE.

Listing Activity Report

What do you have for sellers?

For our clients, we utilize an electronic signature system which you have heard of, Docusign, so that no matter where you are, we can have you sign an offer (or Counter Offer) within minutes. There is also my Listing Manager's favourite: ShowingSuite.com, that is linked to the lockbox in place on your home. Every time that lockbox is opened, it sends an email informing you, as well as our team, about the showing, and when the showing agent's feedback is submitted, it's sent unedited to our seller's email. My personal favourite is one that only those under the Prudential umbrella can use, what we call the Listing Activity Report. Every week, we send a personalized comparative market analysis, showing how many people have searched for your home, how many homes in your area just came on the market, amongst other helpful information. This is a sample of the technology that we offer our clients, and I will report on other application in the future.

Listing Activity Report

Buyer & Seller Mentality

How is the spring market?

With the spring market in full swing and the strong activity we’ve been seeing lately, I wanted to discuss motivation and mindsets of buyers and sellers as it’s very important for all parties to understand what their goals are and the best way to achieve them. As a seller, if you can get into the buyer’s mindset, the sale of your home can happen faster and for more money.

What, in your opinion, are the most important steps in selling a home these days?

The first step starts with a decision. I often talk to my clients in terms of motivation. So ask yourself: on a scale of 1-10, what level of motivation are you at to sell your home? A three would be maybe next year; 6-7 would be to get the kids in school before August; 9-10, we are relocating to Chicago for a job. Often selling is a hard decision, so this process helps people focus on the decision with more clarity.

What are other factors in selling a home?

Success in selling a home is primarily driven by three factors – the condition of your home, appropriate pricing, and an aggressive marketing plan to generate traffic through the door! My proven aggressive marketing plan can make the difference between a for sale and a sold sign. I just sold a home in 8 days that had been on the market with another company unsold for several months, a clear indicator that the marketing plan is critical to a successful home sale. As the seller, remember that the old cliché of “you only get to make one first impression” definitely applies to selling real estate. With many serious buyers looking right now, you want your home to stand out amidst all of the competition! It’s important to remember that your home is for sale and on open display. Buyers like to see things that are streamlined, clean, and fresh looking. Deep clean and declutter to showcase how beautiful your home can be!

How can sellers achieve their real estate goals by thinking from a buyer’s point of view?

Today’s buyers benefit from historically low interest rates and they still want the absolute best deal on a home! They are focused more on the best value and less on emotional purchasing. They will buy their second choice before paying top dollar for their first choice! By working with an experienced Realtor, like myself, you can ensure that your home makes the best overall presentation. This will give you an upper hand when negotiating on price and other important terms of your home sale. My job is to protect the interests of my clients, from the price war, to the beauty contest, until your home is closed and the cash is in your hand!

Contact Cheryl today at 505-238-3272 or email her at cheryl@cherylmarlow.com!

As always, who do you know that needs to buy or sell real estate today? Thanks!!

Real Estate Contracts - Seller's Viewpoint

Last week we talked about Real Estate Contracts, and today you wanted to discuss them from a seller's viewpoint?

Yes, a real estate contract, or REC, put simply, is a way for the seller to act as a bank for the buyer. In other words, the seller is in effect lending all or a portion of the purchase price for their property to the buyer and accepting monthly payments, including interest, over a period of time. The seller can legally sell on an REC even if they still owe a mortgage on their home.

So what are the seller's responsibilities?

The seller has very little responsibilities if they hire an escrow company to collect the payments from the buyers. An escrow company protects both parties, for a small monthly fee of about $10. The escrow company will collect all the payments, send proceeds to the seller every month, and pay all taxes, and insurance payments, if so directed. They hold the warranty deeds until the property is paid off. In the rare instance where a buyer may default, they also hold the warranty deed back to the seller, thereby eliminating the need for a judicial foreclosure action.

Why would a seller want to sell on a real estate contract?

For the seller, they may be able to sell the property for a slightly higher price, since they act as the bank. This widens the pool of available buyers for their home. Also, the REC option makes the property desirable to more buyer who may not be able to qualify for a mortgage at this time, yet have the ability to make payments. Further, the costs of selling and purchasing a home on an REC are less. This can also provide the seller with a monthly income and the interest rates negotiated are significantly higher than interest rates paid for savings accounts and CD's. Payment terms are typically more flexible than with standard mortgages, and payout dates are negotiable. It is fairly common to see a 5 year due in full clause, where the buyer must pay off the seller entirely in that time frame, either by refinancing or selling the house.

Las week  you spoke about the importance of working with an experienced Realtor, can you delve into that again?

When dealing with REC's, where all of the terms are negotiable, it is critically important to have an experienced REC specialist, like myself, represent you, whether you're in the transaction as a buyer or a seller.

Real Estate Contracts - Buyer's Viewpoint

You wanted to talk today about buying a home on a real estate contract, can you tell us what that is?

The first thing to know is that we call them REC's. A real estate contract put simply is a way for the seller to act as the bank for the buyer. In other words, the seller is, in effect, lending all or a portion of the purchase price for their property to the buyer and accepting monthly payments, including interest, over a period of time.

Does the buyer have to qualify?

The buyer does not have to qualify, however most sellers will review the credit report. It is much easier than qualifying for a mortgage and many sellers will take a chance on someone with poor credit, especially if they have a good explanation.

Why would a buyer want to buy on a real estate contract?

For a buyer with little, bad, or no credit, it may be the only way they can purchase a home. It may not be a credit issue. They may be self-employed or in a new job, or other reasons that make qualifying at the bank difficult or impossible. Another reason is that the terms and the down payment are negotiable between buyer and seller. And since you are buying the house you get the tax deduction for the home ownership.

Sounds a little complicated, have you done a lot of these real estate contracts?

Yes, I have, both for clients and for myself as buyer and seller. When I started selling property 27 years ago, they were very popular. When financing became so easy they almost went away. As lending requirements have become more restrictive, REC's are back and more popular than ever!

Obviously, it is important to deal with an agent like you has lots of experience in these. Do you have a property to tell us about that the owner will finance?

Yes, I do! I have homes available with owner financing starting at $150,000 up to $1,250,000 in many locations in the Greater Albuquerque Area!