WHY ISN'T MY HOME SELLING?

Selling Your Home? In this market – and possibly this very moment – sellers across the country are asking themselves one question: why isn’t my home selling?  

While each client’s situation is unique, and we all think our homes are special, there is one underlying factor that makes or breaks a buyer’s decision to settle on your home: PRICE. 

Pricing your home correctly in this market is one of the most critical actions you can take to sell your home faster – it"s also one of the most difficult decisions you’ll have to make as a seller. Which is why so many people won’t do it. What sellers have to realize is that by making the decision to price correctly from the beginning they may be staving off further financial damage. For some, that means getting creative about finances, for others, it can sometimes translate to taking a small loss. In some cases, taking a small loss may be the best scenario. Let’s look at it another way.

John Seller paid $300,000 on his home that is now worth $250,000. Many REALTORS® would tell him to come down on his price at the beginning by say, $20,000. Now his asking price is $280,000. Scenario (1): A buyer comes along after one month on the market. They know, based on the CMA, that Mr. Seller’s house is worth $250,000, so they put in an offer for $245,000. Mr. Seller decides to counter with $255,000, and SOLD! Now Mr. Seller can move on knowing that he is lucky not to have lost any more on his home.

Now Scenario (2). Mr. Seller actually decides not to come down on his price at all. As a result his home sits on the market for the first month with only a few bites from buyers but no official offers. An experienced REALTOR® would recommend that Mr. Seller come down 10 percent each month that his home doesn’t sell. He does it. Two months later Mr. Seller’s home is now at $243,000. Finally, in the third month, a buyer comes along and offers $237,000. At this point Mr. Seller is considering, but feels it’s too low, so his home sits another month. Frustrated, Mr. Seller decides not to come down on his price anymore. At this point Mr. Seller is in trouble. He is underwater on his mortgage and every additional dollar he loses on the home sale must come out of his pocket to pay off the loan. By starting at a higher value than the market will support, he stands to lose more than if he had factored in a small loss up front.

These two scenarios demonstrate the increasingly critical point of pricing your home correctly from the moment you decide to sell. While it may seem exaggerated, there truly are sellers experiencing situations similar to the ones described above. The good news is that by teaming up with an experienced real estate agent, who knows your market well, you have a far greater chance of making informed decisions about the price of your home. Your REALTOR® wants you to get the most money possible out of the sale of your home – and these days – that means reducing FROM THE START.

HOW TO MAKE A SMALL BATHROOM FEEL BIGGER

Does your bathroom make you feel claustrophobic? 

Some simple design choices could help you open it up. Check out these tips for small bathrooms.

Not everyone can afford a master bath with twin sinks, a palatial tub,and luxury dual-headed shower. Some of us (well, most of us!) have to contend with reality. Reality means compromises, and sometimes that compromise means a small bathroom.

But just because a bathroom is small doesn’t mean it has to feel small. In fact, many small bathrooms can be transformed into much larger-feeling spaces simply by making some adjustments to design choices.

Here are some design tips for your small bathroom that don’t involve major renovations. If you’ve been living with a small bathroom, perhaps these tips will help you make the most of what you have until you decide it’s time to make the upgrade:

1. Install a sink with open shelving underneath, or a narrow pedestal. A big, blocky cabinet under a sink may provide storage, but visually it consumes a hunk of open space.

2. Situate towel racks on the back of your door. Stylish towel bars stacked three high on the back of your door can eliminate the need for racks elsewhere in the bathroom, opening up more wall space. If your bathroom’s really small, these towels on the back of the door might not even be out of reach from inside the shower!

3. Elevate shelving above the toilet tank. If you have shelves elsewhere, but the space above your toilet tank is empty, consider relocating high shelving to above the “dead space” behind the toilet. Consolidating this used space into a single area can broaden out the rest of the bathroom.

4. Go high with wall cubes. Cubbie or cubes situated overhead can be an effective way to move the clutter of storage above eye level. There are companies who make these wall-mounted, moisture-resistant cube shelves in a variety of styles.

5. Recess some lighting. You may not multiple light sources in your small bathroom, but if you can “hide” some of your lighting in recessed areas, particularly above the shower, you can reduce the “noise” of big fixtures.

Look on the bright side: At least a small bathroom means less to clean. If these design tips aren't enough to open up your small bathroom, perhaps it's time to upgrade to that bathroom of your dreams...let me help you find your next home today.

valeriemcconville@valeriemcconville.com

WHEN DOES A HOME EQUITY LINE OF CREDIT MAKE SENSE?

Have a major expense coming up? Not sure how much you might need, but suspect it’ll be big? Learn about the power of a home equity line of credit (HELOC).

Part of the financial power of home ownership resides in your home’s equity. 

Unlike rent, which goes into a landlord’s pocket, the equity you build in your home can be a useful financial tool when the time is right. Home equity is defined as, “a homeowner's unencumbered interest in their real property—that is, the difference between the home's fair market value and the outstanding balance of all liens on the property.” (Source: Wikipedia)

A home equity line of credit (HELOC) is a useful way to access the equity in your home. Unlike a home equity loan (HEL), the HELOC operates more like a credit card. Rather than draw a fixed amount at one time, you’re able to draw on the line as-needed. Like a credit card, though, a HELOC can be risky. Since your home secures the line of credit, a failure to keep up with the payments can put your home on the line.

A typical HELOC allows you to access up to 85% of your home’s value, minus the outstanding balance on your mortgage. In Canada, you can access up to 65% of the value of your home through a home equity line of credit. This can be a huge pool of credit to work with, depending on your equity position. However, it's also important to remember that your outstanding mortgage loan balance + your HELOC cannot equal more than 80% of the value of your home.

There are some benefits to HELOCs:

• You only pay interest if you draw on the line of credit

• You can pay off your balance and borrow again as needed

• Interest rates tend to be low, as the credit is secured by your home

• It’s easy to draw funds (many even come with a card)

• The interest is tax deductible

There are times when a HELOC is a bad idea, though:

• You only need access to a small amount of money. The fees associated with securing a HELOC make this impractical.

• You may be tempted to treat the HELOC like a credit card, creating a real spending problem.

• Monthly payments can fluctuate since the interest rate is variable and tied to the prime rate.

• Your income is unstable. You must feel confident you can make those payments.

• There may be a cancellation fee.

It’s worth noting, your loan’s interest rate isn’t just the prime rate, but the prime plus the bank’s “margin” (an amount of interest they add to the prime rate). Sometimes banks offer a low introductory margin, and then up the rate later. Be sure to read the terms of any HELOC carefully.

Curious about your home’s value? 

Contact me today: valeriemcconville@realtyexecutives.com

HOME SELLING SECURITY TIPS

In recent years, there has been a troubling increase in the number of con artists, thieves, and other criminals masquerading as prospective home buyers in an attempt to gain access to a property, or worse, its occupants.

As an experienced REALTOR®, I'm trying to do my part to make the home selling and buying process smoother and safer for all involved.  To help prevent home sellers from falling victim to unscrupulous criminals, I have compiled a list of effective security precautions that I'd like to share with you today.

Do screen prospective buyers over the phone, asking as many questions as you need to feel comfortable, before making an appointment.

Don't make an appointment with a prospective buyer until you've gotten their name and number and verified the information.

Do leave the prospective buyer's name and information with a trusted neighbor, friend, or relative before showing the home.

Don't provide information about your home's security features.

Do let potential buyers know you'll be asking for ID, and make a copy of their license or write down their information when they arrive.

Don't say anything that might reveal your schedule to prospective buyers.

Do keep a detailed log including names, addresses, ID information, and tag numbers of everyone who's looked at your home.

Don't be alone when showing your property; try to have at least one other adult present.

Do carry your cell phone with you when showing your home.

Don't let prospective buyers out of your sight during home showings.

Do hide or remove prescription drugs, guns, jewelry, and other valuables.

To reduce these security risks for my clients, I carefully pre-screen prospective buyers before arranging a showing to ensure they are both sincere in their inquiry and financially qualified to purchase the home in question.

If you have any more questions about home security, call a local agent who can help you protect your greatest asset, your home.

THINGS NEEDED AFTER PURCHASING A HOME

Now that you've signed all the paperwork and your loan is approved, it's time to move in.  

But wait!  Before you put your feet up, there are a few things that you will need in order to make your new house a home.

Locks

Regardless of whether you purchase a newly constructed home or one that was formerly owned by someone else, it's important that you have the locks changed.  Everyone from REALTORS® and contractors to friends and family of the former owner may have a key, which is why getting new locks should be at the top of your list.

Furnishings

You can't hang your hat without a hatrack, so don't forget to add some necessary furnishings.  Some homes may include appliances and possibly even some furniture, but most homeowners prefer to decorate their house themselves.  After all, someone else's taste in decor may not necessarily be the same as your own.  If you purchase from a furniture store, they will handle the delivery for you.  Otherwise, you can hire a moving company.  

Appliances & Cookware

Even if your new home is equipped with appliances, you may still need to add a few items into the mix.  For instance, a coffee maker, toaster, microwave or blender may be items you want for your kitchen.  You will also need flatware, tableware and a quality dish drainer to hold your dishes that require the handwash method.

Tools

When you move into a new home, there will likely be some things to do that require the use of tools.  Whether you need to assemble furniture, a desk for your office or just need to tighten some bolts here and there, a good set of tools is a necessity.

Personal Touches

No home is complete without personal touches that represent the new owner's taste, so don't forget to include them on your shopping list.  Pictures, paintings, special window dressings, accent pillows, plants, decorative throws, accent rugs and bedding sets will create a custom interior that's all about you.  Other things to consider include portable air cleaners, water filters, an answering machine, wastebaskets and a bathroom plunger.

Outdoor Décor         

If you like to entertain, equipping your backyard accordingly is a must.  Patio furniture, an outdoor grill, landscaping tools and garden supplies are essential to creating an outdoor atmosphere that your family and friends are sure to love.  Speaking of the outdoors, don't forget to purchase a lawnmower and trimmer unless you live in a subdivision where lawncare is included in the maintenance fees.  If you live in an area that's prone to snowfall, keep this in mind when shopping for maintenance supplies.

The best way to tackle a large list of necessities is to keep a pad of paper nearby and write down each item as you think of it.  Think about each area of your new home and do a mental inventory of what is needed.  There will always be new items to add to the list, but you will cover the basics with your handy checklist of necessary items for your new home.

AVOIDING MORTGAGE FRAUD

Unfortunately, fraud and identity theft are increasing at an alarming rate every year, and mortgage fraud is one of the most important types of fraud from which you will want to protect yourself.  So what constitutes mortgage fraud, and how can you prevent this from happening to you?

What Is Mortgage Fraud?

Essentially, mortgage fraud is defined by the FBI as any material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan.  There are several different types of mortgage fraud, and each is a serious offense that can have a huge impact on you and your credit.  Here is a basic list of the most common types of mortgage fraud.

Undisclosed Kickbacks-This includes any financial deals between a buyer and seller that are not included in the mortgage documents.

Falsifying Income-Inflating your income is a serious offense on any loan document, especially a mortgage.

Undocumented Non-Owner Occupancy-Rates and other fees can be higher for income and rental properties, but resist the temptation to hide this fact in order to save money.

Inflated Purchase Price-In some cases this method is used to obtain a higher appraisal of a property, but it is illegal and may cost you your home.

How To Protect Yourself

The purchase of your home will probably be the greatest financial investment you will ever make.  Ensuring that you know what constitutes mortgage fraud is half the job, but it is also important to know how to protect yourself from professionals who may not have your best interests in mind.  

In general the best method is to ensure that your real estate agent and mortgage lenders are professionals with considerable experience, professional credentials, and good references.  

It is also important to keep in mind that if an offer seems too good to be true, or if you feel that your REALTOR® or lender has given you advice that sounds as if it might fall under the category of mortgage fraud, you seek the advice of another professional. In this way you can avoid getting yourself into what may be a potential financial disaster.

Your property is not only your home, but also your greatest asset, and losing it to mortgage fraud can be avoided when you are armed with these facts.

7 SIGNS A BEDROOM HAS GONE BAD

It can be hard to see your home through a buyer’s eyes. 

Sometimes you’ve become so used to your rooms you lose the ability to see when a room needs an update. 

The bedroom is notorious for making or breaking a buyer’s decision to make an offer. Here are some signs yours may need an update.

Bedrooms don’t come with an expiration date, but some really should. When buyers are touring a home, a stale bedroom with outdated style can be a deal-breaker. Problematically, many sellers simply can’t see their own bedrooms honestly anymore. Give your bedroom the “has it gone bad?” sniff test by checking for these common signs of stale design:

Your ceiling has more popcorn than the home theater: Is your ceiling a constellation of dusty, stained popcorn texture? Nothing says “state of the art 1950s design” like the popcorn ceiling. Removal can be a dirty job, and you’ll want to have it checked for asbestos before you do, but getting rid of it goes a long way to modernizing the look.

Mirror, mirror, on the wall. And the closets. And the... ceiling? A little reflected light makes a bedroom look bigger, but if you’re rocking the fun house / journey-into-infinity effect, consider removing some of those reflective surfaces.

Frills, frills everywhere. Check those bed skirts, window dressings, and curtains. Could a Civil War-era southern belle scratch together a formal dress from your assortment of puffy fabrics? Tone it down.

Sorry, captain, the pattern is... retro. Check the paper in your drawers, the shelves of your armoire, and the paper on the walls. Does it feel like felt? Is it yellow like a pirate map? Does it remind you of an 80s prom? Any (or all!) of these are signs you need to update.

Prison ward pillows. Wow, that bed looks... really, really flat. You sleep like that? Clean lines are one thing, an uncomfy bedroom is another. Puff it up and make it cozy.

Formica anything. Does your dresser look like it would make a nice kitchen island in the 1970s? Spring for some staging furniture and replace that laminate wonderland.

But I’ve had that alarm clock / television / stereo for 30 years! Yes, and it shows. Nix the flip-digit clocks, the wood grain television cabinets, and the neon-striped boom boxes. Modernize or put them in storage, stat.

Yes, buyers can modernize a bedroom when they buy the house, but expecting them to see past your bedroom’s past is taking a gamble. Do a few simple things to freshen up that room!

Need someone to evaluate your interior appeal? Talk to a local REALTOR® and let them guide you towards maximizing your home's appeal.

valeriemcconville@realtyexecutives.com

A REVERSE MORTGAGE: IS IT RIGHT FOR YOU?

A reverse mortgage is a financial option available to seniors which allows them to free up some of the accumulated equity in their home.  

This may be an appealing option for obtaining some extra income in your retirement to use for a variety of reasons; however, there are some important considerations to weigh before borrowing against your greatest investment.  

Here are some facts about reverse mortgages, and some tips for making the right financial choice.

What Is A Reverse Mortgage?

Sometimes called a lifetime mortgage, a reverse mortgage allows you to borrow against the equity in your home, which can be paid out either in one lump sum or in several payments over time.  This amount does not have to be paid back to the lender during your lifetime provided you stay as a resident in your home and it remains your property.  That percentage of the value of your home which you have taken out now becomes the property of the lender, and will be returned to them after the sale of the home.  Your heirs still inherit the property upon your passing, and they have up to one year from that time to either refinance the property, or sell it and keep the remainder of the proceeds for themselves.

Do I Qualify For A Reverse Mortgage?

Depending on where you live, the qualifications for a reverse mortgage may differ.  In general you must be 62 years or older, have no outstanding mortgages on the property upon which you are borrowing, and you must have sought the advice of a qualified financial advisor in order to prove that you fully understand the process.  You can use the monies from a reverse mortgage for whatever you want, as there are no restrictions.

How Much Can I Get From A Reverse Mortgage?

Again, depending on where you live, the amount of equity you can receive from your home with a reverse mortgage will differ.  In the U.S. there is a maximum limit of $625,500, no matter what the value of your home, but for most homeowners the actual amount will be considerably less. In Canada, the maximum limit is $750,000.  The actual amount you will get depends on a variety of factors such as the value of your property, the interest rates at that time, your age, and whether you want a lump sum payment.

Reverse mortgages can be a great addition to your retirement income, but being sure you know all the facts before going ahead will ensure peace of mind for both you and your family in the long term.

BUYING VERSES RENTING A HOME

When it comes to a home, you have two options: buy or rent.  What is right for one person may not be right for another, which is why it's important to know which is the best option for your individual situation.

Why People Rent

There are a number of reasons why someone may either choose or be forced to rent, including sporadic or unpredictable income, a high debt-to-income ratio, a bankruptcy or foreclosure within the last six months, unpaid collection accounts or judgments, frequent relocating for employment or the inability to save enough money for a required down payment on the purchase of a home.

Maintenance Matters

As a homeowner, you will be responsible for any maintenance or repair issues that arise.  This is a big consideration when choosing whether to rent or buy.  When you rent, the property owner is responsible for repairs and it may not always be obvious that these issues can be very costly.

How To Know When It's Time To Buy

If you have steady income with a good employment history, can provide a down payment of at least 5-10 percent of the purchase price and are current with all debts, it may be time to consider buying a home instead of renting.  In some cases, the cost of rent may even exceed that of a typical mortgage payment.

When deciding to buy, job stability is a big factor.  If your job does not require frequent relocation and you plan to live in the home for at least 5-10 years, you may want to consider making the purchase.  If you need to relocate after that, you may have enough equity from the sale to use as a down payment on another home.

Home Buyer's Checklist 

If you can answer yes to the following questions, you may be ready for home ownership.  Your REALTOR® can help you to find the perfect home based on your individual needs.

Have you been steadily employed for at least one year, but preferably two years?

Do you plan to live in the home long enough to build equity?

Can you provide a down payment and still have enough money left to pay for closing costs, utilities and home furnishings?

Are you current on all debts, including auto loans, credit cards, etc.?

In addition to any current debts that you may have, can you afford a monthly mortgage payment which will likely include property taxes and insurance?

Do you have the time to devote to shopping for a home and comparing interest rates from various lenders?

Have you checked your credit reports for inaccuracies and disputed anything that needs correction with each of the three major credit reporting agencies?

The decision to buy or rent is a very personal one that can only be determined after a careful evaluation of your situation. A REALTOR® can show you the perfect home and a lender can tell you whether or not you can afford it, but it's up to you to make the choice as to whether or not you are ready to make the move.

6 INSIGHTS INTO PRICING YOUR HOME TO SELL

Think you know the ins and outs of home pricing? It’s more complex than you might imagine. 

Get a quick education on home pricing with this blog post on tough pricing truths.

The pricing conversation is always a challenge. You want top dollar for your home, and your real estate agent will, too. After all, a better commission comes from a better price. 

But a lot of psychology and strategy goes into home pricing, and if you don’t go in with your eyes wide open, you could end up heartily disappointed.

Here are some tough truths about home pricing. While they can vary a little depending on unique market conditions, they should all be in the back of your mind as you prepare to list.

1. Some agents will try and “buy the listing.” Sad but true: Some agents will tell you what you want for the home is accurate, even if it’s too high. Figuring they can manage disappointment and reductions down the line, the less-than-ethical agent will try and cut off the more honest competition by telling you the price you think you should get for the listing is the price you should shoot for.

2. Nobody cares what you paid for the home. No buyer in the history of real estate has ever agreed to pay more for a home because of the profit a a seller hopes to get. Yes, you may have sunk $150,000 in renovations into the basement, but the market will dictate the pricing, not what you “think is right.”

3. Lowball pricing is risky. Yes, you can generate a lot of interest by undercutting other listings on the market, but people may still attempt to negotiate. While you may stay firm on your price, you could find yourself making contract compromises you’d rather not make.

4. Precise pricing suggests you’re less willing to negotiate. List a home for $403,750 versus $400,000 and you’re basically broadcasting a kind of inflexibility. This may or may not be part of your pricing strategy, but whatever you do, don’t do it unconsciously.

5. Seasonal timing can influence pricing. Are you the only comparable home on the market in January? You might be able to get a little more, especially if schools are good.

6. Infomercial pricing can make a difference. Have a million dollar home? Swallow your pride and try your hand in the $990K+ range. Slipping under the seven-figure mark can cast a slightly wider net for buyers.

Most homes sell within 3% of a market-savvy asking price, so go with an agent who is willing to explore the deep local conditions. Curious how much your home might be worth right now? I’d be happy to put together a no-obligation pricing matrix for you: valeriemcconville@realtyexecutives.com