Beth's Blog

Why NOW is the right time to buy!

If you are thinking of buying a home, NOW is the time.  There are many reasons but I will tell you about a few great reasons to buy at this time.

Inventory.  There is currently a great inventory of homes on the market.  As we pass the peak season many homes have been reduced in price and there are some great values out there.  After the new year properties generally are listed at a higher price in anticipation of the new selling season .

Competition.  At this time of year there are fewer buyers looking to buy.  This means there is less competition for the home you may wish to purchase.  In the Spring, there will be a new group of buyers ready, willing and able to buy.  That being said I just reduced the price on one of my listings and we received 4 offers.  The activity suggests that there are buyers out there ready to buy a house that is affordably priced.

Interest Rates.  There are some of the lowest interest rates that we have ever experienced for mortgages that are available.   The combination of low rates and lower prices mean you can qualify for much more house now than when rates and prices rise.  If you are on the edge of ratios to qualify for a mortgage a rise in interest rate could mean the difference from being qualified to buy or not being approved.

Negotiating.  At a quiet time of year with fewer showings of homes it often means you can agree with a seller on a better price and terms.  Some sellers may also be willing to move back the closing to a later date in order to sell their current home and move on with their plans. 

Choices.  At this time of year you may have more flexibility in the options available.  If you don't want to move into a home until the Spring or Summer you could consider building a new home and getting the design, finishes and  energy efficiency that you desire in a house.  Waiting until Spring may mean that you will have to wait longer for a new home and the home will not be completed in time for you to position your current home for sale at the peak selling season.

If you have decided to buy be READY to buy.  This means talking to a mortgage company and getting a pre-approved   In order to have a strong offer you need to have a pre approval letter from a bank. This will tell the Sellers that you are qualified and ready, willing and able to purchase.  If you need a gift for cash down at closing be sure you speak to the mortgage consultant on how to document and the timing of such a gift so that it can be applied to down payment and / or closing costs. Know what types of loans you are qualified.  Some may have better options or work better for you depending on your resources.    Be sure you have discussed the sequence and timing of events that occur with a home purchase.  From the time the offer is made, through acceptance and contingencies you should be well informed about the sequence and time frame.  Expect that a normal closing will take about 6 weeks.  You can move into your new home after your close.  You may need to adjust your time frame on the offer based on when you need to be living in the house.

The smoothest home purchases happen when the buyer is knowledgeable about the process and has an experienced professional who can assist them every step of the way.  Before you start looking you should set up a meeting with an experienced Realtor to discuss your needs and the process.   Home ownership is one of the most rewarding experiences life offers us. 

Autumn is in the air...

What does this mean to sellers?  It means that it is time to think about curb appeal once again!  Those fading summer flowers need to be trimmed back, replaced with a burst of fall color in the form of brilliantly colored mums.  Gardens should be cleaned up and mulched and shrubbery trimmed.  This is a good time to talk a walk up your own front walk and see what Realtors and their clients are seeing as they approach your home.  Be sure that while they wait for their agent to open the front door that the front trim and entrance shout well maintained home!  A clean welcome mat also projects the right image.  If you have a brass door knocker be sure that it gleams and windows shine in the fading fall light.

As the daylight fades earlier it is important that the interior looks and feels warm and cheery.  Be sure the lights are on and the home welcoming.  The scent of  apples and spices will draw them in.  This is easily done put a pie plate of apples and spices in the oven and turn on low for a few minutes and then turn it off and leave them in the oven.

Make sure the house is clean and dusted... it is the season of haunted homes but you don't want yours to look scary.  Get rid of any cobwebs inside or out.

While you are taking a fresh look around this is a good time to reassess the flow as one walks through the house.  Make sure that the furniture doesn't block a nice flow and that as we change seasons there isn't too much summer and fall stuff in the way.

Fall is a great time for charity sales.  If you haven't already done so clear out those items that you don't want to move.  The less clutter and stuff the better the house will show.  As you remove items be sure you clean where they may have been.  Take extra care in the basement in garage which should be washed down and perhaps freshened up with some new sealer or paint.

            Now is also a good time to go through your closets.  If there is clothing that you haven't worn in years this is a good time to clear some of it out.  Once this is done, reorganize.  You will be amazed at how much more abundant storage space appears and how much more inviting.  You should also consider removing seasonal items and storing them elsewhere to free up space.  Lack of storage space is an inadequacy that many buyers will not overlook.

            Remember.in most areas the real estate market slows between Thanksgiving and New Year's so this is the time to make every showing count so you don't have to wait for the Spring market.  If your house isn't on the market but you do want to sell next year this is a great time to call a Realtor.  They can give you assistance in deciding what should be done prior to putting your home on the market and perhaps taking a few exterior photos while the outside is green.  These will be invaluable when you decide to list your home before the snow melts in the spring.

Leverage your property sale...

Tucker suddenly stopped to gaze at the panoramic view of  Ithaca.  He knew that homeowners needed a New Perspective on positioning their properties for sale!  The sales data that he and Realtor Beth had meticulously analyzed sent a clear message..  Presentation, Pricing and Target Marketing were the keys to selling a home for the highest price, in the shortest time and with the least hassle.   And while Tucker didn't understand how detailed marketing plans translated into a SOLD signs, he did know that every home has a story and that Realtor Beth could expertly tell it..  So he hurried back to the office knowing now was the time to assist sellers in gathering the photos, planning repairs, staging and more.to be ready to sell now or in the Spring!.   Summer was almost over and it was going to be a Fall, Winter and Spring of Successful Sales for those who planned ahead.  The End.

Building Your New Dream Home

Late autumn is the perfect time to think about building the home of your dreams.  A new home is best for those who want to make the choice of architectural style, how to site the home on the lot, finishes inside and out and features and options in the house.  Building a home is the only way you can have the home totally customized to your life style, needs and personal preferences.  There are many items to consider but the first and perhaps the most important is financing. 

Early in this process you should speak to a bank about the amount of home mortgage loan you will qualify for and the best programs that fit with your financial situation.  New home construction generally requires that you put a large amount down in cash on the house and that once the home is completed you then convert your construction loan into a traditional home mortgage loan.  As with purchasing any home the financing aspect is fundamental.  You need to make sure how much you can afford to spend on a lot and on the new home you will be building on the lot. 

One of the first decisions is finding the location and the site for your new home.  Consider the options of different locations offer, proximity to work and shopping, schools, services and the impact of future plans for the area.  In selecting a building lot you need to determine orientation of your new home and how best to site the house.  A good builder can give you recommendations on lots that will give you the ability to have a walk out basement, the best view from certain prime areas of your home, the greatest privacy from other homes in the neighborhood and the natural light available in the house during different times of day. The deed restrictions for the subdivision may also require the house to be a certain finished square footage, prohibit certain types of siding or house colors and may limit the use of the home for a home business or having an apartment in your home.  You should also consider the availability of services.  For example if you want natural gas, municipal water and sewer you may need to be closer in to town where the services are available and the lot sizes are likely to be smaller.

Peak times for the purchase of lots occur in late fall, early January and early spring.  If you are thinking of building also consider the time frame of when you need a completed home as well as the effects of the climate.  In areas with snow and freezing temperatures you will need to get the foundation for your home in before bad weather hits or wait until the ground thaws in the spring.  Depending on the architecture of the house, size of the house and type of construction will all impact the time frame needed for construction.  You should plan on 4-6 months in case there are delays in material delivery, unexpected problems along the way and timing due to climate.

It has never been easier than it is today to find architectural styles and floor plans for the home you want.  Look at lots of plans.  You can go on line and search by style types, square footage, number of bedrooms and baths, whether you want the master on the main level or upstairs.  Most on line sites also allow you to flip a plan or to find similar plans to the ones you like.  Once you have a plan you need to talk to your builder about the plan.  It is important it meet climate requirements of the area and in general needs to be stamped or redrawn by an architect licensed in your state.

Verify that the builder has a good reputation, will deliver your new home on schedule and meet the quality standards you are looking for. Good builders will be happy to provide references from other clients.  Talk to other owners to find out their experiences. The builders frequently will be happy to show you completed homes they have built so you can get a sense of the quality of the construction and finish work. 

There are many decisions that you will need to make during the construction process.  Your builder can advise you on the timing of the decisions on everything from flooring, counters, cabinets, plumbing fixtures, lighting etc.  Your builder should have a good relationship with a building supply store that can assist you with design decisions and products that both meet your budget and fit with the architectural plan and style of your home.  Make sure that your builder understands your availability and can work with you in the timing of decisions that you will need to make.

Moving into a new home is exciting!  Moving into a new home that you have created is both exciting and rewarding to see your plans materialize into your new home.  Remember to leave room in your budget for the landscaping, new furnishings, window treatments and other finishing touches that will be needed. .

Finally look at your home as an investment that you will be selling sometime in the future. Talk to your agent about resale values and were the market is headed. Consider the price range and value of homes in the neighborhood you are planning to build your new home.  Remember that certain upgrades and options that are important to you like home theaters and high tech features do become out dated and you will most likely not receive one hundred percent return on your investment.  If you are selling another home in order to purchase your new home, be careful about the timing to ensure that you are not left supporting two mortgages if your home does not sell or left homeless because your new home is not ready.  You may have to accept a little inconvenience like moving short term into a rental to make your ultimate goal of your dream home a reality.

Tips for Selling Your Home in a Buyer's Market

The economic news is not good.  The inventory of homes is rising and people are worried about keeping their jobs.  Despite this, homes are selling and the market has not stopped.  In the Ithaca area we are lucky to have solid local lenders and employers.  What it does mean is that sellers need to work with experienced agents who have been through tough markets before and know what to advices, what to do and how to do it!

If you want your property to sell then you need to fully accept what needs to be done to make your home a great value and position it well in the existing inventory of homes on the market.

 1.   Pricing is always important.  Now it is even more so.  Houses that are going to sell need to be priced BELOW "market Value"  The problem with setting market value is that we are looking at past sale history.  Things have changed and prices will continue to adjust.  In some price ranges it is difficult to even find any sold comparables... just lots of houses "for sale".  If your home is priced 10 percent above market value fewer than 25% of buyers will consider it. If your home is priced 10 percent below market value 75% of buyers will consider your home.  In this market you can't afford to price yourself out of having buyers even consider your home.

 2.  Offer incentives. If there are specific problems like old worn carpet or rooms in need of fresh paint offer an allowance up front so buyers know they will be able to take care of the negative features that might keep them from buying.  If a potential buyer knows this upfront, they might be able to overlook the unattractive carpet or other problems that they notice immediately upon entering the house.  Or, offer to include appliances or other items not ordinarily included with the home.. This type of offer will be especially enticing to first-time buyers who are putting most - if not all - of their available cash into their down payment and closing costs.

 3.  Offer to pay some of the nonrecurring closing costs - the loan appraisal, loan points, credit report, title insurance, and property inspections. This can be a major motivation to cash-strapped buyers; these costs usually run about 3 to 5 percent of the cost of the house. Depending on your market and budget situations, you may offer to pay part or all of the costs.

 4. Get a professional home inspection before you put your house on the market. Nothing will end your sale quicker than a buyer's inspector finding a major problem during the inspection process. Even if you reach agreement with the buyer on who will pay for the repair work - or if you agree to pay all the repairs - the fact that the buyer has to wait for the repairs, the delay and inconvenience  could diminish their enthusiasm, and even cause them to break the deal, especially if there are plenty of other comparable houses on the market.

 5. Be flexible. When you receive an offer and the buyer wants to move in sooner than you'll be ready, make plans to stay in other accommodations until your new place is ready. A month or two of inconvenience is worth it.  Many buyers are looking for more than price.  Convenience is important to them!

 6.  Create good curb appeal. A home buyer's first impression is extremely important.. The moment they pull up to the curb, they'll make an instant judgment. Be sure it is a positive one.  The front landscaping, condition of the exterior of the home and the front entrance are very important  It is a good idea to touch up pain or replace the front door for a positive entry experience.

 7. Make sure your home is clean and decluttered.  Focus on entry areas, bathrooms and kitchens.  If your countertops are covered with stuff or you have lots of knickknacks start packing and storing them.

 8. Keep your home light, neutral and depersonalized.  The point is to make sure the buyers feel that they can relate to the house and not feel that it is someone else's home.  If you have lots of family photos everywhere it is usually a good idea to put some of them away.

 9.  Make sure your home is light, bright and odor-free.  Be sure there are no lingering pet, food or smoke odors. Set out some fresh flowers. Turn on some light music. Let the light in. Open blinds and curtains so plenty of light illuminates the home's interior.   You should make sure there are lights on or buy higher wattage bulbs to make sure it is bright and inviting.

10.  Keep on top of what is happening in the market.  If new listings are coming on or other sellers are reducing prices you need to know this and take the appropriate action. You'll want to talk to your agent about the current inventory of homes on the market and how long homes are staying on the market in your neighborhood. The time to reduce your price is when there are still buyers in the market.  If you are constantly above the "correct price"  for your home the potential buyers who should be seeing it won't be.

Most of all relax.  Your home will sell and for the best possible terms if you take an intelligent approach to the process!