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Ten Tips For Selling Your Home.

February 15, 2013 By Leave a Comment

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Selling your home? Follow these tips.

As we move into the spring selling season here in San Antonio, it’s time to start thinking about how your home appears to potential buyers. Making your home stand out with some of these simple tips for selling your home will help attract more buyers and keep them from crossing your home off their list of potential houses. Remember, first impressions are the most important – so make sure your home impresses from the moment the buyers get out of their car and head inside.

Want to sell your home faster?

  1. Clean it up – While this may seem overly obvious, you’d be shocked at the number of homes I have seen with my own eyes that didn’t follow this, the “Cardinal Rule” of home selling. Things to look out for? Kids clothes, shoes, tracked in dirt, dusty vents, and toilet seats in the open position (no one wants to look at your toilet bowl, no matter how clean it may be).

  2. Update it – While most home sellers aren’t looking to spend a fortune to ready their home, there are a few quick fixes you can do. Touch up/re-paint worn surfaces, replace old faucets, add a few inexpensive curtains to replace metal blinds, change lighting fixtures (old brass and gold make your home look dated in today’s market), and re-stain or re-paint the front door and add new hardware. None of these will cost a fortune, but they can change the age of your home in an instant.

  3. Curb appeal – You’ve heard this phrase a lot since HGTV came along. Overgrown trees, bushes, and grass are the first things that should be fixed. Plant some flowers, rake those leaves, clean those gutters! Buyers are known to pull up in front of a house with their agent and say “no thank you” without ever stepping foot inside. Don’t let your house become the scene of a drive-by.

  4. Organize and remove – You’re moving anyway, right? Why not remove some of the junk from your closets, pack away the winter clothes, give the old toys to Goodwill (it’s tax deductible) – cleaning out the extras make your home appear neat and clean. Buyers tend to think if your home is organized you’re more likely to have taken good care of the home while you lived there.

  5. Lighting – In addition to changing out some of the old fixtures, be sure that all the lights have working bulbs in them. Clean the shades and glass covers and make the light shine through. Raise the blinds, throw open the curtains and let the sun shine in. A little sunshine spells a lot of happy faces. Turn on all the lights before a showing – don’t leave the buyer in a dark corner of the house.

  6. Smell – One of the stronger senses in the human body, smell can sell. You don’t have to make it smell like fresh baked apple pie, just don’t make it stink. Avoid cooking foods with strong odors, open windows as often as possible for fresh air, use candles or air fresheners to scent the home, and please, please please…clean the cat box!

  7. Price – In any market (especially the current one), price is king. Price will determine whether a home is seen or not seen. The laws of supply and demand determine how buyer’s will react to your price. If you’re overpriced, forget it. If you’re priced right your home will get noticed. Talk to your REALTOR® and review a CMA (comparative market analysis) with them.

  8. Showing availability – If you put a million conditions on how and when your home can be shown, you’re risking losing potential buyers. You want (and need) your home to be seen for it to be sold. Having stringent rules about viewing times, advance notice, or denial of appointments can all lead to buyer’s looking at another house in the neighborhood. Have your agent use a lockbox and a showing service (we use Centralized Showing Service here in San Antonio) and let other agents show your home whenever possible.

  9. Marketing – Today, many buyers are using the internet to find a home before ever contacting an agent. We shop for homes in our pajamas, then hit the streets to look at them. Most agents have some form of internet marketing, but look for one who makes a bigger effort than most. Although agents will tell you can email your listing to 10,000 people, most of it winds up in spam folders. A blind email to a random stranger probably won’t sell your house. Getting in front of home buyers through the big real estate sites along with blogs, social media, and visual media sites will help buyers find your home. Making sure your agent uses all available photos (25 in San Antonio’s MLS) and media will help buyers take a look at your home.

  10. Extras – Offering any incentives or extra inclusions can help sell your home. Don’t want to move the stainless steel refrigerator? Tell the buyer’s they can have it. Don’t need a riding mower where you’re heading? Make sure the agent includes it in the listing. Residential service contracts (also known as home warranties) are also a great part of any listing. Most buyers ask for one in their offer, so why not attract them with an offer of one yourself?

photo courtesy of striatic

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Home Loan Dos and Don’ts

January 16, 2013 By 1 Comment

Home Loan

As I was writing yesterday’s article, “Your Credit and Buying a Home,” I was speaking with Michael Kingsbury of Academy Mortgage about some of the ins and outs of credit during the home loan process. Michael provided me with a list of “dos and don’ts” that Academy Mortgage provides their clients when they apply for a home loan and I thought it would be a good list to share. These tips are for after you’ve started the loan process and will help you avoid any hiccups during the time it takes you to close on your new home.

Home Loan DOs

DO continue making your mortgage or rent payments on time.

DO stay current on all of your existing accounts.

DO keep working at your current employer.

DO keep your same insurance company.

DO continue living at your current residence.

DO continue to use your credit as normal.

DO call your lender if you have any questions.

Home Loan DON’Ts

DO NOT make any employment or income changes.

DO NOT make any major purchases (car, boat, jewelry, etc.).

DO NOT apply for new credit (even if you are pre-approved).

DO NOT open any new credit cards (store cards included).

DO NOT transfer any balances from one account to another.

DO NOT pay charged off balances without discussing with your lender.

DO NOT pay collections accounts without discussing with your lender.

DO NOT buy any furniture.

DO NOT close any credit accounts.

DO NOT change bank accounts or switch banks.

DO NOT max out or go over your limit on any credit card accounts.

DO NOT consolidate your debt onto one or two credit cards.

DO NOT take out a new loan.

DO NOT start any home improvement projects.

DO NOT finance any elective medical procedures.

DO NOT open a new cell phone account.

DO NOT join a new fitness club.

DO NOT pay off any loans or credit cards without discussing with your lender.

If you have any doubt about a purchase or adjustment to your life that may affect your credit, talk to your lender before you take action. Even small changes in your credit score or debt to income ratios could have a drastic effects on your ability to acquire your new home loan. There are plenty of real estate horror stories that involve home buyers buying a new flat screen TV before closing on their home and finding themselves suddenly turned down for their loan. Lenders check credit several times during the home loan process…one of those checks occurs days before closing and finding out then that you are suddenly not qualified for the loan will scrap months worth of work and find you without a house. Don’t make that mistake!

image courtesy of Philip Taylor PT

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Holiday Decorating or Listing Disaster?

November 1, 2012 By Leave a Comment

Christmas Decorations

Looking for some blog post inspiration, I was combing through my usual sources this morning and a post on Facebook from my friend Ines Hegedus-Garcia at miamism.com caught my eye. Her article, “When are Holiday Decorations too much?,” reminded me that sometimes, less is more.

In our quest to be the coolest house on the block, we can easily get caught up in holiday fever and go nuts with the decorations. While no one loves an overly-decorated house quite like I do, it’s true – if your house is for sale, you need to think about the home as a commodity and not your personal design space. Simple and neutral are words that speak to home buyers and as is the case with any over-decoration in your home, buyers will be distracted, no matter how hard they try not to be or how much their agent tries to focus their attention to the general home versus the assorted items around the home. If your home is on the market this holiday season, keep it simple and keep it clean!

PS If you’re ever thinking about moving to Miami, I’d highly recommend following the www.miamism.com as a great place to start. Tell Ines we sent you!

image courtesy of lalawren

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The Lost Art of the RSVP

October 17, 2012 By Leave a Comment

RSVP

As we enter the fall, holiday season is upon us for sure. Starting with the upcoming spook-fest of Halloween, you can bet you’ll be bombarded with invitations to all kinds of parties and events between now and the start of the new year. Along with most printed (or emailed) invitations come one of the most famous four letter combinations in the world: RSVP.

But what does RSVP mean anyway?

Technically, it’s an abbreviation for the French phrase “répondez, s’il vous plait,” (roughly translated, respond if you please).

And if you want to get really technical, it was intended to solicit both a response of acceptance (Yes, I will attend and have ___ guests) and of regrets (No, sadly I cannot make your event).

Over time, with the pace of the world increasing and formality of functions decreasing, many people have resorted to only responding to invitations in the event that they can attend. The exception, of course, being incredibly formal events such as a wedding or high dollar fundraising dinner. But to be lead car on the etiquette train, you really should take the time and energy to let the host or hostess know your plans as soon as you do.

  1. It helps the host plan seating, food, drinks, and budget.
  2. It shows respect and manners.
  3. It gives you the opportunity to explain any unusual circumstances or more thoroughly express your regrets.
  4. It lets you touch base with the host to lend support or connect directly to the host.
  5. Gives you the opportunity to ask questions or clarify details.
  6. If you make it a habit as a guest, maybe others will catch on and return the favor when it is your turn to host an event.
  7. You save the hassle of being harassed last minute by the host for a response.
  8. Gives you time to mark your calendar so you don’t miss the event.

image courtesy of dreamsjung

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10 Things to Know About Closings

September 26, 2012 By Leave a Comment

Closing Time

After all that time waiting, you get the call…it’s closing time! Closing is the time to sign all of those final documents and move all the money around to the appropriate parties. Closing seems as if it’s a million miles away from the day you made/accepted the offer on your house, but once it arrives, the excitement once again builds. Here’s a few things about closing that we wanted to share with you that you may or may not know.

  • The date in the contract is an “on or before” date. This means that if all parties agree to close a day early, they can. A week early? Still a yes. A whole month? Absolutely!
  • Closings most commonly occur at a title company.
  • Buyer and seller do not close at the same time. There is no requirement that one party close before another.
  • Photo ID is required. Signatures will be notarized and the closing office will want to make sure you are who you say you are.
  • Power of Attorney can be used, but generally original POA document is required. A call will be made to the person granting the POA just to make sure they are 1) alive and 2) not revoking the POA.
  • Monies for closing are required to be in certified funds – cashier’s checks or wires. Don’t bring a suitcase full of cash (although it might be impressive) or a personal checkbook.
  • Don’t expect the keys right away. Unless otherwise specified in a temporary lease agreement, possession transfers at closing and funding. This means that the closing office has to make sure that all funds for the deal have been received. If the buyer is securing a mortgage, it could take a few hours…and sometimes a few days.
  • Taxes will be pro-rated based on the previous year’s assessed value. This can change each year, most noticeably with new construction (where previous year’s tax value is based on land alone, not land and a house).
  • Average closing time for a seller is thirty minutes or less. There’s a lot less paperwork involved in selling than in buying.
  • Average closing time for a buyer is about an hour. The biggest factors in this much lengthier process are the complexity of the transaction, the experience of buyer, what documents the lender requires (some require more than others), and knowing what to expect, what to bring, and what information the buyers will be signing.

image courtesy of gill.holgate

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Seeing with Buyer’s Eyes to Sell Your Home

September 25, 2012 By Leave a Comment

Seeing Through a Buyer's Eyes

Home sweet home. Your palace. Your castle. This is your home and you love it, but now it’s time to sell it. Once the decision is made, your home becomes public domain – agents, buyers, appraisers, inspectors, and handymen descend on your home and make it ready to be owned by someone else. For some, this is a simple business transaction, but for most families, this can be a terribly emotional experience. The key to it all? Think like a buyer and see your home through their eyes.

There are tons of staging tips out there and all of them offer sound advice on the basics; clean, declutter, and stage. But what can you do to really set yourself apart in what has (thankfully) become a competitive market? Walk outside your front door and out to the street. Pretend you just got out of your car and walk towards the home. Instead of thinking, “I love this house,” think like a potential buyer. See the issues they’re going to have before they ever show up at your front door. Make them love the house the way you do…but remember they’re going to be your harshest critic. It’s not the easiest thing to do, but viewing your house from the buyer’s perspective will help give you an edge over the other houses on the market.

Practical Tips from Home Buyers

Dirt and dust. You keep a clean house. You try your best to pick up everything, but let’s be honest here – we all have a certain amount of dirt and dust in our home. It’s nearly impossible to keep up with! When a buyer walks in and sees dirt and dust in your home, they don’t see it the same way you do. They see it and multiply it. If you didn’t bother to clean that crack in between the stove and the counter – what else might be laying down there (crumbs dropped down this space provide a perfect meal for rodents and a host of creepy crawlies)? Hard water stains in your toilets means you didn’t clean them often enough – so what dangers lurk in the drains? Dirty kitchen appliances – have they been serviced…do they function properly? The buyer has choices in the housing market and by giving them any room to let their thoughts wander to negative questions hurts you…even if the buyer’s thoughts are completely off base. Perception rules the day.

Heating and cooling. Almost every repair amendment I have seen in the past year has included a mention of cleaning the A/C unit and changing all filters. Inspectors are not licensed A/C repairman so if they see a speck of dust, they’re going to mention it in their report and just about every buyer’s agent will then ask for it to be cleaned and serviced by a licensed technician, as well as replacing the filters. Head this one off at the pass and have your filters changed and your unit serviced regularly. Other helpful tip? Clean the vents in every room. If there’s dust on them, buyers will think you haven’t been keeping up with maintenance and will probably go further and wonder how dirty the ductwork is.

Trees. This one is simple and I see it time and time again on inspection reports. Cut the branches of your trees – particularly those that are too close to the roofing or structure. Branches can cause a lot of damage to your home on windy days. They are also used by wood destroying insects like carpenter ants to enter your home. Trim them before anyone notices how close they are to the house and you’ll avoid another common buyer complaint.

Curb appeal. People typically think of curb appeal as trimming the bushes and planting some new flowers. While this is definitely appealing, when seeing your house through the buyer’s eyes, you need to think about the walk up to your house, particularly your front porch and door area. When an agent is showing your house, this is the one place where buyers are typically forced to stand and wait a few moments while the agent fiddles with the lockbox and gets the front door open. These days, most people enter their own homes through their garage, so the front door area is often neglected. Make sure your lock works smoothly (tricky locks can be a frustration to the agent, but are an immediate red flag to a buyer). Clean up the area (sweep, remove cobwebs and hornet nests). Look at your door – does it need a new coat of paint or refinishing? Even just adding a nice new door handle, house numbers, or doorbell can help prevent the buyer’s minds from wandering into the “if they didn’t take care of this, what else didn’t they take care of” territory.

The idea is to present your home in an ideal light. Don’t give the buyers a chance to think anything negative. Of course, if there are actual problems with the home, you must disclose them (so don’t perform “cover up” work). By being proactive and trying to see things the buyer will see, you can help prevent some of the issues you might run up against during contract negotiations. Every problem in a buyer’s mind means less money for you.

image courtesy of luisar

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Should I stay or should I go now?

September 20, 2012 By Leave a Comment

The Clash

So, you’ve decided to sell your house? Congratulations! After meeting with an agent to sign the paperwork, surely you’ve gone over the many things you can do to improve the way your home shows. From sweeping the front walk to making the bed or even putting cookies in the oven, there are hundreds of little tricks sellers use to put their home’s best side in the spotlight.

But what you may not have prepared for is the strange feeling of knowing that strangers are walking through and scrutinizing your home. Your home has, until now, been your private domain, a retreat, and a refuge all your own. But once that for sale sign goes up, you’re in a different world. And you may be tempted to try and hold on to the security of knowing all of the happenings in your home by hanging around during showings. But there are several important reasons to relax, take a step back, and let buyers (and their agent) come through uninterrupted.

Free speech

  • Buyers will not feel free to discuss their concerns with the homeowners around. This feedback is important for buyer’s agents to have so that they may help overcome many issues. Good agents can provide buyers with options that could change a buyer’s perspective on a property. Do you have an extra bedroom the buyers don’t want to furnish? Why not convert it into a private library or workout room? Buyers hate the cabinets in the kitchen? Here are some suggestions for quick fixes or low cost changes that could easily bring them back around to considering your home more seriously.
  • Buyers may not want to let you, the seller, know that they’re in love with the house. They want you to think this is a serious business deal and they could take it or leave it, because they think it will help them in negotiations. But the key here is to get them to negotiations to begin with. Let them be happy and excited, and you’ll get your offer soon enough.

Overtalking

  • Information Overload: Your home is your castle, and you want to make sure potential buyers don’t miss a single glorious detail. We get it. But in your enthusiasm, you may start to overwhelm the buyer. Or not pick up on clues from them. Or focus on things they could care less about so they get bored and anxious to move on. Don’t risk it.
  • Expectations: In your enthusiasm to show off your home, you may start to make promises to the buyer – “Sure that framed picture can stay” or “Oh, yeah, I’ll paint the garage for you.” But these promises may be based on the prospect of a full priced offer, and with a lower than anticipated offer in front of you the next day, you may not be so eager to make those kinds of concessions. And then you can end up with an ugly “he said/she said” scenario that leaves no one happy.

Judgement

  • Hot Topics: Like it or not, many home buyers cannot look past their own prejudices to focus on a home. Don’t give them anything more to judge or to question. Sometimes buyers and sellers meet, start talking and become the best of friends. But how often do you really think that happens? You’re a super swell person. But do you get along with everyone you meet? Do some people just rub you the wrong way from the get-go? Do you cringe when hearing someone go on about their favorite political candidate? Don’t let potential personality conflicts get in the way of the ultimate goal of home selling. Just don’t go there to begin with.
  • Looks can be deceiving: What if it just so happens that you look like a potential buyer’s ex girlfriend? Or a mean former teacher? There are so many possible relations. Do you want to be associated with a buyer’s past history? Sometimes it is unavoidable, but is it worth the risk?

    • What to do, what to do?

    Instead of hovering around your home when you are scheduled to have a potential showing, try the following tips to get your home ready for showing, then try some of the following: take a walk, return some purchases, carwash, take the kids to the park, treat yourself to a nice meal, work-out, see a movie, buy a “just because” card for a loved one, hand write some letters, remember how to do cartwheels in the grass, or volunteer. Whatever you choose, just avoid being in the home during showings (and always leave some room in the schedule for the buyers to take a bit of extra time – nothing worse than feeling rushed).

    image courtesy of mtarvainen

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Uncanny Home Staging Tips

March 8, 2012 By Leave a Comment

Birdies Green - Staged

You’ve heard the old spiel about decluttering and removing family photos. But now it’s time to think outside the box for some new tips for getting your home set to sell.

Remove furniture: Not all of it, but if you’ve got a couch, loveseat, two chairs, and a whole entertainment center wall full of electronics, buyers may focus on all of the “stuff” and not feel how big the room really can be. You don’t want the room to be too empty, but as you start to pull pieces out, you’ll start to notice the space and not the stuff.

Rearrange: Let’s face it living and/or family rooms were designed to entertain, and for a large number of us, that means television. I’ve seen windows, fireplaces, and even kitchen pass-throughs covered up for the sake of arranging a room around the TV. But don’t forget that a buyer may not have your giant entertainment center, or they may actually enjoy sitting in a chair watching a fire in the fireplace. It may be a bit different than what you’re used to, but moving a few pieces around can accentuate your home’s features and could lead to a quicker sale. Just keep telling yourself that it’s only for a short while.

Cover Up: Just can’t bring yourself to organize that stack of paperwork on your kitchen table? Put it in a drawer. Just stained your rug? Put a chair over it. Have a closet overflowing with treasures? Put them in boxes and consider moving those boxes to a shed or the garage. Out of sight is out of mind. And that trick works for buyers too. If they don’t see the mess, they can’t dwell on it.

Label: If you have a room that you use differently than “intended” – say you have a workout room in one of the bedrooms or you’ve converted a breakfast area to your command work center, label it. Let buyers know that each space has potential to fit their specific needs – they don’t need to be locked into your usage. We once listed a house that had a giant room attached to the master bedroom. It had it’s own private entry, but the only way to get to it from the house was through the master bedroom. This perplexed many buyers, so we made a list of all of the possibilities – nursery, dance studio, workout room, man cave, conference room, his and hers masters, etc. Some of the ideas may have been a little non-traditional, but it started to give buyers ideas, and get their imaginations going. Feedback on showings improved dramatically and the home sold quickly thereafter.

Bring Life: I won’t go all Feng-Shui on you here, but it really is remarkable what a few plants can bring to a room. Even if they are fake plants, when they are present, there’s a new energy to the room. People start to notice the natural light from windows. They feel “homier” in the space.

Think Neutral: Let’s take a moment first to air our complaints about this one. Beige is boring. You’’re an individual and you have great taste. You want to pay tribute to your alma matter in every way. It took nineteen long hours to hang all of that floral wallpaper. We get it. We’re not discrediting any of that. We love that you love who you are and where you came from. But this is not about you. The more you can appeal to a mass audience, the better off you will be when selling your home. It’s a numbers game. The odds of finding someone who is looking for a burnt orange bedroom are much smaller than the odds that you will find someone who either 1) likes beige, 2)is too uninspired to come up with their own ideas, or 3) sees beige as a challenge waiting to be overcome. Think about it.

Give, Don’t Just Take: Decluttering is an amazing thing (that’s why you hear it mentioned so often). But you may end up taking some charm when you take away some things. Maybe building a headboard (plywood plus fabric and batting plus a staplegun equals done) can actually make that never used guest bedroom feel less like a prison cell. Or putting up nice neutral curtains can actually highlight the windows. Less is more, but sometimes a little more is actually more too.

Cheat a Little: Stick cookies in the oven to bake (on low so they don’t burn), light candles, spray air fresheners, etc. Leave snacks or bottles of water for buyers. Or even offer roses or candies on the table alongside your home’s flyer or information sheet. The smells will make the buyer feel at home. And most will appreciate the nice gesture of a practical gift, even if they don’t take it (I mean, who hates having cookies available to them?). Good smells or memories in a home can actually have an impact on the buyer’s frame of mind. Good becomes a word they may start to associate with your house. And we like that.

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Remodeling your home? Cost vs. Value App for iPhone

February 22, 2012 By Leave a Comment

iPhone in Clover

As an iPhone user, I’m constantly downloading apps and trying out new tools. A few days ago, I downloaded Remodeling Magazine’s Cost vs. Value app after hearing someone mention it. A free app, Cost vs. Value allows you to compare the average cost for common remodeling projects based on your local area (San Antonio is an included city) and the resale value of the remodeling projects. By knowing the value of your upgrades and projects, you can make better decisions on what upgrades are truly worth it, particularly if you don’t intend to stay in the house for a long time.

So next time you’re thinking of doing a little work around the house, whip out the iPhone and load up the app and see what remodeling project will bring you the most bang for your buck.

image courtesy of MJ/TR (´･ω･)

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Lease Purchase Pitfalls

October 24, 2011 By 1 Comment

Pitfall Streeet

With overwhelming changes to the real estate and lending industries over the past few years, traditional means of home financing have been moved out of reach of many willing buyers. Buyers have begun to seek out creative means of financing, while sellers have looked for ways to make their home stand out, or to get it off the market. One such method that brings the two sides together is the lease purchase.

A lease purchase is a legal, binding contract between buyer and seller which establishes terms of a lease, and subsequent purchase of a particular property. All of the terms of both parts, lease and purchase, are binding. Essentially a buyer rents a property from the seller for a specific period of time and pays rent to the seller/landlord. At the beginning of the lease, both parties establish a sales price for the property, and at the end of the lease, the buyer/tenant is obligated to purchase the property by all of the terms outlined in the purchase contract.

While this scenario can be beneficial for both parties (a buyer may have time to correct credit issues or save up additional money for a larger downpayment; and a seller may take the property off the market in a saturated market while still collecting income), there are definitely many factors which could complicate the deal, much more than a traditional real estate purchase. Below are some of the stickiest areas. Knowing about them and negotiating a highly specific agreement to address these issues can help alleviate a lot of frustration, hassle, and stress in these types of contracts.

Lease Purchase Tips

Inspections/Repairs – In a standard real estate contract, inspections are generally conducted within the first few days after a contract is executed. Repairs are negotiated and the seller has until closing to correct specific deficiencies. Since the time between contract and closing is much longer in a lease purchase, this leaves a lot of time for things to break. Buyers should have inspections conducted in a lease purchase initially, and outline specific repairs for a seller based on the condition of the property at the time of contract. Once those repairs are agreed to, future repairs should be addressed. If the AC system breaks after 6 months, who should pay? Parties should evaluate the Texas Property Code for a more specific outline of landlord and tenant repair obligations. Other options would be for a specific criteria regarding repairs (example: any repair costing over $500 to be split evenly by buyer and seller, all else is tenant liability). Also address who chooses repair companies.

Foreclosure – If a seller has an existing mortgage at the time of the contract, the buyer may want to make arrangements to verify that the money he or she is paying each month in rent is actually going towards this existing mortgage. If the seller fails to make timely payments to their mortgage company, that lender does have the right to foreclose on the property, leaving the buyer high and dry.

Taxes – Whether or not a seller has property taxes escrowed through an existing mortgage, a buyer may ask for verification that these payments are being made. Again, this would help as evidence that no foreclosure or insurmountable liens filed on the property could delay or prevent closing.

Insurance – Sellers should maintain property insurance on a home throughout the term of the contract. They should consult with their insurance agent about specific coverage needed once the property becomes a rental. In addition to requesting evidence of the existence of this insurance, buyers may also want to secure their own renter’s insurance during the term of the lease.

Appraisal - In a lease purchase, a price is determined for the purchase months or years in advance. As we have seen, many circumstances, beyond the control of either party, can drastically impact the value of a property. Establishing a price at the get-go is essentially making a prediction of value far off in time. An influx of foreclosures could drive the property value down substantially and cause the buyer to be in a position of having promised to overpay. Or incoming businesses could actually increase the property’s value more than expected and the seller would be obligated to sell the house at much less than it is worth. Both parties run a risk by setting the price so early on. An appraisal will likely be done within 60 days of the actual date of sale. Parties should prepare to address a low (or high) appraisal value as the sale date approaches, or make accommodations in preparation of this from the start.

Financing - Just as it is hard to predict the real estate market over an extended period of time, it is also difficult to predict life and finances. What happens if a buyer loses his or her job midway through the lease? Or gets transferred? Or isn’t able to improve the credit scores enough to qualify for the financing as they originally intended? What recourse would the seller have?

Default - As these are all serious issues, the lease-purchase agreement should outline what means of recourse a buyer or seller would have, should the other party default on their obligations. If a buyer pays late on the rent, is there a financial penalty, or would the seller instantly need to go through an eviction process to reclaim the house? If the seller refuses to make necessary repairs, is the buyer still obligated to buy the property?

It’s the what-if’s and the multitude of obligations involved in this type of transaction that makes it so complex. While these transactions can be beneficial to both parties, they should not be entered into lightly. In fact, real estate agents are not even allowed to conduct these type of transactions without the involvement of a real estate attorney.

Readers are encouraged to consult with an attorney before entering into any real estate contract, particularly one involving a lease purchase. This article is designed to address only a few of the many complex issues  or points of contention that may arise from this type of real estate transaction. Suggestions made are not intended as legal advice.

image courtesy of Tim Green aka atoach

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How to be a good home buyer or seller.

October 20, 2011 By Leave a Comment

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Buying or selling real estate can be a complex process, and even the best deals can have their moments of frustration for all parties. The entire process itself is stressful, and that can often bring out the worst (and sometimes the best) in people.

We as agents spend a lot of time promoting ourselves and the level of customer service that we provide our clients. Anyone who is a true professional has a deeper understanding of what it means to provide solid information, advice, guidance and support to clients, and this should speak for itself as we assist you with your transaction.

But since agents and loan officers and title companies would not have jobs without customers, we often downplay the fact that we need help and support from our clients as well. When buying or selling a home, rarely do we stop to think what it means to be a good customer. Here are some great tips that may help you feel better about the large undertaking, and the professionals that you will be working with along the way:

Ask questions. If you don’t understand a part of the contract, or you need clarification about a term, or even to know what comes next in the process, ask. Not only will you have a better grasp of the situation, but you will feel better at the end of the day. Real estate contracts can be complex, so don’t just skim along and hope it works out. Be involved in the process and understand what is going on with your transaction.

Listen. REALTORS® are duty bound to protect your interests above all others. Remember why you hired your agent in the first place and consider their advice carefully. It may not always be what you want to hear, but sometimes it may still be good advice. Experience counts for a lot. Most people have only bought or sold a handful of properties in their lifetime. Agents handle a handful per month. They are in a unique position to know the trends, values, and common features in local markets. And they have established relationships with other industry professionals to build upon this knowledge base.

Don’t lie. This one may seem self explanatory, but sometimes we as customers are embarrassed or ashamed of some of our actions. We think that if we don’t bring it up, no one will find out. But even the smallest omissions can turn out to be huge problems down the road. It’s better to be upfront about any issues so that your agent can help come up with solutions before they fester into huge deal-breaking disasters.

Be clear about your expectations and wishes. Take time to think about what your wants and needs are in a transaction. If you are buying, take a few moments to figure out what features are most important to you, and which you have a bit of flexibility on. If you are selling, consider things such as repairs, timeline, and price. Convey these to your agent. Time is a valuable commodity, and no one wants to waste their time or yours. Spending six weeks looking at two story houses only to discover that your mother-in-law will be living with you (and she requires a downstairs bedroom thanks to her recent hip replacement) is going to lengthen the time it takes you to find that home because of the poorly focused plan you started with.

Be fair. Real estate does not have to be a win-lose game. Yes, sellers always want more money for their properties, and buyers are looking for a better deal. But at the end of the day, everyone in the transaction is working towards the same goal of a closing. There is give and take on all sides.

Seek advice of experts. Seek out business relationships with people who have the experience to back up what they say. If your cousin’s sister’s brother kind-of knows something about electrical systems, he may not be the ideal person to conduct an overhaul of your home’s wiring before putting it on the market.

Don’t trump the expert. Spend time researching the people you work with so that you feel comfortable with him or her. Don’t’ be afraid to ask for references from past clients, or to verify sales figures. But once you’ve spent time doing this, trust that the professional you have selected is going to do their job. Calling every four hours about a new real estate article you saw online, demanding triplicate copies of every ad, e-mail, prospect, flyer, MLS sheet, or other document related to your house, or questioning why buying a home in San Antonio in 2011 is so different than “the way things were done” on a home purchase in 1975 in Pennsylvania may not be ways to show this confidence.

Communicate your frustrations. If the person you are working with is not performing as expected, let them know. There’s a calm, polite way to do this, and most of the time, people will respond positively to the feedback. Letting the problem persist only stresses your further and may end up doing severe damage in the end.

Follow through. Just as you are looking to work with people who do what they promise, make sure you are holding up your end of the deal. Your agent or your loan officer cannot do their job without you. So turn in those loan documents, get back to your agent with answers to important questions, and complete the required repairs when you say you will.

image courtesy of Sklathill

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Moving Guide

Kid in Moving Truck

Ready…Set…Move!

Moving Day has arrived, are you prepared? If you’re like most people, you’re probably running around finishing up last minute items and still figuring out whether or not you packed your wallet into a box, because you can’t find it anywhere. A little preparation goes a long way when it comes to moving. A few simple checklists can make the difference between a calm day and you pulling your hair out in frustration. Let Kimberly Howell Properties help make your move easier and more efficient with some simple tips and an easy to follow timeline.

Two months before you move…

  • Call movers and get estimates. Some months are busier than others, so it’s a good idea to start early.
  • Once you’ve selected a mover, discuss costs, packing, time, and insurance.
  • Make a list of your belongings. Sell or give away any items you no longer want or need.

One month before you move…

  • Notify your doctor, dentist, and veterinarian of your move so that records can be transferred. Ask for referrals.
  • Find out which school your children will be attending, and check with your current school administrators about transferring records.
  • Close any charge accounts, such as department store accounts which you will no longer be using.
  • Check into the banks in the area. Many can open new accounts by phone or online and have your checks waiting for you when you arrive.
  • Send change of address cards to your post office, magazines, and friends.
  • Cancel local deliveries such as newspapers, laundry, and milk.
  • Contact utility companies for disconnection.

Two weeks before you move…

  • Empty your safe deposit box at the bank.
  • Pack valuable papers and items which you will be moving yourself. You may want to include family photos, scrapbooks and other items of sentimental value.
  • Clean out your refrigerator and cabinets. Plan meals using food you don’t want to take with you when you move.
  • Have your vehicles serviced for the trip.
  • Hire a babysitter for the day the movers are in your home.
  • Plan a furniture layout for the movers, indicating where your things belong in your new home.
  • If you are traveling for more than a day, or you will be waiting for the movers to arrive, make hotel reservations.
  • Pack anything the movers aren’t packing.
  • Plan for a thorough cleaning of your house, carpets and draperies.
  • If your house hasn’t been sold, make arrangements with your real estate agent for maintenance and security.

Final days before the move…

  • Pack a “survival kit” in case you have to wait for the movers at your new home. Include paper towels and plastic eating utensils, toilet paper, soap, towels, bedding, snacks, phone chargers, eyeglasses, contact lenses, and medicines.
  • Pack clothes for the trip.
  • Label any boxes you’ll need to get into right away.
  • Get a cashier’s check for the movers and traveler’s checks for the trip.
  • Defrost your refrigerator and freezer.
  • Give the movers your new telephone number or a number where they can reach you.

Download Icon Want to learn more about relocating to San Antonio? Download our FREE San Antonio Relocation Guide.

 

image courtesy of CJ Sorg

San Antonio real estate and property information provided by Kimberly Howell Properties. Kimberly Howell Properties does not assume any liability or responsibility for the operation or content of any of the linked resources, nor for any of the interpretations, comments, graphics, or opinions contained therein. All information deemed reliable, but not guaranteed. KJH Properties, Inc. is a licensed real estate brokerage in the State of Texas, Equal Opportunity Employer, and supporter of the Fair Housing Act.