by CRESTICO | Feb 6, 2012 | CRESTICO
Today’s buyers are looking for turnkey homes. That is, they want to move right in without having to do a lot of work. Buyers with busy lifestyles pay a premium for listings that are in prime condition. Staging can make the difference between a listing selling or not, the time it takes to sell, and the ultimate sale price.
Sellers who are financially strapped often have a hard time accepting that they’ll need to invest in preparing a house for sale even though they may sell for less than they paid. Fix-up costs can mount up; your agent can help you prioritize so that you don’t waste money. It’s important to keep your goal in mind, which is to sell your house in a difficult market.
Recently, a home in an affluent city came on the market in “as is” condition. It had been lived in for decades without much upgrading. Although located in a desirable area, the listing was vacant, dark and showed poorly. The sellers refused to do any work to improve its appeal.
After months on the market with no significant interest, the sellers pulled the house off the market and made improvements. The wall-to-wall carpet was pulled up to reveal hardwood floors that were then refinished. Painters lightened the interior and a professional stager was hired to bring in furniture, artwork, house plants and accessories. The listing was put back on the market with a fresh look and sold right away.
HOUSE HUNTING TIP: Although listings staged by a good decorator show well and often sell quickly, you don’t need to spend a lot to put your home into shape for marketing. Most homeowners have too many personal possessions in their home from a sale standpoint. Decluttering is something most sellers need to do.
Consider hiring someone to help you sort, pack, donate and recycle items that you no longer want. You may be able to take a tax deduction for things you donate. Make sure to get a receipt. Your Real Estate agent should be able to recommend someone who can help you clear your house of clutter if you are overwhelmed by the project.
Your agent, or stager, may ask you to put away collections of art, personal photos, etc. This can be difficult for most sellers because, for them, it’s part of the emotional appeal of their home. Your house won’t look like your home after you’ve removed personal possessions and moved what’s left around to display the house to its best advantage.
That’s the point of the preparation process. You don’t want prospective buyers focusing in on your personal property; you want them to focus on the house. Keep in mind that how you live in your home and how it should look when it goes on the market are not the same.
Some sellers complain that their house looks too stark without all their possessions. Even so, it helps you to detach yourself emotionally from the property. Also, less personal property usually gives homes a more spacious feel. When buyers are looking for the most for their money, bigger is usually better.
To close the deal, a listing should be spotless and inviting. Bring in new house plants to put in strategic locations, like orchids in the bathrooms. In dark spots that need a dash of warmth and color, use bromeliads.
THE CLOSING: If you can’t pull this together yourself, or with the help or your agent, hire a good stager for a consultation or a proposal for full or partial staging.
By Dian Hymer
How to sell my house fast
by CRESTICO | Jun 4, 2010 | CRESTICO
Lately, I have been getting asked many questions about what it takes to buy a home and how to start the process. So, today, I thought I would write on what exactly an “offer” is comprised of. This year, the California Realtor Association has re-vamped the “offer” form, also know as the “Residential Purchase Agreement.” I thought it would be particularly helpful to go over some of the key components and aspects an offer to purchase a property.
In Real Estate, oral contracts are not legally binding. If you wish to bid on a property, you must make a formal, written offer or proposal. Your Crestico sales professional is experienced with the offer/counter-offer process, and will know which of a variety of standard proposal forms are suitable for your area. Once written, your Sales Professional will present your offer to the seller. (In some cases, this is all handled by the respective parties’ lawyers.) We have provided the basic information needed during this critical phase here.
What the Offer Contains – Your written proposal may include, but is not limited to, the property’s address and legal description, sale price, terms, earnest money, expiration date of the offer, prorating (adjustments) of utility bills, real estate taxes, insurance, contingencies, repairs and any other terms that you deem important.
Earnest money – Earnest money is a deposit given when making an offer. It demonstrates sincerity—“earnestness”—on the buyer’s part. If the offer is accepted, it becomes part of the down payment. If not, it is usually returned.
Contingencies – A contingency means that the purchase is subject to certain events occurring, such as the buyer’s loan being approved, or the property passing the termite inspection. If the contingencies aren’t met, the offer is void.
Response – If the seller accepts the offer, and signs an acceptance, you have a deal. If not, you are free to walk away, and cannot be held liable for the contract. The seller may make you a counter-offer, and you are free to accept it or not, or make your own counter-offer. Only when an offer is accepted and signed by both parties is the contract binding.
Withdrawing an offer – In most cases you can withdraw your offer up to the point when it is accepted. If you do wish to cancel the offer, it’s a good idea to consult with a real estate lawyer. You don’t want to lose your deposit, or be sued for damages perceived by the seller.
Mitra Karimi
Crestico, Inc.
http://www.crestico.com
mitra.karimi@crestico.com
by CRESTICO | Mar 25, 2010 | CRESTICO
Governor Schwarzenegger signed Assembly Bill 183, the Homebuyer Tax Credit legislation, into law today. This is a law that will allow for approximately $200 million for home buyer tax credits,. Of this $200 million, about half will be set aside for first-time home buyers who qualify and purchase existing homes. The other half will be set aside for qualified buyers who purchase new, or previously unoccupied, homes.
Under this program, eligible taxpayers purchasing personal residence and who qualify for the credit must purchase the property between May 1, 2010, and Dec. 31, 2010, unless they purchase the property after Dec. 31, 2010, and before Aug. 1, 2011, but have an enforceable contract executed on or before Dec. 31, 2010, will be the individuals who will be allowed to take the tax credit.
The amount of the credit is equal to the either 5 percent of the purchase price or $10,000 ( taken in equal installments over three consecutive years); whichever is less. Additional requirements in order to be eligible for the credit include the fact that buyers MUST live in the home for at least two years. If this last requirement is not met, the credit will be forfeited, and any portion previously claimed will immediately be due, payable to the state.
Historically, programs such as this one have led to a positive increase in Home Purchases. Many buyers describe themselves as being more willing to purchase a home when they know they are eligible for a tax credit. A prime example of the impact of credits on the housing market can be seen by the impact the Federal credit has had on the housing market.
Industry professionals are hoping that this state tax credit will result in just the push that the housing market in California needs to stimulate sales, motivate rehabilitation and create employment for Construction and contractor-related jobs.
by CRESTICO | Mar 23, 2010 | CRESTICO
Earlier I wrote about how the federal government was going to institute the Home Affordable Foreclosure Alternatives ("HAFA") program that is aimed at streamlining the short sale process specifically for properties with mortgages owned or guaranteed by Fannie Mae or Freddie Mac.
As it currently stands for most buyers considering short sales, they have had to wait weeks and even months before hearing back from lenders regarding whether or not short sales will be getting approved. HAFA intends to change that. Even though, for the most part, HAFA impacts lenders and homeowners of the subject properties, buyers will also be affected by these new rules.
For example, as a buyer, you will now need some sort of proof of funds in the form of a verification or pre-approval letter, that will need to be provided to the lender within three days of the lender’s receipt of your offer. Additionally, lenders will now be required to approve or deny an offer made on a short sale within 10 business days of receipt. The impact of this is huge! This means no more months of waiting.
Furthermore, buyers will be affected by HAFA in that the new program will require settlement to take place within a reasonable period of time after the offer is made. More specifically, a lender may not require less than 45 days from the date of the sales contract for a closing, without the home seller’s consent. This again will be reducing the total time spent on a "short sale deal."
As a buyer of a short sale, you will also be required to maintain ownership of the property for at least 90 days. This "seasoning" period is intended to avoid "flipping" and inflated prices for these properties. Finally, as a buyer of a short sale property, you will not be able to be related to, have a close personal or business relationship with the seller. Violation of these rules and guidelines may result in the loss of the property as well as other legal ramifications.
All in all, HAFA is hoping to achieve the end result of preventing foreclosures from inundating the market and facilitating the process involved in buying, selling and approving short sales. In doing so, it is hoped that we will be once again on a steady road to recovery. Once the process is streamlined and simplified so sellers, buyers and professionals can work together with greater ease, the Real Estate market will necessarily begin to grow and experience the health that it once did.
by CRESTICO | Oct 31, 2009 | CRESTICO
An Update on Recent News Surrounding the Homebuyer Tax Credit
Much discussion and controversy have been surrounding the impending end of the First Time Homebuyer Tax Credit. Initially set to expire in November, the government is now considering extending the credit into next year. In this article, you will find some of the recent developments in this topic.
In order to be eligible, the cost of the home may not be more than $800,000 and there would be $125,000 and $225,000 income limits for single and joint filers (over the age of 18), respectively. Additionally, as long as the new home is the buyer’s "principal residence" for at least 3 years after the date of purchase, the credit will not need to be repaid.
$8,000 is the amount of the credit for first time homebuyers and there is now talks of adding a $6,500 credit for move-up buyers (people who have been using the home they are leaving as their "principal residence" for at least 5 years) who purchase homes between December 1, 2009 and April 30, 2010, as long as the transaction closes by June 30. Any purchases made in 2010 would be acceptably filed on 2009 tax returns, as long as a HUD-1 settlement statement is attached when the credit is being claimed.
As always, buying a home is a big task and there are lots of questions anyone considering buying or selling will have. For this reason, it is a very good idea to get the assistance of a qualified, experienced and helpful Real Estate agent. Your real estate agent can mean the difference between happy holidays in your new home or spending the holidays stressed out and worried about just one more unnecessary thing!
For more information please visit http://www.crestico.com
